HomeMy WebLinkAboutStaff Report 8186
City of Palo Alto (ID # 8186)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/27/2017
City of Palo Alto Page 1
Summary Title: FY 2018 Budget Adoption
Title: PUBLIC HEARING: Adoption of Budget Ordinance for Fiscal Year 2018,
Including Adoption of Operating and Capital Budgets and Municipal Fee
Schedule; Adoption of the Following Resolutions: 1) Approving the FY 2018
Electric Financial Plan, 2) Adopting an Electric Rate Increase and Amending
Electric Rate Schedules E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7
TOU, and E-14, 3) Approving the FY 2018 Gas Utility Financial Plan, 4)
Approving the FY 2018 Wastewater Collection Utility Financial Plan, 5)
Adopting a Dark Fiber Rate Increase and Amending Dark Fiber Rate
Schedules EDF-1 and EDF-2, 6) Approving the FY 2018 Water Utility Financial
Plan, and 7) Amending Resolution 9671 to Modify Permit Fees for the
Downtown Residential Preferential Parking (RPP) Program and Finding the
Action Exempt From the California Environmental Quality Act; and Amending
Salary Schedules for the Management and Professional Group, the Services
Employees International Union, and the Limited Hourly Group
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff and the Finance Committee Recommend that the City Council approve and adopt the following:
1. Budget Amendment Ordinance (Attachment A), which includes:
a. City Manager’s Fiscal Year 2018 Proposed Operating and Capital budgets, previously distributed
at the April 25th City Council meeting (Attachment A, Exhibit 1);
b. Amendments to the City Manager’s Fiscal Year 2018 Proposed Operating and Capital Budget
(Attachment A, Exhibit 2);
c. Fiscal Year 2018 City Table of Organization (Attachment A, Exhibit 2);
d. Fiscal Year 2018 Proposed Municipal Fee Changes (Attachment A, Exhibit 3).
2. A Resolution of the City Council of the City of Palo Alto approving the Fiscal Year 2018 Electric
Financial Plan and proposing several transfers for FY 2018 (Attachments B & C);
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3. A Resolution of the City Council of the City of Palo Alto amending Rate Schedules E-1 (Residential
Electric Service), E-2 (Small Non-Residential Electric Service), E-2-G (Small Non-Residential Green
Power Electric Service), E-4 (Medium Non-Residential Electric Service), E-4-G (Medium Non-
Residential Green Power Electric Service), E-4 TOU (Medium Non-Residential Time of Use Electric
Service), E-7 (Large Non-Residential Electric Service), E-7-G (Large Non-Residential Green Power
Electric Service), E-7 TOU (Large Non-Residential Time of Use Electric Service), and E-14 (Street
Lights) (Attachments D & E);
4. A Resolution of the City Council of the City of Palo Alto approving the Fiscal Year 2018 Gas Utility
Financial Plan (Attachments F & G);
5. A Resolution of the City Council of the City of Palo Alto approving the Fiscal Year 2018 Wastewater
Collection Utility Financial Plan (Attachments H & I);
6. A Resolution of the City Council of the City of Palo Alto increasing the Dark Fiber Rates by 3.5%
effective July 1, 2017 by Amending the EDF-1 and EDF-2 Rate Schedules (Attachments J & K);
7. A Resolution of the City Council of the City of Palo Alto approving the Fiscal Year 2018 Water Utility
Financial Plan and a transfer of $1.877 million from the Water Rate Stabilization Reserve to the
Water Operations Reserve (Attachments L & M); and
8. A Resolution Amending Resolution 9671 to Modify Permit Fees for the Downtown Residential
Preferential Parking (RPP) Program and finding the Action Exempt from the California Environmental
Quality Act (Attachment N).
9. Approve Amending Salary Schedules for:
a. Management and Professional Group (MGMT) (Attachment O, Exhibit 1) as amended by
CMR #7840 to add one new classification and change titles of three classifications.
b. Service Employees International Union (SEIU) 2015-2018 MOA (Attachment O, Exhibit 2) as
amended by CMR #7656 to reclassify four classifications and change the salary rates of two
classifications.
c. Limited Hourly Group (Attachment O, Exhibit 3) as amended by CMR #7656 to update the
salary rates of one classification.
EXECUTIVE SUMMARY
As a result of actions recommended in this memorandum both by staff and the Finance Committee, the
total Fiscal Year 2018 Proposed Budget (restated) of $651.8million will increase by $20.4 million which
reflects a 3.1% increase for a total Fiscal Year 2018 Adopted Budget of $672.2 million. This Adopted
Budget leaves the City in a fiscally healthy situation with the General Fund Budget Stabilization Reserve
(BSR) at the Council recommended level of 18.5% of the General Fund Adopted Budget total expenses;
however, there are some challenges that will need to be addressed in Fiscal Year 2018 and beyond. Staff
will continue to proactively undertake these challenges and with the Finance Committee and the Council
in FY 2018 and as part of the FY 2019 budget process.
During May 2017, the Finance Committee reviewed the Fiscal Year 2018 City Manager Proposed
Operating and Capital Budgets as well as various fee and rate changes recommended by staff. During
these discussions changes have been recommended to the City Manager’s Proposed Budgets by both
the Finance Committee and staff. This report outlines this process and the results from it. Overall, the
Finance Committee approved the proposed budgets as amended on a 3-1 vote (nay: Tanaka). This
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report summarizes the hearings that occurred in May including all approved changes and recommends
limited additional changes staff has identified since the last Finance Committee meeting on May 18,
2017. This report includes the following sections:
Fiscal Year 2018 Finance Committee Budget Balancing & Final Recommended Changes: A
summary of the budget balancing process including major changes approved by the Finance
Committee and additional recommended adjustments from staff. This is organized by fund type
beginning with citywide, General Fund, General Capital Fund, Enterprise Funds, Internal Services
Fund, Special Revenue Funds, and Capital Reappropriations.
Table of Organization: a summary of additional changes to the Table of Organization as it was
presented in the FY 2017 Proposed Budget released April 25, 2017.
Municipal Fee Schedule: A summary of the changes recommended in the attached City Manager
Report #8020 FY 2018 Proposed Municipal Fee Schedule as well as revisions made subsequently
as part of the Finance Committee hearing on May 18, 2017.
Fiscal Year 2018 Rate Changes (various utilities such as electric): A brief overview of the rate
changes recommended as part of this report as reviewed by the Utilities Advisory Commission
and Finance Committee. Each of these rate changes are included in the FY 2018 budget
assumptions. This report outlines the actions requested, transmits the resolutions from these
reviews, and requests City Council approval and adoption. In limited instances, rates have
already been approved or scheduled for approval prior to June 27, 2017 – water, refuse, and
storm drain. This section also references those changes for informational purposes only.
Compensation Plans: A description of all compensation plans and the amendments contained
within in order to align with the recommended adjustments in the FY 2018 Budget as well as
limited clean-up actions.
Referral Items for Full Council at the Request of the Finance Committee: This report details a list
of areas that the Finance Committee wished to refer to the full Council for potential referral to
staff. These are areas identified for potentially deeper analysis or alternative funding strategies
to be explored over the course of the next fiscal year.
Attachments: Attached to this report are a number of documents as outlined and referenced
throughout the recommendation language and the report. In addition, links to all the materials
presented throughout the budget process to both the City Council and/or the Finance
Committee such as At Places Memorandums, presentations made during the budget hearings,
and transcripts from Finance Committee Hearings are included.
Not included in this CMR is the approval of the GANN Limit. This has been transmitted separately for
City Council consideration.
FISCAL YEAR 2018 FINANCE COMMITTEE BUDGET BALANCING PROCESS & FINAL RECOMMENDED
CHANGES
During the Finance Committee meetings, the Finance Committee approved staff recommended changes
and recommended and approved their own changes. Based on the Finance Committee Budget Hearing
deliberations and requested changes during the month of May 2017 as well as changes at the behest of
staff, this section aggregates and outlines all the final changes recommended by staff to be made to the
FY 2018 Proposed Operating and Capital Budgets distributed to the City Council on April 25, 2017. All
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adjustments are outlined in Attachment A Exhibit 2, however below is a summary of the changes across
all funds and the General Fund accounting for the various approved motions and staff
recommendations. This chart provides a high level summary of the status of the City’s FY 2018 citywide
revenues and expenses. Following the chart are highlights by fund category: General Fund, General
Capital Improvement Fund, Enterprise Funds, Special Revenue Funds, Internal Service Funds, and the
Capital Improvement Budget.
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FY 2018 REVISED Proposed Budget
General Fund/Citywide (All Funds)
($’s in thousands)
Revenues Expenses Revenues Expenses
Citywide Proposed Budget, released April 25, 2017 $206,842 $210,031 $591,651 $661,774
Revised Citywide Proposed Budget (Restated for Correction)*$206,842 $210,031 $581,582 $651,801
Finance Committee Approved Amendments
Finance Committee Initiated
Transportation Management Association (TMA) (annual funding of
$480,000)$0 $0 $0 $345
Tree Trimming Cycle (7 year cycle)$0 $338 $0 $338
Employee Parking Permit Rate Increases $0 $98 $762 $123
Youth Community Services Funding (three year matching grant)$0 $50 $0 $50
Citizen's Suvery on Code Enforcement (City Auditor's Office)$0 $20 $0 $20
California Avenue General Fund Loan $0 ($75)($75)($75)
FY 2018 Vehicle Replacement Deferral $0 ($50)($50)($100)
Staff Initiated
Storm Drainage Fund Ballot Measure Implementation (+1.0 FTE)$0 $14 $315 $996
Junior Museum and Zoo Capital Project $0 $0 $0 $706
Below Market Rate Program Oversight Contract $0 $0 $0 $137
Airport Tiedown Lease and Property Rental Revenue Correction $0 $0 $500 $0
Reallocation of Parking Evaluation Study Funding (From CMO to Non-
Departmental, $150,000)$0 $0 $0 $0
Utilities Capital Improvement Program Correction $0 $0 $0 ($12,240)
Various Capital Reappropriations $0 $0 $7,000 $14,762
Buena Vista Mobile Home Park $0 $0 $0 $14,875
Property Tax Increase $200 $0 $200 $0
SUBTOTAL CHANGES FROM FY 2018 PROPOSED BUDGET $200 $395 $8,652 $19,937
Adjustments, including Transfers, Internal Service Funds, and Capital $0 $0 $2 $499
Citywide Proposed Revenue and Expenses
(as of June 27th Adoption Hearing)$207,042 $210,426 $590,236 $672,237
General Fund All Funds
Additional Staff Recommended Amendments (subsequent to Finance Committee Review)
* Subsequent to the release of the FY 2018 City Manager’s Proposed budget on April 25, 2017, staff found an error in the
Citywide revenues and expenses summary tables as reported in the proposed budget document. It was identified that within
these summary tables, a non-budgeted fund was included resulting in an overstatement of both revenues and expenses.
Revenues were overstated by $10.07 million, and expenses were overstated by $9.97 million. This chart restates the FY 2018
Proposed citywide revenues and expenses as they would have been had this non-budgeted fund been excluded in the “Revised
Citywide Proposed Budget (restated for Correction)” row.
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General Fund
Throughout the Finance Committee meetings, various minor amendments were proposed by both the
Finance Committee and staff in the General Fund. All departmental budgets as amended by the
Committee were approved by majority vote with the exclusion of the City Manager’s Office budget. The
City Manager’s Budget resulted in a 2:2 vote (nay: CM Tanaka, CM Holman) after thorough discussion
over staffing levels and staff assignments, primarily surrounding the topic of economic development. In
the fall of 2016, subsequent to the Adoption of the FY 2017 Operating Budget, a staffing reorganization
was approved by the City Council; however, it was this reorganization and the duties assigned to the
impacted staffing as a result of this reorganization that resulted in the split vote for the FY 2018 Budget.
Overall the City Manager’s Budget reflects a 9.6 percentage increase year over year due to this staffing
restructuring. Should the figures be normalized for this staffing realignment, year over year growth of
approximately 3 percent would be reflected.
Summary of Recommended Changes to the FY 2018 City Manager Proposed Budget
Throughout the FY 2018 Budget hearings, the Finance Committee members recommended amendments
to the FY 2018 City Manager Proposed Budget. Staff has worked to incorporate those directions into the
amended budget, and recommended a few additional actions as a result of changes approved by the
Finance Committee including:
a $338,000 increase for the Tree Trimming Contract associated with decreasing the cycle time
from 10 years to 7 years (ongoing);
a $98,000 increase for the cost of employee parking permits for City employees working in City
Hall consistent with the increase in downtown parking permits (see the Municipal Fee Section
for fee changes) (ongoing);
a $50,000 increase for the Youth Community Services (YCS) matching grant funding (three years,
$50,000 annually);
a $20,000 increase for a Citizen’s Survey on Code Enforcement to be completed by the City
Auditor’s Office (one-time);
a $75,000 reduction for the loan to the California Avenue Parking Fund as a result of higher
parking permit prices and therefore additional revenue to support planned expenses (see the
Municipal Fee Section for fee changes); and
a $50,000 reduction for the deferral of the replacement of a forklift in the Administrative
Services Department. Corresponding decreases in the Vehicle Maintenance and Replacement
Fund revenue and expenditures are discussed elsewhere.
In order to offset some of these recommended adjustments, staff has identified an increase in the
estimate for Property Tax revenues based on the June 2017 estimated property tax roll growth for FY
2018. This increase reflects updated information from the Santa Clara County Assessor's Office, which
now estimates an increase of 6.9 percent from FY 2017, an increase of 0.4% more than the original
estimate, which was a year over year increase of 6.5 percent. These figures exclude the estimated
surpluses of $2 million to $5 million projected for FY2017 since the year-end has not ended and the
financials need to be audited.
Once adjusting for all the recommended changes, the revised draw on the BSR is $3.37 million. This is a
$195,000 increase from the levels proposed in the FY 2018 City Manager Proposed Operating Budget of
$3.2 million. The estimated FY 2018 BSR would be at $38.9 million or 18.5 percent of the FY 2018
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General Fund Recommended Expenditure budget. This level is at the target level of 18.5 percent as
approved by the City Council.
Should the City Council wish to increase the proposed level of the Budget Stabilization Reserve or find a
need for additional financial capacity in the General Fund, one option could be to reallocate the
maintenance costs associated with Cubberley facilities to the Cubberley Property Infrastructure Fund.
The Cubberley Property Infrastructure Fund is intended for the maintenance and renovation of the
Cubberley property. In the 2014 lease agreement between the City of Palo Alto and the Palo Alto Unified
School District (PAUSD), the parties agreed to dedicate approximately $1.86 million annually for
repairing, renovating and/or improving the Cubberley site, which is jointly owned by the City and
PAUSD. On an annual basis, the City dedicates approximately $348,000, or 1.5 positions and operation
and facility expenses for Cubberley from the General Fund budget in the Public Work’s Department.
Reallocating these expenses to the Cubberley Property Infrastructure Fund would dedicate
approximately 18 percent of the annual contribution of $1.86 million.
General Capital Improvement Fund
At the May 18, 3017 Finance Committee Budget meeting, the Finance Committee recommended
approval of the General Capital Improvement Fund including the staff recommended amendments. The
Committee also requested information from staff in regards to the implications of potentially reducing
the estimated General Fund Capital Improvement Fund gap of $4.3 million in FY 2019. This section
addresses both items by first providing a summary of recommended changes as approved by the
Finance Committee as well as information pertaining to eliminating the FY 2019 funding gap.
Summary of Recommended Changes to the FY2018 City Manager Proposed Budget
In total, an increase of $2.0 million in expenses is recommended in this fund in FY 2018. This reflects the
combined impact of the reappropriation of funds for various capital projects ($1.3 million) and
establishing the Junior Museum and Zoo Renovation Project (AC-18001) in the amount of $706,000. In
total, when including recommended reappropriations of funds, this would increase the FY 2018 budget
from $75.5 million to $77.5 million.
The Junior Museum and Zoo Renovation (AC-18001) Project in the amount of $706,000 is offset by a
reduction in FY 2019 funding to the Rinconada Park Improvements Project (PE-08001). The Community
Services Department is planning to move the Junior Museum and Zoo (JMZ) operation to the Cubberley
Community Center in Fiscal Year 2018 to vacate the current site ahead of the JMZ Rebuild Project that is
expected to commence in spring 2018. Expenses consist of $30,000 in design costs for renovations at
Cubberley, $376,000 in construction and contingency costs, and $300,000 in permit and inspection fees
for the temporary reconfiguration and operation of JMZ at Cubberley. This will minimize the disruption
to services during the move and ensure the continuity of JMZ operations.
Information Requested by the Finance Committee – FY 2019 Expense Reduction of $4.3 million
During the FY 2018 Proposed Budget wrap-up discussion on May 18, 2017, Finance Committee directed
staff to return to the City Council with recommendations to eliminate the $4.3 million gap in Fiscal Year
2019 of the proposed five-year 2018-2022 Capital Improvement Program (CIP). In releasing a five year
2018-2022 Capital Improvement Program that reflects negative balances in FY 2019 through FY 2022, it
was staff’s intent to demonstrate the appetite for capital improvement investments against the
available resources. This has clearly articulated a need for focus and prioritization over the coming year
since the five year program, as displayed in the 2018-2022 Proposed Budget, is $27.7 million short. The
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remaining four years of the CIP are only a plan and are anticipated to be adjusted as part of the Fiscal
Year 2019 budget process; however, some of the types of adjustments staff plan to review subsequent
to the adoption of the FY 2018 budget are outlined below.
Project Close-out Analysis: over the next year, staff anticipates reviewing all projects, especially
those that have been reappropriated, to evaluate if all planned funding is needed and close
projects as appropriate. For example, analyzing the close-out of major bond funded projects to
ensure all proceeds are properly distributed. It is anticipated that approximately $4 million in
reductions to projects may be feasible.
Defer/Delay Projects: Staff have identified a handful of projects that could be deferred or
delayed and will evaluate additional options as part of the FY 2019 budget process. Current
projects that could be deferred or delayed include the Foothills Park, Pearson Arastradero
Preserve & Ester Clark Park Comprehensive Conservation Plan (PG-17001), Municipal Services
Center(MSC) A,B & C Roof Replacement (PF-17000), Baylands Boardwalk Improvements (PE-
14018), and Boulware Park Improvements (PE-17005). The deferral of these projects will result
in assets remaining in poor condition, assets remaining closed or with limited use to the
community and various users, and increased maintenance for those assets that are beyond
useful life.
Alternative Funding: The current capital plan relies heavily on alternative funding sources such
as the Stanford University Medical Center funding, however, some projects could be reimbursed
or shifted to a different funding source. For example, staff recommends evaluation of the
CalTrain Corridor Video Management System Installation (PE-18001) to be funded by a transfer
from the Fiber Optics Fund. This funding alignment and others like it require review by various
parties including the City Attorney's Office and would most likely require a review of the current
City Council policies that guide the expenses in the Fiber Optics Fund.
In addition, the City collects various developer impact fees, which can be used for capital
projects if allowed under the terms of the fee and approved by Council. CMR #7386 outlines the
fund balances in the developer impact fee funds as of the end of Fiscal Year 2016. Many of these
funds have already been programmed in the 2018-2022 CIP; however, staff will continue to
assess these funds as part of the annual budget process to ensure they are being used to offset
costs related to capital projects where applicable.
Additional Revenue Sources: There are several potential revenue sources for capital work that
have been identified, but the amounts that Palo Alto will receive have not been finalized;
therefore, funding was not programmed into the current 2018-2022 CIP. More information
about these funds should be available during Fiscal Year 2018 and staff will return to Council to
recognize and appropriate the funds when they become available.
Measure B Funding - In November 2016, Santa Clara County passed a 30-year, half-cent
countywide sales tax to enhance transit, highways, expressways and active transportation
(bicycles, pedestrians, and complete streets). Tax collections are expected to begin in April 2017
and the Valley Transportation Authority (VTA) expects to receive its first payment in June 2017.
Measure B is anticipated to generate between $6 billion and $6.5 billion in 2017 dollars.
Road Maintenance and Rehabilitation SB1 - The recent passage of SB1 for Road Maintenance
and Rehabilitation is estimated to provide an additional $1.2 million by Fiscal Year 2019. This
funding could supplement and enhance the City’s street maintenance program, possibly
allowing some funds to be reallocated to other capital projects with Council approval.
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The City is also continuing to explore new revenue opportunities such as proposed new hotels,
car dealership opportunities, and the sale of Transfer Development Rights (TDRs) while
understanding related impacts. These funds could be used to support capital infrastructure
through Council policies similar to the increased TOT funds that were approved to fund the City
Council Infrastructure Plan capital projects.
Overall, all of these strategies will be necessary to address the forecasted gap in revenues and capital
improvement expenses over the five year CIP. Closing out appropriate projects, and deferring/delaying
projects outlined in this memorandum will not fully eliminate the Infrastructure Reserve gap in all five
years of the CIP; however, staff anticipates these actions would, at minimum, address the funding gap in
Fiscal Year 2019. More work is still needed as part of the Fiscal Year 2019 budget process to further
prioritize projects, minimize costs, and balance the five-year CIP.
Enterprise Funds
Adjustments in the various enterprise funds primarily resulted from staff initiated changes that were
approved by the Finance Committee. Below reflect the significant adjustments, additional details on all
adjustments can be found on Attachment A, Exhibit 2.
Implementation of the Storm Water Management fee was approved by a majority of property
owners via a ballot-by-mail process in April 2017. A base rate of $13.65 per Equivalent
Residential Unit (ERU) per month was established along with a provision that the City Council
could increase the rate on an annual basis by the local inflation rate (as measured by the
Consumer Price Index) or 6 percent, whichever is less. Under the provisions of the ballot
measure, the base component of the fee of $7.48 per ERU per month would be charged
monthly until terminated by the City Council.
Various Operating changes and Capital Improvement projects related to Strom Water
Management are the result of staff working with a city manager-appointed blue ribbon
committee to generate programmatic and project improvements. Recommended actions result
in the addition of 1.0 Associate Engineer, $8.3 million in capital investments over the five year
CIP, realignment of existing staffing between funding sources, and the Green Infrastructure Plan
for Storm Water Management.
Realignment of the “Capital Improvement” expense category in various Utility Funds which was
inadvertently overstated due to the double counting of salaries and benefits associated with
capital improvement projects. Therefore, in order to reflect the lower level of expenses
anticipated in FY 2018, it is recommended
that the appropriated expenses in the
following funds be adjusted downward to
accurately align with the anticipated staffing
and construction costs. It is important to note
that there is no impact to rates or the
financial forecasting in these funds, this was
simply a display issue in the Proposed Budget
documents.
Airport Tie Down Lease and Property Rental Revenue increase to the estimate for tie down lease
and property rental revenues at the Airport that were inadvertently cited as $1,011,509 in the
Fund
Recommended
Adjustment
Electric Fund ($5,856,030)
Fiber Fund ($166,370)
Gas Fund ($2,666,977)
Wastewater Collection Fund ($2,155,768)
Water Fund ($1,395,292)
TOTAL ($12,240,437)
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FY 2018 Proposed Operating Budget when they should have been higher by $500,000. These
revenues are associated with the anticipated sunset of the Fix Based Operator (FBO) leases in
April 2017 and were anticipated in the development of the Airport Fund and were included in
the 5 year financial forecast previously provided therefore, no implications on the General Fund
loans to this fund are impacted.
Various reappropriations for ongoing capital improvement projects as discussed and outlined
later in this report.
Internal Service Funds
Minimal adjustments were approved in the various Internal Services Funds. Details the major
changes approved by the Finance Committee are below:
Various transfers to the University Avenue Parking District Fund to reflect the increased City
employee permit costs; and
Deferral of the replacement of a vehicle beyond FY 2018, a forklift in the Administrative Service
Department (as discussed in the General Fund section).
Subsequent to the Finance Committee meetings, the Buena Vista Mobile Home Park litigation was
settled. Staff recommends an additional transaction in the General Liability Fund appropriating
$375,000 to resolve and settle Buena Vista MHP Residents Association v. City of Palo Alto, Santa Clara
County Superior Court Case No. 2015-1-CV-284763. The funds are a compromise settlement of a claim
for attorneys' fees from the Residents Association.
Special Revenue Funds
The primary adjustments in these funds reflect the Finance Committees’ recommended changes to the
various parking fees and permits throughout University Avenue Parking, California Avenue parking, and
the current Residential Preferred Parking Programs. As discussed in further detail in the FY 2018
Municipal Fees section of the report and an At Places Memorandum to the CMR #8020, permit increases
are intended to:
begin bringing the cost of off-street parking permits closer to market (as evidenced by other
parking charges in the region);
begin bringing the cost of off-street parking permits closer to the cost of commuting by transit
(as evidenced by the cost of a Caltrain Go Pass) so there is less incentive for employees to drive
to work;
begin bringing the cost of off-street parking permits in the California Avenue area in line with
permits in the Downtown area;
increase the value of off-street parking permits so that employees are discouraged from
purchasing permits "just in case" they need them instead of when they plan to use them
regularly; and
increase revenues to the University Avenue Parking District Fund to support activities of the
Transportation Management Association (TMA); and
increase revenues to the California Avenue Parking District Fund to support needed capital
projects in this districts.
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The adjustments recommended in this section primarily reflect these changes as well as the Finance
Committee recommendation to increase funding to the TMA from $135,000 (in the proposed budget
released April 25, 2017) to total annual funding of $480,000 funded through increases in permit fees
downtown. With this funding, the TMA has estimated that they can reduce SOV commute trips to 14%
below the baseline of 5,500 (from the benchmark survey).
Subsequent to the Finance Committee meetings, the Buena Vista Mobile Home Park litigation was
settled. Staff recommends additional transactions to appropriate funds in the Housing In-Lieu
Residential and Commercial Funds totaling $14.5 million to complete the payment commitment to
resolve matters related to the Buena Vista Mobile Home Park (BVMHP) anticipated to occur in Fiscal
Year 2018 as outlined in Attachment A, Exhibit 2. The City is partnering with Santa Clara County to assist
the Housing Authority of the County of Santa Clara (HACSC) to acquire, improve, and operate the Buena
Vista Mobile Home Park, according to the terms of a purchase agreement reached in May 2017 between
HACSC and the Buena Vista Mobile Home Park owner.
These actions are detailed further in Attachment A, Exhibit 2, Amendments to the City Manager’s Fiscal
Year 2018 Proposed Operating and Capital Budgets.
Capital Reappropriations
As described in the Proposed Capital Budget document and discussed during the Finance Committee
Budget Hearings, the City Council-approved a change in the method for accounting for capital budget
reappropriations are included in the 2018-2022 Proposed Capital Budget Improvement Program (CIP).
Previously, any unspent capital funds carried forward from one fiscal year to the next automatically, as
long as the project was active. As a result of this October 2014 change to the Municipal Code, City
Council authorization is now required for reappropriations. The FY 2018 budget process continues this
process with the current FY 2018 Proposed Capital Budget including approximately $46.1 million in
reappropriated funds, across all funds. In the time since the Proposed Budget figures were developed
(late winter and early spring of 2017), departments have re-reviewed current year estimates and the
reappropriation amounts built into the proposed CIP. Additional reappropriation adjustments are
recommended as part of this wrap-up memorandum in order to update the FY 2018 Capital Budget with
current, more refined estimated activity levels in Fiscal Year 2017. Cumulatively, this re-review of
projects has resulted in staff’s recommendation to increase the Fiscal Year 2018 Proposed Budget by a
total of $14.8 million, from $157.2 million to $172.0 million.
Fund
Recommended Fiscal Year
2018 Funding Adjustment
Airport Fund $45,000
Capital Improvement Fund $1,280,713
Electric Fund $950,865
Gas Fund $3,495,960
Vehicle Replacement Fund $400,000
Wastewater Collection Fund $448,740
Wastewater Treatment Fund (R) $7,000,000
Water Fund $1,140,717
Total All Funds $14,761,995
(R) Denotes a reappropriation of revenues as well.
These adjustments, as outlined by project in Attachment A, Exhibit 2, combined with those outlined in
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the Proposed Capital Budget will ensure that funds are available at the onset of Fiscal Year 2018 for
projects that have experienced delays in the current year and will reduce the Fiscal Year 2018 Proposed
budget for projects that experienced higher than anticipated expenditure levels within Fiscal Year 2017.
In total, reappropriations of an estimated $60.9 million remain below those assumed in the FY 2017
Adopted Capital Budget of $79.8 million.
TABLE OF ORGANIZATION
At this time, only one change from the Table or Organization as outlined in the FY 2018 City Manager’s
Proposed Operating Budget on pages 487 through 503 for full time benefited positions is recommended.
As a result of the approval by the voters of the Storm Water Management fee, 1.0 Associate Engineer
was recommended by staff and approved by the Finance Committee. Below is a revised position
summary based on all recommended and Finance Committee approved changes as of May 18, 2017
resulting in a net addition of 4.85 positions.
FY 2017 Adopted to FY 2018 Budget Position Changes
(As of May 18, 2017)
General
Fund
Enterprise
Funds
Other
Funds*
Total
Fiscal Year 2017 Adopted Budget 603.94 353.61 94.55 1,052.10
Fiscal Year 2017 Approved Adjustments** 1.25 0.75 0.00 2.00
FY 2017 Modified Budget 605.19 354.36 94.55 1,054.10
FY 2018 Net Increase 0.35 3.50 1.00 4.85
FY 2018 Reallocation (1.12) 0.00 1.12 0.00
Fiscal Year 2018 Budget 604.42 357.86 96.67 1,058.95
Net Difference (0.77) 3.50 2.12 4.85
* Other Funds include the Capital Improvement, Internal Service, and Special Revenue Funds.
** CMO Reorganization: This action reorganized the City Manager’s Office staffing, eliminating 2.75 positions including 1.75 Assistant City
Manager positions and 1.0 Economic Development Manager and adding 2.0 Deputy City Manager and 2.0 Assistant to the City Manager
positions. In the Utilities Department, 1.0 Utilities Chief Operating Officer was added and the Utilities Director was retitled to the Assistant
City Manager/Utilities General Manager shared by the CMO and Utilities Departments. NOTE: This table does not include Hourly positions.
MUNICIPAL FEE SCHEDULE
On May 18, 2017 the Finance Committee recommended that the City Council adopt the changes to the
Fiscal Year 2018 Proposed Municipal Fee Schedule with amendments (Attachment A, Exhibit 3). Major
changes made to the Fiscal Year 2018 Proposed Municipal Fee Schedule include a 6.0 percent fee
increase for average salary and benefits and adjustments to achieve cost recovery levels per the
guidelines approved by the City Council, and adjustments to Planning and Community Environment
Impact Fees in accordance with prior Council resolutions.
Additionally, as detailed in the attached CMR #8020, the Finance Committee approved 17 new fees, the
deletion of 16 fees, and adjustments to 120 fees by a rate other than 6.0% to either adjust for cost
recovery levels, align with market value, or capture other technical adjustments. Three of the 17 new
fees approved by the Committee are related to the City’s electric vehicle charging stations. These fees
will allow for fees that will recover the costs associated with charging including the electricity,
maintenance, and replacement costs of the charging stations as well as establish two fees to be charged
City of Palo Alto Page 13
at the authorization of the City Manager – an Electric Vehicle Charger Connection Fee and an Electric
Vehicle Charger Connection Overstay fee. The intent of these fees is to encourage turnover in the use of
the charging stations. More detailed information can be found in the At Places Memorandum to the
CMR #8020. Analysis of amendments to valuation-based municipal fees for Development Services is
currently underway and will be brought forward separately following the completion of a cost of service
analysis.
The Committee made a number of changes to fee rates for parking permits. Specifically, the Committee
amended staff’s recommendations and recommended the following changes:
Amend the fee for Downtown Garage/Lot and full price employee Downtown RPP employee
permits to $365 for six months ($730 for one year). This represents a 57% increase from the
current price of $466 for one year. Funds from the garage/lot permits would support the TMA.
Amend the fee for California Avenue Garage/Lot and full price employee Evergreen
Park/Mayfield RPP full price employee permits to $182.50 for six month ($365 for one year).
This represents a 145% increase from the current price of $149 for one year. Funds from the
garage/lot permits would support capital projects in the area. (As noted below, full price RPP
employee permits would not rise until the end of the “pilot” period which ends March 31, 2018.)
Standardize the cost of daily permits in the Downtown and California Avenue areas at $25 per
day, up from the current price of $17.50 downtown and $8.00 in the California Avenue Area.
Standardize all annual residential RPP permit fees at $50 per year and leave the low income
employee RPP permit fees at $50 for six months ($100 for one year).
Included in this report are minor additional changes from those actions approved by the Finance
Committee in related to various parking programs and fees. The additional recommended changes to
fees and program ordinances are outlined below.
Additional modifications to seven fee titles proposed in the Planning and Community
Environment department specific to parking permits in University Avenue, California Avenue,
and RPP districts. Included are minor revisions to consolidate and clarify permit types and
simplify the title.
In accordance with Resolution No. 9663, which established the Evergreen Park/Mayfield pilot
program and pricing, additional language is recommended to be included with Employee and
Employee Daily parking permits to specify that these recommended price increases will not take
effect in this particular RPP until the program pilot period ends on March 31, 2018. With the
staff recommendation, the parking permit fees would bet set by the Municipal Fee Schedule at
the conclusion of the pilot phase.
Staff recommends that parking permit fees be streamlined and set by the Municipal Fee
Schedule at the conclusion of the pilot phase.
The Citywide Residential Preferential Parking Ordinance originally, adopted in December 2014
and amended in February 2016, includes parameters for all residential preferential parking
programs citywide. Resolutions 9473, 9577 and 9671 provide specific direction on the details of
the Downtown Residential Preferential Parking (RPP) Program, including the establishment of
parking permit fees. The attached draft resolution (Attachment N), if adopted, will remove the
reference to parking permit fees in Resolution 9671, and tie all Downtown Residential
Preferential Parking (RPP) Program parking permit fees to the Municipal Fee Schedule in FY 2018
and future years. Downtown Residential Preferential Parking (RPP) Program resident parking
City of Palo Alto Page 14
permits are currently set to expire on March 31, 2018 and employee parking permits will expire
on September 30, 2017 and March 31, 2018. The new fees will be collected at the time new
parking permits are purchased by residents and employees.
Lastly, Attachment P, “Parking at a Glance,” summarizes the various parking fee changes recommended
for FY 0218 across all programs.
FISCAL YEAR 2018 RATE CHANGES
From March through May 2017, the Utilities Advisory Commission and Finance Committee received and
reviewed various utility financial plans, transfer requests, and rate changes recommended by staff. This
report outlines the actions requested, transmits the resolutions from these reviews, and requests City
Council approval and adoption.
Attached to this report are a number of documents referenced throughout the recommendation
language and the report. In addition, this report also includes links to the City’s website for all the staff
reports presented throughout the review process to the Utilities Advisory Commission, Finance
Committee, and City Council.
Staff and the Finance Committee recommend that the City Council approve the Utility financial plans
and rate changes listed below. These financial plans and rate changes were reviewed and approved by
the Utilities Advisory Commission between February and April of 2017, and by the Finance Committee
between March and May of 2017. This year, there have been three separate rates that have already
been approved by the City Council – Storm Drain, Water, and Refuse. Details of these changes are
provided below as informational items. No new action is recommended to be taken on these.
Proposed Rate Changes (recommended for adoption in this report)
Electric
The FY 2018 Electric Utility Financial Plan (Attachment C) includes projections of the utility’s costs and
revenues through FY 2027. For FY 2018, a 10% to 14% rate increase, depending on customer class and
usage, is proposed. Beyond FY 2018, a 7% increase is projected for the following fiscal year. However,
even with these increases, residential electric rates will remain approximately 35% to 45% below Pacific
Gas & Electric (PG&E) rates and comparable to, or lower than, Santa Clara and Roseville, other publicly-
owned utilities that maintain very low bills for customers. The proposed Electric rate schedules are
included as Attachment D & E.
In addition, to maintain adequate Operations Reserves, the following FY 2018 transfers are requested: 1)
up to $911,000 from the Supply Rate Stabilization Reserve to the Supply Operations Reserve, 2) up to
$9.0 million from the Hydroelectric Stabilization Reserve to the Supply Operations Reserve, and 3) up to
$4.5 million from the Supply Operations Reserve to the Distribution Operations Reserve (Attachment B).
For more information, see CMR #7980 , approved by the Finance Committee on May 18, 2017.
Gas
The FY 2018 Gas Utility Financial Plan (Attachment G) includes projections of the utility’s costs and
revenues through FY 2027. While the FY 2017 Financial Plan projected a 9% rate increase for FY 2018,
the FY 2018 Gas Utility Financial Plan includes no distribution-related gas rate increase. However,
beginning in FY 2018, customers may see an increase of up to 4% on their bills as a result of the costs of
implementing the Carbon Neutral Gas Plan adopted by Council in December 2016. Future-year
distribution-related rate increases are projected to be 4% to 6% over the next four years. The annual
City of Palo Alto Page 15
gas bill for the median residential customer for calendar year 2016 was $426.72, about 20% lower than
the annual bill for a PG&E customer with the same consumption.
In addition, the plan includes proposed transfers to the Operations Reserve of $1.2 million and $4.8
million from the Rate Stabilization Reserve in FY 2018 and FY 2019, respectively, to ensure that there are
appropriate financial reserves for contingencies. For more information, see CMR #7979, approved by
the Finance Committee on May 18, 2017.
Wastewater Collections
The FY 2018 Wastewater Collection Utility Financial Plan (Attachment I) includes projections of the
utility’s costs and revenues through FY 2027. Staff projects no need for a wastewater rate adjustment in
FY 2018; however, rate increases of 7% are projected for FY 2019 through FY 2023. The annual sewer
bill for a Palo Alto resident will remain $418 under the current rates, 31% lower than the average of
neighboring communities. For more information, see CMR #7855, approved by the Finance Committee
on April 4, 2017.
Dark Fiber
Since 2007, the EDF-1 and EDF-2 rates for Dark Fiber (Attachment K) customers have increased annually
by the annual December change in the Consumer Price Index for All Urban Consumers (CPI-U) in the San
Francisco area per their dark fiber contract agreements. Based on prior Utilities Advisory Committee
and City Council direction, these rate changes are routinely included as part of the Budget adoption
process and are not discussed or called out in a separate staff report. This year’s change in CPI-U was
3.5%, as reported by the Bureau of Labor Statistics.
Water Financial Forecast
The FY 2018 Water Utility Financial Plan (Attachment M) includes projections of the utility’s costs and
revenues for FY 2018 through FY 2027. A 4% rate increase is scheduled for City Council approval on June
19, 2017 along with the repeal of the drought surcharge, as outlined below. In addition, as discussed in
last year’s financial plan, staff still recommends the transfer of $1.877 million from the Rate Stabilization
Reserve to the Operations Reserve in FY 2018. This action will reduce the Rate Stabilization Reserve to
zero. For more information, see CMR #7854, approved by the Finance Committee on April 4, 2017.
Approved Rate Changes (City Council has already adopted these; information only)
The proposed changes to Water and Refuse Rates were considered in a separate Public Hearing. As
required under Article XIIID of the California State Constitution, the Water and Refuse rate public
hearing was noticed as June 19, 2017. For more information on these proposed rate changes to Water
and Refuse rates, see CMR #8171.
In April 2017, the majority of Palo Alto property owners voted to approve a new Storm Water
Management fee that will replace the City’s existing Storm Drainage fee in June 2017. These results
were certified by the City Council on April 17, 2017 (CMR#7937) and the updated Storm Water
Management Fee schedule (D-1) was adopted by the City Council on May 22, 2017 (CMR #8125).
Water Rates
The net result of the changes scheduled for City Council approval on June 19, 2017 in CMR 8171 means
that water bills will decrease 2-4% for customers whose usage remains similar to pre-drought
consumption. This is because the 4% increase to base water rates is offset by the removal of the
drought surcharge currently in effect. Costs are projected to rise by about 3% per year over the next
City of Palo Alto Page 16
several years, primarily due to increasing water supply costs. As a result, staff recommends a 4% water
rate increase in FY 2018, and 6% rate increases in FY 2019 through FY 2023.
As the State has removed mandatory usage restrictions for California agencies, the San Francisco Public
Utilities Commission (SFPUC) has adequate water supplies, and as the Water Fund’s reserves are within
guideline levels, staff is also recommending that Council deactivate the drought surcharge on July 1,
2017.
Refuse
The FY 2018 Refuse Rate is recommended to be increased by 5% for residential customers, and all other
refuse rates are recommended to stay at current levels. This residential rate increase of 5% completes a
three year plan of residential rate adjustments and brings residential revenues fully in line with the cost
to serve customers.
This increase is less than the projected increase of 8% that was initially anticipated in the three-year plan
primarily as a result of GreenWaste depreciation expenses and reductions in the Sunnyvale Materials
and Recycling Transfer (SMaRT) station debt services budget. The monthly cost of a 32 gallon cart would
increases from $47.69 to $50.07, or by $2.38 per month. See staff report #7724, approved by the
Finance Committee on April 4, 2017 and staff report #8171 scheduled for City Council approval on June
19, 2017, for more information.
Storm Water Management Fee
In April 2017, the majority of Palo Alto property owners voted to approve a new Storm Water
Management fee that will replace the City’s existing Storm Drainage fee. These results were certified by
the City Council on April 17, 2017, CMR #7937. A typical homeowner will pay about $13.65 per month
per Rate Schedule D-1, effective June 1, 2017. This represents a 62 cent increase for a typical residential
property.
COMPENSATION PLANS
In addition to the approval of the Table of Organization, the changes in the Fiscal Year 2018 City
Manager’s Budget result in amendments to three of the City’s employee group’s salary schedules.
These reflect changes to classification compensations or changes to add or amend current job
classifications for these employee groups. Below is a summary of the recommended changes:
Management and Professional Group (MGMT) (Attachment O, Exhibit 1)
Add the Principal Planner classification as it is needed for duties higher than the Senior Planner
but lesser than the Planning Manager.
Title change of the Principal Attorney to Chief Assistant City Attorney. This title change is
detailed in greater length in the “City Attorney’s Office Staffing Restructure” budget proposal in
the City Attorney’s Office Departmental section of the FY 2018 Operating Budget.
Title change Senior Assistant City Attorney to Assistant City Attorney due to restructuring of the
department. This title change is detailed in greater length in the “City Attorney’s Office Staffing
Restructure” budget proposal in the City Attorney’s Office Departmental section of the FY 2018
Operating Budget.
Title change Senior Deputy City Attorney to Deputy City Attorney due to restructuring of the
department. This title change is detailed in greater length in the “City Attorney’s Office Staffing
City of Palo Alto Page 17
Restructure” budget proposal in the City Attorney’s Office Departmental section of the FY 2018
Operating Budget.
Service Employees International Union (SEIU) 2015-2018 (Attachment O, Exhibit 2):
Update Senior Industrial Waste Investigator salary rates due to internal salary alignment. This
change is detailed in greater length in the “Senior Industrial Waste Investigator Pay Scale
Adjustment” budget proposal in the Public Work’s Departmental section of the FY 2018
Operating Budget.
Update Utilities Compliance Technician and Utilities Compliance Technician salary rates. This
change is detailed in greater length in the “Utilities Compliance Group Workload Realignment”
in the Utilities Departmental section of the FY 2018 Operating Budget.
Reclassify Gas System Technician to Assistant Gas Measurement and Control Technician. This
change is based on a grievance settled through a reclassification agreement between the Union
and the City.
Reclassify Gas System Technician II to Gas Measurement and Control Technician. This change is
based on a grievance settled through a reclassification agreement between the Union and the
City.
Add Assistant Gas and Water Measurement and Control Technician classification. This change is
detailed in greater length in the “Gas and Water Meter Shop Reorganization” in the Utilities
Departmental section of the FY 2018 Operating Budget.
Add Gas and Water Measurement and Control Technician classification. This change is detailed
in greater length in the “Gas and Water Meter Shop Reorganization” in the Utilities
Departmental section of the FY 2018 Operating Budget.
Add Gas and Water Measurement and Control Technician - Lead classification. This change is
detailed in greater length in the “Gas and Water Meter Shop Reorganization” in the Utilities
Departmental section of the FY 2018 Operating Budget.
Limited Hourly Group (Attachment O, Exhibit 3):
Update Management Specialist salary rates with a higher maximum range to compensate for
highly skilled recruitments.
REFERRAL ITEMS FOR FULL COUNCIL AT THE REQUEST OF THE FINANCE COMMITTEE
The Finance Committee approved a motion on May 18, 2017 to recommend to the full City Council to
refer to staff the following items for further review. A motion by the full City Council would be
necessary to refer these items to staff.
Return to the Finance Committee in August to review the citywide implications of: 1) structural
revenue and expense growth ensuring expense growth remains at or below that of revenues;
and 2) unfunded pension liability. Some specific areas to address include:
Look first at current public safety growth rate of 10 to 12 percent in relation to citywide
growth rate of 6 percent. Include a review of staffing levels and alternative models.
Review of the financial reporting of the unfunded pension liability
City of Palo Alto Page 18
Report to City Council on the plan and implications for power redundancy
RESOURCE IMPACT
This reports summaries and seeks the City Council approval of the FY 2018 Operating and Capital
budgets and the supporting fee schedules, rate schedules, and salary schedules in order to support the
projections and appropriations included. The approval of the City Manager’s FY 2018 Proposed Capital
and Operating Budget as recommended to be amended in this report would result in the appropriation
of funds for these services and programs to be completed during the 2018 fiscal year.
This report also summarizes and seeks the City Council approval of the proposed FY 2018 Financial Plans
and Utility rate changes, as attached. Further information on the impact related to each utility may be
found within the attached Financial Plans.
ENVIRONMENTAL REVIEW
Adoption of the attached Financial Plans and budgeted transfers does not meet the California
Environmental Quality Act’s definition of a project, pursuant to Public Resources Code Section 21065
and CEQA Guidelines Section 15378(b)(4) and (5), because it is a governmental fiscal and administrative
activity which will not cause a direct or indirect physical change in the environment. Adoption of the
proposed electric and dark fiber rates to meet operating expenses, purchase supplies and materials,
meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is
not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources
Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing
the staff report and all attachments presented to Council, the Council incorporates these documents
herein and finds that sufficient evidence has been presented setting forth with specificity the basis for
this claim of CEQA exemption.
Attachments:
Attachment A: FY 2018 Budget Adoption Ordinance
Attachment A, Exhibit 1: FY 2018 Proposed Budgets & Municipal Fee Report (Previously
Distributed)
Attachment A, Exhibit 2: Recommended Amendments to the City Manager's FY 2018
Proposed Budget
Attachment A, Exhibit 3: FY 2018 Municipal Fee Schedule Amendments
Attachment B: Resolution Approving the FY 2018 Electric Utility Financial Plan and
Various Electric Utility Reserve Transfers
Attachment C: FY 2018 Electric Utility Financial Plan
Attachment D: Resolution Adopting Electric Rate Increase and Amending Rate Schedules
Attachment E: Electric Utility Rate Schedules E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-
7-G, E-7 TOU, and E-14
Attachment F: Resolution Approving the FY 2018 Gas Utility Financial Plan
Attachment G: FY 2018 Gas Utility Financial Plan
Attachment H: Resolution Approving the FY 2018 Wastewater Collection Utility Financial
Plan
Attachment I: FY 2018 Wastewater Collection Utility Financial Plan
City of Palo Alto Page 19
Attachment J: Resolution Adopting FY 2018 Dark Fiber Rate Increase and Amending Rate
Schedules EDF-1 and EDF-2
Attachment K: Dark Fiber Optic Rate Schedules EDF-1 and EDF-2
Attachment L: Resolution Approving the FY 2018 Water Utility Financial Plan and
Reserve Transfer
Attachment M: FY 2018 Water Utility Financial Plan
Attachment N: Resolution Amending Resolution No. 9671, Downtown Residential
Preferential Parking District Program
Attachment O, Exhibit 1: Management Professional Salary Schedule for FY 2018
Attachment O, Exhibit 2: Service Employees International (SEIU) Salary Schedule for FY
2018
Attachment O, Exhibit 3: Limited Hourly Salary Schedules FY 2018
Attachment P: FY 2018 Parking at a Glance
Attachment Q: Finance Committee Budget Proceedings
Attachment R: Public Letters to Council
ATTACHMENT A
1
ORDINANCE NO. XXXX
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING THE
BUDGET FOR FISCAL YEAR 2018
SECTION 1. The Council of the City of Palo Alto finds and determines as follows:
A. Pursuant to the provisions of Section 6(g) of Article IV of the Charter of the City of Palo
Alto and Chapter 2.28 of the Palo Alto Municipal Code, the City Manager has prepared and
submitted to the City Council, by letter of transmittal, a budget proposal for Fiscal Year 2018;
and
B. Pursuant to the provisions of Section 12 of Article III of the Charter, the Council did, on
June 27, 2017, hold public hearings on the budget after publication of notice in accordance with
Section 2.28.070 of the Palo Alto Municipal Code; and
C. In accordance with the provisions of Chapter 8 of Division 1, of Title 7, commencing
with Section 66016 of the Government Code, as applicable, the Council did on June 27, 2017,
hold a public hearing on the proposed amendments to the Municipal Fee Schedule, after
publication of notice and after availability of the data supporting the amendments was made
available to the public at least 10 days prior to the hearing.
SECTION 2. Pursuant to Chapter 2.28 of the Palo Alto Municipal Code, the following
documents, collectively referred to as “the budget” are hereby approved and adopted for Fiscal
Year 2018:
(a) The budget document (Exhibit “1”) containing the proposed operating and
capital budgets submitted on April 25, 2017, by the City Manager for Fiscal Year
2018, entitled “City of Palo Alto ‐ City Manager’s Fiscal Year 2018 Proposed
Budget” covering General Government Funds, Enterprise Funds, Special Revenue
Funds, and Internal Service Funds, a copy of which is on file in the Department of
Administrative Services, to which copy reference is hereby made concerning the
full particulars thereof, and by such reference is made a part hereof; and
(b) The Amendments to the City Manager’s Fiscal Year 2018 Proposed Budget,
attached hereto as Exhibit “2,” and made a part hereof; and
(c) Changes and revised pages in the Table of Organization, as displayed on pages
487 through 503 in “Exhibit 1,” and amended in Exhibit “2” made a part hereof;
and
ATTACHMENT A
2
(d) Fee changes of the Municipal Fee Schedule attached hereto as Exhibit “3”; and
SECTION 3. The sums set forth in the budget for the various departments of the City, as
herein amended, are hereby appropriated to the uses and purposes set forth therein.
SECTION 4. All expenditures made on behalf of the City, directly or through any agency,
except those required by state law, shall be made in accordance with the authorization
contained in this ordinance and the budget as herein amended.
SECTION 5. Appropriations for the Fiscal Year 2017 that are encumbered by approved
purchase orders and contracts for which goods or services have not been received or contract
completed, and/or for which all payments have not been made, by the last day of the Fiscal Year
2017 shall be carried forward and added to the fund or department appropriations for Fiscal
Year 2018.
SECTION 6. The City Manager is authorized and directed to make changes in the
department and fund totals and summary pages of the budget necessary to reflect the
amendments enumerated and aggregated in the budget as shown in Exhibit “2” and the Fiscal
Year 2016 appropriations carried forward as provided in Section 5.
SECTION 7. As specified in Section 2.04.320 of the Palo Alto Municipal Code, a majority
vote of the City Council is required to adopt this ordinance.
SECTION 8. As specified in Section 2.28.140(b) of the Palo Alto Municipal Code, the
Council of the City of Palo Alto hereby delegates the authority to invest the City’s funds to the
Director of Administrative Services, as Treasurer, in accordance with the City’s Investment Policy
for Fiscal Year 2018.
SECTION 9. The Council of the City of Palo Alto adopts the changes to the Municipal Fee
Schedule as set forth in Exhibit “3”. The amount of the new or increased fees and charges is no
more than necessary to cover the reasonable costs of the governmental activity, 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 governmental activity. All new and increased
fees shall go into effect immediately; provided that pursuant to Government Code Section
66017, all Planning & Community Environment Department and Development Services
Department fees relating to a “development project” as defined in Government Code Section
66000 shall become effective sixty (60) days from the date of adoption.
SECTION 10. Fees in the Municipal Fee Schedule are for government services provided
directly to the payor that are not provided to those not charged. The amount of this fee does not
ATTACHMENT A
3
exceed the reasonable costs to the City of providing the services. Consequently, pursuant to Art.
XIII C, Section 1(e)(2), such fees are not a tax.
SECTION 11. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this
ordinance shall become effective upon adoption.
SECTION 12. The Council of the City of Palo Alto hereby finds that this is not a project
under the California Environmental Quality Act and, therefore, no environmental impact
assessment is necessary.
INTRODUCED AND PASSED: Enter Date Here
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
_________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM:
APPROVED:
City Attorney
City Manager
Director of Administrative Services
Fiscal Year 2018 City Manager’s
Proposed Operating & Capital Budget, & Municipal Fees
These documents were originally distributed on April 25, 2017.
Printed copies are available upon request for $27 per book (FY
2017 fee).
These documents may be viewed at any City of Palo Alto Library
or the City’s website:
www.cityofpaloalto.org/gov/depts/asd/budget.asp
Changes to the Municipal Fee Schedule were distributed in
Council Packet on May 4, 2017. The City Manager’s Staff Report
can be viewed on the City’s website:
http://www.cityofpaloalto.org/civicax/filebank/documents/57714
‐ At Places memorandum: Electric Vehicle Chargers
http://www.cityofpaloalto.org/civicax/filebank/documents/57898
‐ At Places memorandum: Parking Permit Muni Fees
http://www.cityofpaloalto.org/civicax/filebank/documents/57884
In addition, various at places memorandum and presentations
were presented throughout the Finance Committee Hearings in
May 2017. These documents can be found on the City’s website
under “FY 2018 Budget Hearings”:
http://www.cityofpaloalto.org/gov/depts/asd/budget.asp
ATTACHMENT A, EXHIBIT 1
Department Adjustment Adjustment
GENERAL FUND (102)
Administrative
Services
Reduce Vehicle Replacement and Maintenance Fund Allocated Charges
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action reduces the General Fund's contribution to the Vehicle Fund for vehicle replacement
by $50,000. A corresponding reduction to the scheduled vehicle and equipment replacement
capital project for FY 2018 (VR‐18000) will remove a $50,000 forklift from the list of vehicles to
be replaced in FY 2018, as detailed in Attachment A Exhibit 2. This action was recommended in
part to help balance the General Fund.
(50,000)$
City Auditor Citizen Survey on Code Enforcement
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action provides $20,000 to the City Auditor's Office to conduct a citizen survey of resident
opinions on the quality of code enforcement in Palo Alto. Information collected from the
survey will augment the Code Enforcement Audit and improve the quality of the Code
Enforcement Program. In addition, funding will provide some capacity for customized
questions in the City's annual National Citizen Survey.
20,000$
City Manager's
Office
Reallocation of Parking Evaluation Study Funding
This action reallocates $150,000 in one‐time funding from the City Manager's Office to the Non‐
Departmental section of the FY 2018 Proposed Operating Budget. These funds are
recommended for an outside study that will help inform the path forward for the City's parking
and transportation efforts, contribute to the integration of a strategic vision across each of
those efforts, and review what organizational structure would best manage these new
initiatives. Given the citywide nature of this evaluation, it is recommended to reallocate
funding from the City Manager's Office to Non‐Departmental section to better represent that it
is a citywide initiative.
(150,000)$
Community
Services
Storm Drain Ballot Measure Rate Change
This action appropriates the expenses associated with the marginal increase to Storm Drain
rates as a result of the passage of the Storm Drain Ballot Measure. More information can be
found in the Storm Drain section of this document.
11,205$
Community
Services
Youth Community Services
Consistent with the Finance Committee recommended revisions approved on May 18, 2017
this action provides $50,000 per year for the next three years to Youth Community Services
(YCS) for them to take advantage of the Santa Clara County matching grant program. This
funding, along with the County's matching funding, will allow YCS to work on their 'Youth
Connectedness Initiative' to increase community involvement and foster a more connected
environment through collaborative, service‐based activities.
50,000$
Fire
Department
Storm Drain Ballot Measure Rate Change
This action appropriates the expenses associated with the marginal increase to Storm Drain
rates as a result of the passage of the Storm Drain Ballot Measure. More information can be
found in the Storm Drain section of this document.
274$
Library Storm Drain Ballot Measure Rate Change
This action appropriates the expenses associated with the marginal increase to Storm Drain
rates as a result of the passage of the Storm Drain Ballot Measure. More information can be
found in the Storm Drain section of this document.
400$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
Attachment A, Exhibit 2 Page 1
Department Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
Non‐
Departmental
Reallocation of Parking Evaluation Study Funding
This action reallocates $150,000 in one‐time funding to the Non‐Departmental section from the
City Manager's Office in the FY 2018 Proposed Operating Budget. These funds are
recommended for an outside study that will help inform the path forward for the City's parking
and transportation efforts, contribute to the integration of a strategic vision across each of
those efforts, and review what organizational structure would best manage these new
initiatives. Given the citywide nature of this evaluation, it is recommended to reallocate
funding from the City Manager's Office to Non‐Departmental section to better represent that it
is a citywide initiative.
150,000$
Non‐
Departmental
Property Tax Increase
This action increases the estimate for property tax revenue in FY 2018 by $200,000. This
increase reflects updated information from the Santa Clara County Assessor's Office, which now
estimates an increase of 6.9% from FY 2017, an increase of 0.4% more than the original
estimate, which was a year over year increase of 6.5%.
200,000$
Police
Department
Storm Drain Ballot Measure Rate Change
This action appropriates the expenses associated with the marginal increase to Storm Drain
rates as a result of the passage of the Storm Drain Ballot Measure. More information can be
found in the Storm Drain section of this document.
72$
Planning &
Community
Environment
Transfer to California Avenue Fund from General Fund
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action eliminates a transfer from the General Fund to the California Avenue Fund. In order
to fully fund parking initiatives in respective funds, various increases to the costs of parking
permits were recommended. In the California Avenue Fund, employee permits are
recommended to increase from $149.00 to $365.00 per year, an increase of $216.00. The
permit cost increase will ensure sufficient resources are available in the California Avenue Fund
for various initiatives and minimize the General Fund subsidy.
(75,000)$
Planning &
Community
Environment
Transfer to University Avenue Fund
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action increases a transfer from the General Fund to the University Avenue Fund. In order
to fully fund parking initiatives in respective funds, various increases to the costs of parking
permits were recommended. In the University Avenue Fund, employee parking permit prices
were recommended to increase from $466.00 to $730.00 per year, an increase of $264.00. The
General Fund transfers funds to the University Avenue Fund each year to provide parking
permits for City staff; this increase represents the marginal costs associated with the increase in
permit costs for City staff permits.
97,944$
Public Works Storm Drain Ballot Measure Rate Change
This action appropriates the expenses associated with the marginal increase to Storm Drain
rates as a result of the passage of the Storm Drain Ballot Measure. More information can be
found in the Storm Drain section of this document.
1,747$
Attachment A, Exhibit 2 Page 2
Department Adjustment Adjustment
GENERAL FUND (102)
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
Public Works Tree Trimming Seven Year Cycle
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action will continue tree trimming on a seven year cycle, which was first approved as part
of the Fiscal Year 2017 Adopted Operating Budget. The initial proposed Fiscal Year 2018 budget
recommended transitioning to a 10 year cycle in order to minimize the costs for the remainder
of the current contract. This funding restores tree trimming to a seven year cycle, thereby
continuing the current level of service for the duration of the contract, which ends in FY 2019.
338,220$
Fund Balance Adjustment to Fund Balance
This action decreases the fund balance to offset adjustments recommended in this report.
(194,862)$
GENERAL FUND (102) SUBTOTAL 200,000$ 200,000$
Attachment A, Exhibit 2 Page 3
Department Adjustment Adjustment
GENERAL FUND CAPITAL IMPROVEMENT FUND (471)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment A, Exhibit 2, excluding the change for the JMZ Renovation Project, which is
detailed in greater length below.
1,280,713$
Capital JMZ Renovation Project
This action establishes a Junior Museum and Zoo Renovation (AC‐18001) Project in the amount
of $706,000, offset by a reduction in FY 2019 funding to the Rinconada Park Improvements
Project (PE‐08001). The Community Services Department is planning to move the Junior
Museum and Zoo (JMZ) operation to the Cubberley Community Center in Fiscal Year 2018 to
vacate the current site ahead of the JMZ Rebuild Project that is expected to commence in
spring 2018. Expenses consist of $30,000 in design costs for renovations at Cubberley,
$376,000 in construction and contingency costs, and $300,000 in permit and inspection fees for
the temporary reconfiguration and operation of JMZ at Cubberley. This will minimize the
disruption to services during the move and ensure the continuity of JMZ operations.
‐$ 706,000$
Capital Adjustment to Fund Balance
This action decreases the fund balance to offset adjustments recommended in this report.
‐$ (1,986,713)$
GENERAL FUND CAPITAL IMPROVEMENT FUND (471) SUBTOTAL ‐$ ‐$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
Attachment A, Exhibit 2 Page 4
Department Adjustment Adjustment
ENTERPRISE FUNDS
AIRPORT ENTERPRISE FUND (530)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment A, Exhibit 2.
45,000$
Public Works Airport Property Rental and Tie Down Revenue
This action increases the estimate for tie down lease and property rental revenues at the
Airport to align with projections related to the leases ending with the Fixed Base Operators
(FBOs). Airport tie down fees and rental revenues were previously collected by the FBOs; their
leases expired in April 2017. As a result of the expiration of the FBO leases, revenue projections
are recommended to increase. This increase has already been factored into the analysis of the
Airport's anticipated finances over the next five years.
500,000$
Fund Balance Adjustment to Fund Balance
This action decreases the fund balance to offset adjustments recommended in this report.
455,000$
AIRPORT ENTERPRISE FUND (530) SUBTOTAL 500,000$ 500,000$
ELECTRIC FUND (513 & 523)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment A, Exhibit 2.
#REF!(4,905,165)$
Utilities Transfer to the University Avenue Parking Permit Fund
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action increases a transfer from the Electric Fund to the University Avenue Fund. In order
to fully fund parking initiatives in respective funds, various increases to the costs of parking
permits were recommended. In the University Avenue Fund, employee parking permit prices
were recommended to increase from $466.00 to $730.00 per year, an increase of $264.00. The
Electric Fund transfers funds to the University Avenue Fund each year to provide parking
permits for City staff; this increase represents the marginal costs associated with the increase in
permit costs for City staff permits.
7,774$
Utilities Storm Drain Ballot Measure Rate Changes
This action appropriates the expenses associated with the marginal increase to Storm Drain
rates as a result of the passage of the Storm Drain Ballot Measure. More information can be
found in the Storm Drain section of this document.
696$
Utilities Adjustment to Fund Balance
This action decreases the fund balance to offset adjustments recommended in this report.
4,896,695$
ELECTRIC FUND (513 & 523) SUBTOTAL #REF!‐$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
Attachment A, Exhibit 2 Page 5
Department Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
FIBER OPTICS FUND (533)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment A, Exhibit 2.
‐$ (166,370)$
Utilities Transfer to the University Avenue Parking Permit Fund
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action increases a transfer from the Fiber Optics Fund to the University Avenue Fund. In
order to fully fund parking initiatives in respective funds, various increases to the costs of
parking permits were recommended. In the University Avenue Fund, employee parking permit
prices were recommended to increase from $466.00 to $730.00 per year, an increase of
$264.00. The Fiber Optics Fund transfers funds to the University Avenue Fund each year to
provide parking permits for City staff; this increase represents the marginal costs associated
with the increase in permit costs for City staff permits.
499$
Utilities Adjustment to Fund Balance
This action decreases the fund balance to offset adjustments recommended in this report.
165,871$
FIBER OPTICS FUND (533) SUBTOTAL ‐$ ‐$
GAS FUND (514 & 524)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment A, Exhibit 2.
‐$ 828,983$
Utilities Transfer to the University Avenue Parking Permit Fund
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action increases the transfer from the Gas Fund to the University Avenue Fund. In order to
fully fund parking initiatives in respective funds, various increases to the costs of parking
permits were recommended. In the University Avenue Fund, employee parking permit prices
were recommended to increase from $466.00 to $730.00 per year, an increase of $264.00. The
Gas Fund transfers funds to the University Avenue Fund each year to provide parking permits
for City staff; this increase represents the marginal costs associated with the increase in permit
costs for City staff permits.
3,766$
Utilities Storm Drain Ballot Measure Revenue Increase
This action appropriates the expenses associated with the marginal increase to Storm Drain
rates as a result of the passage of the Storm Drain Ballot Measure. More information can be
found in the Storm Drain section of this document.
13$
Utilities Adjustment to Fund Balance
This action decreases the fund balance to offset adjustments recommended in this report.
(832,762)$
GAS FUND (514 & 524) SUBTOTAL ‐$ ‐$
Attachment A, Exhibit 2 Page 6
Department Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
REFUSE FUND (525)
Public Works Storm Drain Ballot Measure Rate Change
This action appropriates the expenses associated with the marginal increase to Storm Drain
rates as a result of the passage of the Storm Drain Ballot Measure. More information can be
found in the Storm Drain section of this document.
152$
Public Works Adjustment to Fund Balance
This action decreases the fund balance to offset adjustments recommended in this report.
(152)$
REFUSE FUND (525) SUBTOTAL ‐$ ‐$
STORM DRAINAGE FUND (528)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment A, Exhibit 2.
‐$ 450,000$
Public Works Storm Water Ballot Measure Rate Changes
This action increases the revenue estimate for the Storm Drainage Fund to reflect rate
increases approved through a ballot measure. In April 2017 the Storm Water Management fee
was approved by a majority of property owners via a ballot‐by‐mail process, which established
a base rate of $13.65 per Equivalent Residential Unit (ERU) per month along with a provision
that the City Council could increase the rate on an annual basis by the local inflation rate (as
measured by the Consumer Price Index) or 6 percent, whichever is less. Under the provisions of
the ballot measure, the base component of the fee of $7.48 per ERU per month would be
charged monthly until terminated by the City Council. This action aligns expected revenues
with these changes; corresponding increases to City expenses for the City's Storm Drain costs
are detailed in the respective funds throughout this document.
314,977$
Public Works Watershed Protection Funding Alignment (Shift 2.21 FTE from Wastewater Treatment Fund)
This action reallocates 2.21 FTE from the Wastewater Treatment (WWT) Fund to the Storm
Drainage Fund. The Storm Drain Blue Ribbon Committee recommended that staff working on
watershed protection activities should be funded from the Storm Drainage Fund to better align
their job duties and functions with the appropriate source of funding. This will also ensure
sufficient resources are available to enforce compliance with new Municipal Regional Storm
Water Permit regulations related to watershed protection.
346,648$
Public Works Green Infrastructure
This action provides $341,000 to develop and implement a Green Infrastructure Plan required
by the new municipal regional permit regulations. To successfully meet the goals of the Green
Infrastructure Plan, the storm drain infrastructure will be updated. Improvements will
contribute to a more resilient and sustainable system that slows storm water runoff by
dispersing it to areas with vegetation and will promote bioretention to clean storm water
runoff.
341,000$
Attachment A, Exhibit 2 Page 7
Department Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
Public Works Storm Water Management Regulatory Requirements
This action adds a 1.0 FTE Associate Engineer position as well as $40,000 for consulting services
to ensure the City is in compliance with municipal regional storm water permit regulatory
requirements implemented by the Regional Water Board on January 1, 2016. In addition to
implementing a Green Infrastructure Plan, discussed above the revised regulations include
litter assessments, Non‐Profits (C3) compliance, and increased storm water inspections. This
action will ensure the City has sufficient resources to enforce compliance with the storm water
permit requirements.
Table of Organization Amendment
Consistent with the Storm Water Management Regulatory Requirements proposal detailed
above, this action amends the Table of Organization, pp. 495‐497 of the Proposed Operating
Budget distributed on April 25, 2017, for Public Works Enterprise Funds by adding 1.0 Associate
Engineer. This increases the number of Associate Engineers in the Public Works' Enterprise
Funds from 1.99 to 2.99, and increases the total number of full‐time FTE in the Public Works'
Enterprise Funds from 100.19 to 101.19. The total FTE city‐wide increases from 1,057.95 to
1,058.95 as a result of this action.
188,189$
Fund Balance Adjustment to Fund Balance
This action decreases the fund balance to offset adjustments recommended in this report.
(1,010,860)$
STORM DRAINAGE FUND (528) SUBTOTAL 314,977$ 314,977$
WASTEWATER COLLECTION FUND (527)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment A, Exhibit 2.
‐$ (1,707,028)$
Utilities Transfer to the University Avenue Parking Permit Fund
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action increases a transfer from the Wastewater Collection Fund to the University Avenue
Fund. In order to fully fund parking initiatives in respective funds, various increases to the costs
of parking permits were recommended. In the University Avenue Fund, employee parking
permit prices were recommended to increase from $466.00 to $730.00 per year, an increase of
$264.00. The Wastewater Collection Fund Transfers funds to the University Avenue Fund each
year to provide parking permits for City staff; this increase represents the marginal costs
associated with the increase in permit costs for City staff permits.
2,031$
Fund Balance Adjustment to Fund Balance
This action decreases the fund balance to offset adjustments recommended in this report.
1,704,997$
WASTEWATER COLLECTION FUND (527) SUBTOTAL ‐$ ‐$
Attachment A, Exhibit 2 Page 8
Department Adjustment Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
WASTEWATER TREATMENT FUND (526)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment A, Exhibit 2.
7,000,000$ 7,000,000$
Public Works Watershed Protection Funding Alignment (Shift 2.21 FTE from Wastewater Treatment Fund)
This action reallocates 2.21 FTE from the Wastewater Treatment (WWT) Fund to the Storm
Drainage Fund. The Storm Drain Blue Ribbon Committee recommended that staff working on
watershed protection activities should be funded from the Storm Drainage Fund to better align
their job duties and functions with the appropriate source of funding. This will also ensure
sufficient resources are available to enforce compliance with new Municipal Regional Storm
Water Permit regulations related to watershed protection.
(346,648)$
Public Works Storm Drain Ballot Measure Rate Change
This action appropriates the expenses associated with the marginal increase to Storm Drain
1,659$
Fund Balance Adjustment to Fund Balance
This action decreases the fund balance to offset adjustments recommended in this report.
344,989$
WASTEWATER TREATMENT FUND (526) SUBTOTAL 7,000,000$ 7,000,000$
WATER FUND (522)
Capital Capital Improvement Project Adjustments ‐$ (254,575)$
Utilities Transfer to the University Avenue Parking Permit Fund
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action increases the transfer from the Water Fund to the University Avenue Fund. In order
to fully fund parking initiatives in respective funds, various increases to the costs of parking
permits were recommended. In the University Avenue Fund, employee parking permit prices
were recommended to increase from $466.00 to $730.00 per year, an increase of $264.00. The
Water Fund transfers funds to the University Avenue Fund each year to provide parking permits
for City staff; this increase represents the marginal costs associated with the increase in permit
costs for City staff permits.
3,356$
Utilities Storm Drain Ballot Measure Rate Change
This action appropriates the expenses associated with the marginal increase to Storm Drain
rates as a result of the passage of the Storm Drain Ballot Measure. More information can be
found in the Storm Drain section of this document.
61$
Fund Balance Adjustment to Fund Balance
This action decreases the fund balance to offset adjustments recommended in this report.
251,158$
WATER FUND (522) SUBTOTAL ‐$ ‐$
Attachment A, Exhibit 2 Page 9
Department Adjustment Adjustment
INTERNAL SERVICE FUNDS
GENERAL LIABILITY FUND (689)
General Liability Buena Vista Mobile Home Park
This action appropriates funding necessary to resolve and settle Buena Vista MHP Residents
Association v. City of Palo Alto, Santa Clara County Superior Court Case No. 2015‐1‐CV‐284763.
As discussed in the Special Revenue Fund section of this document, the City is partnering with
Santa Clara County to assist the Housing Authority of the County of Santa Clara (HACSC) to
acquire, improve, and operate the Buena Vista Mobile Home Park, according to the terms of a
purchase agreement reached in May 2017 between HACSC and the Buena Vista Mobile Home
Park owner. The funds are a compromise settlement of a claim for attorneys' fees from the
Residents Association.
375,000$
Fund Balance Adjustment to Fund Balance
This action decreases the fund balance to offset the net changes resulting from the actions
recommended in this report.
(375,000)$
GENERAL LIABILITY FUND (689) SUBTOTAL ‐$ ‐$
INFORMATION TECHNOLOGY FUND (682)
Information
Technology
Transfer to the University Avenue Parking Permit Fund
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action increases the transfer from the Information Technology Fund to the University
Avenue Fund. In order to fully fund parking initiatives in respective funds, various increases to
the costs of parking permits were recommended. In the University Avenue Fund, employee
parking permit prices were recommended to increase from $466.00 to $730.00 per year, an
increase of $264.00. The Information Technology Fund transfers funds to the University Avenue
Fund each year to provide parking permits for City staff; this increase represents the marginal
costs associated with the increase in permit costs for City staff permits.
7,656$
Fund Balance Adjustment to Fund Balance
This action decreases the fund balance to offset the net changes resulting from the actions
recommended in this report.
(7,656)$
INFORMATION TECHNOLOGY FUND (682) SUBTOTAL ‐$ ‐$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
Attachment A, Exhibit 2 Page 10
Department Adjustment Adjustment
INTERNAL SERVICE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
VEHICLE REPLACEMENT & MAINTENANCE FUND (681)
Capital Capital Improvement Project Adjustments
This action reflects the combined impact from adjustments to projects as outlined in
Attachment A, Exhibit 2, excluding the adjustment to VR‐18000, which is detailed in greater
length below.
‐$ 400,000$
Public Works Reduce Vehicle and Maintenance Replacement Fund
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action reduces the General Fund's contribution to the Vehicle Fund for vehicle replacement
by $50,000. A corresponding reduction to the scheduled vehicle and equipment replacement
capital project for FY 2018 (VR‐18000) will remove a $50,000 forklift from the list of vehicles to
be replaced in FY 2018, as detailed in Attachment A Exhibit 2. This action was recommended in
part to help balance the General Fund.
(50,000)$ (50,000)$
Fund Balance Adjustment to Fund Balance
This action decreases the fund balance to offset the net changes resulting from the actions
recommended in this report.
(300,000)$
VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL (50,000)$ (50,000)$
Attachment A, Exhibit 2 Page 11
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
BELOW MARKET RATE FUND (230)
Planning &
Community
Environment
Below Market Rate Housing Contract
Consistent with staff recommended changes approved by Finance Committee on May 18th,
2017, this actions increases contract service funding necessary for Palo Alto Housing
Corporation (PAHC) oversight of the City's Below Market Rate (BMR) housing program.
Activities performed include administering the sale and re‐sale of new and existing BMR owner
units, maintaining the home purchase waiting list, monitoring occupancy of BMR rental units,
providing advice and consultation to the City regarding negotiations of BMR agreements with
developers, and addressing special issues related to the program as a whole.
137,000$
Fund Balance Ending Fund Balance
This action decreases the fund balance to offset the actions recommended in this report.
(137,000)$
BELOW MARKET RATE FUND (230) SUBTOTAL ‐$ ‐$
CALIFORNIA AVENUE PARKING PERMITS FUND (237)
Planning &
Community
Environment
California Avenue Parking Permit Revenue Alignment
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action increases the revenue estimates for the California Avenue Fund. In order to fully
fund parking initiatives in respective funds, various increases to the costs of parking permits
were recommended. In the California Avenue Fund, employee permits in lots and garages are
recommended to increase from $149.00 to $365.00 per year, an increase of $216.00. This
increase will ensure sufficient resources are available in the California Avenue Fund for various
initiatives and minimize the General Fund subsidy.
100,000$
Planning &
Community
Environment
Storm Drain Ballot Measure Rate Change
This action appropriates the expenses associated with the marginal increase to Storm Drain
rates as a result of the passage of the Storm Drain Ballot Measure. More information can be
found in the Storm Drain section of this document.
136$
Planning &
Community
Environment
Transfer to California Avenue Fund from General Fund
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action eliminates a transfer from the General Fund to the California Avenue Fund. In order
to fully fund parking initiatives in respective funds, various increases to the costs of parking
permits were recommended. In the California Avenue Fund, employee permits in lots and
garages are recommended to increase from $149.00 to $365.00 per year, an increase of
$216.00. The permit cost increase will ensure sufficient resources are available in the California
Avenue Fund for various initiatives and minimize the General Fund subsidy.
(75,000)$
Fund Balance Ending Fund Balance
This action increases the fund balance to offset the actions recommended in this report.
24,864$
CALIFORNIA AVENUE PARKING PERMITS FUND (237) SUBTOTAL 25,000$ 25,000$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
Attachment A, Exhibit 2 Page 12
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
HOUSING IN‐LIEU/COMMERCIAL FUND (234)
Planning &
Community
Environment
Buena Vista Mobile Home Park
This action appropriates funding necessary for the City to complete its payment commitment to
resolve matters related to the Buena Vista Mobile Home Park (BVMHP) anticipated to occur in
Fiscal Year 2018. In June 2015, the City Council set aside a total of $14.5 million in the
Residential and Commercial Housing In‐Lieu Fund reserves for the purpose of preserving
affordable housing at BVMHP. In June 2016, the Council approved a Memorandum of
Understanding with Santa Clara County and the Housing Authority of the County of Santa Clara
(HACSC), where the City and County committed to provide $14.5 million each to assist HACSC
to acquire and improve BVMHP and operate it as an affordable mobile home park for up to 50
years. In May 2017, HACSC and the private‐party owner of BVMHP entered into a purchase and
sale agreement. The transaction is expected to close in September 2017, pending division of a
portion of the property fronting El Camino Real and approval of a regulatory and funding
agreement between the City, County and HACSC.
7,700,000$
Fund Balance
Ending Fund Balance
This action decreases the fund balance to offset the actions recommended in this report.
(7,700,000)$
HOUSING IN‐LIEU/COMMERCIAL FUND (234) SUBTOTAL ‐$ ‐$
HOUSING IN‐LIEU/RESIDENTIAL FUND (233)
Planning &
Community
Environment
Buena Vista Mobile Home Park
This action appropriates funding necessary for the City to complete its payment commitment to
resolve matters related to the Buena Vista Mobile Home Park (BVMHP) anticipated to occur in
Fiscal Year 2018. In June 2015, the City Council set aside a total of $14.5 million in the
Residential and Commercial Housing In‐Lieu Fund reserves for the purpose of preserving
affordable housing at BVMHP. In June 2016, the Council approved a Memorandum of
Understanding with Santa Clara County and the Housing Authority of the County of Santa Clara
(HACSC), where the City and County committed to provide $14.5 million each to assist HACSC
to acquire and improve BVMHP and operate it as an affordable mobile home park for up to 50
years. In May 2017, HACSC and the private‐party owner of BVMHP entered into a purchase and
sale agreement. The transaction is expected to close in September 2017, pending division of a
portion of the property fronting El Camino Real and approval of a regulatory and funding
agreement between the City, County and HACSC.
