HomeMy WebLinkAboutStaff Report 6932
City of Palo Alto (ID # 6932)
City Council Staff Report
Report Type: Action Items Meeting Date: 6/13/2016
City of Palo Alto Page 1
Summary Title: FY2017 Adopted Budget
Title: PUBLIC HEARING & PROPOSITION 218 HEARING: Adoption of Budget
Amendment Ordinance for Fiscal Year 2017, including Adoption of Operating
& Capital Budgets and Municipal Fee Schedule; Adoption of the Following
Resolutions: Adopting a Dark Fiber Rate Increase of 3.2 Percent and
Amending Utility Rate Schedules EDF-1 & EDF-2; Approving the FY 2017
Electric Financial Plan & Amending the Electric Utility Reserves Management
Practices; Adopting an Electric Rate Increase of 11 Percent and Amending
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,
E-14, & E-16 & Repealing Utility Rate Schedules E-18 & E-18-G; Approving the
FY 2017 Gas Utility Financial Plan; Adopting a Gas Rate Increase of 8 Percent
and Amending Utility Rate Schedules G-1, G-1-G, G-2, G-2-G, G-3, G-3-G, G-
10, & G-10-G; Adopting Refuse Rate Changes Including a 7 Percent Decrease
and Up to a Percent Increase & Amending Utility Rate Schedule R-1, &
Consolidating Utility Rate Schedules R-2 & R-3 Into a New Utility Rate
Schedule Designated R-C; Amending Utility Rate Schedule D-1 to Increase
Storm Drain Rates 3.2 Percent per Month per Equivalent Residential Unit for
FY 2017; Approving the FY 2017 Wastewater Collection Utility Financial Plan;
Adopting a Wastewater Collection Fee Increase of 9 Percent & Amending
Utility Rate Schedules S-1, S-6, and S-7; Approving the FY 2017 Water Utility
Financial Plan; Adopting a Water Rate Increase of 6 Percent and Amending
Utility Rate Schedules W-1, W-2, W-3, W-4, & W-7; Amending Salary
Schedules for the Utilities Management Professional Association of Palo Alto
(UMPAPA), the Service Employees International Union (SEIU), and the
International Association of Fire Fighters (IAFF)
From: City Manager
Lead Department: Administrative Services
City of Palo Alto Page 2
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 2017 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 2017 Proposed Operating and Capital
Budget (Attachment – A, Exhibit 2);
c. Fiscal Year 2017 City Table of Organization (City Manager’s Fiscal Year 2017 Proposed
Operating Budget on pages 481 through 497); and
d. Fiscal Year 2017 Proposed Municipal Fee Changes (Attachment – A, Exhibit 3).
2. Resolution of the City Council of the City of Palo Alto increasing the Dark Fiber Rates by
3.2% effective July 1, 2016 by Amending the EDF-1 and EDF-2 Rate Schedules (Attachment –
B).
3. Resolutions of the City Council of the City of Palo Alto:
a. Approving the Fiscal Year 2017 Electric Financial Plan and Amending the Electric
Utility Reserves Management Practices (Attachment – C), and
b. Increasing Electric Rates by 11% Effective July 1, 2016 by Amending the E-1, E-2, E-2-
G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU, E-14, and E-16 Rate Schedules, and
Repealing Rate Schedules E-18 and E-18-G (Attachment – D).
4. Resolutions of the City Council of the City of Palo Alto:
a. Approving the Fiscal Year 2017 Gas Utility Financial Plan (Attachment – E); and
b. Increasing Gas rates by 8% effective July 1, 2016 by amending Rate Schedules G-1
(Residential Gas Service), G-1-G (Residential Green Gas Service), G-2 (Residential
Master-Metered and Commercial Gas Service), G-2-G (Residential Master-Metered
and Commercial Green Gas Service), G-3 (Large Commercial Gas Service), G-3-G
(Large Commercial Green Gas Service), G-10 (Compressed Natural Gas Service) and
G-10-G (Compressed Natural Green Gas Service) (Attachment – F).
5. Resolution of the City Council of the City of Palo Alto amending the Refuse Rates for Fiscal
Year 2017 between a decrease of 7% and increases of up to 9% effective July 1, 2016
(Attachment – G) to cover program costs for both Residential and Commercial Sectors and
provide a reduced cost for commercial compost collection by:
a. Amending Utility Rate Schedule R-1 (Residential Refuse Rates) (Attachment – H); and
b. Reorganizing Utility Rate Schedules R-2 and R-3 (Commercial Refuse Rates) into a
new Utility Rate Schedule designated R-C (Commercial Refuse Rates) (Attachment –
I).
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6. Resolution of the City Council of the City of Palo Alto amending Utility Rate Schedule D-1
(Storm Water and Surface Water Drainage) to increase by 3.2% per month per equivalent
residential unit for Fiscal Year 2017 (Attachment – J).
7. Resolutions of the City Council of the City of Palo Alto:
a. Approving the Fiscal Year 2017 Wastewater Collection Utility Financial Plan
(Attachment – K); and
b. Increasing Wastewater Collection rates by 9% by amending rate schedules S-1
(Residential Wastewater Collection and Disposal), S-6 (Restaurant Wastewater
Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal –
Industrial Discharger) (Attachment – L) .
8. Resolutions of the City Council of the City of Palo Alto:
a. Approving the Fiscal Year 2017 Water Utility Financial Plan (Attachment – M); and
b. Increasing Water Rates by 6% by amending Rate Schedules W-1 (General Residential
Water Service), W-2 (Water Service from Fire Hydrants), W-3 (Fire Service
Connections), W-4 (Residential Master-Metered and General Non-Residential Water
Service), and W-7 (Non-Residential Irrigation Water Service) (Attachment – N).
9. Resolution of the City Council of the City of Palo Alto Amending Salary Schedules for:
a. Utilities Management Professional Association of Palo Alto (UMPAPA) Salary
Schedule, as Amended by Resolution No. 9527 to add one new position
classification, delete one position classification, and change the title of one position
classification (Attachment O, Exhibit 1);
b. Service Employees International Union (SEIU) 2015-2018 MOA, adopted on April 11,
2016 (CMR #6789), to add four position classifications and update the salary rates
for one position classification (Attachment O, Exhibit 2);
c. Service Employees International Union (SEIU) 2013-2015 MOA, as Amended by
Resolution No. 9398 to change the title of one position classification (Attachment O,
Exhibit 3); and
d. International Association of Fire Fighters (IAFF) 2016-2017 MOA adopted on April 11,
2016 (CMR #6789) to add two position classifications and delete three Position
classifications (Attachment O, Exhibit 4).
EXECUTIVE SUMMARY
During April and May 2016, the City Council and Finance Committee have received and been
reviewing the City Manager’s Fiscal Year 2017 Proposed Operating and Capital Budgets as well
as various fee and rate changes recommended by staff. During these discussions some 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 these changes. The
sections include:
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Fiscal Year 2017 Finance Committee Budget Balancing Process
City Manager’s Final Recommended Amendments to the Fiscal Year 2017 Proposed
Budget
Table of Organization
Municipal Fee Schedule
Fiscal Year 2017 Proposed Rate Changes
Compensation Plans
Referral Items for Full Council at the Request of the Finance Committee
Attachments
The first section outlines the Finance Committee budget balancing process. It outlines the
changes that the Finance Committee recommended at staff’s recommendation during the
duration of the hearings. These changes resided in the Capital Proposed Budget. It then
summarizes the balancing process that the Finance Committee ultimately used during the
Budget Wrap-up session where two scenarios and a few points of additional information were
recommended and requested by the committee. The Finance Committee also made a motion
to recognize areas where they were unable to reach a majority opinion for the City Council’s
edification. In response to the scenarios and additional information requested by the
Committee this report then outlines and summarizes the recommended changes to the FY 2017
Proposed Operating and Capital Budgets in totality.
Lastly 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.
Attached to this report are a number of documents as outlined and referenced throughout the
recommendation language and the report. In addition, attached are all the materials presented
throughout the budget process to both the City Council and/or the Finance Committee.
Attached documents include:
various City Manager Reports and At Places Memorandums transmitted
presentations made during the budget hearings
transcripts from the following City Council or Finance Committee Hearings: April 25th,
May 3rd, 5th, 10th, 12th, and 17th meetings
Not included in this CMR is the transcript for the May 23, 2016 Budget Wrap-up meeting or the
approval of the GANN Limit. It is anticipated that these will be transmitted separately in late
packet or as separate items for City Council consideration.
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FISCAL YEAR 2017 FINANCE COMMITTEE BUDGET BALANCING PROCESS
Finance Committee Tentatively Approved Changes: 2 CIP changes + Reappropriations
Only two formal changes to the FY 2017 Proposed Budget were recommended by the Finance
Committee prior to the Budget Wrap-up meeting on May 23, 2016. The Finance Committee
tentatively approved staff recommended changes to the Electric Fund and the Capital
Improvement Fund. In the Electric Fund, a new Facility Relocation for CalTrain Modernization
(EL-17007) capital project with $150,000 in Fiscal Year 2017 was added to study the cost of
relocating overhead electric and fiber optic lines to allow for the conversion of CalTrain from
diesel to electric power. In the Capital Improvement Fund, the funding in Fiscal Year 2017 for
the Art in Public Spaces (AC-86017) capital project was reduced by $156,327 due to a
calculation error with an offsetting adjustment to the Infrastructure Reserve Balance.
The two adjustments are outlined below with additional details that can be found in the May
17, 2016 At Places memorandum.
Proposed Revision Description
FY 2017
Current
Proposed
Budget
Tentative
Approved
Change
FY 2017
Revised
Proposed
Budget
Electric Fund
Facility Relocation for Caltrain Modernization
Project (EL-17007)
$0 $150,000 $150,000
Supply Operations Reserve
(FY 2017 Proposed Operating Budget pp.102)
$24,507,000 ($150,000) $24,357,000
General Capital Fund
Art in Public Spaces (AC-86017) $579,840 ($156,327) $423,513
General Capital Fund Infrastructure Reserve
(FY 2017 Proposed Capital Budget pp.91)
$11,594,442 $156,327 $11,750,769
Finance Committee Recommended General Fund Balancing Options
At the Budget Wrap-up meeting on May 23, 2016, the Finance Committee approved two
motions outlining changes to the City Manager’s FY 2017 Proposed Budgets, these motions
outlined a Scenario A and a Scenario B as discussed in detail below.
Included in the City Manager’s Proposed Operating Budget was an estimated June 30, 2016 BSR
level of $40.5 million with a recommended draw on this reserve by $4.9 million bringing the FY
2017 recommended BSR level to approximately 18% or $35.6 million of the estimated FY 2017
expenses. The scenarios below outline 1) the changes to draw on the BSR for FY 2017, 2)
provides the revised estimated percent of FY 2017 expenses in the General Fund, and 3)
context of the revised FY 2017 BSR level based on the City Council adopted policies guiding the
BSR level (15% of General Fund expenses minimum, 20% of General Fund expenses maximum,
with an 18.5% target level within that range).
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Finance Committee Recommended Changes – Scenario A
On May 23, 2016, the Finance Committee approved a motion to amend the City Manager’s FY
2017 Proposed Budget with the actions outlined in the scenario below. These changes would
result in a reduction to the Budget Stabilization Reserve proposed use of $4.9 million to $3.5
million, resulting in a $37.0 million BSR or 18.8% of the FY 2017 Proposed Expenses.
Finance Committee Recommended Changes – Scenario B
On May 23, 2016, the Finance Committee approved a motion to amend the City Manager’s FY
2017 Proposed Budget with the actions outlined in scenario A and then they made a
subsequent motion directing staff to explore a second scenario B that would eliminate any
draw on the Budget Stabilization Reserve, thereby increasing the potential reductions to the
General CIP in FY 2017 from $2.0 million to $5.5 million in total. These changes would result in
no reduction to the Budget Stabilization Reserve leaving it slightly above the 20% maximum at
an estimated 21% of expenditures or $40.5 million.
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Finance Committee Identified Areas of Differing Opinions
During the Finance Committee Budget Hearings, a number of items arose where a majority vote
to recommend a certain change was unable to be achieved. The Finance Committee directed
staff to provide a list of these areas that they struggled to find consensus, which is outlined
below:
A request to ask staff for a 1.0 FTE position reduction or a 2.0 FTE position reduction
City Manager’s recommended Office of Sustainability Contingency of $250,000
reduction by 50% to $125,000; FY 2017 Proposed Operating Budget page 469.
Fire Station Furniture, Fixtures, & Equipment - Phase 2 (exercise equipment) one year
deferral; FY 2017 Proposed Operating Budget page 250.
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Changes to the Planning & Transportation Contingency dependent on additional details
on the potential use of these funds (additional information outlined below).
Tree trimming Services frequency cycle, 7 year, 10 year, or 15 year cycle.
Downtown Parking Wayfinding (PL-15004) reallocation of $600,000 University Avenue
Parking Permit Fund support to other initiatives with the goal to achieve General Capital
Improvement Fund savings; FY 2017 Proposed Capital Budget page 278-279.
Human Services Resource Allocation Process (HSRAP) additional funding of $50,000 for
emerging needs
Additional Information Provided by Staff at the Request of the Finance Committee
The Finance Committee requested additional information from staff in regards to the
implications of their proposed balancing solutions. This information is detailed below as
requested.
General Capital Improvement Fund Potential Scenario Impacts: $2.0 million or $5.5 million
At the May 23, 3016 Finance Committee Budget Wrap-up meeting, the Finance Committee
approved a motion requesting staff to provide two scenarios in which the Fiscal Year 2017
General Capital Improvement Fund budget be reduced or deferred by $2.0 million and $5.5
million. At the Finance Committee’s request, staff reviewed the Proposed Capital Budget
focusing only on the projects included in the FY 2017 Capital Budget. After looking at the status
of current projects and the upcoming pipeline in the context of resource capacity, the following
projects have been identified by staff that could be deferred to FY 2018 and beyond in order to
reach the Fiscal Year 2017 $2.0 million to $5.5 million target reduction. The value represents
the net FY 2017 hard costs of the project, excluding salaries and benefits and adjusted for
outside funding sources which will be reallocated to support other capital initiatives under way.
It should be noted, that this one year deferral will be reviewed in the context of the full five
year Capital Improvement Plan as part of the development of the FY2018-FY2022 Proposed CIP
to ensure project plans align within the five year plan.
Potential project deferrals:
- Ramos Park Improvements (PG-14000); page 226 $ 175,000
- Ventura Buildings Improvements (PE-15011); page 174 $ 600,000
- Municipal Services Center A, B, & C, Roof Replacement (PF-17000); $ 817,000
Page 150
- Rinconada Park Improvements (PE-08001); page 228 $3,335,000
$4,927,000
Planning & Transportation Contingency Reserve: $500,000
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On May 10, 2016, the Finance Committee discussed the Department of Planning and
Community Environment’s need for additional resources. As a result, staff recommended a
$500,000 contingency reserve, similar to the $500,000 transportation contingency reserve in FY
2016. The Department would use this reserve to supplement staff resources in furtherance of
City Council priority projects during the course of the year. Specific uses of the reserve would
require City Council approval, and recommended uses would include, but may not be limited to
the following activities:
Urban design support: The Department would retain the services of an architect or
urban design professional to support staff’s work and to manage the preparation of
design guidelines for two story homes in Eichler neighborhoods (either in the form of
standalone guidelines or an amendment/supplement to the Individual Review (IR)
guidelines).
Middlefield Road traffic analysis and safety enhancements: The City has committed to
undertake a review of the time of day turn restrictions implemented on a trial basis at
two intersections along Middlefield Road close to the border with Menlo Park. The
review will include a comprehensive analysis of traffic safety in this area, community
engagement, and analysis of options for the future. This analysis and implementation of
the selected option are not currently budgeted.
Shuttle and RPP expenditures: A portion of the Department’s FY 2016 contingency was
used to support implementation of Downtown RPP phase two, and the FY 2017
contingency could likewise support any unanticipated costs associated with the
Evergreen Park and Southgate programs. The contingency could also support shuttle
service expansions, either in the form of increased frequencies or a new route(s), if the
City Council elects to pursue these expansions based on results of an ongoing study of
the shuttle system.
This funding will increase the Planning and Community Environment’s effectiveness and
responsiveness in the course of the year.
2.0 FTE Position Eliminations
As part of the Finance Committee recommended balancing revisions approved on May 23,
2016, a request for 2.0 FTE position reductions was requested. The City Manager is currently
evaluating staffing resources and priorities throughout the City and will bring forward a
recommendation at a later time.
Post Office Acquisition
Concurrent with the development of the FY 2017 Proposed Operating and Capital Budgets, the
City has explored the acquisition of the Post Office Building on Hamilton Avenue. As discussed,
no assumptions for either the acquisition costs or the remodel costs associated with outfitting
the space for City use have been included in the City Manager’s FY 2017 Proposed Budget. It is
anticipated that the acquisition costs would need to be financed and a further reprioritization
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beyond the reprioritization of projects outlined in this report will be necessary for the full FY
2017-2021 Capital Improvement Plan in the General Capital Improvement Fund.
Golf Course Reconfiguration
As discussed during the May 23, 2016 Finance Committee meeting, staff is currently in the
midst of evaluating the bids received for the Golf Course Reconfiguration CIP and the financial
feasibility of the project given the project costs versus projected future Golf Course revenue. It
is anticipated that a discussion surrounding the reconfiguration project will be brought forward
at the June 20, 2016 City Council meeting.
CITY MANAGER’S FINAL RECOMMENDED AMENDMENTS TO THE FISCAL YEAR 2017
PROPOSED BUDGET
Based on the Finance Committee Budget Hearing deliberations and requested changes during
the month of May 2016 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 2017 Proposed
Operating and Capital Budgets distributed to the City Council on April 25, 2016.
General Fund
Summary of Recommended Changes to the FY 2017 City Manager’s Proposed Budget
Throughout the FY 2017 Budget hearings, the Finance Committee members recommended
amendments to the FY 2017 City Manager Proposed Budget as described above in Scenario A
and Scenario B. Staff has worked to incorporate those directions into the amended budget,
including:
a $170,000 increase for the Tree Trimming Contract associated with decreasing the cycle
time from 15 years to 10 years in the next contract;
a $280,000 increase for Operations and Maintenance costs associated with two new
RPP programs for Evergreen and Southgate;
a $500,000 Planning and Transportation Contingency Fund;
a $374,000 reduction in expenses in the Non-Departmental section reflects a
placeholder for savings that is anticipated to be identified as a result of 2.0 FTE position
eliminations; and
a reduction in the General Fund Transfer to the General Capital Fund in the amount of
$4.3 million.
In order to offset some of these recommended adjustments, staff has identified some
alternative funding for the two new RPP programs. Of the needed $280,000, partial funding of
$50,000 was included in the original Proposed Budget for Fiscal Year 2017 in the Residential
Parking Permit Fund, $70,000 is recommended to be used from the FY 2016 Transportation
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Contingency Fund, leaving a remaining balance of $160,000. After further consultation, staff
recommends postponing the California Avenue Retail Feasibility Study that was included in the
proposed budget, and that the $75,000 in funding allocated for that action in the Proposed
Budget is used for the RPP programs instead. The remaining $85,000 in funding necessary for
the development of these two new RPP programs is recommended to come from the general
fund Budget Stabilization Reserve.
All recommended changes to the City Manager’s FY 2017 Proposed Operating Budget are
explained in further detail in Attachment A, Exhibit 2, Amendments to the City Manager’s Fiscal
Year 2017 Proposed Operating and Capital Budgets.
Once adjusting for all the recommended changes, the revised draw on the BSR is $998,000.
This is a $3.9 million decrease from the levels proposed in the FY 2017 City Manager Proposed
Operating Budget of $4.9 million. The estimated FY 2017 BSR would be at $39.5 million or
20.4% of the FY 2017 General Fund Recommended Expenditure budget. This level is $3.6
million above the target level of 18.5% and slightly exceeds ($688,000) the 20% maximum as
approved by the City Council.
General Capital Improvement Fund
Summary of Recommended Changes to the FY 2017 City Manager’s Proposed Budget
In order to meet the directions requested by the Finance Committee and after further analysis
by staff, a number of adjustments are recommended to the Capital Improvement Fund as
outlined in detail in Attachment A, Exhibit 2. Adjustments primarily fall into two categories: 1)
projects have been identified and are recommended to be deferred for one year from FY 2017
to FY 2018 and 2) the reappropriation of projects from FY 2016 to FY 2017 ($1.8 million).
After looking at the status of current projects and the upcoming pipeline in the context of
resource capacity, three projects are recommended for deferral. This is compared to the four
projects outlined earlier to meet the request of the Finance Committee target level of
reductions. The Ventura Building Improvement’s Project is not recommended for deferral due
to the high priority level of this project for the City Council.
Attachment – A, Exhibit 2 outlines in detail the transactions to reduce the FY 2017 Proposed
Capital Budget and reallocate the staffing costs that will be redirected to complete remaining
projects in the pipeline. These changes are offset by a recommended reduction in the transfer
from the General Fund in the amount of $4.3 million, resulting in a net transfer of $17.6 million
including the $8.0 million of Transient Occupancy Tax proceeds.
The recommended project deferrals and the net potential savings to the General Capital Fund
include:
- Municipal Services Center A, B, & C, Roof Replacement (PF-17000) $ 817,000
- Ramos Park Improvements (PG-14000) $ 175,000
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- Rinconada Park Improvements (PE-08001) $3,335,000
$4,327,000
In total, when including recommended reappropriations of funds, a net reduction to the FY
2017 City Manager Proposed General Capital Improvement Fund Budget of $3.6 million is
recommended by staff. This would reduce the Capital Improvement Fund FY 2017 budget from
$71.9 million to $68.3 million.
Enterprise Funds
Summary of Recommended Changes to the FY 2017 City Manager’s Proposed Budget
Recommended adjustments in the various Enterprise Funds are minimal and outlined in
Attachment A, Exhibit 2. Overall, there are two types of changes recommended in the
Enterprise Funds, 1) the reappropriation of funds for various capital projects and 2)
recommended adjustments to projects to correct for omissions or defer projects.
Recommended Project Revisions
As approved by the Finance Committee, the addition of the Electric Fund Capital Improvement
Project: Facility Relocation for Caltrain Modernization Project was included in the
recommended changes. Subsequent to the printing of the FY 2017-2021 Proposed Capital
Improvement Plan, a new project was identified by the Utilities Department that is
recommended to be added to the five-year plan with $150,000 recommended to be budgeted
in FY 2017. This project is detailed in the At Places Memorandum dated May 17, 2016, and
provides funding for the relocation of overhead Utility Electric and Fiber Optic lines to provide
adequate clearance from new electric lines being installed by the Peninsula Corridor Joint
Powers Board (Caltrain) to convert their diesel powered commuter trains to electric power.