6,800,000$
Fund Balance Ending Fund Balance
This action decreases the fund balance to offset the actions recommended in this report.
(6,800,000)$
HOUSING IN‐LIEU/RESIDENTIAL FUND (233) SUBTOTAL ‐$ ‐$
Attachment A, Exhibit 2 Page 13
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
RESIDENTIAL PERFERRED PARKING (RPP) FUND (239)
Planning &
Community
Environment
Parking Permit Revenue Alignment
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action increases the estimate for revenue from RPP parking permit sales. In order to align
prices with Downtown and California Avenue garages and remove the incentive for employees
to park in neighborhoods, full price Employee Parking Permits in the Downtown district RPP will
increase from $466.00 to $730.00 per year, an increase of $264.00 or 57%. Full price Employee
RPP permits in the Evergreen Park/Mayfield district will increase from $149.00 to $365.00 per
year, representing increases of $216.00 or 145%, though these fees will not go into effect until
the program pilot period ends on March 31, 2018 (per Resolution No. 9663). Additionally, the
resident Residential Parking Permit prices in all districts are recommended to change from a
range between $40.00 ‐ $100.00 to $50.00 per year, representing a percentage change
between a reduction of 50% to an increase of 20%. The net impact of this action is an increase
in revenue estimates of $106,000 in the Downtown district and a reduction of $10,000 in the
Crescent Park district. As a result of the pilot period, no adjustments have been made to
revenue estimates in the Evergreen Park/Mayfield district. Price adjustments in this district will
be factored in Fiscal Year 2019 estimates.
96,000$
Fund Balance Ending Fund Balance
This action increases the fund balance to offset the actions recommended in this report.
96,000$
RESIDENTIAL PERFERRED PARKING (RPP) FUND (239) SUBTOTAL 96,000$ 96,000$
Attachment A, Exhibit 2 Page 14
Department Adjustment Adjustment
SPECIAL REVENUE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 PROPOSED BUDGET
Revenues Expenses
ATTACHMENT A, EXHIBIT 2
UNIVERSITY AVENUE PARKING PERMITS FUND (236)
Planning &
Community
Environment
Parking Permit Revenue Alignment
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this action increases the revenue estimate for parking permit sales. In order to ensure
sufficient funding of parking initiatives and to support the recommendation to increase
Transportation Management Authority (TMA) funding, discussed in more detail in the following
transaction, the Employee Parking Permit rate is recommended to increase from $466.00
to730.00, an increase of $264.00 or 57%. Also recognized as part of this transaction is an
increase in transfers from the General Fund ($97,944) and Information Technology and Utilities
Funds ($25,080) for the purchase of Employee Parking Permits provided to City staff.
565,524$
Planning &
Community
Environment
Transportation Management Authority (TMA)
Consistent with the Finance Committee recommended revisions approved on May 18th, 2017,
this actions increases expenses by $345,000 for a total funding of $480,000 in Fiscal Year 2018
for TMA services. In accordance with the objective to reduce single occupancy vehicle (SOV)
rates, TMA estimates that the additional funding could shift up to 750 people to alternate
modes, thereby achieving a 14% reduction in SOV rates. This action is funded through
recommended increases in parking permit rates, thereby minimizing the General Fund subsidy
for this activity.
345,000$
Planning &
Community
Environment
Storm Drain Ballot Measure Rate Change
This action appropriates the expenses associated with the marginal increase to Storm Drain
rates as a result of the passage of the Storm Drain Ballot Measure. More information can be
found in the Storm Drain section of this document.
618$
Fund Balance Ending Fund Balance
This action increases the fund balance to offset the actions recommended in this report.
219,906$
UNIVERSITY AVENUE PARKING PERMITS FUND (236) SUBTOTAL 565,524$ 565,524$
Attachment A, Exhibit 2 Page 15
Project
Title Number Revenue Expense Comments
Airport Apron Reconstruction AP‐16000 $ 30,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Wildlife Hazard Plan AP‐16002 $ 15,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Total $ ‐ $ 45,000
Baylands Nature Interpretive Center
Exhibit Improvements
AC‐14001 $ 56,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Performing Arts Visual Venues Soft Goods
Replacement
AC‐17000 $ 55,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
JMZ Renovation AC‐18001 $ 706,000 Establish a Junior Museum and Zoo Renovation
Project and recommend an appropriation of
$706,000 to fund design and construction costs
associated with renovations at Cubberley. This
funding is offset by a reduction in FY 2019 funding
to the Rinconada Park Improvements Project (PE‐
08001).
Art in Public Spaces AC‐86017 $ (2,500) Adjust for reappropriation based on more up‐to‐
date current year estimates.
Open Space Trails and Amenities OS‐00001 $ 18,652 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Open Space Lakes and Pond Maintenance OS‐00002 $ (27,791) Adjust for reappropriation based on more up‐to‐
date current year estimates.
Off‐Road Pathway Resurfacing and Repair OS‐09001 $ 20,587 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Rinconada Library New Construction and
Improvements
PE‐11000 $ (15,389) Adjust for reappropriation based on more up‐to‐
date current year estimates.
Structural Assessment of City Bridges PE‐13012 $ 25,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Baylands Boardwalk Improvements PE‐14018 $ (22,199) Adjust for reappropriation based on more up‐to‐
date current year estimates.
Fire Station 3 Replacement PE‐15003 $ 55,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Mitchell Park Adobe Creek Bridge
Replacement
PE‐17000 $ (2,994) Adjust for reappropriation based on more up‐to‐
date current year estimates.
City Hall Floor 4 Remodel PE‐17008 $ (9,573) Adjust for reappropriation based on more up‐to‐
date current year estimates.
City Hall Floor 5 Remodel PE‐17009 $ (7,019) Adjust for reappropriation based on more up‐to‐
date current year estimates.
New California Avenue Area Parking
Garage
PE‐18000 $ (38,264) Adjust for reappropriation based on more up‐to‐
date current year estimates.
Building System Improvements PF‐01003 $ 100,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Facility Interior Finishes Replacements PF‐02022 $ 40,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Americans with Disabilities Act
Compliance
PF‐93009 $ (1,163) Adjust for reappropriation based on more up‐to‐
date current year estimates.
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 CAPITAL IMPROVEMENT PROGRAM
AIRPORT FUND
CAPITAL IMPROVEMENT FUND
Attachment A, Exhibit 2 Page 16
Project
Title Number Revenue Expense Comments
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 CAPITAL IMPROVEMENT PROGRAM
Tennis and Basketball Court Resurfacing PG‐06001 $ 89,039 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Benches, Signage, Walkways, Perimeter
Landscaping
PG‐06003 $ 1,172 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Stanford/Palo Alto Playing Fields Soccer
Turf Replacement
PG‐13001 $ 502,139 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Golf Reconfiguration & Baylands Athletic
Center Improvements
PG‐13003 $ 53,991 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Buckeye Creek Hyrology Study PG‐15000 $ (2,095) Adjust for reappropriation based on more up‐to‐
date current year estimates.
Midtown Connector PL‐14001 $ 53,120 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Residential Preferential Parking PL‐15003 $ 40,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Downtown Parking Wayfinding PL‐15004 $ 300,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Total $ ‐ $ 1,986,713
Utility Fund Capital Corrections Multiple
Projects
$ (5,856,030)As discussed in the Budget Wrap‐Up memorandum
submitted to the Finance Committee on May 18,
2017, the "Capital Improvement" expense
category was inadvertently overstaed in the Utility
Funds. This action corrects the budget to reflect
the lower level of expenses anticipated in FY 2018.
SCADA System Upgrades EL‐02010 $ 59,196 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Electric Utility Geographic Information
System
EL‐02011 $ (63,663) Adjust for reappropriation based on more up‐to‐
date current year estimates.
Utility Site Security Improvements EL‐04012 $ 15,613 Adjust for reappropriation based on more up‐to‐
date current year estimates.
230 Kv Electric Intertie EL‐06001 $ 14,255 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Rebuild Underground District 24 EL‐10006 $ 277,087 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Rebuild Underground District 15 EL‐11003 $ 30,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Underground District 47 ‐ Middlefield,
Homer, Webster, Addison
EL‐11010 $ 476,976 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Smart Grid Technology Installation EL‐11014 $ (521,766) Adjust for reappropriation based on more up‐to‐
date current year estimates.
Underground District 46 ‐ Charleston/El
Camino Real
EL‐12001 $ (497,480) Adjust for reappropriation based on more up‐to‐
date current year estimates.
Underground Distribution System
Security
EL‐13007 $ 290,534 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Colorado/Hopkins System Improvement EL‐15000 $ 50,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Capacitor Bank Installation EL‐16002 $ 350,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
East Meadows Circles 4/12Kv Conversion EL‐17001 $ 50,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
ELECTRIC FUND
Attachment A, Exhibit 2 Page 17
Project
Title Number Revenue Expense Comments
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 CAPITAL IMPROVEMENT PROGRAM
HCB Pilot Wire Relay Replacement EL‐17005 $ 107,559 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Facility Relocation for Caltrain
Modernization Project
EL‐17007 $ 150,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Communications System Improvements EL‐89031 $ (137,446) Adjust for reappropriation based on more up‐to‐
date current year estimates.
Substation Protection Improvements EL‐89038 $ 200,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Substation Facility Improvements El‐89044 $ 100,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Total $ ‐ $ (4,905,165)
Utility Fund Capital Corrections Multiple
Projects
$ (166,370)As discussed in the Budget Wrap‐Up memorandum
submitted to the Finance Committee on May 18,
2017, the "Capital Improvement" expense
category was inadvertently overstaed in the Utility
Funds. This action corrects the budget to reflect
the lower level of expenses anticipated in FY 2018.
Total $ ‐ $ (166,370)
Utility Fund Capital Corrections Multiple
Projects
$ (2,666,977)As discussed in the Budget Wrap‐Up memorandum
submitted to the Finance Committee on May 18,
2017, the "Capital Improvement" expense
category was inadvertently overstaed in the Utility
Funds. This action corrects the budget to reflect
the lower level of expenses anticipated in FY 2018.
Gas Distribution System Improvements GS‐11002 $ 241,178 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Gas Main Replacement ‐ Project 22 GS‐12001 $ 3,254,782 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Total $ ‐ $ 828,983
Storm Drain System Replacement and
Rehabilitation
SD‐06101 $ ‐ $ 450,000 Continue funding for SD‐06101 for Storm Drain
System Replacement and Rehabilitation.
Total $ ‐ $ 450,000
Scheduled Vehicle and Equipment
Replacement ‐ Fiscal Year 2015
VR‐15000 $ 50,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Scheduled Vehicle and Equipment
Replacement ‐ Fiscal Year 2016
VR‐16000 $ 150,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Scheduled Vehicle and Equipment
Replacement ‐ Fiscal Year 2017
VR‐17000 $ 200,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Scheduled Vehicle and Equipment
Replacement ‐ Fiscal Year 2018
VR‐18000 $ (50,000) Consistent with Finance Committee's
recommended revisions to the FY 2018 Budget
approved on May 18th, 2017, adjust for reduction
of Electric Forklift.
Total $ ‐ $ 350,000
GAS FUND
VEHICLE REPLACEMENT FUND
STORM DRAIN FUND
FIBER OPTICS FUND
Attachment A, Exhibit 2 Page 18
Project
Title Number Revenue Expense Comments
ATTACHMENT A, EXHIBIT 2
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2018 CAPITAL IMPROVEMENT PROGRAM
Utility Fund Capital Corrections Multiple
Projects
$ (2,155,768)As discussed in the Budget Wrap‐Up memorandum
submitted to the Finance Committee on May 18,
2017, the "Capital Improvement" expense
category was inadvertently overstaed in the Utility
Funds. This action corrects the budget to reflect
the lower level of expenses anticipated in FY 2018.
Wastewater Collection System
Rehabilitation/Augmentation Project 27
WC‐14001 $ 97,440 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Wastewater Collection System
Rehabilitation/Augmentation Project 28
WC‐15001 $ 351,300 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Total $ ‐ $ (1,707,028)
New Dewatering and Loadout Facility WQ‐14001 $ 7,000,000 $ 7,000,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Total $ 7,000,000 $ 7,000,000
Utility Fund Capital Corrections Multiple
Projects
$ (1,395,292)As discussed in the Budget Wrap‐Up memorandum
submitted to the Finance Committee on May 18,
2017, the "Capital Improvement" expense
category was inadvertently overstaed in the Utility
Funds. This action corrects the budget to reflect
the lower level of expenses anticipated in FY 2018.
Water Main Replacement ‐ Project 26 WS‐12001 $ 1,143,000 Adjust for reappropriation based on more up‐to‐
date current year estimates.
Seismic Water System Upgrades WS‐09000 $ (2,283) Adjust for reappropriation based on more up‐to‐
date current year estimates.
Total $ ‐ $ (254,575)
$ 7,000,000 $ 3,627,558 TOTAL CIP ADJUSTMENTS
WASTEWATER COLLECTION FUND
WASTEWATER TREATMENT FUND
WATER FUND
Attachment A, Exhibit 2 Page 19
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
New Fees
Department Fee Title Justification
Administrative Services Duplicate Receipt New fee to recover costs of Revenue Collections staff time for processing duplicate
receipt requests.
Community Services Additional Key New fee to recover costs of providing additional keys to lease holders at the
Cubberley Community Center.
Community Serivces Corporate Package (Add‐on Only)
Fee created, in response to customer demand, to consolidate and offer commonly
rented equipment, such as audiovisual equipment, tables, chairs, as a single package
at a discounted rate instead of having to rent each item separately.
Resident Rate Non‐Resident Rate
$3,800.00 $4,400.00
Community Serivces Portable Dance Floor New fee to charge for setting up and installing a portable dance floor for meetings or
special events.
Development Services Technology Surcharge New surcharge to recover costs associated with a new technical support service
contract for the City's permit software platform.
Library 3‐D Printing New fee to recover some of the costs associated with providing this service, including
costs for materials and staff time maintaining and troubleshooting printers.
Planning & Community
Environment College Terrace RPP ‐ Daily Resident Parking Permit
Establishes a separate "Day Use Permit" for residents in the College Terrace RPP
district. Previously, all "Day Use Permits" were authorized under the global fee titled
"Residential ‐ Day Use Permit". This "new" fee is intended to bring clarity to
individual RPP districts and all the fees that apply.
Planning & Community
Environment
Crescent Park NOP RPP ‐ Annual Resident Parking
Permit
Consistent with the Finance Committee recommended revisions approved on May
18th, 2017, Annual Resident Parking Permits in RPP districts are recommended to be
standardized throughout program at $50.00 per year. This replaces the fee titled
"Residential ‐ Other (Trial)" to specify Crescent Park, remove the trial period language,
and reduce the price from $100.00 per year. Crescent Park is a No Overnight Parking
(NOP) program, where permits for day use do not apply.
Planning & Community
Environment
Crescent Park NOP RPP ‐ Daily Resident Parking
Permit
Establishes a separate "Day Use Permit" for residents in the Crescent Park RPP
district. Previously, all "Day Use Permits" were authorized under the global fee titled
"Residential ‐ Day Use Permit". This "new" fee is intended to bring clarity to
individual RPP districts and all the fees that apply. Crescent Park is a No Overnight
Parking (NOP) program, where permits for day use do not apply.
Planning & Community
Environment Downtown RPP ‐ Daily Resident Parking Permit
Establishes a separate "Day Use Permit" for residents in the Downtown RPP district.
Previously, all "Day Use Permits" were authorized under the global fee titled
"Residential ‐ Day Use Permit". This "new" fee is intended to bring clarity to
individual RPP districts and all the fees that apply.
FY 2018 Proposed Fee
$125.00 each
1.8% of each transaction
$6.00 each
$15.00 each
$150.00 to $250.00 per rental
Community Serivces
$2.00 to $5.00 each
Package Rental ‐ Exclusive Use (Saturday 2:00 PM to
Midnight)
Fee created to offer an option for an exclusive 10‐hour Saturday rental at the Lucie
Stern Community Room and Patio area at a discounted rate.
$50.00 per year
$5.00 per day
$5.00 per day
$5.00 per night
Attachment A, Exhibit 3, Page 1
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
New Fees
Department Fee Title Justification
Planning & Community
Environment
Evergreen Park ‐ Mayfield RPP ‐ Annual Resident
Parking Permit
New fee effective at the sunset of the Evergreen Park ‐ Mayfield RPP District
Resolution #9663 on March 31, 2018. This fee was previously approved in this
resolution as "Resident Permit" at $50.00 per year for the duration of the pilot period,
ending on March 31, 2018. Consistent with the Finance Committee recommended
revisions approved on May 18th to standardize Annual Resident permits throughout
the RPP program at $50.00 per year, this fee will remain unchanged at the end of the
pilot period.
Planning & Community
Environment
Evergreen Park ‐ Mayfield RPP ‐ Daily Resident
Parking Permit
New fee effective at the sunset of the Evergreen Park ‐ Mayfield RPP District
Resolution #9663 on March 31, 2018. This fee was previously approved in this
resolution as "Resident Visitor Daily Permit" at $5.00 per year for the duration of the
pilot period, ending on March 31, 2018. The fee is not proposed to increase after the
pilot period.
Planning & Community
Environment
Evergreen Park ‐ Mayfield RPP ‐ Daily Employee
Parking Permit
New fee effective at the sunset of the Evergreen Park ‐ Mayfield RPP District
Resolution #9663 on March 31, 2018. This fee was previously approved in this
resolution as "Employee Visitor Daily Permit" at $5.00 per day for the duration of the
pilot period. The increased rate is intended to match the rate charged at garages,
removing the incentive for employees to park in neighborhoods.
Planning & Community
Environment
Evergreen Park ‐ Mayfield RPP ‐ Full Price Employee
Parking Permit
New fee effective at the sunset of the Evergreen Park ‐ Mayfield RPP District
Resolution #9663 on March 31, 2018. This fee was previously approved in this
resolution as "Standard Annual Permit" at $149.00 per year for the duration of the
pilot period. Consistent with the Finance Committee recommended revisions
approved on May 18th, 2017, Full Price Employee RPP Parking Permits are aligned to
the same price as garages, removing the incentive for employees to park in
neighborhoods. A six month period is recommended rather than an annual amount
due to employee turnover.
Planning & Community
Environment
Evergreen Park ‐ Mayfield RPP ‐ Reduced Price
Employee Parking Permit
New fee effective at the sunset of the Evergreen Park ‐ Mayfield RPP District
Resolution #9663 on March 31, 2018. This fee was previously approved in this
resolution as "Low‐income Annual Permit" at $50.00 per year for the duration of the
pilot period. The rate is not proposed to change at the end of the pilot period, though
a six month period is recommended rather than an annual amount due to employee
turnover.
Planning & Community
Environment Parking Space Closure
New fee for activities that close a parking space to the public. The recent parking
study recommends that the City ensure that the price of a closed/rented permit space
correlates to on‐street paid parking rates. If this space is no longer available to the
public, the City loses parking inventory and any associated revenue.
Planning & Community
Environment
Residential Parking Permit ‐ Temporary Work
Parking Permit
New fee under the Construction Permits category and will be charged at the
Development Center to recover the impact of parking by work vehicles.
$25.00 per space
$50.00 per year (after pilot ending 3/31/2018)
FY 2018 Proposed Fee
$100.00 per month
$5.00 per day (after pilot ending 3/31/2018)
$25.00 per six months (after pilot ending 3/31/2018)
$182.50 per six months (after pilot ending 3/31/2018)
$25.00 per day (after pilot ending 3/31/2018)
Attachment A, Exhibit 3, Page 2
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
New Fees
Department Fee Title Justification
Public Works Electric Vehicle Charging New fee to recover the City's cost to administer electric vehicle charging stations.
Public Works Electric Vehicle Charger Connection New fee to charge a baseline fee for connection to any electric vehicle charging
station in the City.
Public Works Electric Vehicle Charger Connection Overstay New fee to charge for overstay after charging has been completed to allow for more
frequent turnover and availability of charging stations.
Public Works Traffic Property Damage Fee created to recover costs associated with repairing or replacing a damaged traffic
property.$115.00 per hour
$0.23 per kilowatt hour
$0.00 to $2.00 per connection
$0.00 to $5.00 per hour
FY 2018 Proposed Fee
Attachment A, Exhibit 3, Page 3
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
Deleted Fees
Department Fee Title Justification
Community Services Field Inspector Fee There is no longer a demand for this service.
Community Services Playground Inspection Fee There is no longer a demand for this service.
Community Services Damage and Cleaning Deposit This is a duplicate fee.
Resident Rate Non‐Resident Rate
$4.00 per day $6.00 per day
Resident Rate Non‐Resident Rate
$27.00 per use $40.50 per use
Resident Rate Non‐Resident Rate
$4.00 per day $6.00 per day
Planning & Community
Environment 800 High Street ‐ Parking Permit Individual garage and lot fees have been consolidated into one "Downtown Garages and
Lots" parking fee.
Planning & Community
Environment
California Avenue Business District All Lots ‐
Transferable Permit
The FY17 Municipal Fee schedule listed two types of Quarterly permits for Downtown and
California Avenue lots and garages, at the same price: Transferable Permits and Permits.
The proposed change removals all quarterly permit entries in favor of annual permits with
a note that reads that quarterly and six month permits will be prorated based on the
annual permit fee.
Planning & Community
Environment College Terrace ‐ Guest Permit
This permit has been consolidated into the existing Annual Resident permit, proposed title
"Annual Resident/Annual Guest Permit". Consistent with other RPP programs, daily
permits may be purchased for residents or guests.
Planning & Community
Environment College Terrace ‐ Lost Guest Permit This fee is recommended for deletion because it is duplicative. The College Terrace Guest
Permit and Annual Permit are the same price.
Planning & Community
Environment
Downtown RPP ‐ Annual Guest Permit for
Residents
This fee is recommended for deletion. Guest permits are not part of the Dowtown RPP
program. Daily permits may be purchased for residents or guests.
Planning & Community
Environment Downtown RPP ‐ Five‐day Employee Guest Permit This fee is recommended for deletion. Five day employee guest permits are not part of
the Downtown RPP program.
Planning & Community
Environment Downtown RPP ‐ Visitor Permit This fee is recommended for deletion, consistent with RPP programs. Daily permits may
be purchased for residents or guests.
FY 2017 Adopted Fee
$83.00 per hour
$162.00 per inspection
$150.00 ‐ $2,000.00 depending upon event size
Community Services Gymnastics Mat
EaselCommunity Services
$146.60 per quarter; $466.00 per year
$49.50 per quarter
CSD is proposing to include this in the basic rental price.
CSD no longer has any gymnastics mat available for rent.
Community Services Personal Flotation Device (Foothills Park Only)This fee is no longer necessary as all canoe rentals already include life vests for all users
for safety purposes.
$40.00 per permit
$40.00 per permit
$50.00 per annual permit
$15.00 per 5 day period in the same week
$5.00 each for 24 hour period, 50 max per year
Attachment A, Exhibit 3, Page 4
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
Changed Fees
Community Services
Fee Title Justification
Residents Non‐Residents Residents Non‐Residents Residents
Non‐
Residents
Aquatics ‐ C. Adult (18 and Over)$4.00 ‐ $6.00 per
person
$5.00 ‐ $9.00 per
person $4.00 ‐ $7.00 per person $5.00 ‐ $9.00 per
person 16.7% No Change Fee range increase from $4.00‐$6.00 per person to $4.00‐$7.00 per person for
Residents to align with market value.
Aquatics ‐ D. Lap Swimming $4.00 ‐ $6.00 per
person
$4.00 ‐ $6.00 per
person $4.00 ‐ $7.00 per person $4.00 ‐ $9.00 per
person 16.7% 50.0%
Fee range increase from $4.00‐$6.00 per person to $4.00‐$7.00 per person for
Residents and from $4.00‐$6.00 to $4.00‐$9.00 for Non‐Residents to align with market
value.
Art Center ‐ Auditorium $145.00 per hour $219.00 per hour $154.00 per hour $232.00 per hour 6.2% 5.9%
Fee increase from $145.00 to $154.00 per hour for Residents and from $219.00 to
$232.00 per hour for Non‐Residents to align with market value.
Foothills Park ‐ A. Oak Grove
Picnic 1 ‐ 50 People $75.00 per group Not Available $80.00 per group Not Available 6.7% N/A Fee increase from $75.00 per group to $80.00 per group to align with market value.
Foothills Park ‐ B. Oak Grove
Picnic 51 ‐ 100 People $149.00 per group Not Available $158.00 per group Not Available 6.0% N/A Fee increase from $149.00 per group to $158.00 per group to align with market value.
Art Center ‐ Historic Courtyard $89.00 per hour $133.00 per hour $94.00 per hour $141.00 per hour 10.1% 6.0%
Fee increase from $89.00 to $94.00 per hour for Residents and from $133.00 to $141.00
per hour for Non‐Residents to align with market value.
Art Center ‐ Meeting Room $89.00 per hour $133.00 per hour $98.00 per hour $147.00 per hour 10.1% 10.5%
Fee increase from $89.00 to $98.00 per hour for Residents and from $133.00 to $147.00
per hour to align with market value.
Palo Alto Swim Club and Palo
Alto Masters Swim Club
$4.00 ‐ $6.00 per hour
per lane; $55.00 ‐
$75.00 per hour for all
lanes
Not Available
$4.00 ‐ $15.00 per hour
per lane; $55.00 ‐
$210.00 per hour for all
lanes
Not Available 150.0% N/A
Increase upper range from $6.00 to $15.00 per hour per lane and $75.00 to $210.00 per
hour for all lanes to align with market value.
Peers Park, Mitchell Park Field
House $23.00 per hour Not Available $24.50 per hour Not Available 6.5% N/A Fee increase from $23.00 per hour to $24.50 per hour to align with market value.
Picnic Reservations (1 ‐ 15
people)$17.00 per group $21.00 per group $25.00 per group $30.00 per group 47.1% 42.9%
Fee increase from $17.00 to $25.00 per group for Residents and $21.00 to $30.00 per
group for Non‐Residents.
Golf Course ‐ Senior 10 Play
Discount Card (60 and Older) ‐
Weekdays
$235.00 ‐ $259.00 per
player
$299.00 ‐ $329.00 per
player
$235.00 ‐ $337.00 per
player
$299.00 ‐ $428.00
per player 30.1% 30.1%
Increase of upper range by 30% due to potential increase in operating cost of new golf
course.
Golf Course ‐ Senior Monthly
Play Discount Card (60 and Over)
$125.00 ‐ $135.00 per
player Not Available $125.00 ‐ $176.00 per
player Not Available 30.4% N/A
Increase of upper range by 30% due to potential increase in operating cost of new golf
course.
Golf Course ‐ Student 10 Play
Discount Card (21 and Under)
$199.00 ‐ $219.00 per
player Not Available $199.00 ‐ $285.00 per
player Not Available 30.1% N/A
Increase of upper range by 30% due to potential increase in operating cost of new golf
course.
Golf Course ‐ Student Annual
Play Card
$999.00 ‐ $1,099.00
per player Not Available $999.00 ‐ $1,429.00 per
player Not Available 30.0% N/A
Increase of upper range by 30% due to potential increase in operating cost of new golf
course.
Golf Course ‐ Student Weekday
Unlimited Play
$105.00 ‐ $115.00 per
player Not Available $105.00 ‐ $150.00 per
player Not Available 30.4% N/A
Increase of upper range by 30% due to potential increase in operating cost of new golf
course.
% Change2017 Adopted 2018 Proposed
Attachment A, Exhibit 3, Page 5
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
Changed Fees
Community Services
Fee Title Justification
Regular Time Overtime & Holiday Regular Time Overtime & Holiday Regular Time
Overtime &
Holiday
Custodial Staff $30.00 per hour $45.00 per hour $37.00 per hour $53.00 per hour 23.3% 17.8%
Fee increase from $30.00 to $37.00 per hour for Residents and from $45.00 to $53.00
per hour to align with market value.
Facility Attendant and/or
Assistant $33.00 per hour $49.00 per hour $37.00 per hour $56.00 per hour 12.1% 14.3%
Fee increase from $33.00 to $37.00 per hour for Residents and from $49.00 to $56.00
per hour for Overtime/Holidays to align with market value.
Lifeguard $23.00 per hour $35.00 per hour $25.00 per hour $38.00 per hour 8.7% 8.6%
Fee increase from $23.00 to $25.00 per hour for Residents and $35.00 to $38.00 per
hour for Non‐Residents to align with market value.
Palo Alto Junior Museum & Zoo
Attendant $31.00 per hour $47.00 per hour $33.00 per hour $50.00 per hour 6.5% 6.4%
Fee increase from $31.00 to $33.00 per hour for Residents and $47.00 to $50.00 per
hour for Non‐Residents to align with market value.
Fee Title Justification
Basic Non‐Profit Basic Non‐Profit Basic Non‐Profit
Cubberley ‐ Amphitheater
(Grass)$25.00 per hour $20.00 per hour $27.00 per hour $21.00 per hour 8.0% 5.0%
Fee increase from $25.00 to $27.00 per hour for Basic Rate and from $20.00 to $21.00
per hour for Non‐Profit Rate to align with market value.
Cubberley ‐ Auditorium (Includes
Kitchen)$95.00 per hour $59.00 per hour $101.00 per hour $63.00 per hour 6.3% 6.8%
Fee increase from $95.00 to $101.00 per hour for Basic Rate and from $59.00 to $63.00
per hour for Non‐Profit Rate to align with market value.
Cubberley Theater Rentals ‐ A.
Performance Day Package $1,400.00 each $980.00 each $1,500.00 each $1050.00 each 7.1% 7.1%
Fee increase from $1400.00 to $1500.00 each for Basic Rate and from $980.00 to
$1050.00 each for Non‐Profit Rate to align with market value.
Cubberley Theater Rentals ‐ K.
Additional Performance $350.00 each $245.00 each $375.00 each $262.00 each 7.1% 6.9%
Fee increase from $350.00 to $375.00 each for Basic Rate and from $245.00 to $262.00
each for Non‐Profit Rate to align with market value.
Cubberley ‐ Dance Studio $41.00 per hour $36.00 per hour $44.00 per hour $38.00 per hour 7.3% 5.6%
Fee increase from $41.00 to $44.00 per hour for Basic Rate and from $36.00 to $38.00
per hour for Non‐Profit Rate to align with market value.
Cubberley ‐ Gym B $93.00 per hour $63.00 per hour $99.00 per hour $67.00 per hour 6.5% 6.3%
Fee Increase from $93.00 to $99.00 per hour for Basic Rate and from $63.00 to $67.00
per hour for Non‐Profit Rate to align with market value.
Cubberley ‐ Meeting Room ‐
Large (2,000 ‐ 4,000 sq. ft.)$66.00 per hour $52.00 per hour $70.00 per hour $55.00 per hour 6.1% 5.8%
Fee increase from $66.00 to $70.00 per hour for Basic Rate and from $52.00 to $55.00
per hour for Non‐Profit Rate to align with market value.
Cubberley ‐ Meeting Room ‐
Small (Less than 1,000 sq. ft.)$33.00 per hour $26.00 per hour $35.00 per hour $28.00 per hour 6.1% 7.7%
Fee increase from $33.00 to $35.00 per hour for Basic Rate and from $26.00 to $28.00
per hour for Non‐Profit Rate to align with market value.
Cubberley ‐ Pavilion $122.00 per hour $95.00 per hour $129.00 per hour $101.00 per hour 5.7% 6.3%
Fee increase from $122.00 to $129.00 per hour for Basic Rate and from $95.00 to
$101.00 per hour for Non‐Profit Rate to align with market value.
% Change
% Change2017 Adopted 2018 Proposed
2017 Adopted 2017 Proposed
Attachment A, Exhibit 3, Page 6
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
Changed Fees
Community Services
Fee Title Justification
Weekday
Weekend / Prime
Time Weekday
Weekend / Prime‐
Time Weekday
Weekend /
Prime‐Time
Golf Course ‐ 9 Holes (When
Available)
$23.00 ‐ $25.00 per
player
$26.00 ‐ $29.00 per
player
$23.00 ‐ $33.00 per
player
$26.00 ‐ $38.00 per
player 32.0% 31.0%
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Daily Fee ‐ Non‐
Resident
$39.00 ‐ $44.00 per
player
$49.00 ‐ $54.00 per
player
$39.00 ‐ $57.00 per
player
$49.00 ‐ $70.00 per
player 29.5% 29.6%
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Daily Fee ‐ Resident $37.00 ‐ $42.00 per
player
$47.00 ‐ $52.00 per
player
$37.00 ‐ $55.00 per
player
$47.00 ‐ $67.00 per
player 31.0% 28.8%
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Junior (17 and
Under)
$12.00 ‐ $16.00 per
player
$15.00 ‐ $18.00 per
player
$12.00 ‐ $21.00 per
player
$15.00 ‐ $23.00 per
player 31.3% 27.8%
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Mid‐Day Rate (1
Hour Before Twilight)
$32.00 ‐ $35.00 per
player
$42.00 ‐ $46.00 per
player
$32.00 ‐ $46.00 per
player
$42.00 ‐ $60.00 per
player 31.4% 30.4%
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Northern CA Golf
Association Junior (NCGA Jr) Fee
$10.00 ‐ $12.00 per
player
$10.00 ‐ $12.00 per
player
$10.00 ‐ $16.00 per
player
$10.00 ‐ $16.00 per
player 33.3% 33.3%
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Senior ‐ Non‐
Resident (60 and Over)
$32.00 ‐ $35.00 per
player Not Available $32.00 ‐ $46.00 per
player Not Available 31.4% N/A
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Senior ‐ Resident
(60 and Over)
$27.00 ‐ $30.00 per
player Not Available $27.00 ‐ $39.00 per
player Not Available 30.0% N/A
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Shotgun Start
Tournaments
$59.00 ‐ $65.00 per
player
$70.00 ‐ $85.00 per
player
$59.00 ‐ $85.00 per
player
$70.00 ‐ $111.00 per
player 30.8% 30.6%
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Student (21 and
Under)
$26.00 ‐ $29.00 per
player
$29.00 ‐ $32.00 per
player
$26.00 ‐ $38.00 per
player
$29.00 ‐ $42.00 per
player 31.0% 31.3%
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Super Twilight
Rates
$24.00 ‐ $28.00 per
player
$26.00 ‐ $30.00 per
player
$24.00 ‐ $36.00 per
player
$26.00 ‐ $39.00 per
player 28.6% 30.0%
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Twilight Rates $28.00 ‐ $32.00 per
player
$33.00 ‐ $37.00 per
player
$28.00 ‐ $42.00 per
player
$33.00 ‐ $48.00 per
player 31.3% 29.7%
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
2017 Adopted 2018 Proposed % Change
Attachment A, Exhibit 3, Page 7
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
Changed Fees
Community Services
Fee Title Justification
Art Center ‐ Locker Rental ‐ Large Fee increase from $28.00 per season to $30.00 per season to align with market value.
Art Center ‐ Locker Rental ‐ Small Fee increase from $17.00 per season to $19.00 per season to align with market value.
Golf Course ‐ A. Small Bucket Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ B. Medium Bucket Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ C. Large Bucket Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ D. Jumbo Bucket Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ E. Medium Bucket
Card ‐ 10
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ F. Large Bucket
Card ‐ 10
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Hand Cart ‐ 18
Holes
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Hand Cart ‐ 9 Holes Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ League Reservation
Fee
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Off Premise Club
Rental ‐ 18 Holes
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Power Cart ‐ 18
Holes
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Power Cart ‐ 4
Bagger
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Power Cart ‐ 9
Holes
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Pro‐Line Clubs ‐ 18
Holes
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Pro‐Line Clubs ‐ 9
Holes
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Single Rider ‐ 18
Holes
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
Golf Course ‐ Tournament
Reservation Fee
Increase of upper range by approximately 30% due to potential increase in operating
cost of new golf course.
$4.00 ‐ $8.00 per rental
$2.00 ‐ $5.00 per rental
$15.00 ‐ $25.00 per rental
$13.00 ‐ $17.00 per rental
$28.00 ‐ $32.00 per rental
$19.00 ‐ $22.00 per rental
$13.00 ‐ $22.00 per rental ‐88.2%
31.6%
$1.00 ‐ $7.00 per player
31.8%
$250.00 ‐ $585.00 per team
$45.00 ‐ $72.00 per rental
$26.00 ‐ $48.00 per rental
$30.00 ‐ $44.00 per rental
$17.00 per season
$6.00 ‐ $12.00 per bucket
11.8%
$10.00 ‐ $14.00 per bucket $10.00 ‐ $18.00 per bucket 28.6%
$10.00 ‐ $16.00 per bucket
$19.00 per season
$3.00 ‐ $5.00 per bucket
$6.00 ‐ $9.00 per bucket
31.3%
$3.00 ‐ $7.00 per bucket
7.1%$30.00 per season
$250.00 ‐ $450.00 per team
$45.00 ‐ $55.00 per rental
$26.00 ‐ $37.00 per rental
$30.00 ‐ $34.00 per rental
$1.00 ‐ $5.00 per player
29.7%
30.9%
40.0%
$15.00 ‐ $19.00 per rental
$60.00 ‐ $80.00 per bucket $60.00 ‐ $104.00 per bucket 30.0%
$90.00 ‐ $143.00 per bucket
25.0%$4.00 ‐ $10.00 per rental
$90.00 ‐ $110.00 per bucket
% Change
30.0%
$10.00 ‐ $12.00 per bucket
30.0%
40.0%
$28.00 ‐ $42.00 per rental
$19.00 ‐ $29.00 per rental
2017 Adopted 20178 Proposed
40.0%
33.3%
33.3%
29.4%
$28.00 per season
$2.00 ‐ $7.00 per rental
Attachment A, Exhibit 3, Page 8
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
Changed Fees
Development Services ‐ Green Building Division
Fee Title Justification
Alterations and additions for
single and multifamily > 1,000 sq
ft
Fee adjusted from $1300.00 to $708.00 to realign the fee to full cost recovery.
Alterations and additions for
single family and multifamily <
1,000 sq ft and increases
conditioned space
Fee adjusted from $1158.00 to $429.00 to realign the fee to full cost recovery.
If the project is over $100,000
Energy Star is required after 12
months of occupancy
Fee adjusted from $737.00 to $140.00 to realign the fee to full cost recovery.
Landscape Inspection
Fee added to provide services and compliance with the Emergency Building Standards
for Outdoor Potable Water. Fee adjusted from $230.00 to $185.00 to realign the fee to
full cost recovery.
Landscape Plan Review ‐ Non‐
Residential & Multi‐Family
Fee added to provide services and compliance with the Emergency Building Standards
for Outdoor Potable Water. Fee adjusted from $1553.00 to $1886.00 to realign the fee
to full cost recovery.
Landscape Plan Review ‐ Single
Family Residential
Fee added to provide services and compliance with the Emergency Building Standards
for Outdoor Potable Water. Fee adjusted from $943.00 to $1161.00 to realign the fee
to full cost recovery.
Multi Family New Construction
of < 4 Fee adjusted from $1306.00 to $1481.00 Fees to realign the fee to full cost recovery.
Multi Family New Construction
of 4 or More (attached) units Fee adjusted from $1591.00 to $923.00 to realign the fee to full cost recovery.
New Commercial >50,000 SF Fee adjusted from $2303.00 to $1761.00 to realign the fee to full cost recovery.
New Commercial 1,000‐25,000
SF Fee adjusted from $1876.00 to $1202.00 to realign the fee to full cost recovery.
New Commercial 25,001 ‐ 50,000
SF Fee adjusted from $2160.00 to $1481.00 to realign the fee to full cost recovery.
New Single Family Fee adjusted from $1449.00 to $923.00 to realign the fee to full cost recovery.
Tenant improvements,
renovations or alterations >
$200,000 in valuation (and not
triggered by a Calgreen Tier)
Fee adjusted from $1306.00 to $644.00 to realign the fee to full cost recovery.
Tenant improvements,
renovations or alterations >
5,000 SF
Fee adjusted from $1591.00 to $644.00 to realign the fee to full cost recovery.
$2,303.00 per review $1,761.00 per review
$1,876.00 per review $1,202.00 per review
2017 Adopted 2018 Proposed
$1,591.00 each $923.00 each
$708.00 each
$429.00 each
$140.00 each
$185.00 per inspection
$1,300.00 each
$1,306.00 each
‐45.5%
‐63.0%
‐81.0%
‐19.6%
21.4%
23.1%
$1,306.00 per review
$2,160.00 per review
13.4%
$230.00 per inspection
$1,553.00 each
$943.00 each
$1,591.00 per review $644.00 per review ‐59.5%
$1,481.00 per review
‐35.9%
‐31.4%
‐50.7%
$1,449.00 per review
‐23.5%
$1,481.00 each
% Change
‐42.0%
$1,158.00 each
$737.00 each
$1,886.00 each
$1,161.00 each
$644.00 per review
$923.00 per review ‐36.3%
Attachment A, Exhibit 3, Page 9
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
Changed Fees
Development Services ‐ Public Works Division
Fee Title Justification
Engineering ‐ A. 101 ‐ 1,000 cubic
yards
Base fee increased from $139.00 to $197.00 for first 100 cubic yards to adjust for actual
costs, including department specific overhead and meet Council cost‐recovery
directive.
Engineering ‐ B. 1,001 ‐ 10,000
cubic yards
Base fee increased from $1,390.00 to $1,970.00 for first 1,000 cubic yards to adjust for
actual costs, including department specific overhead and meet Council cost‐recovery
directive.
Engineering ‐ C. 10,001 or more
cubic yards
Base fee increased from $2,680.00 to $3830.00 for first 10,000 cubic yards to adjust for
actual costs, including department specific overhead and meet Council cost‐recovery
directive.
Storm Drain Plan Check Fee Fee increased from $595.00 per project to $743.00 per project. Staff proposes to
increase the fee by 25% annually for six years until cost recovery is met.
Tree Inspection for Private
Development
Fee decreased to $139 from $210 per project to reflect the shiŌ to contract services,
include department‐specific overhead, and meet Council cost‐recovery directive.
Wet Season Construction Site
Stormwater Inspection
Fee increased to $287 from $230 per month to include department‐specific overhead,
and meet Council cost‐recovery directive.24.8%
42.9%
$1970.00 for the first 1,000 cubic yards plus
$186.00 for each additional 1,000 cubic yards
or fraction thereof
$139.00 for the first 100 cubic yards, plus
$139.00 for each additional 100 cubic yards or
fraction thereof
$197.00 for the first 100 cubic yards, plus
$197.00 for each additional 100 cubic yards or
fraction thereof
2018 Proposed
$1390.00 for the first 1,000 cubic yards plus
$129.00 for each additional 1,000 cubic yards
or fraction thereof
24.9%
2017 Adopted
‐33.8%
41.7%
41.7%
% Change
$2680.00 for the first 10,000 cubic yards plus
$517.00 for each additional 10,000 cubic yard
or fraction thereof
$595.00 per project
$230.00 per month, charge monthly October
thru April
$287.00 per month, charge monthly October
thru April
$210.00 per inspection $139.00 per inspection
$3830.00 for the first 10,000 cubic yards plus
$711.00 for each additional 10,000 cubic yard
or fraction thereof
$743.00 per project
Attachment A, Exhibit 3, Page 10
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
Changed Fees
Fire
Fee Title Justification
911 Advanced Life Support
Transport Mileage
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
911 Basic Life Support Transport
Mileage
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
Advanced Life Support ‐
Base/BLS Downgrades Bundled
Rate
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
Advanced Life Support ‐ LS II
Bundled Rate
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
Advanced Life Support ‐ Special
Event Standby
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
Basic Life Support ‐ Scheduled
Transport
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
Basic Life Support ‐ Single
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
Basic Life Support ‐ Special Event
Standby
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
Contracted Interfacility Basic Life
Support Transport
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
Interfacility Basic Life Support
Transport Mileage
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
Night Transport Fee
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
Oxygen
This proposed increase aligns the fee with increasing costs to provide emergency
medical transport services, driven by personnel cost increases as well as services and
supply costs that support the program.
8.0%
% Change
$27.00 per mile
8.0%
9.0%
9.0%
8.7%
9.1%
8.9%
9.0%
8.0%
$294.00 ‐ $649.00 per occurrence
9.4%
8.0%
9.3%
$1995.00 per occurrence
$208.00 ‐ $340.00 per hour
$270.00 ‐ $595.00 per occurence
$512.00 per occurrence
$25.00 per mile
$1,872.50 per occurrence
$2,174.50 per occurrence
$27.00 per mile
$85.00 ‐ $160.00 per hour
$82.00 per occurrence
$138.00 per occurrence
$93.00 ‐ $174.00 per hour
$227.00 ‐ $371.00 per hour
$25.00 per mile
$75.00 per occurrence
$127.00 per occurrence
$25.00 per mile
$25.00 per mile
$1,718.00 per occurrence
$558.00 per occurrence
$27.00 per mile
2018 Proposed2017 Adopted
$27.00 per mile
Attachment A, Exhibit 3, Page 11
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
Changed Fees
Planning and Community Environment
Fee Title Justification
California Avenue Area ‐ Daily
Parking Permit
This fee is consistent with the daily parking rate in the Downtown area. The proposed
fee is increased to provide cost recovery for the provision of parking facilities and to
discourage the use of single occupancy vehicles.
California Avenue Area All
Garages and Lots ‐ Annual
Parking Permit
Consistent with the Finance Committee recommended revisions approved on May
18th, 2017, this fee is increased to provide cost recovery for various parking initiatives
in California Avenue and to minimize General Fund subsidy. The fee includes a note
that quarterly and six month permits are prorated based upon the annual amount.
College Terrace RPP ‐ Annual
Resident Parking Permit
Consistent with the Finance Committee recommended revisions approved on May
18th, 2017, Annual Resident Parking Permits in RPP districts are recommended to be
standardized throughout program at $50.00 per year. This fee was previously titled
"College Terrace ‐ Annual Permit" and has been consolidated with the deleted fee
titled "College Terrace ‐ Guest Permit".
Downtown RPP ‐ Daily Employee
Parking Permit
Daily employee RPP permits are set at the same cost as garages, removing the incentive
for employees to park in neighborhoods.
Downtown RPP ‐ Full Price
Employee Parking Permit
Consistent with the Finance Committee recommended revisions approved on May
18th, 2017, Full Price Employee RPP Parking Permits are aligned to the same price as
garages, removing the incentive for employees to park in neighborhoods. A six month
period is recommended rather than an annual amount due to employee turnover.
Downtown RPP ‐ Reduced Price
Employee Parking Permit
The total price for low income workers is not proposed to change, rather a six month
period is recommended rather than an annual amount due to employee turnover.
On‐Street Parking Space Rental
The recent parking study recommends that the City ensure that the price of rented
permit spaces correlates to on‐street paid parking rates. If this space is no longer
available to the public, the City is in loss of parking inventory and any associated
revenue.
Records Retention Increased to align with costs and to be consistent with Development Services fee for
the same activity.
$100.00 per annual permit
50.0%
N/A
N/A
212.5%
145.0%
$50.00 per six months
$25 per space per day
400.0%
25.0%
56.7%
$6.00 per plan sheet
$365 per six months
% Change
$8.00 per day $25.00 per day
2017 Adopted 2018 Proposed
$49.50 per quarter; $149 per year $365.00 per year
$40.00 per permit $50.00 per year
$5.00 per day $25.00 per day
$4.00 per plan sheet
$466.00 per year
$79.00 per space per week
Attachment A, Exhibit 3, Page 12
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
Changed Fees
Planning and Community Environment
Fee Title Justification
Standard On‐street Disabled
Parking Space
The fee listed in the FY17 Municipal Schedule was for the piloting of this acitvity. The
proposal updates the fee based upon the actual cost of providing the disabled space,
reduced in consideration of similar fees in neighboring cities. The space is not for the
exclusive use of the applicant, anyone with appropriate designation may park in it.
All Downtown and SOFA Garages
and Lots ‐ Annual Parking Permit
Consistent with the Finance Committee recommended revisions approved on May
18th, 2017, this fee is increased to provide cost recovery for various parking initiatives
in University Avenue and to support the recommendation to increase Transportation
Management Authority (TMA) funding. This proposed fee encapsulates the annual
parking fee for all downtown lots and garages, and has been renamed from the prior
title "University Avenue ‐ All Lots". The FY17 Municipal Fee Schedule lists each by
garage, which can cause confusion to the public who are unaware of garage
designations. The fee includes a note that quarterly and six month permits are prorated
based upon the annual amount.
All Downtown and SOFA Garages
and Lots ‐ Daily Parking Permit
This proposed fee encapsulates the annual parking fee for all downtown lots and
garages, and has been renamed from the prior title "University Avenue ‐ One Day
Parking Permit". The FY17 Municipal Fee Schedule lists each by garage, which can
cause confusion to the public who are unaware of garage designations. The fee is
increased to begin briniging the price closer to market and to discourage the use of
single occupancy vehicles
$146.50 per quarter; $466.00 per year $730.00 per year 56.7%
$17.50 per day $25.00 per day 42.9%
$250.00 per year $915.00 per five years N/A
2017 Adopted 2018 Proposed % Change
Attachment A, Exhibit 3, Page 13
ATTACHMENT A, Exhibit 3
Municipal Fee Schedule Amendments for FY 2018
Changed Fees
Public Works
Fee Title Justification
Additional Non‐Residential Long‐
Term (More than 5 days)
Monthly
Fee increased from $500 to $746 per encroachment to adjust for actual costs, including
department‐specific overhead, and meet Council cost‐recovery directive.
Additional Temporary Discharge
to Storm Drain from
Construction Site Dewatering
Fee increased to $313 from $217 per week per project to adjust for actual costs,
including department specific overhead, and to meet Council cost‐recovery directive .
Dumpster, Container Fee increased from $210 each to $310 each to adjust for actual costs, including
department specific overhead, and meet Council cost‐recovery directive.
IR Review ‐ Trees Fee decreased from $647 to $304 as contract services will be used to provide this
service with Urban Forester quality control.
Non‐Residential ‐ Single Day Fee increased to $1249.00 from $862.00 per project to adjust for actual costs, including
department specific overhead, and meet Council cost‐recovery directive.
Non‐Residential Long‐Term
(More than 5 days)
Fee increased from $1418.00 to $2039.00 per project to adjust for actual costs,
including department specific overhead and meet Council cost‐recovery directive.
Non‐Residential Short‐Term
(Less than 5 days)
Fee increased from $1014.00 to $1466 to adjust for actual costs, including department
specific overhead and meet Council cost‐recovery directive.
Permit Fees ‐ A. Construction in
Public Right‐of‐Way ($1.00 ‐
$5,999)
Base fee increased from $503.00 to $712.00 per occurance to adjust for actual costs,
including department specific overhead and meet Council cost‐recovery directive.
Permit Fees ‐ B. Construction in
Public Right‐of‐Way ($6,000 ‐
$25,999)
Base fee increased from $503.00 to $712.00 to adjust for actual costs, including
department specific overhead and meet Council cost‐recovery directive.
Permit Fees ‐ C. Construction in
Public Right‐of‐Way ($26,000 ‐
$100,999)
Base fee increased from $1743.00 to $2472.00 per occurance to adjust for actual costs,
including department specific overheard and meet Council cost‐recovery directive.
Permit Fees ‐ D. Construction in
Public Right‐of‐Way ($101,000 +)
Base fee increased from $7368.00 to $10,572 to adjust for actual costs and meet
Council cost‐recovery directive.
Temporary Discharge to Storm
Drain from Construction Site
Dewatering
Fee increased from $2,903.00 to $14,093.00 per request to discharge to adjust for
actual costs, including department specific overhead, and meet Council cost‐recovery
directive. $10,000 is for Council adopted ordinance for dewatering to pay consultant
per instance.
385.5%
$217.00 per week for the duration of
dewatering activities
$313.00 per week for the duration of
dewatering activities
$2,903.00 per request to discharge $14,093 per request to discharge
39.6%
49.2%
41.6%
41.8%
43.5%
47.6%
$862.00 each $1,249.00 each
$1,418.00 each $2,039.00 each
$1,014.00 each $1,466.00 each
‐53.0%
2017 Adopted 2018 Proposed % Change
$1,743.00 + 7.5% of value greater than
$26,000.00
$2472.00 + 10.8% of value greater than
$26,000.00
$7,368.00 + 6.4% of value greater than
$100,000.00
$10,572.00 + 9% of value greater than
$100,000.00
$210.00 each $310.00 each
$503.00 per occurrence $702.00 per occurrence
$500.00 per month $746.00 per month
$503.00 + 6.2% of value greater than
$6,000.00
$712.00 + 8.8% of value greater than
$6,000.00
$647.00 per application $304.00 per application
44.9%
43.2%
44.6%
44.2%
Attachment A, Exhibit 3, Page 14
Attachment B
Not Yet Approved
170329 jb 6053933
Resolution No. _____
Resolution of the Council of the City of Palo Alto Approving the
FY 2018 Electric Utility Financial Plan
R E C I T A L S
A. Each year the City of Palo Alto (“City”) regularly assesses the financial position of
its utilities with the goal of ensuring adequate revenue to fund operations. This includes
making long-term projections of market conditions, the physical condition of the system, and
other factors that could affect utility costs, and setting rates adequate to recover these costs. It
does this with the goal of providing safe, reliable, and sustainable utility services at competitive
rates. The City adopts Financial Plans to summarize these projections.
B. The City uses reserves to protect against contingencies and to manage other
aspects of its operations, and regularly assesses the adequacy of these reserves and the
management practices governing their operation. The status of utility reserves and their
management practices are included in Reserves Management Practices attached to and made
part of the Financial Plans.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby approves the FY 2018 Electric Utility Financial Plan.
SECTION 2. The Council hereby approves the transfer of up to $911 thousand from
the Supply Rate Stabilization Reserve to the Supply Operations Reserve in FY 2017, up to $9.0
million from the Hydroelectric Stabilization Reserve to the Supply Operations Reserve in FY
2017, and up to $4.5 million from the Supply Operations Reserve to the Distribution Operations
Reserve in FY 2017, as described in the FY 2018 Electric Utility Financial Plan approved via this
resolution.
/ /
/ /
/ /
/ /
/ /
/ /
Attachment B
Not Yet Approved
170329 jb 6053933
SECTION 3. The Council finds that the adoption of this resolution does not meet the
California Environmental Quality Act’s (CEQA) definition of a project under Public Resources
Code Section 21065, and therefore, no environmental assessment is required.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
FY 2018 ELECTRIC
UTILITY
FINANCIAL PLAN
FY 2018 TO FY 2027
ATTACHMENT C
2 | Page
FY 2017 ELECTRIC UTILITY
FINANCIAL PLAN
FY 2018 TO FY 2027
TABLE OF CONTENTS
Section 1: Definitions and Abbreviations................................................................................ 4
Section 2: Executive Summary and Recommendations ........................................................... 5
Section 2A: Overview of Financial Position .................................................................................. 5
Section 2B: Summary of Proposed Actions .................................................................................. 6
Section 3: Detail of FY 2018 Rate and Reserves Proposals ....................................................... 7
Section 3A: Rate Design ............................................................................................................... 7
Section 3B: Current and Proposed Rates ..................................................................................... 7
Section 3C: Reserves Management Practices .............................................................................. 8
Section 3D: Proposed Reserve Transfers ..................................................................................... 8
Section 4: Utility Overview .................................................................................................. 10
Section 4A: Electric Utility History ............................................................................................. 11
Section 4B: Customer Base ........................................................................................................ 13
Section 4C: Distribution System ................................................................................................. 13
Section 4D: Cost Structure and Revenue Sources ...................................................................... 14
Section 4E: Reserves Structure ................................................................................................... 15
Section 4F: Competitiveness ...................................................................................................... 16
Section 5: Utility Financial Projections ................................................................................. 17
Section 5A: Load Forecast .......................................................................................................... 17
Section 5B: FY 2012 to FY 2016 Cost and Revenue Trends ........................................................ 19
Section 5C: FY 2016 Results ....................................................................................................... 20
Section 5D: FY 2017 Projections ................................................................................................ 20
Section 5E: FY 2018 – FY 2027 Projections ................................................................................ 21
3 | Page
Section 5F: Risk Assessment and Reserves Adequacy ............................................................... 23
Section 5G: Long-Term Outlook ................................................................................................. 27
Section 6: Details and Assumptions ..................................................................................... 30
Section 6A: Electricity Purchases ............................................................................................... 30
Section 6B: Operations .............................................................................................................. 32
Section 6C: Capital Improvement Program (CIP) ....................................................................... 33
Section 6D: Debt Service ............................................................................................................ 33
Section 6E: Equity Transfer ........................................................................................................ 34
Section 6F: Wholesale Revenues and Other Revenues .............................................................. 34
Section 6G: Sales Revenues ....................................................................................................... 35
Section 7: Communications Plan .......................................................................................... 36
Appendices ......................................................................................................................... 38
Appendix A: Electric Utility Financial Forecast Detail ................................................................ 39
Appendix B: Electric Utility Reserves Management Practices ................................................... 43
Appendix C: Description of Electric utility Operational Activities .............................................. 48
Appendix D: Samples of Recent Electric Utility Outreach Communications .............................. 49
4 | Page
SECTION 1: DEFINITIONS AND ABBREVIATIONS
CAISO California Independent System Operator
CARB California Air Resources Board
CIP Capital Improvement Program
CPAU City of Palo Alto Utilities Department
CPUC California Public Utilities Commission
CVP Central Valley Project
GWh a gigawatt-hour, equal to 1,000 MWh or 1,000,000 kWh. Commonly used for
discussing total monthly or annual electric load for the entire city, or the monthly or
annual output of an electric generator.
kWh a kilowatt-hour, the standard unit of measurement for electricity sales to customers.
kW a kilowatt, a unit of measurement used in reference a customer’s peak demand (the
highest 15 minute average consumption level in a month), which is used for billing
large and mid-size commercial customers.
kV a kilovolt, one thousand volts, a unit of measurement of the voltage at which a
section of the distribution system operates. The transmission system operates at
115-500 kV, and this is lowered to 60 kV in the subtransmission section of the
Electric Utility’s distribution section, then 12 kV or 4 kV in the rest of the distribution
system, and finally 120, 240, or 480 volts at the electric outlet.
MWh a megawatt-hour, equal to 1,000 kWh. Commonly used for measuring wholesale
electricity purchases.
MW a megawatt, equal to 1,000 kW. Commonly used when discussing maximum
electricity demand for all customers in aggregate.
PG&E Pacific Gas and Electric
REC Renewable Energy Certificate
RPS Renewable Portfolio Standard
Sub-transmission System: The section of the Electric Utility’s distribution system that operates
at 60 kV and which interfaces with PG&E’s transmission system.
Transmission System: Sections of the electric grid that operate at high voltages, generally 115
kV or more. The voltage at the intersection of the Electric Utility’s distribution system
and PG&E’s transmission system is 115 kV. The Electric Utility does not own or
operate any transmission lines.
UCC Utility Control Center
SCADA Supervisory Control and Data Acquisition system, the system of sensors,
communications, and monitoring stations that enables system operators to monitor
and operate the system remotely.
WAPA, or Western: Western Area Power Administration, the agency that markets power from
CVP hydroelectric generators and other hydropower owned by the Bureau of
Reclamation.
5 | Page
SECTION 2: EXECUTIVE SUMMARY AND RECOMMENDATIONS
This document presents a Financial Plan for the City’s Electric Utility for the next ten fiscal
years. This Financial Plan describes how revenues will cover the costs of operating the utility
safely over that time while adequately investing for the future. It also addresses the financial
risks facing the utility over the short term and long term, and includes measures to mitigate and
manage those risks.
SECTION 2A: OVERVIEW OF FINANCIAL POSITION
The Electric Utility’s costs will increase substantially over the next few years, as shown in Table
1. Most of the increases are related to electric supply costs, which are increasing due to
increased transmission costs and the cost of new renewable energy projects coming online.
There are also inflationary increases in Operations costs, and some additional capital
investment costs.
Table 1: Electric Utility Expenses for FY 2016 to FY 2027
Expenses
($000)
FY 2016
(act.)
FY 2017
(est.)
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
Power Supply
Purchases 79,115 84,371 87,987 89,066 90,841 90,728 92,221 91,758 92,925 93,904 95,224 96,465
Operations 35,443 54,152 56,307 56,795 58,409 59,238 60,089 61,931 62,507 59,519 60,550 61,610
Capital Projects 21,128 21,490 15,574 15,869 25,150 19,048 17,449 18,354 18,878 19,417 19,972 20,543
TOTAL 135,685 160,013 159,868 161,730 174,400 169,014 169,759 172,042 174,309 172,840 175,746 178,617
To cover these increases in costs, revenues (and therefore rates) need to increase over the next
several years to balance costs and revenues, as shown in Table 2. The table also compares
current rate projections to those projected in last year’s Financial Plan. The rate projections are
higher this year than last year primarily due lower actual and projected sales and increases to
transmission cost projections. In addition, the continued drought has had a greater impact than
expected on hydroelectric supplies. This has affected reserves, making it difficult to phase in
rate increases over multiple years.
Table 2: Projected Electric Rates, FY 2017 to FY 2023
Projection FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Current 14% 7% 0% 0% 1% 2% 1% 1% 1% 1%
Last Year 10% 3% 0% 1% 0% 2% N/A N/A N/A N/A
Table 3 shows the projected reserve transfers over the forecast period. The Supply Rate
Stabilization Reserve is projected to be drawn down entirely by the end of FY 2018. Funds are
projected to be transferred from the Electric Special Projects (ESP) Reserve to the Operations
Reserve to fund smart grid projects included in the long term CIP budget, but it should be noted
that the smart grid costs included in the forecast are placeholders, as are the transfers from the
ESP Reserve. Any transfers from the ESP Reserve require Council approval.
6 | Page
Staff will request a temporary loan from the ESP reserve of $10 million for the Distribution
Operations reserve, as it is otherwise projected to be critically low. As the intent of the ESP
reserve is to fund projects, not to stabilize rates, this will be a temporary transfer, to be
reversed once distribution rates have increased and stabilized (FY 2020 and 2021) and funds
can be returned to the ESP reserve. Staff is also requesting authority to withdraw funds from
the Hydro Stabilization Reserve in FY 2017 and FY 2018 due to lower than average hydroelectric
generation, though this projection is subject to change with weather conditions. Based on
precipitation to-date, this projection is likely to change, and staff will not perform these
transfers if they become unnecessary.
Table 3: Reserves Transfers for FY 2017 to FY 2027 ($000)
Reserve FY 2017 FY 2018 FY 2019 to FY 2027
Supply Reserves
Electric Special Projects (10,173) 3,000
Hydro Stabilization* (9,000) (2,400) -
Supply Rate Stabilization (5,411) (3,600) -
Supply Operations 10,084 5,500 7,000
Distribution Reserves
Capital Improvement Program
Distribution Operations 14,500 500 (10,000)
* A $9 million transfer from the Supply Rate Stabilization Reserve to the Supply Operations Reserve was
approved by Council when it adopted the FY 2016 Electric Utility Financial Plan
SECTION 2B: SUMMARY OF PROPOSED ACTIONS
Staff proposes the following actions for the Electric Utility in FY 2017:
1. Complete the proposed FY 2017 reserves transfers described Section 3D: Proposed
Reserve Transfers, as previously requested as part of the FY 2017 Electric Financial Plan
2. Request a new transfer of $10 million from the ESP reserve to the Distribution
Operations Reserve, to be repaid within five years.
Staff proposes the following actions for the Electric Utility in FY 2018:
1. Request the proposed FY 2018 reserves transfers described in Section 3D: Proposed
Reserve Transfers.
2. Increase rates effective July 1, 2017 for a 14% increase in system average rates, and
thereby increase sales revenues by 10% based upon current sales projections.
Note that while the projected rate increases and reserves transfers in this FY 2018 Financial
Plan are adequate to recover costs over the forecast period, the Supply Operations Reserves
are projected to be at or below the minimum Supply Operations Reserve level for FY 2017
through FY 2019, and lower sales have dropped Distribution Operations reserves to very low
levels requiring new transfer requests. While more aggressive increases could be requested,
staff still recommends proceeding with this plan for two reasons: first, recent rains and
7 | Page
favorable snowpack levels may result in favorable hydroelectric production, resulting in higher
reserves, and second, the presence of the Electric Special Projects Reserve with a balance of
$41 million means that a small temporary shortfall in the Operations Reserves should not affect
the Electric Utility’s financial health and bond ratings. In the event drought resurfaces or hydro
fails to materialize, staff will re-evaluate its projections at midyear of FY 2018 and may
recommend additional rate increases or the adoption of a hydroelectric rate adjuster.
SECTION 3: DETAIL OF FY 2018 RATE AND RESERVES PROPOSALS
SECTION 3A: RATE DESIGN
The rates discussed in the previous section are based on the cost of service methodology
established in “City of Palo Alto Electric Cost of Service and Rate Study”1 drafted by EES
Consulting, Inc. in 2015/16. Staff provided EES with updated sales and budget projections,
including projected transmission and distribution costs, power supply costs and billing data, in
order for EES to update individual cost of service model components and determine the
proposed rates. The COSA is based on design guidelines adopted by Council on September 15,
2015 (Staff Report 6061).
SECTION 3B: CURRENT AND PROPOSED RATES
The current rates were adopted on July 1, 2016, when CPAU increased electric rates by 11%.
Table 4, below, summarizes the current and proposed rates for the four largest customer
classes. The Electric Utility also has specialty rates for smaller groups of customers. These
include variations on its primary rates, such as time of use rates, the PaloAltoGreen rates, and
solar net metering. Staff proposes a 14% overall increase in revenue, requiring 14% increase in
system average rates. Different customer classes may see different percentage changes to their
rates, based upon their usage of the system and cost to serve each group.
1 Staff Report 6857 http://www.cityofpaloalto.org/civicax/filebank/documents/52274
8 | Page
Table 4: Current and Proposed Electric Rates
Current Rates
Proposed Rates
(7/1/17)
Change
$ %
E-1 (Residential)
Tier 1 Energy ($/kWh) 0.11029 0.12159 0.01130 10%
Tier 2 Energy ($/kWh) 0.16901 0.19001 0.02100 12%
Minimum Bill ($/day) 0.3067 0.2938 (0.0129) -4%
E-2 & E-2-G(Small Non-Residential)
Summer Energy ($/kWh) 0.16845 0.18885 0.02040 12%
Winter Energy ($/kWh) 0.11445 0.13267 0.01822 16%
Minimum Bill ($/day) 0.7657 0.7328 (0.0329) -4%
E-4 & E-4-G (Medium Non-Residential)
Summer Energy ($/kWh) 0.10229 0.11673 0.01444 14%
Winter Energy ($/kWh) 0.08049 0.08890 0.00841 10%
Summer Demand ($/kW) 19.68 21.05 1.37 7%
Winter Demand ($/kW) 14.04 15.36 1.32 9%
Minimum Bill ($/day) 16.3216 14.8414 (1.4802) -9%
E-7 & E-7-G (Large Non-Residential)
Summer Energy ($/kWh) 0.08749 0.09802 0.01053 12%
Winter Energy ($/kWh) 0.06242 0.07188 0.00946 15%
Summer Demand ($/kW) 18.34 23.84 5.50 30%
Winter Demand ($/kW) 15.65 15.59 (0.06) 0%
Minimum Bill ($/day) 48.5054 42.3648 (6.1406) -13%
These proposed rates were prepared in conformance with the “FY 2017 City of Palo Alto Electric
Cost of Service and Rate Study,” performed by EES Consulting (2016).
SECTION 3C: RESERVES MANAGEMENT PRACTICES
No changes to the Electric Utility Reserves Management Practices (See Appendix B: Electric
Utility Reserves Management Practices) are proposed at this time.
SECTION 3D: PROPOSED RESERVE TRANSFERS
In the FY 2017 Electric Financial Plan, Council approved several proposed transfers for FY 2017:
•Transfer up to $1 million from the Supply Rate Stabilization Reserve to the Supply
Operations Reserve. This transfer is to enable the City to spread necessary long term
rate increases over multiple years to reduce the short-term impact on ratepayers.
Current estimates are that the amount will be closer to $911,000.
•Transfer up to $9.0 million from the Hydroelectric Stabilization Reserve to offset
potential costs associated with low hydroelectric generation. Some or all of this transfer
9 | Page
may be unnecessary if weather conditions change, but current estimates still indicate
the full amount will be needed, since excess generation in the spring of 2017 may not
fully offset below-average generation in the summer and fall of 2016.
•Transfer up to $4.5 million from the Supply Operations Reserve to the Distribution
Operations Reserve to ensure reserve adequacy in the Distribution Operations Reserve.
Staff will also request the following for FY 2017:
•Transfer up to $10 million from the ESP Reserve to the Distribution Operations Reserve.
This transfer will be construed as a temporary transfer, to be repaid to the ESP Reserve
within five years.
Proposed transfers for FY 2018 will not be requested by resolution at this time, but will be
requested as part of the FY 2019 Financial Plan, or at FY 2017 year-end should ending reserve
balances require it.
The impact of these transfers on reserves levels can be seen in Figure 8 (for Supply Fund
Reserves) and Figure 9 (for Distribution Fund Reserves) in Section 5E: FY 2018 – FY 2027
Projections. Table 5 shows the projected balance of each of the Electric Utility reserves for the
period covered by this Financial Plan. The projected balances are also provided in. Appendix A:
Electric Utility Financial Forecast Detail
Table 5: End of Fiscal Year Electric Utility Reserve Balances for FY 2016 to FY 2027
Ending Reserve
Balance ($000)
FY 2016
(Act.)
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
Reappropriations - - - - - - - - - - - -
Commitments 3,777 3,777 3,777 3,777 3,777 3,777 3,777 3,777 3,777 3,777 3,777 3,777
Underground Loan 729 729 729 729 729 729 729 729 729 729 729 729
Public Benefits 1,839 1,331 739 280 95 - - - - - - -
Special Projects 51,838 41,665 41,526 41,192 42,859 46,192 44,665 44,665 44,665 44,665 44,665 44,665
Hydro Stabilization 11,400 2,400 - - - - - - - - - -
Capital - - - - - - - - - - - -
Rate Stabilization 9,011 3,600 - - - - - - - - - -
Operations 21,850 21,570 28,477 31,328 31,984 32,727 36,734 36,600 36,226 38,957 40,471 41,658
Unassigned - - - 916 - - - - - - - -
TOTAL 100,444 75,072 75,248 78,222 79,444 83,425 85,906 85,771 85,397 88,128 89,642 90,830
10 | Page
SECTION 4: UTILITY OVERVIEW
This section provides an overview of the utility and its operations. It is intended as general
background information to help readers better understand the forecasts in Section 5: Utility
Financial Projections and
11 | Page
Section 6: Details and Assumptions.
SECTION 4A: ELECTRIC UTILITY HISTORY
On January 16, 1900, Palo Alto began operating its own electric system. One of the earliest
sources of Palo Alto's electricity was a steam engine, which was later replaced by a diesel
engine in 1914 due to rising fuel oil costs. As the population and the demand for electricity
continued to grow, CPAU connected to PG&E’s system in the early 1920s. Power from PG&E
proved more economical than the diesel engines, and by the late 1920s CPAU was using its own
diesel engines only during peak demand periods. At that time CPAU owned 45 miles of
distribution lines and the City used 9.7 GWh annually, less than 1% of today’s annual
consumption. The diesel engines remained in operation until 1948, when they were retired.
From 1950 to 1970 electric consumption in Palo Alto grew dramatically, just as it did
throughout the rest of the country. In 1970 total annual sales were 602 GWh, twenty times the
sales in 1950 (30 GWh). Some of that growth was related to a development boom in Palo Alto,
which doubled the number of customers. Some was related to the proliferation of electric
appliances, as evidenced by the fact that residential customers were using three times more
electricity in 1970 than they had been in 1950. But the most notable factor was the growth of
industry in Palo Alto during that time. By 1970, commercial customers were using 20 times
more electricity per customer than they had been in 1950. These decades also saw several
other notable events, including:
• 1964: CPAU entered into a favorably priced 40-year contract with the Federal Bureau of
Reclamation to purchase power from the Central Valley Project (CVP), a contract which
later was managed by the Western Area Power Administration (WAPA) an office of the
Department of Energy created in the 1970s to market power from various hydroelectric
projects operated by the Federal Government, including the CVP.
• 1965: The City began a long-term program to underground its overhead utility lines
(Ordinance 2231).
• 1968: Palo Alto joined several other small municipal utilities to form the Northern
California Power Agency (NCPA), a joint action agency intended to make the group less
vulnerable to actions by private utilities and to enable investment in energy supply
projects.
Palo Alto’s first new power plant investment in over 50 years came in the mid-80s. Palo Alto
joined other NCPA members to invest in the construction and operation of the Calaveras
Hydroelectric Project on the Stanislaus River in the Sierra-Nevada Mountains. The project
commenced operation in 1990. The 1980s also saw an increased focus on infrastructure
maintenance. In 1987 the UCC was built to house the terminals for a new SCADA system, which
enabled utility staff to monitor the distribution system in real time, improving response time to
outages. CPAU also commenced a preventative maintenance and planned replacement
program for its underground system in the early 1990s.
12 | Page
In the early 1990s the CPUC issued a ruling to deregulate the electric industry in California, and
in 1996 the State legislature passed Assembly Bill 1890, which, among other things, created the
California Independent System Operator (CAISO) to operate the transmission system and the
Power Exchange to facilitate wholesale energy transactions. This restructuring was anticipated
to bring lower costs to consumers, and while CPAU was not required to participate in the
industry restructuring, in 1997 the Council approved a Direct Access Program for the Electric
Utility2 that enabled CPAU to sell electricity outside its service territory and allowed customers
within CPAU’s service territory to choose other providers. The utility unbundled its electric
rates, creating separate supply and distribution components, which would enable customers to
receive only distribution service while purchasing the electricity itself from another provider.
The energy crisis in 2000 to 2001 led to the suspension of direct access by the CPUC in
September 2001 as wholesale energy prices skyrocketed. The Electric Utility was less impacted
than other utilities by the 2000 to 2001 energy crisis thanks to the Calaveras project and its
contract with WAPA for CVP hydropower.
In 2001 CPAU began planning for the impacts associated with the new terms of its contract with
WAPA, set to take effect in 2005. The previous contract had provided 90% of Palo Alto’s power
supply at favorable rates, and PG&E, as a party to the contract, had provided supplemental
power to balance the monthly and annual variability of CVP generation. The new contract
would provide only a third of Palo Alto’s requirement, and the monthly and annual variability in
CVP generation would be passed directly to Palo Alto. As a result, electric supply costs would
increase and CPAU needed to more actively managine its supply portfolio. CPAU began
purchasing power from marketers and also investigated building a power plant in Palo Alto or
partnering in the development of a gas-fired power plant elsewhere. Climate change was also
becoming more of a concern to the community, and gradually CPAU shifted its focus to the
procurement of renewable energy. In 2002 CPAU adopted a goal of achieving 20% of its energy
supply from renewables by 2015. Subsequently CPAU signed its first contract for renewable
power, a contract for energy from a wind generator commencing deliveries in 2005. In 2011 the
renewable energy goal was increased to at least 33% by 2015, and in 2013 the City adopted a
plan to make its electric supply 100% carbon neutral, which it achieves through the
combination of its carbon-free hydroelectric supplies, purchases of long-term renewable energy
supplies, and short-term renewable energy purchases (RECs) to meet the balance of its needs.
2 Implementation of Direct Access for Electric Utility Customers, CMR:460:97, December 1, 1997
13 | Page
Figure 1: Customer Base (FY 2016)
16%
7%
35%
42%
Residential
Small Comm
Med. Comm
Large Comm
SECTION 4B: CUSTOMER BASE
The City of Palo Alto’s Electric Utility
provides electric service to the
residents, businesses, and other
electric customers in Palo Alto. There
are roughly 29,750 customers
connected to the electric system,
25,700 (86%) of which are residential
and 4,050 (14%) of which are non-
residential. Residential customers
consumed 148 gigawatt-hours (GWh)
in FY 2016, approximately 16% of the
electricity sold, while non-residential
customers consumed 88% or
759 GWh. Residential customers use
electricity primarily for lighting,
refrigeration, electronics, and air conditioning.3 Non-residential customers use the majority of
their electricity for cooling, ventilation, lighting, office equipment (offices), cooking
(restaurants), and refrigeration (grocery stores).4
As shown in Figure 1 large customer loads represent a larger proportion of sales for the Electric
Utility than they do for the City’s other utilities. The largest customers (the 72 customers on the
E-7 rate schedule) account for over 40% of CPAU’s sales. The next largest customer group (the
835 non-residential customers on the E-4 rate schedule) represents another 35% of sales. In
total, that means that about 3% of customers account for nearly three quarters of the electric
load.
SECTION 4C: DISTRIBUTION SYSTEM
The Electric Utility receives electricity at a single connection point with PG&E’s transmission
system. From there the electricity is delivered to customers through nearly 470 miles of
distribution lines, of which 223 miles (48%) are overhead lines and 245 miles (52%) are
underground. The Electric Utility also maintains six substations, roughly 2,000 overhead line
transformers, 1,075 underground and substation transformers, and the associated electric
services (which connect the distribution lines to the customers’ homes and businesses). These
lines, substations, transformers, and services, along with their associated poles, meters, and
3 Source: Residential Appliance Saturation Survey, California Energy Commission, 2010 4 Source: Statewide Commercial End Use Study, California Energy Commission report, 2006.
14 | Page
Figure 2: Cost Structure (FY 2016)
58%
34%
8%
Commodity Supply
Operations
Capital
Figure 3: Hydroelectric Variability (FY 2018)
0%
50%
100%
150%
200%
Low Hydro Average High Hydro
Surplus Hydro
(sales)
Market
Power/RECs
Hydro
Renewables
Load
Figure 4: Revenue Structure (FY 2016)
87%
13%
Sales of Electricity
Other Revenue
other associated electric equipment, represent the vast majority of the infrastructure used to
deliver electricity in Palo Alto.
SECTION 4D: COST STRUCTURE AND REVENUE SOURCES
As shown in Figure 2, electric
commodity purchases accounted for
roughly 58% of the Electric Utility’s
costs in FY 2016. Operational costs
represented roughly 34%, and
capital investment was responsible
for the remaining 8%. CPAU’s non-
hydro long-term commodity supply
is heavily dependent on long-term
contracts which have little variability
in price. On average, costs for these
long-term contracts are not
predicted to increase as quickly as operations and CIP costs, and will steadily become a smaller
proportion of the Electric Utility’s costs. Commodity supply costs are projected to be roughly
54% of total costs in FY 2027.
While average year purchase
costs for the electric utility
are predictable due to its
long-term contracts,
variability in hydroelectric
generation can result in
increased or decreased
costs. This is by far the
largest source of variability
the utility faces. Figure 3
shows the difference in costs
under high, projected, and
low hydroelectric generation scenarios for FY 2018. Additional costs associated with a very low
generation scenario can range from $9-11 million per year. For the current hydroelectric risk
assessment see Section 5F: Risk Assessment and Reserves Adequacy.
As shown in Figure 4 the Electric Utility
receives 87% of its revenue from sales of
electricity and the remainder from
connection fees, interest on reserves,
cost recovery transfers from other funds
for shared services provided by the
electric utility, and other sources. Some
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revenue sources are primarily accounting entries that reflect things such as CPAU’s
participation in a pre-funding program associated with its contract with WAPA, as well as
accounting entries associated with occasional sales of surplus hydroelectric energy during wet
years. Without these entries sales revenues represent roughly 91% of total revenues. Appendix
A: Electric Utility Financial Forecast Detail
shows more detail on the utility’s cost and revenue structures.
As discussed in Section 4B: Customer Base, nearly three quarters of the utility’s electricity sales
are to the 900 largest customers, which provide a similar share of the utility’s revenue stream.
The utility’s retail rate schedules have no fixed charges, although about 24% of the utility’s
revenue comes from peak demand charges on large non-residential customers. Due to
moderate weather and the prevalence of natural gas heating, however, loads (and therefore
revenues) are very stable for this utility, without the large seasonal air conditioning or winter
heating loads seen at some other utilities.
SECTION 4E: RESERVES STRUCTURE
CPAU maintains several reserves for its Electric Utility to manage various types of
contingencies. It also maintains two funds, the Supply Fund and the Distribution Fund, to
manage costs associated with electricity supply and electricity distribution, respectively. This
separation of supply and distribution costs was established as the City prepared to allow its
customers a choice of electricity providers (referred to as “Direct Access”) back in the late
1990s and early 2000s. Though the 2000/2001 energy crisis halted these plans, CPAU continues
to maintain separate funds to facilitate separation of supply and distribution costs in the rates.
This could be important in case California ever decides to reintroduce Direct Access, and may
also be useful for rate design as the nature of utility services evolves in response to higher
penetrations of distributed generation.
The various reserves are summarized below, but see Appendix B: Electric Utility Reserves
Management Practices for more detailed definitions and guidelines for reserve management:
• Reserves for Commitments: Reserves equal to the utility’s outstanding contract
liabilities for the current fiscal year. Most City funds, including the General Fund, have a
Commitments Reserve.
• Reserves for Reappropriations: Reserves for funds dedicated to projects reappropriated
by the City Council, nearly all of which are capital projects. Most City funds, including
the General Fund, have a Reappropriations Reserve. This is currently an important
reserve for all utility funds, but changes in budgeting practices will change that in future
years, as described in Section 3C (Reserves Management Practices).
• Electric Special Projects (ESP) Reserve: This reserve was formerly called the Calaveras
Reserve, which was accumulated during deregulation of California’s electric system to
fund the stranded costs associated primarily with the Calaveras hydroelectric resource
and the California-Oregon Transmission Project. When that reserve was no longer
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needed for that purpose, the reserve was renamed and the purpose was changed to
fund projects with significant impact that provide demonstrable value to electric
ratepayers.
• Hydroelectric Stabilization Reserve: This contingency reserve is used for managing
additional costs due to below average hydroelectric generation, or to hold surpluses
resulting from above average hydroelectric generation.
• Underground Loan Reserve: This reserve is an accounting tool used to offset receivables
associated with loans made through the underground loan program. It is adjusted
according to principal payments made on those loans.
• Public Benefits Reserve: CPAU’s electric rates include a separate charge called the
“Public Benefits Charge” which generates revenue to be used for energy efficiency,
demand-side renewable energy, research and development, and low-income energy
efficiency services. Any funds not expended in the current year are added to the Public
Benefits Reserve for use in future years.
• Capital Improvement Program (CIP) Reserve: The CIP reserve is used to provide
working capital and contingency funds for the CIP program, as well as to accumulate
funds for major future one-time expenditures. This type of reserve is used in other
utility funds (Electric, Gas, and Wastewater Collection) as well.
• Supply and Distribution Rate Stabilization Reserves: These reserves are intended to be
empty unless one or more large rate increases are anticipated in the forecast period. In
that case, funds can be accumulated to spread the impact of those future rate increases
across multiple years. This type of reserve is used in other utility funds (Gas,
Wastewater Collection, and Water) as well.
• Supply and Distribution Operations Reserves: These are the primary contingency
reserves for the Electric Utility, and are used to manage yearly variances from budget
for operational costs and electric supply costs (aside from variances related to
hydroelectric generation). This type of reserve is used in other utility funds (Gas,
Wastewater Collection, and Water) as well.
• Unassigned Reserves (Supply/Distribution): As in the other utility funds, these reserves
are for any financial resources not assigned to the other reserves and are normally
empty.
SECTION 4F: COMPETITIVENESS
For the median consumption level the annual residential electric bill for calendar year 2016 was
$551.65 under current CPAU rates, 38% lower than the annual bill for a PG&E customer with
the same consumption and roughly the same as the annual bill for a City of Santa Clara
customer. The bill calculations for PG&E customers are based on PG&E Climate Zone X, which
includes most surrounding comparison communities.
Table 6 presents sample median residential bills for Palo Alto, PG&E, and the City of Santa Clara
(Silicon Valley Power) for several usage levels. Rates used to calculate the monthly bills shown
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below were in effect as of March 1, 2017. PG&E rates were recently increased, and their
residential tiers moved from three to two.
Over the next several years low usage customers in PG&E territory are expected to continue to
see higher percentage rate increases than high usage customers as PG&E compresses its tiers
from the highly exaggerated levels that have been in place since the energy crisis. This is likely
to make the bill for the median Palo Alto consumer look even more favorable compared to
most PG&E customers. Even with the compressed tiers, bills for high usage Palo Alto consumers
are likely to remain substantially lower than the bills for high usage PG&E customers.
The bill calculations show bills under the existing rates, not the proposed July 1, 2017 rates.
However, even with the proposed rate increases, Palo Alto’s residential bills will remain
substantially below PG&E’s current rates, but slightly above Santa Clara’s.
Table 6: Residential Monthly Electric Bill Comparison (Effective 3/1/17, $/mo)
Season Usage (kwh) Palo Alto PG&E Santa Clara
Winter
(March)
300 33.09 57.04 35.18
453 (Median) 57.18 97.81 53.78
650 90.48 154.38 77.73
1200 183.43 374.19 144.59
Summer
(July)
300 33.09 57.04 35.25
(Median) 330 36.40 63.85 38.83
650 90.48 159.66 77.73
1200 183.43 380.43 144.59
Table 7 shows the average monthly electric bill for commercial customers for various usage
levels. Even with the proposed rate increases, Palo Alto’s commercial bills will remain
substantially below PG&E’s, and below Santa Clara’s for some commercial customers.
Table 7: Commercial Monthly Electric Bill Comparison (3/1/17, $/mo)
Usage (kwh/mo) Palo Alto PG&E Santa Clara
1,000 142 240 181
160,000 21,366 29,108 20,562
500,000 54,473 87,015 62,956
2,000,000 200,895 333,041 243,390
SECTION 5: UTILITY FINANCIAL PROJECTIONS
SECTION 5A: LOAD FORECAST
Figure 5 shows a 40-year history of Palo Alto electricity consumption. Average electricity
consumption grew from 1986 to 1998, then returned to 1986 levels by 2002. Since then
electricity consumption has declined slowly as a result of a continuing focus on energy
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efficiency, as well as the adoption of more stringent appliance efficiency standards and energy
standards in building codes.
Figure 5: Historical Electricity Consumption
Figure 6 shows the forecast of electricity consumption through FY 2027. Sales after the July
2016 rate change decreased by 6% from projections. To be conservative, the forecast assumes
that current trends continue and sales through the forecast period decline slightly.
800
850
900
950
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1,050
1,100
1,150
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Figure 6: Forecasted Electricity Consumption
SECTION 5B: FY 2012 TO FY 2016 COST AND REVENUE TRENDS
The annual expenses for the Electric Utility declined between FY 2009 and FY 2012, as shown in
Figure 7 and the tables in Appendix A: Electric Utility Financial Forecast Detail.
These decreases were partly related to declines in electricity market prices due to the impact of
shale gas and partly due to above average output from hydroelectric resources. These factors
are discussed in more detail in Section 6A: Electricity Purchases. Since FY 2012, total expenses
for the utility have been increasing as renewable resources come online. In FY 2014 through FY
2015 costs were higher due to lower than average output from hydroelectric resources.
Commodity costs are responsible for most of the changes in the utility’s expenses over the last
six years. Operational costs and capital investment increased at less than 1% per year over that
time.
Actual Projection
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Figure 7: Electric Utility Expenses, Revenues, and Rate Changes:
Actual Costs through FY 2016 and Projections through FY 2027
SECTION 5C: FY 2016 RESULTS
California’s drought, with its corresponding lower hydroelectric energy output, continued to
increase electricity costs in FY 2016. Offsetting this were lower operations and capital program
spending. FY 2016 expenses were $9.2 million lower than in the FY 2017 Financial plan, with
revenues being roughly equal.
SECTION 5D: FY 2017 PROJECTIONS
Last year, staff recommended (and Council approved) an 11% rate change for July 1, 2016, the
start of FY 2017. Based on hydroelectric conditions at the time, staff forecasted a roughly $15.2
million deficit for FY 2017. This deficit was primarily related to low hydroelectric output, and
was to be funded from the Rate Stabilization and Hydroelectric Stabilization reserves. Staff’s
current forecast for FY 2017 is for a deficit of $25.4 million, $10.2 million more than forecast
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last year. This change is mainly due to sales decreasing by 6% after the last rate increase,
cutting projected revenues by $11 million. The onset of wet weather and a forecast for a
reversal in hydro conditions has brought down electric purchase cost projections, but the full
impact of better hydro conditions likely won’t be felt until next fiscal year.
With Operations reserves projected to be below minimum, several transfers, including a
temporary loan from the Electric Special Projects Reserve, proposed. These transfers are
discussed in Section 3D: Proposed Reserve Transfers.
SECTION 5E: FY 2018 – FY 2027 PROJECTIONS
As shown in Figure 7 above, costs for the Electric Utility are projected to increase at a fairly
steady rate through the forecast period. Revenues will have to increase 10% in FY 2018 and
another 7% in FY 2019 to bring revenues in line with expenses. The largest increases are
primarily related to electricity purchase costs, which have been increasing since FY 2013 and
will continue to increase through FY 2018 as new renewable projects come online to fulfill the
City’s environmental goals and as transmission costs increase. Operations costs are expected to
increase at or near the inflation rate (2-4 %/year) through the forecast period. Projected capital
expenses for FY 2018 through FY 2023 are about $4.6 million lower than last year’s forecast as
one large, customer driven project has been put on hold. The project would have been funded
mostly through customer reimbursement. This forecast also assumes that smart grid costs are
funded from the Electric Special Projects Reserves.
Reserves trends based on these revenue projections are shown in Figure 8 (for Supply Fund
reserves) and Figure 9 (for Distribution Fund reserves), below. The Supply Rate Stabilization
Reserve will be empty by the end of FY 2017. The Distribution Operations reserve will require a
short term transfer of $10 million from the Electric Special Projects reserve to remain adequate
through the forecast period. The $10 million is projected to be transferred back between FY
2020 and FY 2021. The Supply Operations Reserve, however, is forecasted to be below
minimum levels. This is discussed in more detail in Section 5F: Risk Assessment and Reserves
Adequacy. The Hydro Stabilization reserve is projected to be depleted by the end of FY 2017.
Staff will bring plans to Council in spring or summer for a Hydro rate adjustment mechanism to
better utilize, and fund, this particular reserve.
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Figure 8: Electric Utility Reserves (Supply Fund):
Actual Reserve Levels through FY 2016 and Projections through FY 2027
Figure 9: Electric Utility Reserves (Distribution Fund):
Actual Reserve Levels through FY 2016 and Projections through FY 2027
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SECTION 5F: RISK ASSESSMENT AND RESERVES ADEQUACY
The Electric Utility currently has two contingency reserves, the Supply Operations Reserve and
the Distribution Operations Reserve. This Financial Plan maintains reserves in excess of the
reserve minimum for the Distribution Operations Reserve throughout the forecast period.
Reserve levels also exceed the short-term risk assessment level for the Distribution Fund. The
Supply Operations Reserve, however, may end up below minimum levels and below the short-
term risk assessment level.
There are a variety of risks associated with the Supply Fund as are shown in Table 8. Because of
the high range of uncertainty in energy price predictions more than three years in the future,
this risk assessment is only performed for the first two fiscal years of the forecast period. It is
important to note that the likelihood of all of these adverse scenarios occurring simultaneously
and to the degree described in Table 8 is very low.
Table 8: Electric Supply Fund Risk Assessment
Categories of Electric Supply Cost
Uncertainties
Estimates of Adverse
Outcomes (M$)
Notes FY 2018 FY 2019
1.Load Net Revenue 0.9 1.0 Revenue loss from load decreases (net of
reduction in energy purchases)
2.Production from Hydroelectric
Resources: Western & Calaveras 9.3 13.7 Lower than forecasted hydro
3.Renewable Production: Landfill &
Wind 0.5 2.0 Additional cost of renewable output that is
higher than forecasted
4.Carbon Neutral Cost 0.0 0.0 Higher than forecasted market prices for RECs
5.Market Price (Energy)0.7 0.6 Higher than forecasted market prices for
energy
6.Local Capacity 0.6 1.5 Higher than forecasted market prices for local
capacity
7.Transmission/CAISO 3.2 3.3 High-end transmission forecast scenario
8.Plant Outage 1.0 1.0 Uninsured losses from Calaveras plant outage
9.Western Cost 2.4 3.5 Risk of rate adjustments from Western
10.Regulatory and Legal 0.0 0.0 Risks associated with legislative uncertainties
11.Supplier Default 0.2 0.2 Estimate of supplier default risks
Electric Supply Fund Risks $18.8
million
$26.8
million
Projected Supply Operations +
Hydro Stabilization Reserve Levels
$16.0
million
$17.5
million
Of the risks faced by the Electric Utility’s Supply Fund in FY 2018, the risk of a dry year with very
low hydroelectric output is normally the largest, accounting for nearly half the total cost of all
adverse outcomes. Since the utility’s costs for its hydroelectric resources are almost entirely
fixed, costs do not decline when the output of those resources are low, but the utility needs to
buy power to replace the lost output. The converse happens when hydroelectric output is
higher than average.
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Of the remaining risks for FY 2018, $3.2 million is related to the projected costs if transmission
cost increases are higher than staff’s current forecast. Another $2.4 million is related to the
possibility of drought-related changes to Western rates for CVP hydropower.
As shown in Figure 10, the Supply Operations Reserve will drop below the minimum reserve
guidelines by as much as $3.9 million over the course of the forecast period. In addition, as
shown in Figure 11, the combined hydro stabilization and supply operations reserves will drop
below the risk assessment level. It is acceptable under the Electric Utility Reserves Management
Practices to drop below minimum reserve guidelines so long as Council approves the Financial
Plan. Staff recommends proceeding with this plan for two reasons: first, due to larger than
normal rains and snowpack to date, there is a chance of better hydro conditions will result in
higher reserves, and second, the presence of the Electric Special Projects Reserve means that a
small temporary shortfall in the Supply Operations Reserve should not affect the Electric
Utility’s bond ratings. In the event drought re-emerges, staff will re-evaluate its projections for
FY 2019 and may recommend additional rate increases or the adoption of a hydroelectric rate
adjuster.
Figure 10: Electric Supply Operations Reserve Adequacy
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Figure 11: Adequacy of Supply Operations and Hydro Stabilization Reserves, Combined
Table 9 summarizes the risk assessment calculation for the Distribution Operations Reserve
through FY 2022. As shown in Figure 12, the Distribution Operations Reserve will stay within the
reserve guidelines over the course of the forecast period. The risk assessment includes the
revenue shortfall that could accrue due to:
1.Lower than forecasted sales revenue; and
2.An increase of 10% of planned system improvement CIP expenditures for the budget year.
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Table 9: Electric Distribution Fund Risk Assessment ($000)
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Total non-commodity revenue $46,877 $49,044 $48,931 $48,812 $49,612
Max. revenue variance, previous ten years 8% 8% 8% 8% 8%
Risk of revenue loss $3,700 $3,871 $3,862 $3,852 $3,916
CIP Budget $15,574 $15,869 $25,150 $19,048 $17,449
CIP Contingency @10% $1,557 $1,587 $2,515 $1,905 $1,745
Total Risk Assessment value $5,257 $5,458 $6,377 $5,757 $5,661
Figure 12: Electric Distribution Operations Reserve Adequacy
As shown in Figure 13, the CIP Reserve is projected to be at or above the proposed revised
minimum and maximum guidelines over the forecast period. While the Reserve is above
maximum levels in later years, CIP Commitments are nearly impossible to project that far out,
and adjustments to the reserve can be made in future years.
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Figure 13: Electric CIP Reserve Adequacy
SECTION 5G: LONG-TERM OUTLOOK
This forecast covers the period from FY 2018 through FY 2027, but various long-term
developments may create new costs for the utility over the next 5 to 35 years. While it is
challenging to accurately forecast the impact these events will have on the utility’s costs, it is
worth noting them as future milestones and keeping them in mind for long-term planning
purposes.
For the supply portfolio, the 2020s will see a number of notable events. The contract with
Western for power from the CVP will expire in 2024. Determining the future relationship with
Western after 2024 will be important in the years leading up to the contract expiration,
especially because this resource represents nearly 40% of the electric portfolio, and is the
utility’s largest source of carbon-free electricity. The utility’s three earliest and lowest cost
renewable contracts will also begin expiring around that time, with the first contract expiring in
2021 and the last in 2028. These three contracts, plus one more expiring in 2030, currently
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provide 17% to 18% of the energy for the utility’s supply portfolio at prices under $65 per
megawatt-hour (MWh). It is difficult to know what renewable energy prices will be when those
contracts expire. Although recent prices have been in that range (or even lower), and costs
may decrease in the future, current renewable projects also benefit from a wide range of tax
and other incentives that may or may not be available in the 2020s and beyond. However, staff
is in the process of procuring a replacement for the contract expiring in 2021 at a lower price
than any of the City’s current renewable contracts.
The costs of the Calaveras hydro project will also change in the 2020s, with debt service costs
dropping by half in 2025 as some of the debt is paid off, and all debt retired by the end of 2032
(assuming no new debt is issued). The project will only be 40 years old at that time. Calaveras
debt service represents roughly 70% of the annual costs of that project (and nearly 7% of the
utility’s total costs), so when the debt is retired, the project could be a low-cost asset for the
utility, providing carbon-free energy equal to 13% of the Electric Utility’s supply needs in an
average year.
Another factor that may affect the utility’s supply costs in the long run is carbon allowance
revenue. Currently the Electric Utility receives $3 to 5 million per year in revenue from
allocated carbon allowances under the State’s cap-and-trade program. It uses that revenue to
pay for energy efficiency and to purchase renewable energy to support the utility’s Carbon
Neutral Plan. That revenue source is expected to continue through 2020, but provisions for
whether or not these allocations continue past 2020 are still being discussed. If the Electric
Utility no longer received these allowances, it would have to fund these programs from sales
revenues.
Transmission costs are also continuing to rise. If the State continues to increase mandates or
incentives for renewable energy development, integrating these new projects into the
transmission grid will be an ever increasing challenge, some costs of which will be borne by Palo
Alto. The planned expansion of the CAISO to a larger regional grid control area may result in
additional transmission costs that could further increase CPAU’s transmission costs. In addition
to the costs of new transmission lines that will need to be built, flexible resources will be
required to balance rapid changes in wind or solar output throughout the day. Palo Alto will
likely bear some of the costs of these new lines and resources. CPAU is also currently
investigating installing a second transmission interconnection for Palo Alto, which could be
funded by the Electric Special Projects reserve.
Over the next several years the Electric Utility will continue to execute its usual monitoring,
repair, and replacement routine for the distribution system, but will also begin the rollout of
various smart grid technologies. The utility continues to monitor the growth of electric vehicle
ownership and gas-to-electric fuel switching in Palo Alto. In the next 10 to 20 years, these
factors may begin to create notable increases in electric consumption and have a variety of
impacts on the distribution system. As housing stock is turned over, however, stricter building
codes may help to counteract load growth, as may increasing numbers of rooftop solar
installations. The utility has already started to take some of these factors into account in its
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long-term planning processes, but will need to continue to incorporate them into its planning
methodologies.
Over the long term, it is conceivable that electricity could replace natural gas and petroleum
almost entirely. Many, if not most, vehicles would use electricity, though hydrogen is another
potential fuel source under development and other technologies might be developed. Initial
analysis of these types of scenarios is being undertaken in the context of the Sustainability and
Climate Action Plan (S/CAP) development process. These types of scenarios require careful
planning for the associated load growth to make sure the distribution system did not end up
overloaded, or conversely, to avoid over investment, and the evaluation of changes to utility
distribution system management to accommodate integration of the various technologies
involved in electrification.
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SECTION 6: DETAILS AND ASSUMPTIONS
SECTION 6A: ELECTRICITY PURCHASES
As shown in Figure 14 the utility gets roughly 50% of its energy from hydroelectric projects in a
normal year (FY 2014 and FY2015 were dry). Contracts with renewable sources made up just
over 30% of the portfolio in FY 2016, and are projected to rise to roughly 50% starting in FY
2017. The remainder comes from unspecified market sources. Under the City’s Carbon Neutral
Plan, CPAU purchases RECs corresponding to the amount of market energy it purchases.
Figure 14: Electricity Supply by Source
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Figure 15 shows the historical and projected costs for the electric supply portfolio,5 as well as
average and actual hydroelectric generation.6 Electric supply costs increased in FY 2013, FY
2014, and FY 2015 due to the drought, which reduced the amount of generation from
hydroelectric resources. Costs decreased slightly in FY 2016 due to better than expected market
purchase costs. Even if hydroelectric generation returns to normal levels, costs will increase in
FY 2017 due to increases in renewable energy costs as various renewable projects come online
to fulfill the City’s carbon neutral and RPS goals. Transmission charges are also projected to
increase as new transmission lines are built throughout California to accommodate new
renewable projects. In total, electric supply costs are projected to increase to $77.8 million by
FY 2020, at which point all currently contracted renewable projects will be online. Supply costs
are only projected to change slightly in subsequent years.
Figure 15: Electric Supply Portfolio Costs, Historical and Projected
5 Costs are shown net of wholesale revenues, and cannot be directly compared with the electric supply purchase
figures shown in Appendix A: Electric Utility Financial Forecast Detail 6 Average hydroelectric generation increased in January of 2015 due to an increase in the utility’s contractual share
of the output of the CVP Federal hydropower project.
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SECTION 6B: OPERATIONS
CPAU’s Electric Utility operations include the following activities:
•Administration, including financial management of charges allocated to the Electric
Utility for administrative services provided by the General Fund and for Utilities
Department administration, as well as debt service and other transfers. Additional detail
on Electric Utility debt service is provided in Section 6D (Debt Service)
•Customer Service
•Engineering work for maintenance activities (as opposed to capital activities)
•Operations and Maintenance of the distribution system; and
•Resource Management
Appendix C: Description of Electric utility Operational Activities includes detailed descriptions of
the work associated with each of these activities.
From FY 2012 to FY 2015, Operations costs increased by less than 1% per year on average. In
2013 there was a one-time increase in expenses associated with an adjustment to the value of
the City’s investment portfolio. Over the forecast horizon, excluding debt service and transfers,
costs are projected to increase by roughly 2 to 4 % per year.
Figure 16: Historical and Projected Electric Utility Operational Costs
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SECTION 6C: CAPITAL IMPROVEMENT PROGRAM (CIP)
CIP spending for FY 2018 through FY 2023 is projected to decrease somewhat from last year’s
forecast, primarily due to the removal of some major one-time projects, including service
connection upgrades for a few major customers. Other projects still slated to continue are pole
replacements related to the Fiber to the Home project, and Smart Grid upgrades. Ongoing
capital investment in the electric distribution system is also increasing. This forecast assumes
that smart grid projects are financed from the Electric Special Projects Reserve and with
additional funding from the water and gas funds, but it would also be possible to use bond
financing.
Excluding the one-time projects listed above, the CIP plan for FY 2018 to FY 2022 is primarily
funded by utility rates, but other sources of funds include connection fees (for Customer
Connections), phone and cable companies (primarily for undergrounding), and other funds (for
smart grid). The details of the CIP budget will be available in the Proposed FY 2018 Utilities
Capital Budget. Figure 16 shows the adopted / proposed / projected capital budgets as well as
actual and projected capitalized administrative overhead associated with the program.
Figure 17: Electric Utility CIP Spending
SECTION 6D: DEBT SERVICE
The Electric Utility’s annual debt service is $100,000 per year. The Electric Utility currently
makes payment on one bond issuance, the 2007 Electric Utility Clean Renewable Energy Tax
Credit Bonds, Series A. This $1.5 million bond issuance was to fund a portion of the construction
costs of solar demonstration projects at the Municipal Services Center, Baylands Interpretive
Center, and Cubberley Community Center. The capacity of these projects totaled 250 kW. In
exchange for funding part of the construction costs Electric Utility receives the RECs from these
projects. The bonds were Clean Renewable Energy Bonds (CREBs), meaning they are interest
free (the investors receive a tax credit from the federal government). This bond issuance is
secured by the net revenues of the Electric Utility. Debt service for this bond continues through
2021, and for the financial forecast period is as follows:
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Table 10: Electric Utility Debt Service ($000)
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
2007 Clean Renewable
Energy Bonds 100 100 100 100 100 -
The 2007 bonds include a covenant stating that the Electric Utility will maintain a debt coverage
ratio of 125% of debt service. The current Financial Plan maintains compliance with these
covenants throughout the forecast period, as shown in Appendix C.
The Electric Utility’s reserves and net revenue are also pledged as security for the bond
issuances listed in Table 11, even though the Electric Utility is not responsible for the debt
service payments. The Electric Utility’s reserves or net revenues would only be called upon if
the responsible utilities are unable to make their debt service payments. Staff does not
currently foresee this occurring.
Table 11: Other Issuances Secured by Electric Utility’s Revenues or Reserves
Bond Issuance Responsible Utilities Annual Debt
Service ($000)
Secured by Electric Utility’s:
Net Revenues Reserves
1995 Utility Revenue Bonds, Series A Storm Drain $680 Yes No
1999 Utility Revenue Bonds, Series A Storm Drain
Wastewater Collection
Wastewater Treatment
$1,207 No Yes
2009 Water Revenue Bonds (Build
America Bonds) Water $1,977* No Yes
2011 Utility Revenue Refunding
Bonds, Series A
Gas
Water $1,457 No Yes
*Net of Federal interest subsidy
SECTION 6E: EQUITY TRANSFER
The City calculates the equity transfer from its Electric Utility based on a methodology adopted
by Council in 2009, which has remained unchanged since then.7 Each year it is calculated
according to the 2009 Council-adopted methodology, and does not require additional Council
action.
SECTION 6F: WHOLESALE REVENUES AND OTHER REVENUES
The Electric Utility receives most of its revenues from sales of electricity, but about 13% comes
from other sources. Of these other sources, about a third represent wholesale “revenues” that
are included solely for accounting purposes. These revenues have offsetting electric supply
7 For more detail on the ordinance adopting the 2009 transfer methodology, see CMR 280:09, Budget Adoption
Ordinance for Fiscal Years 2009 and 2010; and CMR 260:09, Finance Committee Report explaining proposed
changes to equity transfer methodology.
35 | Page
purchase costs, and do not normally affect the utility’s net position. Of the remaining revenues,
the largest revenue sources are interest on reserves, connection fees for new or replacement
electric services, and carbon allowance revenues associated with the State’s cap-and-trade
program. In FY 2016 these sources represented roughly 50% of revenue from sources other
than electricity sales. The remaining FY 2016 revenues consisted of a variety of one-time
transfers.
Revenues from connection fees have more than doubled since FY 2009. Revenue from these
sources decreased slightly during the recession, but has increased substantially since then,
peaking in FY 2014. Staff is forecasting slightly lower revenue from this source in subsequent
years.
Carbon allowance revenues are projected to stay stable through the forecast period, as is
interest income. However, both of these revenue sources are subject to some uncertainty. The
State’s cap-and-trade program regulations only describe the program through 2020. This
forecast assumes the program will remain in place with similar program design following 2020,
but that may not be the case. CARB is in the process of establishing post-2020 rules.
The forecast for interest income assumes current interest rates continue and there are no
major reserve reductions aside from what is anticipated in this Financial Plan. If interest rates
rise, interest income could increase, and if reserves decreased (due to drought or a withdrawal
from the ESP reserve for a major project), interest income would decrease.
SECTION 6G: SALES REVENUES
Sales revenue projections are based on the load forecast in Section 5A: Load Forecast and the
projected rate changes shown in Figure 7. As discussed in Section 5A, sales revenues for this
utility stay relatively stable due to the mild climate in Palo Alto, but decreased significantly in
FY 2017. In addition, Palo Alto is a built out City, with incremental growth in population and
relatively stable commercial customer loads.
36 | Page
SECTION 7: COMMUNICATIONS PLAN
CPAU communication methods include use of the Utilities website, utility bill inserts, messaging
on bills and envelopes, email newsletters, print ads in local publications, videos and
participation in community outreach events. The FY 2018 Electric Utility communications
strategy covers these primary areas: rates, efficiency, renewables, operations, infrastructure,
safety, and changes to utility economic conditions in the wake of the drought.
In FY 2018, CPAU is proposing an 12% increase in electric utility rates. Prior to FY 2017, electric
utility rates had not increased since 2009, as the City has been drawing down reserves from the
Electric Fund. The rate increase was necessary last year and again in FY 2018, as these reserves
are below the minimum reserve level. Communications will focus on the reasons why a rate
increase is necessary, and how this percentage has been impacted due to the drought,
renewable projects, capital improvement and other costs. Palo Alto purchases a significant
portion of its electricity from hydroelectric resources. Severe drought conditions over the past
few years reduced available hydroelectric supplies, requiring the City to purchase more costly
replacement electric supplies. Since the State received a great deal of precipitation in the latter
part of FY 2017, communications staff will now focus messaging on how increased hydroelectric
supplies will impact and potentially change the forecast for electric rates moving forward, at
least in the short-term.
Reliability and safety are primary concerns for CPAU and City Council has placed increasing
emphasis on capital improvement investments for utility infrastructure. In order to maintain
system integrity, continued capital improvement costs are necessary. Deferring such costs to
future years would not be prudent, as deferred investment in maintenance, operations and
capital improvement upgrades could potentially jeopardize the safety and reliability of the
electric utility system. Despite these costs and increasing rates, CPAU’s rates remain lower than
the neighboring community average, including for municipal and investor-owned utilities
(PG&E). Keeping costs low is one of the benefits CPAU offers its customers as a public utility
provider.
CPAU will continue to communicate about the City’s carbon neutral electric supply portfolio.
Outreach includes apprising the public of major renewable energy purchase agreements, which
contribute toward Palo Alto’s long-term energy security and commitment to sustainability.
Recent power purchase agreements have allowed CPAU to procure long-term renewable
electric supplies at low costs. While upfront capital costs to bring these renewable projects
online may initially contribute towards some increase in CPAU’s electric rates, these higher
costs are expected to taper off once the projects begin commercial operations. CPAU will
highlight these environmental attributes and value in our communications.
Throughout the year, communications staff promotes CPAU’s electric efficiency services,
rebates and local renewable energy programs. From January 2015 to December 2016, CPAU
encouragedcommunity participation in the Georgetown University Energy Prize competition, a
friendly, national campaign for energy efficiency. This two-year campaign encouraged the
37 | Page
community to reduce energy use and compete for a $5 million prize. Within the past one to two
years, CPAU launched new programs thatallow customers to better understand and manage
their energy use. These programs include the Home Efficiency Genie; a free utility bill analysis
service with option for a subsidized in-depth home energy assessment; and an online utility
portal for customers to view consumption history, learn about efficiency tips and CPAU
programs they can take advantage of for home energy efficiency.
38 | Page
APPENDICES
Appendix A: Electric Utility Financial Forecast Detail
Appendix B: Electric Utility Reserves Management Practices
Appendix C: Description of Electric utility Operational Activities
Appendix D: Samples of Recent Electric Utility Outreach Communications
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APPENDIX A: ELECTRIC UTILITY FINANCIAL FORECAST DETAIL
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1 FISCAL YEAR FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
2
3 ELECTRIC LOAD
4 Purchases (MWh)969,519 976,319 980,894 979,005 977,292 945,703 960,601 940,860 938,688 936,402 934,369 934,369 934,369 934,369 934,369 934,369
5 Sales (MWh)942,562 946,841 950,784 936,773 937,157 906,562 908,459 907,858 905,762 903,556 901,594 901,594 901,594 901,594 901,594 901,594
6
7 BILL AND RATE CHANGES
8 System Average Rate ($/kWh)0.1156$ 0.1154$ 0.1164$ 0.1158$ 0.1156$ 0.1233$ 0.1407$ 0.1506$ 0.1506$ 0.1506$ 0.1516$ 0.1553$ 0.1568$ 0.1579$ 0.1589$ 0.1600$
9 Change in System Average Rate -1%0%1%0%0%10%14%7%0%0%1%2%1%1%1%1%
10 Change in Average Residential Bill -1%-4%-1%-5%3%10%11%6%-1%-1%0%2%1%0%0%0%
11
12 STARTING RESERVES
13 Reappropriations (Non-CIP)343,000 1,886,000 305,000 - - - - - - - - - - - - -
14 Commitments (Non-CIP)1,593,000 2,737,000 3,528,000 3,164,000 3,102,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000
15 Restricted for Debt Service - - - - - - - - - - - - - - - -
16 Emergency Plant Replacement 1,000,000 1,000,000 1,000,000 1,000,000 - - - - - - - - - - - -
17 Central Valley Project Reserve 305,000 314,000 313,000 329,000 - - - - - - - - - - - -
18 Underground Loan Reserve 736,000 742,000 738,000 734,000 730,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000
19 Public Benefits Reserves 3,139,000 1,149,000 2,197,000 2,064,000 2,574,000 1,839,000 1,330,970 739,050 279,587 94,959 - - - - - -
20 Electric Special Projects Reserve 55,558,000 50,320,000 51,838,000 51,838,000 51,838,000 51,838,000 41,665,260 41,525,693 41,192,360 42,859,027 46,192,360 44,665,260 44,665,260 44,665,260 44,665,260 44,665,260
21 Hydro Stabilization Reserve - - - - 17,000,000 11,400,000 2,400,000 - - - - - - - - -
22 Capital Reserves - - - - - - - - - - - - - - - -
23 Rate Stabilization Reserves 66,331,000 74,609,000 69,029,000 70,049,000 14,411,000 9,011,000 3,600,000 - - - - - - - - -
24 Operations Reserves - - - - 22,498,000 21,850,000 21,570,031 28,477,295 31,328,331 31,984,129 32,727,128 36,734,340 36,600,128 36,226,077 38,957,005 40,470,904
25 Unassigned - - - - - - - - 915,938 (0) 0 0 - - - -
26 TOTAL STARTING RESERVES 129,005,000 132,757,000 128,948,000 129,178,000 112,153,000 100,444,000 75,072,262 75,248,039 78,222,216 79,444,115 83,425,489 85,905,601 85,771,388 85,397,337 88,128,265 89,642,164
27
28 REVENUES
29 Net Sales 109,309,318 109,974,337 110,246,264 108,873,377 108,312,917 111,743,300 127,804,839 136,731,078 136,415,457 136,083,191 136,693,648 139,980,910 141,364,099 142,326,185 143,276,966 144,246,140
30 Wholesale Revenues 7,189,218 6,635,790 6,010,409 6,267,000 5,534,000 11,422,865 16,360,219 13,481,291 15,723,490 16,405,058 17,841,074 17,242,448 17,467,779 17,643,588 17,905,633 19,002,541
31 Other Revenues and Transfers In 7,027,230 9,624,213 13,669,185 9,688,480 10,129,274 10,013,826 14,509,829 12,934,637 21,875,693 18,854,966 15,870,577 12,946,907 13,320,702 13,772,401 14,201,802 14,631,713
32 TOTAL REVENUES 123,525,766 126,234,340 129,925,858 124,828,858 123,976,191 133,179,991 158,674,887 163,147,006 174,014,640 171,343,215 170,405,299 170,170,265 172,152,580 173,742,173 175,384,402 177,880,394
33
34 EXPENSES
35 Electric Supply Purchases 58,724,136 61,313,637 68,785,977 80,022,010 79,114,644 84,371,202 87,986,828 89,065,816 90,840,796 90,727,608 92,220,793 91,758,113 92,924,517 93,903,644 95,224,116 96,464,584
36 Operating Expenses
37 Administration
38 Allocated Charges 3,416,423 4,399,674 4,139,837 4,511,222 5,148,470 3,376,852 3,461,365 3,547,989 3,636,783 3,727,743 3,820,946 3,916,481 4,014,404 4,114,776 4,217,658 4,323,112
39 Rent 3,839,201 3,875,836 4,051,044 4,147,742 4,997,101 5,121,102 5,274,735 5,432,977 5,595,966 5,763,845 5,936,761 6,114,864 6,298,310 6,487,259 6,681,877 6,882,333
40 Debt Service 8,902,751 9,265,736 9,020,651 9,037,000 8,985,994 8,889,090 8,868,768 8,471,091 8,480,048 8,444,315 8,453,684 9,299,046 8,893,834 4,898,677 4,896,047 4,894,784
41 Transfers and Other Adjustments 11,603,695 16,797,054 11,329,973 11,003,993 5,920,297 12,078,949 13,226,214 13,275,892 14,159,863 14,163,159 14,166,536 14,169,998 14,173,547 14,177,184 14,180,913 14,184,734
42 Subtotal, Administration 27,762,069 34,338,299 28,541,506 28,699,957 25,051,862 29,465,993 30,831,082 30,727,949 31,872,660 32,099,063 32,377,926 33,500,388 33,380,095 29,677,896 29,976,494 30,284,963
43 Resource Management 2,654,024 3,024,268 3,541,524 2,138,615 2,035,834 3,240,541 3,356,945 3,476,405 3,600,582 3,707,001 3,803,153 3,902,819 4,005,096 4,110,053 4,217,761 4,328,292
44 Demand Side Management 4,541,531 3,529,529 3,187,875 3,491,470 3,723,605 3,690,063 3,773,952 3,639,388 3,357,212 3,297,042 3,255,251 3,339,598 3,384,926 3,431,076 3,478,065 3,525,906
45 Operations and Mtc 9,288,490 9,601,481 9,488,627 10,716,881 11,514,846 13,702,158 14,158,618 14,626,674 15,111,694 15,541,894 15,941,538 16,354,711 16,778,592 17,213,460 17,659,598 18,117,300
46 Engineering (Operating)1,057,783 1,114,945 1,102,008 1,230,160 1,578,022 1,840,073 1,889,674 1,940,499 1,992,737 2,044,182 2,095,630 2,148,473 2,202,649 2,258,191 2,315,133 2,373,512
47 Customer Service 1,908,493 2,007,322 2,032,231 1,548,851 1,538,363 2,212,967 2,297,149 2,383,613 2,473,714 2,549,014 2,615,594 2,684,750 2,755,735 2,828,597 2,903,385 2,980,150
48 Allowance for Unspent Budget - - - - - (1,461,604) (1,508,656) (1,556,914) (1,606,879) (1,651,905) (1,694,232) (1,737,944) (1,782,784) (1,828,782) (1,875,967) (1,924,370)
49 Subtotal, Operating Expenses 47,212,389 53,615,844 47,893,770 47,825,933 45,442,532 52,690,192 54,798,765 55,237,614 56,801,721 57,586,290 58,394,860 60,192,796 60,724,308 57,690,491 58,674,470 59,685,754
50 Capital Program Contribution 13,837,241 15,113,859 13,016,111 14,005,915 11,128,015 21,490,335 15,573,950 15,869,398 25,150,225 19,047,944 17,449,100 18,353,570 18,877,806 19,417,110 19,971,917 20,542,674
51 TOTAL EXPENSES 119,773,766 130,043,340 129,695,858 141,853,858 135,685,191 158,551,729 158,359,542 160,172,828 172,792,742 167,361,841 168,064,753 170,304,478 172,526,631 171,011,245 173,870,503 176,693,012
52 22,058,000.0 26,659,398 15,868,470 16,320,285 16,784,774
53 ENDING RESERVES
54 Reappropriations (Non-CIP)1,886,000 305,000 - - - - - - - - - - - - - -
55 Commitments (Non-CIP)2,737,000 3,528,000 3,164,000 3,102,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000 3,777,000
56 Restricted for Debt Service - - - - - - - - - - - - - - - -
57 Emergency Plant Replacement 1,000,000 1,000,000 1,000,000 - - - - - - - - - - - - -
58 Central Valley Project Reserve 314,000 313,000 329,000 - - - - - - - - - - - - -
59 Underground Loan Reserve 742,000 738,000 734,000 730,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000 729,000
60 Public Benefits Reserves 1,149,000 2,197,000 2,064,000 2,574,000 1,839,000 1,330,970 739,050 279,587 94,959 - - - - - - -
61 Electric Special Projects Reserve 50,320,000 51,838,000 51,838,000 51,838,000 51,838,000 41,665,260 41,525,693 41,192,360 42,859,027 46,192,360 44,665,260 44,665,260 44,665,260 44,665,260 44,665,260 44,665,260
62 Hydro Stabilization Reserve - - - 17,000,000 11,400,000 2,400,000 - - - - - - - - - -
58 Capital Reserve - - - - - - - - - - - - - - - -
59 Rate Stabilization Reserve 74,609,000 69,029,000 70,049,000 14,411,000 9,011,000 3,600,000 - - - - - - - - - -
60 Operations Reserve - - - 22,498,000 21,850,000 21,570,031 28,477,295 31,328,331 31,984,129 32,727,128 36,734,340 36,600,128 36,226,077 38,957,005 40,470,904 41,658,286
61 Unassigned - - - - - - - 915,938 (0) 0 0 - - - - -
62 TOTAL ENDING RESERVES 132,757,000 128,948,000 129,178,000 112,153,000 100,444,000 75,072,262 75,248,039 78,222,216 79,444,115 83,425,489 85,905,601 85,771,388 85,397,337 88,128,265 89,642,164 90,829,546
63
64 OPERATIONS RESERVE
65 Min (60 days of non-capital expenses)23,548,140 23,951,699 25,106,757 25,973,915 26,332,908 26,857,109 27,090,134 27,593,969 27,942,086 28,353,037 28,150,419 28,667,754 29,179,891
66 Target (90 days of non-capital expenses)33,151,752 33,702,675 35,379,286 36,622,631 37,102,294 37,828,286 38,116,222 38,808,965 39,266,545 39,816,759 39,444,963 40,151,398 40,848,296
67 Max (120 days of non-capital expenses)42,755,364 43,453,651 45,651,816 47,271,347 47,871,681 48,799,463 49,142,310 50,023,961 50,591,003 51,280,480 50,739,507 51,635,042 52,516,702
68 Risk Assessment Value 4,645,297 4,373,014 5,295,861 5,257,153 5,457,746 6,376,895 5,757,260 5,660,508 6,010,401 6,256,453 6,469,660 6,600,181 6,733,749
69
70 DEBT SERVICE COVERAGE RATIO
71 Net Revenues (125% of Debt Service)1090% 1140% 1193% 1315%1286% 1442% 1510% 1603% 1641% 1656% 1682% 1534% 1628% 2995% 3043% 3090%
72 Available Reserves (5x Debt Service)*14.4 13.5 14.0 12.1 10.8 8.0 8.1 8.8 8.9 9.4 9.7 8.8 9.2 17.2 17.5 17.8
*For the purposes of debt covenants, the unrestricted reserves of other utilities may be counted toward the available reserves for meeting this measure. A ratio below 5x means that this utility is relying on the reserves of other utilities to meet its debt covenants.
6053706
1 FISCAL YEAR FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
2
3 REVENUES
4 Net Sales 88%87%85%87%87%84%81%84%78%79%80%82%82%82%82%81%
5 Other Revenues and Transfers In 12%13%15%13%13%16%19%16%22%21%20%18%18%18%18%19%
6 TOTAL REVENUES 100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%
7
8 EXPENSES
9 Commodity Purchases 46%46%52%55%54%50%46%47%45%46%46%46%46%47%47%47%
10 Operating Expenses
11 Administration
12 Allocated Charges 3%3%3%3%4%2%2%2%2%2%2%2%2%2%2%2%
13 Rent 3%3%3%3%4%3%3%3%3%3%4%4%4%4%4%4%
14 Debt Service 7%7%7%6%7%6%6%5%5%5%5%5%5%3%3%3%
15 Transfers and Other Adjustments 10%13%9%8%4%8%8%8%8%8%8%8%8%8%8%8%
16 Subtotal, Administration 23%26%22%20%18%19%19%19%18%19%19%20%19%17%17%17%
17 Resource Management 2%2%3%2%2%2%2%2%2%2%2%2%2%2%2%2%
18 Operations and Mtc 8%7%7%8%8%9%9%9%9%9%9%10%10%10%10%10%
19 Engineering (Operating)1%1%1%1%1%1%1%1%1%1%1%1%1%1%1%1%
20 Customer Service 2%2%2%1%1%1%1%1%1%2%2%2%2%2%2%2%
21 Allowance for Unspent Budget 0%0%0%0%0%-1%-1%-1%-1%-1%-1%-1%-1%-1%-1%-1%
22 Subtotal, Operating Expenses 36%39%34%31%31%31%32%32%31%32%33%33%33%32%32%32%
23 Capital Program Contribution 12%12%10%10%8%14%10%10%15%11%10%11%11%11%11%12%
24 TOTAL EXPENSES 94%96%97%96%93%94%88%89%90%90%89%90%90%90%90%90%
25
26 RISK ASSESSMENT DETAIL (SUPPLY FUND)
27 FISCAL YEAR FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
28 1. Load Net Revenue 77,428 652,853 1,208,477
29 2. Hydro Production: Western & Calaveras 9,314,822 9,050,313 3,397,119
30 3. Renewable Production: Landfill & Wind & Solar 375,755 743,945 539,073
31 4. Carbon Neutral Cost 331,630 303,022 114,983
32 5. Market Price 909,196 775,584 1,138,589
33 6. Local Capacity 475,962 408,388 446,695
34 7. Transmission/CAISO 4,555,915 3,741,647 2,806,120
35 8. Plant Outage 1,000,000 1,000,000 1,000,000
36 9. Western Cost 3,130,000 2,704,738 2,973,619
37 10. Regulatory & Legal - - -
38 11. Supplier Default - - -
39 TOTAL 20,170,708 19,380,490 13,624,674
40
Supply Operations + Hydro Stabilization
Reserves, % of Risk Assessment 196%172%176%
41
42 RISK ASSESSMENT DETAIL (DISTRIBUTION FUND)
43 FISCAL YEAR FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
44 Distribution Revenue Variance 3,244,706 3,260,213 3,146,827 3,699,758 3,870,807 3,861,873 3,852,466 3,915,598 4,175,044 4,368,672 4,527,949 4,602,989 4,679,481
45 10% CIP Program Contingency 1,400,592 1,112,802 2,149,034 1,557,395 1,586,940 2,515,022 1,904,794 1,744,910 1,835,357 1,887,781 1,941,711 1,997,192 2,054,267
46 Total Risk Asssessment Value 4,645,297 4,373,014 5,295,861 5,257,153 5,457,746 6,376,895 5,757,260 5,660,508 6,010,401 6,256,453 6,469,660 6,600,181 6,733,749
47 Projected Operations Reserve 22,498,000 21,850,000 21,570,031 28,477,295 28,507,266 31,984,129 32,727,129 36,734,340 36,600,128 36,226,077 38,957,005 40,470,904 41,658,286
48 Operations Reserve, % of Risk Value 484%500%407%542%522%502%568%649%609%579%602%613%619%
49
44 SUPPLY OPERATIONS RESERVE
45 Min (60 days of non-capital expenses)- - - 15,208,552 15,033,113 16,240,825 16,860,400 17,001,701 17,325,251 17,328,711 17,602,415 17,709,305 17,862,689 17,395,887 17,642,251 17,876,454
46 Target (90 days of non-capital expenses)- - - 22,812,829 22,549,669 24,361,237 25,290,599 25,502,552 25,987,877 25,993,067 26,403,622 26,563,958 26,794,033 26,093,831 26,463,376 26,814,681
47 Max (120 days of non-capital expenses)- - - 30,417,105 30,066,225 32,481,649 33,720,799 34,003,403 34,650,502 34,657,422 35,204,830 35,418,611 35,725,378 34,791,775 35,284,501 35,752,908
48
49 DISTRIBUTION OPERATIONS RESERVE
50 Min (60 days of non-capital expenses)- - - 8,339,587 8,918,586 8,865,932 9,113,516 9,331,206 9,531,858 9,761,423 9,991,554 10,232,781 10,490,348 10,754,532 11,025,503 11,303,437
51 Target (90 days of non-capital expenses)- - - 10,338,923 11,153,006 11,018,050 11,332,032 11,599,742 11,840,409 12,123,155 12,405,343 12,702,586 13,022,725 13,351,132 13,688,022 14,033,616
52 Max (120 days of non-capital expenses)- - - 12,338,259 13,387,426 13,170,167 13,550,548 13,868,279 14,148,960 14,484,888 14,819,131 15,172,392 15,555,102 15,947,732 16,350,541 16,763,794
53 Risk Assessment Value 4,645,297 4,373,014 5,295,861 5,257,153 5,457,746 6,376,895 5,757,260 5,660,508 6,010,401 6,256,453 6,469,660 6,600,181 6,733,749
54
55 DEBT SERVICE COVERAGE RATIO
56 Net Revenues (125% of Debt Service)1090%1140%1193%1315%1286%1442%1510%1603%1641%1656%1682%1534%1628%2995%3043%3090%
57 Available Reserves (5x Debt Service)*14.4 13.5 14.0 12.1 10.8 8.0 8.1 8.8 8.9 9.4 9.7 8.8 9.2 17.2 17.5 17.8
58 *For the purposes of debt covenants, the unrestricted reserves of other utilities may be counted toward the available reserves for meeting this measure. A ratio below 5x means that this utility is relying on the reserves of other utilities to meet its debt covenants.
ELECTRIC UTILITY FINANCIAL PLAN
June 16, 2014 43 | Page
APPENDIX B: ELECTRIC UTILITY RESERVES MANAGEMENT PRACTICES
(This section includes the proposed amendments to this section. This section will be finalized
following Council adoption of the final amended version.)
The following reserves management practices are used when developing the Electric Utility
Financial Plan:
Section 1. Definitions
a)“Financial Planning Period” – The Financial Planning Period is the range of future fiscal
years covered by the Financial Plan. For example, if the Financial Plan delivered in
conjunction with the FY 2015 budget includes projections for FY 2015 to FY 2019,
FY 2015 to FY 2019 would be the Financial Planning Period.
b)“Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers
to the Utility’s Unrestricted Net Assets.
c)“Net Assets” - The Government Accounting Standards Board defines a Utility’s Net
Assets as the difference between its assets and liabilities.
d)“Unrestricted Net Assets” - The portion of the Utility’s Net Assets not invested in capital
assets (net of related debt) or restricted for debt service or other restricted purposes.
Section 2. Supply Fund Reserves
The Electric Supply Fund Balance is reserved for the following purposes:
a)For existing contracts, as described in Section 4 (Reserve for Commitments)
b)For operating budgets reappropriated from previous years, as described in Section 5
(Reserve for Reappropriations)
c)For special projects for the benefit of the Electric Utility ratepayers, as described in
Section 6 (Electric Special Projects Reserve)
d)For year to year balancing of costs associated with the Electric Utility’s hydroelectric
resources, as described in Section 7 (Hydroelectric Stabilization Reserve)
e)For rate stabilization, as described in Section 1.d) (Rate Stabilization Reserves)
f)For operating contingencies, as described in Section 12 (Operations Reserves)
g)Any funds not included in the other reserves will be considered Unassigned Reserves
and shall be returned to ratepayers or assigned a specific purpose as described in
Section 13 (Unassigned Reserves).
Section 3. Distribution Fund Reserves
The Electric Distribution Fund Balance is reserved for the following purposes:
a)For existing contracts, as described in Section 4 (Reserves for Commitments)
b)For operating and capital budgets reappropriated from previous years, as described in
Section 5 (Reserves for Reappropriations)
c)As an offset to underground loan receivables, as described in Section 8 (Underground
Loan Reserve)
d)To hold Public Benefit Program funds collected but not yet spent, as described in Section
9 (Public Benefits Reserve)
ELECTRIC UTILITY FINANCIAL PLAN
June 16, 2014 44 | Page
e) For cash flow management and contingencies related to the Electric Utility’s Capital
Improvement Program (CIP), as described in Section 10 (CIP Reserve)
f) For rate stabilization, as described in Section 1.d) (Rate Stabilization Reserves)
g) For operating contingencies, as described in Section 12 (Operations Reserves)
h) Any funds not included in the other reserves will be considered Unassigned Reserves
and shall be returned to ratepayers or assigned a specific purpose as described in
Section 14 (Unassigned Reserves).
Section 4. Reserves for Commitments
At the end of each fiscal year the Electric Supply Fund and Electric Distribution Fund
Reserves for Commitments will be set to an amount equal to the total remaining spending
authority for all contracts in force for the Electric Supply Fund and Electric Distribution
Fund, respectively, at that time.
Section 5. Reserves for Reappropriations
At the end of each fiscal year the Electric Supply Fund and Electric Distribution Fund
Reserves for Reappropriations will be set to an amount equal to the amount of all remaining
capital and non-capital budgets that will be reappropriated to the following fiscal year for
each Fund in accordance with Palo Alto Municipal Code Section 2.28.090.
Section 6. Electric Special Projects Reserve
The Electric Special Projects Reserve (ESP Reserve) will be managed in accordance with the
policies and timelines set forth in Resolution 9206 (Resolution of the Council of the City of
Palo Alto Approving Renaming the Calaveras Reserve to the Electric Special Project Reserve
and Adoption of Electric Special Project Reserve Guidelines). These policies and timelines
are included from Resolution 9206 as amended to refer to the reserves structure set forth
in these Reserves Management Practices:
a) The purpose of the ESP Reserve is to fund projects that benefit electric ratepayers;
b) The ESP Reserve funds must be used for projects of significant impact;
c) Projects proposed for funding must demonstrate a need and value to electric
ratepayers. The projects must have verifiable value and must not be speculative, or
high-risk in nature;
d) Projects proposed for funding must be substantial in size, requiring funding of at least
$1 million;
e) The preferred projects to be funded by the ESP Reserve must be identified by end of
FY 2015;
f) Any uncommitted funds remaining at the end of FY 2020 will be transferred to the
Electric Supply Operations Reserve and the ESP Reserve will be closed; and
g) Funds may be used for analysis and pilot projects which would be the basis for planned
large projects.
Section 7. Hydroelectric Stabilization Reserve
Supply cost savings and surplus energy sales revenue associated with higher than average
generation from hydroelectric resources may be added to the Electric Supply Fund’s
Hydroelectric Stabilization Reserve by action of the City Council and held to offset higher
ELECTRIC UTILITY FINANCIAL PLAN
June 16, 2014 45 | Page
commodity supply costs during years of lower than average generation. Withdrawal of
funds from the Hydroelectric Stabilization Reserve requires action by the City Council.
Section 8. Underground Loan Reserve
At the end of each fiscal year, the Underground Loan Reserve will be adjusted by the
principal payments made against outstanding underground loans.
Section 9. Public Benefits Reserve
The Public Benefits Reserve will be increased by the amount of unspent Public Benefits
Revenues remaining at the end of each fiscal year. Expenditure of these funds requires
action by the City Council.
Section 10. CIP Reserve
The CIP Reserve is used to manage cash flow for capital projects and acts as a reserve for
capital contingencies. Staff will manage the CIP Reserve according to the following
practices:
a)The following guideline levels are set forth for the CIP Reserve. These guideline levels
are calculated for each fiscal year of the Financial Planning Period based on the levels of
CIP expense budgeted for that year.
Minimum Level 60 days of budgeted CIP expense
Maximum Level 120 days of budgeted CIP expense
b)Changes in Reserves: Staff is authorized to transfer funds between the CIP Reserve and
the Reserve for Commitments when funds are added to or removed from the Reserve
for Commitments as a result of a change in contractual commitments related to CIP
projects. Any other additions to or withdrawals from the CIP reserve require Council
action.
c)Minimum Level:
i)Funds held in the Reserve for Commitments may be counted as part of the CIP
Reserve for the purpose of determining compliance with the CIP Reserve minimum
guideline level.
ii)If, at the end of any fiscal year, the minimum guideline is not met, staff shall present
a plan to the City Council to replenish the reserve. The plan shall be delivered by the
end of the following fiscal year, and shall, at a minimum, result in the reserve
reaching its minimum level by the end of the next fiscal year. For example, if the CIP
Reserve is below its minimum level at the end of FY 2017, staff must present a plan
by June 30, 2018 to return the reserve to its minimum level by June 30, 2019. In
addition, staff may present, and the Council may adopt, an alternative plan that
takes longer than one year to replenish the reserve, or that does so in a shorter
period of time.
d)Maximum Level: If, at any time, the CIP Reserve reaches its maximum level, no funds
may be added to this reserve. If there are funds in this reserve in excess of the
maximum level staff must propose to transfer these funds to another reserve or return
them to ratepayers in the next Financial Plan. Staff may also seek City Council to
ELECTRIC UTILITY FINANCIAL PLAN
June 16, 2014 46 | Page
approve holding funds in this reserve in excess of the maximum level if they are held for
a specific future purpose related to the CIP.
Section 11. Rate Stabilization Reserves
Funds may be added to the Electric Supply or Distribution Fund’s Rate Stabilization Reserves
by action of the City Council and held to manage the trajectory of future year rate increases.
Withdrawal of funds from either Rate Stabilization Reserve requires action by the City
Council. If there are funds in either Rate Stabilization Reserve at the end of any fiscal year,
any subsequent Electric Utility Financial Plan must result in the withdrawal of all funds from
this Reserve by the end of the Financial Planning Period.
Section 12. Operations Reserves
The Electric Supply Fund and Electric Distribution Fund Operations Reserves are used to
manage normal variations in the costs of providing electric service and as a reserve for
contingencies. Any portion of the Electric Utility’s Fund Balance not included in the reserves
described in Section 4 to d) above will be included in the appropriate Operations Reserve
unless the reserve has reached its maximum level as set forth in Section 12 (e) below. Staff
will manage the Operations Reserves according to the following practices:
a) The following guideline levels are set forth for the Electric Supply Fund Operations
Reserve. These guideline levels are calculated for each fiscal year of the Financial
Planning Period based on the levels of Operations and Maintenance (O&M) and
commodity expense forecasted for that year in the Financial Plan.
Minimum Level 60 days of Supply Fund O&M and commodity expense
Target Level 90 days of Supply Fund O&M and commodity expense
Maximum Level 120 days of Supply Fund O&M and commodity expense
b) The following guideline levels are set forth for the Electric Distribution Fund Operations
Reserve. These guideline levels are calculated for each fiscal year of the Financial
Planning Period based on the levels of O&M expense forecasted for that year in the
Financial Plan.
Minimum Level 60 days of Distribution Fund O&M expense
Target Level 90 days of Distribution Fund O&M expense
Maximum Level 120 days of Distribution Fund O&M expense
c) Minimum Level: If, at the end of any fiscal year, the funds remaining in the Supply Fund
or Distribution Fund’s Operations Reserve are lower than the minimum level set forth
above, staff shall present a plan to the City Council to replenish the reserve. The plan
shall be delivered within six months of the end of the fiscal year, and shall, at a
minimum, result in the reserve reaching its minimum level by the end of the following
fiscal year. For example, if the Operations Reserve is below its minimum level at the end
of FY 2014, staff must present a plan by December 31, 2014 to return the reserve to its
minimum level by June 30, 2015. In addition, staff may present an alternative plan that
takes longer than one year to replenish the reserve.
d) Target Level: If, at the end of any fiscal year, either Operations Reserve is higher or
lower than the target level, any Financial Plan created for the Electric Utility shall be
ELECTRIC UTILITY FINANCIAL PLAN
June 16, 2014 47 | Page
designed to return both Operations Reserves to their target levels by the end of the
forecast period.
e)Maximum Level: If, at any time, either Operations Reserve reaches its maximum level,
no funds may be added to this Reserve. Any further increase in that fund’s Fund
Balance shall be automatically included in the Unassigned Reserve described in Section
13, below.
Section 13. Unassigned Reserves
If the Operations Reserve in either the Electric Supply Fund or the Electric Distribution Fund
reaches its maximum level, any further additions to that fund’s Fund Balance will be held in
the Unassigned Reserve. If there are any funds in either Unassigned Reserve at the end of
any fiscal year, the next Financial Plan presented to the City Council must include a plan to
assign them to a specific purpose or return them to the Electric Utility ratepayers by the end
of the first fiscal year of the next Financial Planning Period. For example, if there were
funds in the Unassigned Reserves at the end of FY 2016, and the next Financial Planning
Period is FY 2017 through FY 2021, the Financial Plan shall include a plan to return or assign
the funds in the Unassigned Reserve by the end of FY 2017. Staff may present an
alternative plan that retains these funds or returns them over a longer period of time.
Section 14. Intra-Utility Transfers between Supply and Distribution Funds
Transfers between Electric Distribution Fund Reserves and Electric Supply Fund Reserves are
permitted if consistent with the purposes of the two reserves involved in the transfer. Such
transfers require action by the City Council.
ELECTRIC UTILITY FINANCIAL PLAN
June 16, 2014 48 | Page
APPENDIX C: DESCRIPTION OF ELECTRIC UTILITY OPERATIONAL ACTIVITIES
This appendix describes the activities associated with the various cost categories referred to in
this Financial Plan.
Customer Service: This category includes the Electric Utility’s share of the call center, meter
reading, collections, and billing support functions. Billing support encompasses staff time
associated with bill investigations and quality control on certain aspects of the billing process.
It does not include maintenance of the billing system itself, which is included in Administration.
This category also includes CPAU’s key account representatives, who work with large
commercial customers who have more complex requirements for their electric services.
Resource Management: This category includes supply portfolio management, energy
procurement, rate setting, and tracking of legislation and regulation related to the electric
industry.
Operations and Maintenance: This category includes the costs of a variety of distribution
system maintenance activities, including:
•monitoring the substations and performing routine maintenance;
•performing preventative maintenance on the system;
•monitoring the system’s status from the UCC using SCADA;
•maintaining the SCADA system;
•investigating outages and other customer complaints and performing emergency
repairs;
•clearing vegetation near overhead power lines; and
•testing and replacing meters to ensure accurate sales metering.
Administration: Accounting, purchasing, legal, and other administrative functions provided by
the City’s General Fund staff, as well as shared communications services, Utilities Department
administrative overhead and billing system maintenance costs.
Demand Side Management: Includes the cost of administering energy efficiency programs and
the direct cost of rebates paid. Includes solar rebates.
Engineering (Operating): The Electric Utility’s engineers focus primarily on the CIP, but a small
portion of their time is spent assisting with distribution system maintenance.
APPENDIX D: SAMPLES OF RECENT ELECTRIC UTILITY OUTREACH COMMUNICATIONS
Attachment D
Not Yet Approved
170329 jb 6053934 1
Resolution No. ____
Resolution of the Council of the City of Palo Alto Adopting an Electric
Rate Increase and Amending Rate Schedules E-1 (Residential Electric
Service), E-2 (Small Commercial Electric Service), E-2-G (Small
Commercial Green Power Electric Service), E-4 (Medium Commercial
Electric Service), E-4-G (Medium Commercial Green Power Electric
Service), E-4 TOU (Medium Commercial Time of Use Electric Service),
E 7 (Large Commercial Electric Service), E-7-G (Large Commercial
Green Power Electric Service), E-7 TOU (Large Commercial Time of
Use Electric Service), and E-14 (Street Lights)
R E C I T A L S
A. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of
the City of Palo Alto may by resolution adopt rules and regulations governing utility services,
fees and charges.
The Council of the City of Palo Alto hereby RESOLVES as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-1 (Residential Electric Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule E-1, as amended, shall become effective July 1, 2017.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-2 (Small Commercial Electric Service) is hereby amended to read as attached
and incorporated. Utility Rate Schedule E-2, as amended, shall become effective July 1, 2017.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-2-G (Small Commercial Green Power Electric Service) is hereby amended to
read as attached and incorporated. Utility Rate Schedule E-2-G, as amended, shall become
effective July 1, 2017.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-4 (Medium Commercial Electric Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule E-4, as amended, shall become effective July
1, 2017.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-4-G (Medium Commercial Green Power Electric Service) is hereby amended to
Not Yet Approved
170329 jb 6053934 2
read as attached and incorporated. Utility Rate Schedule E-4-G, as amended, shall become
effective July 1, 2017.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-4 TOU (Medium Commercial Time of Use Electric Service) is hereby amended
to read as attached and incorporated. Utility Rate Schedule E-4 TOU, as amended, shall become
effective July 1, 2017.
SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-7 (Large Commercial Electric Service) is hereby amended to read as attached
and incorporated. Utility Rate Schedule E-7, as amended, shall become effective July 1, 2017.
SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-7-G (Large Commercial Green Power Electric Service) is hereby amended to
read as attached and incorporated. Utility Rate Schedule E-7-G, as amended, shall become
effective July 1, 2017.
SECTION 9. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-7 TOU (Large Commercial Time of Use Electric Service) is hereby amended to
read as attached and incorporated. Utility Rate Schedule E-7 TOU, as amended, shall become
effective July 1, 2017.
SECTION 10. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-14 (Street Lights) is hereby amended to read as attached and incorporated.
Utility Rate Schedule E-14, as amended, shall become effective July 1, 2017.
SECTION 11. The Council makes the following findings:
a.The revenue derived from the adoption of this resolution shall be used only for the
purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
b.The fees and charges adopted by this resolution are charges imposed for a specific
government service or product provided directly to the payor that are not provided
to those not charged, and do not exceed the reasonable costs to the City of
providing the service or product.
c.The adoption of this resolution changing electric rates to meet operating expenses,
purchase supplies and materials, meet financial reserve needs and obtain funds for
capital improvements necessary to maintain service is not subject to the California
Not Yet Approved
170329 jb 6053934 3
Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec.
21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After
reviewing the staff report and all attachments presented to Council, the Council
incorporates these documents herein and finds that sufficient evidence has been
presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
RESIDENTIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-1-1 dated 7-1-201609 Sheet No E-1-1
A. APPLICABILITY:
This schedule applies to separately metered single-family residential dwellings receiving retail
energy services from the City of Palo Alto Utilities.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides electric service.
C. UNBUNDLED RATES:
Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Total
Tier 1 usage $0.06605883 $0.05164795 $0.0039151 $0.1102912159
Tier 2 usage
Any usage over Tier 1
0.1125309728 0.0682207358 0.0039151 0.169001
Minimum Bill ($/day) 0.30672938
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s billstatement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Calculation of Usage Tiers
Tier 1 electricity usage shall be calculated and billed based upon a level of 11 kWh perday, prorated by meter reading days of service. As an example, for a 30-day bill, the Tier1 level would be 330 kWh. For further discussion of bill calculation and proration, refer
to Rule and Regulation 11.
{End}
ATTACHMENT E
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-2-1 dated 7-1-201609 Sheet No E-2-1
A. APPLICABILITY: This schedule applies to non-demand metered electric service for small non-residentialcommercial customers and master-metered multi-family facilities.
B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides electric service. C. UNBUNDLED RATES:
Per kilowatt-hour (kWh) Commodity Distribution Public Benefits Total
Summer Period
$0.1059109094 $0.0740007903 $0.0039151 $0.1684518885
Winter Period 0.0641707520 0.0467705356 0.0039151 0.132671445
Minimum Bill ($/day)
0.7328657
D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as
calculated under Section C. 2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use in both the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-2-2 dated 7-1-201609 Sheet No E-2-2
3.Maximum Demand Meter
Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutivemonths, a maximum demand meter will be installed as promptly as is practicable andthereafter continued in service until the monthly use of energy has fallen below 6,000
kWh for twelve consecutive months, whereupon, at the option of the City, it may be
removed.
The maximum demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month provided that if in case the Customer’s
load is intermittent or subject to violent fluctuations, the City may use a 5-minute
interval. A thermal-type demand meter which does not reset after a definite time interval
may be used at the City's option.
The billing demand to be used in computing charges under this schedule will be theactual maximum demand in kilowatts for the current month. An exception is that the
billing demand for customers with Thermal Energy Storage (TES) will be based upon the
actual maximum demand of such customers between the hours of noon and 6 pm on
weekdays.
{End}
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-2-1 dated 7-1-201609 Sheet No E-2-1
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-2-G-1 dated 7-1-20164 Sheet No E-2-G-1
A. APPLICABILITY: This schedule applies to the following Customers receiving Electric Service from the City of
Palo Alto Utilities under the Palo Alto Green Program:
1. Small non-residentialcommercial Customers receiving Non-Demand Metered electric service; and
2. Customers with accounts at Master-metered multi-family facilities.
B. TERRITORY: This rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: 1. 100% Renewable Option:
Per kilowatt-hour (kWh) Commodity Distribution Public Benefits
Palo Alto
Green Charge Total
Summer Period
$0.10591090
94
$0.07903400
$0.003915
1 $0.0020
$0.170451
9085
Winter Period 0.075206417 0.053564677 0.0035191 0.0020
$0.116451
3467
Minimum Bill ($/day)
0.7328657
2. 1000 kWh Block Purchase Option:
Per kilowatt-hour (kWh) Commodity Distribution
Public
Benefits
Total
Summer Period
$0.09094105
91
$0.07903074
00
$0.003915
1
$0.168451
8885
Winter Period
0.0641707520 0.053564677 0.0039151
0.1144513467
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-2-G-2 dated 7-1-20164 Sheet No E-2-G-2
Minimum Bill ($/day)
0.7328657
Palo Alto Green Charge (per 1000 kWh block) $2.00
D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective from November 1 to April 30. When the billing period includes use in both the Summer
and Winter Periods, usage will be prorated based upon the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Palo Alto Green Program Description and Participation Palo Alto Green provides for either the purchase of enough renewable energy credits
(RECs) to match 100% of the energy usage at the facility every month, or for the
purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the
production of renewable energy, increase the financial value of power from renewable sources, and create a transparent and sustainable market that encourages new
development of wind and solar power.
Customers choosing to participate shall fill out a Palo Alto Green Power Program
application provided by the Customer Service Center. Customers may request at any time, in writing, a change to the number of blocks they wish to purchase under the Palo
Alto Green Program.
RESIDENTIAL MASTER-METERED AND SMALL NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-2-G-3 dated 7-1-20164 Sheet No E-2-G-3
4. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive
months, a maximum Demand Meter will be installed as promptly as is practicable and thereafter continued in service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be
removed. The maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month, provided that ifin case the Customer-s load is intermittent or subject to violent fluctuations, the City may use a 5-minute
interval. A thermal-type Demand Meter which does not reset after a definite time
interval may be used at the City's option. The billing Demand to be used in computing charges under this schedule will be the
actual maximum Demand in kilowatts for the current month. An exception is that the billing Demand for Customers with Thermal Energy Storage (TES) will be based upon
the actual maximum Demand of such Customers between the hours of noon and 6 pm on
weekdays.
{End}
MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-1 dated 27-51-20136 Sheet No E-4-1
A. APPLICABILITY: This schedule applies to Demand metered secondary Electric Service for customers with a
Maximum Demand below 1,000 kilowatts. This schedule applies to three-phase Electric
Service and may include Service to master-metered multi-family facilities or other facilities
requiring Demand-metered services, as determined by the City.
B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW) $2.533.38 $17.1467 $19.6821.05
Energy Charge (per kWh)
0.0821809526 0.0166101756 0.0035100391 0.1022911673
Winter Period
Demand Charge (per kW) $1.9355 $12.4913.43 $14.0415.36
Energy Charge (per kWh)
0.0603706743 0.016610176 0.0035100391 0.0804908890
Minimum Bill ($/day) 16.321614.8414 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-2 dated 27-51-20136 Sheet No E-4-2
2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the Summer
and the Winter Periods, the usage will be prorated based on the number of days in each
seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kWh for three consecutive
months, a Maximum Demand meter will be installed as promptly as is practicable and
thereafter continued in Service until the monthly use of energy has fallen below 6,000 kWh for twelve consecutive months, whereupon, at the option of the City, it may be
removed. The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month, provided that if in case the Customer-s
load is intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand meter which does not reset after a definite time interval
may be used at the City's option. The Billing Demand to be used in computing charges under this schedule will be the
actual Maximum Demand in kilowatts for the current month. An exception is that the
Billing Demand for customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such customers between the hours of noon and 6 pm on
weekdays.
4. Power Factor For new or existing customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable
metering to calculate a Power Factor. The City may remove such metering from the
Service of a customer whose Demand has been below 200 kilowatts for four consecutive
months.
MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-3 dated 27-51-20136 Sheet No E-4-3
When such metering is installed, the monthly Electric bill will include a “Power Factor
Adjustment”, if applicable. The adjustment will be applied to a customer’s bill prior to
the computation of any primary voltage discount. The Power Factor Adjustment is
applied by increasing the total energy and Demand charges for any month by 0.25
percent (0.25%) for each one percent (1%) that the monthly Power Factor of the customer’s load was less than 95%.
The monthly Power Factor is the average Power Factor based on the ratio of kilowatt
hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering
is installed, the monthly Power Factor shall be the Power Factor coincident with the customer's Maximum Demand.
5. Changing Rate Schedules
Customers may request a rate schedule change at any time to any City of Palo Alto full-service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage
profile.
6. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be
offered,allowed provided but the City is not required to supply Service at a particular line
voltage where it has, or will install, ample facilities for supplying at another voltage
equally or better suited to the customer's electrical requirements, as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time
after providing reasonable advance notice to any customer receiving a the discount in this
sectionhereunder and affected by such change. The customer then has the option to
change his system so as to receive Service at the new line voltage or to accept Service
(without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation.
7. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection
D(7)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-
MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-4 dated 27-51-20136 Sheet No E-4-4
utility generation source.
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters. A separate meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section
D.3) occurs when one or more of the non-utility generators on the Customer’s
side of the City’s revenue meter are not operating, the Maximum Demand will be
reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing
cycle, the standby charge does not apply and the Customer shall not receive the
Maximum Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-5 dated 27-51-20136 Sheet No E-4-5
{End}
MEDIUM NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-G-1 dated 7-1-20164 Sheet No E-4-G-1
A. APPLICABILITY: This schedule applies to Demand Metered Secondary Electric Service for Customers with a
Maximum Demand below 1,000 kilowatts (kW) who receive power under the Palo Alto Green
Program. This schedule applies to three-phase Electric Service and may include Service to
Master-metered multi-family facilities or other facilities requiring Demand-Metered Services, as determined by the City.
B. TERRITORY: The rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES: 1. 100% Renewable Option:
Commodity Distribution Public Benefits
Palo Alto Green Charge Total
Summer Period
Demand Charge (per kW) $2.533.38 $17.6714
$19.6821.05
Energy Charge (per kWh)
0.0821809526 0.01756661 0.0039151 0.0020
0.118730429
Winter Period
Demand Charge (per kW) $1.5593 $12.4913.43
$15.3614.04
Energy Charge (per kWh)
0.0603706743 0.01756661 0.0039151 0.0020
0.090908249
Minimum Bill ($/day) 16.321614.8414
MEDIUM NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-G-2 dated 7-1-20164 Sheet No E-4-G-2
2. 1000 kWh Block Purchase Option:
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW) $3.382.53 $17.6714 $21.0519.68
Energy Charge (per kWh) 0.095268218 0.01756661 0.0039151 0.116730229
Palo Alto Green Charge (per 1000 kWh block) $2.00
Winter Period
Demand Charge (per kW) $1.9355 $12.4913.43 $15.3614.04
Energy Charge (per kWh) 0.06743037 0.01756661 0.0039151 0.08890049
Palo Alto Green Charge (per 1000 kWh block) $2.00
Minimum Bill ($/day) 14.841416.3216 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges, and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C.
2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive months, a Maximum Demand Meter will be installed as promptly as is
practicable and thereafter continued in Service until the monthly use of energy has
dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the
MEDIUM NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-G-3 dated 7-1-20164 Sheet No E-4-G-3
option of the City, it may be removed. The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month, provided that in case if the Customer’s
load is intermittent or subject to violent fluctuations, the City may use a 5-minute
interval. A thermal-type Demand Meter, which does not reset after a definite time interval, may be used at the City's option.
The Billing Demand to be used in computing charges under this schedule will be the
actual Maximum Demand in kilowatts for the current month. An exception is that the
Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 PM on
weekdays.
4. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300 kilowatts for three consecutive months, the City has the option of installing applicable
Metering to calculate a Power Factor. The City may remove such Metering from the
Service of a Customer whose Demand has dropped below 200 kilowatts for four
consecutive months.
When such Metering is installed, the monthly Electric bill will include a “Power Factor
Adjustment”, if applicable. The adjustment will be applied to a Customer’s bill prior to
the computation of any primary voltage discount. The Power Factor Adjustment is
applied by increasing the total energy and Demand charges for any month by 0.25
percent or (1/4) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt-
hours to kilovolt-ampere hours consumed during the month. Where time-of-day
Metering is installed, the monthly Power Factor shall be the Power Factor coincident with
the Customer's Maximum Demand. 5. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full-service
rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile.
MEDIUM NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-G-4 dated 7-1-20164 Sheet No E-4-G-4
6. Palo Alto Green Program Description and Participation
Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the
purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the
production of renewable energy, increase the financial value of power from renewal
sources, and creates a transparent and sustainable market that encourages new
development of wind and solar.
Customers choosing to participate shall fill out a Palo Alto Green Power Program
application provided by the Customer Service Center. Customers may request at any
time, in writing, a change to the number of blocks they wish to purchase under the Palo
Alto Green Program.
7. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2.5 percent for available line voltages above 2 kilovolts will be offered,allowed provided but the City is not required to supply Service at a particular line
voltage where it has, or will install, ample facilities for supplying at another voltage
equally or better suited to the Customer's electrical requirements, as determined in the
City’s sole discretion. The City retains the right to change its line voltage at any time
after providing reasonable advance notice to any Customer receiving a the discount in this sectionhereunder and affected by such change. The Customer then has the option to
change the system so as to receive Service at the new line voltage or to accept Service
(without voltage discount) through transformers to be supplied by the City subject to a
maximum kilovolt-ampere size limitation.
8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection
D(8)(e), applies to Customers that have a non-utility generation source
interconnected on the Customer’s side of the City’s revenue Meter and that
occasionally require backup power from the City due to non-operation of the non-utility generation source.