As discussed in the General Capital Improvement Fund Section, several Capital Improvement
Projects are recommended to be deferred from FY 2017. One of these projects, the Municipal
Services Center A, B, & C, Roof Replacement (PF-17000) Project is partially funded by some of
the Enterprise Funds, as shown in the table below:
- Electric Fund $308,204
- Fiber Optics Fund 18,671
- Gas Fund 144,273
- Refuse Fund 19,000
- Wastewater Treatment Fund 79,857
- Water Fund 132,995
$703,000
The remaining changes recommended in various Enterprise Funds reflect the reappropriation of
funds from FY 2016 to FY 2017 for capital projects as discussed later in this report.
In total, when including recommended reappropriations of funds, the following net changes
occur by fund:
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a net increase to the FY 2017 City Manager’s Proposed Electric Fund Capital Budget of
$4.3 million is recommended by staff.
a net increase to the FY 2017 City Manager’s Proposed Fiber Optics Fund Capital Budget
of $0.2 million is recommended by staff.
a net increase to the FY 2017 City Manager’s Proposed Gas Fund Capital Budget of $4.8
million is recommended by staff.
a net decrease to the FY 2017 City Manager’s Proposed Refuse Fund Capital Budget of
$0.1 million is recommended by staff.
a net increase to the FY 2017 City Manager’s Proposed Storm Drainage Fund Capital
Budget of $0.5 million is recommended by staff.
a net increase to the FY 2017 City Manager’s Proposed Wastewater Collection Fund
Capital Budget of $1.8 million is recommended by staff.
a net decrease to the FY 2017 City Manager’s Proposed Wastewater Treatment Fund
Capital Budget of $3.8 million is recommended by staff.
a net increase to the FY 2017 City Manager’s Proposed Water Fund Capital Budget of
$10.4 million is recommended by staff.
Internal Service Funds
Summary of Recommended Changes to the FY 2017 City Manager’s Proposed Budget
As discussed above, the Municipal Services Center A, B, & C, Roof Replacement (PF-17000)
Project is recommended to be deferred from FY 2017, and $380,000 of the project is funded by
the Vehicle Replacement Fund. In total, when including recommended reappropriations of
funds, a net increase to the FY 2017 City Manager Proposed Vehicle Replacement Fund Capital
Budget of $55,253 is recommended by staff.
In total, when including recommended reappropriations of funds, a net increase to the FY 2017
City Manager Proposed Technology Fund Capital Budget of $1.5 million is recommended by
staff.
Special Revenue Funds
As discussed above, the City Manager’s Fiscal Year 2017 Proposed Operating Budget included
$50,000 in the Residential Parking Permit Fund for initial work associated with new Residential
Parking Permit programs. Following the direction given by the City Council on May 9, 2016 to
establish new RPP programs in Evergreen Park and Southgate, an additional $230,000 will be
transferred from the General Fund to the Residential Parking Permit Fund for the establishment
of those programs. This action is detailed further in Attachment A, Exhibit 2, Amendments to
the City Manager’s Fiscal Year 2017 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, which are included in the 2017-2021 Proposed Capital
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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 the
October 2014 change to the Municipal Code, City Council authorization is now required for
reappropriations. The FY 2017 budget continues this process with the FY 2017 Proposed Capital
Budget including approximately $58.0 million in reappropriated funds, across all funds. In the
time since the Proposed Budget figures were developed (late winter and early spring of 2016),
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 2017 Capital Budget with current, more
refined estimated activity levels in Fiscal Year 2016. Cumulatively, this re-review of projects has
resulted in staff’s recommendation to increase the Fiscal Year 2017 Proposed Budget by a net
total of $21.7 million. These adjustments, as outlined in detail in Attachment – A Exhibit 2, will
ensure that funds are available at the onset of Fiscal Year 2017 for projects that have
experienced delays in the current year and will reduce the Fiscal Year 2017 Proposed budget for
projects that experienced higher than anticipated expenditure levels in Fiscal Year 2016. These
projects are at various stages of their plans and the funding is required to fulfill the
commitment and/or contractual obligations.
TABLE OF ORGANIZATION
At this time, no changes from the Table or Organization as outlined in the City Manager’s FY
2017 Proposed Operating Budget on pages 481 through 497 for full time benefited positions
are recommended. As discussed earlier, an evaluation of a 2.0 FTE position reduction
recommendation from the City Manager is pending. Once that is brought forward, a motion
can be made to amend the Table of Organization as outlined in the FY 2017 Proposed Operating
Budget as appropriate.
MUNICIPAL FEE SCHEDULE
On May 12, 2016, the Finance Committee recommended that the City Council adopt the
changes to the Fiscal Year 2017 Proposed Municipal Fee Schedule with amendments
(Attachment A, Exhibit 5). Major changes made to the Fiscal Year 2016 Proposed Municipal Fee
Schedule include a 5.5% 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 Municipal Codes.
Additionally, as detailed in the attached City Manager’s Report, the Finance Committee
approved eleven new fees, 118 fees adjusted by a rate other than 5.5% to either adjust for cost-
recovery levels, align with market value, or capture other technical adjustments, and the
deletion of eight fees. It should be noted that amendments to Municipal Fees for Development
Services, with the exception of the Public Works division, will be brought forward separately
following the completion of a cost of services analysis that is currently underway.
FISCAL YEAR 2017 PROPOSED RATE CHANGES
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Staff and the Finance Committee recommend that the City Council approve the Utility Rate
Changes listed below. These rate changes were approved by the Finance Committee between
April and May of 2016.
Dark Fiber Optic Rate Increase (Attachment B): Rates are adjusted annually based on the
Consumer Price Index (CPI). The Fiber Optic Rate will increase 3.2% to reflect the annual
CPI change. See Attachment B for more information.
FY 2017 Electric Financial Plan (Attachment C) and Electric Rate Increase (Attachment
D): The FY 2017 Electric Utility Financial Plan includes projections of the utility’s costs
and revenues through FY 2023. Costs are projected to rise substantially for the next
several years, most notably for electric supply purchases, transmission costs, and
additional capital investments. An 11% overall rate increase is proposed for July 1, 2016,
although the actual rate increases for each customer class will differ as a result of
rebalancing of the cost allocation between customer groups as determined by the new
cost of service analysis (COSA). See Staff Report #6857 for additional information.
FY 2017 Gas Financial Plan (Attachment E) and Gas Rate Increase (Attachment F): The FY
2017 Gas Utility Financial Plan includes projections of the utility’s costs and revenues for
FY 2017 through FY 2026. Costs have risen over the past several years and revenues
have not kept pace. An 8% gas rate increase on July 1, 2016 is proposed. See Staff
Report #6858 for additional information.
FY 2017 Refuse Rate Increase (Attachment G): Rates are proposed to increase by 9% for
residential users (Attachment H), by 5% for commercial garbage and demolition, and the
commercial compost rate is proposed to be decreased by 7% (Attachment I).
Additionally, it is recommended that rate schedules R-2 and R-3 (Commercial Refuse
Rates) be consolidated into a new Utility Rate Schedule designated R-C (Commercial
Refuse Rates) (Attachment I). See Staff Report #6723 for additional information.
FY 2017 Storm Water and Surface Water Drainage Rate Increase (Attachment J): Rates
are adjusted annually based on the Consumer Price Index (CPI). The Storm Water and
Surface Drainage Rate will increase 3.2% to reflect the annual CPI change. See Staff
Report #6657 for more information.
FY 2017 Wastewater Financial Plan (Attachment K) and Wastewater Rate Increase
(Attachment L): The FY 2017 Wastewater Collection Utility Financial Plan includes
projections of the utility’s costs and revenues through FY 2026. Expenses have been
higher than revenues for several years, and treatment costs are increasing. A 9%
wastewater collection rate increase in FY 2017 is proposed. See Staff Report #6690 for
additional information.
FY 2017 Water Financial Plan (Attachment M) and Water Rate Increase (Attachment N):
The FY 2017 Water Utility Financial Plan includes projections of the utility’s costs and
revenues for FY 2017 through FY 2026. Costs are projected to rise substantially for the
next several years due primarily to increasing water supply costs. Staff recommends a
6% water rate increase effective on July 1, 2016. See Staff Report #6689 for more
information.
City of Palo Alto Page 16
A separate Staff Report detailing the establishment of a Net Energy Metering Successor Rate,
the establishment of the Net Energy Metering Transition Policy, and amending Rule and
Regulation 2 (Definitions and Abbreviations) and 29 (Net Energy Metering and Interconnection)
is anticipated to be brought forward for City Council consideration on June 27, 2016.
COMPENSATION PLANS
In addition to the approval of the Table of Organization, the changes in the City Manager’s
Fiscal Year 2017 Budget result in amendments to three of the City’s labor group’s compensation
plans. These are changes to classification compensations or changes to them add or amend
current job classifications for these labor groups. Below is a summary of the recommended
changes:
Utilities Management Professional Association of Palo Alto (UMPAPA) (Attachment O, Exhibit
1):
Add Manager, Utilities Strategic Business classification
Delete Senior Management Analyst-U classification
Title change Manager, Utilities Marketing Services to Manager, Utilities Program
Services
Service Employees International Union (SEIU) 2015-2018 MOA (Attachment O, Exhibit 2):
Add Electric Equipment Technician classification
Add Heavy Equipment Operator/Installer Repairer classification
Add Plant Mechanic classification
Add Substation Electrician - Apprentice classification
Update Facilities Technician classification Salary Rates
Service Employees International Union (SEIU) 2013-2015 MOA (Attachment O, Exhibit 3):
Title change Facilities Mechanic to Facilities Technician to retroactively align the
reclassification in the appropriate salary schedule
City of Palo Alto Page 17
International Association of Fire Fighters (IAFF) (Attachment O, Exhibit 4):
Add Fire Fighter EMT, Hazardous Materials, Paramedic classification
Add Fire Apparatus Operator EMT, Hazardous Materials, Paramedic classification
Delete Fire Apparatus Operator classification
Delete Fire Captain classification
Delete 40-Hour Training Captain classification
REFERRAL ITEMS FOR FULL COUNCIL AT THE REQUEST OF THE FINANCE COMMITTEE
The Finance Committee approved a motion on May 23, 2016 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.
Review sworn versus non-sworn staffing for cost savings/enhanced services/ increased
revenues.
Identify options for increasing Human Services Resource Allocation Process (HSRAP)
funding in fiscal year 2018. Potentially increase to the $667,000 level which reflects a
2.5% cost of living increase annually from fiscal year 2002 levels.
Capture costs associated with parking and traffic initiatives attaining cost recovery
between revenues and expense.
Recommended to the City Council that a referral be made to the Policy and Services
Committee to explore a low income fee program, specifically with regards to
Community Services.
Reach a sustainable budget with staffing cost escalators such as salaries and benefits.
RESOURCE IMPACT
This report summarizes and seeks the City Council approval of the FY 2017 Operating and
Capital budgets and the supporting fee schedules, rate schedules, and salary schedules in order
to support the projections and appropriation included. The approval of the City Manager’s FY
2017 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 2017 fiscal year.
ENVIRONMENTAL REVIEW
Adoption of a budget is not a project for purposes of the California Environmental Quality Act.
Attachments:
Attachment A: FY 2017 Budget Adoption Ordinance (DOCX)
Attachment A, Exhibit 1: FY 2017 City Manager's Proposed Budget & Muni Fee
(Previously Distributed) (PDF)
City of Palo Alto Page 18
Attachment A, Exhibit 2: Recommended Amendments to the City Manager's FY 2017
Proposed Budget (PDF)
Attachment A, Exhibit 3: Municipal Fee Schedule Amendments for FY 2017 (PDF)
Attachment B: Dark Fiber Resolution and Schedule (PDF)
Attachment C: Electric Financial Plan Resolution and Plan (PDF)
Attachment D: Electric Rates Resolution and Schedule (PDF)
Attachment E: Gas Utility Financial Plan and Resolution (PDF)
Attachment F: Gas Rates Resolution and Schedule (PDF)
Attachment G: Refuse Resolution (PDF)
Attachment H: Refuse Residential Rates (PDF)
Attachment I: Refuse Commercial (PDF)
Attachment J: Storm Drain Resolution and Rates Schedule (PDF)
Attachment K: Wastewater Collection Resolution and Financial Plan (PDF)
Attachment L: Wastewater Resolution and Rates Schedule (PDF)
Attachment M: Water Financial Plan Resolution and Plan (PDF)
Attachment N: Water Resolution and Rates Schedule (PDF)
Attachment O: Salary Schedule Resolution (PDF)
Attachment P: Budget Wrap-up Report (CMR #7018) (PDF)
Attachment Q: Budget Hearings At Places Memoranda (PDF)
Attachment R: Budget Hearings Various Presentations to Finance Committee (PDF)
Attachment S: FY 2017 Budget Hearing Transcripts (PDF)
ATTACHMENT A
1
ORDINANCE NO. XXXX
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING THE
BUDGET FOR FISCAL YEAR 20167
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
20162017; and
B. Pursuant to the provisions of Section 12 of Article III of the Charter, the Council did, on
June 8 and 1513, 20152016, 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 8 and 1513,
20152016, 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 20162017:
(a) The budget document (Exhibit “1”) containing the proposed operating and
capital budgets submitted on April 2725, 20152016, by the City Manager for
Fiscal Year 20162017, entitled “City of Palo Alto - City Manager’s Fiscal Year 2016
2017 Proposed Budget” covering General Government Funds, Enterprise 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 2016 2017 Proposed Budget,
attached hereto as Exhibit “2,” and made a part hereof; and
ATTACHMENT A
2
(c) Changes and revised pages in the Table of Organization, attached hereto as
Exhibit “3as displayed on pages 481 through 497 of the Proposed Operating
Budget in “Exhibit 1,” and made a part hereof; and
(d) Fee changes of the Municipal Fee Schedule attached hereto as Exhibit “43”; 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 2015 2016 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 2015 2016 shall be carried forward and added to the fund or department
appropriations for Fiscal Year 20162017.
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 2015 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 20162017.
SECTION 9. The Council of the City of Palo Alto adopts the changes to the Municipal Fee
Schedule as set forth in Exhibit “43”. 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.
Formatted: Highlight
Formatted: Highlight
Comment [NK1]: We don’t have an
attachment
ATTACHMENT A
3
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
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.
ATTACHMENT A
4
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 2017 City Manager’s
Proposed Operating & Capital Budget
These documents were originally distributed in Council Packet of
April 25, 2016. Printed copies are available upon request for $27
per book.
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 5, 2016. The City Manager’s Staff Report
can be viewed on the City’s website:
http://www.cityofpaloalto.org/civicax/filebank/documents/52312
In addition, a replacement page for that staff report was issued on
May 5, 2016. That replacement page can be viewed on the City’s
website:
http://www.cityofpaloalto.org/civicax/filebank/documents/52326
CMR #6932: ATTACHMENT A, EXHIBIT 1
Department Category Adjustment Category Adjustment
GENERAL FUND
Planning and
Community
Environment
Department
California Avenue Retail Feasibility Study
This action eliminates funding associated with the
California Avenue Retail Feasibility Study included in the
City Manager's Fiscal Year 2017 Proposed Operating
Budget. The $75,000 in funding that was included will
instead be used to offset costs associated with the
development of two new Residential Parking Permit
programs for Evergreen Park and Southgate.
Contract
Services
(75,000)$
Public Works
Department
Tree Trimming Contract
This action provides additional funding to the Public
Works Department associated with the Tree Trimming
Contract to improve the cycle time for tree trimming
from 15 years to 10 years, as recommended by the
Finance Committee. This additional funding will enable
the number of trees pruned proactively on an annual
basis to increase from 1,978 per year in the 15 year cycle
to 3,415 per year in the 10 year cycle.
Contract
Services
170,000$
Non-
Departmental
Budget
FY 2016 Transportation Contingency
This action recognizes anticipated planned savings in the
FY 2016 Transportation Contingency of $70,000 and
increases the June 30, 2016 estimated Budget
Stabilization Reserve that will be carried forward to FY
2017 by $70,000 as a source of funds. This action will
partially offset funding for the establishment of two
RPPs in Evergreen Park and Southgate. The City Council
directed staff to create these new RPPs on May 9, 2016.
Beginning
Fund Balance:
Budget
Stabilization
Reserve
70,000$
Non-
Departmental
Budget
FY 2017 Planning and Transportation Contingency
This action establishes a $500,000 contingency for
Transportation and Planning projects that may arise
over the course of Fiscal Year 2017. Potential uses
include urban design support for professional staff and
for the development of design guidelines in Eichler
neighborhoods, Middlefield Road traffic analysis and
safety enhancements, and Shuttle and RPP expenditures.
Any use of the Contingency funding would require City
Council approval.
Contingency 500,000$
Non-
Departmental
Budget
Position Reduction/Elimination (2.0 FTE positions)
This action reduces the Non-Departmental Budget by
the equivalent of approximately 2.0 FTE positions. As
part of the Finance Committee recommended balancing
revisions approved on May 23, 2016, a request for 2.0
position reductions was requested. The City Manager is
currently evaluating staffing resources and priorities
throughout the city and will bring forward a
recommendation at a later time.
Salaries &
Benefits
(374,000)$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
CMR #6932: ATTACHMENT A, EXHIBIT 2
Department Category Adjustment Category Adjustment
GENERAL FUND
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Non-
Departmental
Budget
Transfer to the Residential Parking Permit Fund:
This action establishes a transfer of $230,000 to the
Residential Parking Permit fund to provide funding for
two new RPPs in FY 2017 in Evergreen Park and
Southgate, as directed by the City Council on May 9th,
2016. This action is partially offset by the elimination of
the California Avenue Retail Feasibility Study ($75,000)
and by the use of the remaining FY 2016 Transportation
Contingency ($70,000).
Transfers Out 230,000$
Non-
Departmental
Budget
Transfer to the General Capital Fund:
This action reduces the transfer to the General Capital
Fund by an additional $4.3 million for a total reduction
of $5.7 million in FY 2017. This additional reduction is
recommended to be a one-time reduction as a result of
the deferral of construction activity in projects in the
Capital Fund that was programmed in the City Manager's
Fiscal Year 2017 Proposed Capital Budget. The total
transfer in FY 2017 would be $17.6 million, including the
transfer of Transient Occupancy Tax revenues of and
estimated $8.0 million. Additional details can be found
in the General Capital Improvement Fund section of this
attachment.
Transfers (4,327,000)$
Non-
Departmental
Budget
Adjustment to Ending Fund Balance/Budget
Stabilization Reserve:
This action increases the Budget Stabilization Reserve
(BSR)to account for actions recommended in this report.
This increase in the BSR would bring the FY 2017
estimated level to $39.5 million reflecting a
recommended draw on the BSR of $998,000 in the FY
2017 Proposed Budget. The estimated BSR level of
$39.5 million in FY 2017 reflects approximately 20.4% of
the FY 2017 General Fund expenditures and is $3.6
million above the target level of 18.5% and slightly
exceeds ($688,000) the range of a 15% minimum to 20%
maximum as approved by the City Council.
Fund Balance 3,946,000$
GENERAL FUND SUBTOTAL 70,000$ 70,000$
Department Category Adjustment Category Adjustment
GENERAL CAPITAL IMPROVEMENT FUND
Capital Art in Public Places (AC-86017)
This action reduces the Art in Public Places project to
correct an error in the calculation of this project that
was identified subsequent to the printing of the FY 2017-
2021 Proposed Capital Improvement Plan.
Capital:
Design/
Construction
(156,327)$
Capital Municipal Services Center A, B, & C Roof Replacement
(PF-17000)
This action recommends deferring the Municipal
Services Center (MSC) A, B, & C Roof Replacement
project by one year to fiscal year 2018. Given staffing
resources and the current status of the work being
completed for this project, it is anticipated that a
deferral is feasible and will not present undue risk to the
MSC facility. A corresponding reduction in transfers
from various funds is recommended that will partially
offset this FY 2017 budget adjustment. These transfers
were budgeted to recovered these funds fair share of
the replacement costs as a number of workgroups are
housed at the MSC.
Transfers In (1,083,000)$ Capital:
Construction
(1,942,328)$
Capital Ramos Park Improvements (PG-14000)
This action recommends deferring funding for the
Ramos Park Improvements by an additional year to
Fiscal Year 2018. In Fiscal Year 2016, funding was
allocated to for the replacement of existing park
playground, benches, and drinking fountain, as well as
resurfacing the basketball court playing surface. This
project was recommended to be extended to FY 2017
due to staffing constraints and as a result of this action,
is recommended to be deferred one additional year to
Fiscal Year 2018. The Community Services Department
is currently undergoing a Parks Master Plan as well and
it is anticipated that upon completion of that a review of
parks capital investments will be evaluated in the
context of any finding in that plan and recommended
adjustments may be brought forward to align with the
Master Plan.
Capital:
Design/
Construction
(199,019)$
Capital Rinconada Park Improvements (PE-08001)
This action recommends deferring funding for the
Rinconada Park Improvements to Fiscal Year 2018. This
project timing was adjusted to Fiscal Year 2017 to align
with the completion of the Rinconada Parks Master
Plan, however, due to current staffing capacity levels
and the larger Parks Master Plan that the Community
Services Department is currently undergoing, a deferral
of this project is recommended.
Capital:
Design/
Construction
(3,474,224)$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Department Category Adjustment Category Adjustment
GENERAL CAPITAL IMPROVEMENT FUND
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Capital Salaries and Benefits - Capital Improvement Fund CIP
Projects (AS-10000)
This action recommends increasing the Salaries and
Benefits - Capital Improvement Fund CIP Projects budget
in fiscal year 2017 by $206,000 (from $1.5 million to $1.7
million). This project provides funding for the estimated
salaries and benefit costs of City Staff assigned to
manage the General Fund Capital Improvement
program. With the recommended deferral of some
projects, the associated salary and benefit costs
previously programmed in those projects are
recommended to be allocated to this project. During
the course of the year, these resources will be
reallocated and charged appropriately to other CIP
activities.
Capital: Salaries
& Benefits
205,571$
Capital Transfer from the General Fund to the General Capital
Improvement Fund
This action recommends a one-time reduction in the
transfer of funds from the General Fund to the General
Capital Fund of $4.3 million brining the FY 2017 transfer
level to $17.6 million compared to the recommended
$21.9 million that was included in the FY2017 City
Manager's Proposed Capital Budget. This action is
recommended to be offset by the recommended
deferral of three capital improvement projects formerly
budgeted to be addressed during FY 2017, however,
upon further review sufficient resources do not exist to
complete these projects in this timeframe. This one-
time reduction would require a increase in the General
Fund transfer of a comparable or increased level to the
FY2018 Proposed Capital Improvement Budget above
what is included in the FY 2017-2026 Long Range
Financial Forecast in order to ensure sufficient funding is
available to complete these projects.