MEDIUM NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-G-5 dated 7-1-20164 Sheet No E-4-G-5
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters: A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit:
(1) In the event the Customer’s Maximum Demand (as defined in Section D.3) occurs when one or more of the non-utility generators on the Customer’s
side of the City’s revenue Meter are not operating, the Maximum Demand will be
reduced by the sum of the Maximum Generation of those non-utility generators,
but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing
cycle, the standby charge does not apply and the Customer shall not receive the
Maximum Demand credit described in this Section.
e. Exemptions:
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to
offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the Utilities Director.
{End}
MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-TOU-1 dated 27-51-20136 Sheet No E-4-TOU-1
A. APPLICABILITY: This voluntary rate schedule applies to Demand metered secondary Electric Service for
customers with Demand between 500 and 1,000 kilowatts per month and who have sustained
this level of usage for at least three consecutive months during the most recent 12 month period.
This schedule applies to three-phase Electric Service and may include Service to master-metered multi-family facilities or other facilities requiring Demand-metered services, as
determined by the City. In addition, this rate schedule is applicable for customers who did not
pay Power Factor Adjustments during the last 12 months. B. TERRITORY: This rate schedule applies anywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW)
Peak $2.121.52 $6.095.91 $8.217.42
Mid-Peak 0.6654 6.095.91 6.7644
Off-Peak 0.6654 6.095.91 6.7644
Energy Charge (per kWh)
Peak $0.1014408819 $0.01756661 $0.0039151 $0.122910830
Mid-Peak 0.098358367 0.01756661 0.0039151 0.119820378
Off-Peak 0.087487332 0.01756661 0.0039151 0.1089509344
Winter Period
Demand Charge (per kW)
Peak $1.070.87 $7.496.96 $8.567.83
Off-Peak 1.070.87 7.496.96 8.567.83
MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-TOU-2 dated 27-51-20136 Sheet No E-4-TOU-2
Commodity Distribution Public Benefits Total
Energy Charge (per kWh)
Peak $0.081646566 $0.01756661 $0.0039151 $0.1031108577
Off-Peak 0.057386167 0.01756661 $0.0039151 0.078858178
Minimum Bill ($/day) 16.321614.8414 D. SPECIAL NOTES: 1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement,
the bill amount may be broken down into appropriate components as calculated under Section C. 2. Definition of Time Periods SUMMER PERIOD (Service from May 1 to October 31):
Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays)
Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays)
6:00 p.m. to 9:00 p.m.
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays) All day Saturday, Sunday, and holidays
WINTER PERIOD (Service from November 1 to April 30):
Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays)
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays)
All day Saturday, Sunday, and holidays
HOLIDAYS: “Holidays” for the purposes of this rate schedule are New Years Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day,
Thanksgiving Day, and Christmas Day. The dates will be those on which the holidays
are legally observed.
MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-TOU-3 dated 27-51-20136 Sheet No E-4-TOU-3
SEASONAL RATE CHANGES: When the billing period includes use in both the
Summer and the Winter periods, the usage will be prorated based on the number of days
in each seasonal period, and the charges based on the applicable rates therein.. For
further discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three
consecutive months, a Demand meter will be installed as promptly as is practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it
may be removed. The Billing Demand to be used in computing charges under this schedule will be the
actual Maximum Demand in kilowatts taken during any 15-minute interval in each of the designated Time periods as defined under Section D.2.
4. Power Factor Adjustment
Time of Use customers must not have had a Power Factor Adjustment assessed on their Service for at least 12 months. Power factor is calculated based on the ratio of kilowatt
hours to kilovolt-ampere hours consumed during the month, and must not have fallen
below 95% to avoid the Power Factor Adjustment.
Should the City of Palo Alto Utilities Department find that the Customer’s Service should be subject to Power Factor Adjustments, the Customer will be removed from the E-4-
TOU rate schedule and placed on another applicable rate schedule as is suitable to their
kilowatt Demand and kilowatt-hour usage.
5. Changing Rate Schedules
Customers electing to be served under E-4 TOU must remain on said schedule for a
minimum of 12 months. Should the Customer so wish, at the end of 12 months, the
Customer may request a rate schedule change to any applicable City of Palo Alto full-
service rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage. 6. Primary Voltage Discount
MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-TOU-4 dated 27-51-20136 Sheet No E-4-TOU-4
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be
offered,allowed provided but the City is not required to supply Service at a particular line
voltage where it has, or will install, ample facilities for supplying at another voltage
equally or better suited to the Customer's electrical requirements, as determined in the City’s sole discretion. The City retains the right to change its line voltage at any time
after providing reasonable advance notice to any Customer receiving a the discount in
this sectionhereunder and affected by such change. The Customer then has the option to
change his system so as to receive Service at the new line voltage or to accept Service
(without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation.
7. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection
D(7)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that
occasionally require backup power from the City due to non-operation of the non-
utility generation source.
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity)
Summer Period $0.69 $15.23 $15.92
Winter Period $0.63 $9.04 $9.67
c. Meters. A separate meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand occurs when one or more of the non-utility generators on the Customer’s side of the City’s revenue meter
are not operating, the Maximum Demand will be reduced by the sum of the
Maximum Generation of those non-utility generators, but in no event shall the
Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing
MEDIUM NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-4-TOU-5 dated 27-51-20136 Sheet No E-4-TOU-5
cycle, the standby charge does not apply and the Customer shall not receive the
Maximum Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to
offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an “Eligible Customer-generator” as defined in California Public Utilities Code
Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director. {End}
LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-7-1 dated 27-51-20163 Sheet No E-7-1
A. APPLICABILITY: This schedule applies to Demand metered secondary Service for non-residentialcommercial
Customers with a Maximum Demand of at least 1,000KW per month per site, who have
sustained this Demand level at least 3 consecutive months during the last twelve months. B. TERRITORY:
This rate schedule applies anywhere the City of Palo Alto provides Electric Service.
C. RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (kW) $3.492.50 $20.3515.85 $23.8418.34
Energy Charge (kWh) 0.093538311 0.0005887 0.0039151 0.098028749
Winter Period
Demand Charge (kW) $1.9053 $13.6914.11 $15.5965
Energy Charge (kWh) 0.067395804 0.0005887 0.0039151 0.071886242
Minimum Bill ($/day) 42.364848.5054 D. SPECIAL NOTES:
1. Calculation of Charges
The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C.
LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-7-2 dated 27-51-20163 Sheet No E-7-2
2. Seasonal Rate Changes The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the summer
and in the winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Request for Service
Qualifying Customers may request Service under this schedule for more than one account
or one meter if the accounts are on one site. A site shall be defined as one or more utility
accounts serving contiguous parcels of land with no intervening public right-of-ways
(e.g. streets) and have a common billing address.
4. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three
consecutive months, a Maximum Demand meter will be installed as promptly as is
practicable and thereafter continued in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of
the City, it may be removed.
The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month provided that in case if the Customer’s load is intermittent or subject to violent fluctuations, the City may use a 5-minute
interval. A thermal-type Demand meter which does not reset after a definite time interval
may be used at the City's option.
The Billing Demand to be used in computing charges under this schedule will be the actual Maximum Demand in kilowatts for the current month. An exception is that the
Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon
the actual Maximum Demand of such Customers between the hours of noon and 6 pm on
weekdays.
LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-7-3 dated 27-51-20163 Sheet No E-7-3
5. Power Factor For new or existing Customers whose Demand is expected to exceed or has exceeded 300
kilowatts for three consecutive months, the City has the option to install applicable
metering to calculate a Power Factor. The City may remove such metering from the
Service of a Customer whose Demand has been below 200 kilowatts for four consecutive months. When such metering is installed, the monthly Electric bill shall include a “Power Factor
Adjustment”, if applicable. The adjustment shall be applied to a Customer’s bill prior to
the computation of any primary voltage discount. The Power Factor Adjustment is
applied by increasing the total energy and Demand charges for any month by 0.25 percent (0.25%) for each one percent (1%) that the monthly Power Factor of the Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt
hours to kilovolt-ampere hours consumed during the month. Where time-of-day metering
is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand. 6. Changing Rate Schedules Customers may request a rate schedule change at any time to any applicable full service
rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile.
7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be
offered,allowed provided but the City is not required to supply Service at a particular line
voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to the Customer's electrical requirements , as determined in the
City’s sole discretion. The City retains the right to change its line voltage at any time
after providing reasonable advance notice to any Customer receiving a the discount in
this section hereunder and affected by such change. The Customer then has the option to
change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a
maximum kVA size limitation.
LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-7-4 dated 27-51-20163 Sheet No E-7-4
8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection
D(8)(e), applies to Customers that have a non-utility generation source
interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power from the City due to non-operation of the non-
utility generation source.
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity)
Summer Period $0.84 $12.55 $13.39
Winter Period $0.72 $6.04 $6.76
c. Meters. A separate meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand (as defined in Section
D.4) occurs when one or more of the non-utility generators on the Customer’s
side of the City’s revenue meter are not operating, the Maximum Demand will be
reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing
cycle, the standby charge does not apply and the Customer shall not receive the
Maximum Demand credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate
only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code
LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-7-5 dated 27-51-20163 Sheet No E-7-5
Section 2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
{End}
LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-7-G-1 dated 7-1-20164 Sheet No E-7-G-1
A. APPLICABILITY: This schedule applies to Demand Metered Service for large non-residentialcommercial
Customers who choose Service under the Palo Alto Green Program. A Customer may qualify
for this rate schedule if the Customer’s Maximum Demand is at least 1,000KW per month per
site, who have sustained this Demand level at least 3 consecutive months during the last twelve
months B. TERRITORY: The rate schedule applies everywhere the City of Palo Alto provides Electric Service.
C. UNBUNDLED RATES:
1. 100% Renewable Option:
Commodity Distribution Public Benefits
Palo Alto Green Charge Total
Summer Period
Demand Charge ( per kW) $3.492.50 $20.3515.85 $23.8418.34
Energy Charge (per kWh) 0.093538311 0.0005887 0.0039151 0.0020 0.1000208949
Winter Period
Demand Charge (per kW) $1.9053 $13.6914.11 $15.5965
Energy Charge (per kWh) 0.067395804 0.0005887 0.0039151 0.0020 0.073886442
Minimum Bill ($/day) 42.364848.5054
LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-7-G-2 dated 7-1-20164 Sheet No E-7-G-2
2. 1000 kWh Block Purchase Option:
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW) $3.492.50 $20.3515.85 $23.8418.34
Energy Charge (per kWh) 0.093538311 0.0005887 0.0039151 0.098028749
Palo Alto Green Charge (per 1000 kWh block) $2.00
Winter Period
Demand Charge (per kW) $1.9053 $13.6914.11 $15.5965
Energy Charge (per kWh) 0.067395804 0.0005887 0.0039151 0.071886242
Palo Alto Green Charge (per 1000 kWh block) $2.00
Minimum Bill ($/day) 42.364848.5054 D. SPECIAL NOTES: 1. Calculation of Charges The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill
statement, the bill amount may be broken down into appropriate components as
calculated under Section C. 2. Seasonal Rate Changes
The Summer Period is effective May 1 to October 31 and the Winter Period is effective
from November 1 to April 30. When the billing period includes use both in the Summer and the Winter Periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further
discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Maximum Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three
consecutive months, a Maximum Demand Meter will be installed as promptly as is
practicable and thereafter continued in Service until the monthly use of energy has
LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-7-G-3 dated 7-1-20164 Sheet No E-7-G-3
dropped below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed.
The Maximum Demand in any month will be the maximum average power in kilowatts
taken during any 15-minute interval in the month, provided that in case if the load is
intermittent or subject to violent fluctuations, the City may use a 5-minute interval. A thermal-type Demand Meter which does not reset after a definite time interval may be
used at the City's option.
The Billing Demand to be used in computing charges under this schedule will be the
actual Maximum Demand in kilowatts for the current month. An exception is that the Billing Demand for Customers with Thermal Energy Storage (TES) will be based upon the actual Maximum Demand of such Customers between the hours of noon and 6 PM on
weekdays.
4. Request for Service Qualifying Customers may request Service under this schedule for more than one
Account or one Meter if the Accounts are at one site. A site shall be defined as one or
more utility Accounts serving contiguous parcels of land with no intervening public right-
of-ways (e.g. streets) and have a common billing address. 5. Power Factor
For new or existing Customers whose Demand is expected to exceed or has exceeded 300
kilowatts for three consecutive months, the City has the option of installing applicable Metering to calculate a Power Factor. The City may remove such Metering from the Service of a Customer whose Demand has dropped below 200 kilowatts for four
consecutive months.
When such Metering is installed, the monthly Electric bill shall include a “Power Factor Adjustment”, if applicable. The adjustment shall be applied to a Customer’s bill prior to the computation of any primary voltage discount. The Power Factor Adjustment is
applied by increasing the total energy and Demand charges for any month by 0.25
percent or (1/4) for each one percent (1%) that the monthly Power Factor of the
Customer’s load was less than 95%. The monthly Power Factor is the average Power Factor based on the ratio of kilowatt-
hours to kilovolt-ampere hours consumed during the month. Where time-of-day
LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-7-G-4 dated 7-1-20164 Sheet No E-7-G-4
Metering is installed, the monthly Power Factor shall be the Power Factor coincident with the Customer's Maximum Demand. 6. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable full service rate schedule as is applicable to their kilowatt-Demand and kilowatt-hour usage profile 7. Palo Alto Green Program Description and Participation
Palo Alto Green provides for either the purchase of enough renewable energy credits (RECs) to match 100% of the energy usage at the facility every month, or for the purchase of 1000 kilowatt-hour (kWh) blocks. These REC purchases support the
production of renewable energy, increase the financial value of power from renewal
sources, and creates a transparent and sustainable market that encourages new
development of wind and solar. Customers choosing to participate shall fill out a Palo Alto Green Power Program
application provided by the Customer Service Center. Customers may request at any
time, in writing, a change to the number of blocks they wish to purchase under the Palo
Alto Green Program. 8. Primary Voltage Discount
Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered, butallowed; provided, however, the City is not required to supply Service at a
qualified line voltage where it has, or will install, ample facilities for supplying at another
voltage equally or better suited to the Customer's Electrical requirements , as determined
in the City’s sole discretion. The City retains the right to change its line voltage at any
time after providing reasonable advance notice to any Customer receiving a the discount in this section hereunder and affected by such change. The Customer then has the option
to change the system so as to receive Service at the new line voltage or to accept Service
(without voltage discount) through transformers to be supplied by the City subject to a
maximum kilovolt-ampere size limitation.
9. Standby Charge
LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-7-G-5 dated 7-1-20164 Sheet No E-7-G-5
a. Applicability: The standby charge, subject to the exemptions in subsection D(9)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue Meter and that
occasionally require backup power from the City due to non-operation of the non-
utility generation source.
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity) Summer Period $0.84 $12.55 $13.39 Winter Period $0.72 $6.04 $6.76
c. Meters: A separate Meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit:
(1) In the event the Customer’s Maximum Demand (as defined in Section
D.3) occurs when one or more of the non-utility generators on the Customer’s
side of the City’s revenue Meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum Generation of those non-utility generators, but in no event shall the Customer’s Maximum Demand be reduced below zero.
(2) If the non-utility generation source does not operate for an entire billing
cycle, the standby charge does not apply and the Customer shall not receive the Maximum Demand credit described in this Section.
e. Exemptions:
(1) The standby charge shall not apply to backup generators designed to operate only in the event of an interruption in utility Service and which are not used to offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code Section 2827(b)(4), as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
LARGE NON-RESIDENTIALCOMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No E-7-G-6 dated 7-1-20164 Sheet No E-7-G-6
{End}
LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167
Supersedes Sheet No E-7-TOU-1 dated 72-15-20163 Sheet No E-7-TOU-1
A. APPLICABILITY: This voluntary rate schedule applies to Demand metered secondary Service for non-
residentialcommercial customers with a Maximum Demand of at least 1,000KW per month per
site, who have sustained this Demand level at least 3 consecutive months during the last twelve months. In addition, this rate schedule is applicable for customers who did not pay Power Factor Adjustments during the last 12 months.
B. TERRITORY:
This rate schedule applies everywhere the City of Palo Alto provides Electric Service. C. UNBUNDLED RATES: Rates per kilowatt (kW) and kilowatt-hour (kWh):
Commodity Distribution Public Benefits Total
Summer Period
Demand Charge (per kW)
Peak $2.221.48 $6.845.33 $9.066.80
Mid-Peak 0.6451 6.845.33 7.485.84
Off-Peak 0.6451 6.845.33 7.485.84
Energy Charge (per kWh)
Peak $0.1017709267 $0.0005887 $0.0039151 $0.1062609705
Mid-Peak 0.098688792 0.0005887 0.0039151 0.1031609230
Off-Peak 0.087777705 0.0005887 0.0039151 0.092268143
Winter Period
Demand Charge (per kW)
Peak $0.9678 $6.937.15 $7.892
Off-Peak 0.9678 6.937.15 7.892
Energy Charge (per kWh)
Peak $0.080366009 $0.0005887 $0.0039151 $0.084846447
Off-Peak 0.056473 0.0005887 0.0039151 0.0609681
LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167
Supersedes Sheet No E-7-TOU-2 dated 72-15-20163 Sheet No E-7-TOU-2
Minimum Bill ($/day) 42.364848.5054 D. SPECIAL NOTES:
1. Calculation of Charges The actual bill amount is calculated based on the applicable rates in Section C above and
adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement,
the bill amount may be broken down into appropriate components as calculated under Section C.
2. Definition of Time Periods SUMMER PERIOD (Service from May 1 to October 31):
Peak: 12:00 noon to 6:00 p.m. Monday through Friday (except holidays)
Mid Peak: 8:00 a.m. to 12:00 noon Monday through Friday (except holidays)
6:00 p.m. to 9:00 p.m.
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday All day Saturday, Sunday, and holidays
WINTER PERIOD (Service from November 1 to April 30):
Peak: 8:00 a.m. to 9:00 p.m. Monday through Friday (except holidays)
Off-Peak: 9:00 p.m. to 8:00 a.m. Monday through Friday (except holidays)
All day Saturday, Sunday, and holidays
HOLIDAYS: “Holidays” for the purposes of this rate schedule are New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day, Veterans Day, Thanksgiving
Day, and Christmas Day. The dates will be those on which the holidays are legally observed.
SEASONAL RATE CHANGES: When the billing period includes use in both the Summer and
the Winter periods, the usage will be prorated based on the number of days in each seasonal period, and the charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11.
LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167
Supersedes Sheet No E-7-TOU-3 dated 72-15-20163 Sheet No E-7-TOU-3
3. Request for Service Qualifying customers may request Service under this schedule for more than one account or one
meter if the accounts are on one site. A site shall be defined as one or more utility accounts
serving contiguous parcels of land with no intervening public right-of-ways (e.g. streets) and have a common billing address. 4. Demand Meter Whenever the monthly use of energy has exceeded 8,000 kilowatt-hours for three consecutive
months, a Demand meter will be installed as promptly as is practicable and thereafter continued
in Service until the monthly use of energy has fallen below 6,000 kilowatt-hours for twelve consecutive months, whereupon, at the option of the City, it may be removed. The Billing Demand to be used in computing charges under this schedule will be the actual
Maximum Demand in kilowatts taken during any 15-minute interval in each of the designated
Time periods as defined under Section D.2. 5. Power Factor Adjustment Time of Use customers must not have had a Power Factor Adjustment assessed on their Service
for at least 12 months. Power factor is calculated based on the ratio of kilowatt hours to kilovolt-
ampere hours consumed during the month, and must not have fallen below 95% to avoid the
Power Factor Adjustment. Should the City of Palo Alto Utilities Department find that the Customer’s Service should be
subject to Power Factor Adjustments, the Customer will be removed from the E-7-TOU rate
schedule and placed on another applicable rate schedule as is suitable to their kilowatt Demand
and kilowatt-hour usage. 6. Changing Rate Schedules Customers electing to be served under E-7 TOU must remain on said schedule for a minimum of
12 months. Should the Customer so wish, at the end of 12 months, the Customer may request a
rate schedule change to any applicable City of Palo Alto full-service rate schedule as is suitable to their kilowatt Demand and kilowatt-hour usage.
LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167
Supersedes Sheet No E-7-TOU-4 dated 72-15-20163 Sheet No E-7-TOU-4
7. Primary Voltage Discount Where delivery is made at the same voltage as that of the line from which the Service is
supplied, a discount of 2 1/2 percent for available line voltages above 2 kilovolts will be offered,
butallowed provided the City is not required to supply Service at a particular line voltage where it has, or will install, ample facilities for supplying at another voltage equally or better suited to
the Customer's electrical requirements , as determined in the City’s sole discretion. The City
retains the right to change its line voltage at any time after providing reasonable advance notice
to any Customer receiving a the discount in this section hereunder and affected by such change.
The Customer then has the option to change his system so as to receive Service at the new line voltage or to accept Service (without voltage discount) through transformers to be supplied by the City subject to a maximum kilovolt-ampere size limitation.
8. Standby Charge a. Applicability: The standby charge, subject to the exemptions in subsection D(8)(e), applies to Customers that have a non-utility generation source interconnected on the Customer’s side of the City’s revenue meter and that occasionally require backup power
from the City due to non-operation of the non-utility generation source.
b. Standby Charges:
Commodity Distribution Total Standby Charge (per kW of Reserved Capacity)
Summer Period $0.84 $12.55 $13.39
Winter Period $0.72 $6.04 $6.76
c. Meters. A separate meter is required for each non-utility generation source.
d. Calculation of Maximum Demand Credit.
(1) In the event the Customer’s Maximum Demand occurs when one or more of the
non-utility generators on the Customer’s side of the City’s revenue meter are not operating, the Maximum Demand will be reduced by the sum of the Maximum
Generation of those non-utility generators, but in no event shall the Customer’s
Maximum Demand be reduced below zero.
LARGE NON-RESIDENTIALCOMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167
Supersedes Sheet No E-7-TOU-5 dated 72-15-20163 Sheet No E-7-TOU-5
(2) If the non-utility generation source does not operate for an entire billing cycle, the
standby charge does not apply and the Customer shall not receive the Maximum Demand
credit described in this Section.
e. Exemptions.
(1) The standby charge shall not apply to backup generators designed to operate only in
the event of an interruption in utility Service and which are not used to offset Customer electricity purchases.
(2) The standby charge shall not apply if the Customer meets the definition of an
“Eligible Customer-generator” as defined in California Public Utilities Code Section
2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of the
Utilities Director.
{End}
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167
Supersedes Sheet No. E-14-2 dated 7-1-200916 Sheet No. E-14-2
A. APPLICABILITY: This schedule applies to all street and highway lighting installations.
B. TERRITORY: Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City.
C. RATES:
Per Lamp Per Month Class A: Utility supplies energy
and switching service only.
Lamp Rating: High Pressure Sodium Vapor Lamps 100 watts 8.599.66
200 watts 15.8717.83
250 watts 19.5021.92
310 watts 24.1327.12
400 watts 31.0734.92
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167
Supersedes Sheet No. E-14-2 dated 7-1-200916 Sheet No. E-14-2
Per Lamp Per Month – Class C: Utility supplies energy
and switching service and
maintains entire system,
including lamps and glassware. Lamp Rating:
Mercury-Vapor Lamps
400 watts 32.5834.94
High Pressure Sodium Vapor Lamps
70 watts 28.6130.48
100 watts 30.7932.93
150 watts 34.4337.02
250 watts 41.7045.19 Light Emitting Diode (LED) Lamps
70 watts-equivalent 23.7925.06
100 watts-equivalent 25.4426.91
150 watts-equivalent 26.9628.62 250 watts 31.1233.30
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No. E-14-14 dated 7-1-200916 Sheet No. E-14-14
D. SPECIAL CONDITIONS:
1. Type of Service: This schedule is applicable to series circuit and multiple street lighting
systems to which the Utility will deliver current at secondary voltage. Unless otherwise agreed, multiple current will be delivered at 120/240 volts, three-wire, single-phase. In certain localities the Utility may supply service from 120/208 volt star-connected poly-phase
lines in place of 240-volt service. Single phase service from 480-volt sources will be
available in certain areas at the option of the Utility when this type of service is practical
from the Utility's engineering standpoint. All currents and voltages stated herein are nominal, reasonable variations being permitted. New lights will normally be supplied as multiple systems.
2. Point of Delivery: Delivery will be made to the customer's system at a point or at points
mutually agreed upon. The Utility will furnish the service connection to one point for each group of lamps, provided the customer has arranged his system for the least practicable number of points of delivery. All underground connections will be made by the customer or
at the customer's expense.
3. Switching: Switching will be performed by the Utility (on the Utility's side of points of delivery) and no charge will be made for switching provided there are at least 10 kilowatts of
lamp load on each circuit separately switched, including all lamps on the circuit whether
served under this schedule or not; otherwise, an extra charge of $2.50 per month will be
made for each circuit separately switched unless such switching installation is made for the
Utility's convenience or the customer furnishes the switching facilities and, if installed on the Utility's equipment, reimburses the Utility for installing and maintaining them.
4. Annual Burning Schedule: The above rates apply to lamps which will be turned on and off
once each night in accordance with a regular burning schedule agreeable to the customer but
not exceeding 4,100 hours per year. 5. Maintenance: The rates under Class C include all labor necessary for replacement of
glassware and for inspection and cleaning of the same. Maintenance of glassware by the
Utility is limited to standard glassware such as is commonly used and manufactured in
reasonably large quantities. A suitable charge will be made for maintenance of glassware of a
type entailing unusual expense. Under Class C, the rates include maintenance of circuits between lamp posts and of circuits and equipment in and on the posts, provided these are all
of good standard construction; otherwise, the Utility may decline to grant Class C rates.
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20176
Supersedes Sheet No. E-14-24 dated 7-1-200916 Sheet No. E-14-24
Class C rates applied to any agency other than the City of Palo Alto also include painting of
posts with one coat of good ordinary paint as required to maintain good appearance but do
not include replacement of posts broken by traffic accidents or otherwise.
10. . System Owned In-Part by Utility : Where, at customer's request, the Utility installs, owns,
and maintains any portion of the lighting fixtures, supports, and/or interconnecting circuits,
an extra monthly charge of one and one-fourth percent of the Utility's estimate of additional
investment shall be made.
11. Rates For Lamps Not on Schedule: In the event a customer installs a lamp which is not
presently represented on this schedule, the Utility will prepare an interim rate reflecting the
Utility's estimated costs associated with the specific lamp size. This interim rate will serve as
the effective rate for billing purposes until the new lamp rating is added to Schedule E-14.
{End}
Attachment F
*NOT YET APPROVED *
170320 jb 6053929
Resolution No. _________
Resolution of the Council of the City of Palo Alto Approving the
FY 2018 Gas Utility Financial Plan
R E C I T A L S
A.Each year the City of Palo Alto (“City”) regularly assesses the financial position of
its utilities with the goal of ensuring adequate revenue to fund operations. This includes
making long-term projections of market conditions, the physical condition of the system, and
other factors that could affect utility costs, and setting rates adequate to recover these costs. It
does this with the goal of providing safe, reliable, and sustainable utility services at competitive
rates. The City adopts Financial Plans to summarize these projections.
B.The City uses reserves to protect against contingencies and to manage other
aspects of its operations, and regularly assesses the adequacy of these reserves and the
management practices governing their operation. The status of utility reserves and their
management practices are included in Reserves Management Practices attached to and made
part of the Financial Plans.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby adopts the FY 2018 Gas Utility Financial Plan.
SECTION 2. The Council finds that the adoption of this resolution does not meet the
California Environmental Quality Act’s (CEQA) definition of a project under Public Resources
/ /
/ /
/ /
/ /
/ /
/ /
*NOT YET APPROVED *
170320 jb 6053929
Code Section 21065, and therefore, no environmental assessment is required.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
FY 2018 GAS
UTILITY
FINANCIAL PLAN
FY 2018 TO FY 2027
ATTACHMENT G
GAS UTILITY FINANCIAL PLAN
April 1 2 , 2016 2 | Page
GAS UTILITY FINANCIAL PLAN
FY 2018 TO FY 2027
TABLE OF CONTENTS
Section 1: Definitions and Abbreviations................................................................................ 4
Section 2: Executive Summary and Recommendations ........................................................... 5
Section 2A: Overview of Financial Position .................................................................................. 5
Section 2B: Summary of Proposed Actions .................................................................................. 6
Section 3: Detail of FY 2018 Rate and Reserve Proposals ........................................................ 6
Section 3A: Rate Design ............................................................................................................... 6
Section 3B: Current and Proposed Rates ..................................................................................... 6
Section 3D: Proposed Reserve Transfers ..................................................................................... 8
Section 4: Utility Overview .................................................................................................... 8
Section 4A: Gas Utility History ..................................................................................................... 8
Section 4B: Customer Base ........................................................................................................ 10
Section 4C: Distribution System ................................................................................................. 11
Section 4D: Cost Structure and Revenue Sources ...................................................................... 12
Section 4E: Reserves Structure ................................................................................................... 12
Section 4F: Competitiveness ...................................................................................................... 13
Section 4G: Gas Supply Rates .................................................................................................... 14
Section 5: Utility Financial Projections ................................................................................. 15
Section 5A: Load Forecast .......................................................................................................... 15
Section 5A: FY 2012 to FY 2016 Cost and Revenue Trends ........................................................ 16
Section 5B: FY 2016 Results ....................................................................................................... 17
Section 5C: FY 2017 Projections ................................................................................................. 18
Section 5D: FY 2018-FY 2027 Projections .................................................................................. 18
Section 5E: Risk Assessment and Reserves Adequacy ............................................................... 19
Section 5G: Long-Term Outlook ................................................................................................. 21
GAS UTILITY FINANCIAL PLAN
April 1 2 , 2016 3 | Page
Section 6: Details and Assumptions ..................................................................................... 22
Section 6A: Gas Purchase Costs ................................................................................................. 22
Section 6B: Operations .............................................................................................................. 23
Section 6C: Capital Improvement Program (CIP) ....................................................................... 24
Section 6D: Debt Service ............................................................................................................ 26
Section 6E: Equity Transfer ........................................................................................................ 27
Section 6F: Revenues ................................................................................................................. 27
Section 6G: Communications Plan ............................................................................................. 28
Appendices ......................................................................................................................... 30
Appendix A: Gas Financial Forecast Detail ................................................................................ 31
Appendix B: Gas Utility Capital Improvement Program (CIP) Detail ......................................... 32
Appendix C: Gas Utility Reserves Management Practices ......................................................... 34
Appendix D: Description of Gas Utility Cost Categories ............................................................ 38
Appendix E: Gas Utility Communications Samples .................................................................... 39
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SECTION 1: DEFINITIONS AND ABBREVIATIONS
ABS: Acrylonitirile butydene styrene, a plastic gas main material
CARB: California Air Resources Board
CIP: Capital Improvement Program
CNG: Compressed Natural Gas
CPAU: City of Palo Alto Utilities Department
CPUC: California Public Utilities Commission
Cross-bore: A cross-bore exists when one utility line has been drilled or “bored” through a
portion of another line. Gas cross-bores can occur in sewer lines as a result of “horizontal
boring” construction practices.
Distribution: transportation of gas to customers.
GMR Program: Gas Main Replacement Program
Local Transportation: transportation of gas to Palo Alto across PG&E’s distribution system from
PG&E City Gate.
Malin: a delivery hub referred to in gas purchase contracts and located in Malin, Oregon, where
the northern end of PG&E’s Redwood Transmission Pipeline is located.
MMBtu: Millions of British thermal units, a unit of gas measurement equal to ten therms.
Commonly used for high volume gas measurement. Wholesale purchases of gas from suppliers
are typically measured in MMBtu.
O&M: Operations and Maintenance
PE or HDPE: Polyethylene, a gas main material (more specifically, High-Density Polyethylene)
PG&E: Pacific Gas and Electric
PG&E Citygate, or Citygate: a delivery hub referred to in gas purchase contracts. Any gas
delivered to PG&E’s distribution system (such as gas delivered at the southern end of PG&E’s
Redwood Transmission Pipeline) is said to have been delivered at PG&E Citygate.
PVC: Polyvinyl chloride, a plastic gas main material
Summer: April 1 to October 31
Therms: The standard unit of measurement for natural gas sales to customers, equal to 100,000
British thermal units. Therms measure the heating value of the gas, rather than its volume.
Transmission: transportation of gas between major gas delivery hubs via a gas transmission
pipeline, such as PG&E’s Redwood pipeline.
UAC: Utilities Advisory Commission, an appointed body that advises the City Council on CPAU
issues.
Winter: November 1 to March 31
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SECTION 2: EXECUTIVE SUMMARY AND RECOMMENDATIONS
This document presents a Financial Plan for the City’s Gas Utility for the next ten years. This
Financial Plan provides revenues to cover the costs of operating the utility safely over that time
while adequately investing for the future. It also addresses the financial risks facing the utility
over the short term and long term, and includes measures to mitigate and manage those risks.
SECTION 2A: OVERVIEW OF FINANCIAL POSITION
From FY 2018 through FY 2027, non-commodity costs are projected to increase at 3% to 4% per
year. In the short term, some of these costs are related to the cross-bore inspection program,
as well as cap-and-trade and carbon neutral allowance purchase costs. Capital improvement
program (CIP) costs have increased as the economy has improved, and while CPAU plans a new
gas main replacement project every year, recent larger than expected bids have required
resizing and redesign of some existing plan projects. Because of this, the next new main
replacement project will take place in FY 2019. As a result, CIP costs for FY 2017 and 2018 will
be lower than normal by around $3.7 million. The Gas Utility expenses over the period of this
financial plan are shown in Table 1 below.
Table 1: Gas Utility Expenses for FY 2016 to FY 2027 (Thousand $’s)
Expenses
($000)
FY
2016
(act.)
FY
2017
(est.)
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
Commodity costs 8,127 13,042 15,437 14,931 15,304 15,584 16,021 16,569 17,227 17,909 18,679 19,235
Operations 17,239 21,687 22,587 22,901 22,559 23,022 24,403 25,292 26,221 27,195 28,222 27,982
Capital Projects 5,017 2,214 2,074 5,725 5,960 6,145 6,335 6,525 6,721 6,923 7,130 7,344
TOTAL 30,384 36,943 40,098 43,557 43,823 44,751 46,759 48,386 50,169 52,027 54,032 54,561
To ensure that revenues cover projected rising costs, the financial plan includes the rate
trajectory shown in Table 2. No increase is projected for FY 2018.
Table 2: Projected Gas Rate Trajectory for FY 2018 to FY 2027
Projection FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
Current Financial Plan 0% 4% 6% 6% 5% 3% 3% 2% 1% 0%
FY 2017 Financial Plan 9% 7% 4% 1% 1% 1% 1% 1% 1% N/A
FY 2016 Financial Plan 4% 4% 4% 3% 3% N/A N/A N/A N/A N/A
The Gas Rate Stabilization Reserve is used to smooth rate increases over several years. This
Financial Plan projects that these reserves will be exhausted by the end of FY 2020. The Gas CIP
Reserve can be used to offset one-time unanticipated capital costs. Table 3 shows the projected
reserve transfers over the forecast period.
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Table 3: Transfers To/(From) Reserves for FY 2017 to FY 2027 ($000)
Reserve FY 2017 FY 2018 FY 2019 to FY 2027
Rate Stabilization 0 (1,208) (4,810)
Operations 0 1,208 4,810
SECTION 2B: SUMMARY OF PROPOSED ACTIONS
Staff proposes the following actions for the Gas Utility in FY 2017:
1. Amend the proposed $5.3 million transfer from the Rate Stabilization Reserve to the
Operations Reserve, as proposed in the FY 2017 Gas Financial Plan, to no transfer, based
on projected ending Operations Reserve levels.
Staff proposes the following actions for the Gas Utility in FY 2018:
2. No distribution rate increase for FY 2018. See Section 3B: Current and Proposed Rates
for more details.
3. Transfer $1.2 million from the Rate Stabilization Reserve to the Operations Reserve. See
Section 3C: Proposed Reserve Transfers for more details.
SECTION 3: DETAIL OF FY 2018 RATE AND RESERVE PROPOSALS
SECTION 3A: RATE DESIGN
The Gas Utility’s rates are evaluated and implemented in compliance with cost of service
requirements. The Gas Utility’s current rates are based on the methodology from the April 2012
Gas Utility Cost of Service Study completed by Utility Financial Solutions1. In preparation for an
update to the study, staff discussed a proposed scope with the Utilities Advisory Commission in
October 2016, and the Council in November 20162. The updated study is projected to be
completed by the end of FY 2017, and will provide guidance for the next proposed rate action,
currently slated for FY 2019.
SECTION 3B: CURRENT AND PROPOSED RATES
On July 1, 2012 CPAU restructured its rates so that the commodity component varied monthly
to match changes in gas market prices.3 In addition, monthly service charges were increased to
recover the cost of providing gas service to customers. In January 2015, the Council adopted a
new rate component to collect the costs of purchasing allowances for the purpose of
compliance with the State’s cap-and-trade program4. This component will change depending on
the cost of allowances and gas demand. In October 2016, the Council adopted a resolution
changing the Local Transportation rate (which had been collapsed into the Distribution rate in
1 Staff Report 2812, 5/17/ 2012 http://archive.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=31395 2 Staff Report 7416 11/14/2016 http://www.cityofpaloalto.org/civicax/filebank/documents/54576 3 Staff Report 2812, 5/17/2012: http://archive.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=31395 4 Staff Report 5397, 1/26/2015: https://www.cityofpaloalto.org/civicax/filebank/documents/45537
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2015 to streamline bill presentation), to be a pass-through of PG&E’s Gas Transportation Rate to
Wholesale/Resale Customers (G-WSL) charge to Palo Alto.5 This went into effect November 1,
2016. In December 2016, Council approved a carbon neutral gas plan, with a goal of achieving a
carbon neutral gas portfolio by FY 2018.6 The plan is for costs associated with the plan to be a
passed through directly to customers as well, although the rate impact is not to exceed $0.10
per therm.
CPAU has four rate schedules: one for separately metered residential customers (G-1), one for
small commercial and master-metered multi-family residential customers (G-2), one for
customers using over 250,000 therms per year (G-3) and a specific schedule for the Compressed
Natural Gas station (G-10). All customers pay a monthly service charge, which represents meter
reading, billing, and other customer service costs, as well as a portion of operations and
maintenance cost. All customers are also charged for each therm of gas used. Separately
metered residential customers are charged on a tiered basis, differentiated by season. During
the winter months, the first 2 therms per day (60 therms for a 30 day billing period) are charged
a base price per CCF, and all additional units charged a higher price per therm. During the
summer months, the first tier level is 0.667 therms per day, or 20 therms for a 30 day billing
period. Commercial customers pay a uniform price for each therm used.
Table 4 shows the current monthly service charges for all rate schedules. Table 7 shows the
consumption charges related to distribution charges. As mentioned earlier, commodity charges
change monthly, and transportation charges are tied to the PG&E G-WSL rate schedule. Three
years’ worth of volumetric rate history can be found on Palo Alto’s website.7 Some recent
commodity price history is discussed in Section 6A: Gas Purchase Costs.
Table 4: Current Monthly Service Charges
Rate Schedule Monthly Service Charge ($/month)
Current ( as of 7/1/16)
G-1 (Residential) $10.32
G-2 (Small Commercial) $78.23
G-3 (Large Commercial) $377.43
G-10 (CNG) $52.93
5 Staff Report 7260 10/17/2016 http://www.cityofpaloalto.org/civicax/filebank/documents/54165 6 Staff Report 7533 12/05/2016 http://www.cityofpaloalto.org/civicax/filebank/documents/54882 7 Monthly Gas Commodity & Volumetric Rates http://www.cityofpaloalto.org/civicax/filebank/documents/30399
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Table 5: Current Gas Distribution Charges
Current ( as of 11/1/16)
G-1 (Residential)
Tier 1 Rates 0.3933
Tier 2 Rates 0.9319
G-2 (Residential Master-Metered and Small Commercial)
Uniform Rate 0.5767
G-3 (Large Commercial)
Uniform Rate 0.5687
G-10 (Compressed Natural Gas)
Uniform Rate 0.0093
No changes to distribution rates are proposed for FY 2018.
SECTION 3C: PROPOSED RESERVE TRANSFERS
In the FY 2017 Financial Plan, $5.3 million was proposed to be transferred from the Rate
Stabilization Reserve into the Operations Reserve.
Lower actual expenses in FY 2016 as well as projected lower expenses in FY 2017 are expected
to result in higher ending reserve balances than initially projected, so staff recommends not
transferring funds at this time. A tentative transfer of $1.2 million in FY 2018, followed by $4.3
million in FY 2019, is included in the financial projections in this Financial Plan. These will enable
CPAU to maintain adequate Operations Reserve levels while moderating the pace of increase in
gas rates. The impact of these transfers on reserves levels can be seen in Appendix A: Gas Utility
Financial Forecast Detail.
SECTION 4: UTILITY OVERVIEW
This section provides an overview of the utility and its operations. It is intended as general
background information and to help readers better understand the forecasts in Section 5:
Utility Financial Projections and Section 6: Details and Assumptions.
SECTION 4A: GAS UTILITY HISTORY
On September 22, 1917, the City of Palo Alto issued a bond to purchase the property of Palo
Alto Gas Company and continue it as a municipal enterprise. At the time, the system comprised
21 miles of mains, 1,900 meters, and was valued at $65,500. PG&E supplied the gas, which was
synthesized from coal at its Potrero facility. Almost immediately the City faced challenges.
Losses were at nearly 25% according to PG&E’s master meter, and PG&E had filed with the
Railroad Commission (the forerunner to today’s Public Utilities Commission) to increase rates
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April 1 2 , 2016 9 | Page
by nearly 72.5%. Despite these initial hurdles, Palo Alto’s system grew tremendously, and by
1924 revenues had exceeded those of the electric utility. Sales were such that the annual
reports of the time noted gas usage “appears to be greater than that of any other city in the
state, showing that gas is a very popular form of fuel in Palo Alto.” Just prior to the acquisition
of the neighboring town of Mayfield’s gas system (centered around today’s California Avenue)
in 1929, the miles of main in service and customers connections had doubled.
Notable changes to the gas supply itself came in 1930, when PG&E ceased supplying purely
manufactured (or coal) gas from its Potrero Hill facility in San Francisco and instead switched to
natural gas. In 1935, a supplementary butane injection system (later retired) was purchased
from Standard Oil to mitigate large wintertime peaks. Gas sales were at 248,658 million cubic
feet (MCF) with 4,849 active services.
Early gas mains in Palo Alto were made of steel, but in the 1950s, like many other utilities, CPAU
switched to ABS plastic. CPAU switched to PVC plastic in the early 1970s, but around 100 miles
of ABS mains had already been installed. A 1990 evaluation of the system found a steadily
increasing rate of gas leaks associated with those mains, something that other gas utilities had
also been experiencing. To reduce leaks, CPAU accelerated its main replacement program from
7,000 feet (1.3 miles) of replacements per year to 20,000 feet (3.8 miles) per year. This would
enable the utility to replace all of its ABS and its most vulnerable steel and PVC mains with
polyethylene (PE) mains over the course of the following 36 years.8 As of 2015 the Gas Utility
had replaced approximately 99 miles of ABS, as well as some sections of steel where cathodic
protection was not effective. Current main replacement projects will target the last ~800 feet of
remaining ABS main as well as tackling PVC replacement. A PVC risk analysis to determine the
appropriate footage of annual PVC replacement for future CIP projects is currently being
conducted. This is an example of how local control of its Gas Utility has provided Palo Alto
residents with substantial benefits. During the 1990s and 2000s, while CPAU was increasing its
main replacement rate to ensure a robust gas distribution system, PG&E was underspending on
safety-related infrastructure, according to a past audit.9
In the 1990s, while grappling with the issues surrounding its distribution system, CPAU was also
participating in major changes to the structure of the gas industry in California. Until 1988 CPAU
had a formal policy of setting its rates equal to PG&E’s rates and successfully did so with the
exception of one year in the mid-1970s. At times this led to inadequate revenue (1974 to 1981)
as PG&E, the City’s only gas supplier, regularly filed requests with the CPUC to increase the
wholesale gas supply rates charged to the Gas Utility. In the 1990s, as the CPUC began
deregulating the natural gas industry in California, the Gas Utility began purchasing gas from
suppliers other than PG&E. In 1997 the CPUC adopted the “Gas Accord,”10 which enabled the
Gas Utility (along with other local transportation-only customers) to obtain transmission rights
on PG&E’s Redwood transmission pipeline running from Malin, Oregon into California.
8 Staff Report CMR:183:90. Infrastructure Review and Update, March 1, 1990 9 Focused Financial Audit of The Pacific Gas & Electric Company’s Gas Distribution Operations, Overland Consulting,
made available through a CPUC Administrative Law Judge’s ruling on A12-11-009/I13-03-007 on 5/31/2013 10 CPUC decision 97-08-055. Since then, the Gas Accord has been amended four times, with the most recent being
Gas Accord V, application A.09-09-013
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In 2000/2001 the California energy crisis occurred, causing major disruptions to the Gas Utility’s
supply costs. Wholesale gas prices rose over 500% between January 2000 and January 2001.
The Council approved drawing down reserves to provide ratepayer relief and, for two years
following the crisis, CPAU rates were above PG&E’s as reserves were replenished. In April 2001
the Council approved a hedging practice of buying fixed price gas one to three years into the
future. After reaching a low point in October 2001, prices continued to rise, and as a result the
CPAU hedging strategy frequently resulted in a wholesale supply cost advantage compared to
PG&E until prices began to decline steeply in mid-2008. At that point the Gas Utility’s wholesale
supply costs became higher than market gas prices due to fixed price contracts entered into
prior to 2008. As a result the Gas Utility’s wholesale supply costs were higher than PG&E’s for
several years. In 2012 Council approved a plan to formally cease the hedging strategy and
purchase all gas on the short-term (“spot”) markets. As of July 1, 2012, the commodity portion
of the gas rates changes every month based on the spot market gas price.
SECTION 4B: CUSTOMER BASE
CPAU’s Gas Utility provides natural gas service to the residents, businesses, and other gas
customers in Palo Alto. Close to 23,400 customers are connected to the natural gas system,
approximately 21,700 (93%) of which are residential and 1,700 (7%) of which are non-
residential. Residential customers consume about 10 to 12 million therms of gas per year,
roughly 45% of the gas sold, while non-residential customers consume 55% (about 14 to 15
million therms). Residential customers use gas primarily for space heating (46% of gas
consumed) and water heating (42%), with the remainder consumed for other purposes such as
cooking, clothes drying, and heating pools and spas.11 Non-residential customers use gas for
space and water heating (73% of gas consumed), cooking (20%), and industrial processes
(6%).12
The Gas Utility receives gas at the four receiving stations within Palo Alto where CPAU’s
distribution system connects with Pacific Gas and Electric’s (PG&E’s) system. These receiving
stations are jointly operated by CPAU and PG&E. CPAU purchases gas from various natural gas
marketers, with PG&E providing only local transportation service (transportation from the
PG&E City Gate gas delivery hub to Palo Alto). CPAU also has transmission rights on PG&E’s
transmission pipeline from Malin, Oregon to PG&E City Gate, allowing it to purchase lower
priced gas at that location. CPAU does not produce or store any natural gas, and purchases gas
in the monthly and daily spot markets. The cost of the purchased gas is passed through directly
to customers through a rate adjuster that varies monthly with market prices. In a similar
fashion, the cost for local transportation has now been tied to PG&E’s G-WSL rate schedule,
and varies when and if PG&E changes their rate schedule. The cost of purchased gas and PG&E
local transportation service usually account for roughly one third of the utility’s expenditures.
11 http://energyalmanac.ca.gov/naturalgas/overview.html 12 Source: Statewide Commercial End Use Study, California Energy Commission report, 2006. Statistics shown are
for end users in PG&E Climate Zone 4 (the Peninsula) where Palo Alto is located.
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SECTION 4C: DISTRIBUTION SYSTEM
To deliver gas from the receiving stations to its customers, the utility owns 210 miles of gas
mains (which transport the gas to various parts of the city) and 23,400 gas services (which
connect the gas mains to the customers’ gas lines). These mains and services, along with their
associated valves, regulators, and meters, represent the vast majority of the infrastructure used
to deliver gas in Palo Alto. CPAU has an ongoing CIP to repair and replace its infrastructure over
time, the expense of which normally accounts for around 15 to 20% of the utility’s
expenditures. Costs for main replacements have been going up in recent years.
In addition to the CIP, the Gas Utility performs a variety of maintenance activities related to the
system, such as monitoring the system for leaks, testing and replacing meters, monitoring the
condition of steel pipe, and building and replacing gas services for buildings being built or
redeveloped throughout the city. The utility also shares the costs of other system-wide
operational activities (such as customer service, billing, meter reading, supply planning, energy
efficiency, equipment maintenance, and street restoration) with the City’s other utilities. These
maintenance and operations expenses, as well as associated administration, debt service, rent,
and other costs, make up roughly half of the utility’s expenses. In addition to these ongoing
activities, CPAU has conducted a program to find and replace cross-bores over the last several
years. Currently, $1 million is budgeted per year for the cross-bore program through FY 2019.
However, the ongoing cross-bore investigation may require additional funding, or extend for
longer into the future, as the remaining sewer lines are more difficult to examine than the
majority of the wastewater collection system that has been examined to date.
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Figure 2: Cost Structure (FY 2016)
57%27%
16%
Operations
Gas Purchases
Capital
Figure 1: Revenue Structure (FY 2016)
93%
7%
Sales of Gas
Other Revenue
SECTION 4D: COST STRUCTURE AND REVENUE SOURCES
As shown in Figure 1, the Gas
Utility receives 93% of its revenue
from sales of gas and the
remainder from capacity and
connection fees, interest on
reserves, and other sources.
Appendix A: Gas Utility Financial
Forecast Detail shows more detail
on the utility’s cost and revenue
structures.
As shown in Figure 2, in FY 2016,
gas purchase costs accounted for
roughly 27% of the Gas Utility’s
costs. This percentage can vary
widely from year to year, as this
cost is based upon market
purchases, but now also includes
costs related to cap and trade. In
FY 2016, Palo Alto received a
large transportation rate
settlement from PG&E, which
lowered costs substantially. This
stemmed from the CPUC’s
findings related to the San Bruno
pipeline explosion. Operational
costs represented roughly 57%, and capital investment was responsible for the remaining 16%.
CIP is normally about 20% of expenses, but this may be lower in times when projects are
deferred, as will happen in FY 2017 and FY 2018.
SECTION 4E: RESERVES STRUCTURE
CPAU maintains six reserves for its Gas Utility to manage various types of contingencies. These
are summarized below, but see Appendix C: Gas Utility Reserves Management Practices for
more detailed definitions and guidelines for reserve management:
• Reserve for Commitments: A reserve equal to the utility’s outstanding contract
liabilities for the current fiscal year. Most City funds, including the General Fund, have a
Commitments Reserve.
• Reserve for Reappropriations: A reserve for funds dedicated to projects reappropriated
by the City Council, nearly all of which are capital projects. Most City funds, including
the General Fund, have a Reappropriations Reserve.
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• Capital Improvement Program (CIP) Reserve: The CIP reserve can be used to
accumulate funds for future expenditure on CIP projects and is anticipated to be empty
unless a major one-time CIP expenditure is expected in future years. This CIP can also
act as a contingency reserve for the CIP. This type of reserve is used in other utility funds
(Electric, Water, and Wastewater Collection) as well.
• Rate Stabilization Reserve: This reserve is intended to be empty unless one or more
large rate increases are anticipated in the forecast period. In that case, funds can be
accumulated to spread the impact of those future rate increases across multiple years.
This type of reserve is used in other utility funds (Electric, Water, and Wastewater
Collection) as well.
• Operations Reserve: This is the primary contingency reserve for the Gas Utility, and is
used to manage yearly variances from budget for operational gas costs. This type of
reserve is used in other utility funds (Electric, Water, and Wastewater Collection) as
well.
• Unassigned Reserve: This reserve is for any funds not assigned to the other reserves
and is normally empty.
SECTION 4F: COMPETITIVENESS
Table 6 presents winter and summer residential bills for Palo Alto and PG&E at several usage
levels for commodity rates in effect as of May 2016 (to illustrate a summer month bill) and
March 2017 (to illustrate a winter month bill). The annual gas bill for the median residential
customer for calendar year 2016 was $426.72, about 20% lower than the annual bill for a PG&E
customer with the same consumption. PG&E’s distribution rates for gas have increased
substantially to collect for needed system improvements for pipeline safety and maintenance.
The bill calculations for PG&E customers are based on PG&E Climate Zone X, an area which
includes the surrounding communities.
Table 6: Residential Monthly Natural Gas Bill Comparison ($/month)
Season
Usage
(therms) Palo Alto PG&E Zone X
%
Difference
Winter
(March 2017)
30 34.88 41.57 -16%
(Median) 54 54.53 74.82 -27%
80 85.50 120.77 -29%
150 180.51 255.05 -29%
Summer
(May 2016)
10 19.93 17.77 12%
(Median) 18 21.94 21.46 2%
30 35.13 41.55 -15%
45 52.91 66.66 -21%
Table 7 shows the monthly gas bills for commercial customers for various usage levels for rates
in effect as of March, 2017. Bills for CPAU customers at the usage levels shown are around 10%
to 33% higher for commercial customers than for PG&E customers. This is a substantial
improvement over the calendar year 2013 bill comparison, when commercial gas bills for CPAU
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April 1 2 , 2016 14 | Page
customers were 27% to 44% higher than for PG&E customers. This is primarily attributable to
PG&E’s increased distribution rates as the commodity rates for CPAU and PG&E are very similar,
both being based on spot market gas prices.
Table 7: Commercial Monthly Average Gas Bill Comparison
(for Rates in Effect March, 2017)
Usage (therms/mo)
Gas Bill ($/month) %
Difference Palo Alto PG&E
500 616 545 13%
5,000 5,459 4,957 10%
10,000 10,840 8,856 22%
50,000 53,788 40,453 33%
SECTION 4G: GAS SUPPLY RATES
Starting in July 2012, CPAU replaced a “laddering” hedging strategy for purchasing gas supplies
with a strategy to buy gas on the short-term, or “spot” markets and pass the commodity cost to
customers on a monthly basis. The actual commodity prices are shown in Figure 3. As shown,
commodity prices have fluctuated by around $0.20 over the last two years, but have generally
been lower than prices seen in 2013 and 2014.
Figure 3: Gas Commodity Rates from July 2012 through March 2017
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SECTION 5: UTILITY FINANCIAL PROJECTIONS
SECTION 5A: LOAD FORECAST
Gas usage in Palo Alto is volatile, varying with both economic and weather conditions. As shown
in Figure 4, in the early 1970’s, gas purchases reached over 45 million therms per year. Usage
dropped dramatically in the 1976/1977 drought when customers saved significant amounts of
(hot) water by upgrading to efficient showerheads. During the 1980s and 90s average gas usage
was around 36 million therms per year. Usage dropped again in the early 2000’s. In FY 2001, gas
prices escalated during the California energy crisis and Palo Alto’s rates increased by nearly
200%. From 2003 to 2011, usage decreased by 2.3% mainly as a result of continued customer
investments in energy efficiency.
In 2014 and 2015, unusually warm winters, as well as ongoing drought, caused gas usage to
tumble to historic lows. In FY 2017, as the drought has eased and a relatively normal winter has
progressed, gas usage has started to increase again.
Figure 4: Historic Gas Consumption
Gas consumption, as denoted by the dotted line in Figure 5, is projected to recover somewhat
and stay stable over the forecast period, although changes such as replacement of gas
appliances with electric appliances or customer behavior may result in lower long run usage. As
with prior drought/gas usage declines in the past, it is likely that consumption will not come
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April 1 2 , 2016 16 | Page
back to pre-conservation levels. It is too early to tell, however, where the new ‘normal’ level of
consumption will be.
Figure 5: Forecast Gas Consumption
SECTION 5A: FY 2012 TO FY 2016 COST AND REVENUE TRENDS
Figure 6 and Appendix A: Gas Utility Financial Forecast Detail show how costs have changed
during the last five years as well as how they are projected to change over the next decade.
The annual expenses for the gas utility decreased substantially between 2012 and 2016 due to
lower gas sales. Market prices for gas supplies are shown in Figure 3 above. FY 2014 and 2015
were notable due to the fact that no new funding was added for main replacement projects, to
permit the completion of a backlog of projects which had previously been funded. This allowed
for backlogged gas main replacement projects to be started, and used existing capital reserves.
Starting in FY 2012, additional funding for gas cross-bore inspections increased Operations
costs.
Revenues have generally matched expenses in most years. As shown in Figure 6 below,
revenues were below cost in FY 2011 and FY 2013 and nearly at cost in FY 2016. The absence of
funding for main replacement projects in FY 2014 and FY 2015, as well as the availability of
relatively large reserves, forestalled the need for rate increases until now.
As shown in Figure 6, the last adjustment to gas distributionrates was in July 2016 when rates
were increased by 8%. In FY 2012, commodity rates were changed to a market-based, monthly
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pass-through cost—and commodity rates (and usage) fell, so revenues actually declined in FY
2013 after the rate increase.
Figure 6: Gas Utility Expenses, Revenues, and Rate Changes:
Actual Costs through FY 2016 and Projections through FY 2027
SECTION 5B: FY 2016 RESULTS
Sources of funds for FY 2016 were in line with projections, but expenses related to Purchases
and Capital spending came in well below expected budget. Total FY 2016 expenses were $30.4
million compared to projections of $35.9 million in the FY 2017 Financial Plan. Table 8
summarizes the variances from forecast.
Table 8: FY 2016, Actual Results vs. Financial Plan Forecast
Net Cost/(Benefit) Type of change
Purchase costs lower than forecast (1,132,000) Cost savings
Operations cost savings and reclass (2,498,000) Cost savings
Capital Improvement cost spending (1,872,000) Cost savings
Operations cost savings (31,000) Cost savings
Net Cost / (Benefit) of Variances $(5,465,000)
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SECTION 5C: FY 2017 PROJECTIONS
Current projections indicate that sales revenues will be slightly higher than last year’s forecast.
However, a main replacement projected budgeted for this year will not be started until FY
2019. Table 9 summarizes the current and projected variances from FY 2017 Financial Plan.
Table 9: FY 2017 Projected Results vs. Financial Plan Forecast
Net Cost/ (Benefit) Type of change
Sales revenues higher than forecast (984,000) Revenue increase
Other revenues and interest higher than forecast (742,000) Revenue increase
Operations & maintenance, Customer service and
purchase cost increases
617,000 Cost increase
Main replacement projects delayed (4,091,000) Cost savings
Net Cost / (Benefit) of Variances ($5,200,000)
SECTION 5D: FY 2018-FY 2027 PROJECTIONS
As can be seen in Figure 6 above, costs for the Gas Utility are projected to rise in FY 2017, then
are projected to increase at around 3% per year through FY 2026. In Operations, this is due to
an additional continuing $1 million for cross-bore inspections (this expense is projected to
continue for at least three years), as well as general inflationary increases of around 2.6% per
year. Salaries and benefits expenses are projected to rise at nearly 4% per year, per the City’s
Long Range Financial Plan. New CIP main replacement programs are projected to be put on
hold until FY 2019. At that point, CIP spending is projected to return to normal levels (around $6
million), then grow at around 2% per year thereafter. Gas commodity costs are the most
variable component. At the time the budget was developed in December 2016, gas supply
prices were projected to increase by around 3 to 4% per year. Since this is a pass-through cost
to customers, the risk of these costs being higher or lower than expected has a minimal impact
on reserves.
As shown in Figure 7, the Rate Stabilization Reserves are projected to be depleted by FY 2020.
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Figure 7: Gas Utility Reserves
Actual Reserve Levels for FY 2016 and Projections through FY 2027
SECTION 5E: RISK ASSESSMENT AND RESERVES ADEQUACY
The Gas Utility’s primary contingency reserve, the Operations Reserve, is projected to be within
guideline levels throughout the forecast period, barring either short-run budget savings and/or
larger future increases. Figure 8 shows the Operations Reserve recovering to the target level by
FY 2027 with the projected rate trajectory.
Figure 8: Operations Reserve Adequacy
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April 1 2 , 2016 20 | Page
Forecasted Operations Reserve levels also exceed the short-term risk assessment for the Utility.
Table 10 summarizes the risk assessment calculation for the Gas Utility through FY 2022. The
same methodology is used for FY 2023 through FY 2027 as well. The risk assessment includes
the revenue shortfall that could accrue due to:
1. Lower than forecasted distribution sales revenue; and
2. An increase of 10% of planned system improvement CIP expenditures for the budget
year.
Table 10: Gas Risk Assessment ($000)
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Total non-commodity revenue $20,465 $21,676 $23,503 $25,557 $27,559
Max. revenue variance, previous ten years 16% 16% 16% 16% 16%
Risk of revenue loss $3,282 $3,476 $3,769 $4,098 $4,419
CIP Budget $809 $4,421 $4,617 $4,762 $4,911
CIP Contingency @10% $81 $442 $462 $476 $491
Total Risk Assessment value $3,363 $3,918 $4,231 $4,575 $4,910
Finally, the CIP Reserve was created at the end of FY 2015 to act as a contingency reserve for
capital improvement projects. Current guidelines state that the balance of this reserve should
fall between 12 and 24 months of budgeted CIP expense.
At the end of FY 2016, the sum of the CIP Reserve and existing Commitments was a bit over $10
million, as shown in Figure 7. Based upon FY 2017’s adjusted CIP budget, this is well above the
maximum reserve level of $1.97 million. However, the next two years are anomalous in that a
main replacement project is not scheduled. As a normal year maximum would be between $9
to $11 million, staff does not recommend reducing the CIP reserve at this time, especially in
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April 1 2 , 2016 21 | Page
light of the fact that CIP project costs have been increasing. Staff will continue to review this
reserve and the appropriateness of the current minimum and maximum guideline levels.
SECTION 5F: LONG-TERM OUTLOOK
In the longer term (5 to 35 years out) it is very difficult to predict the Gas Utility’s commodity
costs. A variety of long-term trends could affect commodity costs either positively or negatively.
Continuing improvement in gas extraction technology, such as fracking, could continue to
create generous supplies of gas, but these technologies are also under greater scrutiny with
respect to their environmental impacts. On the demand side, a continued shift from coal to
natural gas for electricity generation or an increase in manufacturing in the U.S. might drive up
natural gas prices, but other factors, such as generally more mild winters, might drive gas
demand lower. It is also difficult to predict the magnitude of the additional cost impacts
associated with the State’s cap-and-trade program over the long term. In the face of this
uncertainty, CPAU is able to protect the financial position of the Gas Utility by continuing its
current strategy of passing these costs directly to its customers via month-varying rate
adjustment mechanisms. The City has recently opted to pursue a policy of purchasing offsets to
make gas usage in Palo Alto carbon neutral. The cost is not to exceed $0.10/therm.
Future CIP investment needs for the Gas Utility may be lower than in the past, although costs
per foot for main replacement have been increasing substantially. The Gas Utility has replaced
nearly all of its ABS gas mains and its most problematic steel and PVC mains as well. The PE pipe
being used now is expected to have at least a fifty-year lifetime, and there is growing evidence
that it may last much longer than that. This would result in lower CIP investment over the long
term. CPAU is considering performing a study in the near future to develop its future main
replacements priorities and strategy.
Long-term state or local climate goals could also have a major impact on the Gas Utility. The
Global Warming Solutions Act, Assembly Bill 32 (AB32), set a goal of reducing greenhouse gas
(GHG) emissions to 1990 levels by 2020. In its December 2007 Climate Protection Plan, the City
set a goal of lowering emissions to 15% below 2005 levels by 2020. As a community Palo Alto
achieved these goals in 2012 even with continued use of natural gas for heating, cooking, and
industrial processes. However, to achieve the recently adopted Sustainability and Climate
Action Plan (S/CAP) goal of an 80% reduction in carbon emissions by 2030, or the State’s
adopted goal of an 80% reduction in emissions by 2050 some amount of electrification of gas-
using appliances is likely to be necessary. If significant amounts of electrification occurred,
stranded investment and higher rates could be required as the costs of the distribution system
are recovered over a lower sales base. It is instructional that, in the recent discussion draft of its
scoping plan update, CARB says, to meet those goals, natural gas use would have to be “mostly
phased out.”13 Staff intends to begin evaluating how to manage potential impacts of these
trends over the next few years..
13 Climate Change Scoping Plan, First fUpdate, Discussion Draft for Public Review and Comment, California Air
Resources Board, October 2013, pg 88.
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SECTION 6: DETAILS AND ASSUMPTIONS
SECTION 6A: GAS PURCHASE COSTS
The Gas Utility purchases much of its gas for delivery at Malin, Oregon which is almost always
cheaper than delivery at PG&E City Gate, even including the costs of transmission from Malin to
City Gate. Gas is purchased on a month-ahead and day-ahead basis in the spot market. The last
few years have seen gas prices in a relatively narrow but low band, but prices for the last year
have risen somewhat. High levels of natural gas in storage, along with warmer than normal
weather on the West coast has kept prices low, as shown in Figure 9.
Figure 9: Gas Market Prices at PG&E Citygate
Gas commodity costs are expected to increase steadily over the next several years. Figure 10
shows the projected gas prices used to generate this forecast. Projections for transmission costs
associated with transporting gas over PG&E’s Redwood transmission pipeline (from Malin,
Oregon to the PG&E Citygate) are based on rates adopted in the most recent update to the Gas
Accord.
Local transportation costs decreased on January 1, 2015 due to the expiration of a temporary
adder to PG&E’s local transportation rate,14 but in December 2014 PG&E applied to the CPUC
14 California Public Utilities Commission Advice Letter 3430-G, effective January 1, 2014. Also see CPUC Decision
12-12-30 regarding the Pipeline Safety Enhancement Plan Adder.
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April 1 2 , 2016 23 | Page
to more than double local transportation costs. The application was not settled until late 2016.
As these charges are dictated by PG&E and are outside of Palo Alto’s control, staff proposed
making these costs pass-through charge, similar to the commodity charge, and this became
effective in November, 2016.
Figure 10: Wholesale Gas Price Projections
SECTION 6B: OPERATIONS
Operations costs include the Customer Service, Demand Side Management, Operations and
Maintenance (including Engineering), Resource Management, and Administration categories in
Figure 11, below. Debt service, rent, and transfers are also included in Operations costs
(excluding the General Fund equity transfer). Appendix D: Description of Gas Utility Cost
Categories includes detailed descriptions of the activities associated with these cost categories.
Operations costs are projected to increase by 2 to 4% per year. Salary and benefits, inflation,
and other assumptions match those used in the City’s long-range financial forecast.
Operations costs for FY 2017 to FY 2019 include funding for the cross-bore program. In the
1970s CPAU, like many other utilities, adopted horizontal drilling as an alternative to trenching
when installing new gas services. This created the possibility of cross-bores, which can happen
when a gas service is bored through a sewer lateral. Though cross-bores are very rare, they can
create a dangerous situation when a contractor attempts to clear a blocked sewer line, because
if the cross-bored gas service is damaged during the line clearing it can result in a gas leak.
CPAU has been inspecting new gas services since 2001, and in 2011 began video inspections of
the sewer laterals at the location of horizontally-drilled gas services installed before 2001. This
inspection program has cost roughly $1 million per year since FY 2012. While a majority of
sewer laterals have been inspected, staff has come across several services which are not able to
be scoped, either due to infiltration by roots or broken/collapsed pipe segments. Staff has
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April 1 2 , 2016 24 | Page
included $3 million in additional funding between FY 2017 and FY 2019 for this program, but
the program will likely require additional funding in future years to complete.
Figure 11: Historical and Projected Operational Costs
SECTION 6C: CAPITAL IMPROVEMENT PROGRAM (CIP)
The Gas Utility’s CIP program consists of the following programs and budgets:
• The Gas Main Replacement Program, under which the Gas Utility replaces aging gas
mains
• Customer Connections, which covers the cost when the Gas Utility installs new services
or upgrades existing services at a customer’s request in response to development or
redevelopment. The Gas Utility charges a fee to these customers to cover the cost of
these projects.
• Ongoing Projects, which covers the cost of routine meter, regulator, and service
replacement, minor projects to improve reliability or increase capacity, and other
general improvements.
• Tools and Equipment, which covers the cost of capitalized equipment, such as
directional boring equipment.
• One-time Projects, which represents occasional large projects that do not fall into any
other category.
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April 1 2 , 2016 25 | Page
Table 11 shows the current status of these project categories and future projected spending.
Table 11: Budgeted Gas CIP Spending
The Gas Main Replacement (GMR) Program is in the process of reaching a major milestone, the
replacement of the last gas mains made from ABS plastic. The program to replace ABS and
other low-performing materials in the system started in the 1990s (see Section 4A: Gas Utility
History for more detail). CPAU temporarily slowed down its new CIP appropriations in this
category in FY 2014 and 2015 in order to finish the last major ABS main replacement project
and to catch up on a backlog of projects that has accumulated due to staffing issues. With the
replacement of all ABS mains with PE plastic, the material most at risk for failure is removed
leaving only PVC plastic, steel (wrapped, with cathodic protection), and PE mains. The next
focus of the GMR program will be PVC mains. CPAU is considering updating the Gas System
Master Plan to determine which areas of the system to prioritize. The plan will help CPAU
determine whether the pace of main replacement (approximately three miles of main each
year, or 1.5% of the system) needs to be increased, decreased, or whether it needs to remain
the same.
The current budgets for gas main replacement might not fully take into account the recent rise
in costs for main replacement, which have increased from the levels seen during the recent
recession. Several factors may be contributing to this. Economic recovery in the Bay Area, as
well as a greater focus on infrastructure improvement by many municipal agencies and utilities
could be creating high demand for contractors in these fields. Newer, more leak resistant pipe
materials may have ongoing greater costs. CPAU has seen the replacement cost per linear foot
increase by 25 to 50% over the last couple of years. Currently CPAU plans to complete as much
main replacement as possible within its current budget, provided there are no safety concerns.
However, if this trend of higher cost continues, the Gas Utility may require larger CIP budgets,
and as a result, larger rate increases.
These increases in cost are a partial reason for the two year delay in projects. The most recent
project, when put out for bid, resulted in very few contractors competing, and project bids
larger than budgeted. Staff will redesign this and future projects into smaller segments to keep
budgets lower, while not compromising on overall system integrity. The other reason for delay
is the University Avenue Business District project, and getting coordination amongst all
departments is taking more time than expected. Finally, there has been an ongoing issue with
keeping and maintaining qualified staff to design and work on projects.
Project Category
Current
Budget*
Spending,
Curr. Yr
Remain.
Budget**Committed FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
One Time Projects 425 (2) 423 109 - - - - -
Gas Main Replacement 4,878 (187) 4,691 - - 3,588 3,759 3,878 4,000
Tools And Equipment 146 - 146 20 - 640 - - -
Ongoing Projects 254 (140) 114 88 809 833 858 884 911
Customer Connections 232 (660) (428) 159 1,265 1,303 1,342 1,383 1,424
TOTAL 5,935 (988) 4,946 375 2,074 6,365 5,960 6,145 6,335
*Includes unspent funds from previous years carried forward or reappropriated into the current fiscal year
**Equal to CIP Reserves (Reserve for Reappropriations + Reserve for Commitments).
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April 1 2 , 2016 26 | Page
Ongoing Projects, Tools and Equipment, and Customer Connections are projected to cost
approximately $0.8 million in FY 2018 and increase by 3% per year through the end of the
forecast period. In practice, these projects can fluctuate dramatically depending on system
conditions and the pace of development and redevelopment in the city. It is worth noting that
the Customer Connections program is paid for through fee revenue, so when costs go up, so
does fee revenue.
Aside from customer connections and some transfers from other funds, the CIP plan for
FY 2018 to FY 2022 is funded by utility rates. The details of the plan are shown in Appendix B:
Gas Utility Capital Improvement Program (CIP) Detail.
SECTION 6D: DEBT SERVICE
The Gas Utility currently makes debt service payments on one bond issuance, the 2011 Series A
Utility Revenue Refunding Bonds. This bond issuance was to refinance the $18 million principal
remaining on the Utility Revenue Bonds, 2002 Series A issued for the Gas and Water Utilities to
finance various improvements to the distribution systems. $9.4 million of this issuance was
secured by the net revenues of the Gas Utility. Debt service for this bond for the financial
forecast period is shown in Table 12. Debt service on this bond will continue through 2026.
Table 12: Gas Utility Debt Service
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
2011 Utility Revenue
Refunding Bonds, Series A 803 802 800 800 802 804 805 803 800 803
The 2011 bonds include two covenants stating that 1) the Gas Utility will maintain a debt
coverage ratio of 125% of debt service, and 2) that the City will maintain “Available Reserves”15
equal to five times the annual debt service. The current financial plan complies with these
covenants throughout the forecast period, as shown in Table 13 and
Table 14.
Table 13: Debt Service Coverage Ratio ($000)
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
Revenues 36,643 38,225 39,175 41,695 44,306 46,879 49,025 50,992 52,835 54,530
Expenses
(Excluding CIP and
Debt Service)
(33,926) (37,223) (37,033) (37,063) (37,804) (39,621) (41,057) (42,646) (44,305) (46,100)
Net Revenues 2,717 1,002 2,142 4,632 6,502 7,258 7,968 8,346 8,530 8,430
Debt Service 803 802 800 800 802 804 805 803 800 803
Coverage Ratio 338% 125% 268% 579% 811% 903% 990% 1039% 1039% 1039%
15 Available Reserves as defined in the 2011 bonds include the reserves for the Water, Electric, and Gas Utilities
GAS UTILITY FINANCIAL PLAN
April 1 2 , 2016 27 | Page
Table 14: Debt Service Minimum Reserves ($000)
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
Gas Utilitya 19711 17838 13456 11328 10883 11003 11642 12465 13273 14588
Debt Serviceb 803 804 803 802 801 801 802 803 800 803
Reserves Ratioc 25x 22x 17x 14x 14x 14x 15x 16x 16x 16x
a) CIP, Rate Stabilization, Operations, and Unassigned Reserves
b) Gas Utility’s share of the debt service on the 2011 bonds.
c) Calculated using only Gas Utility reserves. The actual reserves ratio for the 2011 bonds is calculated based on the
combined Electric, Gas, and Water Utility reserves and debt service and is higher than shown here.
The Gas Utility’s reserves and net revenue are also pledged as security for the bond issuances
listed in Table 15, even though the Gas Utility is not responsible for the debt service payments.
The Gas Utility’s reserves or net revenues would only be called upon if the responsible utilities
are unable to make their debt service payments. Staff does not currently foresee this occurring.
Table 15: Other Issuances Secured by Gas Utility’s Revenues or Reserves
Bond Issuance Responsible Utilities Annual Debt
Service ($000)
Secured by Gas Utility’s:
Net Revenues Reserves
1995 Series A Utility
Revenue Bonds Storm Drain $680 Yes No
1999 Utility Revenue
Bonds, Series A
Wastewater Collection
Wastewater Treatment
Storm Drain
$1,207 No Yes
2009 Water Revenue
Bonds (Build America
Bonds)
Water $1,977* No Yes
*Net of Federal interest subsidy
SECTION 6E: EQUITY TRANSFER
The City calculates the equity transfer from its Gas Utility based on a methodology adopted by
Council in 2009 that has remained unchanged since16. Each year it is calculated according to the
2009 Council-adopted methodology, and does not require additional Council action.
SECTION 6F: REVENUES
The Gas Fund receives most of its revenues from sales of gas, but about 8% comes from other
sources. The largest of these comes from service connection and capacity fees, followed closely
by sales of allowances related to California’s cap-and-trade program. Another revenue item
related to the cap-and-trade program is collected in customers’ bills. While the State provides
CPAU with a certain number of free allowances each year, the Gas Utility is required to sell a
portion of those in accordance with the regulations. In order to have enough allowances to
16 For more detail on the ordinance adopting the 2009 transfer methodology, see CMR 280:09, Budget Adoption
Ordinance for Fiscal Years 2009 and 2010; and CMR 260:09, Finance Committee Report explaining proposed
changes to equity transfer methodology.
GAS UTILITY FINANCIAL PLAN
April 1 2 , 2016 28 | Page
cover customers’ natural gas emissions, CPAU must buy allowances at market, and
subsequently passes through the cost of those allowances to customers. The regulations do not
allow the revenue derived from the sale of the free allowances to offset allowance purchases,
thus the pass-through rate component.
Sales revenue projections are based on the load forecast in Section 5A: Load Forecast. Except
where stated otherwise, these load forecasts are based on normal weather. Weather can vary
substantially, however, and this can affect revenues substantially. Also, changes in customer
behavior, as well as changes to more efficient gas appliances, or switching to electric
appliances, will modify these forecasts. Forecasts are continually evaluated to see when new
trends emerge.
SECTION 6G: COMMUNICATIONS PLAN
The FY 2018 communications strategy covers four primary areas: operations, infrastructure,
safety, efficiency, renewables and rates. Since moving to market pricing for commodity rates,
changes to the commodity rates are posted monthly on the City’s website. Gas use efficiency
incentives are promoted year-round, but most heavily during winter months to impact heating
activities. Promotional methods include community outreach events, print ads in local
publications, utility bill inserts, messaging on the bills and envelopes, website pages, email
blasts, videos for the web and local Comcast channels, Home Energy Reports and the use of
social media.
To keep customers apprised of the status and accomplishments of capital improvement
projects, a network of project web pages are maintained. Traffic is driven to the website via
print and digital ads, social media and email blasts. Safety topics are emphasized year-round.
CPAU is engaging in several campaigns and programs in FY 2018 to promote gas utility
efficiency and renewable energy. The Georgetown University Energy Prize competition is a
friendly, national campaign to encourage communities to reduce energy use. Energy savings
from reduced gas and electric consumption qualify to help Palo Alto compete for a $5 million
prize at the end of a two-year campaign. Since adoption of a carbon neutral electric supply
portfolio, CPAU launched a new voluntary renewable natural gas carbon offsets program,
PaloAltoGreen Gas. Much of our programmatic promotional activity will center around
customer education and encouragement to sign up for participation in PaloAltoGreen Gas.
Other new programs include home efficiency services and online tools to help customers
manage their energy use.
Stepping up efforts to promote gas safety education, staff is focusing outreach around youth,
the importance of calling USA (811) before digging for anyone who may excavate in and around
Palo Alto, such as plumbers and contractors, potential sewer and gas line cross-bores, keeping
fats, oils and greases out of drains, and ensuring clear access to meters. For younger
“customers-to-be,” CPAU created a Home Safety Detective campaign that includes special tool
kits to help them identify home safety problems. Staff provides safety kits to youth and adults
at school presentations, neighborhood safety and emergency preparedness fairs and other
community outreach events. Meter access awareness is highlighted through use of materials
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April 1 2 , 2016 29 | Page
featuring photos of some unusual ways people obstruct access to their meters, including using
them as bike racks and building storage sheds around them.
CPAU will continue to promote safety, infrastructure, operations, efficiency and rate
adjustment messages through a variety of marketing and media channels. Every year, CPAU
publishes an updated gas safety awareness brochure which is mailed to all customers in Palo
Alto, as well as plumbers, contractors and excavators that may work in and around the area.