Transfers In (4,327,000)$
Capital Reappropriation: Americans With Disabilities Act
Compliance (PF-93009)
Capital Impv.
Program
23,884$
Capital Reappropriation: Art In Public Spaces (AC-86017)Capital Impv.
Program
110,910$
Capital Reappropriation: Baylands Boardwalk Improvements
(PE-14018)
Capital Impv.
Program
22,191$
Capital Reappropriation: Baylands Nature Interpretive Center
Facility Improvements (PE-15029)
Capital Impv.
Program
45,004$
Capital Reappropriation: Bicycle and Pedestrian Plan-
Implementation Project (PL-04010)
Capital Impv.
Program
(1,117,226)$
Capital Reappropriation: Buckeye Creek Hydrology Study (PG-
15000)
Capital Impv.
Program
149,180$
Capital Reappropriation: Byxbee Park Trails (PE-13020)Capital Impv.
Program
4,183$
Department Category Adjustment Category Adjustment
GENERAL CAPITAL IMPROVEMENT FUND
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Capital Reappropriation: California Avenue Parking District
Parking Improvements (PF-14004)
Capital Impv.
Program
(2,800)$
Capital Reappropriation: California Avenue- Transit Hub
Corridor Project (PL-11002)
Capital Impv.
Program
199,705$
Capital Reappropriation: City Facility Parking Lot Maintenance
(PE-09003 )
Capital Impv.
Program
(44,194)$
Capital Reappropriation: City Hall First Floor Renovations (PE-
12017)
Capital Impv.
Program
161,995$
Capital Reappropriation: Civic Center Waterproofing Study and
Repairs (PE-15020)
Capital Impv.
Program
154,048$
Capital Reappropriation: Curb and Gutter Repairs (PO-12001)Capital Impv.
Program
(38,381)$
Capital Reappropriation: Dinah Summerhill Pedestrian/Bicycle
Path (PL-11001)
Capital Impv.
Program
113,641$
Capital Reappropriation: El Camino Real & Churchill
Intersection Improvements-Design (PL-14000)
Capital Impv.
Program
21,555$
Capital Reappropriation: Embarcadero Road Corridor
Improvements (PL-15001)
Capital Impv.
Program
28,129$
Capital Reappropriation: Facility Interior Finishes Replacement
(PF-02022)
Capital Impv.
Program
(2,120)$
Capital Reappropriation: Fire Station 1 Improvements (PF-
14002)
Capital Impv.
Program
(11,870)$
Capital Reappropriation: Fire Station 3 Replacement (PE-
15003)
Capital Impv.
Program
59,232$
Capital Reappropriation: Library & Community Center -
Temporary Facilities (PE-09010)
Capital Impv.
Program
117,155$
Capital Reappropriation: Lucie Stern Buildings Mechanical and
Electrical Upgrades (PE-14015)
Capital Impv.
Program
1,054,723$
Capital Reappropriation: Midtown Connector (PL-14001)Capital Impv.
Program
91,234$
Capital Reappropriation: Mitchell Park Library and Community
Center (PE-09006)
Capital Impv.
Program
22,369$
Capital Reappropriation: New Downtown Parking Garage (PE-
15007)
Capital Impv.
Program
100,000$
Capital Reappropriation: New Public Safety Building (PE-
15001)
Capital Impv.
Program
(369,711)$
Capital Reappropriation: Off-Road Pathway Resurfacing And
Repair (OS-09001)
Capital Impv.
Program
20,459$
Capital Reappropriation: Open Space Lakes And Pond
Maintenance (OS-00002)
Capital Impv.
Program
20,409$
Capital Reappropriation: Open Space Trails and Amenities (OS-
00001)
Capital Impv.
Program
(72,759)$
Capital Reappropriation: Park and Open Space Emergency
Repairs (PG-09002)
Capital Impv.
Program
(28,466)$
Capital Reappropriation: Park Maintenance Shop Remodel (PG-
09003)
Capital Impv.
Program
6,000$
Capital Reappropriation: Parking Guidance Systems, Access
Controls, and Revenue Collection Equipment (PL-15002)
Capital Impv.
Program
129,724$
Department Category Adjustment Category Adjustment
GENERAL CAPITAL IMPROVEMENT FUND
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Capital Reappropriation: Parking Wayfinding (PL-15004)Capital Impv.
Program
25,524$
Capital Reappropriation: Rinconada Library New Construction
and Improvements (PE-11000)
Capital Impv.
Program
(11,996)$
Capital Reappropriation: Roofing Replacement (PF-00006)Capital Impv.
Program
(28,178)$
Capital Reappropriation: Roth Building Maintenance (PF-
07011)
Capital Impv.
Program
(2,313)$
Capital Reappropriation: Safe Routes To School (PL-00026)Capital Impv.
Program
250,639$
Capital Reappropriation: Sarah Wallis Park Improvements (PG-
12004)
Capital Impv.
Program
48,002$
Capital Reappropriation: Sign Reflectivity Upgrade (PO-11000)Capital Impv.
Program
(97,525)$
Capital Reappropriation: Street Lights Improvements (PO-
05054)
Capital Impv.
Program
44,953$
Capital Reappropriation: Street Maintenance (PE-86070)Capital Impv.
Program
(166,228)$
Capital Reappropriation: Tennis and Basketball Court
Resurfacing (PG-06001)
Capital Impv.
Program
(11,100)$
Capital Reappropriation: Thermoplastic Lane Marking and
Striping (PO-11001)
Capital Impv.
Program
29,376$
Capital Reappropriation: Traffic Signal and Intelligent
Transportation System Upgrades (PL-05030)
Capital Impv.
Program
567,968$
Capital Reappropriation: Transportation and Parking
Improvements (PL-12000)
Capital Impv.
Program
131,523$
Capital Reappropriation: Ventura Buildings Improvements (PE-
15011)
Capital Impv.
Program
89,998$
Capital Adjustment to Infrastructure Reserve/Beginning Fund
Balance:
This action increases the FY 2017 Beginning Fund
Balance due to account for the estimated savings in FY
2016 and reappropriation of that savings from FY 2016
to FY2017. An increase in the Infrastructure Reserve
offsets actions recommended in this report.
Beginning
Fund Balance
1,838,846$ Reserve:
Infrastructure
Reserve
156,327$
GENERAL CAPITAL IMPROVEMENT FUND SUBTOTAL (3,571,154)$ (3,571,154)$
Department Category Adjustment Category Adjustment
INTERNAL SERVICE FUNDS
TECHNOLOGY FUND
Capital Reappropriation: Public Safety Computer-Aided
Dispatch Replacement (TE-09000)
Capital Impv.
Program
(75,380)$
Capital Reappropriation: Development Center Blueprint
Technology Enhancements (TE-12001)
Capital Impv.
Program
(102,921)$
Capital Reappropriation: Interactive Voice Response (TE-
13001)
Capital Impv.
Program
106,181$
Capital Reappropriation: Library Computer System Software
(TE-11001 )
Capital Impv.
Program
200,868$
Capital Reappropriation: Library RFID Implementation (TE-
06001)
Capital Impv.
Program
314,589$
Capital Reappropriation: Mobile In-Car Video System
Replacement (TE-11002)
Capital Impv.
Program
30,902$
Capital Reappropriation: Radio Infrastructure Replacement (TE-
05000)
Capital Impv.
Program
576,841$
Capital Reappropriation: Telephone System Replacement (TE-
00010)
Capital Impv.
Program
143,194$
Capital Reappropriation: Utilities Customer Bill System
Improvements (TE-10001)
Capital Impv.
Program
175,656$
Capital Reappropriation: Virtual Library Branch (TE-14002)Capital Impv.
Program
170,425$
Capital Adjustment to Beginning Fund Balance:
This action increases the FY 2017 Beginning Fund
Balance to account for the estimated savings in FY 2016
and reappropriation of that savings from FY 2016 to
FY2017.
Beginning
Fund Balance
1,540,355$
TECHNOLOGY FUND SUBTOTAL 1,540,355$ 1,540,355$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Department Category Adjustment Category Adjustment
INTERNAL SERVICE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
VEHICLE REPLACEMENT & MAINTENANCE FUND
Capital Transfer to General Capital Improvement Fund
This action reduces the transfer from the Vehicle
Replacement and Maintenance Fund to the General
Capital Improvement Fund budgeted for the Municipal
Services Center A, B, & C Roof Replacement Project (PF-
17000) to adjust for the recommended deferral of this
project. A corresponding increase in the Retained
Earnings Reserve is recommended to offset this action.
Transfer Out (380,000)$
Capital Reappropriation: Scheduled Vehicle and Equipment
Replacement - Fiscal Year 2015 (VR-15000)
Capital Impv.
Program
(72,606)$
Capital Reappropriation: Scheduled Vehicle and Equipment
Replacement - Fiscal Year 2016 (VR-16000)
Capital Impv.
Program
127,859$
Capital Adjustment to Beginning Fund Balance/Retained
Earnings Reserve:
This action increases the FY 2017 Beginning Fund
Balance to account for the estimated savings in FY 2016
and reappropriation of that savings from FY 2016 to
FY2017 as well as decreased expenses in FY 2017 offset
by increases to the Retained Earnings Reserve.
Beginning
Fund Balance
55,253$ Reserve:
Retained
Earnings
380,000$
VEHICLE REPLACEMENT & MAINTENANCE FUND
SUBTOTAL 55,253$ 55,253$
Department Category Adjustment Category Adjustment
SPECIAL REVENUE FUNDS
RESIDENTIAL PARKING PERMIT FUND
Operations and Maintenance Costs for Evergreen and
Southgate Residential Preferential Parking (RPP)
Programs/Transfer from the General Fund
This action establishes a transfer from the General Fund
to the Residential Parking Permit fund and appropriates
the funds to provide operations and maintenance costs
associated with the creation of two new RPPs. On May
9th, 2016 the City Council directed staff to create RPPs
for each of these districts.
Transfers in 230,000$ General
Expense
230,000$
RESIDENTIAL PARKING PERMIT FUND SUBTOTAL 230,000$ 230,000$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Department Category Adjustment Category Adjustment
ENTERPRISE FUNDS
ELECTRIC FUND
Capital Transfer to General Capital Improvement Fund
This action reduces the transfer from the Electric Fund
to the General Capital Improvement Fund budgeted for
the Municipal Services Center A, B, & C Roof
Replacement Project (PF-17000) to adjust for the
recommended deferral of this project. Corresponding
increases to the Supply Reserve and the Distribution
Reserve are recommended to offset this action.
Transfer Out (308,204)$
Capital Facility Relocation for Caltrain Modernization Project
(EL-17007):
This action established the Facility Relocation for
Caltrain Modernization Project in the amount of
$150,000 in FY 2017. This project provides for the
relocation of overhead Utility Electric and Fiber Optic
lines to provide adequate clearance from new electric
lines being installed by the Peninsula Corridor Joint
Powers Board (Caltrain) to convert their diesel powered
commuter trains to electric power.
Capital Impv.
Program
150,000$
Capital Reappropriation: SCADA System Upgrades (EL-02010)Capital Impv.
Program
30,000$
Capital Reappropriation: Electric Utility Geographic
Information System (EL-02011)
Capital Impv.
Program
200,000$
Capital Reappropriation: Rebuild Underground District 24 (EL-
10006)
Capital Impv.
Program
1,075,560$
Capital Reappropriation: Street Light System Conversion
Project (EL-10009)
Capital Impv.
Program
30,000$
Capital Reappropriation: Rebuild Underground District 15 (EL-
11003)
Capital Impv.
Program
144,181$
Capital Reappropriation: Rebuild Underground District 19 (EL-
11008 )
Capital Impv.
Program
12,262$
Capital Reappropriation: Underground District 47-Middlefield,
Homer, Webster, Addison (EL-11010)
Capital Impv.
Program
744,038$
Capital Reappropriation: Smart Grid Technology Installation
(EL-11014)
Capital Impv.
Program
109,096$
Capital Reappropriation: Underground District 46 -
Charleston/El Camino Real (EL-12001)
Capital Impv.
Program
28,651$
Capital Reappropriation: Sand Hill / Quarry 12kV Tie (EL-
13006)
Capital Impv.
Program
157,259$
Capital Reappropriation: Underground Distribution System
Security (EL-13007)
Capital Impv.
Program
50,000$
Capital Reappropriation: Upgrade Electric Estimating System
(EL-13008)
Capital Impv.
Program
25,000$
Capital Reappropriation: Maybell 1&2 4/12kV Conversion (EL-
14004)
Capital Impv.
Program
185,372$
Capital Reappropriation: Reconfigure Quarry Feeders (EL-
14005)
Capital Impv.
Program
11,606$
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Department Category Adjustment Category Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Capital Reappropriation: Colorado/Hopkins System
Improvement (EL-15000)
Capital Impv.
Program
50,000$
Capital Reappropriation: Electric Substation Battery
Replacement (EL-15001)
Capital Impv.
Program
142,117$
Capital Reappropriation: Rebuild Underground District 26 (EL-
16000)
Capital Impv.
Program
(50,000)$
Capital Reappropriation: Underground System Rebuild (EL-
16001)
Capital Impv.
Program
(180,000)$
Capital Reappropriation: Capacitor Bank Installation (EL-
16002)
Capital Impv.
Program
75,000$
Capital Reappropriation: Electric Customer Connection (EL-
89028)
Capital Impv.
Program
534,000$
Capital Reappropriation: Communications System
Improvements (EL-89031)
Capital Impv.
Program
187,759$
Capital Reappropriation: Substation Protection Improvements
(EL-89038)
Capital Impv.
Program
281,812$
Capital Reappropriation: Substation Facility Improvements (EL-
89044)
Capital Impv.
Program
204,243$
Capital Reappropriation: Electric System Improvements (EL-
98003)
Capital Impv.
Program
300,000$
Capital Adjustment to Supply Reserve:
This action increases the FY 2017 Supply Reserve to
account for the estimated savings as a result of
decreased expenses.
Reserve: Supply
Reserve
22,394$
Capital Adjustment to Beginning Fund Balance/Distribution
Reserve:
This action increases the FY 2017 Beginning Fund
Balance to account for the estimated savings in FY 2016
and reappropriation of that savings from FY 2016 to FY
2017 as well as decreased expenses in FY 2017 offset by
increases to the Distribution Reserve.
Beginning
Fund Balance
4,347,956$ Reserve:
Distribution
Reserve
135,810$
ELECTRIC FUND SUBTOTAL 4,347,956$ 4,347,956$
Department Category Adjustment Category Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
FIBER OPTIC FUND
Capital Transfer to General Capital Improvement Fund
This action reduces the transfer from the Fiber Optic
Fund to the General Capital Improvement Fund
budgeted for the Municipal Services Center A, B, & C
Roof Replacement Project (PF-17000) to adjust for the
recommended deferral of this project. A corresponding
increase in the Distribution Reserve is recommended to
offset this action.
Transfer Out (18,671)$
Capital Reappropriation: Fiber Optics Network System
Improvements (FO-10001)
Capital Impv.
Program
158,000$
Capital Adjustment to Beginning Fund Balance/Distribution
Reserve:
This action increases the FY 2017 Beginning Fund
Balance to account for the estimated savings in FY 2016
and reappropriation of that savings from FY 2016 to FY
2017 as well as decreased expenses in FY 2017 offset by
increases to the Distribution Reserve.
Beginning
Fund Balance
158,000$ Reserve:
Distribution
Reserve
18,671$
FIBER OPTIC FUND SUBTOTAL 158,000$ 158,000$
GAS FUND
Capital Transfer to General Capital Improvement Fund
This action reduces the transfer from the Gas Fund to
the General Capital Improvement Fund budgeted for the
Municipal Services Center A, B, & C Roof Replacement
Project (PF-17000) to adjust for the recommended
deferral of this project. Corresponding increases to the
Supply Reserve and the Distribution Reserve are
recommended to offset this action.
Transfer Out (144,273)$
Capital Reappropriation: System Extensions - Unreimbursed
(GS-03009)
Capital Impv.
Program
128,690$
Capital Reappropriation: Gas Main Replacement - Project 21
(GS-11000)
Capital Impv.
Program
100,000$
Capital Reappropriation: Gas Distribution System
Improvements (GS-11002)
Capital Impv.
Program
143,714$
Capital Reappropriation: Gas Main Replacement - Project 22
(GS-12001)
Capital Impv.
Program
3,568,560$
Capital Reappropriation: Gas Main Replacement - Project 23
(GS-13001)
Capital Impv.
Program
37,500$
Capital Reappropriation: Gas Equipment and Tools (GS-13002)Capital Impv.
Program
70,106$
Capital Reappropriation: Gas Distribution System Model (GS-
14004)
Capital Impv.
Program
106,791$
Department Category Adjustment Category Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Capital Reappropriation: Security at City Gas Receiving
Stations (GS-15001)
Capital Impv.
Program
150,000$
Capital Reappropriation: Gas System, Customer Connections
(GS-80017)
Capital Impv.
Program
194,976$
Capital Reappropriation: Gas Meters and Regulators (GS-
80019)
Capital Impv.
Program
304,927$
Capital Adjustment to Supply Reserve:
This action increases the FY 2017 Supply Reserve to
account for the estimated savings as a result of
decreased expenses.
Reserve: Supply
Reserve
4,517$
Capital Adjustment to Beginning Fund Balance/Distribution
Reserve:
This action increases the FY 2017 Beginning Fund
Balance to account for the estimated savings in FY 2016
and reappropriation of that savings from FY 2016 to FY
2017 as well as decreased expenses in FY 2017 offset by
increases to the Distribution Reserve.
Beginning
Fund Balance
4,805,264$ Reserve:
Distribution
Reserve
139,756$
GAS FUND SUBTOTAL 4,805,264$ 4,805,264$
REFUSE FUND
Capital Transfer to General Capital Improvement Fund
This action reduces the transfer from the Refuse Fund to
the General Capital Improvement Fund budgeted for the
Municipal Services Center A, B, & C Roof Replacmeent
Project (PF-17000) to adjust for the recommended
deferral of this project. A corresponding increase in the
Distribution Reserve is recommended to offset this
action.
Transfer Out (19,000)$
Capital Reappropriation: Household Hazardous Waste Station
Improvements (RF-16001)
Capital Impv.
Program
(92,176)$
Capital Adjustment to Beginning Fund Balance/Distribution
Reserve:
This action increases the FY 2017 Beginning Fund
Balance to account for the estimated savings in FY 2016
and reappropriation of that savings from FY 2016 to FY
2017 as well as decreased expenses in FY 2017 offset by
increases to the Distribution Reserve.
Beginning
Fund Balance
(92,176)$ Reserve:
Distribution
Reserve
19,000$
REFUSE FUND SUBTOTAL (92,176)$ (92,176)$
Department Category Adjustment Category Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
STORM DRAINAGE FUND
Capital Reappropriation: Channing Avenue/Lincoln Avenue
Storm Drain Improvements (SD-11101)
Capital Impv.
Program
25,000$
Capital Reappropriation: Matadero Creek Storm Water Pump
Station and Trunk Line Improvements (SD-13003)
Capital Impv.
Program
21,462$
Capital Reappropriation: Storm Drain System Replacement
And Rehabilitation (SD-06101)
Capital Impv.
Program
484,700$
Capital Adjustment to Beginning Fund Balance:
This action increases the FY 2017 Beginning Fund
Balance to account for the estimated savings in FY 2016
and reappropriation of that savings from FY 2016 to FY
2017.
Beginning
Fund Balance
531,162$
STORM DRAINAGE FUND SUBTOTAL 531,162$ 531,162$
WASTEWATER COLLECTION FUND
Capital Transfer to General Capital Improvement Fund
This action reduces the transfer from the Wastewater
Collection Fund to the General Capital Improvement
Fund budgeted for the Municipal Services Center A, B, &
C Roof Replacement Project (PF-17000) to adjust for the
recommended deferral of this project. A corresponding
increase in the Distribution Reserve is recommended to
offset this action.
Transfer Out (79,857)$
Capital Reappropriation: Wastewater Collection System
Rehabilitation/Augmentation Project 23 (WC-10002)
Capital Impv.
Program
100,000$
Capital Reappropriation: Wastewater Collection System
Rehabilitation/Augmentation Project 24 (WC-11000)
Capital Impv.
Program
7,066$
Capital Reappropriation: Wastewater Collection System
Rehabilitation/Augmentation Project 25 (WC-12001)
Capital Impv.
Program
369,419$
Capital Reappropriation: Wastewater Collection System
Rehabilitation/Augmentation Project 26 (WC-13001)
Capital Impv.
Program
130,700$
Capital Reappropriation: Wastewater Collection System
Rehabilitation/Augmentation Project 27 (WC-14001)
Capital Impv.
Program
498,169$
Capital Reappropriation: Wastewater Collection System
Rehabilitation/Augmentation Project 28 (WC-15001)
Capital Impv.
Program
330,000$
Capital Reappropriation: Wastewater System Improvements
(WC-15002)
Capital Impv.
Program
53,567$
Capital Reappropriation: Sewer System, Customer Connections
(WC-80020)
Capital Impv.
Program
207,439$
Capital Reappropriation: Sewer Lateral/Manhole
Rehab/Replacement (WC-99013)
Capital Impv.
Program
145,189$
Department Category Adjustment Category Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Capital Adjustment to Beginning Fund Balance/Distribution
Reserve:
This action increases the FY 2017 Beginning Fund
Balance to account for the estimated savings in FY 2016
and reappropriation of that savings from FY 2016 to FY
2017 as well as decreased expenses in FY 2017 offset by
increases to the Distribution Reserve.
Beginning
Fund Balance
1,841,549$ Reserve:
Distribution
Reserve
79,857$
WASTEWATER COLLECTION FUND SUBTOTAL 1,841,549$ 1,841,549$
WASTEWATER TREATMENT FUND
Capital Reappropriation: Facility Condition Assessment and
Retrofit (WQ-04011)
Capital Impv.
Program
(303,544)$
Capital Reappropriation: Plant Master Plan (WQ-10001)Capital Impv.
Program
(333,933)$
Capital Reappropriation: New Dewatering and Loadout Facility
(WQ-14001)
Capital Impv.
Program
(1,867,627)$
Capital Reappropriation: Plant Equipment Replacement (WQ-
80021)
Capital Impv.
Program
(1,263,710)$
Capital Adjustment to Beginning Fund Balance:
This action increases the FY 2017 Beginning Fund
Balance to account for the estimated savings in FY 2016
and reappropriation of that savings from FY 2016 to FY
2017.
Beginning
Fund Balance
(3,768,814)$
WASTEWATER TREATMENT FUND SUBTOTAL (3,768,814)$ (3,768,814)$
WATER FUND
Capital Transfer to General Capital Improvement Fund
This action reduces the transfer from the Water
Collection Fund to the General Capital Improvement
Fund budgeted for the Municipal Services Center A, B, &
C Roof Replacement Project (PF-17000) to adjust for the
recommended deferral of this project. A corresponding
increase in the Distribution Reserve is recommended to
offset this action.
Transfer Out (132,995)$
Capital Reappropriation: Asset Management Mobile
Deployment (WS-13004 )
Capital Impv.
Program
(82,163)$
Capital Reappropriation: Emergency Water Supply Project (WS-
08002)
Capital Impv.
Program
271,208$
Capital Reappropriation: Seismic Water System Upgrades (WS-
09000)
Capital Impv.
Program
1,881,097$
Department Category Adjustment Category Adjustment
ENTERPRISE FUNDS
CITY OF PALO ALTO
RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2017 PROPOSED BUDGET
Revenues Expenses
Capital Reappropriation: Water Distribution System
Improvements (WS-11003)
Capital Impv.
Program
126,582$
Capital Reappropriation: Water General Equipment/Tools (WS-
13002)
Capital Impv.
Program
20,685$
Capital Reappropriation: Water Main Replacement - Project 25
(WS-11000)
Capital Impv.
Program
725,386$
Capital Reappropriation: Water Main Replacement - Project 26
(WS-12001)
Capital Impv.
Program
5,904,489$
Capital Reappropriation: Water Main Replacement - Project 27
(WS-13001)
Capital Impv.
Program
525,565$
Capital Reappropriation: Water Meters (WS-80015)Capital Impv.
Program
252,092$
Capital Reappropriation: Water Recycling Facilities (WS-07001)Capital Impv.
Program
193,358$
Capital Reappropriation: Water Regulation Station
Improvements (WS-07000)
Capital Impv.
Program
135,541$
Capital Reappropriation: Water Reservoir Coating
Improvements (WS-08001)
Capital Impv.
Program
320,682$
Capital Reappropriation: Water System Master Plan (WS-
15004)
Capital Impv.
Program
155,520$
Capital Reappropriation: Water System Supply Improvements
(WS-11004)
Capital Impv.
Program
17,700$
Capital Adjustment to Beginning Fund Balance/Distribution
Reserve:
This action increases the FY 2017 Beginning Fund
Balance to account for the estimated savings in FY 2016
and reappropriation of that savings from FY 2016 to FY
2017 as well as decreased expenses in FY 2017 offset by
increases to the Distribution Reserve.
Beginning
Fund Balance
10,447,742$ Reserve:
Distribution
Reserve
132,995$
WATER FUND SUBTOTAL 10,447,742$ 10,447,742$
Municipal Fee Schedule Amendments for FY 2017 - Changed Fees
Community Services Department
Fee Title Justification
Residents Non-Residents Residents Non-Residents Residents Non-Residents
Art Center - Auditorium $131.00 per hour $197.00 per hour $145.00 per hour $219.00 per hour 10.7%11.2%
Fee increase from $131.00 per hour to $145.00 per hour for Residents and from $197.00
per hour to $219.00 per hour for Non-Residents to align with market value based on new
A/V equipment in the Auditorium.
Art Center - Children's Clay
Studio $37.00 per hour $56.00 per hour $39.00 per hour $59.00 per hour 5.4%5.4%Fee increase from $37.00 per hour to $39.00 per hour for Residents and from $56.00 to
$59.00 per hour for Non-Residents to align with market value.
Art Center - Children's Outdoor
Classroom $85.00 per hour $128.00 per hour $89.00 per hour $133.00 per hour 4.7%3.9%Fee increase from $85.00 per hour to $89.00 per hour for Residents and from $128.00 to
$133.00 per hour for Non-Residents to align with market value.
Art Center - Historic Courtyard $85.00 per hour $128.00 per hour $89.00 per hour $133.00 per hour 4.7%3.9%Fee increase from $85.00 per hour to $89.00 per hour for Residents and from $128.00
per hour to $133.00 per hour for Non-Residents to align with market value.
Art Center - Kitchen/Pre-school $37.00 per hour $56.00 per hour $39.00 per hour $59.00 per hour 5.4%5.4%Fee increase from $37.00 per hour to $39.00 per hour for Residents and from $56.00 per
hour to $59.00 per hour for Non-Residents to align with market value.
Art Center - Lobby $85.00 per hour $128.00 per hour $89.00 per hour $133.00 per hour 4.7%3.9%Fee increase from $85.00 per hour to $89.00 per hour for Residents and from $128.00 to
$133.00 per hour for Non-Residents to align with market value.
Art Center - Meeting Room $85.00 per hour $128.00 per hour $89.00 per hour $133.00 per hour 4.7%3.9%Fee increase from $85.00 per hour to $89.00 per hour for Residents and from $128.00 to
$133.00 per hour for Non-Residents to align with market value.
Art Center - Project LOOK!
Studio $37.00 per hour $56.00 per hour $39.00 per hour $59.00 per hour 5.4%5.4%Fee increase from $37.00 per hour to $39.00 per hour for Residents and from $56.00 to
$59.00 per hour for Non-Residents to align with market value.
Art Center - Sculpture Garden $112.00 per hour $168.00 per hour $117.00 per hour $175.00 per hour 4.5%4.2%Fee increase from $112.00 per hour to $117.00 per hour for Residents and from $168.00
per hour to $175.00 per hour for Non-Residents to align with market value.
Art Center - Studio A $37.00 per hour $56.00 per hour $39.00 per hour $59.00 per hour 5.4%5.4%Fee increase from $37.00 per hour to $39.00 per hour for Residents and from $56.00 to
$59.00 per hour for Non-Residents to align with market value.
Art Center - Studio B $37.00 per hour $56.00 per hour $39.00 per hour $59.00 per hour 5.4%5.4%Fee increase from $37.00 per hour to $39.00 per hour for Residents and from $56.00 to
$59.00 per hour for Non-Residents to align with market value.
Arts Activities - Drop-in Activities $4.00 - $54.00 per
person
$4.00 - $54.00 per
person
$4.00 - $100.00 per
person
$4.00 - $100.00 per
person 85.2%85.2%
Fee range increase from $4.00 - $54.00 per person to $4.00 - $100.00 per person to
expand the range to charge quarterly for ceramic lab fees which used to be paid on a
hourly basis.
Foothills Park - A. Oak Grove
Picnic 1 - 50 People $80.00 per group Not Available $75.00 per group Not Available -6.3%N/A Fee decrease from $80.00 per group to $75.00 per group for Residents to align with
market value.
Foothills Park - B. Oak Grove
Picnic 51 - 100 People $135.00 per group Not Available $149.00 per group Not Available 10.4%N/A Fee increase from $135.00 per group to $149.00 per group for Residents to align with
market value.
Foothills Park - C. Oak Grove
Picnic 101 - 150 People $180.00 per group Not Available $205.00 per group Not Available 13.9%N/A Fee increase from $180.00 per group to $205.00 per group for Residents to align with
market value.
General - Alma Plaza Community
Room $110.00 per hour $165.00 per hour $115.00 per hour $173.00 per hour 4.5%4.8%Fee increase from $110.00 per hour to $115.00 per hour for Residents and from $165.00
to $173.00 per hour for Non-Residents to align with market value.
General - Arastradero Gateway
Educational Facility $83.00 per hour Not Available $87.00 per hour Not Available 4.8%N/A Fee increase from $83.00 per hour to $87.00 per hour for Residents to align with market
value.
General - Baylands Nature
Interpretive Center Meeting
Room
$83.00 per hour $94.00 per hour $87.00 per hour $131.00 per hour 4.8%39.4%Fee increase from $83.00 per hour to $87.00 per hour for Residents and from $94.00 to
$131.00 per hour for Non-Residents to align with market value.
General - Chairs - Metal Folding $1.00 per chair $1.50 per chair $1.50 per chair $2.25 per chair 50.0%46.7%Fee increase from $1.00 per chair to $1.50 per chair for Residents and $1.50 per chair to
$2.25 per chair to align with market value.
2016 Adopted 2017 Proposed % Change
CMR #6932: ATTACHMENT A, EXHIBIT 3
Municipal Fee Schedule Amendments for FY 2017 - Changed Fees
Community Services Department
Fee Title Justification
Residents Non-Residents Residents Non-Residents Residents Non-Residents
General - Lawn Bowling Green's
Kitchen and Meeting Facility $110.00 per hour $165.00 per hour $115.00 per hour $173.00 per hour 4.5%4.8%Fee increase from $110.00 per hour to $115.00 per hour for Residents and from $165.00
to $173.00 per hour for Non-Residents to align with market value.
General - Peers Park, Mitchell
Park Field House $22.00 per hour Not Available $23.00 per hour Not Available 4.5%N/A Fee increase from $22.00 per hour to $23.00 per hour for Residents to align with market
value.
General - Picnic Reservations -
Arbor Group Site $43.00 per group Not Available $45.00 per group Not Available 4.7%N/A Fee increase from $43.00 per hour to $45.00 per hour for Residents to align with market
value.
General - Picnic Reservations -
East Meadow Group Site $65.00 per group Not Available $69.00 per group Not Available 6.2%N/A Fee increase from $65.00 per hour to $69.00 per hour for Residents to align with market
value.
General - Picnic Reservations -
Pine Grove Group Site $119.00 per group Not Available $125.00 per group Not Available 5.0%N/A Fee increase from $119.00 per hour to $125.00 per hour for Residents to align with
market value.
General - Picnic Reservations -
Redwood Group Site $97.00 per group Not Available $101.00 per group Not Available 4.1%N/A Fee increase from $97.00 per hour to $101.00 per hour for Residents to align with market
value.
General - Picnic Reservations -
Sequoia Group Site $54.00 per group Not Available $57.00 per group Not Available 5.6%N/A Fee increase from $54.00 per hour to $57.00 per hour for Residents to align with market
value.
General - Picnic Reservations (1 -
15 people)$15.00 per group $19.00 per group $17.00 per group $21.00 per group 13.3%10.5%Fee increase from $15.00 per hour to $17.00 per hour for Residents and from $19.00 to
$21.00 per hour for Non-Residents to align with market value.
General - Portable Public
Address System $12.00 per use $18.00 per use $15.00 per use $21.00 per use 25.0%16.7%Fee increase from $12.00 per use to $15.00 per use for Residents and from $18.00 per
use to $21.00 per use for Non-Residents to align with market value.
General - Tables - 6' Round $6.00 per table $9.00 per table $9.00 per table $11.00 per table 50.0%22.2%Fee increase from $6.00 per table to $9.00 per table for Residents and $9.00 per table to
$11.00 per table to align with market value.
Junior Museum & Zoo - JMZ -
Group Admission
$55.00-$135.00 per
group Fee plus up to 50%$5.00 per child $5.00 per child N/A N/A Changing the fee structure from a group rate to an individual child rate to align with how
we charge the fee.
Junior Museum & Zoo - JMZ -
Science Child and Family
Programs
$57.00-$1,120 per
unit Fee plus up to 50%$28.00 - $379.00 per
program Fee plus up to 50%N/A N/A Changing the fee structure from unit based to individual program based to align with how
customer purchase programs.
Junior Museum & Zoo - JMZ -
Science School and Group
Programs
$1,120.00-
$56,021.00 per
program
Fee plus up to 50%$129.00 - $340.00
per program Fee plus up to 50%N/A N/A Changing the fee structure from a unit to per program basis since most schools purchase
individual programs.
Junior Museum & Zoo - Exhibit
Hall $216.00 per hour $324.00 per hour $227.00 per hour $341.00 per hour 5.1%5.2%Fee increase from $216.00 per hour to $227.00 per hour for Residents and from $324.00
to $341.00 per hour for Non-Residents to align with market value.
Junior Museum & Zoo - Other
Rooms $60.00 per hour $90.00 per hour $63.00 per hour $95.00 per hour 5.0%5.6%Fee increase from $60.00 per hour to $63.00 per hour for Residents and from $90.00 to
$95.00 per hour for Non-Residents to align with market value.
Junior Museum & Zoo - Package
Rental - All Available Space $540.00 per hour $810 per hour $567.00 per hour $851.00 per hour 5.0%5.1%Fee increase from $540.00 per hour to $567.00 per hour for Residents and from $810.00
to $851.00 per hour for Non-Residents to align with market value.
Junior Museum & Zoo - Science
Lab 1 $92.00 per hour $138.00 per hour $97.00 per hour $145.00 per hour 5.4%5.1%Fee increase from $92.00 per hour to $97.00 per hour for Residents and from $138.00 to
$145.00 per hour for Non-Residents to align with market value.
2016 Adopted 2017 Proposed % Change
Municipal Fee Schedule Amendments for FY 2017 - Changed Fees
Community Services Department
Fee Title Justification
Residents Non-Residents Residents Non-Residents Residents Non-Residents
Junior Museum & Zoo - Science
Lab 2 $60.00 per hour $90.00 per hour $63.00 per hour $95.00 per hour 5.0%5.6%Fee increase from $60.00 per hour to $63.00 per hour for Residents and from $90.00 to
$95.00 per hour for Non-Residents to align with market value.
Junior Museum & Zoo - Zoo $216.00 per hour $324.00 per hour $227.00 per hour $341.00 per hour 5.1%5.2%Fee increase from $216.00 per hour to $227.00 per hour for Residents and from $324.00
to $341.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Ballroom (Room S)$167.00 per hour $249.00 per hour $175.00 per hour $263.00 per hour 4.8%5.6%Fee increase from $167.00 per hour to $175.00 per hour for Residents and from $249.00
to $263.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Community Room (Room R)$125.00 per hour $185.00 per hour $131.00 per hour $197.00 per hour 4.8%6.5%Fee increase from $125.00 per hour to $131.00 per hour for Residents and from $185.00
to $197.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Fireside Room (Room D)$95.00 per hour $145.00 per hour $99.00 per hour $149.00 per hour 4.2%2.8%Fee increase from $95.00 per hour to $99.00 per hour for Residents and from $145.00 to
$149.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Kitchen $35.00 per hour $55.00 per hour $37.00 per hour $55.00 per hour 5.7%0.0%Fee increase from $35.00 per hour to $37.00 per hour for Residents to align with market
value.
Lucie Stern Community Center -
Package Rental - Community
Room
$149.00 per hour $229.00 per hour $157.00 per hour $235.00 per hour 5.4%2.6%Fee increase from $149.00 per hour to $157.00 per hour for Residents and from $229.00
to $235.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Package Rental - Exclusive Use $330.00 per hour $495.00 per hour $347.00 per hour $521.00 per hour 5.2%5.3%Fee increase from $330.00 per hour to $347.00 per hour for Residents and from $495.00
to $521.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Package Rental - Fireside Room $129.00 per hour $189.00 per hour $135.00 per hour $203.00 per hour 4.7%7.4%Fee increase from $129.00 per hour to $135.00 per hour for Residents and from $189.00
to $203.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Package Rental - Weddings
(Saturday and Sunday)
Note: Includes facility attendant
$360.00 per hour $545.00 per hour $379.00 per hour $569.00 per hour 5.3%4.4%Fee increase from $360.00 per hour to $379.00 per hour for Residents and from $545.00
to $569.00 per hour for Non-Residents to align with market value.
Lucie Stern Community Center -
Patio $90.00 per hour $135.00 per hour $95.00 per hour $143.00 per hour 5.6%5.9%Fee increase from $90.00 per hour to $95.00 per hour for Residents and from $135.00 to
$143.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Adobe North Tech Lab $104.00 per hour $156.00 per hour $109.00 per hour $163.00 per hour 4.8%4.5%Fee increase from $104.00 per hour to $109.00 per hour for Residents and from $156.00
to $163.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Adobe South or Matadero
Room
$82.00 per hour $123.00 per hour $87.00 per hour $131.00 per hour 6.1%6.5%Fee increase from $82.00 per hour to $87.00 per hour for Residents and from $123.00 to
$131.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- El Palo Alto East or West Only $104.00 per hour $156.00 per hour $109.00 per hour $163.00 per hour 4.8%4.5%Fee increase from $104.00 per hour to $109.00 per hour for Residents and from $156.00
to $163.00per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- El Palo Alto Room (Ballroom)$208.00 per hour $312.00 per hour $219.00 per hour $329.00 per hour 5.3%5.4%Fee increase from $208.00 per hour to $219.00 per hour for Residents and from $312.00
to $329.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Kitchen $60.00 per hour $90.00 per hour $63.00 per hour $95.00 per hour 5.0%5.6%Fee increase from $60.00 per hour to $63.00 per hour for Residents and from $90.00 to
$95.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Package Rental - Adobe North $177.00 per hour $265.00 per hour $185.00 per hour $277.00 per hour 4.5%4.5%Fee increase from $177.00 per hour to $185.00 per hour for Residents and from $265.00
to $277.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Package Rental - Birthday
Package
Note: Includes game room, basketball
court, and party host.
$208.00 per hour $312.00 per hour $219.00 per hour $329.00 per hour 5.3%5.4%Fee increase from $208.00 per hour to $219.00 per hour for Residents and from $312.00
to $329.00 per hour for Non-Residents to align with market value.
2016 Adopted 2017 Proposed % Change
Municipal Fee Schedule Amendments for FY 2017 - Changed Fees
Community Services Department
Fee Title Justification
Residents Non-Residents Residents Non-Residents Residents Non-Residents
Mitchell Park Community Center
- Package Rental - El Palo Alto $254.00 per hour $381.00 per hour $267.00 per hour $401.00 per hour 5.1%5.2%Fee increase from $254.00 per hour to $267.00 per hour for Residents and from $381.00
to $401.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Package Rental - Exclusive Use
Note: Includes facility attendant.
$473.00 per hour $709.00 per hour $497.00 per hour $745.00 per hour 5.1%5.1%Fee increase from $473.00 per hour to $497.00 per hour for Residents and from $709.00
to $745.00 per hour for Non-Residents to align with market value.
Mitchell Park Community Center
- Package Rental - Weddings
(Saturday and Sunday)
Note: Includes facility attendant.
$498.00 per hour $747.00 per hour $523.00 per hour $785.00 per hour 5.0%5.1%Fee increase from $498.00 per hour to $523.00 per hour for Residents and from $747.00
to $785.00 per hour for Non-Residents to align with market value.
Fee Title Justification
Basic Rate Non-Profit Rate Basic Rate Non-Profit Rate Basic Rate Non-Profit Rate
Cubberley Community Center -
K. Additional Performance $355.00 each $249.00 each $350.00 each $245.00 each -1.4%-1.6%
Fee decrease from $355.00 each to $350.00 each for the basic rate and $249.00 each to
$245.00 each for the Non-Profit Rate as we are splitting the difference between the
additional package fee and the basic add on fee.
Fee Title Justification
Regular Time Overtime & Holiday Regular Time Overtime & Holiday Regular Time
Overtime &
Holiday
Cubberley Community Center -
Theatre Technician $34.00 per hour $51.00 per hour $35.00 per hour $53.00 per hour 2.9%3.9%Fee increase from $34.00 per hour to $35.00 per hour for Regular Time and from $51.00
per hour to $53.00 per hour for Overtime and Holiday Pay for staffing cost increase.
General - Custodial Services $33.00 per hour $50.00 per hour $35.00 per hour $53.00 per hour 6.1%6.0%
Fee increase from $33.00 per hour to $35.00 per hour for Regular Hours and $50.00 per
hour to $53.00 per hour for Overtime & Holiday Hours to align with market value and
increase personal cost.
General - Facility Attendant
and/or Assistant $31.00 per hour $47.00 per hour $33.00 per hour $49.00 per hour 6.5%4.3%
Fee increase from $31.00 per hour to $33.00 per hour for Regular Hours and $47.00 per
hour to $49.00 per hour for Overtime & Holiday Hours to align with market value and
increase personal cost.
General - Lifeguard $21.00 per hour $32.00 per hour $23.00 per hour $35.00 per hour 9.5%9.4%
Fee increase from $21.00 per hour to $23.00 per hour for Regular Hours and $32.00 per
hour to $35.00 per hour for Overtime & Holiday Hours to align with market value and
increase personal cost.
General - Palo Alto Junior
Museum & Zoo Attendant $29.00 per hour $44.00 per hour $31.00 per hour $47.00 per hour 6.9%6.8%
Fee increase from $29.00 per hour to $31.00 per hour for Regular Hours and $44.00 per
hour to $47.00 per hour for Overtime & Holiday Hours to align with market value and
increase personal cost.
General - Park Ranger $61.00 per hour Not Available $75.00 per hour Not Available 23.0%N/A Fee increase from $61.00 per hour to $75.00 per hour for Residents to align with market
value and increase personal cost.
Fee Title Justification
Cubberley Community Center -
Exclusive Storage Space (As
Available)
Fee increase from $1.00 per sq. ft. per month to $1.50 per sq. ft. per month to align with
market value.
Golf - C. Large Bucket Changes range from $10.00 - $14.00 to $10.00 - $12.00 as the large and jumbo bucket
fees we reversed.
Golf - D. Jumbo Bucket Changes range from $10.00 - $12.00 to $10.00 - $14.00 as the large and jumbo bucket
fees we reversed.
Park Activities - Open Space &
Parks Special Use Permit
Changing fee range from $324.00 - $2,163.00 to $300.00 - $2,163.00 to accommodate
smaller group, 1-150 people, Special Use Permits that occur on the fields/grass areas.
50.0%$1.50 per sq. ft. per month$1.00 per sq. ft. per month
$10.00 - $14.00 per bucket
$10.00 - $12.00 per bucket
$324.00 - $2,163.00 each $300.00 - $2,163.00 each
2016 Adopted 2017 Proposed
2016 Adopted 2017 Proposed
2016 Adopted 2017 Proposed % Change
% Change
% Change
16.7%
-14.3%$10.00 - $12.00 per bucket
$10.00 - $14.00 per bucket
-7.4%
2016 Adopted 2017 Proposed % Change
Municipal Fee Schedule Amendments for FY 2017 - Changed Fees
Development Services - Public Works Division
Fee Title Justification
Director's Approval - Protected
Tree Removal
Fee increased from $280.00 to $353.00 per removal to meet Council Cost-recovery
directive
Engineering - A. 101 - 1,000
cubic yards
Base fee reduced from $148.00 to $139.00 for first 100 cubic yards to adjust for actual
costs and meet Council cost-recovery directive
Engineering - B. 1,001 - 10,000
cubic yards
Base fee reduced from $1,480.00 to $1,390.00 for first 1,000 cubic yards to adjust for
actual costs and meet Council cost-recovery directive
Engineering - C. 10,000+ cubic
yards
Base fee reduced from $2,960.00 to $2,680.00 for first 10,000 cubic yards to adjust for
actual costs and meet Council cost-recovery directive
Inspection Fees - Tree Inspection
for Private Development
Fee changed from $243.00 for two inspections (1 each pre & post construction) to
$210.00 per inspection to adjust for actual costs and meet Council cost-recovery directive
Storm Water - Stormwater
Treatment Feature Operations
and Maintenance Inspection
(Fmr. Storm Drain Inspection
Fee)
Fee increased from $436.00 to 551.00 per inspection to meet Council Cost-recovery
directive, name changed from Storm Drain Inspection Fee to Stormwater Treatment
Operations and Maintenance Inspection
Storm Water - Storm Drain Plan
Check Fee
Fee increased from $476.00 per project to $595.00 per project. Staff proposes to increase
the fee by 25% annually for six years until cost recovery is met.