Staff talks with business customers at special facilities meetings, attends neighborhood safety
and emergency preparedness fairs and offers presentations to school and community groups.
While print materials and website pages still feature prominently, CPAU is turning the outreach
emphasis to direct mail, newspaper inserts, social media, online videos and cable TV. Copies of
all outreach materials and logs of activities are saved in the Gas Safety Public Awareness Plan
that is reviewed at least once per year by the Department of Transportation.
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APPENDICES
Appendix A: Gas Financial Forecast Detail
Appendix B: Gas Utility Capital Improvement Program (CIP) Detail
Appendix C: Gas Utility Reserves Management Practices
Appendix D: Description of Gas Utility Cost Categories
Appendix E: Gas Utility Communications Samples
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APPENDIX A: GAS FINANCIAL FORECAST DETAIL
($'000)
Actual Actual Actual Actual Actual
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
1 RATE CHANGE (%)*0%12%0%0%0%8%0%4%6%6%5%3%3%2%1%0%
2 SALES IN THOUSAND THERMS 30,447 28,901 28,117 28,881 26,719 27,829 27,434 27,463 27,623 27,546 27,482 27,432 27,394 27,450 27,510 27,541
3
4 Utilities Retail Sales 41,034 33,759 34,843 29,515 28,065 33,243 33,852 34,339 36,422 38,683 40,918 42,694 44,275 45,736 46,948 47,566
5 Service Connection & Capacity Fees 592 731 654 602 961 1,017 1,048 1,079 1,111 1,145 1,179 1,179 1,179 1,179 1,179 1,179
6 Other Revenues & Transfers In 103 830 313 415 873 1,857 2,965 3,395 3,906 4,251 4,573 4,916 5,266 5,623 6,081 6,043
7 Interest plus Gain or Loss on Investment 1,119 (239)706 450 730 526 361 362 256 227 209 237 272 297 322 338
8 Total Sources of Funds 42,847 35,081 36,517 30,982 30,629 36,643 38,225 39,175 41,695 44,306 46,879 49,025 50,992 52,835 54,530 55,126
9
10 Purchases of Utilities:
11 Supply Commodity 15,356 12,461 12,992 9,537 9,178 10,098 12,106 11,487 11,805 12,097 12,495 13,001 13,616 14,254 14,980 15,468
12 Supply Transportation 879 994 1,333 982 (1,051)2,944 3,331 3,444 3,499 3,487 3,526 3,568 3,611 3,655 3,699 3,767
13 Total Purchases 16,235 13,455 14,325 10,519 8,127 13,042 15,437 14,931 15,304 15,584 16,021 16,569 17,227 17,909 18,679 19,235
14
15 Administration (CIP + Operating)3,473 4,273 3,988 4,007 3,337 3,064 3,147 3,232 3,319 3,408 3,500 3,594 3,691 3,790 3,892 3,997
16 Customer Service 1,270 1,358 1,338 1,195 1,097 1,584 1,644 1,705 1,767 1,830 1,896 1,964 2,034 2,107 2,183 2,261
17 Demand Side Management 614 630 438 632 566 1,471 1,512 1,554 1,597 1,641 1,686 1,732 1,780 1,828 1,879 1,930
18 Engineering (Operating)333 340 352 369 426 529 547 565 584 604 623 644 665 687 710 733
19 Operations and Maintenance 5,032 4,940 4,119 4,403 4,153 5,980 6,189 6,398 5,613 5,807 6,007 6,215 6,429 6,652 6,882 7,120
20 Resource Management 729 506 516 556 472 724 748 772 798 823 850 877 905 934 965 996
21 Debt Service Payments 406 296 805 804 249 803 802 800 800 802 803 804 802 799 802 -
22 Rent 230 219 419 431 443 455 467 480 492 505 519 532 546 561 574 587
23 Transfers to General Fund 6,006 5,971 5,811 5,730 6,194 6,594 7,035 6,888 7,069 7,069 7,974 8,370 8,794 9,248 9,734 9,739
24 Other Transfers Out 170 207 606 151 303 484 496 508 520 533 546 560 573 587 602 617
25 Capital Improvement Programs 7,821 7,620 1,026 1,832 5,017 2,214 2,074 5,725 5,960 6,145 6,335 6,525 6,721 6,923 7,130 7,344
26 Total Uses of Funds 42,320 39,814 33,743 30,629 30,384 36,943 40,098 43,557 43,823 44,751 46,759 48,386 50,169 52,027 54,032 54,561
27
28 Into/ (Out of) Reserves 528 (4,733)2,773 353 245 (300)(1,874)(4,382)(2,127)(446)120 639 823 808 499 565
29
30 Reappropriations + Commitments 19,211 19,363 11,305 6,491 6,255 6,255 6,255 6,255 6,255 6,255 6,255 6,255 6,255 6,255 6,255 6,255
31 Plant Replacement 1,000 1,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0
32 CIP Reserve 0 0 0 1,591 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820
33 Rate Stabilization 15,992 11,318 15,981 7,215 6,018 6,018 4,810 524 0 0 0 0 0 0 0 0
34 Operations Reserve 0 0 0 10,847 10,296 9,873 9,208 9,112 7,508 7,063 7,183 7,822 8,645 9,453 10,768 11,333
35 Unassigned 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
36 Total Reserves 36,203 31,681 27,286 26,144 26,389 25,966 24,093 19,711 17,583 17,138 17,258 17,897 18,720 19,528 20,843 21,409
37 (1,142)245 (423)(1,874)(4,382)(2,127)(446)120 639 823 808 1,315 566
38 Short Term Risk Assessment Value 1,226 3,753 3,560 3,363 3,918 4,231 4,575 4,910 5,144 5,340 5,510 5,635 5,659
39
40 Operations Reserve Guidelines
41 Min (60 Days Commodity + O&M) 5,620 5,000 5,821 6,139 6,074 6,039 6,136 6,412 6,622 6,856 7,100 7,357 7,425
42 Target (90 Days Commodity + O&M) 8,429 7,500 8,731 9,208 9,112 9,058 9,204 9,618 9,933 10,284 10,650 11,036 11,137
43 Max (120 Days Commodity + O&M) 11,239 10,000 11,641 12,277 12,149 12,077 12,272 12,824 13,244 13,712 14,201 14,715 14,849
44
City of Palo Alto
Gas Utility
Fiscal Year
GAS UTILITY FINANCIAL PLAN
April 1 2 , 2016 32 | Page
APPENDIX B: GAS UTILITY CAPITAL IMPROVEMENT PROGRAM (CIP) DETAIL
Project #Project Name
Reappropriated /
Carried Forward from
Previous Years
Current Year
Funding
Budget
Amendments
Spending,
Current Year
Remaining in
CIP Reserve
Fund Commitments FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
ONE TIME PROJECTS
GS-10000 Gas Station 3 Rebuild - - - - - - - - - - -
GS-15001 Security at Receiving Stations 275,000 - 150,000 (1,563) 423,437 109,174 - - - - -
Subtotal, One-time Projects 275,000 - 150,000 (1,563) 423,437 109,174 - - - - -
GAS MAIN REPLACEMENT (GMR) PROGRAM
GS-09002 GMR - Project 19 - - - - - - - - - - -
GS-10001 GMR - Project 20 - - - - - - - - - - -
GS-11000 GMR - Project 21 100,000 - (100,000) - - - - - - - -
GS-12001 GMR - Project 22 3,571,560 - 3,000 (144,495) 3,430,065 - - - - - -
GS-13001 GMR - Project 23 620,650 3,010,000 (2,967,500) (42,500) 620,650 - - 3,588,150 - - -
GS-14003 GMR - Project 24 - 640,000 - - 640,000 - - - 3,100,000 - -
GS-15000 GMR - Project 25 - - - - - - - - 659,000 3,200,000 -
GS-16000 GMR - Project 26 - - - - - - - - - 678,200 3,300,000
GS-20000 GMR - Project 27 - - - - - - - - - - 700,000
GS-20001 GMR - Project 28 - - - - - - - - - - -
Subtotal, Gas Main Replacement Program 4,292,210 3,650,000 (3,064,500) (186,995) 4,690,715 - - 3,588,150 3,759,000 3,878,200 4,000,000
TOOLS AND EQUIPMENT
GS-13002 General Shop Equipment/Tools 70,106 100,000 (170,106) - - - - - - - -
GS-01019 Global Positioning System - - - - - - - - - - -
GS-03008 Polyethylene Fusion Equip.- - - - - - - - - - -
GS-14004 Gas Distribution System Model 126,365 - 19,574 - 145,939 19,574 - 640,000 - - -
Subtotal, Tools and Equipment 196,471 100,000 (150,532) - 145,939 19,574 - 640,000 - - -
GAS UTILITY FINANCIAL PLAN
April 1 2 , 2016 33 | Page
Gas Utility Capital Improvement Program (CIP) Detail (continued)
Project #Project Name
Reappropriated /
Carried Forward from
Previous Years
Current Year
Funding
Budget
Amendments
Spending,
Current Year
Remaining in
CIP Reserve
Fund Commitments FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
ONGOING PROJECTS
GS-11002 Gas System Improvements 202,373 231,913 (173,254) (77,393) 183,639 87,771 238,870 246,036 253,417 261,020 268,851
GS-03009 System Ext. - Unreimbursed 128,690 198,500 (334,679) (62,123) (69,612) - 204,455 210,590 216,908 223,415 230,117
GS-80019 Gas Meters and Regulators 304,927 355,030 (659,957) - - - 365,681 376,652 387,952 399,591 411,579
Subtotal, Ongoing Projects 635,990 785,443 (1,167,890) (139,516) 114,027 87,771 809,006 833,278 858,277 884,026 910,547
CUSTOMER CONNECTIONS (FEE FUNDED)
GS-80017 Gas System Extensions 213,712 1,228,500 (1,209,764) (660,368) (427,920) 158,819 1,265,355 1,303,315 1,342,415 1,382,688 1,424,169
Subtotal, Customer Connections 213,712 1,228,500 (1,209,764) (660,368) (427,920) 158,819 1,265,355 1,303,315 1,342,415 1,382,688 1,424,169
GRAND TOTAL 5,613,383 5,763,943 (5,442,686) (988,442) 4,946,198 375,338 2,074,361 6,364,743 5,959,692 6,144,914 6,334,716
Funding Sources
Connection Fees 1,017,000 (1,209,764) 1,047,510 1,078,935 1,111,303 1,144,642 1,178,981
Utility Rates 4,746,943 (4,232,922) 1,026,851 5,285,808 4,848,389 5,000,272 5,155,735
CIP-RELATED RESERVES DETAIL
6/30/2016
(Actual)
6/30/2017
(Unaudited)
Reappropriations 5,345,914 4,570,860
Commitments 267,469 375,338
GAS UTILITY FINANCIAL PLAN
April 1 2 , 2016 34 | Page
APPENDIX C: GAS UTILITY RESERVES MANAGEMENT PRACTICES
The following reserves management practices shall be used when developing the Gas Utility
Financial Plan:
Section 1. Definitions
a) “Financial Planning Period” – The Financial Planning Period is the range of future fiscal
years covered by the Financial Plan. For example, if the Financial Plan delivered in
conjunction with the FY 2015 budget includes projections for FY 2015 to FY 2019, FY
2015 to FY 2019 would be the Financial Planning Period.
b) “Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers
to the Utility’s Unrestricted Net Assets.
c) “Net Assets” - The Government Accounting Standards Board defines a Utility’s Net
Assets as the difference between its assets and liabilities.
d) “Unrestricted Net Assets” - The portion of the Utility’s Net Assets not invested in capital
assets (net of related debt) or restricted for debt service or other restricted purposes.
Section 2. Supply Fund Reserves
The Gas Utility’s Supply Fund Balance is reserved for the following purposes:
a) For existing contracts, as described in Section 4 (Reserve for Commitments)
b) For operating and capital budgets re-appropriated from previous years, as described in
Section 5 (Reserve for Re-appropriations)
Section 3. Distribution Fund Reserves
a) For existing contracts, as described in Section 4 (Reserve for Commitments)
b) For operating and capital budgets re-appropriated from previous years, as described in
Section 5 (Reserve for Re-appropriations)
c) For cash flow management and contingencies related to the Gas Utility’s Capital
Improvement Program (CIP), as described in Section 6 (CIP Reserve)
d) For rate stabilization, as described in Section 7 (Rate Stabilization Reserve)
e) For operating contingencies, as described in Section 8 (Operations Reserve)
f) Any funds not included in the other reserves will be considered Unassigned Reserves
and shall be returned to ratepayers or assigned a specific purpose as described in
Section 9 (Unassigned Reserves)
Section 4. Reserve for Commitments
At the end of each fiscal year the Gas Supply Fund and Gas Distribution Fund Reserve for
Commitments will be set to an amount equal to the total remaining spending authority for
all contracts in force for the Wastewater Collection Utility at that time.
Section 5. Reserve for Reappropriations
At the end of each fiscal year the Gas Supply Fund and Gas Distribution Fund Reserve for
Reappropriations will be set to an amount equal to the amount of all remaining capital and
GAS UTILITY FINANCIAL PLAN
April 1 2 , 2016 35 | Page
non-capital budgets, if any, that will be re-appropriated to the following fiscal year for each
fund in accordance with Palo Alto Municipal Code Section 2.28.090.
Section 6. CIP Reserve
The CIP Reserve is used to manage cash flow for capital projects and acts as a reserve for
capital contingencies. Staff will manage the CIP Reserve according to the following
practices:
a) The following guideline levels are set forth for the CIP Reserve. These guideline levels
are calculated for each fiscal year of the Financial Planning Period based on the levels of
CIP expense budgeted for that year.
Minimum Level 12 months of budgeted CIP expense
Maximum Level 24 months of budgeted CIP expense
b) Changes in Reserves: Staff is authorized to transfer funds between the CIP Reserve and
the Reserve for Commitments when funds are added to or removed from the Reserve
for Commitments as a result of a change in contractual commitments related to CIP
projects. Any other additions to or withdrawals from the CIP reserve require Council
action.
c) Minimum Level:
i) Funds held in the Reserve for Commitments may be counted as part of the CIP
Reserve for the purpose of determining compliance with the CIP Reserve minimum
guideline level.
ii) If, at the end of any fiscal year, the minimum guideline is not met, staff shall present
a plan to the City Council to replenish the reserve. The plan shall be delivered by the
end of the following fiscal year, and shall, at a minimum, result in the reserve
reaching its minimum level by the end of the next fiscal year. For example, if the CIP
Reserve is below its minimum level at the end of FY 2017, staff must present a plan
by June 30, 2018 to return the reserve to its minimum level by June 30, 2019. In
addition, staff may present, and the Council may adopt, an alternative plan that
takes longer than one year to replenish the reserve, or that does so in a shorter
period of time.
d) Maximum Level: If, at any time, the CIP Reserve reaches its maximum level, no funds
may be added to this reserve. If there are funds in this reserve in excess of the
maximum level staff must propose to transfer these funds to another reserve or return
them to ratepayers in the next Financial Plan. Staff may also seek Council approval to
hold funds in this reserve in excess of the maximum level, if they are held for a specific
future purpose related to the CIP.
Section 7. Rate Stabilization Reserve
Funds may be added to the Rate Stabilization Reserve by action of the City Council and held
to manage the trajectory of future year rate increases. Withdrawal of funds from the Rate
Stabilization Reserve requires Council action. If there are funds in the Rate Stabilization
Reserve at the end of any fiscal year, any subsequent Gas Utility Financial Plan must result
in the withdrawal of all funds from this Reserve by the end of the Financial Planning Period.
GAS UTILITY FINANCIAL PLAN
April 1 2 , 2016 36 | Page
Section 8. Operations Reserve
The Operations Reserve is used to manage normal variations in costs and as a reserve for
contingencies. Any portion of the Gas Utility’s Fund Balance not included in the reserves
described in Section 4-Section 7 above will be included in the Operations Reserve unless this
reserve has reached its maximum level as set forth in Section 8 d) below. Staff will manage
the Operations Reserve according to the following practices:
a) The following guideline levels are set forth for the Operations Reserve. These guideline
levels are calculated for each fiscal year of the Financial Planning Period based on the
levels of Operations and Maintenance (O&M) and commodity expense forecasted for
that year in the Financial Plan.
Minimum Level 60 days of O&M and commodity expense
Target Level 90 days of O&M and commodity expense
Maximum Level 120 days of O&M and commodity expense
b) Minimum Level: If, at the end of any fiscal year, the funds remaining in the Operations
Reserve are lower than the minimum level set forth above, staff shall present a plan to
the City Council to replenish the reserve. The plan shall be delivered within six months
of the end of the fiscal year, and shall, at a minimum, result in the reserve reaching its
minimum level by the end of the following fiscal year. For example, if the Operations
Reserve is below its minimum level at the end of FY 2014, staff must present a plan by
December 31, 2014 to return the reserve to its minimum level by June 30, 2015. In
addition, staff may present, and the Council may adopt, an alternative plan that takes
longer than one year to replenish the reserve.
c) Target Level: If, at the end of any fiscal year, the Operations Reserve is higher or lower
than the target level, any Financial Plan created for the Gas Utility shall be designed to
return the Operations Reserve to its target level by the end of the forecast period.
d) Maximum Level: If, at any time, the Operations Reserve reaches its maximum level, no
funds may be added to this reserve. Any further increase in the Gas Utility’s Fund
Balance shall be automatically included in the Unassigned Reserve described in Section
9, below.
Section 9. Unassigned Reserve
If the Operations Reserve reaches its maximum level, any further additions to the Gas
Utility’s Fund Balance will be held in the Unassigned Reserve. If there are any funds in the
Unassigned Reserve at the end of any fiscal year, the next Financial Plan presented to the
City Council must include a plan to assign them to a specific purpose or return them to the
Gas Utility ratepayers by the end of the first fiscal year of the next Financial Planning Period.
For example, if there were funds in the Unassigned Reserves at the end of FY 2015, and the
next Financial Planning Period is FY 2016 through FY 2020, the Financial Plan shall include a
plan to return or assign any funds in the Unassigned Reserve by the end of FY 2016. Staff
may present an alternative plan that retains these funds or returns them over a longer
period of time.
GAS UTILITY FINANCIAL PLAN
April 1 2 , 2016 37 | Page
Section 10. Intra-Utility Transfers Between Supply and Distribution Funds
The Gas Utility records costs in two separate funds: the Gas Supply Fund and the Gas
Distribution Fund. At the end of each fiscal year staff is authorized to transfer an amount
equal to the difference between Gas Supply Fund costs and Gas Supply Fund Revenues from
the Gas Distribution Fund Operations Reserve to the Gas Supply Fund, or vice versa. Such
transfers shall be included in the ordinance closing the budget for the fiscal year.
GAS UTILITY FINANCIAL PLAN
April 1 2 , 2016 38 | Page
APPENDIX D: DESCRIPTION OF GAS UTILITY COST CATEGORIES
This appendix describes the activities associated with the various cost categories referred to in
this Financial Plan.
Customer Service: This category includes the Gas Utility’s share of the call center, meter
reading, collections, and billing support functions. Billing support encompasses staff time
associated with bill investigations and quality control on certain aspects of the billing process. It
does not include maintenance of the billing system itself, which is included in Administration.
This category also includes CPAU’s key account representatives, who work with large
commercial customers who have more complex requirements for their gas services.
Resource Management: This category includes gas procurement, contract management, rate
setting, and tracking of legislation and regulation related to the gas industry.
Operations and Maintenance: This category includes the costs of a variety of distribution
system maintenance activities, including:
• surveying the gas system (50% of the system each year) and repairing any leaks found;
• investigating reports of damaged mains or services and perform emergency repairs;
• building and replacing gas services for new or redeveloped buildings; and
• testing and replacing meters to ensure accurate sales metering.
This category also includes a variety of functions the utility shares with other City utilities,
including:
• the Field Services team (which does field research of various customer service issues);
• the Cathodic Protection team (which monitors and maintains the systems that prevent
corrosion in metal pipes and reservoirs); and
• the General Services team (which manages and maintains equipment, paves and
restores streets after gas, water, or sewer main replacements, and provides welding
services, including certified gas line welding services)
Administration: Accounting, purchasing, legal, and other administrative functions provided by
the City’s General Fund staff, as well as shared communications services and Utilities
Department administrative overhead and billing system maintenance costs.
Demand Side Management: Includes the cost of administering gas efficiency programs and the
direct cost of rebates paid.
Engineering (Operating): The Gas Utility’s engineers focus primarily on the CIP, but a small
portion of their time is spent assisting with distribution system maintenance.
APPENDIX E: GAS UTILITY COMMUNICATIONS SAMPLES
Attachment H
* NOT YET APPROVED *
170221 jb 6053915
Resolution No. ____
Resolution of the Council of the City of Palo Alto Approving the
FY 2018 Wastewater Collection Utility Financial Plan
R E C I T A L S
A.Each year the City of Palo Alto (“City”) assesses the financial position of its utilities
with the goal of ensuring adequate revenue to fund operations. This includes making long-term
projections of market conditions, the physical condition of the system, and other factors that
could affect utility costs, and setting rates adequate to recover these costs. It does this with the
goal of providing safe, reliable, and sustainable utility services at competitive rates. The City
adopts Financial Plans to summarize these projections.
B.The City uses reserves to protect against contingencies and to manage other aspects
of its operations, and regularly assesses the adequacy of these reserves and the management
practices governing their operation. The status of utility reserves and their management
practices are included in Reserves Management Practices attached to and made a part of the
Financial Plans.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby approves the FY 2018 Wastewater Collection Utility
Financial Plan.
SECTION 2. The Council finds that the adoption of this resolution does not meet the
definition of a project requiring California Environmental Quality Act (CEQA) review, under
/ /
/ /
/ /
/ /
/ /
/ /
* NOT YET APPROVED *
170221 jb 6053915
California Public Resources Code 21065 and CEQA Guidelines Section 15378(b)(5), because it is
an administrative governmental activity which will not cause a direct or indirect physical change
in the environment.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
FY 2018 WASTEWATER
COLLECTION UTILITY
FINANCIAL PLAN
FY 2018 TO FY 2027
ATTACHMENT I
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
February 2016 2 | Page
FY 2018 WASTEWATER COLLECTION
UTILITY FINANCIAL PLAN
FY 2018 TO FY 2027
TABLE OF CONTENTS
Section 1: Definitions and Abbreviations................................................................................ 4
Section 2: Executive Summary and Recommendations ........................................................... 4
Section 2A: Overview of Financial Position .................................................................................. 4
Section 2B: Summary of Proposed Actions .................................................................................. 5
Section 3: Detail of FY 2018 Rate and Reserves Proposals ....................................................... 5
Section 3A: Rate Design ............................................................................................................... 5
Section 3B: Current and Proposed Rates ..................................................................................... 6
Section 3D: Proposed Reserve Transfers ..................................................................................... 6
Section 4: Utility Overview .................................................................................................... 7
Section 4A: Wastewater Utility History ....................................................................................... 7
Section 4B: customer base ........................................................................................................... 8
Section 4C: Collection System ...................................................................................................... 8
Section 4D: Cost Structure and Revenue Sources ........................................................................ 9
Section 4E: Reserves Structure ..................................................................................................... 9
Section 4F: Competitiveness ...................................................................................................... 10
Section 5: Utility Financial Projections ................................................................................. 11
Section 5A: FY 2012 to FY 2016 Cost and Revenue Trends ........................................................ 11
Section 5B: FY 2016 Results ....................................................................................................... 12
Section 5C: FY 2017 Projections ................................................................................................. 13
Section 5D: FY 2018 – FY 2027 Projections ................................................................................ 13
Section 5E: Risk Assessment and Reserves Adequacy ............................................................... 14
Section 5F: Alternate Scenarios ................................................................................................. 16
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
February 2016 3 | Page
Section 5G: Long-Term Outlook ................................................................................................. 16
Section 6: Details and Assumptions ..................................................................................... 16
Section 6A: Wastewater Treatment Costs ................................................................................. 16
Section 6B: Operations .............................................................................................................. 17
Section 6C: Capital Improvement Program (CIP) ....................................................................... 17
Section 6D: Debt Service ............................................................................................................ 19
Section 6E: Other Revenues ....................................................................................................... 20
Section 7: Communications Plan .......................................................................................... 20
Appendices ......................................................................................................................... 22
Appendix A: Wastewater Collection Financial Forecast Detail .................................................. 23
Appendix B: Wastewater Collection Utility Capital Improvement Program (CIP) Detail .......... 24
Appendix C: Wastewater Collection Utility Reserves Management Practices .......................... 25
Appendix D: Sample of Wastewater Collection Outreach Materials......................................... 28
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
February 2016 4 | Page
SECTION 1: DEFINITIONS AND ABBREVIATIONS
CCF The standard unit of measurement for water delivered to water customers, equal to
one hundred cubic feet, or roughly 748 gallons. When water usage is used to assess
wastewater charges for commercial customers, it is measured in CCF.
CIP Capital Improvement Program
CPAU City of Palo Alto Utilities Department
FOG Fats, oils, and grease. When flushed into the sewer system, these materials
accumulate in parts of the sewer system and create blockages.
O&M Operations and Maintenance
RWQCP Regional Water Quality Control Plant, the wastewater treatment plant owned and
operated by the City of Palo Alto that serves Palo Alto and several surrounding
communities.
UAC Utilities Advisory Commission
SECTION 2: EXECUTIVE SUMMARY AND RECOMMENDATIONS
This document presents a Financial Plan for the City of Palo Alto’s Wastewater Collection Utility
for the next ten years. The Financial Plan provides revenues to cover the costs of operating the
utility safely over that time while adequately investing for the future. It also addresses the
financial risks facing the utility over the short term and long term, and includes measures to
mitigate and manage those risks.
SECTION 2A: OVERVIEW OF FINANCIAL POSITION
Overall costs in the Wastewater Collection Utility are expected to rise by about 6% per year
from fiscal year (FY) 2017 to FY 2027. Excluding FY 2018 (which, unlike a normal year, does not
include a sewer main replacement project), wastewater treatment and CIP costs are projected
to rise by five to six percent annually through the projection period, with other costs rising at
roughly three percent per year. The costs for the Wastewater Collection Utility are shown in
Table 1 below.
Table 1: Expenses for FY 2016 to FY 2027
Expenses
($000)
FY
2016
(act.)
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
Treatment
Costs 8,770 9,855 9,932 10,298 11,088 11,885 12,293 13,001 14,056 14,928 15,407 15,901
Operations 5,429 6,142 6,342 6,142 6,349 6,561 6,779 7,250 7,354 7,594 7,842 8,099
Capital
Projects 4,985 971 1,338 5,218 5,033 5,207 5,336 5,495 5,658 5,827 6,000 6,178
TOTAL 19,184 16,968 17,613 21,659 22,470 23,652 24,408 25,746 27,069 28,348 29,249 30,178
The short term reduction in CIP expenses will result in higher revenues than expenses, and the
Rate Stabilization Reserve will be drawn down over a longer time frame than projected in last
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
February 2016 5 | Page
year’s financial plan. Going forward, to ensure that revenues cover rising costs and reserves
remain healthy, the financial plan includes the rate trajectory shown in Table 2. The table also
shows rate projections from last year’s Financial Plan. Last year’s plan projected earlier, more
aggressive rate increases. However, the delay of the planned FY 2017 and FY 2018 sewer main
replacement projects resulted in an increase in reserves, which enabled the more gradual
increases projected in the current plan.
Table 2: Projected Wastewater Collection Rate Trajectory for FY 2018 to FY 2026
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
Current Plan 0% 7% 7% 7% 7% 7% 5% 5% 4% 3%
FY 2017 Plan 10% 9% 7% 6% 4% 4% 4% 4% 4% N/A
The Wastewater Collection Utility has a small balance in its Rate Stabilization Reserve. This
reserve is used to phase in rate increases over several years. The FY 2017 Financial Plan
proposed a $342,000 transfer from the Rate Stabilization Reserve, but in the proposed FY 2018
Financial Plan this transfer is moved to later years. Due to the delays in main replacement
noted above, the Operations reserve is above its target level, and will rise again in FY 2018
before beginning to decline. This Financial Plan projects that the Rate Stabilization Reserve will
not be needed until FY 2020.
Table 3: Transfers To/(From) Reserves for FY 2017 to FY 2027 ($000)
Reserve FY 2017 FY 2018 FY 2019 to FY 2027
Rate Stabilization - - (342)
Operations - - 342
SECTION 2B: SUMMARY OF PROPOSED ACTIONS
Staff proposes no rate changes or transfers for the Wastewater Collection Utility in FY 2017 and
FY 2018.
SECTION 3: DETAIL OF FY 2018 RATE AND RESERVES PROPOSALS
SECTION 3A: RATE DESIGN
The Wastewater Collection Utility’s rates are evaluated and implemented in compliance with
the cost of service requirements and procedural rules set forth in the California Constitution
(Proposition 218). Current rates were structured based on staff’s annual assessment of the
wastewater utility’s financial position, as well as the methodology from the January 2011
Wastewater Collection Utility Cost of Service & Rate Study completed by Utility Financial
Solutions (Staff Report 1399). Staff plans to review and update this cost of service study in FY
2018 or FY 2019, unless any major changes occur to the utility’s operations or customer base
that would necessitate an earlier study. Before conducting any new cost of service study, staff
will review current rates and the scope of the study with the Utilities Advisory Commission
(UAC) and Council to determine the City’s policy priorities.
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
February 2016 6 | Page
SECTION 3B: CURRENT AND PROPOSED RATES
The current rates were adopted July 1, 2016, when the City increased sewer rates by 9%.
CPAU has three sewer rate schedules: one for residents (S-1), one for commercial customers
(S-2), and a special schedule for restaurants (S-6), which discharge higher than average amounts
of grease and oil and, therefore, have a greater impact on the sewer system. Residential
customers are billed a monthly service charge, while commercial customers are billed based on
their dry month water usage (previous January through March). This closely approximates non-
irrigation water consumption, which represents actual sewer use. Restaurant customers are
billed monthly based on water usage. CPAU also maintains a rate schedule for industrial
dischargers (S-7), but there are currently no customers required to be on this rate schedule.
CPAU us not proposing any rate changes for FY 2018 at this time. Table 4, below, summarizes
the current rates for all customer classes. Comparisons with neighboring communities are
discussed in Section 4F: Competitiveness.
Table 4: Current Sewer Rates
Current
(as of 7/1/2016)
Monthly Service and Minimum Charges ($/month)
S-1 (Residential) Service
charge
$34.83
S-2 (Commercial),
S-6 (Restaurant)
Minimum $34.83
Quantity Rates: based on winter water usage (average for January
- March bill period)
S-2 (Commercial) $/CCF 6.71
S-6 (Restaurant) $/CCF 10.38
S-7 (Industrial) $/CCF 3.08
SECTION 3C: PROPOSED RESERVE TRANSFERS
In the FY 2017 Financial Plan, staff recommended a $1.95 million transfer from the Rate
Stabilization Reserve in FY 2016. This left a small amount, $342,000, which was originally to be
transferred in FY 2017 and bring the Rate Stabilization Reserve balance to zero.
With main replacement projects being deferred in FY 2017 and FY 2018, the Operations reserve
will not require a transfer from the Rate Stabilization Reserve. It is now anticipated that the
remaining $342,000 will not need to be transferred until FY 2020.
These transfers are included in the financial projections in this Financial Plan, and will enable
CPAU to maintain adequate Operations Reserve levels while moderating the pace of increase in
Wastewater Collection rates. The impact of these transfers on reserves levels can be seen in
Appendix A: Wastewater Collection Financial Forecast Detail.
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
February 2016 7 | Page
SECTION 4: UTILITY OVERVIEW
This section provides an overview of the utility and its operations. It is intended as general
background information and to help readers better understand the forecasts in later sections.
SECTION 4A: WASTEWATER UTILITY HISTORY
The Wastewater Utility commenced operation in 1899 to serve Palo Alto and Stanford. In its
first three decades the system grew to 60 miles of sewers. Raw sewage was discharged into
Mayfield Slough at the edge of the Bay. In the 1930s, at the behest of the State Department of
Health, Palo Alto built the South Bay’s first wastewater treatment plant. At that time the sewer
system served 20,500 Stanford and Palo Alto residents and a cannery. The plant was upgraded
twice in the 1940s and 1950s to increase capacity.1 At the same time, the postwar population
and industrial boom in the 1950s required rapid expansion of the sewer system. In the first half
of the 1960s Palo Alto’s area doubled, as did wastewater flows, overwhelming the capacity of
several of the utility’s “trunk lines,” which are the largest diameter main sewer lines carrying
wastewater to the treatment plant. This prompted the City, in 1965, to perform the first of its
sewer master plans to identify needed capacity improvements. At that point the Wastewater
Utility’s system comprised more than 150 miles of sewer mains.2
In 1968 the City signed agreements with the Cities of Mountain View and Los Altos to build a
new regional treatment plant, the RWQCP, which is still in operation today. Since 1940 the City
had been providing treatment services to the East Palo Alto Sanitary District through an existing
agreement, and was also serving Stanford University by transporting wastewater across the
City’s sewer system to the treatment plant. Both of these organizations became partners in the
RWQCP as well. At the same time the Town of Los Altos Hills became the sixth partner as it
signed an agreement with the City to connect the Town’s sewer system to the City’s sewer
system to carry wastewater to the new RWQCP. The current agreements for the RWQCP
extend through 2035.3
In the 1980s the City directed increased attention to the condition of its sewer system,
performing a series of studies of groundwater inflow and infiltration into the system. The
studies found high rates of infiltration, estimating that as much as 40% of the water going to
the RWQCP from Palo Alto’s system was groundwater and stormwater rather than
wastewater.4 In some parts of Palo Alto the land surface had subsided due to groundwater
pumping by the water utility, and though that practice had ceased many years earlier as the
water utility switched to the Hetch Hetchy Regional Water System, parts of the city had already
subsided two to five feet. This subsidence had damaged several parts of the sewer collection
system, leading to reduced slopes for sewer mains that caused reductions in capacity. In
1 Long Range Facilities Plan for the Regional Water Quality Control Plant, August 2012, Carollo Engineers, pp 2-1
through 2-2 2 Wastewater Collection and Storm Drainage, 1965, Brown and Caldwell Consulting Engineers, pp 4, 6-7, 143 3 Long Range Facilities Plan for the Regional Water Quality Control Plant, August 2012, Carollo Engineers, pg 2-2 4 Wastewater Collection System Master Plan – Capacity Assessment, January 2004, MWH Americas, Inc., pg ES-2
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response to these studies the City commenced an accelerated sewer system rehabilitation
program.5 At that point the sewer system comprised over 190 miles of mains.6
A Master Plan study in 1988 recommended a variety of capacity expansions, and in the 1990s
the City completed about half of them. However, a 2004 Master Plan update found that the
accelerated sewer rehabilitation plan started in the early 1990s had substantially reduced
infiltration, easing the capacity problems that had led the to the recommended capacity
increases in the 1988 study. Several of the outstanding projects were canceled and replaced
with a different set of projects.7 At the same time the City updated its hydraulic model and
developed greater capacity to do system planning in house.
SECTION 4B: CUSTOMER BASE
The City of Palo Alto’s Wastewater Collection Utility provides sewer service to the residents and
businesses of Palo Alto. It is distinct from the Wastewater Treatment Utility, which provides
treatment services for surrounding communities in addition to Palo Alto. Nearly 23,300
customers are connected to the sewer system, approximately 21,450 (92%) of which are
residential and 1,850 (8%) of which are non-residential. Residential customers pay a flat fee for
service. Non-residential customers are billed for sewer service based on their metered winter
water usage. There is little variability in revenues for this utility.
SECTION 4C: COLLECTION SYSTEM
The Wastewater Collection Utility delivers all the wastewater it collects to the Regional Water
Quality Control Plant (RWQCP) operated by the City of Palo Alto under a partnership agreement
with several surrounding communities. Palo Alto is responsible for 35% to 40% of the
wastewater sent to the RWQCP. The cost of running the RWQCP is contained in the
Wastewater Treatment Utility and is not described in detail in this Financial Plan, but since
these costs are a major driver of CPAU’s sewer rates, there is some discussion of future trends
in treatment costs in Section 6A: Wastewater Treatment Costs. Treatment costs make up
nearly half of the Wastewater Collection Utility’s expenses as shown in Table 1 above.
To collect wastewater from its customers and deliver it to the RWQCP, CPAU owns roughly
18,100 sewer laterals (which collect wastewater from customers’ plumbing systems) and 217
miles of sewer mains (which transport the waste to the treatment plant). These laterals and
mains, along with the associated manholes and cleanouts, represent the vast majority of
infrastructure used to collect wastewater in Palo Alto. CPAU conducts a sewer rehabilitation
and replacement program to replace mains over time as they deteriorate or to increase
capacity. For more discussion of this program, see Section 6C: Capital Improvement Program
(CIP). CIP expense accounts for roughly a quarter of the utility’s expenditures.
In addition to its CIP, CPAU performs various maintenance activities on the sewer system.
These include inspecting and repairing sewer laterals, responding to sewer overflows, regularly
5 CMR 183:90, Infrastructure Review and Update, March 1, 1990 6 Master Plan of the Wastewater Collection System, December 1988, Camp Dresser & McKee, Inc., pg 1-2 7 Wastewater Collection System Master Plan – Capacity Assessment, January 2004, MWH Americas, Inc., pg ES-3
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cleaning sections of the system heavily impacted by fats, oils, and grease (FOG), and building
and replacing sewer laterals for new or redeveloped buildings. The utility also shares the costs
of other operational activities (such as customer service, billing, equipment maintenance, and
street restoration) with the City’s other utilities. These maintenance and operations expenses,
as well as associated administration, debt service, rent, and other costs, make up another
quarter of the utility’s expenses.
SECTION 4D: COST STRUCTURE AND REVENUE SOURCES
In FY 2016, treatment costs represented nearly half of the Wastewater Collection Utility’s costs
(47%), followed by Capital (27%) and Operations costs (26%). These expenditures are shown in
Figure 1. The utility’s revenue in FY 2016, shown in Figure 2, came primarily from sewer charges
(94%), with the remainder coming mainly from capacity and connection fees and other sources
(6%).
Figure 1: Cost Structure (FY 2016) Figure 2: Revenue Structure (FY 2016)
SECTION 4E: RESERVES STRUCTURE
CPAU maintains six reserves for its Wastewater Collection Utility to manage various types of
contingencies. These are summarized below, but see Appendix C: Wastewater Collection Utility
Reserves Management Practices for more detailed definitions and guidelines for reserve
management:
• Reserve for Commitments: A reserve equal to the utility’s outstanding contract
liabilities for the current fiscal year. Most City funds, including the General Fund, have a
Commitments Reserve.
• Reserve for Reappropriations: A reserve for funds dedicated to projects reappropriated
by the City Council, nearly all of which are capital projects. Most City funds, including
the General Fund, have a Reappropriations Reserve.
• Capital Improvement Program (CIP) Reserve: The CIP reserve can be used to
accumulate funds for future expenditure on CIP projects and is anticipated to be empty
unless a major one-time CIP expenditure is expected in future years. It also acts as a
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contingency reserve for the CIP. This type of reserve is used in other utility funds
(Electric, Gas, and Water) as well.
• Rate Stabilization Reserve: This reserve is intended to be empty unless one or more
large rate increases are anticipated in the forecast period. In that case, funds can be
accumulated to spread the impact of those future rate increases across multiple years.
This type of reserve is used in other utility funds (Electric, Gas, and Water) as well.
• Operations Reserve: This is the primary contingency reserve for the Wastewater
Collection Utility, and is used to manage yearly variances from budget for operational
costs. This type of reserve is used in other utility funds (Electric, Gas, and Water) as well.
• Unassigned Reserve: This reserve is for any funds not assigned to the other reserves
and is normally empty.
SECTION 4F: COMPETITIVENESS
Table 6 shows the monthly sewer bills for residential customers compared to what they would
be in surrounding communities. The annual sewer bill for a Palo Alto customer is $418 under
current rates, 31% lower than the average neighboring community. Palo Alto has the fourth
lowest bill of the group.
Table 5: Residential Monthly Sewer Bill Comparison
Palo Alto
Neighboring Communities Neighboring
Community
Average
Menlo
Park
Redwood
City
Mountain
View Los Altos
Santa
Clara Hayward
34.83 85.91 75.11 34.30 33.93 41.65 29.80 50.12
Based on rates as of February 2017
Table 7 compares the sewer bills for two classes of commercial customers to what they would
be under surrounding communities’ rate schedules. Note that other communities often have
specific rates for industrial customers that discharge high intensity wastewater, such as food
processors or chemical or electronics manufacturers, but Palo Alto does not currently have any
customers that require these special rates. Palo Alto is less competitive with surrounding cities
with regards to commercial sewer rates, but is not the most expensive jurisdiction in all cases.
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Table 6: Commercial Monthly Sewer Bill Comparison
Palo Alto
Neighboring Communities Neighboring
Community
Average
Menlo
Park
Redwood
City
Mountain
View Los Altos
Santa
Clara Hayward
General
Commercial $ 94.00 $ 33.14 $ 75.11 $ 62.86 $ 50.76 $ 65.94 $ 62.02 $ 74.97
Restaurant 581.10 664.72 781.08 490.56 137.70 590.24 463.12 521.24
Based on rates as of February 2017
SECTION 5: UTILITY FINANCIAL PROJECTIONS
SECTION 5A: FY 2012 TO FY 2016 COST AND REVENUE TRENDS
Figure 3 shows the Wastewater Collection Utility’s actual expenses and revenues for the past
five years and projections through FY 2027. Operations costs were low in FY 2012, but in
general expenses have grown with inflation at around 2% per year. Capital Investment grew on
average by around 3%, with FY 2014 and FY 2015 seeing a reduction in investment mainly due
to delayed main replacement projects. Treatment costs stayed relatively flat during this time
frame.
Since the revenue for this utility is very stable, revenue changes closely follow rate changes. The
other large revenue item of note is the continued connection and capacity fees from new
construction. These fees have grown dramatically since FY 2010, and it is uncertain when this
trend may dampen.
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Figure 3: Wastewater Collection Utility Expenses, Revenues and Rate Changes
Actual Costs through FY 2016 and Projections through FY 2027
SECTION 5B: FY 2016 RESULTS
Forecasted revenues for FY 2016 were lower than projected ($16.6 million actual vs. $18 million
projected), but expenses related to Administration and Customer Service activities came in well
below expected budget as well. Total FY 2016 expenses were $18.5 million compared to
projections of $19.9 million in the FY 2017 Financial Plan. Table 8 summarizes the variances
from forecast.
Table 7: FY 2016, Actual Results vs. Financial Plan Forecast
Net Cost/
(Benefit)
Type of
change
Admin and customer service costs lower than projected (806,000) Cost savings
Sales revenues lower than forecast 657,000 Revenue decrease
Connection, capacity fees and other revenues were
lower than forecasted
119,000 Revenue decrease
Operations, capital and other cost increases 131,000 Cost increase
Net Cost / (Benefit) of Variances ($101,000)
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SECTION 5C: FY 2017 PROJECTIONS
The most notable change from the FY 2017 budget identified at this time is the deferral of
Wastewater Collection System Rehabilitation Project 28. Originally budgeted at $3.5 million,
this project is now anticipated to start in FY 2019. Also deferred to FY 2019 will be the design
phase of Project 29, budgeted at $328,000. Capital Improvement issues are further discussed in
Section 6c below.
SECTION 5D: FY 2018 – FY 2027 PROJECTIONS
Staff has prepared a forecast of costs and revenues through FY 2027. As shown in Figure 3
above (and, in more detail, in Appendix A: Wastewater Collection Financial Forecast Detail), the
Wastewater Collection Utility’s total costs are projected to increase by roughly 6% per year on
average for FY 2017 through FY 2027. The majority of this increase is due to projected
treatment cost increases. The treatment plant itself is facing the need for major upgrades in
coming years, both due to age of equipment and constantly changing environmental
regulations. While the costs of the plant are shared among member agencies, Palo Alto is still
expected to see average cost increases of 5% per year over the forecast horizon.
Revenues are shown by the red line in Figure 3, and what is notable here is that costs have
been generally higher than revenue. Some relief was experienced during times of lower CIP
expenditures, and this is projected to be seen in FY 2017 and 2018. The trend of under-
collection picks up in the future, however, resulting in a fairly rapid reduction of reserves. A
path of 7% annual rate increases in the near term, decreasing to more inflationary increases in
outer years, is required to keep reserves from dropping too low. Figure 4 below shows the
relative drop in reserves, only showing slowing replenishment after the projected increase in FY
2021.
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Figure 4: Wastewater Collection Reserves Projections
SECTION 5E: RISK ASSESSMENT AND RESERVES ADEQUACY
The Wastewater Collection Utility currently has one contingency reserve, the Operations
Reserve, and this Financial Plan maintains reserves within the approved guideline levels
throughout the forecast period, as shown in Figure 5 below. Reserve levels also exceed the
short term risk assessment for the utility.
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Figure 5: Operations Reserve Adequacy
Staff performs an annual assessment of risks for the Wastewater Collection Utility. For this
evaluation, staff estimates the revenue shortfall due to:
1. the maximum observed budget-to-actual variance in one year during the past five years;
2. an increase of 10% in system improvement CIP expenditures for the year; and
3. an increase of 10% in treatment costs.
Table 9 summarizes the risk assessment calculation for the Wastewater Collection Utility
through FY 2022. The Operations Reserve is projected to be adequate to manage these levels
of risk over the entire forecast period.
Table 8: Wastewater Collection Risk Assessment
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Total Revenue ($000) 17,146 18,296 19,577 20,947 22,413
Max. Historical Budget-to-Actual variance 3% 3% 3% 3% 3%
Budget-to-Actual Risk ($000) 514 549 587 628 672
System Rehabilitation CIP Budget ($000) 933 4,800 4,602 4,763 4,880
CIP Contingency @10% ($000) 93 480 460 476 488
Treatment Budget ($000) 9,932 10,298 11,088 11,885 12,293
Treatment Cost Contingency @10% ($000) 993 1,030 1,109 1,188 1,229
Total risk assessment value ($000) 1,600 2,059 2,156 2,292 2,389
Projected Operations Reserve Level ($000) 6,688 5,410 5,069 4,529 4,732
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SECTION 5F: ALTERNATE SCENARIOS
At its February 2017 meeting, staff presented an earlier scenario with a 2% rate increase in FY
2018 followed by 6% rate increases in outer years. However, with the Operations reserve
projected to be above the target level and well within the guideline levels adopted by Council,
staff no longer sees the need for an increase at this time.
SECTION 5G: LONG-TERM OUTLOOK
In the longer term (5 to 35 years) the primary factor that could lead to increased costs for the
Wastewater Collection Utility are major upgrades at the RWQCP, a share of which will be
allocated to the utility as part of treatment costs. These upgrades includes replacement or
rehabilitation of the parts of the facility that pump raw sewage to the main treatment works
(the headworks), separate out primary sludge (the primary settling tank), process sludge (the
bio-solids facility), and treat wastewater (the fixed film reactors). Upgrades to the laboratories
and operational buildings are planned as well. In addition, the 72-inch regional trunk sewer line
flowing into the plant needs to be evaluated and rehabilitated.
SECTION 6: DETAILS AND ASSUMPTIONS
SECTION 6A: WASTEWATER TREATMENT COSTS
Treatment expenses represent the Wastewater Collection Utility’s share of the costs of
operating the RWQCP. Per the partnership agreements between Palo Alto and its partner
agencies, these charges are assessed based on a formula that takes into account the total
amount of wastewater delivered, the amount of organic material in it, its ammonia content,
and the total suspended solids it is carrying. The Wastewater Collection Utility’s assessed share
of the RWQCP’s revenue requirement fluctuates in the 38% to 40% range. Mountain View is
the other large agency served by the RWQCP (39% of the revenue requirement for FY 2014)
with the smaller agencies (Stanford, Los Altos, East Palo Alto, and Los Altos Hills) making up the
remainder of the flow to the treatment plant.
Based on detailed project cost projections provided by RWQCP staff, treatment costs are likely
to continue to increase by roughly 5% per year through at least 2030. Wastewater Treatment
Fund costs are increasing due to rising salary and benefit costs as well as the attendant
allocated charges for centralized city services needed by the Fund. Additional expenses include
increased water and air permitting fees from the Regional Water Quality Control Board and the
Bay Area Air Quality Management District. Commodity and utility rates to operate the facility
are also increasing with the largest increases in FY2018 for electrical, water, refuse, and storm
rates. Chemical commodity expenses, needed to adjust water quality and meet permit
requirements, are also increasing modestly per latest chemical market conditions and
procurement contract conditions.
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Capital projects, parts, and materials are increasing about 3% to keep up with ongoing
replacement of aging equipment. Larger increase to capital expenses are expected to begin in
FY2020 in the form of new debt service for major projects to implement the Plant’s capital
program. The Plant’s major project in FY2018 will be making progress constructing the Sludge
Dewatering and Truck Loadout Facility, which will allow (in about 2019) the retirement of the
Plant’s two sewage sludge incinerators that have been in operation since 1972.
SECTION 6B: OPERATIONS
Operations costs include the Customer Service, Distribution Operations, Engineering, and
Allocated Charges categories in Appendix A: Wastewater Collection Financial Forecast Detail.
Debt service, rent, and transfers are also included in this category. Customer Service costs are
primarily related to the call center and collections on delinquent accounts. The Distribution
Operations category includes preventative and corrective maintenance on sewer mains and
laterals, investigation of sewer overflows, regular cleaning of heavily impacted sections of the
sewer system, and services shared with other utilities (such as street restoration and
equipment maintenance). Allocated Charges include the costs of accounting, purchasing, legal,
and other administrative functions provided by the City’s General Fund staff, as well as shared
communications services and Utilities Department administrative overhead and billing system
maintenance costs.
Operations costs are projected to increase by 3% per year, on average, over the forecast period.
Underlying these projections are salary and benefit, consumer price index, and other cost
projections used in the City’s long-range financial forecast.
SECTION 6C: CAPITAL IMPROVEMENT PROGRAM (CIP)
The Wastewater Collection Utility’s CIP consists of the following programs:
• The Sewer System Replacement/Rehabilitation Program, under which the Wastewater
Collection Utility replaces aging sewer mains.
• Customer Connections, which covers the cost when the Wastewater Collection Utility
installs new services or upgrades existing services at a customer’s request in response
to development or redevelopment. CPAU charges a fee to these customers to cover
the cost of these projects.
• Ongoing Projects, which covers the cost of replacing degraded manholes and sewer
laterals, as well as the cost of capitalized tools and equipment.
The Sewer System Replacement and Rehabilitation Program funds the replacement of
deteriorating sewer mains and projects to increase capacity in various parts of the sewer
system. The sewer system consists of over 217 miles of mains, and CPAU uses a variety of tools
to establish which sections are in need of replacement. Maintenance statistics (such as records
of the location and number of sewer overflows on the system) and videotape of sewer mains
during regular cleaning can reveal areas with large amounts of deteriorating pipe. CPAU uses a
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February 2016 18 | Page
scoring system to prioritize which mains to replace first, and coordinates with the Public Works
street maintenance program to avoid cutting into newly repaved streets. A major goal of the
program is to minimize groundwater and rainwater infiltration. As mains deteriorate they
begin to allow groundwater and rainwater to infiltrate the system. Some level of infiltration is
expected on any sewer system, but if there is too much, the combined flow of wastewater and
groundwater/rainwater can overwhelm the capacity of various parts of the sewer system.
Reducing infiltration can reduce the need to expand the system to accommodate increased
flow. To achieve this goal, deteriorating mains are either repaired with a plastic lining or
replaced. CPAU replaces or repairs approximately 25,000 feet of main per year, or 2.5% of the
system.
The CIP program also funds sewer capacity improvements. CPAU uses a hydraulic model, data
from various flow meters on the system, and land use data to identify sections of the system
that are being overloaded. When sewer mains are operating at or above their capacity on a
regular basis it will increase the likelihood of sewer overflows. CPAU also does occasional
comprehensive master planning studies to identify necessary capacity improvements. The most
recent study, in 2004, identified eight projects, three of which have been completed. The
remaining four projects are low priority projects and will be scheduled and planned as the need
arises.
Over the last few years, main replacement costs have been increasing for Wastewater as well
as the Gas and Water utilities. The replacement cost per linear foot has increased by between
25 and 50% in some cases. Several factors may be contributing to this. Economic recovery in
the Bay Area, as well as a greater focus on infrastructure improvement by many municipal
agencies and utilities could be creating high demand for contractors in this field. There may be
ongoing greater costs for newer, more leak resistant pipe materials. Should these trends prove
to be less than short-term phenomena, wastewater main replacement budgets may need to be
increased by $1.5 to $1.7 million more per year to maintain the current pace of replacement.
This increase in cost is a partial reason for the two year delay in projects. The most recent
project, when put out for bid, resulted in very few contractors competing, and project bids
larger than budgeted. Staff will redesign this and future projects into smaller segments to keep
budgets lower, while not compromising on overall system integrity. The other reason for delay
is the University Avenue Business District project, and getting coordination amongst all
departments is taking more time than expected. Finally, there has been an ongoing issue with
keeping and maintaining qualified staff to design and work on projects.
Customer Connections costs are projected to increase steadily by around 3% each year through
the end of the forecast period. Actual expenses for these projects fluctuate annually depending
on how many defective laterals and manholes are discovered during routine maintenance, as
well as how much development and redevelopment is going on that prompts the replacement
or upgrade of sewer laterals. It is worth noting that property owners pay a fee for sewer lateral
replacement or expansion during redevelopment, so when the number of projects increases, so
does fee revenue.
Projected CIP spending is displayed in Table 10 for the 5-year financial forecast period.
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Table 9: Projected CIP Spending
Aside from Customer Connections, the CIP plan for FY 2018 to FY 2022 is funded by sewer rates
and capacity fees. The details of the plan are shown in Appendix B: Wastewater Collection
Utility Capital Improvement Program (CIP) Detail.
SECTION 6D: DEBT SERVICE
The Wastewater Collection Utility currently pays its share of one bond issuance, the 1999 Utility
Revenue Bonds, Series A, which is due to be retired in 2024. This $17.7 million issuance
refinanced various earlier Storm Drain, Wastewater Treatment, and Wastewater Collection
Utility bond issuances. The Wastewater Collection Utility’s share of the issuance was roughly
$1.9 million. This amount represented the second refinancing of the remaining principal of a
1990 bond issuance which itself was a refinancing of a 1985 issuance that financed a variety of
improvements to the sewer system. The cost of debt service for the Wastewater Collection
Utility’s share of this bond issuance for the financial forecast period is roughly $128,000 per
year as shown in Table 11 below.
Table 10: Wastewater Collection Utility Debt Service ($000)
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
1999 Utility Revenue Bonds, Series A 128 128 128 129 129 129
The 1999 Utility Revenue Bonds include two covenants stating that 1) the Wastewater
Collection Utility will maintain a debt coverage ratio of 125% of debt service, and 2) that the
City will maintain “Available Reserves”8 equal to five times the annual debt service. The current
financial plan maintains compliance with both covenants throughout the forecast period.
Compliance with covenant one is shown below in Table 12, below. Due to the small size of the
annual debt service payment for these bonds, the Wastewater Collection Utility’s Operations
Reserve alone more than satisfies the second covenant at more than 30 times annual debt
service throughout the forecast period.
8 Available Reserves as defined in the 1999 Utility Revenue Bonds included reserves for the Water, Wastewater
Treatment, Wastewater Collection, Refuse, Storm Drain, Electric, and Gas Utilities
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Table 11: Debt Service Coverage Ratio ($000)
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Revenues 19,042 19,170 20,381 21,787 23,112 24,611
Expenses (Excl. CIP
and Debt Service) -15,869 -16,146 -16,713 -17,709 -18,717 -19,343
Net Revenues 3,173 3,024 3,668 4,078 4,395 5,268
Debt Service 128 128 128 128 129 129
Coverage Ratio 2479% 2363% 2866% 3186% 3407% 4084%
The Wastewater Collection Utility’s reserves (but not its net revenues) are also considered
security for the Storm Drain and Wastewater Treatment Utilities’ shares of the debt service on
the 1999 bonds. Throughout the term of the bonds there remains a small risk that the
Wastewater Collection Utility’s reserves could be called upon to make a debt service payment
on behalf of one of those utilities if it cannot meet its debt service obligations. Staff does not
foresee this occurring based on the current financial condition of those utilities. If the
Wastewater Collection Utility’s reserves were used this way, any amounts advanced would
have to be repaid by the borrowing utility.
One other bond series is secured by the net revenues (but not the reserves) of the Wastewater
Collection Utility. The 1995 Series A Utility Revenue Bonds issued for the Storm Drain utility
was secured by the net revenues of the City’s “Enterprise,” which was defined as the City’s
water, gas, wastewater, storm drain, and electric utilities, and are senior to the 1999 bonds
referenced above. Debt service payments of roughly $680,000 per year are made on the 1995
Series A bonds by the City’s Storm Drain Utility, and staff does not currently foresee any risk of
that utility being unable to make payment.
SECTION 6E: OTHER REVENUES
The utility has seen substantial increases in connection and capacity fee revenues in recent
years, offsetting the need for increased sales revenue in the past, and these are assumed to
continue, albeit slightly reduced from current levels. Income from interest and transfers in are
projected to remain steady through the forecast horizon.
SECTION 7: COMMUNICATIONS PLAN
The FY 2017 Wastewater Collection Utility communications strategy covers three primary areas:
rates, maintenance and operations, and safety. Communication about wastewater rate
adjustments will highlight the important infrastructure and operations upgrades that are
occurring at the Regional Water Quality Control Plant to improve wastewater collection utility
services. To keep customers apprised of the status and accomplishments of CIP projects, a
network of project web pages are maintained and updated as needed. Traffic is driven to the
website via ads in newspapers and local publications, utility bill inserts, social media and email
newsletters.
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An important communications topic for the wastewater utility is avoiding sewer back-ups due
to FOG (fats, oil and grease) and trash being dumped down drains and toilets. Safety topics are
emphasized year-round. Staff continues its outreach goal of educating customers about the
utility’s gas-sewer line cross-bore inspection program, including the importance of calling
Utilities prior to clearing sewer lines in the event of a sewer back-up.
Promotional activity about wastewater utility maintenance and safety operations includes use
of bill inserts, ads in local print publications, website pages, email newsletters and social
media. While print materials and website pages feature prominently, CPAU is increasing the
outreach emphasis on more direct communication with customers, including through use of
social media, email newsletters, digital ads, videos and short commercials on the local
television channels. Staff is also attending more community safety/emergency preparation
events and neighborhood meetings.
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APPENDICES
Appendix A: Wastewater Collection Financial Forecast Detail
Appendix B: Wastewater Collection Utility Capital Improvement Program (CIP) Detail
Appendix C: Wastewater Collection Utility Reserves Management Practices
Appendix D: Sample of Wastewater Collection Outreach Materials
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APPENDIX A: WASTEWATER COLLECTION FINANCIAL FORECAST DETAIL
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APPENDIX B: WASTEWATER COLLECTION UTILITY CAPITAL IMPROVEMENT PROGRAM (CIP) DETAIL
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APPENDIX C: WASTEWATER COLLECTION UTILITY RESERVES
MANAGEMENT PRACTICES
The following reserves management practices shall be used when developing the Wastewater
Collection Utility Financial Plan:
Section 1. Definitions
a) “Financial Planning Period” – The Financial Planning Period is the range of future fiscal
years covered by the Financial Plan. For example, if the Financial Plan delivered in
conjunction with the FY 2015 budget includes projections for FY 2015 to FY 2019, FY
2015 to FY 2019 would be the Financial Planning Period.
b) “Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers
to the Utility’s Unrestricted Net Assets.
c) “Net Assets” - The Government Accounting Standards Board defines a Utility’s Net
Assets as the difference between its assets and liabilities.
d) “Unrestricted Net Assets” - The portion of the Utility’s Net Assets not invested in capital
assets (net of related debt) or restricted for debt service or other restricted purposes.
Section 2. Reserves
The Wastewater Collection Utility’s Fund Balance is reserved for the following purposes:
a) For existing contracts, as described in Section 3 (Reserve for Commitments)
b) For operating and capital budgets re-appropriated from previous years, as described in
Section 4 (Reserve for Re-appropriations)
c) For cash flow management and contingencies related to the Wastewater Collection
Utility’s Capital Improvement Program (CIP), as described in Section 5 (CIP Reserve)
d) For rate stabilization, as described in Section 6 (Rate Stabilization Reserve)
e) For operating contingencies, as described in Section 7 (Operations Reserve)
f) Any funds not included in the other reserves will be considered Unassigned Reserves
and shall be returned to ratepayers or assigned a specific purpose as described in
Section 8 (Unassigned Reserves).
Section 3. Reserve for Commitments
At the end of each fiscal year the Reserve for Commitments will be set to an amount equal
to the total remaining spending authority for all contracts in force for the Wastewater
Collection Utility at that time.
Section 4. Reserve for Re-appropriations
At the end of each fiscal year the Reserve for Re-appropriations will be set to an amount
equal to the amount of all remaining capital and non-capital budgets, if any, that will be re-
appropriated to the following fiscal year in accordance with Palo Alto Municipal Code
Section 2.28.090.
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
February 2016 26 | Page
Section 5. CIP Reserve
The CIP Reserve is used to manage cash flow for capital projects and acts as a reserve for
capital contingencies. Staff will manage the CIP Reserve according to the following
practices:
a) The following guideline levels are set forth for the CIP Reserve. These guideline levels
are calculated for each fiscal year of the Financial Planning Period based on the levels of
CIP expense budgeted for that year.
Minimum Level 12 months of budgeted CIP expense
Maximum Level 24 months of budgeted CIP expense
b) Changes in Reserves: Staff is authorized to transfer funds between the CIP Reserve and
the Reserve for Commitments when funds are added or removed from to that reserve
as a result of a change in contractual commitments related to CIP projects. Any other
additions to or withdrawals from the CIP reserve require Council action.
c) Minimum Level:
i) Funds held in the Reserve for Commitments may be counted as part of the CIP
Reserve for the purpose of determining compliance with the CIP Reserve minimum
guideline level.
ii) If, at the end of any fiscal year, the minimum guideline is not met, staff shall present
a plan to the City Council to replenish the reserve. The plan shall be delivered by the
end of the following fiscal year, and shall, at a minimum, result in the reserve
reaching its minimum level by the end of the next fiscal year. For example, if the CIP
Reserve is below its minimum level at the end of FY 2017, staff must present a plan
by June 30, 2018 to return the reserve to its minimum level by June 30, 2019. In
addition, staff may present, and the Council may adopt, an alternative plan that
takes longer than one year to replenish the reserve, or that does so in a shorter
period of time.
d) Maximum Level: If, at any time, the CIP Reserve reaches its maximum level, no funds
may be added to this reserve. If there are funds in this reserve in excess of the
maximum level staff must propose to transfer these funds to another reserve or return
them to ratepayers in the next Financial Plan. Staff may also seek City Council to
approve holding funds in this reserve in excess of the maximum level if they are held for
a specific future purpose related to the CIP.
Section 6. Rate Stabilization Reserve
Funds may be added to the Rate Stabilization Reserve by action of the City Council and held
to manage the trajectory of future year rate increases. Withdrawal of funds from the Rate
Stabilization Reserve requires Council action. If there are funds in the Rate Stabilization
Reserve at the end of any fiscal year, any subsequent Wastewater Collection Utility
Financial Plan must result in the withdrawal of all funds from this Reserve by the end of the
Financial Planning Period.
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
February 2016 27 | Page
Section 7. Operations Reserve
The Operations Reserve is used to manage normal variations in costs and as a reserve for
contingencies. Any portion of the Wastewater Collection Utility’s Fund Balance not
included in the reserves described in Section 3-Section 6 above will be included in the
Operations Reserve unless this reserve has reached its maximum level as set forth in Section
7(d) below. Staff will manage the Operations Reserve according to the following practices:
a) The following guideline levels are set forth for the Operations Reserve. These guideline
levels are calculated for each fiscal year of the Financial Planning Period based on the
levels of Operations and Maintenance (O&M) and commodity expense forecasted for
that year in the Financial Plan.
Minimum Level 60 days of O&M and commodity expense
Target Level 105 days of O&M and commodity expense
Maximum Level 150 days of O&M and commodity expense
b) Minimum Level: If, at the end of any fiscal year, the funds remaining in the Operations
Reserve are lower than the minimum level set forth above, staff shall present a plan to
the City Council to replenish the reserve. The plan shall be delivered within six months
of the end of the fiscal year, and shall, at a minimum, result in the reserve reaching its
minimum level by the end of the following fiscal year. For example, if the Operations
Reserve is below its minimum level at the end of FY 2014, staff must present a plan by
December 31, 2014 to return the reserve to its minimum level by June 30, 2015. In
addition, staff may present, and the Council may adopt, an alternative plan that takes
longer than one year to replenish the reserve.
c) Target Level: If, at the end of any fiscal year, the Operations Reserve is higher or lower
than the target level, any Financial Plan created for the Wastewater Collection Utility
shall be designed to return the Operations Reserve to its target level within four years.
d) Maximum Level: If, at any time, the Operations Reserve reaches its maximum level, no
funds may be added to this reserve. Any further increase in the Wastewater Collection
Utility’s Fund Balance shall be automatically included in the Unassigned Reserve
described in Section 8, below.
Section 8. Unassigned Reserve
If the Operations Reserve reaches its maximum level, any further additions to the
Wastewater Collection Utility’s Fund Balance will be held in the Unassigned Reserve. If
there are any funds in the Unassigned Reserve at the end of any fiscal year, the next
Financial Plan presented to the City Council must include a plan to assign them to a specific
purpose or return them to the Wastewater Collection Utility ratepayers by the end of the
first fiscal year of the next Financial Planning Period. For example, if there were funds in the
Unassigned Reserves at the end of FY 2015, and the next Financial Planning Period is
FY 2016 through FY 2020, the Financial Plan shall include a plan to return or assign any
funds in the Unassigned Reserve by the end of FY 2016. Staff may present an alternative
plan that retains these funds or returns them over a longer period of time.
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
February 2016 28 | Page
APPENDIX D: SAMPLE OF WASTEWATER COLLECTION OUTREACH
MATERIALS
*NOT YET APPROVED *
6053774
Resolution No. _________
Resolution of the Council of the City of Palo Alto Adopting a Dark
Fiber Rate Increase and Amending Rate Schedules EDF-1 (Dark Fiber
Licensing Services) and EDF-2 (Dark Fiber Connection Fees)
A. The City of Palo Alto administers three different fiber rates. Fiber Rate schedule
EDF-1 applies to customers with fiber optic licenses that began prior to September 18, 2006,
and is closed to new customers. Fiber rate schedule EDF-2 applies to customer engineering,
construction and connection expenses. Fiber rate schedule EDF-3 applies to customers who
obtained licenses since 2006.
B. The original Council-approved Dark Fiber Licensing Agreement annually increases
both the EDF-1 and EDF-2 rates by the Consumer Price Index for all Urban Consumers for the
San Francisco-Oakland-San Jose Metropolitan Statistical Area (CPI). EDF-3 has no CPI
adjustment factor.
C.The last time Council adopted a resolution incorporating CPI-adjusted rates into
the EDF-1 and EDF-2 rate schedules was June 13, 2016 [Resolution 9592].
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule EDF-1 (Dark Fiber Licensing Services) is hereby amended to read as attached and
incorporated. Utility Rate Schedule EDF-1, as amended, shall become effective July 1, 2017.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule EDF-2 (Dark Fiber Connection Fees) is hereby amended to read as attached and
incorporated. Utility Rate Schedule EDF-2, as amended, shall become effective July 1, 2017.
SECTION 3. The Council finds that the revenue derived from the adoption of this
resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of
the City of Palo Alto.
SECTION 4. The Council finds that the adoption of this resolution increasing dark fiber
rates by the Consumer Price Index to meet operating expenses, purchase supplies and
materials, meet financial reserve needs and obtain funds for capital improvements necessary to
maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to
California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of
Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to
Council, the Council incorporates these documents herein and finds that sufficient evidence has
been presented setting forth with specificity the basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
ATTACHMENT J
*NOT YET APPROVED *
6053774
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
DARK FIBER LICENSING SERVICES
UTILITY RATE SCHEDULE EDF-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No EDF-1-1 Effective 07-01-20176
dated 7-01-20165 Sheet No. EDF-1-1
A.APPLICABILITY:
This rate schedule applies to customer accounts established prior to September 18, 2006, unless the customer elects
to apply the EDF-3 rate to the entire customer account. This rate applies to Fiber Optic services from the City of
Palo Alto Utilities (CPAU) pertaining to the City's network (Backbone and associated connections).
B.TERRITORY:
Within the incorporated limits of the City of Palo Alto and land owned or leased by the City.
C.FEES:
1. DARK FIBER BACKBONE LICENSE FEES:
The values or ranges for each of these price components are shown below:
(1) Fiber Price………………………………………………………………. $356.32368.91/FM/month
(2) Quantity discount ……………………………………………………… $0 to $59.84/FM/month
(3) Buffer tube discount……………………………………………………….. $0 to $59.84/FM/month
(4) Route length discount…………………………………………………….. $0 to $77.80/FM/month
(5) Ring topology discount………………………………………………………$0 to $23.94/FM/month
(6) Length of term discount…………………………………………………… $0 to $46.80/FM/month
Minimum Backbone License Fee
$538.92557.95/month
Project Minimum Backbone Fees apply to any project proposal signed after September 18, 2006 in which
the project connects with the Backbone.
Description for Discounts:
Quantity discount: based on an array of discounts for quantities of fiber licensed on a specific path.
Buffer tube discount: discount for numbers of full buffer tubes licensed on a specific path.
Route length discount: based on the route length licensed on a specific project.
Ring topology discount: The ring topology discount for customers contracting for complete rings.
Term discount: based on an array of discounts for contracts greater than one and less than ten years.
2. DARK FIBER LATERAL CONNECTION FEES:
Customer responsibilities and fees for drop and custom cable construction are described in the CPAU Rules
and Regulations, Rate Schedule EDF-2, project proposals and other associated documents. In all cases, the
Licensee shall pay an annual Drop/Custom Cable Management Fee based on the follow per foot fees:
(1) Drop Cable Management Fees (for the first 12-Fibers) …………………………… $0.03-$0.07/ft/month
(2) Custom Cable Management Fees (for the first 12-Fibers)……………………….. $0.364/ft/month
(3) Fees for additional Drop or Custom Cable fibers (each additional set of 12-Fibers) $0.07/ft/month
ATTACHMENT K
DARK FIBER LICENSING SERVICES
UTILITY RATE SCHEDULE EDF-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No EDF-1-2 Effective 07-01-20176
dated 7-01-20165 Sheet No. EDF-1-2
Minimum Drop or Custom Cable Management Fees ........................................................
$266.29275.69/month
Minimum Drop Cable Management Fees apply to any project proposal signed after September 18, 2006.
DARK FIBER LICENSING SERVICES
UTILITY RATE SCHEDULE EDF-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No EDF-1-3 Effective 07-01-20176
dated 7-01-20165 Sheet No. EDF-1-3
3. EARLY TERMINATION FEES:
If the Licensee chooses to terminate for convenience the License Agreement or the term of any project
under the License Agreement, then the Licensee shall pay the applicable termination payment as specified
in this schedule or in the License Agreement, as provided below.
Unless otherwise provided in the License Agreement, the Licensee shall pay a termination fee in one of the
following amounts, whichever is less:
Annual fee of the contract year that the Licensee chooses to terminates in full without term
discounts, or
Remaining fees of the project term as indicated in the License Agreement.
D. SPECIAL NOTES:
1. All fees must be paid to the City in accordance with the terms of the Dark Fiber License Agreement, the
customer’s project proposals and all the applicable Utilities Rates, Rules, and Regulations.
2. All fees and minimum charges are subject to Consumer Price Index (CPI) adjustments, to be applied
annually, except as defined by Section D.3 of this Rate Schedule. Discounts will not be modified by
changes to CPI.
3. The CPI adjustment will be based on the Consumer Price Index for All Urban Consumers (CPI-U) for the
San Francisco-Oakland-San Jose MSA, published by the U.S. Department of Labor, Bureau of Labor
Statistics. The adjustment is calculated by dividing the most recent calendar year December CPI by the
December CPI in the year rates last changed. In the event that the change between December CPI’s
indicates an adjustment of less than 1% is required, a change to rate schedules may not be made for the
upcoming year. Future rate changes will take the last year of change as the new base year for purposes of
calculation.
{End}
DARK FIBER SERVICE CONNECTION FEES
UTILITY RATE SCHEDULE EDF-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No EDF-2-1 Effective 7-01-20176
dated 7-01-20165 Sheet No. EDF-2-1
A. APPLICABILITY:
This schedule applies to all connections, expansions, and upgrades to the City's Dark Fiber network (Backbone).
B. TERRITORY:
All territory within the incorporated limits of the City and land owned or leased by the City.
C. FEES:
1. ADVANCE ENGINEERING FEES:
Advance engineering (AER) fees must be paid to start the engineering process and are non-refundable. The
fees will be credited against the estimated project cost prior to the collection of the project construction
fees.
(1) Commercial/Industrial AER minimum fee ..................................................................... $8851.00
(2) Special conditions (requiring expert assessment) ........................................................... By Estimate
2. ESTIMATED SERVICE CONNECTION AND RECONFIGURATION FEES
All estimated service connection and reconfiguration fees must be paid prior to the scheduling of any
construction or reconnections to the City's Dark Fiber network.
(1) Service connection (Interconnection) fee ...................................................... By Estimate
(2) Reconfiguration Fees ..................................................................................... By Estimate
Labor rates are subject to change as stated in the Utility Rate Schedule C-1.
D. NOTES:
1. The Customer is responsible for the installation and maintenance of all ducts and pathways from the facility to
the property line in compliance with City of Palo Alto Utilities Rules and Regulations and contract agreements.
2. The City shall not be held liable for delays or interruptions in service, but will make reasonable efforts to
provide timely continuous service.
3. All fees are subject to Consumer Price Index (CPI) adjustments, to be applied annually. The CPI adjustment
will be based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-
San Jose MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is
calculated by dividing the most recent calendar year December CPI by the December CPI in the year rates last
changed. In the event that the change between December CPI’s indicates an adjustment of less than 1% is
required, a change to rate schedules may not be made for the upcoming year. Future rate changes will take the
last year of change as the new base year for purposes of calculation.
{End}
Attachment L
*NOT YET APPROVED *
170216 jb 6053918
Resolution No. ______
Resolution of the Council of the City of Palo Alto Approving the
FY 2018 Water Utility Financial Plan
R E C I T A L S
A.Each year the City of Palo Alto (“City”) regularly assesses the financial position of its
utilities with the goal of ensuring adequate revenue to fund operations. This includes making
long-term projections of market conditions, the physical condition of the system, and other
factors that could affect utility costs, and setting rates adequate to recover these costs. It does
this with the goal of providing safe, reliable, and sustainable utility services at competitive
rates. The City adopts Financial Plans to summarize these projections.
B.The City uses reserves to protect against contingencies and to manage other aspects
of its operations, and regularly assesses the adequacy of these reserves and the management
practices governing their operation. The status of utility reserves and their management
practices are included in Reserves Management Practices attached to and made part of the
Financial Plans.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby adopts the FY 2018 Water Utility Financial Plan.
SECTION 2. The Council hereby approves the transfer of $1.877 million in FY 2018 from
the Rate Stabilization Reserve to the Operations Reserve, as described in the FY 2018 Water
Utility Financial Plan approved via this resolution.
SECTION 3. The Council finds that the adoption of this resolution does not meet the
definition of a project requiring California Environmental Quality Act (CEQA) review, under
/ /
/ /
/ /
/ /
/ /
*NOT YET APPROVED *
170216 jb 6053918
California Public Resources Code 21065 and CEQA Guidelines Section 15378(b)(5), because it is
an administrative governmental activity which will not cause a direct or indirect physical change
in the environment.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
___________________________ ___________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
FY 2018 WATER
UTILITY
FINANCIAL PLAN
FY 2018 TO FY 2027
ATTACHMENT M
WATER UTILITY FINANCIAL PLAN
F e b r u a r y 2 0 1 6 2 | P a g e
FY 2018 WATER UTILITY
FINANCIAL PLAN
FY 2018 TO FY 2027
TABLE OF CONTENTS
Section 1: Definitions and Abbreviations................................................................................ 4
Section 2: Executive Summary and Recommendations ........................................................... 4
Section 2A: Overview of Financial Position .................................................................................. 4
Section 2B: Summary of Proposed Actions .................................................................................. 5
Section 3: Detail of FY 2018 Rate and Reserves Proposals ....................................................... 5
Section 3A: Rate Design ............................................................................................................... 5
Section 3B: Current and Proposed Rates ..................................................................................... 6
Section 3C: Bill Impact of Proposed Rate Changes ...................................................................... 8
Section 3D: Proposed Reserve Transfers ................................................................................... 10
Section 4: Utility Overview .................................................................................................. 10
Section 4A: Water Utility History ............................................................................................... 10
Section 4B: Customer Base ........................................................................................................ 11
Section 4C: Distribution System ................................................................................................. 11
Section 4D: Cost Structure and Revenue Sources ...................................................................... 11
Section 4E: Reserves Structure ................................................................................................... 12
Section 4F: Competitiveness ...................................................................................................... 13
Section 5: Utility Financial Projections ................................................................................. 13
Section 5A: Load Forecast .......................................................................................................... 13
Section 5B: FY 2012 to FY 2016 Cost and Revenue Trends ........................................................ 15
Section 5C: FY 2016 Results ....................................................................................................... 16
Section 5D: FY 2017 Projections ................................................................................................ 16
Section 5E: FY 2018 – FY 2027 Projections ................................................................................ 16
Section 5F: Risk Assessment and Reserves Adequacy ............................................................... 18
Section 5G: Alternate ScenarIOS ................................................................................................ 19
WATER UTILITY FINANCIAL PLAN
F e b r u a r y 2 0 1 6 3 | P a g e
Section 5H: Long-Term Outlook ................................................................................................. 19
Section 6: Details and Assumptions ..................................................................................... 20
Section 6A: Water Purchase Costs ............................................................................................. 20
Section 6B: Operations .............................................................................................................. 21
Section 6C: Capital Improvement Program (CIP) ....................................................................... 22
Section 6D: Debt Service ............................................................................................................ 24
Section 6E: Other Revenues ....................................................................................................... 26
Section 6F: Sales Revenues ........................................................................................................ 26
Section 7: Communications Plan .......................................................................................... 26
Appendices ......................................................................................................................... 28
Appendix A: Water Utility Financial Forecast Detail ................................................................. 29
Appendix B: Water Utility Capital Improvement Program (CIP) Detail ..................................... 31
Appendix C: Water Utility Reserves Management Practices ..................................................... 33
Appendix D: Description of Water Utility Operational Activities ............................................... 36
Appendix E: Sample of Water Utility Outreach Communications ............................................. 37
WATER UTILITY FINANCIAL PLAN
F e b r u a r y 2 0 1 6 4 | P a g e
SECTION 1: DEFINITIONS AND ABBREVIATIONS
BAWSCA Bay Area Water Supply and Conservation Agency
CCF The standard unit of measurement for water delivered to water customers, equal to
one hundred cubic feet, or roughly 748 gallons.
CIP Capital Improvement Program
CPAU City of Palo Alto Utilities Department
O&M Operations and Maintenance
RFC Raftelis Financial Consultants, Inc.
SFPUC San Francisco Public Utilities Commission
SFWD San Francisco Water Department
UAC Utilities Advisory Commission
WSIP The SFPUC’s Water System Improvement Program to seismically strengthen the
transmission lines of the Hetch Hetchy regional water system.
SECTION 2: EXECUTIVE SUMMARY AND RECOMMENDATIONS
This document presents a Financial Plan for the City’s Water Utility for the next ten years. This
Financial Plan provides revenues to cover the costs of operating the utility safely over that time
while adequately investing for the future. It also addresses the financial risks facing the utility
over the short term and long term, and includes measures to mitigate and manage those risks.
SECTION 2A: OVERVIEW OF FINANCIAL POSITION
Overall costs in the Water Utility are expected to rise by about 3% per year from fiscal year (FY)
2017 to 2027. Excluding FY 2018 (which, unlike a normal year, does not include a water main
replacement project), most costs are projected to rise by two to three percent annually through
the projection period. The costs for the Water Utility are shown in Table 1 below.
Table 1: Expenses for FY 2016 to FY 2027 (Thousand $’s)
Expenses
($000)
FY
2016
(act.)
FY
2017
(est.)
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
Water
Purchases
17,626
19,246
21,347
22,756
22,850
22,933
23,016
23,120
23,367
23,625
23,890
24,495
Operations
15,895
17,601
18,064
18,535
19,023
19,475
19,905
20,349
20,798
21,260
21,734
22,220
Capital
Projects
9,082
4,110
4,082
10,314
10,067
10,364
10,671
10,986
11,310
11,645
11,989
12,343
TOTAL
42,603
40,610
43,494
51,605
51,940
52,773
53,591
54,455
55,475
56,529
57,613
59,059
This proposed financial plan projects that the rate increases shown in Table 2 are needed to
ensure that revenues cover rising costs and reserves remain healthy. The table also shows rate
projections from last year’s Financial Plan. Last year’s plan projected earlier, more aggressive
rate increases. However, the delay of the planned FY 2017 and FY 2018 water main
replacement projects resulted in an increase in reserves, which enabled the more gradual
WATER UTILITY FINANCIAL PLAN
F e b r u a r y 2 0 1 6 5 | P a g e
increases projected in the current plan. This also means that the Rate Stabilization Reserve will
be drawn down over a longer time frame than projected in last year’s financial plan.
Table 2: Projected Water Rate Trajectory for FY 2018 to FY 2027
Projection FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
FY
2027
Current 4% 6% 6% 6% 6% 6% 2% 2% 2% 1%
Last year 9% 9% 6% 2% 2% 2% 3% 5% 3% N/A
2 years 8% 8% 3% 1% 2% 3% N/A N/A N/A N/A
The Water Utility has a Rate Stabilization Reserve that can be used to smooth rate increases
over several years. This Financial Plan projects that these reserves will be exhausted by the end
of FY 2017. The Water Utility also has a Capital Improvement Program (CIP) Reserve that can be
used to offset one-time unanticipated capital costs. This Financial Plan assumes that the CIP
Reserve will be used for unanticipated capital expenses or returned to the Operations Reserve
by the end of FY 2020. Table 3 shows the projected reserve transfers over the forecast period.
Table 3: Transfers To/(From) Reserves for FY 2017 to FY 2027 ($000)
Reserve FY 2017 FY 2018 FY 2019 to FY 2027
Capital Improvement - (2,726)
Rate Stabilization (1,877) - -
Operations 1,867 - 2,726
SECTION 2B: SUMMARY OF PROPOSED ACTIONS
Staff proposes the following actions for the Water Utility in FY 2018:
1. Increase rates by 4%, reflecting proposed increases to SFPUC wholesale rates. This is
described in more detail in Section 3B: Current and Proposed Rates.
2. Transfer $1.877 million from the Rate Stabilization Reserve to the Operations Reserve.
See Section 3D: Proposed Reserve Transfers for more details.
SECTION 3: DETAIL OF FY 2018 RATE AND RESERVES PROPOSALS
SECTION 3A: RATE DESIGN
The Water Utility’s rates are evaluated and implemented in compliance with the cost of service
requirements and procedural rules set forth in the California Constitution under Article 13 (per
Proposition 218). Current rates were structured based on staff’s assessment of the financial
position of the Water Utility, and updated using the methodology from the March 2012 Palo
Alto Water Cost of Service & Rate Study by Raftelis Financial Consultants, Inc. (Staff Report
2676), as well as Raftelis’ 2015 Memorandum: Proposed Water Rates updating the 2012 Study
and analyzing drought rates (Staff Report 5951). Staff plans to review and update this cost of
service study in 2 to 3 years, unless any major changes occur to the utility’s operations or
customer base that would necessitate an earlier study. Before conducting any new cost of
WATER UTILITY FINANCIAL PLAN
F e b r u a r y 2 0 1 6 6 | P a g e
service study, staff will review current rates and the scope of the study with the Utilities
Advisory Commission (UAC) and Council to determine the City’s policy priorities.
In 2015 Council adopted a drought surcharge to assist the water utility in recovering its costs
due to decreased revenue due to lower water consumption resulting from conservation
measures. Recent rains have dramatically improved the water supply outlook for the Hetch
Hetchy system, eliminating local drought impacts. Mandatory usage restrictions have been
lifted by the State of California, and while voluntary measures may still remain in place ,
customers’ usage of water has started to increase. The increasing usage, the end of the
drought, and the healthy level of Operations reserves indicate to staff that the drought
surcharge can be removed at this time.
SECTION 3B: CURRENT AND PROPOSED RATES
The current rates and surcharges were effective on July 1, 2016. Rates were adjusted in
accordance with the results of an updated cost of service study performed by Raftelis Financial
Consultants, Inc. (RFC) in 2015. The 2015 study both developed the drought surcharges and
validated the City’s water rate methodology and structure in light of court decisions
interpreting provisions of the State Constitution applicable to water rates. RFC recommended
only minor adjustments to ensure that peaking costs were equitably allocated to each customer
class and residential rate tier.
CPAU has five rate schedules: one for separately metered residential customers (W-1), one for
commercial and master-metered multi-family residential customers (W-4), and specific
schedules for irrigation-only services (W-7), services to fire sprinkler systems in buildings and
private hydrants (W-3), and for service to fire hydrant rental meters used for construction (W-
2). All customers pay a monthly service charge based on the size of their inlet meter. This
charge represents meter reading, billing, and other customer service costs, but also the cost of
maintaining the capability to deliver a peak flow for that customer corresponding to their meter
size. All customers are also charged for each CCF (one hundred cubic feet) of water used.
Separately metered residential customers are charged on a tiered basis, with the first 0.2 CCF
per day (6 CCF for a 30 day billing period) charged at the base price per CCF, and all additional
units charged a higher price per CCF. Commercial customers pay a uniform price for each CCF
used, and a higher price for separately metered irrigation service.
Table 4 shows the current and proposed consumption charges.
The average increase is projected to be about four percent, which is related to commodity cost
increases. The increase represents the difference between what was projected by staff during
the FY 2017 forecasting process ($4.01/ccf) to the current estimate of what the FY 2018 SFPUC
W-25 (Wholesale Use with Long-Term Contract) rate will be. While staff forecast $4.01/ccf
based on preliminary figures provided by the SFPUC, the final rate adopted for FY2017 was
$4.10/ccf, with reserves used to cover the difference in cost vs. revenues.
In early January, the SFPUC provided a preliminary range for their FY 2018 increase to the W-25
wholesale rate ($4.10 to $4.37/ccf). The SFPUC will not determine the final rate until May or
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June. However, in order to have rates in place for July 1, staff must notice customers by the end
of April. Staff has chosen to conservatively forecast at the high end of the SFPUC estimate.
The SFPUC does not typically provide it’s final, annual change to its wholesale rate until the
City’s retail rate is already proposed to Council for adoption. To meet Palo Alto’s timeline to
increase rates by July 1, staff has historically set retail rates based on early estimates from the
SFPUC, which are subject to change.
Changes in the SFPUC’s wholesale rate require staff to reconcile costs and revenues well after
the fact. To calculate the rate increase needed as a result of the City’s increased commodity
costs, staff, in coordination with the City’s cost of service consultant, applied the per-unit
commodity cost to the volumetric component of the rates, based on the analysis and
methodology from the cost of service study. The per-unit commodity cost is the same for all
classes of customers and across all usage levels. As this proposed increase only reflects changes
to commodity costs, volumetric rates will increase by the same amount per ccf, regardless of
customer type or usage tier.
California law implementing Prop. 218 (Government Code 53766) allows for automatic
adjustments that pass-through increases or decreases in the City’s wholesale water costs, so
long as customers are informed of the rate adjustment at least 30 days in advance of each rate
adjustment. Customers would be informed of the City’s initial intent to automatically adjust
these costs via the standard Proposition 218 notice and hearing process. If no majority protest
occurred and Council adopted the proposed rates, future changes to the wholesale rate could
be passed through to customers upon 30 days’ notice, which is typically included on the utility
bill. The automatic pass-through adjustment would need to be reapproved, via a new Prop.
218 notice and public hearing process, every five years.
Table 4: Current and Proposed Water Consumption Charges
Current
(7/1/16)
Proposed
(7/1/17)
Change*
$/CCF %
W-1 (Residential) Volumetric Rates ($/CCF)
Tier 1 Rates 6.30 6.66 0.36 6%
Tier 2 Rates 8.82 9.18 0.36 4%
W-2 (Construction) Volumetric Rates ($/CCF)
Uniform Rate 7.32 7.68 0.36 5%
W-4 (Commercial) Volumetric Rates ($/CCF)
Uniform Rate 7.32 7.68 0.36 5%
W-7 (Irrigation) Volumetric Rates ($/CCF)
Uniform Rate 8.72 9.08 0.36 4%
Table 5 shows the current monthly service charges for all rate schedules. Staff is not
recommending a change to the monthly service charge schedule at this time, as they are not
affected by the SFPUC’s wholesale water rate changes.
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Table 5: Current Monthly Service Charges
Meter
Size
Monthly Service Charge
($/month based on meter size)
Residential (W-1)
Commercial (W-4)
Irrigation (W-7)
Fire Services
(W-3)
5/8” $16.77 N/A
3/4” $22.60 N/A
1” $34.26 N/A
1 ½” $63.40 N/A
2” $98.37 $3.79
3” $209.11 N/A
4” $372.31 $23.42
6” $762.81 $68.03
8” $1,403.94 $144.97
10” $2,219.92 $260.70
12” $2,919.34 $421.11
SECTION 3C: BILL IMPACT OF PROPOSED RATE CHANGES
Table 6 shows the impact of the estimated July 1, 2017 rate changes on the median residential
bill. The average increase is projected to be about four percent, but some customers may see
slightly higher or lower increases due to slight changes in the composition of the utility’s costs.
To allow for effective comparison, the sample bills shown in Table 6 do not include the
temporary drought surcharge, since this would make the bills based on the July 1, 2016 rates
appear artificially high and obscure the effects of the increases to long-term rates effective July
1, 2017. In reality, though, many customers will see a decrease in their bills due to the removal
of the drought surcharge. This is shown in Table 7.
Table 6: Impact of Proposed Water Rate Changes on Residential Bills (no surcharge)
Usage
(CCF/month)
Bill under
Current Rates
(7/1/16)
Bill under
Proposed
Rates (7/1/17)
Change
$/mo. %
4 $41.97 $43.41 $1.44 3.4%
(Winter median) 7 63.39 65.91 2.52 4.0%
(Annual median) 9 81.03 84.27 3.24 4.0%
(Summer median) 14 125.13 130.17 5.04 4.0%
25 222.15 231.15 9.00 4.1%
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Table 7: Impact of Proposed Water Rate Changes on Residential Bills (with 20% drought
surcharge)
Usage
(CCF/month)
Bill under
Current Rates
(7/1/16)
Bill under
Proposed
Rates (7/1/17)
Change
$/mo. %
4 $43.69 $43.41 ($0.28) -0.6%
(Winter median) 7 67.18 65.91 (1.27) -1.9%
(Annual median) 9 87.24 84.27 (2.97) -3.4%
(Summer median) 14 137.39 130.17 (7.22) -5.3%
25 247.72 231.15 (16.57) -6.7%
Error! Reference source not found. shows the impact of the proposed July 1, 2017 rate changes
on various representative commercial customer bills. As for the residential comparison in Table
6 above, this comparison does not include the drought surcharge. A comparison with the
existing 20% surcharge is shown in Table 9.
Table 8: Impact of Proposed Water Rate Changes on Commercial Bills (no surcharge)
Usage
(CCF/month)
Bill under
Current Rates
(7/1/16)
Bill under
Proposed Rates
(7/1/17)
Change
$/mo. %
Commercial (W-4) (5/8” meters)
(Annual median) 12 $104.61 $108.93 $4.32 4%
(Annual average) 64 485.25 508.29 23.04 5%
Irrigation (W-7) (1 ½” meters)
(Winter median) 9 142 145 3 2%
(Summer median) 37 386 399 13 3%
(Winter average) 56 552 572 20 4%
(Summer average) 199 1,799 1,870 72 4%
Table 9: Impact of Proposed Water Rate Changes on Commercial Bills (with 20% drought
surcharge)
Usage
(CCF/month)
Bill under
Current Rates
(7/1/16)
Bill under
Proposed Rates
(7/1/17)
Change
$/mo. %
Commercial (W-4) (5/8” meters)
(Annual median) 12 $110.97 $108.93 ($2.04) -2%
(Annual average) 64 519.17 508.29 (10.88) -2%
Irrigation (W-7) (1 ½” meters)
(Winter median) 9 153 145 (8) -5%
(Summer median) 37 432 399 (33) -8%
(Winter average) 56 622 572 (50) -8%
(Summer average) 199 2,047 1,870 (177) -9%
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SECTION 3D: PROPOSED RESERVE TRANSFERS
In the FY 2017 Financial Plan, staff proposed transferring $1.87 million from the Rate
Stabilization Reserve to the Operations Reserve in FY 2017. This transfer will exhaust the Rate
Stabilization Reserve, as planned for and discussed in Section 4E: Reserves Structure, and is
included in the financial projections in this Financial Plan. It will enable CPAU to maintain
adequate Operations Reserve levels while moderating the pace of increase in water rates.
However, a proposed $4 million transfer from the CIP Reserve to the Operations Reserve was
also discussed in the FY 2016 Financial Plan. As the Operations reserve is projected to end the
year at its maximum allowed level, this transfer is no longer required at this time. These funds
will be retained for unexpected CIP expenses. The impact of these transfers on reserves levels
can be seen in Section 4E: Reserves Structure and Appendix A: Water Utility Financial Forecast
Detail.
SECTION 4: UTILITY OVERVIEW
This section provides an overview of the utility and its operations. It is intended as general
background information and to help readers better understand the forecasts in Section 5:
Utility Financial Projections and Section 6: Details and Assumptions.
SECTION 4A: WATER UTILITY HISTORY
The Water Utility was established on May 9, 1896, two years after the city was incorporated.
Voters of the 750 person community approved a $40,000 bond to buy local, private water
companies who operated one or more shallow wells to serve the nearby residents. The city
grew and the well system expanded until nine wells were in operation in 1932. Palo Alto began
receiving water from the San Francisco Water Department (SFWD) in 1937 to supplement these
sources.
A 1950 engineering report noted, “the capricious alternation of well waters and the San
Francisco Water Department water…has made satisfactory service to the average customer
practically impossible”. By 1950, only eight wells were still in operation. Despite this,
groundwater production increased in the 1950’s leading to lower groundwater tables and water
quality concerns. In 1962, a survey of water softening costs to CPAU customers determined that
CPAU should purchase 100% of its water supply needs from the SFWD. A 20-year contract was
signed with San Francisco, and CPAU’s wells were placed in standby condition. The SFWD later
became known as the SFPUC. Since 1962 (except for some very short periods) CPAU’s entire
supply of potable water has come from the SFPUC.
As the city grew, so did the number of mains in the water system. The system of mains
expanded along with the town, while existing sections of the system continued to age. In the
mid-1980s, the number of breaks in cast iron mains installed during the 1940s and earlier
started to accelerate. In FY 1994, to combat deterioration of older sections of the system, an
analysis of cost effective system improvements was performed and the rate of main
replacement was increased from one mile per year to three. A plan to replace 75 miles of
deficient mains within 25 years was begun.
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Figure 1: Cost Structure (FY 2016)
42%
37%
21%
Water Purchases
Operations
Capital
In 1999, a study of system reliability concluded that major upgrades were needed to the
distribution system to provide adequate water supply during a natural disaster. This ultimately
resulted in the $40 million Emergency Water Supply and Storage Project, completed in 2013,
which involved a new underground reservoir in El Camino Park, the siting and construction of
several emergency supply wells, and the upgrade of several existing wells and the Mayfield
pump station. Upon completion, the City began to focus its reliability efforts on its system of
water storage reservoirs and transmission lines in the Foothills.
At the same time that CPAU was evaluating the reliability of its own system, the SFPUC, in
consultation with BAWSCA members, was evaluating the reliability of the Hetch Hetchy water
system, which crosses two major fault lines between the Sierras and the Bay Area. That
evaluation concluded that major upgrades to the system were required. This planning process
culminated in the SFPUC’s $4.8 billion Water System Improvement Project (WSIP), which is
ongoing. The SFPUC continues to evaluate its aging system for other needed infrastructure
improvements.
SECTION 4B: CUSTOMER BASE
CPAU’s Water Utility provides water service to the residents and businesses of Palo Alto, plus a
handful of residential customers not in Palo Alto (Los Altos Hills, primarily). Nearly 20,300
customers are connected to the water system, approximately 16,500 (81%) of which are
separately metered residential customers and 3,800 (19%) of which are commercial, master-
metered residential, irrigation and fire service customers.
Judging from seasonal consumption patterns, between 35% and 50% of Palo Alto’s water is
used for irrigation, and that consumption is heavily weather dependent. It also varies
significantly by season. As a result of these two factors, there is significant variability in the
amount of water that is demanded from the system month to month and year to year.
SECTION 4C: DISTRIBUTION SYSTEM
To deliver water to its customers, the utility owns roughly 233 miles of mains (which transport
the water from the SFPUC meters at the city’s borders to the customer’s service laterals and
meters), eight wells (to be used in emergencies), five water storage reservoirs (also for
emergency purposes) and several tanks used to moderate pressure and deal with peaks in flow
and demand (due to fire suppression, heavy usage times, etc.). These represent the vast
majority of the infrastructure used to distribute water in Palo Alto.
SECTION 4D: COST STRUCTURE AND REVENUE SOURCES
As shown in Figure 1, water purchase
costs accounted for roughly 42% of the
Water Utility’s costs in FY 2016.
Operational costs represented roughly
37%, and capital investment was
responsible for the remaining 21%. These
percentage distributions are projected to
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Figure 2: Revenue Structure (FY 2016)
99%
1%
Sales of Water
Other Revenue
remain roughly the same over the forecast period.
The Water Utility receives nearly all of its revenue from sales of water and the remainder from
capacity and connection fees, interest on reserves, and other sources. As rates increase over
the next several years, the percentage of revenue from sales of water is expected to increase as
well. Appendix A: Water Utility Financial
Forecast Detail shows more detail on the
utility’s cost and revenue structures.
Roughly 15% of the utility’s revenues
come from fixed service charges, though
most of its costs are fixed. This is typical
for California water utilities, and
conforms to the Best Management
Practices (BMPs) of the California Urban
Water Conservation Council (CUWCC), a
statewide conservation council of
environmental groups, state agencies,
and water utilities to which the City is a
signatory. One of CUWCC’s BMPs is that a utility’s revenue from fixed service charges
constitutes at most 30% of the utility’s total revenue from all charges1.
SECTION 4E: RESERVES STRUCTURE
CPAU maintains six reserves for its Water Utility to manage various types of contingencies.
These are summarized below, but see Appendix C: Water Utility Reserves Management
Practices for more detailed definitions and guidelines for reserve management:
Reserve for Commitments: A reserve equal to the utility’s outstanding contract
liabilities for the current fiscal year. Most City funds, including the General Fund, have a
Commitments Reserve.
Reserve for Reappropriations: A reserve for funds dedicated to projects reappropriated
by the City Council, nearly all of which are capital projects. Most City funds, including
the General Fund, have a Reappropriations Reserve.
Capital Improvement Program (CIP) Reserve: The CIP reserve can be used to
accumulate funds for future expenditure on CIP projects and is anticipated to be empty
unless a major one-time CIP expenditure is expected in future years. This CIP can also
act as a contingency reserve for the CIP. This type of reserve is used in other utility funds
(Electric, Gas, and Wastewater Collection) as well.
Rate Stabilization Reserve: This reserve is intended to be empty unless one or more
large rate increases are anticipated in the forecast period. In that case, funds can be
accumulated to spread the impact of those future rate increases across multiple years.
1 See http://www.cuwcc.org/Resources/Memorandum-of-Understanding/Exhibit-1-BMP-Definitions-Schedules-
and-Requirements/BMP-1-Utility-Operations-Programs
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This type of reserve is used in other utility funds (Electric, Gas, and Wastewater
Collection) as well.
Operations Reserve: This is the primary contingency reserve for the Water Utility, and is
used to manage yearly variances from budget for operational water supply costs. This
type of reserve is used in other utility funds (Electric, Gas, and Wastewater Collection)
as well.
Unassigned Reserve: This reserve is for any funds not assigned to the other reserves
and is normally empty.
SECTION 4F: COMPETITIVENESS
Table 10 shows the current water bills for residential customers compared to what they would
be under surrounding communities’ rate schedules. CPAU has the highest monthly bills of the
group, although bills for smaller water users are less than in some surrounding communities.
Note that Palo Alto’s rates include the Level 2 (20%) drought surcharge currently in effect.2
Table 10: Residential Monthly Water Bill Comparison
Usage
(CCF/month)
Residential monthly bill comparison ($/month)*
As of February 2017
Palo
Alto
Menlo
Park
Mountain
View Hayward
Redwood
City
Santa
Clara
4 43.69 44.46 46.47 34.63 33.37 19.80
(Winter median) 7 67.18 63.03 65.43 53.68 45.20 34.65
(Annual median) 9 87.24 75.43 78.07 66.38 53.09 44.55
(Summer median) 14 137.39 107.95 119.47 98.13 73.81 69.30
25 247.72 180.33 229.94 206.08 119.91 123.75
* All comparisons use the 5/8” meter size.
SECTION 5: UTILITY FINANCIAL PROJECTIONS
SECTION 5A: LOAD FORECAST
Figure 3 shows 40 years of water consumption history. Average water use has trended
downward over time even as Palo Alto’s population has grown. Significant water use reductions
over the 40-year history were in response to requests to reduce water use in the 1976-77 and
1988-92 drought periods. During these periods, customers invested in efficient equipment and
modified behavior to achieve the water reduction goals. More recently, water sales decreased
substantially during the 2007-2009 recession and during the current drought. Water use is
down by similar amounts among both commercial and residential customers. Both summertime
and wintertime use have decreased for all customer classes.
2 The City’s water rate schedules allow for drought surcharges to be activated by Council at Level One
(10%-15% water use reduction level), Level Two (20%), or Level Three (25%)
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Figure 3: Historical Water Consumption
Figure 4 shows the forecast of water consumption through FY 2027, as denoted by the dotted
line.
Figure 4: Forecast Water Consumption
California has until recently been experiencing drought conditions, and the State had mandated
a 24% water use restriction for Palo Alto up until May 2016. Customers continue to conserve,
but water usage has been increasing. Based on patterns experienced in previous droughts and
in recognition of continued state-level calls for conservation, this forecast assumes
consumption will only return to 50% of its pre-drought levels, then resume with the previous
trend of decreasing usage over time.
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SECTION 5B: FY 2012 TO FY 2016 COST AND REVENUE TRENDS
Figure 5 and the tables in Appendix A: Water Utility Financial Forecast Detail show how costs
have changed during the last five years as well as how they are projected to change over the
next decade.
The annual expenses for the water utility rose substantially between 2012 and 2016. The
increases were primarily related to water purchase costs, which increased 18% from $14.9
million in FY 2012 to $17.6 million in FY 2016. A more in-depth discussion of water purchase
costs will be found in Section 6A: Water Purchase Costs. Operations cost increased by about 3%
annually, while CIP costs stayed relatively flat, except in FY 2013 when water main replacement
projects were delayed to permit completion of a backlog of projects budgeted in prior years.
Figure 5: Water Utility Expenses, Revenues, and Rate Changes:
Actual Costs through FY 2016 and Projections through FY 2027
Actual Projected
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SECTION 5C: FY 2016 RESULTS
Forecasted revenues for FY 2016 were only slightly lower than projected ($39.4 million vs.
$39.6 million) due to customers conserving more than requested during the drought. Savings in
CIP spending as well as operations and maintenance expenses were the main drivers. Table 11
summarizes the variances from forecast.
Table 11: FY 2016, Actual Results vs. Financial Plan Forecast
Net Cost/
(Benefit)
Type of
change
Lower sales revenues $175,000 Revenue decrease
Capital improvement costs lower than expected ($1,957,000) Cost savings
Admin and general costs lower than expected ($715,000) Cost savings
Operations and maintenance costs lower than expected (852,000) Cost savings
Net Cost / (Benefit) of Variances ($3,349,000)
SECTION 5D: FY 2017 PROJECTIONS
The most notable change from the FY 2017 budget identified at this time is the deferral of
Water Main Replacement Project 27. Originally budgeted at $6.2 million, this project is now
anticipated to start in FY 2019. Also deferred to FY 2019 will be the design phase of Project 28,
budgeted at $585,000. Table 12 summarizes the changes from last year’s forecast.
Table 12: FY 2016 Change in Projected Results, 2016 Forecast vs 2017 Forecast
Net Cost/
(Benefit)
Type of
Change
Higher purchase costs $343,000 Cost increase
Higher sales and misc. revenues (interest
income, fees)
($327,000) Revenue increase
Capital project deferments ($6,106,000) Cost decrease
Higher Operations budgets $536,000 Cost increase
Net Cost / (Benefit) of Variances ($5,553,000)
SECTION 5E: FY 2018 – FY 2027 PROJECTIONS
As can be seen in Figure 5 above, costs for the Water Utility are not projected to change
significantly through the rest of the forecast period. Water supply costs are the largest
component, but generally projected to grow steadily by two to three percent over the coming
years. Operations and capital investment costs are also expected to increase at the same rate of
inflation used in the City’s long-term financial plans (2.5% to 3.0% per year), though there is still
uncertainty with regard to the utility’s future costs for main replacement. See Section 6: Details
and Assumptions for more detail on the costs that make up these projections, as well as the
various assumptions underlying the projections.
As shown in Figure 5, above, revenues are currently below normal year expenses. Revenues
match expenses in FY 2017 and FY 2018 due to delays in water main replacement projects,
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leading to much lower annual CIP spending in those years. As main replacement resumes,
revenues are projected to be below expenses in the future and will require annual rate
increases of around 6% per year through FY 2023 to bring revenues up to match annual
expenses. This forecast assumes the use of the Rate Stabilization Reserve to spread the
increases over multiple years.
Reserves trends based on these revenue projections are shown in Figure 6 below. The Rate
Stabilization Reserve is projected to have a zero balance by the end of FY 2017, and the CIP
Reserve is projected to decrease by $2.7 million by the end of FY 2019. Assuming these
increases in revenue, the Operations Reserve, the main contingency reserve, is expected to
remain above the minimum reserve level and will be adequate to meet all identified risks, as
discussed in Section 5F: Risk Assessment and Reserves Adequacy.
These projections assume that drought restrictions are not re-imposed by the State. The
forecast also assumes that water main projects can be resized such that costs do not increase
by more than inflation.
Figure 6: Water Utility Reserves
Actual Reserve Levels for FY 2016 and Projections through FY 2027
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SECTION 5F: RISK ASSESSMENT AND RESERVES ADEQUACY
The Water Utility currently has one contingency reserve, the Operations Reserve, and this
Financial Plan maintains reserves within the approved reserve maximum and minimum
guidelines throughout the forecast period, as shown in Figure 7. Reserve levels also exceed the
short term risk assessment for the utility.
Figure 7: Operations Reserve Adequacy
Table 13 summarizes the risk assessment calculation for the Water Utility through FY 2022. The
same methodology is used for FY 2023 through FY 2027 as well. The risk assessment includes
the revenue shortfall that could accrue due to:
1. Lower than forecasted sales revenue; and
2. An increase of 10% of planned system improvement CIP expenditures for the budget
year.
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Table 13: Water Risk Assessment ($000)
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Total non-commodity revenue $18,406 $18,239 $19,829 $21,415 $23,129
Max. revenue variance, previous ten years 13% 13% 13% 13% 13%
Risk of revenue loss $1,819 $1,802 $1,959 $2,116 $2,285
CIP Budget $4,110 $4,082 $10,314 $10,067 $10,364
CIP Contingency @10% $411 $408 $1,031 $1,007 $1,036
Total Risk Assessment value $2,230 $2,210 $2,991 $3,123 $3,322
SECTION 5G: ALTERNATE SCENARIOS
At its February 2017 meeting, staff presented an earlier scenario with a 6% rate increase in FY
2018 followed by 6% rate increases in outer years. However, with the Operations reserve
projected to be above the target level and well within the guideline levels adopted by Council,
staff feels that a lower rate increase would be feasible, and is only proposing to increase City
retail rates to match the increase in SFPUC wholesale water rates.
SECTION 5H: LONG-TERM OUTLOOK
CPAU has put its Water Utility on strong footing by investing in its distribution system
infrastructure and emergency water facilities over the last 20 years. The Water System Master
Plan, recently completed and under review, will give CPAU a better picture of the long-term
outlook for its infrastructure and will result in a plan for an appropriate schedule for
infrastructure replacement and upgrades. In addition, CPAU’s water supplier, the SFPUC, has
replaced and seismically strengthened its water transmission infrastructure, which will benefit
Palo Alto and all Hetch Hetchy customers over the long term.
The opportunities for CPAU’s Water Utility over the long term may be in alternative water
supplies such as recycled water, groundwater, and water from the Santa Clara Valley Water
District. These alternatives have been analyzed in the past, and will be analyzed again in an
upcoming update to the Water Integrated Resource Plan. Some of these alternatives may
provide cost savings or increased drought protection.
Climate change may begin to present challenges for the Water Utility over the next 20 to 40
years. Availability of water from SFPUC’s Regional Water System may change with changing
seasonal precipitation patterns. Water consumption patterns may change. Consumption could
increase due to drier weather or decrease as customers become even more focused on water
conservation. Droughts may become more frequent. The risk of wildfire in the foothills could
increase, possibly threatening utility infrastructure or placing greater demands on it. Sea level
rise could result in greater exposure of utility infrastructure to saltwater intrusion or the need
to protect infrastructure from inundation, possibly resulting in higher maintenance and
replacement costs. It could also affect the groundwater aquifer that the utility relies on in
emergencies. Any of these could result in increases to the costs of operating the Water Utility.
As part of the Sustainability/Climate Action Plan, CPAU is currently working on a Climate
Change Adaptation Roadmap that will begin to assess some of these risks.
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SECTION 6: DETAILS AND ASSUMPTIONS
SECTION 6A: WATER PURCHASE COSTS
CPAU purchases all of the potable water supplies from the SFPUC, which owns and operates the
Hetch Hetchy Regional Water System. CPAU is one of several agencies that purchase water
from the SFPUC, all of whom are members of the Bay Area Water Supply and Conservation
Agency (BAWSCA). Palo Alto uses roughly 7% of the water delivered by the SFPUC to BAWSCA
member agencies.
The Hetch Hetchy Regional Water System begins with a system of reservoirs and tunnels in the
high Sierra in Yosemite County and is transported by a gravity-fed pipeline to the Bay Area.
Currently, the SFPUC is in the midst of a $4.8 billion bond-financed capital improvement
program (the Water System Improvement Program, or WSIP) to seismically retrofit the facilities
that transport water to the Bay Area. As of December 2016, nearly 60% of the program (by
dollar value) had been completed, while 40% was under construction.3 This has resulted in large
increases in the annual debt service costs assigned to wholesale customers like Palo Alto. The
wholesale customer debt service share of the WSIP is increasing from $53 million in FY 2010 to
over $200 million in FY 2020. As a result, the SFPUC’s wholesale water rate has already
increased from $1.43 per CCF in FY 2009 to $4.10 per CCF in FY 2017, and is forecasted to
increase to over $5.00 per CCF by FY 2025. Figure 8 shows the SFPUC’s actual wholesale water
rate since FY 2009 and a projection through FY 2027. Note that the wholesale water rate
decreased in FY 2014, but the apparent rate decrease is due to a part of the debt being directly
paid by the BAWSCA agencies. This cost is paid in addition to the wholesale water rate and
adds about $0.35 to $0.45 per CCF to the wholesale rate.
The SFPUC’s water rate projections show a less steeply increasing rate trajectory after all of the
debt for the WSIP has been issued. Parts of SFPUC’s system not included in the WSIP also may
need rehabilitation. Some of these projects are already included in the SFPUC’s rate
projections, but the SFPUC is conducting condition assessments of other “up-country” facilities,
located in the Sierras in the coming years. If the these assessments identify other facilities that
need replacement, it may result in additional rate increases beyond FY 2020 as new debt is
issued to finance the projects.
In January 2016, the SFPUC provided an early estimate for FY 2018 wholesale water rates of
$4.37 per CCF. Staff has yet to receive a new estimate, but there is much uncertainty
surrounding continued lower water usage by the BAWSCA agencies. While drought restrictions
ended in May 2016, customers’ behavior changes and wet weather may keep water usage low.
SFPUC’s rates will invariably need to increase since its costs are almost entirely fixed with no
relation to the quantity of water that delivered by the system.
As shown in Figure 8, this year’s projection of SFPUC wholesale rates has increased from the
previous year’s projection. As the drought ostensibly ended in FY 2017 and sales have started
3 Second Quarter FY 2017 WSIP Regional Quarterly Report, http://www.sfwater.org/index.aspx?page=307
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increasing, rate projections are projected to level out. However, if snow and rain do not
materialize in future years, current calls for restricted usage may continue or even be increased.
Figure 8: Historical and Projected SFPUC Wholesale Water Rate
SECTION 6B: OPERATIONS
CPAU’s Water Utility operations include the following activities:
Administration, a category that includes charges allocated to the Water Utility for
administrative services provided by the General Fund and for Utilities Department
administration, as well as debt service and other transfers. Additional detail on Water
Utility debt service is provided in Section 6D: Debt Service
Customer Service
Engineering work for maintenance activities (as opposed to capital activities)
Operations and Maintenance of the distribution system; and
Resource Management
Appendix D: Description of Water Utility Operational Activities includes detailed descriptions of
the work associated with each of these activities.
From FY 2012 to FY 2016 Operations costs (excluding debt service, rent, and transfers)
increased 3.5% per year on average (see Figure 9). The increases were driven by allocated
charges, which increased by 6% per year on average and increases in other Operations costs,
which increased by roughly 4% per year. Debt service costs increased by $2.4 million per year as
a result of a bond issued to finance the Emergency Water Supply and Storage Project. Transfers
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have varied from year to year, but are expected to remain relatively low and stable through the
forecast period.
In FY 2017 Operations costs are projected to increase by $1 million for a capital lease of
emergency generators for various wells and pump stations. This is a new ongoing cost. Aside
from that, only inflationary increases are projected for Operations costs. Underlying these
projections are assumptions for salary and benefit costs, consumer price index, and other cost
projections that match the City’s long-range financial forecast.
Figure 9: Historical and Projected Operational Costs
SECTION 6C: CAPITAL IMPROVEMENT PROGRAM (CIP)
The Water Utility’s CIP consists of the following types of projects:
Customer connections, which represents the cost when the Water Utility installs new
services or upgrades existing services at a customer’s request in response to
development or redevelopment. CPAU charges a fee to these customers to cover the
cost of these projects.
Ongoing projects, which represent the cost of replacing aging and under-recording
meters and degraded boxes and covers, minor replacements of various types of
distribution system equipment, and the cost of capitalized tools and equipment.
Actual
Regio
nal
Water
Syste
m
Projected
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One time projects, or large, non-recurring replacement of system assets (such as
reservoir rehabilitation)
Water main replacement, which represents the ongoing replacement of aging water
mains, and sometimes the services associated with those mains.
Table 14 shows the FY 2017 projected budget and the five year CIP spending plan, although
these figures are preliminary pending budget discussions starting in May. The ‘committed’
column represents funds committed to contracts for which work has not yet been completed or
invoices paid.
Table 14: Budgeted Water Utility CIP Spending ($000)
The water main replacement program funds the replacement of deteriorating water mains. The
water system consists of over 236 miles of mains, approximately 2000 fire hydrants, and over
20,000 metered service connections spanning 9 pressure zones over a 26 square mile service
area. CPAU utilizes an asset management database in conjunction with hydraulic modeling
software to prioritize capital improvements. Mains are selected by researching the
maintenance history of the system and identifying those that are undersized, corroded, and
subject to recurring breaks. CPAU uses a scoring system based on criticality in order to
prioritize which mains to replace first, and coordinates with the Public Works street
maintenance program to avoid cutting into newly repaved streets. CPAU replaces
approximately 3 miles of main per year, or 1.3% of the system.
Costs for the water main replacement program are increasing for a variety of reasons:
Fire Code regulations now mandate fire sprinklers for new residential units. To
accommodate increased fire flows, new main replacement projects require larger
diameter pipe.
CPAU has switched to high-density polyethylene (HDPE) for its mains. Installation costs
for this material are slightly higher, though lifecycle costs are lower, and the material
performs better. Joints in distribution mains are the most likely place for failure, and
sections of HDPE pipe can be fused together rather than connected with fittings. In the
long run, this will reduce losses and maintenance costs.
To take full advantage of HDPE’s fusibility, CPAU is now replacing the services along
with the water mains with new HDPE services. In the past, the existing services were
reconnected, regardless of the material. This new practice costs more in the short run,
but will provide long term benefits.
Lastly, costs have escalated after the recession.
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These factors have created some uncertainty in future water main replacement costs. If the
cost of water main replacement continues at its current levels, water main replacement
budgets will need to be increased by $1M to $2M per year to keep up the current pace of main
replacement. However, CPAU is nearing the end of a long term water main replacement
program initiated in 1993 to replace the oldest and most degraded parts of the system. Roughly
25% of the system has been replaced, and the rate of water leaks has decreased 50%. CPAU
initiated a master planning process in FY 2015 to evaluate the current state of the distribution
system and determine the necessary rate of main replacement in future years, and it was
completed in 2016. Currently the utility replaces about 1.3% of the system each year, which is
an 80-year replacement cycle.
Increases in CIP cost are a partial reason for the projected two year delay in projects. The most
recent project, when put out for bid, resulted in very few contractors competing, and project
bids were larger than budgeted. Staff will redesign this and future projects into smaller
segments to keep budgets lower, while not compromising on overall system integrity. The
other reason for delay is the University Avenue Business District project, and getting
coordination amongst all departments is taking more time than expected. Finally, there has
been an ongoing issue with keeping and maintaining qualified staff to design and work on
projects.
One project not included in this forecast is the seismic strengthening of a large water
transmission line in the foothills. Staff has engaged a consultant to investigate alternatives for
this project. The consultant is analyzing an alternative that involves installing a valve and hose
system that could be used to bypass breaks in the line while they are repaired after an
earthquake. This is a relatively low cost alternative that would not substantially affect the
financial forecast. The study is not finalized yet, however, and if it is determined that the entire
pipeline needs to be replaced, it could cost between $15 million and $20 million, which would
likely require bond financing and would substantially affect the financial forecast.
Ongoing Projects and Customer Connections are projected to cost approximately $2.5 million in
FY 2018 and increase by 3.5% per year through the end of the forecast period. Actual expenses
for these projects fluctuate annually depending on how many defective meters are discovered
and replaced during routine maintenance, as well as how much development and
redevelopment is going on that prompts the replacement or upgrade of water services. It is
worth noting that property owners pay a fee for water service replacement or expansion during
redevelopment, so when the number of projects go up (meaning higher costs for this activity),
so does fee revenue.
Aside from customer connections, the CIP plan for FY 2017 to FY 2022 is funded by utility rates
and capacity fees. The details of the plan are shown in Appendix B: Water Utility Capital
Improvement Program (CIP) Detail.
SECTION 6D: DEBT SERVICE
The Water Utility’s annual debt service is roughly $3.2 million per year. This is related to two
bond issuances, one requiring payments through 2026, the other through 2035. CPAU is in
compliance with all covenants on both bonds.
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The first bond is the 2009 Water Revenue Bond, Series A, issued for $35 million to finance
construction of the Emergency Water Supply and Storage project (the El Camino Reservoir, new
wells, rehabilitation of existing wells and tanks, etc.) and to be retired by 2035. As part of the
‘Build America’ bond program, there is an interest payment subsidy from the Federal
Government of 35%. There is always the possibility that the federal government will choose to
stop payment on this subsidy. The automatic federal spending cuts under the Budget Control
Act (BCA) of 2011 have already reduced the subsidy by $50,000 per year, and if planned cuts
through 2021 proceed without amendment, staff estimates that the subsidy would be reduced
by over $200,000 per year by 2021. The Bipartisan Budget Act of 2013, which relieved some of
the discretionary spending cuts in the 2011 BCA, did not affect automatic cuts to the subsidy,
and actually extended the automatic cuts through 2023.
The second bond issuance is the 2011 Utility Revenue Refunding Bond, Series A, which is to be
retired in 2026. This $17.2 million issuance refinanced an earlier Water and Gas Utility bond
issuance, the 2002 Utility Revenue Bonds, Series A, which was issued to finance various capital
improvements for both systems. The Water Utility’s share of the issuance was roughly $7.8
million.
The cost of debt service for the Water Utility’s share of these bond issuances for the financial
forecast period is shown in Table 15:
Table 15: Water Utility Debt Service ($000)
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
2009 Water Revenue Bonds,
Series A (net of grants) 2,012 2,031 2,046 2,064 2,079 2,101 2,151 2,151
2011 Utility Revenue Bonds,
Series A 657 656 654 656 657 657 657 658
Both the 2009 and 2011 Bonds include the following covenants: 1) net revenues plus Available
Reserves shall at least equal 125% of the maximum annual debt service, and 2) Available
Reserves shall be at least 5 times the maximum annual debt service. Note that “Available
Reserves,” as defined for both bonds, include the reserves for the Gas and Electric systems, not
just the Water system. This Financial Plan maintains compliance with these covenants
throughout the forecast period, as shown in Appendix A: Water Utility Financial Forecast Detail.
The net revenues (but not the reserves) of the Water Utility are also pledged for one other
bond as shown in Table 16 below, even though the Water Utility is not responsible for the debt
service payments. The Water Utility’s reserves or net revenues would only be called upon if the
responsible utilities are unable to make their debt service payments. Staff does not currently
foresee this occurring. Requirements of the California Constitution require that any amounts
advanced from one utility to pay debt service for another utility must be repaid by the
borrowing fund.
Table 16: Other Issuances Secured by the Water Utility’s Revenues or Reserves
Bond Issuance Responsible
Utilities
Annual Debt
Service ($000)
Secured by Water Utility’s:
Net Revenues Reserves
1995 Series A Utility
Revenue Bonds Storm Drain $680 Yes No
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SECTION 6E: OTHER REVENUES
The Water Utility receives most of its revenues from sales of water. The next largest source is
connection and capacity fees, which in FY 2016 represented 51% of revenue from sources other
than water sales. The remainder consisted of a variety of miscellaneous charges, transfers and
interest income.
Revenues from connection and capacity fees have more than doubled since FY 2009.
Connection fees are charged to new developments that need new or replacement service
connections, while capacity fees are charged to development that put additional demands on
the water distribution system. Revenue from these sources decreased slightly during the
recession, but has increased substantially since then. Staff is forecasting lower revenue from
these sources in subsequent years, but has increased connection fees that are expected to
offset these reductions to some extent.
Other revenue sources are projected to stay stable through the forecast period, though interest
income always fluctuates depending on changes in interest rates. Some uncertainty also exists
related to the Federal government’s commitment to continuing to pay the interest subsidy on
the Build America Bonds.
SECTION 6F: SALES REVENUES
Sales revenue projections are based on the load forecast in Section 5A: Load Forecast and the
projected rate changes shown in Figure 5. Except where stated otherwise, these load forecasts
are based on normal precipitation. Precipitation can vary substantially, however, even in non-
drought years, and this can affect revenues substantially. In dry years customers use more
water, increasing revenues, and in wet years they use less. These variations happen in the
winter, since summers have virtually no local precipitation regardless of whether it is a dry or
wet year. The variations are most likely related to winter irrigation demand.
SECTION 7: COMMUNICATIONS PLAN
In FY 2018, communications will continue to focus on water utility rate increases, including the
reasons why and how rates may change contingent upon continued drought conditions. The
City will also communicate how infrastructure costs and rising rates from our wholesale water
supplier, the San Francisco Public Utilities Commission, increases CPAU costs and must be
recovered through rate increases. Rates communications will include a substantial update to
information on a webpage dedicated to Utilities rates, “breaking news” on the Utility home
webpage, discussion in the Proposition 218 rate adjustment notice, bill inserts, print ads, videos
for web and television, social media posts and frequent educational updates to internal and
external stakeholders (customer service, marketing, City Manager’s Office, UAC, City Council,
business and residential customers). Other communications vehicles will include financial plans,
presentations to UAC, Finance Committee, City Council and any media coverage as a result of
the rate increases. CPAU will continue its outreach about drought conditions and importance of
water use efficiency, tying in the message that although rates are increasing, efficient usage
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should mean that a customer should not see a significant increase in water utility costs on their
bills.
Water conservation outreach will include bill inserts, web updates, email newsletters, videos
for the web and television, presentations to customer groups and the use of social media. To
keep customers apprised of the status and accomplishments of CIP projects, a network of
project web pages are maintained. Traffic is driven to the website via ads in publications,
newspaper inserts, and through the comprehensive portfolio of outreach strategies as outlined
above. Safety topics are also emphasized year-round. For all utility outreach, while print
materials and website pages still feature prominently, CPAU is placing more emphasis on digital
advertising content, direct mail, community safety/emergency preparation events and
presentations.
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APPENDICES
Appendix A: Water Utility Financial Forecast Detail
Appendix B: Water Utility Capital Improvement Program (CIP) Detail
Appendix C: Water Utility Reserves Management Practices
Appendix D: Description of Water Utility Operational Activities
Appendix E: Sample of Water Utility Outreach Communications
APPENDIX A: WATER UTILITY FINANCIAL FORECAST DETAIL
1 FISCAL YEAR FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
2
3 WATER SUPPLY
4 Purchases 5,538,305 5,532,947 5,507,153 4,671,433 4,127,085 4,164,524 4,388,840 4,618,793 4,548,794 4,477,618 4,407,222 4,342,411 4,307,346 4,274,401 4,242,367 4,274,975
5 Sales 5,062,873 5,097,392 5,047,148 4,433,016 3,858,825 3,852,185 4,037,731 4,318,572 4,253,123 4,186,573 4,120,753 4,060,155 4,027,369 3,996,565 3,966,613 3,997,101
6
7 BILL AND RATE CHANGES
8 Variable Charge (Supply)38%11%-16%25%22%9%7%2%2%2%2%2%2%2%2%2%
9 Variable Charge (Distribution)-12%17%30%-16%10%5%0%9%9%9%9%8%2%1%1%0%
10 Service Charge (Distribution)72%75%9%0%-10%3%0%7%8%8%8%7%1%1%1%1%
11 Change in System Average Rate 12%22%8%0%11%7%3%6%6%6%6%6%2%2%2%1%
12 Change in Average Residential Bill 12%21%7%-1%17%4%-3%5%5%5%5%4%1%1%1%1%
13
14 STARTING RESERVES
15 Reappropriations (Non-CIP)20,000 - - - - - - - - - - - - - - -
16 Commitments (Non-CIP)765,000 714,000 2,000 347,000 347,000 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273
17 Restricted for Debt Service 3,348,000 3,225,000 3,225,000 3,331,000 3,316,000 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194
18 Emergency Plant Replacement 1,000,000 1,000,000 1,000,000 1,000,000 - - - - - - - - - - - -
19 Capital Reserve - - - - 4,000,000 2,726,096 2,726,096 2,726,096 2,726,096 - - - - - - -
20 Rate Stabilization Reserve 10,639,000 7,996,000 17,272,000 20,133,000 6,567,000 1,877,437 - - - - - - - - - -
21 Operations Reserve - - - - 11,663,836 14,606,828 12,734,948 13,741,252 11,719,450 11,584,505 10,055,718 10,036,283 11,372,030 12,259,805 12,625,012 12,452,508
22 Unassigned - - - - - - 4,645,111 2,536,339 - - - - - - - -
23 TOTAL STARTING RESERVES 15,772,000 12,935,000 21,499,000 24,811,000 25,893,836 22,686,828 23,582,622 22,480,154 17,922,013 15,060,972 13,532,185 13,512,750 14,848,497 15,736,272 16,101,479 15,928,975
24
25 REVENUES
26 Net Sales 30,673,882 36,647,924 39,029,262 33,654,549 36,136,644 38,472,811 38,957,254 43,554,523 45,527,612 47,631,527 49,893,912 52,045,952 52,530,594 52,972,178 53,425,127 54,321,702
27 Other Revenues and Transfers In 5,892,133 6,811,461 4,053,920 7,504,848 3,258,936 3,376,354 3,433,864 3,492,074 3,550,893 3,611,902 3,677,134 3,743,736 3,831,586 3,921,772 4,014,356 4,109,403
28 TOTAL REVENUES 36,566,015 43,459,385 43,083,182 41,159,397 39,395,579 41,849,165 42,391,118 47,046,597 49,078,505 51,243,429 53,571,045 55,789,688 56,362,180 56,893,950 57,439,483 58,431,104
29
30 EXPENSES
31 Water Purchases 14,889,399 16,605,351 15,705,288 15,669,935 17,626,020 19,242,650 21,347,331 22,755,908 22,849,411 22,932,958 23,015,268 23,119,511 23,365,972 23,624,549 23,889,660 24,494,388
32 Operating Expenses
33 Administration
34 Allocated Charges 2,003,116 2,422,880 2,366,077 2,342,985 2,953,291 2,278,910 2,336,257 2,395,035 2,455,296 2,516,847 2,579,804 2,644,346 2,710,515 2,778,341 2,847,864 2,919,126
35 Rent 2,156,887 1,911,963 2,192,454 2,249,457 1,803,087 2,876,500 2,962,795 3,051,679 3,143,229 3,237,526 3,334,652 3,434,691 3,537,732 3,643,864 3,753,180 3,865,775
36 Debt Service 3,385,986 3,219,165 3,220,208 3,218,869 3,222,606 3,219,316 3,222,669 3,220,858 3,220,638 3,222,843 3,223,563 3,224,553 3,224,553 3,224,553 3,224,553 3,224,553
37 Transfers and Other Adjustments 301,963 2,241,793 335,808 63,612 (74,782) 383,630 391,302 399,129 407,111 415,253 423,558 432,030 432,030 432,030 432,030 432,030
38 Subtotal, Administration 7,847,952 9,795,801 8,114,546 7,874,923 7,904,202 8,758,356 8,913,023 9,066,700 9,226,274 9,392,469 9,561,576 9,735,619 9,904,830 10,078,787 10,257,626 10,441,484
39 Resource Management 552,972 557,910 570,040 488,331 592,744 955,380 987,746 1,020,939 1,055,358 1,085,650 1,113,619 1,142,552 1,172,547 1,203,329 1,234,919 1,267,339
40 Operations and Mtc 4,900,606 4,944,064 4,986,274 5,283,426 5,038,570 5,835,064 6,037,842 6,245,861 6,461,794 6,649,627 6,821,437 6,999,319 7,183,933 7,373,416 7,567,897 7,767,508
41 Engineering (Operating)301,278 338,659 381,502 358,128 282,472 372,459 385,617 399,118 413,142 425,250 436,259 447,663 459,507 471,664 484,143 496,952
42 Customer Service 1,544,608 1,584,759 1,677,926 1,821,447 2,076,559 2,106,862 2,181,487 2,258,058 2,337,605 2,406,207 2,468,516 2,533,069 2,600,120 2,668,946 2,739,594 2,812,112
43 Allowance for Unspent Budget - - - - - (427,532) (441,610) (456,050) (471,013) (484,354) (496,795) (509,652) (522,968) (536,631) (550,651) (565,038)
44 Subtotal, Operating Expenses 15,147,415 17,221,192 15,730,288 15,826,254 15,894,546 17,600,589 18,064,105 18,534,625 19,023,161 19,474,849 19,904,612 20,348,569 20,797,968 21,259,512 21,733,529 22,220,358
45 Capital Program Contribution 9,366,201 1,068,841 8,335,605 8,580,372 9,082,021 4,110,131 4,082,150 10,314,204 10,066,974 10,364,408 10,670,600 10,985,862 11,310,465 11,644,682 11,988,797 12,343,106
46 TOTAL EXPENSES 39,403,015 34,895,385 39,771,182 40,076,561 42,602,588 40,953,371 43,493,586 51,604,738 51,939,546 52,772,216 53,590,481 54,453,941 55,474,405 56,528,743 57,611,987 59,057,851
47 9.04 11.04
48 ENDING RESERVES
49 Reappropriations (Non-CIP)- - - - - - - - - - - - - - - -
50 Commitments (Non-CIP)714,000 2,000 347,000 347,000 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273 177,273
51 Restricted for Debt Service 3,225,000 3,225,000 3,331,000 3,316,000 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194 3,299,194
52 Emergency Plant Replacement 1,000,000 1,000,000 1,000,000 - - - - - - - - - - - - -
53 Capital Reserve - - - 4,000,000 2,726,096 2,726,096 2,726,096 2,726,096 - - - - - - - -
54 Rate Stabilization Reserve 7,996,000 17,272,000 20,133,000 6,567,000 1,877,437 - - - - - - - - - - -
55 Operations Reserve - - - 11,663,836 14,606,828 12,734,948 13,741,252 11,719,450 11,584,505 10,055,718 10,036,283 11,372,030 12,259,805 12,625,012 12,452,508 11,825,761
56 Unassigned - - - - - 4,645,111 2,536,339 - - - - - - - - -
57 TOTAL ENDING RESERVES 12,935,000 21,499,000 24,811,000 25,893,836 22,686,828 23,582,622 22,480,154 17,922,013 15,060,972 13,532,185 13,512,750 14,848,497 15,736,272 16,101,479 15,928,975 15,302,228
58
59 OPERATIONS RESERVE
60 Min (60 days of non-capital expenses)- - - 5,230,611 5,447,741 6,320,551 6,805,571 7,121,003 7,223,351 7,318,139 7,409,255 7,506,449 7,620,837 7,739,213 7,860,713 8,040,147
61 Target (90 days of non-capital expenses)- - - 9,395,240 8,849,765 9,527,750 10,273,411 10,734,869 10,891,793 11,037,461 11,177,725 11,327,238 11,511,321 11,701,700 11,897,086 12,179,700
62 Max (120 days of non-capital expenses)- - - 13,559,870 12,251,790 12,734,948 13,741,252 14,348,735 14,560,236 14,756,784 14,946,195 15,148,027 15,401,806 15,664,187 15,933,458 16,319,253
63 Risk Assessment Value 2,481,768 2,677,436 2,229,786 2,210,426 2,990,773 3,122,798 3,321,829 3,535,280 3,739,581 3,798,452 3,858,547 3,919,900 3,982,541
64
65 DEBT SERVICE COVERAGE RATIO
66 Net Revenues (125% of Debt Service)787%951%876%878%940%1044%1123%1182%1200%1216%1231%1248%1270%1292%1315%1349%
67 Available Reserves (5x Debt Service)*2.7 5.7 6.6 6.9 6.0 6.2 5.9 4.5 3.6 3.1 3.1 3.5 3.8 3.9 3.9 3.7
*For the purposes of debt covenants, the unrestricted reserves of other utilities may be counted toward the available reserves for meeting this measure. A ratio below 5x means that this utility is relying on the reserves of other utilities to meet its debt covenants.
Appendix A (continued)
1 FISCAL YEAR FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
2
3 REVENUES
4 Net Sales 84%84%91%82%92%92%92%93%93%93%93%93%93%93%93%93%
5 Other Revenues and Transfers In 16%16%9%18%8%8%8%7%7%7%7%7%7%7%7%7%
6 TOTAL REVENUES 100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%
7
8 EXPENSES
9 Water Purchases 38%48%39%39%41%47%49%44%44%43%43%42%42%42%41%41%
10 Operating Expenses
11 Administration
12 Allocated Charges 5%7%6%6%7%6%5%5%5%5%5%5%5%5%5%5%
13 Rent 5%5%6%6%4%7%7%6%6%6%6%6%6%6%7%7%
14 Debt Service 9%9%8%8%8%8%7%6%6%6%6%6%6%6%6%5%
15 Transfers and Other Adjustments 1%6%1%0%0%1%1%1%1%1%1%1%1%1%1%1%
16 Subtotal, Administration 20%28%20%20%19%21%20%18%18%18%18%18%18%18%18%18%
17 Resource Management 1%2%1%1%1%2%2%2%2%2%2%2%2%2%2%2%
18 Operations and Mtc 12%14%13%13%12%14%14%12%12%13%13%13%13%13%13%13%
19 Engineering (Operating)1%1%1%1%1%1%1%1%1%1%1%1%1%1%1%1%
20 Customer Service 4%5%4%5%5%5%5%4%5%5%5%5%5%5%5%5%
21 Allowance for Unspent Budget 0%0%0%0%0%-1%-1%-1%-1%-1%-1%-1%-1%-1%-1%-1%
22 Subtotal, Operating Expenses 38%49%40%39%37%43%42%36%37%37%37%37%37%38%38%38%
23 Capital Program Contribution 24%3%21%21%21%10%9%20%19%20%20%20%20%21%21%21%
24 TOTAL EXPENSES 100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%
25
26 RISK ASSESSMENT DETAIL
27 Distribution Revenue Variance 1,623,731 1,769,234 1,818,772 1,802,211 1,959,352 2,116,101 2,285,389 2,468,220 2,640,995 2,667,405 2,694,079 2,721,020 2,748,230
28 10% CIP Program Contingency 858,037 908,202 411,013 408,215 1,031,420 1,006,697 1,036,441 1,067,060 1,098,586 1,131,047 1,164,468 1,198,880 1,234,311
29 Total Risk Asssessment Value 2,481,768 2,677,436 2,229,786 2,210,426 2,990,773 3,122,798 3,321,829 3,535,280 3,739,581 3,798,452 3,858,547 3,919,900 3,982,541
30 Projected Operations Reserve 11,663,836 14,606,828 12,734,948 13,741,252 11,719,450 11,584,505 10,055,718 10,036,283 11,372,030 12,259,805 12,625,012 12,452,508 11,825,761
31 Operations Reserve, % of Risk Value 470%546%571%622%392%371%303%284%304%323%327%318%297%
32
33 OPERATIONS RESERVE
34 Min (60 days of non-capital expenses)- - - 5,230,611 5,447,741 6,320,551 6,805,571 7,121,003 7,223,351 7,318,139 7,409,255 7,506,449 7,620,837 7,739,213 7,860,713 8,040,147
35 Target (90 days of non-capital expenses)- - - 9,395,240 8,849,765 9,527,750 10,273,411 10,734,869 10,891,793 11,037,461 11,177,725 11,327,238 11,511,321 11,701,700 11,897,086 12,179,700
36 Max (120 days of non-capital expenses)- - - 13,559,870 12,251,790 12,734,948 13,741,252 14,348,735 14,560,236 14,756,784 14,946,195 15,148,027 15,401,806 15,664,187 15,933,458 16,319,253
37 Risk Assessment Value 2,481,768 2,677,436 2,229,786 2,210,426 2,990,773 3,122,798 3,321,829 3,535,280 3,739,581 3,798,452 3,858,547 3,919,900 3,982,541
38
39 DEBT SERVICE COVERAGE RATIO
40 Net Revenues (125% of Debt Service)787%951%876%878%940%1044%1123%1182%1200%1216%1231%1248%1270%1292%1315%1349%
41 Available Reserves (5x Debt Service)*2.7 5.7 6.6 6.9 6.0 6.2 5.9 4.5 3.6 3.1 3.1 3.5 3.8 3.9 3.9 3.7
42 *For the purposes of debt covenants, the unrestricted reserves of other utilities may be counted toward the available reserves for meeting this measure. A ratio below 5x means that this utility is relying on the reserves of other utilities to meet its debt covenants.
WATER UTILITY FINANCIAL PLAN
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APPENDIX B: WATER UTILITY CAPITAL IMPROVEMENT PROGRAM (CIP) DETAIL
Project #Project Name
Reappropriated / Carried
Forward from Previous
Years
Current Year
Funding
Proposed Budget
Amendments
Spending, Current
Year
Remaining in CIP
Reserve Fund Commitments FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
ONE TIME PROJECTS
WS-07000 Regulation Station Imp.1,092,430 - (135,541) (136,529) 820,360 624,149 - - - - -
WS-07001 Water Recycling Facilities 193,358 200,000 2,291 - 395,649 - - - - - -
WS-08001 Water Reservoir Coating 1,919,605 - (304,403) (823,254) 791,948 1,088,707 - - - - -
WS-09000 Seismic Water System 4,452,355 - (317,178) (431,985) 3,703,192 2,213,969 - - - - -
WS-13003 GPS Equipment Upgrade - - - - - - - - - - -
WS-13004 Asset Mgmt. Mobile Sys.- - - - - - - - - - -
WS-13006 Meter Shop Renovations - - - - - - - - - - -
WS-15004 Water System Master Plan 202,469 - (681) (358) 201,430 46,592 - - - - -
WS-08002 Emergency Water Supply 601,701 - - - 601,701 330,493 - - - - -
Subtotal, One-time Projects 8,461,919 200,000 (755,513) (1,392,126) 6,514,280 4,303,910 - - - - -
WATER MAIN REPLACEMENT PROGRAM
WS-20000 WMR - Project 32 - - - - - - - - - - -
WS-11000 WMR-Project 25 1,165,085 - (725,386) (270,754) 168,945 - - - - - -
WS-12001 WMR- Project 26 5,904,489 - (18,731) (51,224) 5,834,534 1 - - - - -
WS-13001 WMR - Project 27 568,065 5,680,651 (6,206,216) (42,500) - - - 6,216,841 - - -
WS-14001 WMR - Project 28 - 585,107 (585,107) - - - - 585,107 5,851,070 - -
WS-15002 WMR - Project 29 - - - - - - - - 602,660 6,026,602 -
WS-16001 WMR - Project 30 - - - - - - - - - 620,740 6,207,400
WS-19001 WMR - Project 31 - - - - - - - - - - 639,362
Subtotal, Water Main Replacement Prog.7,637,639 6,265,758 (7,535,440) (364,478) 6,003,479 1 - 6,801,948 6,453,730 6,647,342 6,846,762
WATER UTILITY FINANCIAL PLAN
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Appendix B: Water Utility Capital Improvement Program (CIP) Detail (Continued)
Project #Project Name
Reappropriated / Carried
Forward from Previous
Years
Current Year
Funding
Budget
Amendments
Spending, Current
Year
Remaining in CIP
Reserve Fund Commitments FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
ONGOING PROJECTS
WS-80014 Services/Hydrants - 400,000 - (171,657) 228,343 50,533 412,000 424,360 437,091 450,204 463,710
WS-80015 Water Meters 252,092 565,000 - (26,213) 790,879 - 565,000 500,000 515,000 530,450 546,364
WS-02014 W-G-W Utility GIS Data 82,817 366,025 (0) (87,607) 361,235 295,211 402,628 442,890 456,177 469,862 483,958
WS-13002 Equipment/Tools 20,685 50,000 - - 70,685 - - - - - -
WS-11003 Dist. Sys. Improvements 131,508 739,000 (602) (5,000) 864,906 163,985 247,000 254,000 261,620 269,469 277,553
WS-11004 Supply Sys. Improvements 95,884 239,000 (190) (73,156) 261,538 8,136 247,000 254,000 261,620 269,469 277,553
Subtotal, Ongoing Projects 582,986 2,359,025 (792) (363,633) 2,577,586 517,865 1,873,628 1,875,250 1,931,508 1,989,454 2,049,138
CUSTOMER CONNECTIONS (FEE FUNDED)
WS-80013 Water System Extensions 18,736 690,000 - (320,117) 388,619 112,897 710,700 732,021 753,981 776,601 799,899
Subtotal, Customer Connections 18,736 690,000 - (320,117) 388,619 112,897 710,700 732,021 753,981 776,601 799,899
GRAND TOTAL 16,701,281 9,514,783 (8,291,745) (2,440,354)15,483,964 4,934,673 2,584,328 9,409,219 9,139,219 9,413,397 9,695,799
Funding Sources
Connection/Capacity Fees 690,000 - 902,280 929,348 957,228 985,946 1,015,524
Other Utility Funds (Asset Mgmt, GIS Systems)244,109 - 268,418 295,260 304,118 313,242 322,640
Utility Rates 9,514,783 (8,291,745) 1,413,630 8,184,611 7,877,873 8,114,209 8,357,635
CIP-RELATED RESERVES DETAIL
6/30/2016
(Actual)
6/30/2017
(Unaudited)
Reappropriations (excl. Bond Funded)10,529,905 10,549,291
Commitments (excl. Bond Funded)6,171,376 4,934,673
WATER UTILITY FINANCIAL PLAN
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APPENDIX C: WATER UTILITY RESERVES MANAGEMENT PRACTICES
The following reserves management practices shall be used when developing the Water Utility
Financial Plan:
Section 1. Definitions
a) “Financial Planning Period” – The Financial Planning Period is the range of future fiscal
years covered by the Financial Plan. For example, for the Water Utility Financial Plan
delivered in conjunction with the FY 2015 budget, FY 2015 to FY 2021 is the Financial
Planning Period.
b) “Fund Balance” – As used in these Reserves Management Practices, Fund Balance refers
to the Utility’s Unrestricted Net Assets.
c) “Net Assets” - The Government Accounting Standards Board defines a Utility’s Net
Assets as the difference between its assets and liabilities.
d) “Unrestricted Net Assets” - The portion of the Utility’s Net Assets not invested in capital
assets (net of related debt) or restricted for debt service or other restricted purposes.
Section 2. Reserves
The Water Utility’s Fund Balance is reserved for the following purposes:
a) For existing contracts, as described in Section 3 (Reserve for Commitments)
b) For operating and capital budgets re-appropriated from previous years, as described in
Section 4 (Reserve for Re-appropriations)
c) For cash flow management and contingencies related to the Water Utility’s Capital
Improvement Program (CIP), as described in Section 5 (CIP Reserve)
d) For rate stabilization, as described in Section 6 (Rate Stabilization Reserve)
e) For operating contingencies, as described in Section 7 (Operations Reserve)
f) Any funds not included in the other reserves will be considered Unassigned Reserves
and shall be returned to ratepayers or assigned a specific purpose as described in
Section 8 (Unassigned Reserves).
Section 3. Reserve for Commitments
At the end of each fiscal year the Reserve for Commitments will be set to an amount equal
to the total remaining spending authority for all contracts in force for the Water Utility at
that time.
Section 4. Reserve for Re-appropriations
At the end of each fiscal year the Reserve for Re-appropriations will be set to an amount
equal to the amount of all remaining capital and non-capital budgets, if any, that will be re-
appropriated to the following fiscal year in accordance with Palo Alto Municipal Code
Section 2.28.090.
WATER UTILITY FINANCIAL PLAN
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Section 5. CIP Reserve
The CIP Reserve is used to manage cash flow for capital projects and acts as a reserve for
capital contingencies. Staff will manage the CIP Reserve according to the following
practices:
a) The following guideline levels are set forth for the CIP Reserve. These guideline levels
are calculated for each fiscal year of the Financial Planning Period based on the levels of
CIP expense budgeted for that year.
Minimum Level 12 months of budgeted CIP expense
Maximum Level 24 months of budgeted CIP expense
b) Changes in Reserves: Staff is authorized to transfer funds between the CIP Reserve and
the Reserve for Commitments when funds are added or removed from to that reserve
as a result of a change in contractual commitments related to CIP projects. Any other
additions to or withdrawals from the CIP reserve require Council action.
c) Minimum Level:
i) Funds held in the Reserve for Commitments may be counted as part of the CIP
Reserve for the purpose of determining compliance with the CIP Reserve minimum
guideline level.
ii) If, at the end of any fiscal year, the minimum guideline is not met, staff shall present
a plan to the City Council to replenish the reserve. The plan shall be delivered by the
end of the following fiscal year, and shall, at a minimum, result in the reserve
reaching its minimum level by the end of the next fiscal year. For example, if the CIP
Reserve is below its minimum level at the end of FY 2017, staff must present a plan
by June 30, 2018 to return the reserve to its minimum level by June 30, 2019. In
addition, staff may present, and the Council may adopt, an alternative plan that
takes longer than one year to replenish the reserve, or that does so in a shorter
period of time.
d) Maximum Level: If, at any time, the CIP Reserve reaches its maximum level, no funds
may be added to this reserve. If there are funds in this reserve in excess of the
maximum level staff must propose to transfer these funds to another reserve or return
them to ratepayers in the next Financial Plan. Staff may also seek City Council to
approve holding funds in this reserve in excess of the maximum level if they are held for
a specific future purpose related to the CIP.
Section 6. Rate Stabilization Reserve
Funds may be added to the Rate Stabilization Reserve by action of the City Council and
held to manage the trajectory of future year rate increases. Withdrawal of funds from
the Rate Stabilization Reserve requires Council action. If there are funds in the Rate
Stabilization Reserve at the end of any fiscal year, any subsequent Water Utility
Financial Plan must result in the withdrawal of all funds from this Reserve by the end of
the next Financial Planning Period.
WATER UTILITY FINANCIAL PLAN
J u n e 1 6 , 2 0 1 4 35 | P a g e
Section 7. Operations Reserve
The Operations Reserve is used to manage normal variations in costs and as a reserve for
contingencies. Any portion of the Water Utility’s Fund Balance not included in the reserves
described in Section 3-Section 6 above will be included in the Operations Reserve unless this
reserve has reached its maximum level as set forth in Section 7(d) below. Staff will manage
the Operations Reserve according to the following practices:
a) The following guideline levels are set forth for the Operations Reserve. These guideline
levels are calculated for each fiscal year of the Financial Planning Period based on the
levels of Operations and Maintenance (O&M) and commodity expense forecasted for
that year in the Financial Plan.
Minimum Level 60 days of O&M and commodity expense
Target Level 90 days of O&M and commodity expense
Maximum Level 120 days of O&M and commodity expense
b) Minimum Level: If, at the end of any fiscal year, the funds remaining in the Operations
Reserve are lower than the minimum level set forth above, staff shall present a plan to
the City Council to replenish the reserve. The plan shall be delivered within six months
of the end of the fiscal year, and shall, at a minimum, result in the reserve reaching its
minimum level by the end of the following fiscal year. For example, if the Operations
Reserve is below its minimum level at the end of FY 2014, staff must present a plan by
December 31, 2014 to return the reserve to its minimum level by June 30, 2015. In
addition, staff may present, and the Council may adopt, an alternative plan that takes
longer than one year to replenish the reserve.
c) Target Level: If, at the end of any fiscal year, the Operations Reserve is higher or lower
than the target level, any Financial Plan created for the Water Utility shall be designed
to return the Operations Reserve to its target level within four years.
d) Maximum Level: If, at any time, the Operations Reserve reaches its maximum level, no
funds may be added to this reserve. Any further increase in the Water Utility’s Fund
Balance shall be automatically included in the Unassigned Reserve described in Section
8, below.
Section 8. Unassigned Reserve
If the Operations Reserve reaches its maximum level, any further additions to the Water
Utility’s Fund Balance will be held in the Unassigned Reserve. If there are any funds in the
Unassigned Reserve at the end of any fiscal year, the next Financial Plan presented to the
City Council must include a plan to assign them to a specific purpose or return them to the
Water Utility ratepayers by the end of the first fiscal year of the next Financial Planning
Period. For example, if there were funds in the Unassigned Reserves at the end of FY 2015,
and the next Financial Planning Period is FY 2016 through FY 2021, the Financial Plan shall
include a plan to return or assign any funds in the Unassigned Reserve by the end of
FY 2016. Staff may present an alternative plan that retains these funds or returns them over
a longer period of time.
WATER UTILITY FINANCIAL PLAN
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APPENDIX D: DESCRIPTION OF WATER UTILITY OPERATIONAL ACTIVITIES
This appendix describes the activities associated with the various operational activities referred
to in Section 6B: Operations of this Financial Plan.
Administration: Accounting, purchasing, legal, and other administrative functions provided by
the City’s General Fund staff, as well as shared communications services, CPAU administrative
overhead, and billing system maintenance costs. This category also includes Water Utility debt
service and rent paid to the General Fund for the land associated with reservoirs and various
other facilities.
Customer Service: This category includes the Water Utility’s share of the call center, meter
reading, collections, and billing support functions. Billing support encompasses staff time
associated with bill investigations and quality control on certain aspects of the billing process. It
does not include maintenance of the billing system itself, which is included in Administration.
This category also includes CPAU’s key account representatives, who work with large
commercial customers who have more complex requirements for their water services.
Engineering (Operating): The Water Utility’s engineers focus primarily on the CIP, but a small
portion of their time is spent assisting with distribution system maintenance.
Operations and Maintenance: This category includes the costs of a variety of distribution
system maintenance activities, including:
investigating reports of damaged mains or services and performing emergency repairs;
testing and operating valves;
monitoring water quality and reservoir levels;
monitoring the status of the different pressure zones;
flushing water at hydrants and other closed end points of the system;
building and replacing water services for new or redeveloped buildings; and
testing and replacing meters to ensure accurate sales metering.
This category also includes a variety of functions the utility shares with other City utilities,
including:
the Field Services team (which does field research of various customer service issues);
the Cathodic Protection team (which monitors and maintains the systems that prevent
corrosion in metal tanks and reservoirs); and
the General Services team (which manages and maintains equipment, paves and
restores streets after gas, water, or sewer main replacements, and provides welding
services)
Resource Management: This category includes water procurement, contract management,
water resource planning, interaction with BAWSCA, the SFPUC, and the SCVWD, and tracking of
legislation and regulation related to the water industry.
J u n e 1 6 , 2 0 1 4 37 | P a g e
APPENDIX E: SAMPLE OF WATER UTILITY OUTREACH COMMUNICATIONS
Not Yet Approved
170525 jb 019/EP/Planning/RPP 1
Resolution No. ___
Resolution of the Council of the City of Palo Alto Amending Resolution
9671 to Set and Update Future Permit Fees Using the Municipal Fee
Schedule
R E C I T A L S
A. On March 6, 2017, the Council adopted Resolution No. 9671 continuing the
Downtown Residential Preferential Parking District (RPP) Program.
B. Resolution No. 9671 set the initial prices of the various parking permits
offered for purchase by residents and employees participating in the Downtown RPP
Program.
C. The Council desires to amend Resolution No. 9671 to use the Municipal Fee
Schedule to set and update future permit fees annually.
NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES, as follows:
SECTION 1. Amendment. SECTION 6 of Resolution 9671 is hereby amended to
state: “The cost of Parking Permits shall be set by the Municipal Fee Schedule and
updated on an annual basis.”
SECTION 2. CEQA. The Council finds that the adoption of this resolution does
not constitute a project for the purposes of the California Environmental Quality Act,
and therefore, no environmental assessment is required.
SECTION 3. Effective Date. This resolution shall take effect immediately.