$436.00 per inspection (up to 4 hours) plus
$82.00 per hour thereafter
$551.00 per inspection (up to 4 hours) plus
$82.00 per hour thereafter
$280.00 plus applicable Other Application
fees
$243.00 per inspection $210.00 per inspection
$353.00 plus applicable Other Application
fees
$1,480.00 for the first 1,000 cubic yards,
plus $148.00 for each additional 1,000 cubic
yards or fraction thereof
$2,960 for the first 10,000 cubic yards, plus
$148.00 for each additional 10,000 cubic
yards or fraction thereof
$1,390.00 for the first 1,000 cubic yards, plus
$129.00 for each additional 1,000 cubic yards
or fraction thereof
$2,680.00 for the first 10,000 cubic yards,
plus $517.00 for each additional 10,000 cubic
yards or fraction thereof
$595.00 per project
2016 Adopted 2017 Proposed
-6.1%
-6.1%
-9.5%
$148.00 for the first 100 cubic yards, plus
$148.00 for each additional 100 cubic yards
or fraction thereof
$139.00 for the first 100 cubic yards, plus
$139.00 for each additional 100 cubic yard or
fraction thereof
$476.00 per project
% Change
-13.6%
26.4%
25.0%
26.1%
Municipal Fee Schedule Amendments for FY 2017 - Changed Fees
Public Works Department
Fee Title Justification
Encroachment Permit -
Dumpster Container Fee increased from $168.00 each to $210.00 each to meet Council cost-recovery directive
Encroachment Permit - Fence Fee increased from $191.00 to $1496.00 each to meet Council cost-recovery directive
Encroachment Permit - Non-
Residential Single-Day
Fee increased from $236.00 to $862.00 per project to adjust for actual costs and meet
Council cost-recovery directive
Encroachment Permit - Non-
Residential Long-Term (More
than 5 days)
Fee increased from $1,009.00 to $1,418.00 per project to adjust for actual costs and meet
Council cost-recovery directive
Encroachment Permit - Non-
Residential Short-Term (Less
than 5 days)
Fee increased from $504.00 to $1,014.00 to adjust for actual costs and meet Council cost-
recovery directive
Encroachment Permit -
Residential
Fee increased from $501.00 each to $721.00 to adjust for actual costs and meet Council
cost-recovery directive
Inspection Fees - Off Hour
Inspection Fee increased from $209.00 to $230.00 to meet Council Cost-recovery directive
Operations - Tree Removal Fee increased from $100.00 to 112.00 to meet Council Cost-recovery directive
Permit Fees - A. Construction in
Public Right of Way ($1.00 -
$5,999)
Note: Including public or private
subdivision streets
Base fee increased from $285.00 to $503.00 to adjust for actual costs and meet Council
cost-recovery directive
Permit Fees - B. Construction in
Public Right of Way ($6,000 -
$25,999)
Note: Including public or private subdivision streets
Base fee increased from $285.00 to $503.00 to adjust for actual costs and meet Council
cost-recovery directive
Permit Fees - C. Construction in
Public Right of Way ($26,000 -
$100,999)
Note: Including public or private
subdivision streets
Base fee increased from $912.00 to $1,743.00 to adjust for actual costs and meet Council
cost-recovery directive
Permit Fees - D. Construction in
Public Right of Way ($101,000+)
Note: Including public or private
subdivision streets
Base fee increased from $4,745.00 to $7,368.00 to adjust for actual costs and meet
Council cost-recovery directive
Permit Fees - E. Certificate of
Compliance/Certificate of
Correction/Map Amendment
Note: Including public or private
subdivision streets
Fee increased from $3,290.00 to $4,216.00 to meet Council Cost-recovery directive
Street Cut Fees - Pavement
Condition - Excellent Fee increased from $18.00 to $22.00 to meet Council cost-recovery directive
Street Cut Fees - Pavement
Condition - Fair Fee increased from $10.00 to $13.00 to meet Council cost-recovery directive
Street Cut Fees - Pavement
Condition - Good Fee increased from $13.00 to $16.00 to meet Council cost-recovery directive
Street Cut Fees - Pavement
Condition - Poor Fee increased from $9.00 to $10.00 to meet Council cost-recovery directive
Street Cut Fees - Service Lateral
Connection Fee increased from $1113.00 to $1350.00 to meet Council cost-recovery directive
$13.00 per square foot
$9.00 per square foot
$1,113 each
$16.00 per square foot
$13.00 per square foot
$10.00 per square foot
$1,350 each
$168.00 each
$191.00 each
$236.00 each
$1,009.00 each
$504.00 each
$10.00 per square foot
$501.00 each
$209.00 per hour
$18.00 per square foot
$285.00 per occurrence
$285.00 + 3.9% of value greater than $6,000
$912.00 + 4.4% of value greater than
$26,000.00
$4,745 + 3.0% of value greater than
$100,000.00
$3,290.00 per occurrence
$100.00 per inch of damage plus planting
installation
$22.00 per square foot
$210.00 each
2017 Proposed
25.0%
683.2%
$1,014.00 each
2016 Adopted
$230.00 per hour
$503.00 per occurrence
$503.00 + 6.2% of value greater than $6,000
$1,743 + 7.5% of value greater than
$26,000.00
$7,368 + 6.4% of value greater than
$100,000.00
$4,216.00 per occurrence
$112.00 per inch of damage plus planting
installation
% Change
$1,496.00 each
$862.00 each
$1,418.00 each
$721.00 each
22.2%
12.0%
30.0%
23.1%
11.1%
21.3%
265.3%
40.5%
28.1%
101.2%
43.9%
10.0%
76.5%
76.5%
91.1%
55.3%
Municipal Fee Schedule Amendments for FY 2017 - Changed Fees
Public Works Department
Fee Title Justification
Storm Drain - Flood Zone
Determination Letter
Fee increased from $69.00 per letter to $106.00 per letter to meet Council cost-recovery
directive
Storm Drain - Temporary
Discharge to Storm Drain from
Construction Site Dewatering
Fee increased from $167.00 per request to discharge to $2,903.00 per request to
discharge to adjust for actual costs and meet Council cost-recovery directive. A new fee
was added, as discussed in the body of the CMR, to separately cover the weekly cost of
discharge.
Storm Drain - Temporary
Elevation Benchmarks Fee increased from $314.00 to $365.00 to meet Council cost-recovery directive
Fee Title Justification
Regular Time Overtime & Holiday Regular Time Overtime & Holiday Regular Time
Overtime &
Holiday
Operations - Construction and
Repair $107.00 per hour $161.00 per hour $125.00 per hour $185.00 per hour 16.8%14.9%Fee increased from $107.00 per hour to $125.00 per hour for regular time and $161.00
per hour to $185.00 per hour for overtime to meet Council cost-recovery directive
Operations - Supervision $128.00 per hour $192.00 per hour $139.00 per hour $207.00 per hour 8.6%7.8%Fee increased from $128.00 per hour to $139.00 per hour for regular time and $192.00
per hour to $207.00 per hour for overtime to meet Council cost-recovery directive
Operations - Sweeping Services $89.00 per hour $134.00 per hour $112.00 per hour $167.00 per hour 25.8%24.6%Fee increased from $89.00 per hour to $112.00 per hour for regular time and $134.00 per
hour to $167.00 per hour for overtime to meet Council cost-recovery directive
Operations - Traffic
Control/Graffiti Services $87.00 per hour $131.00 per hour $91.00 per hour $137.00 per hour 4.6%4.6%Fee increased from $87.00 per hour to $91.00 per hour for regular time and $131.00 per
hour to $137.00 per hour for overtime to meet Council cost-recovery directive
Operations - Tree Services $103.00 per hour $155.00 per hour $117.00 per hour $137.00 per hour 13.6%-11.6%Fee increased from $103.00 per hour to $117.00 per hour for regular time and $155.00
per hour to $174.00 per hour for overtime to meet Council Cost-recovery directive
Fee Title Justification
Per load of
1,000 gal. or Less
Each Additional
500 gal.
Per load of
1,000 gal. or Less
Each Additional
500 gal.
Per load of
1,000 gal. or Less
Each Additional
500 gal.
Wastewater Treatment - Grease
Waste Disposal
$110.00 per load of
1,000 gal. or less
$56.00 each
Additional 500 gal.
$121.00 per load of
1,000 gal. or less
$61.60 each Additional
500 gal.10.0%8.9%Fee increased 10% to get closer to Council cost-recovery directive and lower subsidy from
RWQCP partners
Wastewater Treatment - Septic
Tank Waste and Portable Toilet
Pumping Disposal
$67.00 per load of
1,000 gal. or less
$31.00 each
Additional 500 gal.
$73.00 per Load of
1,000 gal. or less
$34.00 each Additional
500 gal.9.0%9.7%Fee increased 10% to get closer to Council cost-recovery directive and lower subsidy from
RWQCP partners
1638.3%
16.2%
$167.00 per request to discharge plus
$82.00 per month of discharge
$314.00 per benchmark
$2,903.00 per request to discharge
$365.00 per benchmark
2016 Adopted 2017 Proposed
2016 Adopted 2017 Proposed
% Change
% Change
% Change
53.6%$69.00 per letter $106.00 per letter
2016 Adopted 2017 Proposed
Municipal Fee Schedule Amendments for FY 2017 - Changed Fees
Police Department
Fee Title Justification
Licenses - Massage
Establishment - Renewal
Staff time estimate increased to include inspection time. Fee adjusted to conform to cost
recovery range.
Licenses - Massage
Establishment - Sole Proprietor
(New)
Staff time estimate increased to include inspection time. Fee adjusted to conform to cost
recovery range.
Licenses - Massage
Establishment - Sole Proprietor
(Renewal)
Staff time estimate increased to include inspection time. Fee adjusted to conform to cost
recovery range.
Licenses - Massage
Establishment - Non-Certified
(New)
Staff time estimate increased to include inspection time. Fee adjusted to conform to cost
recovery range.
Licenses - Massage
Establishment - Non-Certified
(Renewal)
Staff time estimate increased to include inspection time. Fee adjusted to conform to cost
recovery range.
Licenses - Taxicab - Driver Note:
Does not include DOJ Fingerprint and
Rolling Processing Fee
Unit of measure clarified that fee is charged $40 annually or up to $160 for a four year
permit. Fee amount also adjusted to come into conformance with cost recovery range.
Licenses - Taxicab - Master
License (New)
Previous staff cost estimate did not properly account for hearing officer, risk manager and
city attorney time.
Licenses - Taxicab - Transfer Fee
Previous staff time calculation did not account for appointment related administrative
tasks such as scheduling, filing, and recording permits. Fee amount adjusted to conform
with cost recovery range.
Licenses - Taxicab - Vehicle
Inspection for Each Vehicle
Previous fee calculation did not account for appointment related administrative tasks
such as scheduling, filing, and recording new permit. Fee amount adjusted to conform
with cost recovery range.
Licenses - Secondhand Dealer -
New
The California Department of Justice has discontinued accepting new Secondhand
Dealer/Pawnbroker License applications and has shifted this responsibility entirely to local
law enforcement agencies. The local agency is required to accept and remit the license
payment to the state after it has processed the application. Fee change reflects staff costs
to process permit.
Licenses - Secondhand Dealer -
DOJ -New
The California Department of Justice has discontinued accepting new Secondhand
Dealer/Pawnbroker License applications and has shifted this responsibility entirely to local
law enforcement agencies. The local agency is required to accept and remit the license
payment to the state after it has processed the application. Fee reflects only California
Department of Justice costs.
Miscellaneous - Helicopter
Landing Fee
Staff time estimate increased to more accurately reflect time to review and process
permit.
False Alarm - Alarm Registration
Fee - New Staff time estimate revised to include additional administrative time.
False Alarm - Alarm Registration
Fee - Renewal Staff time estimate revised to include additional administrative time.
Special Fees - Subpoena Fee Fee updated to separate subpoena fee and offsite document recovery charge, which is
now its own Fee as detailed in the body of the CMR.
$100.00 per year $150.00 per year
$150.00 per year $317.00 per year
$100.00 per year $150.00 per year
2016 Adopted 2017 Proposed
$100.00 per year $150.00 per year
$150.00 per year $200.00 per year
50.0%
111.3%
50.0%
66.7%
63.6%
42.9%
76.5%
50.0%
33.3%
$2,400 per year
$50.00 each
$60.00 per year
% Change
$25.00 each
$18.00 each
$24.00 per hour plus $12.00 per box offsite
recovery
$24.00 per year up to 4 years $40.00 per year up to 4 years
60.0%
122.2%
0.0%
$50.00 per occurrence
$40.00 each
$40.00 each
$24.00 per hour
$300.00 per application
$300.00 per application
$1,467.00 per year
$35.00 each
$34.00 per year
$25.00 per occurrence
This fee was incorporated into the municipal
fee schedule outside of the adopted budget
process.
This fee was incorporated into the municipal
fee schedule outside of the adopted budget
process.
N/A
N/A
100.0%
Municipal Fee Schedule Amendments for FY 2017 - Changed Fees
New Fees
Department Justification
Community Services New Cleaning Package for Facility Rental customers who do not wish to arrange Cleaning
with an outside vendor.
Basic Rate Non-Profit Rate
N/A $40.00 per hour
Resident Rate Non-Resident Rate
$15.00 per hour $15.00 per hour
Development Services - Public
Works
New Fee to comply with Municipal Regional Stormwater Permit requirement for sites >1
acre and/or high priority (hillside, near creek, prior violation).
Planning and Community
Environment New Fee to process refunds in instances where staff work has already commenced.
Police
The California Department of Justice has discontinued accepting new Secondhand
Dealer/Pawnbroker License applications and has shifted this responsibility entirely to local
law enforcement agencies. The local agency is required to accept and remit the license
payment to the state after it has processed the application. Fee reflects only staff costs to
process renewal permit.
Police Fee for background checks for Federal Office of Personnel Management and Department
of Defense.
Police
This was formerly included as part of the Subpoena fee, but has been separated into its
own fee. Additionally, the cost of offsite document recovery increased from $12.00 per
box to $30.00 per item.
Public Works Fee created to capture actual costs related to Planning Arborist's review of IR plans .
Public Works Fee created for non-residential long-term encroachments that occur in more than one
month.
Public Works Fee created to capture ongoing inspection and administration costs, meeting Council cost-
recovery directive.
Community Services Mitchell Park Community Center - Teen Center Adding a fee to be able to rent the Mitchell Park Teen Center to Non-Profits, Co-
Sponsored Groups or PAUSD Groups.
Community Services Cubberley Community Center - Running Track New fee to charge for the Cubberley Running Track as CSD receives requests to rent this
space.
Map/Plan Review Fees - IR Review Trees
Encroachment - Additional Non-Residential Long-Term (More than 5 days)
Storm Drain - Additional Temporary Discharge to Storm Drain from Construction Site
Dewatering
$217.00 per week for the duration of
the dewatering activities
$647.00 per application
$500.00 per month
Fee Title
$5.00 per application
$30.00 per item
Mitchell Park - Cleaning Package (Add-on Only)
Storm Water - Wet Season Construction Site Stormwater Inspection
Individual Review - Individual Review Refund Processing Fee
Note: Applies if staff work has commenced
Licenses - Secondhand Dealer - Renewal
Background Check - OPM/DOD Background Check
Special Fees - Offsite Dcoument Recovery
$75.00 per application
$230.00 per month October through
April
20% of Fee will be retained
FY 2017 Proposed Fee
$80.00 - $500.00 per event
Municipal Fee Schedule Amendments for FY 2017 - Changed Fees
Deleted Fees
Department Fee Change Justification
Resident Rate Non-Resident Rate
$55.00 per hour $83.00 per hour
Community Services $119.00 per hour $179.00 per hour Deleteing this fee since the Green Room was converted to offices and is no longer
rentable.
Community Services $5.00 - $16.00
per hour
$7.50 - $24.00 per
hour
Deleting this fee since CSD no longer chargers per person, but rather rents by the hour for
Tournament and League play.
Community Services $5.00 per piece $7.50 per piece Deleting this fee since the equipment is no longer available.
Basic Rate Non-Profit Rate
$115.00 per hour $81.00 per hour
Community Services $130.00 per hour $91.00 per hour Deleting fee to simplify the pricing structure to have one common set of add-on fees for
all packages rather than add-ons for each individual package.
Community Services $335.00 each $235.00 each Deleting fee to simplify the pricing structure to have one common set of add-on fees for
all packages rather than add-ons for each individual package.
Library Library discontinued coffee/tea self-service when Rinocanada Library reopened in 2015.
Community Services Cubberly Community Center - Theater rentals - D. Additional Performance Hours beyond
Four Hours per performance
Deleting fee to simplify the pricing structure to have one common set of add-on fees for
all packages rather than add-ons for each individual package.
Community Services Art Center - Green Room Deleting fee since the Green Room was converted to offices and is no longer rentable.
Cubberley Community Center - Theater Rentals - H. Additional Rehearsal Hours Past Ten
Cubberley Community Center - Theater Rentals - B. Additional Performance
Sales - Coffee/Tea - Self/Serve $2.00 per cup
Fee Title FY 2016 Adopted Fee
Art Center - Package Rental - Auditorium and Green Room
Recreation Activities - Tennis Court Registrations for Tournaments and USTA League Play
Cubberley Community Center - Gymanstics Equipment
Attachment _
* 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 15, 2015 [Resolution 9523].
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, 2016.
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, 2016.
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 _
* 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 07-01-20165
dated 7-01-20154 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………………………………………………………………. $35645.325/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 ...................................................................................... $53822.392/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)……………………….. $0.343/ft/month
(3) Fees for additional Drop or Custom Cable fibers (each additional set of 12-Fibers) $0.07/ft/month
Minimum Drop or Custom Cable Management Fees ........................................................ $26658.029/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-1-2 Effective 07-01-20165
dated 7-01-20154 Sheet No. EDF-1-2
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 7-01-20165
dated 7-01-20154 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 ..................................................................... $85125.00
(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 A
NOT YET APPROVED
160330 jb 6053708
Resolution No. _________
Resolution of the Council of the City of Palo Alto Approving the
FY 2017 Electric Utility Financial Plan and Amending the Electric
Utility Reserves Management Practices
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.
C. The City intends to make changes to its Electric Utility Reserves Management
Practices to amend the management practices of the Electric Utility’s Capital Improvement
Program (CIP) Reserve.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. The Council hereby approves the FY 2017 Electric Utility Financial Plan,
including the amended Electric Utility Reserves Management Practices. These Reserves
Management Practices replace the Reserves Management Practices previously approved for
the Electric Utility as part of the FY 2016 Electric Utility Financial Plan (Resolution 9521).
SECTION 2. The Council hereby approves the transfer of $5.6 million in FY 2016 from
the Hydro Stabilization Reserve to the Supply Operations Reserve, $2.0 million in FY 2016 from
the Supply Operations Reserve to the Distribution Operations Reserve, the transfer of $5.6
million in FY 2016 from the CIP Reserve to the Distribution Operations Reserve, the transfer of
$5.4 million 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 2017 Electric Utility Financial
Plan approved via this resolution.
/ /
/ /
/ /
CMR #6932: ATTACHMENT C
Attachment A
NOT YET APPROVED
160330 jb 6053708
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 2017 ELECTRIC
UTILITY
FINANCIAL PLAN
FY 2017 TO FY 2023
ATTACHMENT B
2 | P a g e
FY 2017 ELECTRIC UTILITY
FINANCIAL PLAN
FY 2017 TO FY 2023
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 2017 Rate and Reserves Proposals ....................................................... 7
Section 3A: Rate Design ............................................................................................................... 7
Section 3B: Current and Proposed Rates ..................................................................................... 7
Section 3C: Reserves Management Practices, Proposed Change ................................................ 7
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 ................................................................................. 18
Section 5A: Load Forecast .......................................................................................................... 18
Section 5B: FY 2009 to FY 2015 Cost and Revenue Trends ........................................................ 19
Section 5C: FY 2015 Results ....................................................................................................... 20
Section 5D: FY 2016 Projections ................................................................................................ 20
Section 5E: FY 2017 – FY 2023 Projections ................................................................................ 21
3 | P a g e
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 ............................................................................................................ 34
Section 6E: Equity Transfer ........................................................................................................ 35
Section 6F: Wholesale Revenues and Other Revenues .............................................................. 36
Section 6G: Sales Revenues ....................................................................................................... 36
Section 7: Communications Plan .......................................................................................... 37
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 | P a g e
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
Subtransmission 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 | P a g e
SECTION 2: EXECUTIVE SUMMARY AND RECOMMENDATIONS
This document presents a Financial Plan for the City’s Electric Utility for the next seven 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 2015 to FY 2023
Expenses
($000)
FY 2015
(actual)
FY 2016
(est.)
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
Power Supply
Purchases 80,022 75,705 86,378 88,524 89,131 90,304 89,637 88,543 89,919
Operations 47,611 52,170 52,923 53,922 54,579 55,277 56,076 56,898 58,696
Capital Projects 12,713 16,989 27,652 22,058 26,649 15,868 16,320 16,785 17,263
TOTAL 140,346 144,864 166,953 164,504 168,710 161,450 162,034 161,225 165,877
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 to the continued drought that has required
additional electric supply purchases to replace hydroelectric supplies.
Table 2: Projected Electric Rate Trajectory for FY 2017 to FY 2023
Projection FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
Current 11% 10% 3% 0% 1% 0% 2%
Last Year 6% 6% 1% 1% 0% 0% 2%
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 2017. 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. Funds are projected
to be drawn 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. It should be noted that the smart grid costs included in the forecast are
6 | P a g e
placeholders, as are the transfers from the ESP Reserve. Any transfers from the ESP Reserve
require Council approval.
Table 3: Reserves Transfers for FY 2016 to FY 2023 ($000)
Reserve FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 to FY 2023
Supply Reserves
Electric Special Projects (151) (333) (3,750) -
Hydro Stabilization (5,600) (9,000) (2,400) - -
Supply Rate Stabilization 9,000* (5,411) - - -
Supply Operations 3,600 14,562 2,733 3,750 -
Distribution Reserves
Capital Improvement Program (5,600)
Distribution Operations 7,700 - - - -
* 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 2016:
1. Complete the proposed FY 2016 reserves transfers described Section 3D: Proposed
Reserve Transfers.
Staff proposes the following actions for the Electric Utility in FY 2017:
1. Complete the proposed FY 2017 reserves transfers described in Section 3D: Proposed
Reserve Transfers.
2. Increase rates effective July 1, 2016 to generate an 11% increase in sales revenues.
3. Amend the Electric Utility Reserves Management Practices to modify the minimums and
maximums for the CIP Reserve.
Note that while the projected rate increases and reserves transfers in this FY 2017 Financial
Plan are adequate to recover costs over the forecast period, the Supply Operations Reserves
are projected to be as much as $3.9 million below the minimum Supply Operations Reserve
level for FY 2017 through FY 2020. Staff still recommends proceeding with this plan for two
reasons: first, due to the presence of a strong El Niño condition in the Pacific Ocean, there is a
chance of high spring rains that may change this forecast, resulting in higher reserves, and
second, the presence of the Electric Special Projects Reserve with a balance of $51 million
means that a small temporary shortfall in the Supply Operations Reserve should not affect the
Electric Utility’s financial health and bond ratings. In the event drought continues, staff will re-
evaluate its projections for FY 2018 and may recommend additional rate increases or the
adoption of a hydroelectric rate adjuster.
7 | P a g e
SECTION 3: DETAIL OF FY 2017 RATE AND RESERVES PROPOSALS
SECTION 3A: RATE DESIGN
The Electric Utility’s current rate structure and methodology are consistent with the cost of
service analysis (COSA) update in 2007 by Boris Metrics. Staff is completing a new COSA with
revised rates to become effective July 1, 2016. The new 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, 2009, when CPAU increased electric rates by 10%.
Table 4, below, summarizes the current 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.
Another specialty rate is the E-18 municipal electric rate.
Table 4: Current Electric Rates (Adopted July 1, 2009)
Rate Component Units
E-1
(Residential)
E-2 (Small
Commercial)
E-4 (Medium
Commercial)
E-7 (Large
Commercial)
Demand (Summer) $/kW N/A N/A 20.54 18.97
Demand (Winter) $/kW N/A N/A 13.84 11.54
Energy (Summer)
Tier 1 $/kWh 0.09524 0.14045 0.08171 0.07808
Tier 2 $/kWh 0.13020 N/A N/A N/A
Tier 3 $/kWh 0.17399 N/A N/A N/A
Energy (Winter)
Tier 1 $/kWh Same as
summer
energy
0.12661 0.07318 0.07209
Tier 2 $/kWh N/A N/A N/A
Tier 3 $/kWh N/A N/A N/A
Tier amounts:
Tier 1 kWh/day 0-10 N/A N/A N/A
Tier 2 kWh/day 11-20 N/A N/A N/A
Tier 3 kWh/day >20 N/A N/A N/A
Staff proposes an 11% overall increase in revenue along with changes in rate design and
changes in the allocation of costs between customer classes to ensure that the rates are based
on the cost of service for each customer group. These proposals are detailed in the consultant
report titled “City of Palo Alto Electric Cost of Service and Rate Study,” by EES Consulting (2016).
SECTION 3C: RESERVES MANAGEMENT PRACTICES, PROPOSED CHANGE
Staff proposes one change to the Electric Utility Reserves Management Practices (See Appendix
B: Electric Utility Reserves Management Practices) in this Financial Plan. Staff recommends
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revising the CIP Reserve minimum to be 60 days of capital expenses, with a maximum of 120
days of expenses, which aligns with the Government Financial Officers of America rule of thumb
for operating reserves and the minimum and maximum guidelines for the Distribution
Operations Reserve. Staff recommends transferring $5.6 million from the CIP Reserve to the
Distribution Operations Reserve. Also see Section 3D: Proposed Reserve Transfers.
SECTION 3D: PROPOSED RESERVE TRANSFERS
In the FY 2016 Electric Financial Plan Council approved a $9 million transfer from the Supply
Rate Stabilization Reserve to the Supply Operations Reserve. Staff proposes the following
additional transfers in FY 2016:
Transfer $5.6 million from the Hydroelectric Stabilization Reserve fund to the Supply
Operations Reserve to cover additional costs associated with low hydroelectric
generation due to the drought.
Transfer $2.0 million from the Supply Operations Reserve to the Distribution Operations
Reserve to ensure reserve adequacy in the Distribution Operations Reserve.
Transfer $5.6 million from the CIP Reserve to the Distribution Operations Reserve as
part of the change to Reserves Management Practices described above.
For FY 2017, staff proposes the following transfers:
Transfer $5.4 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.
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
may be unnecessary if weather conditions change, but if drought continues, this
transfer will enable the City to fund the associated additional energy costs.
Transfer up to $4.5 million from the Supply Operations Reserve to the Distribution
Operations Reserve if necessary to ensure reserve adequacy in the Distribution
Operations Reserve.
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 2017 – FY 2023
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
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Table 5: End of Fiscal Year Electric Utility Reserve Balances for FY 2016 to FY 2023
Ending Reserve
Balance ($000) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
Reappropriations - - - - - - - -
Commitments 3,102 3,102 3,102 3,102 3,102 3,102 3,102 3,102
Underground Loan 730 730 730 730 730 730 730 730
Public Benefits 2,574 2,700 2,790 2,799 2,717 2,545 2,434 2,374
Special Projects 51,838 51,535 51,383 51,050 47,300 47,300 47,300 47,300
Hydro Stabilization 17,000 11,400 2,400 0 0 0 0 0
Capital 0 2,864 2,864 2,864 2,864 2,864 2,864 2,864
Rate Stabilization 14,411 5,411 0 0 0 0 0 0
Operations 22,498 22,734 22,015 22,281 24,814 27,033 30,783 34,269
Unassigned 0 0 0 0 0 0 0 0
TOTAL 112,153 100,476 85,284 82,827 81,528 83,574 87,214 90,639
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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
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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.
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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
Utility1 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 managing 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.
1 Implementation of Direct Access for Electric Utility Customers, CMR:460:97, December 1, 1997
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Figure 1: Customer Base (FY 2015)
Residential
16%
Small
Comm
8%
Med
Comm
32%
Large
Comm
41%
Municipal
3%
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 29,300 customers
connected to the electric system,
26,400 (90%) of which are residential
and 2900 (10%) of which are non-
residential. Residential customers
consumed 173 gigawatt-hours (GWh)
in FY 2015, approximately 18% of the
electricity sold, while non-residential
customers consumed 82% or
763 GWh. Residential customers use
electricity primarily for lighting,
refrigeration, electronics, and air conditioning.2 Non-residential customers use the majority of
their electricity for cooling, ventilation, lighting, office equipment (offices), cooking
(restaurants), and refrigeration (grocery stores).3
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 66 customers on the
E-7 rate schedule) account for over 40% of CPAU’s sales. The next largest customer group (the
740 commercial customers on the E-4 rate schedule) represents another 32% of sales. In total,
that means that less than 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
2 Source: Residential Appliance Saturation Survey, California Energy Commission, 2010
3 Source: Statewide Commercial End Use Study, California Energy Commission report, 2006.
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Figure 2: Cost Structure (FY 2015)
Figure 3: Hydroelectric Variability (FY 2016)
0%
20%
40%
60%
80%
100%
120%
140%
Low
Hydro
Average High
Hydro
Surplus
Hydro (sales)
Market
Power/RECs
Hydro
Renewables
Load
Figure 4: Revenue Structure (FY 2015)
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 55% of the
Electric Utility’s costs in FY 2015. Operational
costs represented roughly 31%, and capital
investment was responsible for the remaining
10%. 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
47% of total costs in FY 2023.
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,
average, and low hydroelectric generation
scenarios. Additional costs associated with a
very low generation scenario can range from
$10-12 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 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
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as accounting entries associated with occasional sales of surplus hydroelectric energy during
wet years. Without these entries sales revenues represent roughly 93% 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 800 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 25% of the utility’s
revenue comes from peak demand charges on large commercial 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, Proposed Change).
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
needed for that purpose, the reserve was renamed and the purpose was changed to
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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 2015 was
$513.17 under current CPAU rates, 36% lower than the annual bill for a PG&E customer with
the same consumption and 9% lower than 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
below were in effect as of January 1, 2016. Note that rates for PG&E customers increased
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substantially on that date, and with rates currently in effect, the bill for the median residential
user is roughly 45% below PG&E’s rates.
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, 2016 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 1/1/16, $/mo)
Season Usage (kwh) Palo Alto PG&E Santa Clara
Winter
(December)
300 28.57 54.45 34.16
(Median) 453 48.49 88.39 52.21
650 76.33 142.09 75.47
1200 172.03 333.61 140.38
Summer
(July)
300 28.57 54.45 34.16
(Median) 330 32.48 62.05 36.65
650 76.33 148.02 75.47
1200 172.03 339.84 140.38
Table 7 shows the average monthly electric bill for commercial customers for various usage
levels. Bills for small commercial customers in Palo Alto are 37% below what they would be in
PG&E territory and 20% below what they would be in Santa Clara (Silicon Valley Power). For
large commercial customers, rates are 30% to 35% below PG&E’s and are 4% to 10% lower than
Santa Clara’s. Even with the proposed rate increases, Palo Alto’s commercial bills will remain
substantially below PG&E’s, and below Santa Clara’s for most commercial customers.
Table 7: Commercial Monthly Electric Bill Comparison (1/1/16, $/mo)
Usage (kwh/mo) Palo Alto PG&E Santa Clara
1,000 134 212 167
160,000 18,364 27,221 19,228
500,000 43,319 66,152 47,913
2,000,000 216,594 311,640 234,322
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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
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 2023, as well as what
electricity consumption would have been without energy efficiency rebates, appliance
efficiency standards, stricter building codes, and rooftop solar photovoltaic (PV) generation.
The forecast assumes that current trends continue and sales through the forecast period
decline slightly. As of the end of December 2015, net metered PV installations in Palo Alto
provided roughly 1% of the total electricity consumed in the City. The Council-adopted Local
Solar Plan’s goal is to increase the energy generated by local solar to 4% of the City’s needs by
2023.
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Figure 6: Forecasted Electricity Consumption
SECTION 5B: FY 2009 TO FY 2015 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.
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Figure 7: Electric Utility Expenses, Revenues, and Rate Changes:
Actual Costs through FY 2015 and Projections through FY 2023
SECTION 5C: FY 2015 RESULTS
In spring of 2014 staff recommended no rate change for July 1, 2014, the start of FY 2015.
Although staff forecast a $5.7 million deficit for FY 2015 without a rate change, reserves were
adequate to absorb this deficit. However, drought conditions worsened in the spring of 2014
and continued through the winter of 2014/2015, resulting in a deficit of $17.0 million for FY
2015. The increased deficit was entirely related to the low output from hydroelectric resources,
which necessitated electricity market purchases to replace the lower than expected
hydroelectric energy.
SECTION 5D: FY 2016 PROJECTIONS
In spring of 2015, staff recommended (and Council approved) no rate change for July 1, 2015,
the start of FY 2016. Based on hydroelectric conditions at the time, staff forecasted a $10.3
million deficit for FY 2016. This deficit was primarily related to low hydroelectric output, and
was to be funded from the Operations and Hydroelectric Stabilization reserves. Staff’s current
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forecast for FY 2016 is for a deficit of $20.1 million, $9.8 million more than forecasted in spring
of 2015. This change is mainly related to two factors: 1) capital improvement program costs
have increased by roughly $7 million, and 2) energy costs have increased by roughly $3 million
due to continuing drought and resulting low hydroelectric generation.
The $7 million increase in CIP costs is largely related to the delay of projects from previous fiscal
years to FY 2016 rather than mid-year adjustments requesting new funding. Staff proposes
partially funding this portion of the deficit using a $5.6 million transfer from the CIP Reserve,
which contains $8.4 million collected in previous fiscal years to fund capital projects. The
additional $3 million related to energy costs would be funded from the Hydroelectric
Stabilization Reserve. These transfers are discussed in Section 3D: Proposed Reserve Transfers.
SECTION 5E: FY 2017 – FY 2023 PROJECTIONS
As shown in Figure 7 above, costs for the Electric Utility are projected to increase in FY 2017
and level off in subsequent years. Revenues will have to increase 11% in FY 2017 and another
10% in FY 2018 to keep up with these cost increases. The 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 substantially in FY 2017 to begin catching up on deferred maintenance, but
subsequently are expected to increase at or below the inflation rate (2-3 %/year) through the
forecast period. Projected capital expenses for FY 2017 through FY 2023 are $30 million higher
than last year’s forecast due mostly to several large one-time projects, some customer driven,
but also due to an increase in spending on system improvements. The increased costs are
partially offset by $13.4 million in revenue from reimbursements associated with those
projects. Aside from those one-time costs, capital expenses are projected to increase in FY 2017
and then stay roughly level through the forecast period. 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 is projected to be empty by the end of FY 2016. Assuming the projected increases in
revenue, the Distribution Operations reserve will remain adequate through the forecast period,
comfortably above minimum levels and adequate to meet all identified risks. 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.
With respect to the Hydro Stabilization Reserve, these projections assume average rainfall next
winter, although hydro generation is still predicted to be below average due to low reservoir
levels. The current forecast does not take into account potential rainfall associated with El Niño
conditions in the spring of 2016, nor potential drought in the 2016/2017 year, which may follow
the El Niño conditions of 2016. This scenario may help reserves, hurt reserves, or have little net
effect depending on the associated rainfall levels.
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Figure 8: Electric Utility Reserves (Supply Fund):
Actual Reserve Levels through FY 2015 and Projections through FY 2023
Figure 9: Electric Utility Reserves (Distribution Fund):
Actual Reserve Levels through FY 2015 and Projections through FY 2023
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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 2017 FY 2018
1. Load Net Revenue 1.2 1.3 Revenue loss from load decreases (net of
reduction in energy purchases)
2. Production from Hydroelectric
Resources: Western & Calaveras 3.4 2.4 Lower than forecasted hydro
3. Renewable Production: Landfill &
Wind 0.5 2.1 Additional cost of renewable output that is
higher than forecasted
4. Carbon Neutral Cost 0.1 - Higher than forecasted market prices for RECs
5. Market Price (Energy) 1.1 0.5 Higher than forecasted market prices for
energy
6. Local Capacity 0.4 0.7 Higher than forecasted market prices for local
capacity
7. Transmission/CAISO 2.8 3.0 High-end transmission forecast scenario
8. Plant Outage 1.0 1.0 Uninsured losses from Calaveras plant outage
9. Western Cost 3.0 3.5 Risk of rate adjustments from Western
Electric Supply Fund Risks $13.6
million
$14.3
million
Projected Supply Operations +
Hydro Stabilization Reserve Levels
$16.4
million
$12.8
million
Of the risks faced by the Electric Utility’s Supply Fund in FY 2016, 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. However, for FY 2017 and FY 2018, lower than average hydroelectric
output is already expected, so the adverse risk is smaller than usual. Risks associated with
hydroelectric output account for $3.4 million (25%) of FY 2017 contingencies.
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Of the remaining risks for FY 2017, $2.8 million (20%) is related to the projected costs if
transmission cost increases are higher than staff’s current forecast. Another $3.0 million (22%)
is related to the possibility of drought-related changes to Western rates for CVP hydropower,
and $1.1 million (8%) is related to fluctuations in market prices for capacity, energy, and RECs.
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 the presence of
a strong El Niño condition in the Pacific Ocean, there is a chance of high spring rains that may
change this forecast, resulting in higher reserves, and second, the presence of the $51 million
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
continues, staff will re-evaluate its projections for FY 2018 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 2021. 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.
Table 9: Electric Distribution Fund Risk Assessment ($000)
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Total non-commodity revenue $49,651 $52,233 $52,275 $52,237 $53,804
Max. revenue variance, previous ten years 8% 8% 8% 8% 8%
Risk of revenue loss $3,919 $4,122 $4,126 $4,123 $4,246
CIP Budget $27,652 $22,058 $26,649 $15,868 $16,320
CIP Contingency @10% $2,765 $2,206 $2,665 $1,587 $1,632
Total Risk Assessment value $6,684 $6,328 $6,791 $5,710 $5,879
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Figure 12: Electric Distribution Operations Reserve Adequacy
As shown in Figure 13, the CIP Reserve is projected to be well within 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 Distribution Operations Reserve Adequacy
SECTION 5G: LONG-TERM OUTLOOK
This forecast covers the period from FY 2017 through FY 2023, 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
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
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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 there is no
provision for the continuation of these allocations past 2020. 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
long-term planning processes, but will need to continue to incorporate them into its planning
methodologies.
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Looking out toward 2050 and beyond, if the State were to adopt climate goals consistent with
Executive Orders S-3-05 and B-16-2012 (with a goal of reducing GHG emissions to 80 percent
below 1990 levels by 2050), or if similar (or more aggressive) local goals were adopted, 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 overinvestment.
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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 20% of the portfolio in FY 2015, and are projected to rise to roughly 50% 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,4 as well as
average and actual hydroelectric generation.5 Electric supply costs decreased in FY 2010 and FY
2011 due to decreases in market prices related to shale gas. In addition, FY 2009 was a dry year
with low hydroelectric production, so FY 2010 and FY 2011 looked better by comparison. Costs
increased in FY 2013, FY 2014, and FY 2015 due to the drought, which reduced the amount of
generation from hydroelectric resources. Costs are projected to decrease slightly in FY 2016
due to slightly higher hydroelectric generation, and may decrease substantially depending on
rainfall. 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 $75.2 million by FY 2018, at
which point all currently contracted renewable projects will be online. Supply costs are only
projected to change slightly in subsequent years.
4 Costs are shown net of wholesale revenues, and cannot be directly compared with the electric supply purchase
figures shown in Appendix Error! Reference source not found. (Error! Reference source not found.).
5 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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Figure 15: Electric Supply Portfolio Costs, Historical and Projected
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.
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From FY 2009 to FY 2015, Operations costs increased by $2.2 million, or 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. Excluding debt service and transfers, which stay
relatively stable over time, costs increased roughly 2.5% per year over that time. In FY 2016,
however, Operations costs increased $4.5 million (9.6%). This was primarily due to increases in
overhead and salary and benefit costs. Operations costs are projected to increase by an
additional $1M per year starting in FY 2017 as work is done to begin catching up on deferred
maintenance that has accumulated due to difficulty filling certain maintenance positions. Aside
from those increases, costs are projected to increase with inflation over the remainder of the
forecast period.
Figure 16: Historical and Projected Electric Utility Operational Costs
SECTION 6C: CAPITAL IMPROVEMENT PROGRAM (CIP)
CIP spending for FY 2017 through FY 2019 is projected to increase substantially, primarily due to
major one-time projects, including service connection upgrades for a few major customers,
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. The one-time projects
will mostly be funded by customer-specific fees and transfers from other funds. Only $3.4
million of the funding for the one-time projects is projected to come from utility rates. This
forecast assumes that smart grid projects are financed from the Electric Special Projects
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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 2017 to FY 2023 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 2017 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
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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:
Table 10: Electric Utility Debt Service ($000)
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
2007 Clean Renewable
Energy Bonds 100 100 100 100 100 100 - -
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 since6. Each year it is calculated according
to the 2009 Council-adopted methodology, and does not require additional Council action.
6 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.
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SECTION 6F: WHOLESALE REVENUES AND OTHER REVENUES
The Electric Utility receives most of its revenues from sales of electricity, but about 12% comes
from other sources. Of these other sources, about a third represent wholesale “revenues” that
is included solely for accounting purposes. These revenues have offsetting electric supply
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 2015 these sources represented roughly 50% of revenue from sources other
than electricity sales. The remaining FY 2015 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. In addition, Palo Alto is a built
out City, with incremental growth in population and relatively stable commercial customer
loads.
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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 2017 Electric Utility communications
strategy covers these primary areas: rates, drought impacts, efficiency, renewables, operations,
infrastructure and safety.
In FY 2017, CPAU is proposing an 11% increase in electric utility rates. Electric utility rates have
not increased since 2009, as the City has been drawing down reserves from the Electric Fund.
The rate increase is necessary this year, as these reserves are below the minimum reserve level.
Communications will focus on the reasons why a rate increase is necessary, and why the
percentage increase is higher than projected in past financial forecasts, particularly due to the
impact of the drought. Palo Alto purchases a significant portion of its electricity from
hydroelectric resources. Severe drought conditions over the past few years have reduced
available hydroelectric supplies, requiring the City to purchase more costly replacement electric
supplies.
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 are far lower than
PG&E’s. 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. 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. Since January 2015, CPAU has been encouraging
community participation in the Georgetown University Energy Prize competition, a friendly,
national campaign for energy efficiency. This two-year campaign encourages the community to
reduce energy use and compete for a $5 million prize. Just recently, CPAU launched new
programs that will allow customers to better understand and manage their energy use. Such
programs include a free utility bill analysis service with option for a subsidized in-depth home
energy assessment, and an online utility portal for customers to view consumption history,
learn about efficiency tips and CPAU programs they can take advantage of for home energy
efficiency.