Attachment N
Not Yet Approved
170525 jb 019/EP/Planning/RPP 2
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ __________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
_______________________ ____________________
Senior Assistant City Attorney City Manager
_____________________
Director of Planning and Community
Environment
Page 1
Job
Code
FLSA Status Classifications Grade Codes Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate
Min Hourly
Rate
Mid-Point
Hourly Rate
Max Hourly
Rate
Mid-Point
Monthly
Salary
Mid-Point
Annual
Salary Min Hourly Rate Mid-Point Hourly Rate Max Hourly Rate
190 Non-Exempt Accountant 690P $32.89 $41.11 $49.34 $33.72 $42.14 $50.57 $7,304.27 $87,651.20 $34.56 $43.20 $51.84
76 Exempt Administrative Assistant 750P $28.37 $35.46 $42.56 $29.08 $36.35 $43.62 $6,300.67 $75,608.00 $29.81 $37.26 $44.72
115 Exempt Assistant Chief Building Official 405M $46.08 $57.60 $69.12 $47.24 $59.04 $70.85 $10,233.60 $122,803.20 $48.42 $60.52 $72.63
132 Exempt Assistant Chief of Police 100A $75.43 $94.28 $113.14 $77.32 $96.64 $115.97 $16,750.93 $201,011.20 $79.25 $99.06 $118.88
108 Exempt Assistant City Attorney 165A $63.94 $79.92 $95.91 $65.54 $81.92 $98.31 $14,199.47 $170,393.60 $67.18 $83.97 $100.77
109 Exempt Assistant City Clerk 630M $37.21 $46.51 $55.82 $38.15 $47.68 $57.22 $8,264.53 $99,174.40 $39.11 $48.88 $58.66
107 Exempt Assistant City Manager 20E $78.36 $97.94 $117.53 $80.32 $100.39 $120.47 $17,400.93 $208,811.20 $82.32 $102.90 $123.48
2026 Exempt Assistant City Manager / Utilities General Manager 10E $98.47 $123.08 $147.70 $100.93 $126.16 $151.40 $21,867.73 $262,412.80 $103.46 $129.32 $155.19
73 Exempt Assistant Director Administrative Services 120A $64.47 $80.58 $96.70 $66.08 $82.60 $99.12 $14,317.33 $171,808.00 $67.74 $84.67 $101.61
126 Exempt Assistant Director Community Services 150A $61.72 $77.14 $92.57 $63.26 $79.07 $94.89 $13,705.47 $164,465.60 $64.84 $81.05 $97.26
1007 Exempt Assistant Director Human Resources 155A $59.65 $74.56 $89.48 $61.15 $76.43 $91.72 $13,247.87 $158,974.40 $62.68 $78.35 $94.02
2001 Exempt Assistant Director Library Services 160A $59.03 $73.78 $88.54 $60.51 $75.63 $90.76 $13,109.20 $157,310.40 $62.03 $77.53 $93.04
10 Exempt Assistant Director Planning & Community Environment 130A $63.23 $79.03 $94.84 $64.81 $81.01 $97.22 $14,041.73 $168,500.80 $66.44 $83.04 $99.65
143 Exempt Assistant Director Public Works 140A $62.49 $78.11 $93.74 $64.06 $80.07 $96.09 $13,878.80 $166,545.60 $65.67 $82.08 $98.50
168 Exempt Assistant Fleet Manager 585M $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65
102 Exempt Assistant Manager WQCP 240D $50.52 $63.14 $75.77 $51.78 $64.72 $77.67 $11,218.13 $134,617.60 $53.08 $66.34 $79.61
30 Exempt Assistant to the City Manager 390M $48.82 $61.02 $73.23 $50.04 $62.55 $75.06 $10,842.00 $130,104.00 $51.30 $64.12 $76.95
118 Exempt Chief Building Official 290M $59.99 $74.98 $89.98 $61.49 $76.86 $92.24 $13,322.40 $159,868.80 $63.04 $78.79 $94.55
2008 Exempt Chief Communications Officer 135A $62.89 $78.61 $94.34 $64.47 $80.58 $96.70 $13,967.20 $167,606.40 $66.08 $82.60 $99.12
112 Exempt Chief Planning Official 220D $53.61 $67.01 $80.42 $54.96 $68.69 $82.43 $11,906.27 $142,875.20 $56.33 $70.41 $84.50
95 Exempt Chief Procurement Officer 235D $50.72 $63.39 $76.07 $51.99 $64.98 $77.98 $11,263.20 $135,158.40 $53.29 $66.61 $79.94
2010 Exempt Chief Sustainability Officer 435M $54.75 $68.43 $82.12 $56.12 $70.15 $84.18 $12,159.33 $145,912.00 $57.53 $71.91 $86.30
82 Exempt Chief Transportation Official 204D $56.40 $70.50 $84.60 $57.82 $72.27 $86.73 $12,526.80 $150,321.60 $59.27 $74.08 $88.90
96 Exempt Claims Investigator 660P $34.56 $43.19 $51.83 $35.42 $44.27 $53.13 $7,673.47 $92,081.60 $36.31 $45.38 $54.46
24 Exempt Communication Specialist 615M $37.43 $46.78 $56.14 $38.36 $47.95 $57.54 $8,311.33 $99,736.00 $39.32 $49.15 $58.98
89 Exempt Contracts Administrator 585P $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65
186 Non-Exempt Coordinator Library Circulation 675M $32.95 $41.18 $49.42 $33.77 $42.21 $50.66 $7,316.40 $87,796.80 $34.62 $43.27 $51.93
191 Exempt Deputy Chief/Fire Marshall 125A $63.71 $79.63 $95.56 $65.31 $81.63 $97.96 $14,149.20 $169,790.40 $66.95 $83.68 $100.42
9 Exempt Deputy City Attorney 480P $45.34 $56.67 $68.01 $46.48 $58.09 $69.71 $10,068.93 $120,827.20 $47.64 $59.55 $71.46
11 Exempt Senior Deputy City Attorney 375M $50.04 $62.55 $75.06 $51.30 $64.12 $76.95 $11,114.13 $133,369.60 $52.59 $65.73 $78.88
71 Exempt Deputy City Clerk 720M $29.80 $37.25 $44.70 $30.56 $38.19 $45.83 $6,619.60 $79,435.20 $31.32 $39.15 $46.98
55 Exempt Deputy City Manager 115A $65.31 $81.63 $97.96 $66.95 $83.68 $100.42 $14,504.53 $174,054.40 $68.63 $85.78 $102.94
195 Exempt Deputy Director Technical Services Division 200D $63.52 $79.39 $95.27 $65.11 $81.38 $97.66 $14,105.87 $169,270.40 $66.74 $83.42 $100.11
20 Exempt Deputy Fire Chief 110A $66.38 $82.97 $99.57 $68.04 $85.05 $102.06 $14,742.00 $176,904.00 $69.75 $87.18 $104.62
81 Exempt Director Administrative Services/Chief Financial Officer 50E $75.11 $93.88 $112.66 $76.99 $96.23 $115.48 $16,679.87 $200,158.40 $78.92 $98.64 $118.37
72 Exempt Director Community Services 45E $75.68 $94.60 $113.52 $77.58 $96.97 $116.37 $16,808.13 $201,697.60 $79.52 $99.40 $119.28
1012 Exempt Director Development Services 145A $66.45 $83.06 $99.68 $68.12 $85.14 $102.17 $14,757.60 $177,091.20 $69.82 $87.27 $104.73
133 Exempt Director Human Resources/Chief People Officer 55E $71.58 $89.47 $107.37 $73.37 $91.71 $110.06 $15,896.40 $190,756.80 $75.21 $94.01 $112.82
128 Exempt Director Information Technology/Chief Information Officer 25E $78.21 $97.76 $117.32 $80.17 $100.21 $120.26 $17,369.73 $208,436.80 $82.18 $102.72 $123.27
131 Exempt Director Libraries 60E $70.84 $88.54 $106.25 $72.61 $90.76 $108.92 $15,731.73 $188,780.80 $74.43 $93.03 $111.64
2028 Exempt Director of Emergency Medical Services 215D $55.58 $69.47 $83.37 $56.97 $71.21 $85.46 $12,343.07 $148,116.80 $58.40 $73.00 $87.60
City of Palo Alto
Management, Professional and Confidential Salary Schedule
Effective pay period including 7/1/2016 (2.5%
Increase)Effective pay period including 7/1/2017 (2.5% Increase)Effective pay period including 7/1/2018 (2.5%
Increase)
Attachment O, Exhibit 1
Page 2
Job
Code
FLSA Status Classifications Grade Codes Min Hourly
Rate
Mid-Point
Hourly Rate
Max Hourly
Rate
Min Hourly
Rate
Mid-Point
Hourly Rate
Max Hourly
Rate
Mid-Point
Monthly
Salary
Mid-Point
Annual
Salary Min Hourly
Rate
Mid-Point
Hourly Rate
Max Hourly
Rate
Effective pay period including 7/1/2016 (2.5% Increase)Effective pay period including 7/1/2017 (2.5% Increase)Effective pay period including 7/1/2018 (2.5% Increase)
2005 Exempt Director Office of Emergency Services 215D $55.58 $69.47 $83.37 $56.97 $71.21 $85.46 $12,343.07 $148,116.80 $58.40 $73.00 $87.60
49 Exempt Director Office of Management and Budget 120A $64.47 $80.58 $96.70 $66.08 $82.60 $99.12 $14,317.33 $171,808.00 $67.74 $84.67 $101.61
134 Exempt Director Planning & Community Environment 40E $75.86 $94.82 $113.79 $77.76 $97.20 $116.64 $16,848.00 $202,176.00 $79.71 $99.63 $119.56
135 Exempt Director Public Works/City Engineer 30E $76.84 $96.04 $115.25 $78.76 $98.45 $118.14 $17,064.67 $204,776.00 $80.74 $100.92 $121.11
121 Exempt Director Utilities 10E $98.47 $123.08 $147.70 $100.93 $126.16 $151.40 $21,867.73 $262,412.80 $103.46 $129.32 $155.19
2002 Exempt Division Head Library Services 260D $46.36 $57.95 $69.54 $47.52 $59.40 $71.28 $10,296.00 $123,552.00 $48.72 $60.89 $73.07
172 Exempt Division Manager Open Space, Parks & Golf 245D $49.84 $62.29 $74.75 $51.08 $63.85 $76.62 $11,067.33 $132,808.00 $52.36 $65.45 $78.54
1005 Exempt Executive Assistant to the City Manager 705M $32.09 $40.11 $48.14 $32.90 $41.12 $49.35 $7,127.47 $85,529.60 $33.72 $42.15 $50.58
139 Exempt Fire Chief 35E $76.41 $95.51 $114.62 $78.32 $97.90 $117.48 $16,969.33 $203,632.00 $80.28 $100.35 $120.42
163 Exempt Hearing Officer 480M $45.34 $56.67 $68.01 $46.48 $58.09 $69.71 $10,068.93 $120,827.20 $47.64 $59.55 $71.46
101 Exempt Human Resources Representative 735P $29.08 $36.34 $43.61 $29.80 $37.25 $44.70 $6,456.67 $77,480.00 $30.56 $38.19 $45.83
90 Exempt Landscape Architect Park Planner 510M $43.16 $53.94 $64.73 $44.24 $55.29 $66.35 $9,583.60 $115,003.20 $45.35 $56.68 $68.02
2015 Exempt Legal Fellow 755P $37.11 $46.38 $55.66 $38.04 $47.54 $57.05 $8,240.27 $98,883.20 $38.99 $48.73 $58.48
171 Exempt Management Analyst 585M $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65
79 Exempt Manager Accounting 235D $50.72 $63.39 $76.07 $51.99 $64.98 $77.98 $11,263.20 $135,158.40 $53.29 $66.61 $79.94
2007 Exempt Manager Airport 210D $55.59 $69.48 $83.38 $56.98 $71.22 $85.47 $12,344.80 $148,137.60 $58.41 $73.01 $87.62
2023 Exempt Manager Budget 360M $53.84 $67.29 $80.75 $55.19 $68.98 $82.78 $11,956.53 $143,478.40 $56.57 $70.71 $84.86
38 Exempt Manager Communications 525M $42.11 $52.63 $63.16 $43.16 $53.95 $64.74 $9,351.33 $112,216.00 $44.24 $55.30 $66.36
154 Exempt Manager Community Services 630M $37.21 $46.51 $55.82 $38.15 $47.68 $57.22 $8,264.53 $99,174.40 $39.11 $48.88 $58.66
169 Exempt Manager Community Services Sr Program 585M $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65
1013 Exempt Manager Development Center 495M $44.24 $55.29 $66.35 $45.35 $56.68 $68.02 $9,824.53 $117,894.40 $46.48 $58.10 $69.72
63 Exempt Manager Economic Development 220D $53.61 $67.01 $80.42 $54.96 $68.69 $82.43 $11,906.27 $142,875.20 $56.33 $70.41 $84.50
44 Exempt Manager Employee Benefits 450M $45.81 $57.26 $68.72 $46.96 $58.70 $70.44 $10,174.67 $122,096.00 $48.14 $60.17 $72.21
45 Exempt Manager Employee Relations & Training 235D $50.72 $63.39 $76.07 $51.99 $64.98 $77.98 $11,263.20 $135,158.40 $53.29 $66.61 $79.94
93 Exempt Manager Environmental Control Program 419M $46.91 $58.63 $70.36 $48.08 $60.10 $72.12 $10,417.33 $125,008.00 $49.29 $61.61 $73.94
1116 Exempt Manager Facilities 445M $46.50 $58.12 $69.75 $47.67 $59.58 $71.50 $10,327.20 $123,926.40 $48.86 $61.07 $73.29
127 Exempt Manager Fleet 255D $46.97 $58.71 $70.46 $48.15 $60.18 $72.22 $10,431.20 $125,174.40 $49.36 $61.69 $74.03
2018 Exempt Manager Human Services 540M $41.08 $51.35 $61.62 $42.12 $52.64 $63.17 $9,124.27 $109,491.20 $43.17 $53.96 $64.76
32 Exempt Manager Information Technology 230D $51.85 $64.81 $77.78 $53.16 $66.44 $79.73 $11,516.27 $138,195.20 $54.49 $68.11 $81.74
2006 Exempt Manager Information Technology Security 230D $51.85 $64.81 $77.78 $53.16 $66.44 $79.73 $11,516.27 $138,195.20 $54.49 $68.11 $81.74
158 Exempt Manager Laboratory Services 495M $44.24 $55.29 $66.35 $45.35 $56.68 $68.02 $9,824.53 $117,894.40 $46.48 $58.10 $69.72
78 Exempt Manager Library Services 565M $38.61 $48.26 $57.92 $39.58 $49.47 $59.37 $8,574.80 $102,897.60 $40.57 $50.71 $60.86
92 Exempt Manager Maintenance Operations 469M $43.33 $54.16 $65.00 $44.42 $55.52 $66.63 $9,623.47 $115,481.60 $45.53 $56.91 $68.30
26 Exempt Manager Transportation Planning 345M $50.71 $63.38 $76.06 $51.98 $64.97 $77.97 $11,261.47 $135,137.60 $53.28 $66.60 $79.92
51 Exempt Manager Planning 415M $46.96 $58.70 $70.44 $48.14 $60.17 $72.21 $10,429.47 $125,153.60 $49.35 $61.68 $74.02
103 Exempt Manager Real Property 235D $50.72 $63.39 $76.07 $51.99 $64.98 $77.98 $11,263.20 $135,158.40 $53.29 $66.61 $79.94
2011 Exempt Manager Revenue Collections 250D $47.64 $59.55 $71.46 $48.84 $61.04 $73.25 $10,580.27 $126,963.20 $50.06 $62.57 $75.09
160 Exempt Manager Solid Waste 330M $51.30 $64.12 $76.95 $52.59 $65.73 $78.88 $11,393.20 $136,718.40 $53.91 $67.38 $80.86
57 Exempt Manager Treasury, Debt & Investments 235D $50.72 $63.39 $76.07 $51.99 $64.98 $77.98 $11,263.20 $135,158.40 $53.29 $66.61 $79.94
86 Exempt Manager Urban Forestry 436M $45.50 $56.87 $68.25 $46.64 $58.30 $69.96 $10,105.33 $121,264.00 $47.81 $59.76 $71.72
178 Exempt Manager Water Quality Control Plant 205D $57.08 $71.34 $85.61 $58.51 $73.13 $87.76 $12,675.87 $152,110.40 $59.97 $74.96 $89.96
39 Exempt Manager Watershed Protection 330M $51.30 $64.12 $76.95 $52.59 $65.73 $78.88 $11,393.20 $136,718.40 $53.91 $67.38 $80.86
1008 Exempt Office of Emergency Services Coordinator 525M $42.11 $52.63 $63.16 $43.16 $53.95 $64.74 $9,351.33 $112,216.00 $44.24 $55.30 $66.36
2024 Exempt Performance Auditor I 750P $28.37 $35.46 $42.56 $29.08 $36.35 $43.62 $6,300.67 $75,608.00 $29.81 $37.26 $44.72
Page 3
Job
Code
FLSA Status Classifications Grade Codes Min Hourly
Rate
Mid-Point
Hourly Rate
Max Hourly
Rate
Min Hourly
Rate
Mid-Point
Hourly Rate
Max Hourly
Rate
Mid-Point
Monthly
Salary
Mid-Point
Annual
Salary Min Hourly
Rate
Mid-Point
Hourly Rate
Max Hourly
Rate
Effective pay period including 7/1/2016 (2.5% Increase)Effective pay period including 7/1/2017 (2.5% Increase)Effective pay period including 7/1/2018 (2.5% Increase)
100 Exempt Performance Auditor II 585M $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65
148 Exempt Police Chief 15E $84.96 $106.19 $127.43 $87.08 $108.85 $130.62 $18,867.33 $226,408.00 $89.27 $111.58 $133.90
2021 Exempt Principal Chief Assistant City Attorney 101A $77.36 $96.70 $116.04 $79.30 $99.12 $118.95 $17,180.80 $206,169.60 $81.28 $101.60 $121.92
2016 Exempt Principal Business Analyst 310M $54.06 $67.57 $81.09 $55.41 $69.26 $83.12 $12,005.07 $144,060.80 $56.80 $71.00 $85.20
TBD Exempt Principal Planner 469M NA NA NA $44.42 $55.52 $66.63 $9,623.47 $115,481.60 $45.53 $56.91 $68.30
2003 Exempt Principal Management Analyst 360M $53.84 $67.29 $80.75 $55.19 $68.98 $82.78 $11,956.53 $143,478.40 $56.57 $70.71 $84.86
2009 Exempt Project Manager 570M $39.36 $49.20 $59.04 $40.35 $50.43 $60.52 $8,741.20 $104,894.40 $41.36 $51.70 $62.04
2012 Exempt Public Safety Communications Manager 495M $44.24 $55.29 $66.35 $45.35 $56.68 $68.02 $9,824.53 $117,894.40 $46.48 $58.10 $69.72
166 Exempt Public Safety Program Manager 585M $39.11 $48.88 $58.66 $40.09 $50.11 $60.14 $8,685.73 $104,228.80 $41.10 $51.37 $61.65
117 Exempt Senior Accountant 555M $40.08 $50.10 $60.12 $41.09 $51.36 $61.64 $8,902.40 $106,828.80 $42.12 $52.65 $63.18
152 Exempt Senior Assistant City Attorney 105A $70.33 $87.91 $105.50 $72.09 $90.11 $108.14 $15,619.07 $187,428.80 $73.90 $92.37 $110.85
2013 Exempt Senior Business Analyst - M 420M $47.01 $58.76 $70.52 $48.19 $60.23 $72.28 $10,439.87 $125,278.40 $49.40 $61.74 $74.09
187 Exempt Senior Engineer 300M $53.90 $67.37 $80.85 $55.25 $69.06 $82.88 $11,970.40 $143,644.80 $56.64 $70.79 $84.95
106 Exempt Senior Executive Assistant 450M $45.81 $57.26 $68.72 $46.96 $58.70 $70.44 $10,174.67 $122,096.00 $48.14 $60.17 $72.21
157 Exempt Senior Human Resources Administrator 545M $39.93 $49.91 $59.90 $40.93 $51.16 $61.40 $8,867.73 $106,412.80 $41.96 $52.44 $62.93
14 Exempt Senior Management Analyst 465M $45.77 $57.21 $68.66 $46.92 $58.65 $70.38 $10,166.00 $121,992.00 $48.10 $60.12 $72.15
130 Exempt Senior Performance Auditor 510M $43.16 $53.94 $64.73 $44.24 $55.29 $66.35 $9,583.60 $115,003.20 $45.35 $56.68 $68.02
53 Exempt Senior Project Manager 300M $53.90 $67.37 $80.85 $55.25 $69.06 $82.88 $11,970.40 $143,644.80 $56.64 $70.79 $84.95
33 Exempt Senior Technologist 420M $47.01 $58.76 $70.52 $48.19 $60.23 $72.28 $10,439.87 $125,278.40 $49.40 $61.74 $74.09
155 Exempt Superintendent Animal Services 540M $41.08 $51.35 $61.62 $42.12 $52.64 $63.17 $9,124.27 $109,491.20 $43.17 $53.96 $64.76
83 Exempt Superintendent Community Services 480M $45.34 $56.67 $68.01 $46.48 $58.09 $69.71 $10,068.93 $120,827.20 $47.64 $59.55 $71.46
1117 Exempt Superintendent Recreation 480M $45.34 $56.67 $68.01 $46.48 $58.09 $69.71 $10,068.93 $120,827.20 $47.64 $59.55 $71.46
2022 Exempt Supervising Librarian 675M $33.07 $41.33 $49.60 $33.90 $42.37 $50.85 $7,344.13 $88,129.60 $34.75 $43.43 $52.12
161 Exempt Supervisor Facilities Management 600M $38.24 $47.79 $57.35 $39.20 $48.99 $58.79 $8,491.60 $101,899.20 $40.18 $50.22 $60.27
113 Exempt Supervisor Inspection and Surveying 540M $41.08 $51.35 $61.62 $42.12 $52.64 $63.17 $9,124.27 $109,491.20 $43.17 $53.96 $64.76
146 Exempt Supervisor Warehouse 660M $34.56 $43.19 $51.83 $35.42 $44.27 $53.13 $7,673.47 $92,081.60 $36.31 $45.38 $54.46
181 Exempt Supervisor Water Quality Control Operations 525M $42.11 $52.63 $63.16 $43.16 $53.95 $64.74 $9,351.33 $112,216.00 $44.24 $55.30 $66.36
2027 Exempt Utilities Chief Operating Officer 60E $70.84 $88.54 $106.25 $72.61 $90.76 $108.92 $15,731.73 $188,780.80 $74.43 $93.03 $111.64
184 Exempt Veterinarian 555M $40.08 $50.10 $60.12 $41.09 $51.36 $61.64 $8,902.40 $106,828.80 $42.12 $52.65 $63.18
Job
Code FLSA Status Classifications Grade Codes Min Hourly
Rate
Mid-Point
Hourly Rate
Max Hourly
Rate
Min Hourly
Rate
Mid-Point
Hourly Rate
Max Hourly
Rate
Mid-Point
Monthly
Salary
Mid-Point
Annual
Salary
Min Hourly
Rate
Mid-Point
Hourly Rate
Max Hourly
Rate
905 Non-Exempt Human Resources Technician 830C $25.08 $31.34 $37.61 $25.71 $32.13 $38.56 $5,569.20 $66,830.40 $26.36 $32.94 $39.53
903 Non-Exempt Legal Secretary-Confidential 820C $25.70 $32.12 $38.55 $26.35 $32.93 $39.52 $5,707.87 $68,494.40 $27.01 $33.76 $40.52
67 Exempt Secretary to City Attorney 800C $30.55 $38.18 $45.82 $31.32 $39.14 $46.97 $6,784.27 $81,411.20 $32.10 $40.12 $48.15
1004 Non-Exempt Senior Legal Secretary - Confidential 810C $28.37 $35.46 $42.56 $29.08 $36.35 $43.62 $6,300.67 $75,608.00 $29.81 $37.26 $44.72
Confidential Classifications
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
206 non-exempt Account Assistant 1 $20.92 $21.56 $21.56 $22.21
206 2 $22.02 $22.69 $22.69 $23.38
206 3 $23.18 $23.88 $23.88 $24.61
206 4 $24.40 $25.14 $25.14 $25.90
206 5 $25.68 $4,451.20 $53,414.40 $26.46 $4,586.40 $55,036.80 $26.46 $4,586.40 $55,036.80 $27.26 $4,725.07 $56,700.80
204 non-exempt Acct Spec 1 $24.44 $25.18 $25.18 $25.94
204 2 $25.73 $26.51 $26.51 $27.31
204 3 $27.08 $27.90 $27.90 $28.75
204 4 $28.51 $29.37 $29.37 $30.26
204 5 $30.01 $5,201.73 $62,420.80 $30.92 $5,359.47 $64,313.60 $30.92 $5,359.47 $64,313.60 $31.85 $5,520.67 $66,248.00
207 non-exempt Acct Spec-Lead 1 $26.15 $26.96 $26.96 $27.77
207 2 $27.53 $28.38 $28.38 $29.23
207 3 $28.98 $29.87 $29.87 $30.77
207 4 $30.51 $31.44 $31.44 $32.39
207 5 $32.12 $5,567.47 $66,809.60 $33.09 $5,735.60 $68,827.20 $33.09 $5,735.60 $68,827.20 $34.09 $5,908.93 $70,907.20
294 non-exempt Administrative Associate I 1 $24.05 $24.81 $24.84 $25.60
294 2 $25.32 $26.12 $26.15 $26.95
294 3 $26.65 $27.49 $27.53 $28.37
294 4 $28.05 $28.94 $28.98 $29.86
294 5 $29.53 $5,118.53 $61,422.40 $30.46 $5,279.73 $63,356.80 $30.51 $5,288.40 $63,460.80 $31.43 $5,447.87 $65,374.40
295 non-exempt Administrative Associate II 1 $26.14 $26.97 $27.00 $27.82
295 2 $27.52 $28.39 $28.42 $29.28
295 3 $28.97 $29.88 $29.92 $30.82
295 4 $30.49 $31.45 $31.49 $32.44
295 5 $32.09 $5,562.27 $66,747.20 $33.10 $5,737.33 $68,848.00 $33.15 $5,746.00 $68,952.00 $34.15 $5,919.33 $71,032.00
296 non-exempt Administrative Associate III 1 $28.03 $28.90 $28.94 $29.81
296 2 $29.50 $30.42 $30.46 $31.38
296 3 $31.05 $32.02 $32.06 $33.03
296 4 $32.68 $33.71 $33.75 $34.77
296 5 $34.40 $5,962.67 $71,552.00 $35.48 $6,149.87 $73,798.40 $35.53 $6,158.53 $73,902.40 $36.60 $6,344.00 $76,128.00
277 non-exempt Animal Attendant 1 $23.02 $23.78 $23.86 $24.58
277 2 $24.23 $25.03 $25.12 $25.87
277 3 $25.51 $26.35 $26.44 $27.23
277 4 $26.85 $27.74 $27.83 $28.66
277 5 $28.26 $4,898.40 $58,780.80 $29.20 $5,061.33 $60,736.00 $29.29 $5,076.93 $60,923.20 $30.17 $5,229.47 $62,753.60
276 non-exempt Animal Control Off 1 $24.66 $25.48 $25.56 $26.32
276 2 $25.96 $26.82 $26.90 $27.71
276 3 $27.33 $28.23 $28.32 $29.17
276 4 $28.77 $29.72 $29.81 $30.71
276 5 $30.28 $5,248.53 $62,982.40 $31.28 $5,421.87 $65,062.40 $31.38 $5,439.20 $65,270.40 $32.33 $5,603.87 $67,246.40
312 non-exempt Animal Control Off - L 1 $26.39 $27.27 $27.35 $28.18
312 2 $27.78 $28.70 $28.79 $29.66
312 3 $29.24 $30.21 $30.31 $31.22
312 4 $30.78 $31.80 $31.90 $32.86
312 5 $32.40 $5,616.00 $67,392.00 $33.47 $5,801.47 $69,617.60 $33.58 $5,820.53 $69,846.40 $34.59 $5,995.60 $71,947.20
263 non-exempt Animal Services Spec 1 $24.32 $25.13 $25.20 $25.97
263 2 $25.60 $26.45 $26.53 $27.34
263 3 $26.95 $27.84 $27.93 $28.78
263 4 $28.37 $29.31 $29.40 $30.29
263 5 $29.86 $5,175.73 $62,108.80 $30.85 $5,347.33 $64,168.00 $30.95 $5,364.67 $64,376.00 $31.88 $5,525.87 $66,310.40
275 non-exempt Animal Services Spec II 1 $26.82 $27.71 $27.80 $28.63
275 2 $28.23 $29.17 $29.26 $30.14
275 3 $29.72 $30.70 $30.80 $31.73
275 4 $31.28 $32.32 $32.42 $33.40
275 5 $32.93 $5,707.87 $68,494.40 $34.02 $5,896.80 $70,761.60 $34.13 $5,915.87 $70,990.40 $35.16 $6,094.40 $73,132.80
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
Attachment O, Exhibit 2
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
244 non-exempt Assoc Buyer 1 $31.32 $32.28 $32.30 $33.27
244 2 $32.97 $33.98 $34.00 $35.02
244 3 $34.71 $35.77 $35.79 $36.86
244 4 $36.54 $37.65 $37.67 $38.80
244 5 $38.46 $6,666.40 $79,996.80 $39.63 $6,869.20 $82,430.40 $39.65 $6,872.67 $82,472.00 $40.84 $7,078.93 $84,947.20
333 non-exempt Assoc Engineer 1 $38.75 $40.10 $40.29 $41.50
333 2 $40.79 $42.21 $42.41 $43.68
333 3 $42.94 $44.43 $44.64 $45.98
333 4 $45.20 $46.77 $46.99 $48.40
333 5 $47.58 $8,247.20 $98,966.40 $49.23 $8,533.20 $102,398.40 $49.46 $8,573.07 $102,876.80 $50.95 $8,831.33 $105,976.00
353 non-exempt Assoc Planner 1 $35.94 $37.28 $37.55 $38.68
353 2 $37.83 $39.24 $39.53 $40.72
353 3 $39.82 $41.31 $41.61 $42.86
353 4 $41.92 $43.48 $43.80 $45.12
353 5 $44.13 $7,649.20 $91,790.40 $45.77 $7,933.47 $95,201.60 $46.10 $7,990.67 $95,888.00 $47.49 $8,231.60 $98,779.20
247 non-exempt Assoc Power Engr 1 $41.25 $42.69 $42.89 $44.18
247 2 $43.42 $44.94 $45.15 $46.50
247 3 $45.71 $47.30 $47.53 $48.95
247 4 $48.12 $49.79 $50.03 $51.53
247 5 $50.65 $8,779.33 $105,352.00 $52.41 $9,084.40 $109,012.80 $52.66 $9,127.73 $109,532.80 $54.24 $9,401.60 $112,819.20
269 non-exempt Assoc Res Planner 1 $39.78 $40.97 $40.97 $42.20
269 2 $41.87 $43.13 $43.13 $44.42
269 3 $44.07 $45.40 $45.40 $46.76
269 4 $46.39 $47.79 $47.79 $49.22
269 5 $48.83 $8,463.87 $101,566.40 $50.30 $8,718.67 $104,624.00 $50.30 $8,718.67 $104,624.00 $51.81 $8,980.40 $107,764.80
330 non-exempt Asst Engineer 1 $35.10 $36.32 $36.49 $37.59
330 2 $36.95 $38.23 $38.41 $39.57
330 3 $38.89 $40.24 $40.43 $41.65
330 4 $40.94 $42.36 $42.56 $43.84
330 5 $43.09 $7,468.93 $89,627.20 $44.59 $7,728.93 $92,747.20 $44.80 $7,765.33 $93,184.00 $46.15 $7,999.33 $95,992.00
256 non-exempt Asst Power Engr 1 $37.25 $38.54 $38.72 $39.89
256 2 $39.21 $40.57 $40.76 $41.99
256 3 $41.27 $42.70 $42.91 $44.20
256 4 $43.44 $44.95 $45.17 $46.53
256 5 $45.73 $7,926.53 $95,118.40 $47.32 $8,202.13 $98,425.60 $47.55 $8,242.00 $98,904.00 $48.98 $8,489.87 $101,878.40
268 non-exempt Asst Res Planner 1 $35.91 $36.98 $36.98 $38.10
268 2 $37.80 $38.93 $38.93 $40.11
268 3 $39.79 $40.98 $40.98 $42.22
268 4 $41.88 $43.14 $43.14 $44.44
268 5 $44.08 $7,640.53 $91,686.40 $45.41 $7,871.07 $94,452.80 $45.41 $7,871.07 $94,452.80 $46.78 $8,108.53 $97,302.40
299 non-exempt Bldg Inspector 1 $35.69 $37.33 $37.91 $39.05
299 2 $37.57 $39.29 $39.91 $41.11
299 3 $39.55 $41.36 $42.01 $43.27
299 4 $41.63 $43.54 $44.22 $45.55
299 5 $43.82 $7,595.47 $91,145.60 $45.83 $7,943.87 $95,326.40 $46.55 $8,068.67 $96,824.00 $47.95 $8,311.33 $99,736.00
300 non-exempt Bldg Inspector Spec 1 $38.10 $39.84 $40.48 $41.70
300 2 $40.11 $41.94 $42.61 $43.89
300 3 $42.22 $44.15 $44.85 $46.20
300 4 $44.44 $46.47 $47.21 $48.63
300 5 $46.78 $8,108.53 $97,302.40 $48.92 $8,479.47 $101,753.60 $49.69 $8,612.93 $103,355.20 $51.19 $8,872.93 $106,475.20
370 non-exempt Bldg Serviceperson 1 $21.10 $21.98 $22.24 $22.90
370 2 $22.21 $23.14 $23.41 $24.10
370 3 $23.38 $24.36 $24.64 $25.37
370 4 $24.61 $25.64 $25.94 $26.71
370 5 $25.91 $4,491.07 $53,892.80 $26.99 $4,678.27 $56,139.20 $27.30 $4,732.00 $56,784.00 $28.12 $4,874.13 $58,489.60
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
371 non-exempt Bldg Serviceperson-L 1 $22.59 $23.54 $23.80 $24.52
371 2 $23.78 $24.78 $25.05 $25.81
371 3 $25.03 $26.08 $26.37 $27.17
371 4 $26.35 $27.45 $27.76 $28.60
371 5 $27.74 $4,808.27 $57,699.20 $28.89 $5,007.60 $60,091.20 $29.22 $5,064.80 $60,777.60 $30.10 $5,217.33 $62,608.00
355 non-exempt Bldg/Plg Technician 1 $29.16 $30.24 $30.45 $31.37
355 2 $30.69 $31.83 $32.05 $33.02
355 3 $32.31 $33.51 $33.74 $34.76
355 4 $34.01 $35.27 $35.52 $36.59
355 5 $35.80 $6,205.33 $74,464.00 $37.13 $6,435.87 $77,230.40 $37.39 $6,480.93 $77,771.20 $38.52 $6,676.80 $80,121.60
340 non-exempt Business Analyst 1 $48.82 $51.62 $53.04 $54.63
340 2 $51.39 $54.34 $55.83 $57.51
340 3 $54.09 $57.20 $58.77 $60.54
340 4 $56.94 $60.21 $61.86 $63.73
340 5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40
3400 non-exempt Business Analyst - S 1 $48.82 $51.62 $53.04 $54.63
3400 2 $51.39 $54.34 $55.83 $57.51
3400 3 $54.09 $57.20 $58.77 $60.54
3400 4 $56.94 $60.21 $61.86 $63.73
3400 5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40
212 non-exempt Buyer 1 $34.49 $35.54 $35.56 $36.61
212 2 $36.30 $37.41 $37.43 $38.54
212 3 $38.21 $39.38 $39.40 $40.57
212 4 $40.22 $41.45 $41.47 $42.71
212 5 $42.34 $7,338.93 $88,067.20 $43.63 $7,562.53 $90,750.40 $43.65 $7,566.00 $90,792.00 $44.96 $7,793.07 $93,516.80
464 non-exempt Cathodic Protection Tech Assistant 1 $33.56 $35.49 $36.47 $37.57
464 2 $35.33 $37.36 $38.39 $39.55
464 3 $37.19 $39.33 $40.41 $41.63
464 4 $39.15 $41.40 $42.54 $43.82
464 5 $41.21 $7,143.07 $85,716.80 $43.58 $7,553.87 $90,646.40 $44.78 $7,761.87 $93,142.40 $46.13 $7,995.87 $95,950.40
536 non-exempt Cathodic Tech 1 $41.21 $43.59 $44.77 $46.12
536 2 $43.38 $45.88 $47.13 $48.55
536 3 $45.66 $48.29 $49.61 $51.10
536 4 $48.06 $50.83 $52.22 $53.79
536 5 $50.59 $8,768.93 $105,227.20 $53.50 $9,273.33 $111,280.00 $54.97 $9,528.13 $114,337.60 $56.62 $9,814.13 $117,769.60
208 non-exempt CDBG Coordinator 1 $38.43 $39.85 $40.15 $41.34
208 2 $40.45 $41.95 $42.26 $43.52
208 3 $42.58 $44.16 $44.48 $45.81
208 4 $44.82 $46.48 $46.82 $48.22
208 5 $47.18 $8,177.87 $98,134.40 $48.93 $8,481.20 $101,774.40 $49.28 $8,541.87 $102,502.40 $50.76 $8,798.40 $105,580.80
408 non-exempt Cement Finisher 1 $30.11 $31.85 $32.75 $33.73
408 2 $31.69 $33.53 $34.47 $35.50
408 3 $33.36 $35.29 $36.28 $37.37
408 4 $35.12 $37.15 $38.19 $39.34
408 5 $36.97 $6,408.13 $76,897.60 $39.11 $6,779.07 $81,348.80 $40.20 $6,968.00 $83,616.00 $41.41 $7,177.73 $86,132.80
409 non-exempt Cement Finisher Lead 1 $32.21 $34.08 $35.03 $36.08
409 2 $33.91 $35.87 $36.87 $37.98
409 3 $35.69 $37.76 $38.81 $39.98
409 4 $37.57 $39.75 $40.85 $42.08
409 5 $39.55 $6,855.33 $82,264.00 $41.84 $7,252.27 $87,027.20 $43.00 $7,453.33 $89,440.00 $44.29 $7,676.93 $92,123.20
502 non-exempt Chemist 1 $35.11 $36.20 $36.21 $37.30
502 2 $36.96 $38.10 $38.12 $39.26
502 3 $38.90 $40.10 $40.13 $41.33
502 4 $40.95 $42.21 $42.24 $43.51
5 $43.10 $7,470.67 $89,648.00 $44.43 $7,701.20 $92,414.40 $44.46 $7,706.40 $92,476.80 $45.80 $7,938.67 $95,264.00
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
239 non-exempt Chf Inspec WGW 1 $38.18 $39.94 $40.56 $41.79
239 2 $40.19 $42.04 $42.69 $43.99
239 3 $42.31 $44.25 $44.94 $46.30
239 4 $44.54 $46.58 $47.31 $48.74
239 5 $46.88 $8,125.87 $97,510.40 $49.03 $8,498.53 $101,982.40 $49.80 $8,632.00 $103,584.00 $51.30 $8,892.00 $106,704.00
301 non-exempt Code Enforcement Off 1 $34.29 $35.85 $36.41 $37.52
301 2 $36.09 $37.74 $38.33 $39.49
301 3 $37.99 $39.73 $40.35 $41.57
301 4 $39.99 $41.82 $42.47 $43.76
301 5 $42.09 $7,295.60 $87,547.20 $44.02 $7,630.13 $91,561.60 $44.71 $7,749.73 $92,996.80 $46.06 $7,983.73 $95,804.80
560 non-exempt Code Enforcement Off - L 1 $36.68 $38.36 $38.96 $40.14
560 2 $38.61 $40.38 $41.01 $42.25
560 3 $40.64 $42.50 $43.17 $44.47
560 4 $42.78 $44.74 $45.44 $46.81
560 5 $45.03 $7,805.20 $93,662.40 $47.09 $8,162.27 $97,947.20 $47.83 $8,290.53 $99,486.40 $49.27 $8,540.13 $102,481.60
306 non-exempt Comm Tech 1 $35.92 $36.99 $36.99 $38.11
306 2 $37.81 $38.94 $38.94 $40.12
306 3 $39.80 $40.99 $40.99 $42.23
306 4 $41.89 $43.15 $43.15 $44.45
306 5 $44.09 $7,642.27 $91,707.20 $45.42 $7,872.80 $94,473.60 $45.42 $7,872.80 $94,473.60 $46.79 $8,110.27 $97,323.20
702 non-exempt Community Serv Offcr 1 $26.09 $27.33 $27.82 $28.65
702 2 $27.46 $28.77 $29.28 $30.16
702 3 $28.90 $30.28 $30.82 $31.75
702 4 $30.42 $31.87 $32.44 $33.42
702 5 $32.02 $5,550.13 $66,601.60 $33.55 $5,815.33 $69,784.00 $34.15 $5,919.33 $71,032.00 $35.18 $6,097.87 $73,174.40
320 non-exempt Community Service Officer - Lead 1 $27.89 $29.24 $29.75 $30.65
320 2 $29.36 $30.78 $31.32 $32.26
320 3 $30.91 $32.40 $32.97 $33.96
320 4 $32.54 $34.10 $34.70 $35.75
320 5 $34.25 $5,936.67 $71,240.00 $35.89 $6,220.93 $74,651.20 $36.53 $6,331.87 $75,982.40 $37.63 $6,522.53 $78,270.40
341 non-exempt Coor Trans Sys Mgmt 1 $36.60 $38.04 $38.38 $39.54
341 2 $38.53 $40.04 $40.40 $41.62
341 3 $40.56 $42.15 $42.53 $43.81
341 4 $42.69 $44.37 $44.77 $46.12
341 5 $44.94 $7,789.60 $93,475.20 $46.70 $8,094.67 $97,136.00 $47.13 $8,169.20 $98,030.40 $48.55 $8,415.33 $100,984.00
3410 non-exempt Coor Trans Sys Mgmt - S 1 $36.60 $38.04 $38.38 $39.54
3410 2 $38.53 $40.04 $40.40 $41.62
3410 3 $40.56 $42.15 $42.53 $43.81
3410 4 $42.69 $44.37 $44.77 $46.12
3410 5 $44.94 $7,789.60 $93,475.20 $46.70 $8,094.67 $97,136.00 $47.13 $8,169.20 $98,030.40 $48.55 $8,415.33 $100,984.00
255 non-exempt Coord Library Prog 1 $33.24 $34.43 $34.62 $35.66
255 2 $34.99 $36.24 $36.44 $37.54
255 3 $36.83 $38.15 $38.36 $39.52
255 4 $38.77 $40.16 $40.38 $41.60
255 5 $40.81 $7,073.73 $84,884.80 $42.27 $7,326.80 $87,921.60 $42.51 $7,368.40 $88,420.80 $43.79 $7,590.27 $91,083.20
342 non-exempt Coord Pub Wks Proj 1 $34.78 $36.14 $36.46 $37.56
342 2 $36.61 $38.04 $38.38 $39.54
342 3 $38.54 $40.04 $40.40 $41.62
342 4 $40.57 $42.15 $42.53 $43.81
342 5 $42.70 $7,401.33 $88,816.00 $44.37 $7,690.80 $92,289.60 $44.77 $7,760.13 $93,121.60 $46.12 $7,994.13 $95,929.60
317 non-exempt Coord Rec Prog 1 $29.88 $31.04 $31.32 $32.27
2 $31.45 $32.67 $32.97 $33.97
3 $33.10 $34.39 $34.71 $35.76
4 $34.84 $36.20 $36.54 $37.64
5 $36.67 $6,356.13 $76,273.60 $38.11 $6,605.73 $79,268.80 $38.46 $6,666.40 $79,996.80 $39.62 $6,867.47 $82,409.60
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
344 non-exempt Coord Utility Proj 1 $37.55 $39.02 $39.38 $40.57
344 2 $39.53 $41.07 $41.45 $42.70
344 3 $41.61 $43.23 $43.63 $44.95
344 4 $43.80 $45.51 $45.93 $47.32
344 5 $46.11 $7,992.40 $95,908.80 $47.91 $8,304.40 $99,652.80 $48.35 $8,380.67 $100,568.00 $49.81 $8,633.73 $103,604.80
3440 non-exempt Coord Utility Proj - S 1 $37.55 $39.02 $39.38 $40.57
3440 2 $39.53 $41.07 $41.45 $42.70
3440 3 $41.61 $43.23 $43.63 $44.95
3440 4 $43.80 $45.51 $45.93 $47.32
3440 5 $46.11 $7,992.40 $95,908.80 $47.91 $8,304.40 $99,652.80 $48.35 $8,380.67 $100,568.00 $49.81 $8,633.73 $103,604.80
242 non-exempt Coord Zero Waste 1 $33.39 $34.70 $35.02 $36.07
242 2 $35.15 $36.53 $36.86 $37.97
242 3 $37.00 $38.45 $38.80 $39.97
242 4 $38.95 $40.47 $40.84 $42.07
242 5 $41.00 $7,106.67 $85,280.00 $42.60 $7,384.00 $88,608.00 $42.99 $7,451.60 $89,419.20 $44.28 $7,675.20 $92,102.40
205 non-exempt Court Liaison Officer 1 $33.95 $35.58 $36.20 $37.30
205 2 $35.74 $37.45 $38.11 $39.26
205 3 $37.62 $39.42 $40.12 $41.33
205 4 $39.60 $41.49 $42.23 $43.50
205 5 $41.68 $7,224.53 $86,694.40 $43.67 $7,569.47 $90,833.60 $44.45 $7,704.67 $92,456.00 $45.79 $7,936.93 $95,243.20
214 non-exempt Crime Analyst 1 $33.95 $35.58 $36.20 $37.30
214 2 $35.74 $37.45 $38.11 $39.26
214 3 $37.62 $39.42 $40.12 $41.33
214 4 $39.60 $41.49 $42.23 $43.50
214 5 $41.68 $7,224.53 $86,694.40 $43.67 $7,569.47 $90,833.60 $44.45 $7,704.67 $92,456.00 $45.79 $7,936.93 $95,243.20
415 non-exempt Cust Srv Specialist-L 1 $30.55 $31.47 $31.47 $32.40
415 2 $32.16 $33.13 $33.13 $34.11
415 3 $33.85 $34.87 $34.87 $35.91
415 4 $35.63 $36.70 $36.70 $37.80
415 5 $37.50 $6,500.00 $78,000.00 $38.63 $6,695.87 $80,350.40 $38.63 $6,695.87 $80,350.40 $39.79 $6,896.93 $82,763.20
218 non-exempt Cust Svc Represent 1 $25.98 $26.76 $26.76 $27.56
218 2 $27.35 $28.17 $28.17 $29.01
218 3 $28.79 $29.65 $29.65 $30.54
218 4 $30.30 $31.21 $31.21 $32.15
218 5 $31.89 $5,527.60 $66,331.20 $32.85 $5,694.00 $68,328.00 $32.85 $5,694.00 $68,328.00 $33.84 $5,865.60 $70,387.20
217 non-exempt Cust Svc Spec 1 $28.56 $29.41 $29.41 $30.31
217 2 $30.06 $30.96 $30.96 $31.90
217 3 $31.64 $32.59 $32.59 $33.58
217 4 $33.31 $34.31 $34.31 $35.35
217 5 $35.06 $6,077.07 $72,924.80 $36.12 $6,260.80 $75,129.60 $36.12 $6,260.80 $75,129.60 $37.21 $6,449.73 $77,396.80
260 non-exempt Desktop Technician 1 $31.13 $32.06 $32.06 $33.03
260 2 $32.77 $33.75 $33.75 $34.77
260 3 $34.49 $35.53 $35.53 $36.60
260 4 $36.31 $37.40 $37.40 $38.53
260 5 $38.22 $6,624.80 $79,497.60 $39.37 $6,824.13 $81,889.60 $39.37 $6,824.13 $81,889.60 $40.56 $7,030.40 $84,364.80
514 non-exempt Development Project Coordinator I 1 $27.42 $28.67 $29.13 $30.01
514 2 $28.86 $30.18 $30.66 $31.59
514 3 $30.38 $31.77 $32.27 $33.25
514 4 $31.98 $33.44 $33.97 $35.00
514 5 $33.66 $5,834.40 $70,012.80 $35.20 $6,101.33 $73,216.00 $35.76 $6,198.40 $74,380.80 $36.84 $6,385.60 $76,627.20
515 non-exempt Development Project Coordinator II 1 $31.15 $32.59 $33.10 $34.09
2 $32.79 $34.30 $34.84 $35.88
3 $34.52 $36.10 $36.67 $37.77
4 $36.34 $38.00 $38.60 $39.76
5 $38.25 $6,630.00 $79,560.00 $40.00 $6,933.33 $83,200.00 $40.63 $7,042.53 $84,510.40 $41.85 $7,254.00 $87,048.00
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
516 non-exempt Development Project Coordinator III 1 $34.36 $35.93 $36.50 $37.60
2 $36.17 $37.82 $38.42 $39.58
3 $38.07 $39.81 $40.44 $41.66
4 $40.07 $41.90 $42.57 $43.85
5 $42.18 $7,311.20 $87,734.40 $44.11 $7,645.73 $91,748.80 $44.81 $7,767.07 $93,204.80 $46.16 $8,001.07 $96,012.80
533 non-exempt Elec Asst I 1 $27.09 $28.22 $28.53 $29.39
533 2 $28.52 $29.70 $30.03 $30.94
533 3 $30.02 $31.26 $31.61 $32.57
533 4 $31.60 $32.90 $33.27 $34.28
533 5 $33.26 $5,765.07 $69,180.80 $34.63 $6,002.53 $72,030.40 $35.02 $6,070.13 $72,841.60 $36.08 $6,253.87 $75,046.40
267 non-exempt Elec Undgd Inspec 1 $33.84 $35.39 $35.94 $37.03
267 2 $35.62 $37.25 $37.83 $38.98
267 3 $37.49 $39.21 $39.82 $41.03
267 4 $39.46 $41.27 $41.92 $43.19
267 5 $41.54 $7,200.27 $86,403.20 $43.44 $7,529.60 $90,355.20 $44.13 $7,649.20 $91,790.40 $45.46 $7,879.73 $94,556.80
345 non-exempt Electric Project Engineer 1 $49.43 $51.15 $51.39 $52.93
345 2 $52.03 $53.84 $54.09 $55.72
345 3 $54.77 $56.67 $56.94 $58.65
345 4 $57.65 $59.65 $59.94 $61.74
345 5 $60.68 $10,517.87 $126,214.40 $62.79 $10,883.60 $130,603.20 $63.09 $10,935.60 $131,227.20 $64.99 $11,264.93 $135,179.20
3450 non-exempt Electric Project Engineer - S 1 $49.43 $51.15 $51.39 $52.93
3450 2 $52.03 $53.84 $54.09 $55.72
3450 3 $54.77 $56.67 $56.94 $58.65
3450 4 $57.65 $59.65 $59.94 $61.74
3450 5 $60.68 $10,517.87 $126,214.40 $62.79 $10,883.60 $130,603.20 $63.09 $10,935.60 $131,227.20 $64.99 $11,264.93 $135,179.20
292 non-exempt Electric Underground Inspector - Lead 1 $36.20 $37.84 $38.44 $39.60
292 2 $38.10 $39.83 $40.46 $41.68
292 3 $40.10 $41.93 $42.59 $43.87
292 4 $42.21 $44.14 $44.83 $46.18
292 5 $44.43 $7,701.20 $92,414.40 $46.46 $8,053.07 $96,636.80 $47.19 $8,179.60 $98,155.20 $48.61 $8,425.73 $101,108.80
527 non-exempt Electrical Equipment Tech 1 $31.85 $32.81 $32.81 $33.80
527 2 $33.53 $34.54 $34.54 $35.58
527 3 $35.29 $36.36 $36.36 $37.45
527 4 $37.15 $38.27 $38.27 $39.42
527 5 $39.10 $6,777.33 $81,328.00 $40.28 $6,981.87 $83,782.40 $40.28 $6,981.87 $83,782.40 $41.49 $7,191.60 $86,299.20
530 non-exempt Electrician 1 $36.23 $37.72 $38.14 $39.28
530 2 $38.14 $39.70 $40.15 $41.35
530 3 $40.15 $41.79 $42.26 $43.53
530 4 $42.26 $43.99 $44.48 $45.82
530 5 $44.48 $7,709.87 $92,518.40 $46.31 $8,027.07 $96,324.80 $46.82 $8,115.47 $97,385.60 $48.23 $8,359.87 $100,318.40
529 non-exempt Electrician-Appren 1 $34.30 $35.70 $36.10 $37.18
529 2 $36.10 $37.58 $38.00 $39.14
529 3 $38.00 $39.56 $40.00 $41.20
529 4 $40.00 $41.64 $42.10 $43.37
529 5 $42.10 $7,297.33 $87,568.00 $43.83 $7,597.20 $91,166.40 $44.32 $7,682.13 $92,185.60 $45.65 $7,912.67 $94,952.00
535 non-exempt Electrician-Lead 1 $38.79 $40.38 $40.83 $42.07
2 $40.83 $42.51 $42.98 $44.28
3 $42.98 $44.75 $45.24 $46.61
4 $45.24 $47.10 $47.62 $49.06
5 $47.62 $8,254.13 $99,049.60 $49.58 $8,593.87 $103,126.40 $50.13 $8,689.20 $104,270.40 $51.64 $8,950.93 $107,411.20
399 non-exempt Emergency Med Svs Data Specialist 1 $28.03 $28.90 $28.94 $29.81
399 2 $29.50 $30.42 $30.46 $31.38
399 3 $31.05 $32.02 $32.06 $33.03
399 4 $32.68 $33.71 $33.75 $34.77
399 5 $34.40 $5,962.67 $71,552.00 $35.48 $6,149.87 $73,798.40 $35.53 $6,158.53 $73,902.40 $36.60 $6,344.00 $76,128.00
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
311 non-exempt Eng Tech I 1 $26.50 $27.69 $28.09 $28.94
311 2 $27.89 $29.15 $29.57 $30.46
311 3 $29.36 $30.68 $31.13 $32.06
311 4 $30.90 $32.29 $32.77 $33.75
311 5 $32.53 $5,638.53 $67,662.40 $33.99 $5,891.60 $70,699.20 $34.49 $5,978.27 $71,739.20 $35.53 $6,158.53 $73,902.40
332 non-exempt Engineer 1 $43.64 $45.17 $45.37 $46.74
332 2 $45.94 $47.55 $47.76 $49.20
332 3 $48.36 $50.05 $50.27 $51.79
332 4 $50.91 $52.68 $52.92 $54.52
332 5 $53.59 $9,288.93 $111,467.20 $55.45 $9,611.33 $115,336.00 $55.71 $9,656.40 $115,876.80 $57.39 $9,947.60 $119,371.20
323 non-exempt Engr Tech II 1 $28.67 $29.95 $30.40 $31.31
323 2 $30.18 $31.53 $32.00 $32.96
323 3 $31.77 $33.19 $33.68 $34.69
323 4 $33.44 $34.94 $35.45 $36.52
323 5 $35.20 $6,101.33 $73,216.00 $36.78 $6,375.20 $76,502.40 $37.32 $6,468.80 $77,625.60 $38.44 $6,662.93 $79,955.20
319 non-exempt Engr Tech III 1 $32.02 $33.45 $33.94 $34.96
319 2 $33.70 $35.21 $35.73 $36.80
319 3 $35.47 $37.06 $37.61 $38.74
319 4 $37.34 $39.01 $39.59 $40.78
319 5 $39.30 $6,812.00 $81,744.00 $41.06 $7,117.07 $85,404.80 $41.67 $7,222.80 $86,673.60 $42.93 $7,441.20 $89,294.40
257 non-exempt Environmental Spec 1 $37.67 $39.35 $39.92 $41.13
257 2 $39.65 $41.42 $42.02 $43.29
257 3 $41.74 $43.60 $44.23 $45.57
257 4 $43.94 $45.89 $46.56 $47.97
257 5 $46.25 $8,016.67 $96,200.00 $48.31 $8,373.73 $100,484.80 $49.01 $8,495.07 $101,940.80 $50.49 $8,751.60 $105,019.20
211 non-exempt Equip Maint Serv Per 1 $22.62 $23.56 $23.83 $24.54
211 2 $23.81 $24.80 $25.08 $25.83
211 3 $25.06 $26.10 $26.40 $27.19
211 4 $26.38 $27.47 $27.79 $28.62
211 5 $27.77 $4,813.47 $57,761.60 $28.92 $5,012.80 $60,153.60 $29.25 $5,070.00 $60,840.00 $30.13 $5,222.53 $62,670.40
396 non-exempt Equip Operator 1 $27.81 $29.37 $30.13 $31.04
396 2 $29.27 $30.92 $31.72 $32.67
396 3 $30.81 $32.55 $33.39 $34.39
396 4 $32.43 $34.26 $35.15 $36.20
396 5 $34.14 $5,917.60 $71,011.20 $36.06 $6,250.40 $75,004.80 $37.00 $6,413.33 $76,960.00 $38.11 $6,605.73 $79,268.80
397 non-exempt Equip Operator - Lead 1 $29.75 $31.43 $32.24 $33.21
397 2 $31.32 $33.08 $33.94 $34.96
397 3 $32.97 $34.82 $35.73 $36.80
397 4 $34.70 $36.65 $37.61 $38.74
397 5 $36.53 $6,331.87 $75,982.40 $38.58 $6,687.20 $80,246.40 $39.59 $6,862.27 $82,347.20 $40.78 $7,068.53 $84,822.40
250 non-exempt Equip Parts Tech 1 $24.31 $25.04 $25.04 $25.81
250 2 $25.59 $26.36 $26.36 $27.17
250 3 $26.94 $27.75 $27.75 $28.60
250 4 $28.36 $29.21 $29.21 $30.10
250 5 $29.85 $5,174.00 $62,088.00 $30.75 $5,330.00 $63,960.00 $30.75 $5,330.00 $63,960.00 $31.68 $5,491.20 $65,894.40
203 non-exempt Facilities Asst 1 $23.09 $24.44 $25.12 $25.87
203 2 $24.31 $25.73 $26.44 $27.23
203 3 $25.59 $27.08 $27.83 $28.66
203 4 $26.94 $28.50 $29.29 $30.17
203 5 $28.36 $4,915.73 $58,988.80 $30.00 $5,200.00 $62,400.00 $30.83 $5,343.87 $64,126.40 $31.76 $5,505.07 $66,060.80
374 non-exempt Facilities Carpenter 1 $30.11 $31.85 $32.75 $33.73
374 2 $31.69 $33.53 $34.47 $35.50
374 3 $33.36 $35.29 $36.28 $37.37
374 4 $35.12 $37.15 $38.19 $39.34
374 5 $36.97 $6,408.13 $76,897.60 $39.11 $6,779.07 $81,348.80 $40.20 $6,968.00 $83,616.00 $41.41 $7,177.73 $86,132.80
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
375 non-exempt Facilities Elect 1 $30.02 $31.26 $31.61 $32.56
375 2 $31.60 $32.90 $33.27 $34.27
375 3 $33.26 $34.63 $35.02 $36.07
375 4 $35.01 $36.45 $36.86 $37.97
375 5 $36.85 $6,387.33 $76,648.00 $38.37 $6,650.80 $79,809.60 $38.80 $6,725.33 $80,704.00 $39.97 $6,928.13 $83,137.60
373 non-exempt Facilities Maint-L 1 $38.90 $41.15 $42.29 $43.58
373 2 $40.95 $43.32 $44.52 $45.87
373 3 $43.11 $45.60 $46.86 $48.28
373 4 $45.38 $48.00 $49.33 $50.82
373 5 $47.77 $8,280.13 $99,361.60 $50.53 $8,758.53 $105,102.40 $51.93 $9,001.20 $108,014.40 $53.49 $9,271.60 $111,259.20
377 non-exempt Facilities Painter 1 $30.11 $31.85 $32.75 $33.73
377 2 $31.69 $33.53 $34.47 $35.50
377 3 $33.36 $35.29 $36.28 $37.37
377 4 $35.12 $37.15 $38.19 $39.34
377 5 $36.97 $6,408.13 $76,897.60 $39.11 $6,779.07 $81,348.80 $40.20 $6,968.00 $83,616.00 $41.41 $7,177.73 $86,132.80
376 non-exempt Facilities Tech 1 $32.57 $33.79 $34.04 $35.07
376 2 $34.28 $35.57 $35.83 $36.92
376 3 $36.08 $37.44 $37.72 $38.86
376 4 $37.98 $39.41 $39.70 $40.90
376 5 $39.98 $6,929.87 $83,158.40 $41.48 $41.79 $43.05
462 non-exempt Field Service Pers WGW 1 $27.89 $29.51 $30.31 $31.23
462 2 $29.36 $31.06 $31.91 $32.87
462 3 $30.91 $32.69 $33.59 $34.60
462 4 $32.54 $34.41 $35.36 $36.42
462 5 $34.25 $5,936.67 $71,240.00 $36.22 $6,278.13 $75,337.60 $37.22 $6,451.47 $77,417.60 $38.34 $6,645.60 $79,747.20
383 non-exempt Fleet Svcs Coord 1 $28.97 $29.84 $29.84 $30.73
383 2 $30.49 $31.41 $31.41 $32.35
383 3 $32.09 $33.06 $33.06 $34.05
383 4 $33.78 $34.80 $34.80 $35.84
383 5 $35.56 $6,163.73 $73,964.80 $36.63 $6,349.20 $76,190.40 $36.63 $6,349.20 $76,190.40 $37.73 $6,539.87 $78,478.40
489 non-exempt Gas System Tech 1 $30.39 $32.14 $33.01 $34.01
489 2 $31.99 $33.83 $34.75 $35.80
489 3 $33.67 $35.61 $36.58 $37.68
489 4 $35.44 $37.48 $38.50 $39.66
489 5 $37.31 $6,467.07 $77,604.80 $39.45 $6,838.00 $82,056.00 $40.53 $7,025.20 $84,302.40 $41.75 $7,236.67 $86,840.00
TBD non-exempt Assistant Gas Measurement and Control Technician 1 $30.39 $32.14 $33.58 $34.59
2 $31.99 $33.83 $35.35 $36.41
3 $33.67 $35.61 $37.21 $38.33
4 $35.44 $37.48 $39.17 $40.35
5 $37.31 $6,467.07 $77,604.80 $39.45 $6,838.00 $82,056.00 $41.23 $7,146.53 $85,758.40 $42.47 $7,361.47 $88,337.60
463 non-exempt Gas System Tech II 1 $31.91 $33.74 $34.68 $35.72
463 2 $33.59 $35.52 $36.50 $37.60
463 3 $35.36 $37.39 $38.42 $39.58
463 4 $37.22 $39.36 $40.44 $41.66
463 5 $39.18 $6,791.20 $81,494.40 $41.43 $7,181.20 $86,174.40 $42.57 $7,378.80 $88,545.60 $43.85 $7,600.67 $91,208.00
TBD non-exempt Gas Measurement and Control Technician 1 $31.91 $33.74 $33.58 $36.33
2 $33.59 $35.52 $35.35 $38.24
3 $35.36 $37.39 $37.21 $40.25
4 $37.22 $39.36 $39.17 $42.37
5 $39.18 $6,791.20 $81,494.40 $41.43 $7,181.20 $86,174.40 $43.30 $7,505.33 $90,064.00 $44.60 $7,730.67 $92,768.00
TBD non-exempt Assistant Gas and Water Measurement and Control Technician 1 $31.91 $33.74 $35.27 $36.33
2 $33.59 $35.52 $37.13 $38.24
3 $35.36 $37.39 $39.08 $40.25
4 $37.22 $39.36 $41.14 $42.37
5 $39.18 $6,791.20 $81,494.40 $41.43 $7,181.20 $86,174.40 $43.30 $7,505.33 $90,064.00 $44.60 $7,730.67 $92,768.00
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
TBD non-exempt Gas and Water Measurement and Control Tech 1 $30.39 $32.14 $37.04 $38.16
2 $31.99 $33.83 $38.99 $40.17
3 $33.67 $35.61 $41.04 $42.28
4 $35.44 $37.48 $43.20 $44.50
5 $37.31 $6,467.07 $77,604.80 $39.45 $6,838.00 $82,056.00 $45.47 $7,881.47 $94,577.60 $46.84 $8,118.93 $97,427.20
TBD non-exempt Gas and Water Measurement and Control Tech - Lead 1 ------$39.63 $40.82
2 ------$41.72 $42.97
3 ------$43.92 $45.23
4 ------$46.23 $47.61
5 ------$48.66 $8,434.40 $101,212.80 $50.12 $8,687.47 $104,249.60
398 non-exempt Geographic Inform Syst Specialist 1 $40.98 $43.34 $44.53 $45.88
398 2 $43.14 $45.62 $46.87 $48.29
398 3 $45.41 $48.02 $49.34 $50.83
398 4 $47.80 $50.55 $51.94 $53.50
398 5 $50.32 $8,722.13 $104,665.60 $53.21 $9,223.07 $110,676.80 $54.67 $9,476.13 $113,713.60 $56.32 $9,762.13 $117,145.60
390 non-exempt Heavy Equip Oper 1 $31.49 $33.26 $34.13 $35.15
390 2 $33.15 $35.01 $35.93 $37.00
390 3 $34.89 $36.85 $37.82 $38.95
390 4 $36.73 $38.79 $39.81 $41.00
390 5 $38.66 $6,701.07 $80,412.80 $40.83 $7,077.20 $84,926.40 $41.90 $7,262.67 $87,152.00 $43.16 $7,481.07 $89,772.80
391 non-exempt Heavy Equip Oper-L 1 $33.68 $35.58 $36.50 $37.60
391 2 $35.45 $37.45 $38.42 $39.58
391 3 $37.32 $39.42 $40.44 $41.66
391 4 $39.28 $41.49 $42.57 $43.85
391 5 $41.35 $7,167.33 $86,008.00 $43.67 $7,569.47 $90,833.60 $44.81 $7,767.07 $93,204.80 $46.16 $8,001.07 $96,012.80
389 non-exempt HEO/Installer Repairer 1 $34.58 $36.58 $37.57 $38.70
389 2 $36.40 $38.50 $39.55 $40.74
389 3 $38.32 $40.53 $41.63 $42.88
389 4 $40.34 $42.66 $43.82 $45.14
389 5 $42.46 $7,359.73 $88,316.80 $44.90 $7,782.67 $93,392.00 $46.13 $7,995.87 $95,950.40 $47.52 $8,236.80 $98,841.60
508 non-exempt Ind Waste Inspec 1 $31.65 $33.06 $33.54 $34.56
508 2 $33.32 $34.80 $35.30 $36.38
508 3 $35.07 $36.63 $37.16 $38.29
508 4 $36.92 $38.56 $39.12 $40.30
508 5 $38.86 $6,735.73 $80,828.80 $40.59 $7,035.60 $84,427.20 $41.18 $7,137.87 $85,654.40 $42.42 $7,352.80 $88,233.60
258 non-exempt Ind Waste Invtgtr 1 $35.58 $37.15 $37.69 $38.83
258 2 $37.45 $39.10 $39.67 $40.87
258 3 $39.42 $41.16 $41.76 $43.02
258 4 $41.49 $43.33 $43.96 $45.28
258 5 $43.67 $7,569.47 $90,833.60 $45.61 $7,905.73 $94,868.80 $46.27 $8,020.13 $96,241.60 $47.66 $8,261.07 $99,132.80
365 non-exempt Industrial Waste Technician 1 $28.58 $29.85 $30.27 $31.19
365 2 $30.08 $31.42 $31.86 $32.83
365 3 $31.66 $33.07 $33.54 $34.56
365 4 $33.33 $34.81 $35.31 $36.38
365 5 $35.08 $6,080.53 $72,966.40 $36.64 $6,350.93 $76,211.20 $37.17 $6,442.80 $77,313.60 $38.29 $6,636.93 $79,643.20
227 non-exempt Inspector, Field Svc 1 $34.47 $36.05 $36.61 $37.72
227 2 $36.28 $37.95 $38.54 $39.70
227 3 $38.19 $39.95 $40.57 $41.79
227 4 $40.20 $42.05 $42.71 $43.99
227 5 $42.32 $7,335.47 $88,025.60 $44.26 $7,671.73 $92,060.80 $44.96 $7,793.07 $93,516.80 $46.31 $8,027.07 $96,324.80
308 non-exempt Instrum Elec 1 $34.16 $35.57 $35.96 $37.05
308 2 $35.96 $37.44 $37.85 $39.00
308 3 $37.85 $39.41 $39.84 $41.05
308 4 $39.84 $41.48 $41.94 $43.21
308 5 $41.94 $7,269.60 $87,235.20 $43.66 $7,567.73 $90,812.80 $44.15 $7,652.67 $91,832.00 $45.48 $7,883.20 $94,598.40
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
293 non-exempt Junior Museum & Zoo Educator 1 $26.71 $27.76 $28.02 $28.86
293 2 $28.12 $29.22 $29.49 $30.38
293 3 $29.60 $30.76 $31.04 $31.98
293 4 $31.16 $32.38 $32.67 $33.66
293 5 $32.80 $5,685.33 $68,224.00 $34.08 $5,907.20 $70,886.40 $34.39 $5,960.93 $71,531.20 $35.43 $6,141.20 $73,694.40
503 non-exempt Laboratory Tech Wqc 1 $31.40 $32.37 $32.40 $33.36
503 2 $33.05 $34.07 $34.10 $35.12
503 3 $34.79 $35.86 $35.89 $36.97
503 4 $36.62 $37.75 $37.78 $38.92
503 5 $38.55 $6,682.00 $80,184.00 $39.74 $6,888.27 $82,659.20 $39.77 $6,893.47 $82,721.60 $40.97 $7,101.47 $85,217.60
413 non-exempt Landfill Technician 1 $34.91 $36.47 $37.01 $38.13
413 2 $36.75 $38.39 $38.96 $40.14
413 3 $38.68 $40.41 $41.01 $42.25
413 4 $40.72 $42.54 $43.17 $44.47
413 5 $42.86 $7,429.07 $89,148.80 $44.78 $7,761.87 $93,142.40 $45.44 $7,876.27 $94,515.20 $46.81 $8,113.73 $97,364.80
254 non-exempt Librarian 1 $26.84 $27.80 $27.96 $28.79
254 2 $28.25 $29.26 $29.43 $30.31
254 3 $29.74 $30.80 $30.98 $31.91
254 4 $31.30 $32.42 $32.61 $33.59
254 5 $32.95 $5,711.33 $68,536.00 $34.13 $5,915.87 $70,990.40 $34.33 $5,950.53 $71,406.40 $35.36 $6,129.07 $73,548.80
252 non-exempt Library Associate 1 $24.52 $25.27 $25.27 $26.03
252 2 $25.81 $26.60 $26.60 $27.40
252 3 $27.17 $28.00 $28.00 $28.84
252 4 $28.60 $29.47 $29.47 $30.36
252 5 $30.11 $5,219.07 $62,628.80 $31.02 $5,376.80 $64,521.60 $31.02 $5,376.80 $64,521.60 $31.96 $5,539.73 $66,476.80
253 non-exempt Library Specialist 1 $23.20 $23.90 $23.90 $24.62
253 2 $24.42 $25.16 $25.16 $25.92
253 3 $25.71 $26.48 $26.48 $27.28
253 4 $27.06 $27.87 $27.87 $28.72
253 5 $28.48 $4,936.53 $59,238.40 $29.34 $5,085.60 $61,027.20 $29.34 $5,085.60 $61,027.20 $30.23 $5,239.87 $62,878.40
541 non-exempt Lineper/Cable Spl 1 $42.81 $44.75 $45.45 $46.83
541 2 $45.06 $47.11 $47.84 $49.29
541 3 $47.43 $49.59 $50.36 $51.88
541 4 $49.93 $52.20 $53.01 $54.61
541 5 $52.56 $9,110.40 $109,324.80 $54.95 $9,524.67 $114,296.00 $55.80 $9,672.00 $116,064.00 $57.48 $9,963.20 $119,558.40
542 non-exempt Lineper/Cable Spl-L 1 $45.82 $47.90 $48.63 $50.09
542 2 $48.23 $50.42 $51.19 $52.73
542 3 $50.77 $53.07 $53.88 $55.51
542 4 $53.44 $55.86 $56.72 $58.43
542 5 $56.25 $9,750.00 $117,000.00 $58.80 $10,192.00 $122,304.00 $59.71 $10,349.73 $124,196.80 $61.51 $10,661.73 $127,940.80
531 non-exempt Lineperson/Cable Spl-T 1 $40.78 $42.63 $43.29 $44.59
531 2 $42.93 $44.87 $45.57 $46.94
531 3 $45.19 $47.23 $47.97 $49.41
531 4 $47.57 $49.72 $50.49 $52.01
531 5 $50.07 $8,678.80 $104,145.60 $52.34 $9,072.27 $108,867.20 $53.15 $9,212.67 $110,552.00 $54.75 $9,490.00 $113,880.00
532 non-exempt Lineperson/Cable Spl-TL 1 $43.61 $45.59 $46.30 $47.69
532 2 $45.91 $47.99 $48.74 $50.20
532 3 $48.33 $50.52 $51.30 $52.84
532 4 $50.87 $53.18 $54.00 $55.62
532 5 $53.55 $9,282.00 $111,384.00 $55.98 $9,703.20 $116,438.40 $56.84 $9,852.27 $118,227.20 $58.55 $10,148.67 $121,784.00
528 non-exempt Lnper/Cbl Spl-Appren 1 $36.77 $38.45 $39.04 $40.21
528 2 $38.71 $40.47 $41.09 $42.33
528 3 $40.75 $42.60 $43.25 $44.56
528 4 $42.89 $44.84 $45.53 $46.90
528 5 $45.15 $7,826.00 $93,912.00 $47.20 $8,181.33 $98,176.00 $47.93 $8,307.87 $99,694.40 $49.37 $8,557.47 $102,689.60
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
213 non-exempt Mailing Svcs Spec 1 $20.48 $21.12 $21.16 $21.78
213 2 $21.56 $22.23 $22.27 $22.93
213 3 $22.69 $23.40 $23.44 $24.14
213 4 $23.88 $24.63 $24.67 $25.41
213 5 $25.14 $4,357.60 $52,291.20 $25.93 $4,494.53 $53,934.40 $25.97 $4,501.47 $54,017.60 $26.75 $4,636.67 $55,640.00
291 non-exempt Maintenance Mechanic-Welding 1 $33.53 $35.46 $36.44 $37.54
291 2 $35.29 $37.33 $38.36 $39.52
291 3 $37.15 $39.29 $40.38 $41.60
291 4 $39.11 $41.36 $42.50 $43.79
291 5 $41.17 $7,136.13 $85,633.60 $43.54 $7,546.93 $90,563.20 $44.74 $7,754.93 $93,059.20 $46.09 $7,988.93 $95,867.20
346 non-exempt Management Assistant 1 $30.44 $31.40 $31.45 $32.40
346 2 $32.04 $33.05 $33.11 $34.10
346 3 $33.73 $34.79 $34.85 $35.89
346 4 $35.50 $36.62 $36.68 $37.78
346 5 $37.37 $6,477.47 $77,729.60 $38.55 $6,682.00 $80,184.00 $38.61 $6,692.40 $80,308.80 $39.77 $6,893.47 $82,721.60
3460 non-exempt Management Assistant - S 1 $30.44 $31.40 $31.45 $32.40
3460 2 $32.04 $33.05 $33.11 $34.10
3460 3 $33.73 $34.79 $34.85 $35.89
3460 4 $35.50 $36.62 $36.68 $37.78
3460 5 $37.37 $6,477.47 $77,729.60 $38.55 $6,682.00 $80,184.00 $38.61 $6,692.40 $80,308.80 $39.77 $6,893.47 $82,721.60
216 non-exempt Marketing Eng 1 $43.64 $45.17 $45.37 $46.74
216 2 $45.94 $47.55 $47.76 $49.20
216 3 $48.36 $50.05 $50.27 $51.79
216 4 $50.91 $52.68 $52.92 $54.52
216 5 $53.59 $9,288.93 $111,467.20 $55.45 $9,611.33 $115,336.00 $55.71 $9,656.40 $115,876.80 $57.39 $9,947.60 $119,371.20
241 non-exempt Meter Reader 1 $24.31 $25.09 $25.14 $25.90
241 2 $25.59 $26.41 $26.46 $27.26
241 3 $26.94 $27.80 $27.85 $28.69
241 4 $28.36 $29.26 $29.32 $30.20
241 5 $29.85 $5,174.00 $62,088.00 $30.80 $5,338.67 $64,064.00 $30.86 $5,349.07 $64,188.80 $31.79 $5,510.27 $66,123.20
240 non-exempt Meter Reader-Lead 1 $26.01 $26.84 $26.89 $27.71
240 2 $27.38 $28.25 $28.31 $29.17
240 3 $28.82 $29.74 $29.80 $30.70
240 4 $30.34 $31.31 $31.37 $32.32
240 5 $31.94 $5,536.27 $66,435.20 $32.96 $5,713.07 $68,556.80 $33.02 $5,723.47 $68,681.60 $34.02 $5,896.80 $70,761.60
369 non-exempt Meter Shop Lead 1 $29.29 $30.64 $31.14 $32.07
369 2 $30.83 $32.25 $32.78 $33.76
369 3 $32.45 $33.95 $34.50 $35.54
369 4 $34.16 $35.74 $36.32 $37.41
369 5 $35.96 $6,233.07 $74,796.80 $37.62 $6,520.80 $78,249.60 $38.23 $6,626.53 $79,518.40 $39.38 $6,825.87 $81,910.40
552 non-exempt Metering Technician 1 $40.36 $42.19 $42.85 $44.14
552 2 $42.48 $44.41 $45.10 $46.46
552 3 $44.72 $46.75 $47.47 $48.90
552 4 $47.07 $49.21 $49.97 $51.47
552 5 $49.55 $8,588.67 $103,064.00 $51.80 $8,978.67 $107,744.00 $52.60 $9,117.33 $109,408.00 $54.18 $9,391.20 $112,694.40
553 non-exempt Metering Technician – Lead 1 $43.20 $45.16 $45.87 $47.23
553 2 $45.47 $47.54 $48.28 $49.72
553 3 $47.86 $50.04 $50.82 $52.34
553 4 $50.38 $52.67 $53.49 $55.09
553 5 $53.03 $9,191.87 $110,302.40 $55.44 $9,609.60 $115,315.20 $56.30 $9,758.67 $117,104.00 $57.99 $10,051.60 $120,619.20
384 non-exempt Mobile Service Tech 1 $34.41 $35.44 $35.44 $36.52
384 2 $36.22 $37.31 $37.31 $38.44
384 3 $38.13 $39.27 $39.27 $40.46
384 4 $40.14 $41.34 $41.34 $42.59
384 5 $42.25 $7,323.33 $87,880.00 $43.52 $7,543.47 $90,521.60 $43.52 $7,543.47 $90,521.60 $44.83 $7,770.53 $93,246.40
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
381 non-exempt Motor Equip Mech-L 1 $35.06 $36.11 $36.11 $37.21
381 2 $36.91 $38.01 $38.01 $39.17
381 3 $38.85 $40.01 $40.01 $41.23
381 4 $40.89 $42.12 $42.12 $43.40
381 5 $43.04 $7,460.27 $89,523.20 $44.34 $7,685.60 $92,227.20 $44.34 $7,685.60 $92,227.20 $45.68 $7,917.87 $95,014.40
286 non-exempt Motor Equipment Mechanic I 1 $30.36 $31.27 $31.27 $32.21
286 2 $31.96 $32.92 $32.92 $33.91
286 3 $33.64 $34.65 $34.65 $35.69
286 4 $35.41 $36.47 $36.47 $37.57
286 5 $37.27 $6,460.13 $77,521.60 $38.39 $6,654.27 $79,851.20 $38.39 $6,654.27 $79,851.20 $39.55 $6,855.33 $82,264.00
287 non-exempt Motor Equipment Mechanic II 1 $32.78 $33.76 $33.76 $34.78
287 2 $34.50 $35.54 $35.54 $36.61
287 3 $36.32 $37.41 $37.41 $38.54
287 4 $38.23 $39.38 $39.38 $40.57
287 5 $40.24 $6,974.93 $83,699.20 $41.45 $7,184.67 $86,216.00 $41.45 $7,184.67 $86,216.00 $42.70 $7,401.33 $88,816.00
230 non-exempt Offset Equip Op 1 $23.22 $23.94 $23.98 $24.70
230 2 $24.44 $25.20 $25.24 $26.00
230 3 $25.73 $26.53 $26.57 $27.37
230 4 $27.08 $27.93 $27.97 $28.81
230 5 $28.50 $4,940.00 $59,280.00 $29.40 $5,096.00 $61,152.00 $29.44 $5,102.93 $61,235.20 $30.33 $5,257.20 $63,086.40
543 non-exempt Overhead Underground Troubleman 1 $44.98 $47.03 $47.75 $49.18
543 2 $47.35 $49.50 $50.26 $51.77
543 3 $49.84 $52.10 $52.91 $54.49
543 4 $52.46 $54.84 $55.69 $57.36
543 5 $55.22 $9,571.47 $114,857.60 $57.73 $10,006.53 $120,078.40 $58.62 $10,160.80 $121,929.60 $60.38 $10,465.87 $125,590.40
452 non-exempt Park Maint - Lead 1 $29.79 $30.78 $30.88 $31.82
452 2 $31.36 $32.40 $32.50 $33.49
452 3 $33.01 $34.11 $34.21 $35.25
452 4 $34.75 $35.90 $36.01 $37.10
452 5 $36.58 $6,340.53 $76,086.40 $37.79 $6,550.27 $78,603.20 $37.91 $6,571.07 $78,852.80 $39.05 $6,768.67 $81,224.00
451 non-exempt Park Maint Person 1 $25.70 $26.55 $26.64 $27.45
451 2 $27.05 $27.95 $28.04 $28.89
451 3 $28.47 $29.42 $29.52 $30.41
451 4 $29.97 $30.97 $31.07 $32.01
451 5 $31.55 $5,468.67 $65,624.00 $32.60 $5,650.67 $67,808.00 $32.70 $5,668.00 $68,016.00 $33.69 $5,839.60 $70,075.20
281 non-exempt Park Ranger 1 $28.79 $29.66 $29.66 $30.55
281 2 $30.30 $31.22 $31.22 $32.16
281 3 $31.89 $32.86 $32.86 $33.85
281 4 $33.57 $34.59 $34.59 $35.63
281 5 $35.34 $6,125.60 $73,507.20 $36.41 $6,311.07 $75,732.80 $36.41 $6,311.07 $75,732.80 $37.51 $6,501.73 $78,020.80
570 non-exempt Parking Operations Lead 1 $44.20 $46.31 $47.14 $48.55
570 2 $46.53 $48.75 $49.62 $51.11
570 3 $48.98 $51.32 $52.23 $53.80
570 4 $51.56 $54.02 $54.98 $56.63
570 5 $54.27 $9,406.80 $112,881.60 $56.86 $9,855.73 $118,268.80 $57.87 $10,030.80 $120,369.60 $59.61 $10,332.40 $123,988.80
460 non-exempt Parks/Golf Crew-Lead 1 $27.96 $28.90 $28.98 $29.86
460 2 $29.43 $30.42 $30.50 $31.43
460 3 $30.98 $32.02 $32.11 $33.08
460 4 $32.61 $33.70 $33.80 $34.82
460 5 $34.33 $5,950.53 $71,406.40 $35.47 $6,148.13 $73,777.60 $35.58 $6,167.20 $74,006.40 $36.65 $6,352.67 $76,232.00
348 non-exempt Payroll Analyst 1 $29.15 $30.03 $30.03 $30.93
348 2 $30.68 $31.61 $31.61 $32.56
348 3 $32.29 $33.27 $33.27 $34.27
348 4 $33.99 $35.02 $35.02 $36.07
348 5 $35.78 $6,201.87 $74,422.40 $36.86 $6,389.07 $76,668.80 $36.86 $6,389.07 $76,668.80 $37.97 $6,581.47 $78,977.60
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
3480 non-exempt Payroll Analyst - S 1 29.15 $30.03 $30.03 $30.93
3480 2 30.68 $31.61 $31.61 $32.56
3480 3 32.29 $33.27 $33.27 $34.27
3480 4 33.99 $35.02 $35.02 $36.07
3480 5 35.78 $6,201.87 $74,422.40 $36.86 $6,389.07 $76,668.80 $36.86 $6,389.07 $76,668.80 $37.97 $6,581.47 $78,977.60
352 non-exempt Planner 1 $38.43 $39.85 $40.15 $41.34
352 2 $40.45 $41.95 $42.26 $43.52
352 3 $42.58 $44.16 $44.48 $45.81
352 4 $44.82 $46.48 $46.82 $48.22
352 5 $47.18 $8,177.87 $98,134.40 $48.93 $8,481.20 $101,774.40 $49.28 $8,541.87 $102,502.40 $50.76 $8,798.40 $105,580.80
347 non-exempt Planning Arborist 1 $41.76 $43.66 $44.35 $45.70
347 2 $43.96 $45.96 $46.68 $48.10
347 3 $46.27 $48.38 $49.14 $50.63
347 4 $48.70 $50.93 $51.73 $53.29
347 5 $51.26 $8,885.07 $106,620.80 $53.61 $9,292.40 $111,508.80 $54.45 $9,438.00 $113,256.00 $56.09 $9,722.27 $116,667.20
3470 non-exempt Planning Arborist - S 1 $41.76 $43.66 $44.35 $45.70
3470 2 $43.96 $45.96 $46.68 $48.10
3470 3 $46.27 $48.38 $49.14 $50.63
3470 4 $48.70 $50.93 $51.73 $53.29
3470 5 $51.26 $8,885.07 $106,620.80 $53.61 $9,292.40 $111,508.80 $54.45 $9,438.00 $113,256.00 $56.09 $9,722.27 $116,667.20
304 non-exempt Plans Check Engr 1 $42.38 $43.85 $44.07 $45.39
304 2 $44.61 $46.16 $46.39 $47.78
304 3 $46.96 $48.59 $48.83 $50.29
304 4 $49.43 $51.15 $51.40 $52.94
304 5 $52.03 $9,018.53 $108,222.40 $53.84 $9,332.27 $111,987.20 $54.10 $9,377.33 $112,528.00 $55.73 $9,659.87 $115,918.40
513 non-exempt Plans Examiner 1 $36.22 $37.88 $38.48 $39.63
513 2 $38.13 $39.87 $40.51 $41.72
513 3 $40.14 $41.97 $42.64 $43.92
513 4 $42.25 $44.18 $44.88 $46.23
513 5 $44.47 $7,708.13 $92,497.60 $46.51 $8,061.73 $96,740.80 $47.24 $8,188.27 $98,259.20 $48.66 $8,434.40 $101,212.80
517 non-exempt Plant Mechanic 1 $34.53 $35.58 $35.58 $36.64
517 2 $36.35 $37.45 $37.45 $38.57
517 3 $38.26 $39.42 $39.42 $40.60
517 4 $40.27 $41.49 $41.49 $42.74
517 5 $42.39 $7,347.60 $88,171.20 $43.67 $7,569.47 $90,833.60 $43.67 $7,569.47 $90,833.60 $44.99 $7,798.27 $93,579.20
321 non-exempt Police Records Specialist - Lead 1 $27.00 $28.29 $28.79 $29.68
321 2 $28.42 $29.78 $30.31 $31.24
321 3 $29.92 $31.35 $31.91 $32.88
321 4 $31.49 $33.00 $33.59 $34.61
321 5 $33.15 $5,746.00 $68,952.00 $34.74 $6,021.60 $72,259.20 $35.36 $6,129.07 $73,548.80 $36.43 $6,314.53 $75,774.40
313 non-exempt Police Records Specialist I 1 $23.98 $25.13 $25.57 $26.34
313 2 $25.24 $26.45 $26.92 $27.73
313 3 $26.57 $27.84 $28.34 $29.19
313 4 $27.97 $29.31 $29.83 $30.73
313 5 $29.44 $5,102.93 $61,235.20 $30.85 $5,347.33 $64,168.00 $31.40 $5,442.67 $65,312.00 $32.35 $5,607.33 $67,288.00
314 non-exempt Police Records Specialist II 1 $25.23 $26.45 $26.91 $27.72
314 2 $26.56 $27.84 $28.33 $29.18
314 3 $27.96 $29.30 $29.82 $30.72
314 4 $29.43 $30.84 $31.39 $32.34
314 5 $30.98 $5,369.87 $64,438.40 $32.46 $5,626.40 $67,516.80 $33.04 $5,726.93 $68,723.20 $34.04 $5,900.27 $70,803.20
246 non-exempt Power Engr 1 $46.60 $48.22 $48.45 $49.91
246 2 $49.05 $50.76 $51.00 $52.54
246 3 $51.63 $53.43 $53.68 $55.30
246 4 $54.35 $56.24 $56.51 $58.21
246 5 $57.21 $9,916.40 $118,996.80 $59.20 $10,261.33 $123,136.00 $59.48 $10,309.87 $123,718.40 $61.27 $10,620.13 $127,441.60
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
270 non-exempt Prod Arts/Sci Prog 1 $32.39 $33.66 $33.97 $34.99
270 2 $34.09 $35.43 $35.76 $36.83
270 3 $35.88 $37.29 $37.64 $38.77
270 4 $37.77 $39.25 $39.62 $40.81
270 5 $39.76 $6,891.73 $82,700.80 $41.32 $7,162.13 $85,945.60 $41.70 $7,228.00 $86,736.00 $42.96 $7,446.40 $89,356.80
232 non-exempt Prog-Analyst 1 $39.44 $41.71 $42.85 $44.14
232 2 $41.52 $43.91 $45.11 $46.46
232 3 $43.71 $46.22 $47.48 $48.91
232 4 $46.01 $48.65 $49.98 $51.48
232 5 $48.43 $8,394.53 $100,734.40 $51.21 $8,876.40 $106,516.80 $52.61 $9,119.07 $109,428.80 $54.19 $9,392.93 $112,715.20
265 non-exempt Program Assistant 1 $25.00 $25.79 $25.82 $26.62
265 2 $26.32 $27.15 $27.18 $28.02
265 3 $27.70 $28.58 $28.61 $29.49
265 4 $29.16 $30.08 $30.12 $31.04
265 5 $30.69 $5,319.60 $63,835.20 $31.66 $5,487.73 $65,852.80 $31.71 $5,496.40 $65,956.80 $32.67 $5,662.80 $67,953.60
302 non-exempt Program Assistant I 1 $26.51 $27.35 $27.40 $28.22
302 2 $27.91 $28.79 $28.84 $29.71
302 3 $29.38 $30.31 $30.36 $31.27
302 4 $30.93 $31.91 $31.96 $32.92
302 5 $32.56 $5,643.73 $67,724.80 $33.59 $5,822.27 $69,867.20 $33.64 $5,830.93 $69,971.20 $34.65 $6,006.00 $72,072.00
303 non-exempt Program Assistant II 1 $28.51 $29.41 $29.44 $30.33
303 2 $30.01 $30.96 $30.99 $31.93
303 3 $31.59 $32.59 $32.62 $33.61
303 4 $33.25 $34.30 $34.34 $35.38
303 5 $35.00 $6,066.67 $72,800.00 $36.10 $6,257.33 $75,088.00 $36.15 $6,266.00 $75,192.00 $37.24 $6,454.93 $77,459.20
368 non-exempt Program Coordinator 1 $27.96 $29.06 $29.33 $30.21
368 2 $29.43 $30.59 $30.87 $31.80
368 3 $30.98 $32.20 $32.49 $33.47
368 4 $32.61 $33.89 $34.20 $35.23
368 5 $34.33 $5,950.53 $71,406.40 $35.67 $6,182.80 $74,193.60 $36.00 $6,240.00 $74,880.00 $37.08 $6,427.20 $77,126.40
349 non-exempt Project Engineer 1 $46.99 $48.62 $48.83 $50.30
349 2 $49.46 $51.18 $51.40 $52.95
349 3 $52.06 $53.87 $54.11 $55.74
349 4 $54.80 $56.70 $56.96 $58.67
349 5 $57.68 $9,997.87 $119,974.40 $59.68 $10,344.53 $124,134.40 $59.96 $10,393.07 $124,716.80 $61.76 $10,705.07 $128,460.80
3490 non-exempt Project Engineer - S 1 $46.99 $48.62 $48.83 $50.30
3490 2 $49.46 $51.18 $51.40 $52.95
3490 3 $52.06 $53.87 $54.11 $55.74
3490 4 $54.80 $56.70 $56.96 $58.67
3490 5 $57.68 $9,997.87 $119,974.40 $59.68 $10,344.53 $124,134.40 $59.96 $10,393.07 $124,716.80 $61.76 $10,705.07 $128,460.80
209 non-exempt Property Evid Tech 1 $26.11 $27.35 $27.84 $28.68
209 2 $27.48 $28.79 $29.31 $30.19
209 3 $28.93 $30.31 $30.85 $31.78
209 4 $30.45 $31.90 $32.47 $33.45
209 5 $32.05 $5,555.33 $66,664.00 $33.58 $5,820.53 $69,846.40 $34.18 $5,924.53 $71,094.40 $35.21 $6,103.07 $73,236.80
315 non-exempt Public Safety Dispatcher - Lead 1 $40.54 $41.76 $41.76 $43.02
2 $42.67 $43.96 $43.96 $45.28
3 $44.92 $46.27 $46.27 $47.66
4 $47.28 $48.71 $48.71 $50.17
5 $49.77 $8,626.80 $103,521.60 $51.27 $8,886.80 $106,641.60 $51.27 $8,886.80 $106,641.60 $52.81 $9,153.73 $109,844.80
6 $51.02 $52.56 $52.56 $54.14
7 $52.29 $53.86 $53.86 $55.48
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
298 non-exempt Public Safety Dispatcher I 1 $34.30 $35.33 $35.33 $36.40
2 $36.10 $37.19 $37.19 $38.32
3 $38.00 $39.15 $39.15 $40.34
4 $40.00 $41.21 $41.21 $42.46
5 $42.11 $7,299.07 $87,588.80 $43.38 $7,519.20 $90,230.40 $43.38 $7,519.20 $90,230.40 $44.69 $7,746.27 $92,955.20
6 $43.17 $44.47 $44.47 $45.81
7 $44.25 $45.58 $45.58 $46.95
316 non-exempt Public Safety Dispatcher II 1 $36.11 $37.21 $37.21 $38.33
2 $38.01 $39.17 $39.17 $40.35
3 $40.01 $41.23 $41.23 $42.47
4 $42.12 $43.40 $43.40 $44.71
5 $44.34 $7,685.60 $92,227.20 $45.68 $7,917.87 $95,014.40 $45.68 $7,917.87 $95,014.40 $47.06 $8,157.07 $97,884.80
6 $45.44 $46.81 $46.81 $48.22
7 $46.58 $47.98 $47.98 $49.42
262 non-exempt Resource Planner 1 $47.19 $48.61 $48.61 $50.07
2 $49.67 $51.17 $51.17 $52.71
3 $52.28 $53.86 $53.86 $55.48
4 $55.03 $56.69 $56.69 $58.40
5 $57.93 $10,041.20 $120,494.40 $59.67 $10,342.80 $124,113.60 $59.67 $10,342.80 $124,113.60 $61.47 $10,654.80 $127,857.60
366 non-exempt Restoration Lead 1 $33.71 $35.60 $36.55 $37.64
2 $35.48 $37.47 $38.47 $39.62
3 $37.35 $39.44 $40.49 $41.71
4 $39.32 $41.52 $42.62 $43.90
5 $41.39 $7,174.27 $86,091.20 $43.71 $7,576.40 $90,916.80 $44.86 $7,775.73 $93,308.80 $46.21 $8,009.73 $96,116.80
554 non-exempt SCADA Technologist 1 $47.94 $50.69 $52.08 $53.66
2 $50.46 $53.36 $54.82 $56.48
3 $53.12 $56.17 $57.71 $59.45
4 $55.92 $59.13 $60.75 $62.58
5 $58.86 $10,202.40 $122,428.80 $62.24 $10,788.27 $129,459.20 $63.95 $11,084.67 $133,016.00 $65.87 $11,417.47 $137,009.60
385 non-exempt Senior Fleet Services Coordinator 1 $33.27 $34.27 $34.27 $35.29
2 $35.02 $36.07 $36.07 $37.15
3 $36.86 $37.97 $37.97 $39.11
4 $38.80 $39.97 $39.97 $41.17
5 $40.84 $7,078.93 $84,947.20 $42.07 $7,292.13 $87,505.60 $42.07 $7,292.13 $87,505.60 $43.34 $7,512.27 $90,147.20
461 non-exempt Sprinkler Sys Repr 1 $26.14 $27.00 $27.08 $27.89
2 $27.52 $28.42 $28.51 $29.36
3 $28.97 $29.92 $30.01 $30.91
4 $30.49 $31.49 $31.59 $32.54
5 $32.09 $5,562.27 $66,747.20 $33.15 $5,746.00 $68,952.00 $33.25 $5,763.33 $69,160.00 $34.25 $5,936.67 $71,240.00
360 non-exempt Sr Buyer 1 $34.87 $35.93 $35.93 $37.02
2 $36.70 $37.82 $37.82 $38.97
3 $38.63 $39.81 $39.81 $41.02
4 $40.66 $41.90 $41.91 $43.18
5 $42.80 $7,418.67 $89,024.00 $44.10 $7,644.00 $91,728.00 $44.12 $7,647.47 $91,769.60 $45.45 $7,878.00 $94,536.00
3600 non-exempt Sr Buyer - S 1 $34.87 $35.93 $35.93 $37.02
2 $36.70 $37.82 $37.82 $38.97
3 $38.63 $39.81 $39.81 $41.02
4 $40.66 $41.90 $41.91 $43.18
5 $42.80 $7,418.67 $89,024.00 $44.10 $7,644.00 $91,728.00 $44.12 $7,647.47 $91,769.60 $45.45 $7,878.00 $94,536.00
224 non-exempt Sr Chemist 1 $39.02 $40.20 $40.23 $41.45
2 $41.07 $42.32 $42.35 $43.63
3 $43.23 $44.55 $44.58 $45.93
4 $45.50 $46.89 $46.93 $48.35
5 $47.89 $8,300.93 $99,611.20 $49.36 $8,555.73 $102,668.80 $49.40 $8,562.67 $102,752.00 $50.89 $8,820.93 $105,851.20
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
544 non-exempt Sr Industrial Waste Investigator 1 $38.05 $39.75 $40.33 $41.53
2 $40.05 $41.84 $42.45 $43.72
3 $42.16 $44.04 $44.68 $46.02
4 $44.38 $46.36 $47.03 $48.44
5 $46.72 $8,098.13 $97,177.60 $48.80 $8,458.67 $101,504.00 $49.50 $8,580.00 $102,960.00 $50.99 $8,838.27 $106,059.20
544 non-exempt Sr Industrial Waste Investigator 1 $38.05 $39.75 $43.11 $44.40
2 $40.05 $41.84 $45.38 $46.74
3 $42.16 $44.04 $47.77 $49.20
4 $44.38 $46.36 $50.28 $51.79
5 $46.72 $8,098.13 $97,177.60 $48.80 $8,458.67 $101,504.00 $52.93 $9,174.53 $110,094.40 $54.52 $9,450.13 $113,401.60
512 non-exempt Sr Instrum Elect 1 $37.31 $38.85 $39.27 $40.46
2 $39.27 $40.89 $41.34 $42.59
3 $41.34 $43.04 $43.52 $44.83
4 $43.52 $45.31 $45.81 $47.19
5 $45.81 $7,940.40 $95,284.80 $47.69 $8,266.27 $99,195.20 $48.22 $8,358.13 $100,297.60 $49.67 $8,609.47 $103,313.60
251 non-exempt Sr Librarian 1 $30.48 $31.57 $31.75 $32.70
2 $32.08 $33.23 $33.42 $34.42
3 $33.77 $34.98 $35.18 $36.23
4 $35.55 $36.82 $37.03 $38.14
5 $37.42 $6,486.13 $77,833.60 $38.76 $6,718.40 $80,620.80 $38.98 $6,756.53 $81,078.40 $40.15 $6,959.33 $83,512.00
504 non-exempt Sr. Mech 1 $37.13 $38.24 $39.03 $40.20
2 $39.08 $40.25 $41.08 $42.32
3 $41.14 $42.37 $43.24 $44.55
4 $43.30 $44.60 $45.52 $46.89
5 $45.58 $7,900.53 $94,806.40 $46.95 $8,138.00 $97,656.00 $47.92 $8,306.13 $99,673.60 $49.36 $8,555.73 $102,668.80
361 non-exempt Sr Mkt Analyst 1 $43.30 $44.60 $44.60 $45.94
2 $45.58 $46.95 $46.95 $48.36
3 $47.98 $49.42 $49.42 $50.91
4 $50.50 $52.02 $52.02 $53.59
5 $53.16 $9,214.40 $110,572.80 $54.76 $9,491.73 $113,900.80 $54.76 $9,491.73 $113,900.80 $56.41 $9,777.73 $117,332.80
3610 non-exempt Sr Mkt Analyst - S 1 $43.30 $44.60 $44.60 $45.94
2 $45.58 $46.95 $46.95 $48.36
3 $47.98 $49.42 $49.42 $50.91
4 $50.50 $52.02 $52.02 $53.59
5 $53.16 $9,214.40 $110,572.80 $54.76 $9,491.73 $113,900.80 $54.76 $9,491.73 $113,900.80 $56.41 $9,777.73 $117,332.80
506 non-exempt Sr Operator Wqc 1 $39.40 $40.58 $40.58 $41.80
2 $41.47 $42.72 $42.72 $44.00
3 $43.65 $44.97 $44.97 $46.32
4 $45.95 $47.34 $47.34 $48.76
5 $48.37 $8,384.13 $100,609.60 $49.83 $8,637.20 $103,646.40 $49.83 $8,637.20 $103,646.40 $51.33 $8,897.20 $106,766.40
318 non-exempt Sr Planner 1 $44.39 $46.05 $46.37 $47.76
2 $46.73 $48.47 $48.81 $50.27
3 $49.19 $51.02 $51.38 $52.92
4 $51.78 $53.70 $54.08 $55.71
5 $54.51 $9,448.40 $113,380.80 $56.53 $9,798.53 $117,582.40 $56.93 $9,867.87 $118,414.40 $58.64 $10,164.27 $121,971.20
280 non-exempt Sr Ranger 1 $31.85 $32.81 $32.81 $33.80
2 $33.53 $34.54 $34.54 $35.58
3 $35.29 $36.36 $36.36 $37.45
4 $37.15 $38.27 $38.27 $39.42
5 $39.10 $6,777.33 $81,328.00 $40.28 $6,981.87 $83,782.40 $40.28 $6,981.87 $83,782.40 $41.49 $7,191.60 $86,299.20
261 non-exempt Sr Util Field Svc Rep 1 $36.49 $38.58 $39.64 $40.84
2 $38.41 $40.61 $41.73 $42.99
3 $40.43 $42.75 $43.93 $45.25
4 $42.56 $45.00 $46.24 $47.63
5 $44.80 $7,765.33 $93,184.00 $47.37 $8,210.80 $98,529.60 $48.67 $8,436.13 $101,233.60 $50.14 $8,690.93 $104,291.20
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
501 non-exempt Sr Water Sys Oper 1 $37.55 $38.68 $38.68 $39.84
2 $39.53 $40.72 $40.72 $41.94
3 $41.61 $42.86 $42.86 $44.15
4 $43.80 $45.12 $45.12 $46.47
5 $46.10 $7,990.67 $95,888.00 $47.49 $8,231.60 $98,779.20 $47.49 $8,231.60 $98,779.20 $48.92 $8,479.47 $101,753.60
405 non-exempt St Maint Asst 1 $23.72 $24.84 $25.28 $26.04
2 $24.97 $26.15 $26.61 $27.41
3 $26.28 $27.53 $28.01 $28.85
4 $27.66 $28.98 $29.48 $30.37
5 $29.12 $5,047.47 $60,569.60 $30.50 $5,286.67 $63,440.00 $31.03 $5,378.53 $64,542.40 $31.97 $5,541.47 $66,497.60
392 non-exempt St Sweeper Op 1 $27.76 $29.32 $30.08 $30.98
2 $29.22 $30.86 $31.66 $32.61
3 $30.76 $32.48 $33.33 $34.33
4 $32.38 $34.19 $35.08 $36.14
5 $34.08 $5,907.20 $70,886.40 $35.99 $6,238.27 $74,859.20 $36.93 $6,401.20 $76,814.40 $38.04 $6,593.60 $79,123.20
248 non-exempt Storekeeper 1 $25.45 $26.21 $26.21 $27.00
2 $26.79 $27.59 $27.59 $28.42
3 $28.20 $29.04 $29.04 $29.92
4 $29.68 $30.57 $30.57 $31.49
5 $31.24 $5,414.93 $64,979.20 $32.18 $5,577.87 $66,934.40 $32.18 $5,577.87 $66,934.40 $33.15 $5,746.00 $68,952.00
288 non-exempt Storekeeper-L 1 $27.23 $28.05 $28.05 $28.90
2 $28.66 $29.53 $29.53 $30.42
3 $30.17 $31.08 $31.08 $32.02
4 $31.76 $32.72 $32.72 $33.71
5 $33.43 $5,794.53 $69,534.40 $34.44 $5,969.60 $71,635.20 $34.44 $5,969.60 $71,635.20 $35.48 $6,149.87 $73,798.40
545 non-exempt Street Light, Traffic Signal and Fiber – Apprentice 1 $36.54 $38.19 $38.78 $39.95
2 $38.46 $40.20 $40.82 $42.05
3 $40.48 $42.32 $42.97 $44.26
4 $42.61 $44.55 $45.23 $46.59
5 $44.85 $7,774.00 $93,288.00 $46.89 $8,127.60 $97,531.20 $47.61 $8,252.40 $99,028.80 $49.04 $8,500.27 $102,003.20
547 non-exempt Street Light, Traffic Signal and Fiber – Lead 1 $41.31 $43.19 $43.85 $45.18
2 $43.48 $45.46 $46.16 $47.56
3 $45.77 $47.85 $48.59 $50.06
4 $48.18 $50.37 $51.15 $52.69
5 $50.72 $8,791.47 $105,497.60 $53.02 $9,190.13 $110,281.60 $53.84 $9,332.27 $111,987.20 $55.46 $9,613.07 $115,356.80
546 non-exempt Street Light, Traffic Signal and Fiber Technician 1 $38.61 $40.36 $40.97 $42.21
2 $40.64 $42.48 $43.13 $44.43
3 $42.78 $44.72 $45.40 $46.77
4 $45.03 $47.07 $47.79 $49.23
5 $47.40 $8,216.00 $98,592.00 $49.55 $8,588.67 $103,064.00 $50.31 $8,720.40 $104,644.80 $51.82 $8,982.13 $107,785.60
549 non-exempt Substation Electrician 1 $42.11 $44.03 $44.71 $46.05
2 $44.33 $46.35 $47.06 $48.47
3 $46.66 $48.79 $49.54 $51.02
4 $49.12 $51.36 $52.15 $53.71
5 $51.71 $8,963.07 $107,556.80 $54.06 $9,370.40 $112,444.80 $54.89 $9,514.27 $114,171.20 $56.54 $9,800.27 $117,603.20
548 non-exempt Substation Electrician - Apprentice 1 $39.87 $41.68 $42.32 $43.60
2 $41.97 $43.87 $44.55 $45.89
3 $44.18 $46.18 $46.89 $48.30
4 $46.50 $48.61 $49.36 $50.84
5 $48.95 $8,484.67 $101,816.00 $51.17 $8,869.47 $106,433.60 $51.96 $9,006.40 $108,076.80 $53.52 $9,276.80 $111,321.60
550 non-exempt Substation Electrician - Lead 1 $45.06 $47.11 $47.83 $49.29
2 $47.43 $49.59 $50.35 $51.88
3 $49.93 $52.20 $53.00 $54.61
4 $52.56 $54.95 $55.79 $57.48
5 $55.33 $9,590.53 $115,086.40 $57.84 $10,025.60 $120,307.20 $58.73 $10,179.87 $122,158.40 $60.50 $10,486.67 $125,840.00
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
326 non-exempt Surveying Asst 1 $32.06 $33.53 $34.06 $35.09
2 $33.75 $35.29 $35.85 $36.94
3 $35.53 $37.15 $37.74 $38.88
4 $37.40 $39.11 $39.73 $40.93
5 $39.37 $6,824.13 $81,889.60 $41.17 $7,136.13 $85,633.60 $41.82 $7,248.80 $86,985.60 $43.08 $7,467.20 $89,606.40
325 non-exempt Surveyor, Public Wks 1 $34.89 $36.48 $37.07 $38.18
2 $36.73 $38.40 $39.02 $40.19
3 $38.66 $40.42 $41.07 $42.30
4 $40.69 $42.55 $43.23 $44.53
5 $42.83 $7,423.87 $89,086.40 $44.79 $7,763.60 $93,163.20 $45.50 $7,886.67 $94,640.00 $46.87 $8,124.13 $97,489.60
362 non-exempt Technologist 1 $48.82 $51.62 $53.04 $54.63
2 $51.39 $54.34 $55.83 $57.51
3 $54.09 $57.20 $58.77 $60.54
4 $56.94 $60.21 $61.86 $63.73
5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40
3620 non-exempt Technologist - S 1 $48.82 $51.62 $53.04 $54.63
2 $51.39 $54.34 $55.83 $57.51
3 $54.09 $57.20 $58.77 $60.54
4 $56.94 $60.21 $61.86 $63.73
5 $59.94 $10,389.60 $124,675.20 $63.38 $10,985.87 $131,830.40 $65.12 $11,287.47 $135,449.60 $67.08 $11,627.20 $139,526.40
229 non-exempt Theater Specialist 1 $34.65 $36.01 $36.33 $37.42
2 $36.47 $37.90 $38.24 $39.39
3 $38.39 $39.89 $40.25 $41.46
4 $40.41 $41.99 $42.37 $43.64
5 $42.54 $7,373.60 $88,483.20 $44.20 $7,661.33 $91,936.00 $44.60 $7,730.67 $92,768.00 $45.94 $7,962.93 $95,555.20
406 non-exempt Traf Cont Maint I 1 $27.76 $29.08 $29.58 $30.47
2 $29.22 $30.61 $31.14 $32.07
3 $30.76 $32.22 $32.78 $33.76
4 $32.38 $33.92 $34.50 $35.54
5 $34.08 $5,907.20 $70,886.40 $35.70 $6,188.00 $74,256.00 $36.32 $6,295.47 $75,545.60 $37.41 $6,484.40 $77,812.80
412 non-exempt Traf Cont Maint Ii 1 $25.70 $26.92 $27.39 $28.22
2 $27.05 $28.34 $28.83 $29.70
3 $28.47 $29.83 $30.35 $31.26
4 $29.97 $31.40 $31.95 $32.91
5 $31.55 $5,468.67 $65,624.00 $33.05 $5,728.67 $68,744.00 $33.63 $5,829.20 $69,950.40 $34.64 $6,004.27 $72,051.20
407 non-exempt Traf Cont Maint-L 1 $29.70 $31.11 $31.65 $32.60
2 $31.26 $32.75 $33.32 $34.32
3 $32.91 $34.47 $35.07 $36.13
4 $34.64 $36.28 $36.92 $38.03
5 $36.46 $6,319.73 $75,836.80 $38.19 $6,619.60 $79,435.20 $38.86 $6,735.73 $80,828.80 $40.03 $6,938.53 $83,262.40
575 non-exempt Traffic Engineering Lead 1 $49.43 $51.15 $51.39 $52.93
2 $52.03 $53.84 $54.09 $55.72
3 $54.77 $56.67 $56.94 $58.65
4 $57.65 $59.65 $59.94 $61.74
5 $60.68 $10,517.87 $126,214.40 $62.79 $10,883.60 $130,603.20 $63.09 $10,935.60 $131,227.20 $64.99 $11,264.93 $135,179.20
435 non-exempt Tree Maint Asst 1 $24.80 $25.77 $26.01 $26.81
2 $26.10 $27.13 $27.38 $28.22
3 $27.47 $28.56 $28.82 $29.70
4 $28.92 $30.06 $30.34 $31.26
5 $30.44 $5,276.27 $63,315.20 $31.64 $5,484.27 $65,811.20 $31.94 $5,536.27 $66,435.20 $32.90 $5,702.67 $68,432.00
434 non-exempt Tree Maintenance Specialist 1 $28.93 $30.07 $30.36 $31.27
2 $30.45 $31.65 $31.96 $32.92
3 $32.05 $33.32 $33.64 $34.65
4 $33.74 $35.07 $35.41 $36.47
5 $35.52 $6,156.80 $73,881.60 $36.92 $6,399.47 $76,793.60 $37.27 $6,460.13 $77,521.60 $38.39 $6,654.27 $79,851.20
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
430 non-exempt Tree Trim/Ln Clr 1 $28.48 $29.60 $29.89 $30.78
2 $29.98 $31.16 $31.46 $32.40
3 $31.56 $32.80 $33.12 $34.11
4 $33.22 $34.53 $34.86 $35.91
5 $34.97 $6,061.47 $72,737.60 $36.35 $6,300.67 $75,608.00 $36.69 $6,359.60 $76,315.20 $37.80 $6,552.00 $78,624.00
431 non-exempt Tree Trim/Ln Clr-L 1 $30.46 $31.67 $31.98 $32.94
2 $32.06 $33.34 $33.66 $34.67
3 $33.75 $35.09 $35.43 $36.49
4 $35.53 $36.94 $37.29 $38.41
5 $37.40 $6,482.67 $77,792.00 $38.88 $6,739.20 $80,870.40 $39.25 $6,803.33 $81,640.00 $40.43 $7,007.87 $84,094.40
432 non-exempt Tree Trm/Ln Clr Asst 1 $26.84 $27.90 $28.17 $29.01
2 $28.25 $29.37 $29.65 $30.54
3 $29.74 $30.92 $31.21 $32.15
4 $31.31 $32.55 $32.85 $33.84
5 $32.96 $5,713.07 $68,556.80 $34.26 $5,938.40 $71,260.80 $34.58 $5,993.87 $71,926.40 $35.62 $6,174.13 $74,089.60
223 non-exempt Util Acctg Tech 1 $26.41 $27.20 $27.20 $28.03
2 $27.80 $28.63 $28.63 $29.51
3 $29.26 $30.14 $30.14 $31.06
4 $30.80 $31.73 $31.73 $32.69
5 $32.42 $5,619.47 $67,433.60 $33.40 $5,789.33 $69,472.00 $33.40 $5,789.33 $69,472.00 $34.41 $5,964.40 $71,572.80
272 non-exempt Util Comp Tech 1 $41.31 $43.19 $43.85 $45.18
2 $43.48 $45.46 $46.16 $47.56
3 $45.77 $47.85 $48.59 $50.06
4 $48.18 $50.37 $51.15 $52.69
5 $50.72 $8,791.47 $105,497.60 $53.02 $9,190.13 $110,281.60 $53.84 $9,332.27 $111,987.20 $55.46 $9,613.07 $115,356.80
272 non-exempt Util Comp Tech 1 $41.31 $43.19 $45.45 $46.83
2 $43.48 $45.46 $47.84 $49.29
3 $45.77 $47.85 $50.36 $51.88
4 $48.18 $50.37 $53.01 $54.61
5 $50.72 $8,791.47 $105,497.60 $53.02 $9,190.13 $110,281.60 $55.80 $9,672.00 $116,064.00 $57.48 $9,963.20 $119,558.40
273 non-exempt Util Comp Tech-L 1 $44.19 $46.20 $46.90 $48.31
2 $46.52 $48.63 $49.37 $50.85
3 $48.97 $51.19 $51.97 $53.53
4 $51.55 $53.88 $54.71 $56.35
5 $54.26 $9,405.07 $112,860.80 $56.72 $9,831.47 $117,977.60 $57.59 $9,982.27 $119,787.20 $59.32 $10,282.13 $123,385.60
273 non-exempt Util Comp Tech-L 1 $44.19 $46.20 $48.63 $50.09
2 $46.52 $48.63 $51.19 $52.73
3 $48.97 $51.19 $53.88 $55.51
4 $51.55 $53.88 $56.72 $58.43
5 $54.26 $9,405.07 $112,860.80 $56.72 $9,831.47 $117,977.60 $59.71 $10,349.73 $124,196.80 $61.51 $10,661.73 $127,940.80
219 non-exempt Util Credit/Col Spec 1 $31.47 $32.40 $32.40 $33.38
2 $33.13 $34.11 $34.11 $35.14
3 $34.87 $35.91 $35.91 $36.99
4 $36.70 $37.80 $37.80 $38.94
5 $38.63 $6,695.87 $80,350.40 $39.79 $6,896.93 $82,763.20 $39.79 $6,896.93 $82,763.20 $40.99 $7,104.93 $85,259.20
310 non-exempt Util Engr Estimator 1 $41.03 $42.45 $42.66 $43.95
2 $43.19 $44.68 $44.90 $46.26
3 $45.46 $47.03 $47.26 $48.69
4 $47.85 $49.51 $49.75 $51.25
5 $50.37 $8,730.80 $104,769.60 $52.12 $9,034.13 $108,409.60 $52.37 $9,077.47 $108,929.60 $53.95 $9,351.33 $112,216.00
486 non-exempt Util Fld Svcs Rep 1 $34.12 $36.09 $37.08 $38.19
2 $35.92 $37.99 $39.03 $40.20
3 $37.81 $39.99 $41.08 $42.32
4 $39.80 $42.09 $43.24 $44.55
5 $41.89 $7,260.93 $87,131.20 $44.30 $7,678.67 $92,144.00 $45.52 $7,890.13 $94,681.60 $46.89 $8,127.60 $97,531.20
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
480 non-exempt Util Install/Rep 1 $33.27 $35.18 $36.15 $37.24
2 $35.02 $37.03 $38.05 $39.20
3 $36.86 $38.98 $40.05 $41.26
4 $38.80 $41.03 $42.16 $43.43
5 $40.84 $7,078.93 $84,947.20 $43.19 $7,486.27 $89,835.20 $44.38 $7,692.53 $92,310.40 $45.72 $7,924.80 $95,097.60
481 non-exempt Util Install/Rep Ast 1 $28.22 $29.84 $30.66 $31.58
2 $29.70 $31.41 $32.27 $33.24
3 $31.26 $33.06 $33.97 $34.99
4 $32.91 $34.80 $35.76 $36.83
5 $34.64 $6,004.27 $72,051.20 $36.63 $6,349.20 $76,190.40 $37.64 $6,524.27 $78,291.20 $38.77 $6,720.13 $80,641.60
479 non-exempt Util Install/Rep-L 1 $36.31 $38.39 $39.44 $40.64
2 $38.22 $40.41 $41.52 $42.78
3 $40.23 $42.54 $43.71 $45.03
4 $42.35 $44.78 $46.01 $47.40
5 $44.58 $7,727.20 $92,726.40 $47.14 $8,170.93 $98,051.20 $48.43 $8,394.53 $100,734.40 $49.89 $8,647.60 $103,771.20
363 non-exempt Util Key Acct Rep 1 $40.16 $41.35 $41.35 $42.61
2 $42.27 $43.53 $43.53 $44.85
3 $44.49 $45.82 $45.82 $47.21
4 $46.83 $48.23 $48.23 $49.69
5 $49.29 $8,543.60 $102,523.20 $50.77 $8,800.13 $105,601.60 $50.77 $8,800.13 $105,601.60 $52.30 $9,065.33 $108,784.00
3630 non-exempt Util Key Acct Rep -S 1 $40.16 $41.35 $41.35 $42.61
2 $42.27 $43.53 $43.53 $44.85
3 $44.49 $45.82 $45.82 $47.21
4 $46.83 $48.23 $48.23 $49.69
5 $49.29 $8,543.60 $102,523.20 $50.77 $8,800.13 $105,601.60 $50.77 $8,800.13 $105,601.60 $52.30 $9,065.33 $108,784.00
271 non-exempt Util Locator 1 $31.32 $33.13 $34.03 $35.06
2 $32.97 $34.87 $35.82 $36.91
3 $34.70 $36.70 $37.71 $38.85
4 $36.53 $38.63 $39.69 $40.89
5 $38.45 $6,664.67 $79,976.00 $40.66 $7,047.73 $84,572.80 $41.78 $7,241.87 $86,902.40 $43.04 $7,460.27 $89,523.20
215 non-exempt Util Marketing Program Admin 1 $38.15 $39.29 $39.29 $40.48
2 $40.16 $41.36 $41.36 $42.61
3 $42.27 $43.54 $43.54 $44.85
4 $44.49 $45.83 $45.83 $47.21
5 $46.83 $8,117.20 $97,406.40 $48.24 $8,361.60 $100,339.20 $48.24 $8,361.60 $100,339.20 $49.69 $8,612.93 $103,355.20
233 non-exempt Util Rate Analyst 1 $36.77 $37.88 $37.88 $39.02
2 $38.71 $39.87 $39.87 $41.07
3 $40.75 $41.97 $41.97 $43.23
4 $42.89 $44.18 $44.18 $45.51
5 $45.15 $7,826.00 $93,912.00 $46.51 $8,061.73 $96,740.80 $46.51 $8,061.73 $96,740.80 $47.91 $8,304.40 $99,652.80
307 non-exempt Util Syst Oper 1 $47.94 $50.11 $50.89 $52.42
2 $50.46 $52.75 $53.57 $55.18
3 $53.12 $55.53 $56.39 $58.08
4 $55.92 $58.45 $59.36 $61.14
5 $58.86 $10,202.40 $122,428.80 $61.53 $10,665.20 $127,982.40 $62.48 $10,829.87 $129,958.40 $64.36 $11,155.73 $133,868.80
322 non-exempt Util Syst Oper in Training 1 $45.54 $47.60 $48.35 $49.80
2 $47.94 $50.11 $50.89 $52.42
3 $50.46 $52.75 $53.57 $55.18
4 $53.12 $55.53 $56.39 $58.08
5 $55.92 $9,692.80 $116,313.60 $58.45 $10,131.33 $121,576.00 $59.36 $10,289.07 $123,468.80 $61.14 $10,597.60 $127,171.20
284 non-exempt Utilities Engineer Estimator Lead 1 $43.90 $45.41 $45.64 $47.02
2 $46.21 $47.80 $48.04 $49.49
3 $48.64 $50.32 $50.57 $52.09
4 $51.20 $52.97 $53.23 $54.83
5 $53.89 $9,340.93 $112,091.20 $55.76 $9,665.07 $115,980.80 $56.03 $9,711.87 $116,542.40 $57.72 $10,004.80 $120,057.60
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
290 non-exempt Utl Install Repair Lead-Welding Cert 1 $37.15 $39.29 $40.37 $41.59
2 $39.11 $41.36 $42.49 $43.78
3 $41.17 $43.54 $44.73 $46.08
4 $43.34 $45.83 $47.08 $48.50
5 $45.62 $7,907.47 $94,889.60 $48.24 $8,361.60 $100,339.20 $49.56 $8,590.40 $103,084.80 $51.05 $8,848.67 $106,184.00
289 non-exempt Utl Install Repair-Welding Cert 1 $34.58 $36.58 $37.57 $38.70
2 $36.40 $38.50 $39.55 $40.74
3 $38.32 $40.53 $41.63 $42.88
4 $40.34 $42.66 $43.82 $45.14
5 $42.46 $7,359.73 $88,316.80 $44.90 $7,782.67 $93,392.00 $46.13 $7,995.87 $95,950.40 $47.52 $8,236.80 $98,841.60
278 non-exempt Veterinarian Tech 1 $25.18 $26.03 $26.12 $26.90
2 $26.51 $27.40 $27.49 $28.32
3 $27.91 $28.84 $28.94 $29.81
4 $29.38 $30.36 $30.46 $31.38
5 $30.93 $5,361.20 $64,334.40 $31.96 $5,539.73 $66,476.80 $32.06 $5,557.07 $66,684.80 $33.03 $5,725.20 $68,702.40
274 non-exempt Volunteer Coord 1 $29.41 $30.55 $30.83 $31.76
2 $30.96 $32.16 $32.45 $33.43
3 $32.59 $33.85 $34.16 $35.19
4 $34.30 $35.63 $35.96 $37.04
5 $36.10 $6,257.33 $75,088.00 $37.51 $6,501.73 $78,020.80 $37.85 $6,560.67 $78,728.00 $38.99 $6,758.27 $81,099.20
482 non-exempt Water Meter Rep Asst 1 $24.06 $25.18 $25.57 $26.34
2 $25.33 $26.50 $26.92 $27.73
3 $26.66 $27.89 $28.34 $29.19
4 $28.06 $29.36 $29.83 $30.73
5 $29.54 $5,120.27 $61,443.20 $30.90 $5,356.00 $64,272.00 $31.40 $5,442.67 $65,312.00 $32.35 $5,607.33 $67,288.00
484 non-exempt Water Meter Repair 1 $26.65 $27.88 $28.33 $29.18
2 $28.05 $29.35 $29.82 $30.72
3 $29.53 $30.89 $31.39 $32.34
4 $31.08 $32.52 $33.04 $34.04
5 $32.72 $5,671.47 $68,057.60 $34.23 $5,933.20 $71,198.40 $34.78 $6,028.53 $72,342.40 $35.83 $6,210.53 $74,526.40
499 non-exempt Water Sys Oper I 1 $28.98 $29.86 $29.86 $30.75
2 $30.50 $31.43 $31.43 $32.37
3 $32.11 $33.08 $33.08 $34.07
4 $33.80 $34.82 $34.82 $35.86
5 $35.58 $6,167.20 $74,006.40 $36.65 $6,352.67 $76,232.00 $36.65 $6,352.67 $76,232.00 $37.75 $6,543.33 $78,520.00
507 non-exempt Water Sys Oper II 1 $33.12 $34.11 $34.11 $35.12
2 $34.86 $35.90 $35.90 $36.97
3 $36.69 $37.79 $37.79 $38.92
4 $38.62 $39.78 $39.78 $40.97
5 $40.65 $7,046.00 $84,552.00 $41.87 $7,257.47 $87,089.60 $41.87 $7,257.47 $87,089.60 $43.13 $7,475.87 $89,710.40
500 non-exempt WQC Plt Oper I 1 $30.41 $31.32 $31.32 $32.26
2 $32.01 $32.97 $32.97 $33.96
3 $33.69 $34.70 $34.70 $35.75
4 $35.46 $36.53 $36.53 $37.63
5 $37.33 $6,470.53 $77,646.40 $38.45 $6,664.67 $79,976.00 $38.45 $6,664.67 $79,976.00 $39.61 $6,865.73 $82,388.80
509 non-exempt WQC Plt Oper II 1 $34.74 $35.78 $35.78 $36.86
2 $36.57 $37.66 $37.66 $38.80
3 $38.49 $39.64 $39.64 $40.84
4 $40.52 $41.73 $41.73 $42.99
5 $42.65 $7,392.67 $88,712.00 $43.93 $7,614.53 $91,374.40 $43.93 $7,614.53 $91,374.40 $45.25 $7,843.33 $94,120.00
510 non-exempt WQC Plt Oper Trn 1 $26.77 $27.57 $27.57 $28.41
2 $28.18 $29.02 $29.02 $29.90
3 $29.66 $30.55 $30.55 $31.47
4 $31.22 $32.16 $32.16 $33.13
5 $32.86 $5,695.73 $68,348.80 $33.85 $5,867.33 $70,408.00 $33.85 $5,867.33 $70,408.00 $34.87 $6,044.13 $72,529.60
City of Palo Alto
SEIU Salary Schedule
Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
Salary Effective 12/9/2017 (PP26:2017)StepsJob TitleFLSAJob
Code
Salary Effective 4/16/2016 (PP09:2016)Salary Effective 12/10/2016 (PP26:2016)Salray Effective 7/08/2017 (PP15:2017)
226 non-exempt Wtr Mtr Crs Cn Tec 1 $27.34 $28.60 $29.07 $29.93
2 $28.78 $30.10 $30.60 $31.51
3 $30.29 $31.68 $32.21 $33.17
4 $31.88 $33.35 $33.90 $34.92
5 $33.56 $5,817.07 $69,804.80 $35.11 $6,085.73 $73,028.80 $35.68 $6,184.53 $74,214.40 $36.76 $6,371.73 $76,460.80
Limited Hourly 2014-2017 Salary Schedule
FLSA
Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate
Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 1 $22.24
Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 2 $23.41
Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 3 $24.64
Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 4 $25.94
Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 Step 5 $27.31
Step 1 $25.52 Step 1 $26.03 Step 1 $26.03 Step 1 $26.55 Step 1 $26.55
Step 2 $26.86 Step 2 $27.40 Step 2 $27.40 Step 2 $27.95 Step 2 $27.95
Step 3 $28.27 Step 3 $28.84 Step 3 $28.84 Step 3 $29.42 Step 3 $29.42
Step 4 $29.76 Step 4 $30.36 Step 4 $30.36 Step 4 $30.97 Step 4 $30.97
Step 5 $31.33 Step 5 $31.96 Step 5 $31.96 Step 5 $32.60 Step 5 $32.60
Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 1 $22.24
Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 2 $23.41
Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 3 $24.64
Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 4 $25.94
Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 Step 5 $27.31
Step 1 $19.74 Step 1 $20.13 Step 1 $20.13 Step 1 $20.54 Step 1 $20.54
Step 2 $20.78 Step 2 $21.19 Step 2 $21.19 Step 2 $21.62 Step 2 $21.62
Step 3 $21.87 Step 3 $22.31 Step 3 $22.31 Step 3 $22.76 Step 3 $22.76
Step 4 $23.02 Step 4 $23.48 Step 4 $23.48 Step 4 $23.96 Step 4 $23.96
Step 5 $24.23 Step 5 $24.72 Step 5 $24.72 Step 5 $25.22 Step 5 $25.22
Step 1 $17.31 Step 1 $17.66 Step 1 $17.66 Step 1 $18.01 Step 1 $18.01
Step 2 $18.22 Step 2 $18.59 Step 2 $18.59 Step 2 $18.96 Step 2 $18.96
Step 3 $19.18 Step 3 $19.57 Step 3 $19.57 Step 3 $19.96 Step 3 $19.96
Step 4 $20.19 Step 4 $20.60 Step 4 $20.60 Step 4 $21.01 Step 4 $21.01
Step 5 $21.25 Step 5 $21.68 Step 5 $21.68 Step 5 $22.12 Step 5 $22.12
Step 1 $13.98 Step 1 $14.27 Step 1 $14.27 Step 1 $14.56 Step 1 $14.56
Step 2 $14.72 Step 2 $15.02 Step 2 $15.02 Step 2 $15.33 Step 2 $15.33
Step 3 $15.49 Step 3 $15.81 Step 3 $15.81 Step 3 $16.14 Step 3 $16.14
Step 4 $16.31 Step 4 $16.64 Step 4 $16.64 Step 4 $16.99 Step 4 $16.99
Step 5 $17.17 Step 5 $17.52 Step 5 $17.52 Step 5 $17.88 Step 5 $17.88
Salary Effective
07/01/2016
915 Non-
exempt Assistant Park Ranger
916 Non-
exempt Building Serviceperson
Salary Effective
01/01/2016
Salary Effective
07/01/2016
910 Non-
exempt Administrative Specialist I
913 Non-
exempt Administrative Specialist II
Job
Code Job Title
Salary Effective
1st PP following
Council Approval
Salary Effective
07/01/2015
917 Non-
exempt Clerical Assistant
918 Non-
exempt Custodial Aide
Attachment O, Exhibit 3
Limited Hourly 2014-2017 Salary Schedule
FLSA
Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate
Salary Effective
07/01/2016
Salary Effective
01/01/2016
Salary Effective
07/01/2016
Job
Code Job Title
Salary Effective
1st PP following
Council Approval
Salary Effective
07/01/2015
Step 1 $16.36 Step 1 $16.70 Step 1 $16.70 Step 1 $17.03 Step 1 $17.03
Step 2 $17.22 Step 2 $17.58 Step 2 $17.58 Step 2 $17.93 Step 2 $17.93
Step 3 $18.13 Step 3 $18.50 Step 3 $18.50 Step 3 $18.87 Step 3 $18.87
Step 4 $19.08 Step 4 $19.47 Step 4 $19.47 Step 4 $19.86 Step 4 $19.86
Step 5 $20.08 Step 5 $20.49 Step 5 $20.49 Step 5 $20.90 Step 5 $20.90
Step 1 $16.08 Step 1 $16.41 Step 1 $16.41 Step 1 $16.74 Step 1 $16.74
Step 2 $16.93 Step 2 $17.27 Step 2 $17.27 Step 2 $17.62 Step 2 $17.62
Step 3 $17.82 Step 3 $18.18 Step 3 $18.18 Step 3 $18.55 Step 3 $18.55
Step 4 $18.76 Step 4 $19.14 Step 4 $19.14 Step 4 $19.53 Step 4 $19.53
Step 5 $19.75 Step 5 $20.15 Step 5 $20.15 Step 5 $20.56 Step 5 $20.56
Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $11.24 Step 1 $12.00
Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $11.83 Step 2 $12.63
Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $12.45 Step 3 $13.29
Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $13.10 Step 4 $13.99
Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $13.79 Step 5 $14.73
Step 1 $20.20 Step 1 $20.62 Step 1 $20.62 Step 1 $21.02 Step 1 $21.02
Step 2 $21.26 Step 2 $21.70 Step 2 $21.70 Step 2 $22.13 Step 2 $22.13
Step 3 $22.38 Step 3 $22.84 Step 3 $22.84 Step 3 $23.29 Step 3 $23.29
Step 4 $23.56 Step 4 $24.04 Step 4 $24.04 Step 4 $24.52 Step 4 $24.52
Step 5 $24.80 Step 5 $25.30 Step 5 $25.30 Step 5 $25.81 Step 5 $25.81
Step 1 $24.61 Step 1 $25.10 Step 1 $25.10 Step 1 $25.60 Step 1 $25.60
Step 2 $25.90 Step 2 $26.42 Step 2 $26.42 Step 2 $26.95 Step 2 $26.95
Step 3 $27.26 Step 3 $27.81 Step 3 $27.81 Step 3 $28.37 Step 3 $28.37
Step 4 $28.69 Step 4 $29.27 Step 4 $29.27 Step 4 $29.86 Step 4 $29.86
Step 5 $30.20 Step 5 $30.81 Step 5 $30.81 Step 5 $31.43 Step 5 $31.43
Step 1 $28.31 Step 1 $28.89 Step 1 $28.89 Step 1 $29.46 Step 1 $29.46
Step 2 $29.80 Step 2 $30.41 Step 2 $30.41 Step 2 $31.01 Step 2 $31.01
Step 3 $31.37 Step 3 $32.01 Step 3 $32.01 Step 3 $32.64 Step 3 $32.64
Step 4 $33.02 Step 4 $33.69 Step 4 $33.69 Step 4 $34.36 Step 4 $34.36
Step 5 $34.76 Step 5 $35.46 Step 5 $35.46 Step 5 $36.17 Step 5 $36.17
919 Non-
exempt Custodial Assistant
920 Non-
exempt House Manager
923 Non-
exempt Instructor II
982 Non-exempt Instructor III
921 Non-
exempt Instructor Aide
922 Non-
exempt Instructor I
Limited Hourly 2014-2017 Salary Schedule
FLSA
Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate
Salary Effective
07/01/2016
Salary Effective
01/01/2016
Salary Effective
07/01/2016Job
Code Job Title
Salary Effective
1st PP following
Council Approval
Salary Effective
07/01/2015
Step 1 $25.98 Step 1 $26.50 Step 1 $26.50 Step 1 $27.03 Step 1 $27.03
Step 2 $27.35 Step 2 $27.89 Step 2 $27.89 Step 2 $28.45 Step 2 $28.45
Step 3 $28.79 Step 3 $29.36 Step 3 $29.36 Step 3 $29.95 Step 3 $29.95
Step 4 $30.30 Step 4 $30.90 Step 4 $30.90 Step 4 $31.53 Step 4 $31.53
Step 5 $31.89 Step 5 $32.53 Step 5 $32.53 Step 5 $33.19 Step 5 $33.19
Step 1 $19.33 Step 1 $19.73 Step 1 $19.73 Step 1 $20.13 Step 1 $20.13
Step 2 $20.35 Step 2 $20.77 Step 2 $20.77 Step 2 $21.19 Step 2 $21.19
Step 3 $21.42 Step 3 $21.86 Step 3 $21.86 Step 3 $22.30 Step 3 $22.30
Step 4 $22.55 Step 4 $23.01 Step 4 $23.01 Step 4 $23.47 Step 4 $23.47
Step 5 $23.74 Step 5 $24.22 Step 5 $24.22 Step 5 $24.71 Step 5 $24.71
Step 1 $11.85 Step 1 $12.09 Step 1 $12.09 Step 1 $12.34 Step 1 $12.34
Step 2 $12.47 Step 2 $12.73 Step 2 $12.73 Step 2 $12.99 Step 2 $12.99
Step 3 $13.13 Step 3 $13.40 Step 3 $13.40 Step 3 $13.67 Step 3 $13.67
Step 4 $13.82 Step 4 $14.11 Step 4 $14.11 Step 4 $14.39 Step 4 $14.39
Step 5 $14.55 Step 5 $14.85 Step 5 $14.85 Step 5 $15.15 Step 5 $15.15
Step 1 $15.56 Step 1 $15.87 Step 1 $15.87 Step 1 $16.20 Step 1 $16.20
Step 2 $16.38 Step 2 $16.71 Step 2 $16.71 Step 2 $17.05 Step 2 $17.05
Step 3 $17.24 Step 3 $17.59 Step 3 $17.59 Step 3 $17.95 Step 3 $17.95
Step 4 $18.15 Step 4 $18.52 Step 4 $18.52 Step 4 $18.89 Step 4 $18.89
Step 5 $19.10 Step 5 $19.49 Step 5 $19.49 Step 5 $19.88 Step 5 $19.88
Step 1 $15.56 Step 1 $15.87 Step 1 $15.87 Step 1 $16.20 Step 1 $16.20
Step 2 $16.38 Step 2 $16.71 Step 2 $16.71 Step 2 $17.05 Step 2 $17.05
Step 3 $17.24 Step 3 $17.59 Step 3 $17.59 Step 3 $17.95 Step 3 $17.95
Step 4 $18.15 Step 4 $18.52 Step 4 $18.52 Step 4 $18.89 Step 4 $18.89
Step 5 $19.10 Step 5 $19.49 Step 5 $19.49 Step 5 $19.88 Step 5 $19.88
Step 1 $19.33 Step 1 $19.73 Step 1 $19.73 Step 1 $20.13 Step 1 $20.13
Step 2 $20.35 Step 2 $20.77 Step 2 $20.77 Step 2 $21.19 Step 2 $21.19
Step 3 $21.42 Step 3 $21.86 Step 3 $21.86 Step 3 $22.30 Step 3 $22.30
Step 4 $22.55 Step 4 $23.01 Step 4 $23.01 Step 4 $23.47 Step 4 $23.47
Step 5 $23.74 Step 5 $24.22 Step 5 $24.22 Step 5 $24.71 Step 5 $24.71
924 Non-
exempt
930 Non-
exempt Library Page
935 Non-
exempt Maintenance Assistant
Librarian
925 Non-
exempt Library Clerk
936 Non-
exempt Open Space Technician
937 Non-
exempt Print Shop Assistant
Limited Hourly 2014-2017 Salary Schedule
FLSA
Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate
Salary Effective
07/01/2016
Salary Effective
01/01/2016
Salary Effective
07/01/2016
Job
Code Job Title
Salary Effective
1st PP following
Council Approval
Salary Effective
07/01/2015
Step 1 $27.98 Step 1 $28.55 Step 1 $28.55 Step 1 $29.12 Step 1 $29.12
Step 2 $29.45 Step 2 $30.05 Step 2 $30.05 Step 2 $30.65 Step 2 $30.65
Step 3 $31.00 Step 3 $31.63 Step 3 $31.63 Step 3 $32.26 Step 3 $32.26
Step 4 $32.63 Step 4 $33.29 Step 4 $33.29 Step 4 $33.96 Step 4 $33.96
Step 5 $34.35 Step 5 $35.04 Step 5 $35.04 Step 5 $35.75 Step 5 $35.75
Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 1 $22.24
Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 2 $23.41
Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 3 $24.64
Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 4 $25.94
Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 Step 5 $27.31
Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $11.24 Step 1 $12.00
Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $11.83 Step 2 $12.63
Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $12.45 Step 3 $13.29
Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $13.10 Step 4 $13.99
Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $13.79 Step 5 $14.73
Step 1 $9.69 Step 1 $9.89 Step 1 $11.00 Step 1 $11.24 Step 1 $12.00
Step 2 $10.20 Step 2 $10.41 Step 2 $11.58 Step 2 $11.83 Step 2 $12.63
Step 3 $10.74 Step 3 $10.96 Step 3 $12.19 Step 3 $12.45 Step 3 $13.29
Step 4 $11.31 Step 4 $11.54 Step 4 $12.83 Step 4 $13.10 Step 4 $13.99
Step 5 $11.91 Step 5 $12.15 Step 5 $13.51 Step 5 $13.79 Step 5 $14.73
Step 1 $13.12 Step 1 $13.39 Step 1 $13.39 Step 1 $13.64 Step 1 $13.64
Step 2 $13.81 Step 2 $14.09 Step 2 $14.09 Step 2 $14.36 Step 2 $14.36
Step 3 $14.54 Step 3 $14.83 Step 3 $14.83 Step 3 $15.12 Step 3 $15.12
Step 4 $15.30 Step 4 $15.61 Step 4 $15.61 Step 4 $15.92 Step 4 $15.92
Step 5 $16.10 Step 5 $16.43 Step 5 $16.43 Step 5 $16.76 Step 5 $16.76
Step 1 $16.32 Step 1 $16.65 Step 1 $16.65 Step 1 $16.99 Step 1 $16.99
Step 2 $17.18 Step 2 $17.53 Step 2 $17.53 Step 2 $17.88 Step 2 $17.88
Step 3 $18.08 Step 3 $18.45 Step 3 $18.45 Step 3 $18.82 Step 3 $18.82
Step 4 $19.03 Step 4 $19.42 Step 4 $19.42 Step 4 $19.81 Step 4 $19.81
Step 5 $20.03 Step 5 $20.44 Step 5 $20.44 Step 5 $20.85 Step 5 $20.85
938 Non-
exempt Project Construction Inspector
939 Non-
exempt Project Specialist
942 Non-
exempt Recreation Leader II
943 Non-
exempt Recreation Leader III
940 Non-
exempt Recreation Aide
941 Non-
exempt Recreation Leader I
Limited Hourly 2014-2017 Salary Schedule
FLSA
Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate
Salary Effective
07/01/2016
Salary Effective
01/01/2016
Salary Effective
07/01/2016
Job
Code Job Title
Salary Effective
1st PP following
Council Approval
Salary Effective
07/01/2015
Step 1 $15.48 Step 1 $15.79 Step 1 $15.79 Step 1 $16.10 Step 1 $16.10
Step 2 $16.29 Step 2 $16.62 Step 2 $16.62 Step 2 $16.95 Step 2 $16.95
Step 3 $17.15 Step 3 $17.49 Step 3 $17.49 Step 3 $17.84 Step 3 $17.84
Step 4 $18.05 Step 4 $18.41 Step 4 $18.41 Step 4 $18.78 Step 4 $18.78
Step 5 $19.00 Step 5 $19.38 Step 5 $19.38 Step 5 $19.77 Step 5 $19.77
Step 1 $11.06 Step 1 $11.29 Step 1 $11.29 Step 1 $11.50 Step 1 $12.30
Step 2 $11.64 Step 2 $11.88 Step 2 $11.88 Step 2 $12.11 Step 2 $12.95
Step 3 $12.25 Step 3 $12.50 Step 3 $12.50 Step 3 $12.75 Step 3 $13.63
Step 4 $12.89 Step 4 $13.16 Step 4 $13.16 Step 4 $13.42 Step 4 $14.35
Step 5 $13.57 Step 5 $13.85 Step 5 $13.85 Step 5 $14.13 Step 5 $15.10
Step 1 $17.31 Step 1 $17.66 Step 1 $17.66 Step 1 $18.01 Step 1 $18.01
Step 2 $18.22 Step 2 $18.59 Step 2 $18.59 Step 2 $18.96 Step 2 $18.96
Step 3 $19.18 Step 3 $19.57 Step 3 $19.57 Step 3 $19.96 Step 3 $19.96
Step 4 $20.19 Step 4 $20.60 Step 4 $20.60 Step 4 $21.01 Step 4 $21.01
Step 5 $21.25 Step 5 $21.68 Step 5 $21.68 Step 5 $22.12 Step 5 $22.12
Step 1 $20.20 Step 1 $20.62 Step 1 $20.62 Step 1 $21.02 Step 1 $21.02
Step 2 $21.26 Step 2 $21.70 Step 2 $21.70 Step 2 $22.13 Step 2 $22.13
Step 3 $22.38 Step 3 $22.84 Step 3 $22.84 Step 3 $23.29 Step 3 $23.29
Step 4 $23.56 Step 4 $24.04 Step 4 $24.04 Step 4 $24.52 Step 4 $24.52
Step 5 $24.80 Step 5 $25.30 Step 5 $25.30 Step 5 $25.81 Step 5 $25.81
Step 1 $24.61 Step 1 $25.10 Step 1 $25.10 Step 1 $25.60 Step 1 $25.60
Step 2 $25.90 Step 2 $26.42 Step 2 $26.42 Step 2 $26.95 Step 2 $26.95
Step 3 $27.26 Step 3 $27.81 Step 3 $27.81 Step 3 $28.37 Step 3 $28.37
Step 4 $28.69 Step 4 $29.27 Step 4 $29.27 Step 4 $29.86 Step 4 $29.86
Step 5 $30.20 Step 5 $30.81 Step 5 $30.81 Step 5 $31.43 Step 5 $31.43
Step 1 $28.31 Step 1 $28.89 Step 1 $28.89 Step 1 $29.46 Step 1 $29.46
Step 2 $29.80 Step 2 $30.41 Step 2 $30.41 Step 2 $31.01 Step 2 $31.01
Step 3 $31.37 Step 3 $32.01 Step 3 $32.01 Step 3 $32.64 Step 3 $32.64
Step 4 $33.02 Step 4 $33.69 Step 4 $33.69 Step 4 $34.36 Step 4 $34.36
Step 5 $34.76 Step 5 $35.46 Step 5 $35.46 Step 5 $36.17 Step 5 $36.17
950 Non-
exempt Technical Specialist
951 Non-
exempt Arts & Science Professional I
948 Non-
exempt Stock Clerk
949 Non-
exempt Swim Instructor/Lifeguard
952 Non-
exempt Arts & Science Professional II
983 Non-exemptArts & Science Professional III
Limited Hourly 2014-2017 Salary Schedule
FLSA
Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate
Salary Effective
07/01/2016
Salary Effective
01/01/2016
Salary Effective
07/01/2016
Job
Code Job Title
Salary Effective
1st PP following
Council Approval
Salary Effective
07/01/2015
Step 1 $14.35 Step 1 $14.64 Step 1 $14.64 Step 1 $14.92 Step 1 $14.92
Step 2 $15.10 Step 2 $15.41 Step 2 $15.41 Step 2 $15.71 Step 2 $15.71
Step 3 $15.89 Step 3 $16.22 Step 3 $16.22 Step 3 $16.54 Step 3 $16.54
Step 4 $16.73 Step 4 $17.07 Step 4 $17.07 Step 4 $17.41 Step 4 $17.41
Step 5 $17.61 Step 5 $17.97 Step 5 $17.97 Step 5 $18.33 Step 5 $18.33
Step 1 $9.47 Step 1 $9.66 Step 1 $11.00 Step 1 $11.24 Step 1 $12.00
Step 2 $9.97 Step 2 $10.17 Step 2 $11.58 Step 2 $11.83 Step 2 $12.63
Step 3 $10.49 Step 3 $10.71 Step 3 $12.19 Step 3 $12.45 Step 3 $13.29
Step 4 $11.04 Step 4 $11.27 Step 4 $12.83 Step 4 $13.10 Step 4 $13.99
Step 5 $11.62 Step 5 $11.86 Step 5 $13.51 Step 5 $13.79 Step 5 $14.73
Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 1 $22.24
Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 2 $23.41
Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 3 $24.64
Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 4 $25.94
Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 Step 5 $27.31
Step 1 $26.46 Step 1 $26.99 Step 1 $26.99 Step 1 $22.42 Step 1 $22.42
Step 2 $26.46 Step 2 $26.99 Step 2 $26.99 Step 2 $23.60 Step 2 $23.60
Step 3 $26.46 Step 3 $26.99 Step 3 $26.99 Step 3 $24.84 Step 3 $24.84
Step 4 $26.46 Step 4 $26.99 Step 4 $26.99 Step 4 $26.15 Step 4 $26.15
Step 5 $26.46 Step 5 $26.99 Step 5 $26.99 Step 5 $27.53 Step 5 $27.53
Step 1 $21.17 Step 1 $21.60 Step 1 $21.60 Step 1 $17.96 Step 1 $17.96
Step 2 $21.17 Step 2 $21.60 Step 2 $21.60 Step 2 $18.90 Step 2 $18.90
Step 3 $21.17 Step 3 $21.60 Step 3 $21.60 Step 3 $19.89 Step 3 $19.89
Step 4 $21.17 Step 4 $21.60 Step 4 $21.60 Step 4 $20.94 Step 4 $20.94
Step 5 $21.17 Step 5 $21.60 Step 5 $21.60 Step 5 $22.04 Step 5 $22.04
Step 1 $15.56 Step 1 $15.87 Step 1 $15.87 Step 1 $16.20 Step 1 $16.20
Step 2 $16.38 Step 2 $16.71 Step 2 $16.71 Step 2 $17.05 Step 2 $17.05
Step 3 $17.24 Step 3 $17.59 Step 3 $17.59 Step 3 $17.95 Step 3 $17.95
Step 4 $18.15 Step 4 $18.52 Step 4 $18.52 Step 4 $18.89 Step 4 $18.89
Step 5 $19.10 Step 5 $19.49 Step 5 $19.49 Step 5 $19.88 Step 5 $19.88
953 Non-
exempt Arts & ScienceTechnician
954 Non-
exempt Arts & Science Aide
961 Non-
exempt Police Reserve II
962 Non-
exempt Technician I
955 Non-
exempt Zoological Assistant
960 Non-
exempt Police Reserve I
Limited Hourly 2014-2017 Salary Schedule
FLSA
Steps Rate Steps Rate Steps Rate Steps Rate Steps Rate
Salary Effective
07/01/2016
Salary Effective
01/01/2016
Salary Effective
07/01/2016
Job
Code Job Title
Salary Effective
1st PP following
Council Approval
Salary Effective
07/01/2015
Step 1 $21.38 Step 1 $21.80 Step 1 $21.80 Step 1 $22.24 Step 1 $22.24
Step 2 $22.50 Step 2 $22.95 Step 2 $22.95 Step 2 $23.41 Step 2 $23.41
Step 3 $23.68 Step 3 $24.16 Step 3 $24.16 Step 3 $24.64 Step 3 $24.64
Step 4 $24.93 Step 4 $25.43 Step 4 $25.43 Step 4 $25.94 Step 4 $25.94
Step 5 $26.24 Step 5 $26.77 Step 5 $26.77 Step 5 $27.31 Step 5 $27.31
Min Max Min Max Min Max Min Max Min Max
$10 $130 $10 $130 $11 $130 $11.24 $130 $12.00 $130
Min Max Min Max Min Max Min Max Min Max
$10 $100 $10 $100 $11 $100 $11.24 $100 $12.00 $100TBDTBDGeneral Laborer
963 Non-
exempt Technician II
972 TBD Management Specialist
Fee Title FY17 Rate Proposed FY 18
Parking Permit ‐ Business District
800 High Street ‐ Parking Permit (See below, consolidated under All Downtown and
SOFA Garages and Lots)
$146.50 per quarter; $466.00
per year
Consolidated Below
California Avenue Area ‐ One Day Daily Parking Permit $8.00 per day $25.00 per day
California Avenue Area District All Garages and Lots, quarterly and six month permits
prorated based on annual amount
$49.50 per quarter; $149.00
per year
$365.00 per year
California Avenue Business District All Lots, Transferable Permit (See above,
consolitated under California Avenue Area Parking Permit)
$49.50 per quarter Consolidated Above
Lot X ‐ Sheraton Parking Lot (See below, consolidated under All Downtown and SOFA
Garages and Lots)
$146.50 per quarter; $466.00
per year
Consolidated Below
University Avenue ‐ All Lots All Downtown and SOFA Garages and Lots, quarterly and
six‐month permits prorated based on annual amount
$146.50 per quarter; $466.00
per year
$730.00 per year
Downtown and SOFA Garages and Lots ‐ One Day Parking Permit $17.50 per day $25.00 per day
University Avenue ‐ Transferable Permit (See above, consolidated under All
Downtown and SOFA Garages and Lots)
$145.50 per quarter Consolidated
Parking Permit Commercial/Construction
Parking Space Closure (on‐street, lots and garages)N/A $25.00 per space per day
Temporary Work Parking Permit in RPP areas N/A $100.00 per month
Parking Permit ‐ Residential
College Terrace ‐ Annual Permit Annual Resident/Guest Permit $40.00 per permit $50.00 per permit
College Terrace ‐ Guest Permit (see above, consolidated under College Terrace
Annual Resident Permit)
$40.00 per permit Consolidated Above
College Terrace ‐ Lost Guest Permit $40.00 per permit Deleted
College Terrace RPP ‐ Daily Resident Parking Permit $5.00 $5.00
Downtown RPP ‐ Annual Guest Permit for Residents $50.00 per annual permit Deleted
Downtown RPP ‐ Annual Permit (Low Wage) Reduced‐price Employee Parking Permit $100.000 per annual permit $50.00 per six months
Downtown RPP ‐ Annual Resident Parking Permit $50.00 per additional annual
permit, first one free
$50.00 per year, first one free
Downtown RPP ‐ Daily Resident Parking Permit $5.00 per day $5.00 per day
Downtown RPP ‐ Annual Permit (Standard Employee) Full‐Price Employee Parking
Permit
$466.00 per annual permit $365.00 per six months
Downtown RPP ‐ Daily Employee Guest Parking Permit $5.00 per day $25.00 per day
Downtown RPP ‐ Five‐day Employee Guest Permit $15.00 per 5 day period in the
same week
Deleted
Downtown RPP ‐ Visitor Permit $5.00 each for 24 hour, 50 max
per year
Deleted
Residential ‐ Day Use Permit Downtown RPP ‐Daily Resident Parking Permit $5.00 per permit $5.00 per day
Residential ‐Disabled Parking Permit Standard On‐Street Disabled Parking Space
Note: This space is not for the exclusive use of the applicant; anyone with appropriate
designation may use it
$250.00 per year $915.00 per five years
Crescent Park NOP Daily Resident Parking Permit $5.00 per night $5.00 per night
Residential ‐ Other (Trial) Crescent Park NOP Annual Resident Parking Permit $100.00 through trial period $50.00 per year
Evergreen Park‐Mayfield RPP ‐ Daily Resident Parking Permit $5.00 per day $5.00 per day
Evergreen Park‐Mayfield RPP ‐ Daily Employee Parking Permit $5.00 per day $25.00 per day (after pilot)
Evergreen Park‐Mayfield RPP ‐ Annual Resident Parking Permit $50.00 per year $50.00 per year, first one free
Evergreen Park‐Mayfield RPP ‐ Reduced price Employee Parking Permit $50.00 per year $25.00 per six months
Evergreen Park‐Mayfield RPP ‐ Full Price Employee Parking Permit $149.00 per year $182.50 per six months (after
pilot)
Valet Parking
On‐Street Parking Space Rental $79.00 per space per
week
$25 per space per day
Parking at a Glance
ATTACHMENT P
Fiscal Year 2018 City Manager’s
Proposed Operating & Capital Budget, & Municipal Fees Finance
Committee Proceedings
(Presentations, At Places Memorandum, Transcripts)
These documents were originally distributed throughout the Finance Committee Budget Hearing
proceedings including the Planning and Transportation Commission review of the FY 2018‐2022
Capital Improvement Program during the month of May 2017. Documents and presentations
are organized by the meeting date they were distributed at.
May 2, 2017: Finance Committee
‐ Agenda: http://www.cityofpaloalto.org/civicax/filebank/documents/57238
‐ Presentation: http://www.cityofpaloalto.org/civicax/filebank/documents/57693
‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57694
‐ Action Minutes: http://www.cityofpaloalto.org/civicax/filebank/documents/57763
‐ Transcript: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=57763
May 4, 2017: Finance Committee
‐ Agenda: http://www.cityofpaloalto.org/civicax/filebank/documents/57239
‐ Presentation: http://www.cityofpaloalto.org/civicax/filebank/documents/57743
‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57742 (Airport Fund)
‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57746 (HSRAP)
‐ Action Minutes: http://www.cityofpaloalto.org/civicax/filebank/documents/57762
‐ Transcript: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=58300
May 9, 2017: Finance Committee
‐ Agenda: http://www.cityofpaloalto.org/civicax/filebank/documents/57461
‐ Presentation: http://www.cityofpaloalto.org/civicax/filebank/documents/57781
‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57780
‐ Action Minutes: http://www.cityofpaloalto.org/civicax/filebank/documents/57862
‐ Transcript: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=57862
May 10, 2017: Planning Transportation Commission
‐ Transcript: http://www.cityofpaloalto.org/civicax/filebank/documents/58176
May 18, 2017: Finance Committee
‐ Agenda: http://www.cityofpaloalto.org/civicax/filebank/documents/57739
‐ Presentation: http://www.cityofpaloalto.org/civicax/filebank/documents/57899
‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57884 (Parking Permit
Muni Fees Memo from Planning and Community Environment)
‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57898 (Electric Vehicle
Charging Stations)
‐ At Places Memorandum: http://www.cityofpaloalto.org/civicax/filebank/documents/57875 (Bdgt Wrap Up)
‐ Action Minutes: http://www.cityofpaloalto.org/civicax/filebank/documents/58022
‐ Transcript: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=58022
ATTACHMENT Q
City of Palo Alto | City Clerk's Office | 6/14/2017 12:01 PM
1
Carnahan, David
From:Fred Balin <fbalin@gmail.com>
Sent:Tuesday, June 13, 2017 1:02 PM
To:Council, City
Subject:Proposed PAFD Budget Adjustment: Text of Remarks Last Night
FYI. My remarks in oral communications last night.
-Fred Balin
2385 Columbia Street
——
What will you cut in fire department services to meet a proposed $1.3 million savings? Citizens have a right to
know.
The purpose of the budget process is to elicit informed public reaction. Bring forth the details.
These cuts, if approved, will most likely come at the expense of engine service while still seeking to increase
revenue-generating, ambulance transports.
We’ve been at this key decision point before:
Fiscal Year 2013 proposed an increase from one to two full-time ambulances; which went forward.
It also proposed $1.1 million in savings by shutting an engine when daily staffing was “low." Then as now,
daily staffing is almost always low, as the department operates with up to 15 fewer bodies than budgeted
positions. Shutting an engine every day would reduce overtime costs and meet the reduction target. That plan
was not enacted.
Now, with the aid of opacity, the city seeks to impose its equivalent.
You need at least three engines, very rapidly, at a structure fire to save lives and contain loss.
Engines also handle all kinds of other rescues: technical, rope, vehicle extrication, hazmat.
And our 6 engines, with paramedic in crew, are strategically located.
In the life-saving response to Andrew Milne’s sudden cardiac arrest, detailed here last week, an engine was the
first responder, as it almost always is.
Key numbers continue to rise:
Population — resident and commuter — densities, construction, congestion, call volume … in Palo Alto, on
campus, at the VA.
Dry weather remains a perennial.
And logistics will soon be tested when the Rinconada engine moves near the Baylands, for 18 months, during
station reconstruction.
These proposed cuts to public safety demand full disclosure and a serious public conversation.
If you are unable or unwilling to bring that information forward and engage in the follow-on dialog, then you
should not be on this dais.
ATTACHMENT R
City of Palo Alto | City Clerk's Office | 6/14/2017 12:01 PM
2
Thank you.
## -fb 6/12/17
ATTACHMENT R