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APPENDICES
Appendix A: Electric Utility Financial Forecast Detail
Appendix B: Electric Utility Reserves Management Practices
Appendix C: Description of Electric utility Operational Activities
Appendix D: Samples of Recent Electric Utility Outreach Communications
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APPENDIX A: ELECTRIC UTILITY FINANCIAL FORECAST DETAIL
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1 FISCAL YEAR FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
2
3 ELECTRIC LOAD
4 Purchases (MWh)1,040,851 1,019,788 978,833 969,519 976,319 980,894 979,005 977,292 993,844 997,125 998,260 997,531 997,596 999,464 986,864
5 Sales (MWh)995,811 965,048 946,518 942,562 946,841 950,784 936,773 946,996 963,035 966,215 967,314 966,608 966,670 968,481 956,271
6
7 BILL AND RATE CHANGES
8 System Average Rate ($/kWh)0.1048$ 0.1155$ 0.1168$ 0.1156$ 0.1154$ 0.1164$ 0.1158$ 0.1158$ 0.1274$ 0.1398$ 0.1435$ 0.1435$ 0.1452$ 0.1452$ 0.1477$
9 Change in System Average Rate 10%1%-1%0%1%0%0%11%10%3%0%1%0%2%
10 Change in Average Residential Bill 11%-5%-1%-4%-1%-5%10%8%10%2%0%1%0%1%
11
12 STARTING RESERVES
13 Reappropriations (Non-CIP)- - 2,760,000 343,000 1,886,000 305,000 - - - - - - - - -
14 Commitments (Non-CIP)2,241,000 1,916,000 1,463,000 1,593,000 2,737,000 3,528,000 3,164,000 3,102,000 3,102,000 3,102,000 3,102,000 3,102,000 3,102,000 3,102,000 3,102,000
15 Restricted for Debt Service - - - - - - - - - - - - - - -
16 Emergency Plant Replacement 3,057,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 - - - - - - - -
17 Central Valley Project Reserve 22,000 153,000 306,000 305,000 314,000 313,000 329,000 - - - - - - - -
18 Underground Loan Reserve 709,000 717,000 731,000 736,000 742,000 738,000 734,000 730,000 730,000 730,000 730,000 730,000 730,000 730,000 730,000
19 Public Benefits Reserves 2,109,000 4,280,000 3,750,000 3,139,000 1,149,000 2,197,000 2,064,000 2,574,000 2,700,394 2,790,356 2,799,046 2,717,399 2,544,810 2,434,376 2,373,578
20 Electric Special Projects Reserve 70,397,000 64,535,000 59,865,000 55,558,000 50,320,000 51,838,000 51,838,000 51,838,000 51,534,944 51,383,460 51,050,127 47,300,127 47,300,127 47,300,127 47,300,127
21 Hydro Stabilization Reserve - - - - - - - 17,000,000 11,400,000 2,400,000 - - - - -
22 Capital Reserves - - - - - - - - 2,864,000 2,864,000 2,864,000 2,864,000 2,864,000 2,864,000 2,864,000
23 Rate Stabilization Reserves 55,418,000 47,783,000 54,339,000 66,331,000 74,609,000 69,029,000 70,049,000 14,411,000 5,411,000 - - - - - -
24 Operations Reserves - - - - - - - 22,498,000 22,733,825 22,014,607 22,281,475 24,814,237 27,032,576 30,783,222 34,269,008
25 Unassigned - - - - - - - - - - 0 - - - -
26 TOTAL STARTING RESERVES 133,953,000 120,384,000 124,214,000 129,005,000 132,757,000 128,948,000 129,178,000 112,153,000 100,476,163 85,284,424 82,826,649 81,527,763 83,573,514 87,213,725 90,638,713
27
28 REVENUES
29 Net Sales 105,312,712 113,129,269 111,948,267 109,309,318 109,974,337 110,301,711 108,674,986 109,644,507 122,721,963 135,111,161 138,828,086 138,726,658 140,313,744 140,576,542 141,259,300
30 Wholesale Revenues 10,618,388 7,903,940 8,443,016 7,189,218 6,635,790 6,010,409 6,267,000 6,763,000 11,732,580 13,249,634 14,128,345 15,816,411 16,063,130 15,367,103 15,992,486
31 Other Revenues and Transfers In 11,744,330 8,458,392 6,374,799 6,316,048 8,736,976 9,772,185 8,379,507 8,315,879 17,306,372 13,685,157 16,104,331 8,952,387 9,297,064 9,706,437 10,042,027
32 TOTAL REVENUES 127,675,429 129,491,602 126,766,082 122,814,584 125,347,103 126,084,305 123,321,493 124,723,385 151,760,915 162,045,951 169,060,763 163,495,456 165,673,937 165,650,082 167,293,813
33
34 EXPENSES
35 Electric Supply Purchases 82,348,075 68,714,475 61,247,248 58,724,136 61,313,637 68,785,977 80,022,010 75,705,000 86,377,737 88,523,524 89,131,094 90,303,886 89,637,135 88,542,665 89,918,517
36 Operating Expenses
37 Administration
38 Allocated Charges 3,585,068 2,667,704 2,807,991 3,416,423 4,399,674 4,139,837 4,511,222 3,651,896 3,743,559 3,837,533 3,933,853 4,032,597 4,133,584 4,236,960 4,342,932
39 Rent 3,428,294 3,963,377 3,721,542 3,839,201 3,875,836 4,051,044 4,147,742 4,991,328 5,141,068 5,295,300 5,454,159 5,617,784 5,786,317 5,959,907 6,138,704
40 Debt Service 8,185,819 7,919,136 7,343,352 8,902,751 9,265,736 9,020,651 9,037,000 9,139,768 8,953,886 8,955,164 8,808,619 8,818,349 8,783,507 8,792,388 9,624,493
41 Transfers and Other Adjustments 13,282,668 10,860,269 13,056,927 11,603,695 16,797,054 11,385,421 10,789,119 11,778,415 11,781,400 11,784,460 11,787,597 11,790,812 11,794,107 11,797,485 11,800,947
42 Subtotal, Administration 28,481,848 25,410,486 26,929,812 27,762,069 34,338,299 28,596,953 28,485,082 29,561,407 29,619,914 29,872,457 29,984,228 30,259,541 30,497,516 30,786,740 31,907,076
43 Resource Management 2,062,511 3,033,428 2,380,313 2,654,024 3,024,268 3,541,524 2,138,615 2,966,005 3,071,752 3,182,092 3,295,330 3,413,039 3,513,915 3,605,059 3,699,533
44 Demand Side Management 3,336,356 4,048,114 3,490,676 4,541,531 3,529,529 3,187,875 3,491,470 4,476,424 3,612,447 3,694,961 3,558,989 3,275,399 3,213,446 3,169,620 3,251,901
45 Operations and Mtc 8,975,462 8,892,002 9,339,340 9,288,490 9,601,481 9,488,627 10,716,881 12,216,961 13,621,453 14,075,224 14,540,523 15,022,687 15,450,353 15,847,643 16,258,382
46 Engineering (Operating)879,303 1,094,766 1,070,441 1,057,783 1,114,945 1,102,008 1,230,160 1,929,843 1,981,771 2,035,192 2,089,931 2,146,191 2,201,598 2,257,007 2,313,920
47 Customer Service 1,650,731 1,896,956 1,881,881 1,908,493 2,007,322 2,032,231 1,548,851 2,348,349 2,436,928 2,529,629 2,624,844 2,724,064 2,806,984 2,880,302 2,956,458
48 Allowance for Unspent Budget - - - - - - - (1,328,747) (1,421,462) (1,467,484) (1,514,688) (1,563,571) (1,607,504) (1,648,717) (1,691,289)
49 Subtotal, Operating Expenses 45,386,213 44,375,751 45,092,464 47,212,389 53,615,844 47,949,218 47,611,059 52,170,242 52,922,803 53,922,071 54,579,157 55,277,350 56,076,307 56,897,655 58,695,982
50 Capital Program Contribution 13,510,141 12,571,376 15,635,370 13,126,059 14,226,622 9,119,111 12,713,425 16,988,980 27,652,114 22,058,131 26,649,398 15,868,470 16,320,285 16,784,774 17,262,590
51 TOTAL EXPENSES 141,244,429 125,661,602 121,975,082 119,062,584 129,156,103 125,854,305 140,346,493 144,864,222 166,952,654 164,503,726 170,359,649 161,449,705 162,033,726 162,225,093 165,877,088
52
53 ENDING RESERVES
54 Reappropriations (Non-CIP)- 2,760,000 343,000 1,886,000 305,000 - - - - - - - - - -
55 Commitments (Non-CIP)1,916,000 1,463,000 1,593,000 2,737,000 3,528,000 3,164,000 3,102,000 3,102,000 3,102,000 3,102,000 3,102,000 3,102,000 3,102,000 3,102,000 3,102,000
56 Restricted for Debt Service - - - - - - - - - - - - - - -
57 Emergency Plant Replacement 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 - - - - - - - - -
58 Central Valley Project Reserve 153,000 306,000 305,000 314,000 313,000 329,000 - - - - - - - - -
59 Underground Loan Reserve 717,000 731,000 736,000 742,000 738,000 734,000 730,000 730,000 730,000 730,000 730,000 730,000 730,000 730,000 730,000
60 Public Benefits Reserves 4,280,000 3,750,000 3,139,000 1,149,000 2,197,000 2,064,000 2,574,000 2,700,394 2,790,356 2,799,046 2,717,399 2,544,810 2,434,376 2,373,578 2,191,308
61 Electric Special Projects Reserve 64,535,000 59,865,000 55,558,000 50,320,000 51,838,000 51,838,000 51,838,000 51,534,944 51,383,460 51,050,127 47,300,127 47,300,127 47,300,127 47,300,127 47,300,127
62 Hydro Stabilization Reserve - - - - - - 17,000,000 11,400,000 2,400,000 - - - - - -
58 Capital Reserve - - - - - - - 2,864,000 2,864,000 2,864,000 2,864,000 2,864,000 2,864,000 2,864,000 2,864,000
59 Rate Stabilization Reserve 47,783,000 54,339,000 66,331,000 74,609,000 69,029,000 70,049,000 14,411,000 5,411,000 - - - - - - -
60 Operations Reserve - - - - - - 22,498,000 22,733,825 22,014,607 22,281,475 24,814,237 27,032,576 30,783,222 34,269,008 35,868,004
61 Unassigned - - - - - - - - - 0 - - - - -
62 TOTAL ENDING RESERVES 120,384,000 124,214,000 129,005,000 132,757,000 128,948,000 129,178,000 112,153,000 100,476,163 85,284,424 82,826,649 81,527,763 83,573,514 87,213,725 90,638,713 92,055,438
6053706
1 FISCAL YEAR FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
2
3 REVENUES
4 Net Sales 82%87%88%89%88%87%88%88%81%83%82%85%85%85%84%
5 Other Revenues and Transfers In 18%13%12%11%12%13%12%12%19%17%18%15%15%15%16%
6 TOTAL REVENUES 100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%
7
8 EXPENSES
9 Commodity Purchases 56%54%46%47%46%54%56%51%46%46%45%47%47%47%46%
10 Operating Expenses
11 Administration
12 Allocated Charges 3%2%2%3%3%3%3%3%2%2%2%2%3%3%3%
13 Rent 2%3%3%3%3%3%3%3%3%3%3%3%4%4%4%
14 Debt Service 6%6%6%7%7%7%6%6%5%5%5%5%5%5%6%
15 Transfers and Other Adjustments 9%9%11%10%13%9%8%8%7%7%7%7%7%7%7%
16 Subtotal, Administration 20%20%22%23%27%23%20%20%18%18%18%19%19%19%19%
17 Resource Management 1%2%2%2%2%3%2%2%2%2%2%2%2%2%2%
18 Operations and Mtc 6%7%8%8%7%8%8%8%8%9%9%9%10%10%10%
19 Engineering (Operating)1%1%1%1%1%1%1%1%1%1%1%1%1%1%1%
20 Customer Service 1%2%2%2%2%2%1%2%1%2%2%2%2%2%2%
21 Allowance for Unspent Budget 0%0%0%0%0%0%0%-1%-1%-1%-1%-1%-1%-1%-1%
22 Subtotal, Operating Expenses 30%32%34%36%39%36%31%33%30%31%30%32%33%33%33%
23 Capital Program Contribution 10%10%13%11%11%7%9%12%17%13%16%10%10%10%10%
24 TOTAL EXPENSES 95%96%93%93%96%97%96%95%92%90%90%89%89%90%90%
25
26 RISK ASSESSMENT DETAIL (SUPPLY FUND)
27 FISCAL YEAR FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
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%176%179%
41
42 RISK ASSESSMENT DETAIL (DISTRIBUTION FUND)
43 FISCAL YEAR FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
44 Distribution Revenue Variance 3,240,845 3,290,258 3,918,697 4,122,469 4,163,694 4,160,651 4,285,471 4,293,497 4,422,302
45 10% CIP Program Contingency 1,271,343 1,698,898 2,765,211 2,205,813 2,664,940 1,586,847 1,632,028 1,678,477 1,726,259
46 Total Risk Asssessment Value 4,512,188 4,989,156 6,683,908 6,328,282 6,828,634 5,747,498 5,917,499 5,971,975 6,148,561
47 Projected Operations Reserve 22,498,000 22,733,825 22,014,607 22,281,475 24,814,237 27,032,576 30,783,222 34,269,008 35,868,004
48 Operations Reserve, % of Risk Value 499%456%329%352%363%470%520%574%583%
49
44 SUPPLY OPERATIONS RESERVE
45 Min (60 days of non-capital expenses)- - - - - - 8,339,587 6,424,305 6,557,102 6,698,857 6,808,081 6,897,553 7,013,278 7,126,792 7,248,481
46 Target (90 days of non-capital expenses)- - - - - - 10,338,923 9,636,457 9,835,653 10,048,285 10,212,121 10,346,329 10,519,917 10,690,188 10,872,721
47 Max (120 days of non-capital expenses)- - - - - - 12,338,259 12,848,609 13,114,204 13,397,714 13,616,162 13,795,105 14,026,555 14,253,584 14,496,961
48
49 DISTRIBUTION OPERATIONS RESERVE
50 Min (60 days of non-capital expenses)- - - - - - 8,339,587 6,424,305 6,557,102 6,698,857 6,808,081 6,897,553 7,013,278 7,126,792 7,248,481
51 Target (90 days of non-capital expenses)- - - - - - 10,338,923 9,636,457 9,835,653 10,048,285 10,212,121 10,346,329 10,519,917 10,690,188 10,872,721
52 Max (120 days of non-capital expenses)- - - - - - 12,338,259 12,848,609 13,114,204 13,397,714 13,616,162 13,795,105 14,026,555 14,253,584 14,496,961
53 Risk Assessment Value 4,512,188 4,989,156 6,683,908 6,328,282 6,828,634 5,747,498 5,917,499 5,971,975 6,148,561
ELECTRIC UTILITY FINANCIAL PLAN
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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)
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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
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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 6 months of budgeted CIP expense
Maximum Level 120 days 12 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 City Council to
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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
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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.
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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
160330 jb 6053723
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), E-14 (Street Lights), and E-16 (Unmetered Electrical
Service) and Repealing Rate Schedules E-18 (Municipal Electric Service) and E-
18-G (Municipal Green Power Electric Service)
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.
B. On ____, 2016, the City Council heard and approved the proposed rate increase
at a noticed public hearing.
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 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, 2016.
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, 2016.
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, 2016.
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, 2016.
CMR #6932: ATTACHMENT D
Attachment D
NOT YET APPROVED
160330 jb 6053723
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
read as attached and incorporated. Utility Rate Schedule E-4-G, as amended, shall become
effective July 1, 2016.
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, 2016.
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, 2016.
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, as amended, shall become
effective July 1, 2016.
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, 2016.
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, 2016.
SECTION 11. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-16 (Unmetered Electrical Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule E-16, as amended, shall become effective July 1, 2016.
SECTION 12. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-18 (Municipal Electric Service) is hereby repealed effective July 1, 2016.
SECTION 13. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule E-18-G (Municipal Green Power Electric Service) is hereby repealed effective
July 1, 2016.
SECTION 14. The City Council finds as follows:
a. Revenue derived from the electric rates approved by this resolution does not
exceed the funds required to provide electric service.
Attachment D
NOT YET APPROVED
160330 jb 6053723
b. 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.
c. 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.
SECTION 15. 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
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 7-1-2009
Supersedes Sheet No E-1-1 dated 11-1-2008 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 $0.05448
$0.05883
$0.03755
$0.04795
$0.00321
$0.00351
$0.09524
$0.11029
Tier 2 usage
100%-200% ofAny
usage over Tier 1
0.07654
0.09728
0.05045
0.06822
0.00321
0.00351
0.13020
0.16901
Tier 3 usage
Over 200% of Tier 1
0.10349
0.06729
0.00321
0.17399
Minimum Bill ($/day)
0.3067
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. Calculation of Usage Tiers
Tier 1 electricity usage shall be calculated and billed based upon a level of 10 11 kWh
per day, prorated by meter reading days of service. As an example, for a 30-day bill, the
Tier 1 level would be 300 330 kWh. For further discussion of bill calculation and
proration, refer to Rule and Regulation 11.
{End}
SMALL COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2009
Supersedes Sheet No E-2-1 dated 7-1-200911-1-2008 Sheet No E-2-1
A. APPLICABILITY:
This schedule applies to non-demand metered electric service for small commercial 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
$0.08219
$0.09094
$0.05505
$0.07400
$0.00321
$0.00351
$0.14045
$0.16845
Winter Period
0.07406
0.06417
0.04934
0.04677
0.00321
0.00351
0.12661
0.11445
Minimum Bill ($/day)
0.7657
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.
SMALL COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2009
Supersedes Sheet No E-2-2 dated 7-1-200911-1-2008 Sheet No E-2-2
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 in case 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.
{End}
SMALL COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-2-G-1 dated 7-1-20149-1-2013 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 commercial 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
$0.09094
$0.08219
$0.07400
$0.05505
$0.00351
$0.00321 $0.0020
$0.14245
$0.17045
Winter Period
0.06417
0.07406
0.04677
0.04934
0.00351
0.00321 0.0020
0.12861
$0.11645
Minimum Bill ($/day)
0.7657
2. 1000 kWh Block Purchase Option:
Per kilowatt-hour (kWh) Commodity Distribution
Public
Benefits
Total
Summer Period
$0.09094
$0.08219
$0.07400
$0.05505
$0.00351
$0.00321
$0.16845
$0.14045
Winter Period
0.06417
0.07406
0.04677
0.04934
0.00351
0.00321
0.11445
0.12661
Minimum Bill ($/day) 0.7657
Palo Alto Green Charge (per 1000 kWh block) $2.00
SMALL COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-2-G-2 dated 7-1-20149-1-2013 Sheet No E-2-G-2
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.
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
SMALL COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-2-G-3 dated 7-1-20149-1-2013 Sheet No E-2-G-3
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 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.
{End}
MEDIUM COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-4-1 dated 2-5-20137-1-2009 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) $5.31 $2.53 $15.23 $17.14 $20.54 $19.68
Energy Charge (per kWh) 0.06083 0.08218 0.01767 0.01661 0.00321 0.00351 0.08171 0.10229
Winter Period
Demand Charge (per kW) $4.80 $1.55 $9.04 $12.49 $13.84 $14.04
Energy Charge (per kWh) 0.05281 0.06037 0.01716 0.01661 0.00321 0.00351 0.07318 0.08049
Minimum Bill ($/day) 16.3216
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.
MEDIUM COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-4-2 dated 2-5-20137-1-2009 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 in case 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. 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.
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
MEDIUM COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-4-3 dated 2-5-20137-1-2009 Sheet No E-4-3
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
allowed 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. The City retains the right to
change its line voltage at any time after providing reasonable advance notice to any
customer receiving a discount 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.
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.
MEDIUM COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-4-4 dated 2-5-20137-1-2009 Sheet No E-4-4
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 COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-4-TOU-1 dated 2-5-20137-1-2009 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 $1.52$3.12 $5.91$8.96 $7.42$12.08
Mid-Peak 0.541.99 5.915.65 6.447.64
Off-Peak 0.541.13 5.913.26 6.444.39
Energy Charge (per kWh)
Peak
$0.08819
$0.10963
$0.01661
$0.03242
$0.00351
$0.00321
$0.10830
$0.14526
Mid-Peak
0.08367
0.05617
0.01661
0.01623
0.00351
0.00321
0.10378
0.07561
Off-Peak
0.07332
0.04298
0.01661
0.01218
0.00351
0.00321
0.09344
0.05837
Winter Period
Demand Charge (per kW)
Peak $2.77$0.87 $5.10$6.96 $7.87$7.83
Off-Peak 1.490.87 2.946.96 4.437.83
MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-4-TOU-2 dated 2-5-20137-1-2009 Sheet No E-4-TOU-2
Commodity Distribution
Public
Benefits Total
Energy Charge (per kWh)
Peak
$0.07003
$0.06566
$0.02296
$0.01661
$0.00321
$0.00351
$0.09620
$0.08577
Off-Peak
0.04088
0.06167
0.01313
0.01661
$0.00351
0.00321
0.05722
0.08178
Minimum Bill ($/day) 16.3216
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. 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
MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-4-TOU-3 dated 2-5-20137-1-2009 Sheet No E-4-TOU-3
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.
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
MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-4-TOU-4 dated 2-5-20137-1-2009 Sheet No E-4-TOU-4
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
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
allowed 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. The City retains the right to
change its line voltage at any time after providing reasonable advance notice to any
Customer receiving a discount 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.
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.
MEDIUM COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-4 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-4-TOU-5 dated 2-5-20137-1-2009 Sheet No E-4-TOU-5
(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
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 COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-4-G-1 dated 7-1-20149-10-2013 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)
$2.53 $5.31
$17.14 $15.23
$19.68 $20.54
Energy Charge (per kWh)
0.08218 0.06083
0.01661 0.01767
0.00351 0.00321 0.0020
0.10429 0.08371
Winter Period
Demand Charge (per kW)
$1.55 $4.80
$12.49 $9.04
$14.04 $13.84
Energy Charge (per kWh)
0.06037 0.05281
0.01661 0.01716
0.00351 0.00321 0.0020
0.08249 0.07518
Minimum Bill ($/day) 16.3216
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-4-G-2 dated 7-1-20149-10-2013 Sheet No E-4-G-2
2. 1000 kWh Block Purchase Option:
Commodity Distribution
Public
Benefits Total
Summer Period
Demand Charge (per kW)
$2.53
$5.31
$17.14
$15.23
$19.68
$20.54
Energy Charge (per kWh)
0.08218
0.06083
0.01661
0.01767
0.00351
0.00321
0.10229
0.08371
Palo Alto Green Charge (per 1000 kWh block) $2.00
Winter Period
Demand Charge (per kW)
$1.55
$4.80
$12.49
$9.04
$14.04
$13.84
Energy Charge (per kWh)
0.06037
0.05281
0.01661
0.01716
0.00351
0.00321
0.08049
0.07518
Palo Alto Green Charge (per 1000 kWh block) $2.00
Minimum Bill ($/day) 16.3216
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
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-4-G-3 dated 7-1-20149-10-2013 Sheet No E-4-G-3
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
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 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. 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
MEDIUM COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-4-G-4 dated 7-1-20149-10-2013 Sheet No E-4-G-4
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.
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
allowed 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. The City retains the right to
change its line voltage at any time after providing reasonable advance notice to any
Customer receiving a discount 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.
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 COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-4-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-4-G-5 dated 7-1-20149-10-2013 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}
LARGE COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-7-1 dated 2-5-20137-1-2009 Sheet No E-7-1
A. APPLICABILITY:
This schedule applies to Demand metered secondary Service for commercial 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) $6.42 $2.50 $12.55 $15.85 $18.97 $18.34
Energy Charge (kWh) 0.05662 0.08311 0.01825 0.00087 0.00321 0.00351 0.07808 0.08749
Winter Period
Demand Charge (kW) $5.50 $1.53 $6.04 $14.11 $11.54 $15.65
Energy Charge (kWh) 0.04990 0.05804 0.01898 0.00087 0.00321 0.00351 0.07209 0.06242
Minimum Bill ($/day) 48.5054
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 COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-7-2 dated 2-5-20137-1-2009 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 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.
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
LARGE COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-7-3 dated 2-5-20137-1-2009 Sheet No E-7-3
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
allowed 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. The City retains the right to
change its line voltage at any time after providing reasonable advance notice to any
Customer receiving a discount 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.
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-
LARGE COMMERCIAL ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-7-4 dated 2-5-20137-1-2009 Sheet No E-7-4
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
Section 2827(b)(4) , as amended.
(3) The applicability of these exemptions shall be determined at the discretion of
the Utilities Director.
{End}
LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-7-TOU-1 dated 2-5-20137-1-2009 Sheet No E-7-TOU-1
A. APPLICABILITY:
This voluntary rate schedule applies to Demand metered secondary Service for commercial
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 $4.24 $1.48 $8.25 $5.33 $12.49 $6.80
Mid-Peak 2.06 0.51 4.13 5.33 6.19 5.84
Off-Peak 1.17 0.51 2.06 5.33 3.23 5.84
Energy Charge (per kWh)
Peak $0.07029 $0.09267 $0.02296 $0.00087 $0.00321 $0.00351 $0.09646 $0.09705
Mid-Peak 0.05867 0.08792 0.01901 0.00087 0.00321 0.00351 0.08089 0.09230
Off-Peak 0.04870 0.07705 0.01567 0.00087 0.00321 0.00351 0.06758 0.08143
Winter Period
Demand Charge (per kW)
Peak $3.04 $0.78 $3.38 $7.15 $6.42 $7.92
Off-Peak 1.59 0.78 1.68 7.15 3.27 7.92
LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-7-TOU-2 dated 2-5-20137-1-2009 Sheet No E-7-TOU-2
Energy Charge (per kWh)
Peak
$0.05617
$0.06009
$0.02142
$0.00087
$0.00321
$0.00351
$0.08080
$0.06447
Off-Peak
0.04663
0.05643
0.01767
0.00087
0.00321
0.00351
0.06751
0.06081
Minimum Bill ($/day) 48.5054
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
LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-7-TOU-3 dated 2-5-20137-1-2009 Sheet No E-7-TOU-3
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.
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. 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
LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-7-TOU-4 dated 2-5-20137-1-2009 Sheet No E-7-TOU-4
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.
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
allowed 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. The City retains the right to
change its line voltage at any time after providing reasonable advance notice to any
Customer receiving a discount 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
LARGE COMMERCIAL ELECTRIC TIME OF USE SERVICE
UTILITY RATE SCHEDULE E-7 TOU
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20162-5-2013
Supersedes Sheet No E-7-TOU-5 dated 2-5-20137-1-2009 Sheet No E-7-TOU-5
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.
(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}
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-7-G-1 dated 7-1-20149-10-2013 Sheet No E-7-G-1
A. APPLICABILITY:
This schedule applies to Demand Metered Service for large commercial 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)
$2.50 $6.42
$15.85 $12.55
$18.34 $18.97
Energy Charge (per kWh)
0.08311 0.05562
0.00087 0.01825
0.00351 0.00321 0.0020
0.08949 0.07908
Winter Period
Demand Charge (per kW)
$1.53 $5.50
$14.11 $6.04
$15.65 $11.54
Energy Charge (per kWh)
0.05804 0.04990
0.00087 0.01898
0.00351 0.00321 0.0020
0.06442 0.07409
Minimum Bill ($/day) 48.5054
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-7-G-2 dated 7-1-20149-10-2013 Sheet No E-7-G-2
2. 1000 kWh Block Purchase Option:
Commodity Distribution
Public
Benefits Total
Summer Period
Demand Charge (per kW)
$2.50 $6.42
$15.85 $12.55
$18.34 $18.97
Energy Charge (per kWh)
0.08311 0.05562
0.00087 0.01825
0.00351 0.00321
0.08749 0.07708
Palo Alto Green Charge (per 1000 kWh block) $2.00
Winter Period
Demand Charge (per kW)
$1.53
$5.50
$14.11
$6.04
$15.65
$11.54
Energy Charge (per kWh)
0.05804
0.04990
0.00087
0.01898
0.00351
0.00321
0.06242
0.07209
Palo Alto Green Charge (per 1000 kWh block) $2.00
Minimum Bill ($/day) 48.5054
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
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-7-G-3 dated 7-1-20149-10-2013 Sheet No E-7-G-3
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
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 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%.
LARGE COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-7-G-4 dated 7-1-20149-10-2013 Sheet No E-7-G-4
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. 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
allowed; 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. The City retains the
right to change its line voltage at any time after providing reasonable advance notice to
any Customer receiving a discount 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 COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-7-G-5 dated 7-1-20149-10-2013 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 COMMERCIAL GREEN POWER ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-7-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2014
Supersedes Sheet No E-7-G-6 dated 7-1-20149-10-2013 Sheet No E-7-G-6
{End}
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-01-2009
Supersedes Sheet No. E-14-1 dated 7-01-20097-01-2008 Sheet No. E-14-1
A. APPLICABILITY: This schedule applies to all street and highway lighting installations owned by any governmental
agency other than the City of Palo Alto.
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.
kWh's Per Month
Burning Schedule: All Night/Midnight All Night Midnight
Lamp Rating:
Mercury-Vapor Lamps
100 watts 42/20 $ 12.08 $ 8.92
175 watts 68/35 14.41 11.23
400 watts 154/71 29.66 22.87
High Pressure Sodium Vapor Lamps
120 volts
70 watts 29/15 10.59 7.43
100 watts 41/20 14.19 10.36
150 watts 60/30 18.43 15.48
240 volts
70 watts 34/17 11.85 8.92
100 watts 49/25 15.488.59 11.23
150 watts 70/35 18.43 12.72
200 watts 90/45 20.5515.87 16.31
250 watts 110/55 23.3219.50 16.51
310 watts 134/167 27.3224.13 21.60
400 watts 167/84 33.4731.07 24.78 Fluorescent Lamps
40 watts 15/8 4.46 3.60
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
(Continued)
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-2016
Supersedes Sheet No. E-14-2 dated 7-1-2009 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.
kWh's Per Month
Burning Schedule: All Night/Midnight All Night Midnight
Lamp Rating:
Mercury-Vapor Lamps
100 watts 42/20 $ 13.56 $ 10.36
175 watts 68/35 16.31 12.91
250 watts 97/49 20.32 15.70
400 watts 154/71 30.2932.58 23.32
Incandescent Lamps
189 watts (2,500 L) 65/32 14.41 11.46
295 watts (4,000 L) 101/5 18.43 14.41
405 watts (6,000 L) 139/70 23.32 19.27
620 watts (10,000 L) 212/106 32.42 26.88
Fluorescent Lamps
25 watts 12/6 5.30 4.04
40 watts 15/8 5.49 4.46
55 watts 18/9 6.36 4.68
High Pressure Sodium Vapor Lamps
120 volts
70 watts 29/15 11.02 7.84
100 watts 41/20 14.82 10.81
150 watts 60/30 19.06 15.91
240 volts
70 watts 34/17 12.2928.61 9.33
100 watts 49/25 16.0930.79 11.85
150 watts 70/35 19.0634.43 13.35
200 watts 90/45 21.18 16.94
250 watts 110/55 23.7441.70 17.38
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
(Continued)
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-2016
Supersedes Sheet No. E-14-2 dated 7-1-2009 Sheet No. E-14-2
Light Emitting Diode (LED) Lamps
70 watts-equivalent 23.79
100 watts-equivalent 25.44
150 watts-equivalent 26.96
250 watts 31.12
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
(Continued)
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-01-2009
Supersedes Sheet No. E-14-2 dated 7-1-20097-01-2008 Sheet No. E-14-2
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
(Continued)
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2009
Supersedes Sheet No. E-14-4 dated 7-1-20097-1-2008 Sheet No. E-14-4
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 for all-night service and 2,050 hours per year for
midnight service.
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.
STREET LIGHTS
UTILITY RATE SCHEDULE E-14
(Continued)
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-20167-1-2009
Supersedes Sheet No. E-14-4 dated 7-1-20097-1-2008 Sheet No. E-14-4
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.
6. Multilamp Electroliers: The above charges are made on per-lamp basis. For posts
supporting one or more lamps, where the lamps are less than nine feet apart, the above
charges for Class C will be reduced by 6 percent (6%) computed to the nearest whole cent,
for all lamps other than the first one.
7. Operating Schedules Other Than All-Night and Midnight: Rates for regular operating
schedules other than all-night and midnight will be the midnight rates plus or minus
one-eleventh of the difference between the midnight and the all-night rate, computed to the
nearest whole cent, for each half hour per night more or less than midnight service. This
adjustment will apply only to lamps on regular operating schedules which do not exceed
4,500 hours per year.
8. Street Light Lamps, Standard and Nonstandard Ratings: The rates for incandescent lamps
under Class A are applicable for service to regular street lamps only and must be increased
by 6 percent, computed to the nearest whole cent, for service to group-replacement street
lamps. The rates under Class C are applicable to both regular and group-replacement street
lamps.
9. Continuous Operation: The rate for continuous 24-hour operation under Class A service will
be twice the all-night rate.
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}
UNMETERED ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-16
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-201610-16-2012
Supersedes Sheet No.E-16-3 dated 10-16-20127-26-2011 Sheet No. E-16- 1
A. APPLICABILITY:
This rate schedule is applicable under the terms and conditions of the City of Palo Alto
Utilities Department to Customers who contract with the City for unmetered electric
service for billboards, unmetered telephone services, telephone booths, railroad signals,
cathodic protection units, traffic cameras, wireless antenna and related equipment,
community antenna television and video systems, cable TV power supplies, and
automatic irrigation systems and also applies to other miscellaneous Electric Utility fees
to various public agencies and private entities.
B. TERRITORY:
Within the incorporated limits of the City of Palo Alto and land owned or leased by the City.
C. NET MONTHLY BILL:
1. Customer Charge: ............ $9.00 per month
2. Energy Charge:
(for all kWh supplied) using Electric Rate Schedule E2 plus all applicable riders
3. Minimum Charge:
Minimum monthly charge will be the Customer Charge.
D. DETERMINATION OF ENERGY REQUIREMENTS:
a. Initial Inventory
Customer shall enter into a contract for service under this Schedule and provide a written
inventory of all equipment at each of service requested, including the type and nameplate
rating for each piece of equipment. The billing energy for each point of service will be
determined by the Utilities Electric Engineering Division estimation of the kWh usage
based on the type, rating and quantity of the equipment provided by the Customer.
Monthly bill will be based on the following calculations:
1. Total Wattage.
2. Total Wattage times estimated annual operating hours as set in the contract equals
annual watt hours.
3. Annual watt hours divided by 1000 hours equals annual kilowatt hours (kWh)
UNMETERED ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-16
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-201610-16-2012
Supersedes Sheet No.E-16-3 dated 10-16-20127-26-2011 Sheet No. E-16- 2
4. Annual kWh divided by twelve (12) months equal monthly kWh.
5. Monthly kWh times current rate per kWh = monthly bill for each unmetered
service location or equipment.
b. Updating Inventory
Customer will update its inventory by informing the Utilities Electric Engineering
Division in writing of changes in type, rating and/or quantity of equipment as such
changes occur, and billings will be adjusted accordingly. Upon Utilities Electric
Engineering Division request, but no later than the one year anniversary of the date on
which Customer first takes service, Customer shall provide an updated inventory of all
equipment at each point of service.
c. Test Metering
The Utilities Electric Engineering Division may, at its discretion, test meter the load at
various types and ratings of the Customer’s equipment to the extent necessary to verify
the estimated kWh usage used for billing purpose and, where dictated by such test
metering, Utilities Electric Engineering Division will make prospective adjustments in
estimated usage for subsequent billing purposes; however, Utilities shall be under no
obligation to test meter- the load of Customer’s equipment. Utilities’ decision not to test
meter the load of Customer’s equipment shall not release Customer from the obligation to
provide to Utilities Electric Engineering Division, and to update, annually as provided in
section b, an accurate inventory of the types, rating and quantities of equipment upon
which billing is based.
d. Inspection
The Utilities Electric Engineering Division shall endeavor to inspect the equipment at
each point of service annually as close to the anniversary date of the contract as is
practical, and make prospective adjustments in billing as indicated by such inspections;
however, Utilities shall be under no obligation to conduct such inspections for the
purpose of determining accuracy of billing or otherwise. Utilities decisions not to
conduct such inspections shall not release Customer from the obligation to provide to
Utilities Electric Engineering Division, and to update, an accurate inventory of the types,
rating and quantities of equipment upon which billing is based.
e. Billing for Service
As the service described in this schedule is unmetered, Customer agrees to pay amounts
billed in accordance with the current inventory, regardless of whether any of the
installations of the Customer’s equipment were electrically operable during the period in
UNMETERED ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-16
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-201610-16-2012
Supersedes Sheet No.E-16-3 dated 10-16-20127-26-2011 Sheet No. E-16- 3
question and regardless of the cause of such equipment failure to operate.
E. MISCELLANEOUS RATES:
Service Description Rate *
1. Traffic Signal maintenance and energy costs
(A) Controller $522.26 ea
(B) 8" Lamp (LED) $1.85 ea
(C) 12" & PVH Lamp (LED) $2.16 ea
(D) Pedestrian Head (LED) $5.58 ea
(E) Vehicle, System and
Bike Sensor Loop $43.22 ea
21. License Fee for Electric Conduit Usage
(A) Exclusive use $1.94/ft/yr
(B) Non-Exclusive use $0.97/ft/yr
32. Processing Fee for Electric Conduit Usage Actual Cost
43. License Fee for Utility Pole Attachments
(A) 1 ft. of usable space $29.59/pole/yr
(B) 2 ft. of usable space $32.39/pole/yr
(C) 3 ft. of usable space $35.18/pole/yr
(D) 4 ft. of usable space $37.98/pole/yr
54. Processing Fee for Utility Pole Attachments $55.00/pole
65. License Fee for mounting communication equipment
including distributed antenna systems on utility poles $270.00/pole/yr
* Rates are monthly unless otherwise indicated.
F. NOTES:
The fees set forth in Section E.1 through E.65, inclusive, are subject to adjustment annually in
accordance with fluctuations in the Consumer Price Index (CPI), if any. The base for computing
UNMETERED ELECTRIC SERVICE
UTILITY RATE SCHEDULE E-16
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-201610-16-2012
Supersedes Sheet No.E-16-3 dated 10-16-20127-26-2011 Sheet No. E-16- 4
the adjustment is the Consumer Price Index for All Urban Consumers (CPI-U) for the San
Francisco-Oakland-San Jose MSA, which is published by the U.S. Department of Labor,
Bureau of Labor Statistics for the month of December of a base year, which falls within the
year in which a master license agreement is signed by the City and the licensee. The adjustment
shall be calculated, if there is an increase or decrease between December of a base year (when
the rate(s) is/are first applicable) and December of any subsequent base year.
{End}
Attachment A
*NOT YET APPROVED *
6053681
Resolution No. _________
Resolution of the Council of the City of Palo Alto Approving the
FY 2017 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 2017 Gas Utility Financial Plan.
SECTION 2. The Council hereby approves the transfer of $1.5 million in FY 2016 from
the Rate Stabilization Reserve to the Operations Reserve, as described in the FY 2017 Gas Utility
Financial Plan approved via this resolution.
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:
___________________________ ___________________________
CMR #6932: ATTACHMENT E
Attachment A
* NOT YET APPROVED *
6053681
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ___________________________
Senior Deputy City Attorney City Manager
___________________________
Director of Utilities
___________________________
Director of Administrative Services
FY 2017 GAS
UTILITY
FINANCIAL PLAN
FY 2017 TO FY 2026
GAS UTILITY FINANCIAL PLAN
April 12, 2016 2 | Page
GAS UTILITY FINANCIAL PLAN
FY 2017 TO FY 2026
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 2017 Rate and Reserve Proposals ......................................................... 6
Section 3A: Rate Design ............................................................................................................... 6
Section 3B: Current and Proposed Rates ..................................................................................... 6
Section 3C: Bill impact of Proposed Rate Changes ...................................................................... 8
Section 3D: Proposed Reserve Transfers ..................................................................................... 8
Section 4: Utility Overview ...................................................................................................... 9
Section 4A: Gas Utility History ..................................................................................................... 9
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 2011 to FY 2015 Cost and Revenue Trends ........................................................ 16
Section 5B: FY 2015 Results ....................................................................................................... 17
Section 5C: FY 2016 Projections ................................................................................................. 18
Section 5D: FY 2017‐FY 2026 Projections .................................................................................. 18
Section 5E: Risk Assessment and Reserves Adequacy ............................................................... 19
GAS UTILITY FINANCIAL PLAN
April 12, 2016 3 | Page
Section 5F: Alternate Scenarios ................................................................................................. 21
Section 5G: Long‐Term Outlook ................................................................................................. 22
Section 6: Details and Assumptions ....................................................................................... 24
Section 6A: Gas Purchase Costs ................................................................................................. 24
Section 6B: Operations .............................................................................................................. 25
Section 6C: Capital Improvement Program (CIP) ....................................................................... 26
Section 6D: Debt Service ............................................................................................................ 28
Section 6E: Equity Transfer ........................................................................................................ 29
Section 6F: Revenues ................................................................................................................. 29
Section 6G: Communications Plan ............................................................................................. 30
Appendices ............................................................................................................................ 32
Appendix A: Gas Financial Forecast Detail ................................................................................ 33
Appendix B: Gas Utility Capital Improvement Program (CIP) Detail ......................................... 34
Appendix C: Gas Utility Reserves Management Practices ......................................................... 36
Appendix D: Description of Gas Utility Cost Categories ............................................................ 40
Appendix E: Gas Utility Communications Samples .................................................................... 41
GAS UTILITY FINANCIAL PLAN
April 12, 2016 4 | Page
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
GAS UTILITY FINANCIAL PLAN
April 12, 2016 5 | Page
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 2017 through FY 2026, non‐commodity costs are projected to increase at roughly 3.5%
per year. In the short term, some of these costs are related to the cross‐bore inspection
program, as well as cap‐and‐trade allowance purchase costs. In addition, capital improvement
program (CIP) costs have increased as the economy has improved, and CPAU is also planning
new gas main replacement projects after completing a large multi‐year gas main replacement
project. The Gas Utility expenses over the period of this financial plan are shown in Table 1
below.
Table 1: Gas Utility Expenses for FY 2015 to FY 2026 (Thousand $’s)
Expenses
($000)
FY
2015
(act.)
FY
2016
(est.)
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
Commodity costs 10,519 9,258 12,337 13,293 13,770 14,338 14,834 15,380 16,013 16,600 17,178 17,613
Operations 18,529 19,738 21,792 22,443 23,541 23,548 24,535 25,553 26,631 27,755 28,929 30,257
Capital Projects 1,832 6,889 6,305 5,985 6,115 6,301 6,488 6,680 6,879 7,083 7,293 7,509
TOTAL 30,881 35,886 40,434 41,721 43,426 44,188 45,857 47,613 49,522 51,438 53,400 55,380
To ensure that revenues cover these rising costs, the financial plan includes the rate trajectory
shown in Table 2. There was no rate increase in FY 2016 since new gas main replacement
projects were not added in FY 2014 and FY 2015 in order to complete a multi‐year project to
replace the last of the ABS plastic mains in Palo Alto. An 8% increase is projected for FY 2017,
followed by 9% and 7% increases for FY 2018 and FY 2019. An 8% increase in FY 2017 is
equivalent to $2.52 per month for the median residential customer’s monthly gas bill, based on
commodity prices as of February 2016.
Table 2: Projected Gas Rate Trajectory for FY 2017 to FY 2026
Projection FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
Current Financial Plan 8% 9% 7% 4% 1% 1% 1% 1% 1% 1%
FY 2016 Financial Plan 7% 4% 4% 4% 3% 3% 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 2017. 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.
GAS UTILITY FINANCIAL PLAN
April 12, 2016 6 | Page
Table 3: Transfers To/(From) Reserves for FY 2016 to FY 2026 ($000)
Reserve FY 2016 FY 2017 FY 2018 to FY 2026
Rate Stabilization (1,531) (5,275) ‐
Operations 1,531 5,275 ‐
SECTION 2B: SUMMARY OF PROPOSED ACTIONS
Staff proposes the following actions for the Gas Utility in FY 2016:
1. Amend the $3.4 million transfer proposed in the FY 2016 Gas Financial Plan to $1.5
million, based on ending Operations Reserve levels.
Staff proposes the following actions for the Gas Utility in FY 2017:
2. Increase rates as shown in Section 3B: Current and Proposed Rates. These changes are
projected to increase rates by 8%, assuming monthly commodity prices are constant.
However, should commodity prices rise, relative bill increases will be higher, and
conversely lower if commodity prices should fall.
3. Transfer $5.3 million from the Rate Stabilization Reserve to the Operations Reserve. See
Section 3B: Current and Proposed Rates for more details.
SECTION 3: DETAIL OF FY 2017 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. Staff tentatively plans
to review this cost of service study in the next year or two unless any major changes occur to
the utility’s operations or customer base that would necessitate an earlier study. Before any
such update, staff will review current rates and the scope of the study with the UAC and Council
to determine UAC and Council policy priorities.
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 prices2. 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 program3. This component will change depending on
the cost of allowances and gas demand. At the same time, two bill components (Local
1 Staff Report 2812, 5/17/ 2012 http://archive.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=31395
2 Staff Report 2812, 5/17/2012: http://archive.cityofpaloalto.org/civica/filebank/blobdload.asp?BlobID=31395
3 Staff Report 5397, 1/26/2015: https://www.cityofpaloalto.org/civicax/filebank/documents/45537
GAS UTILITY FINANCIAL PLAN
April 12, 2016 7 | Page
transportation and Administration) were collapsed into the Distribution rate to streamline bill
presentation.
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 schedules 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 and proposed monthly service charges for all rate schedules. Table 9
shows the consumption charges related to distribution charges. As mentioned earlier,
commodity charges change monthly. Some recent commodity price history is discussed in
Section 6A: Gas Purchase Costs.
Table 4: Current and Proposed Monthly Service Charges
Rate Schedule
Monthly Service Charge ($/month) Change
Current (7/1/12) Proposed (7/1/16) $/mo %
G‐1 (Residential) $9.88 $10.32 $0.44 4.5%
G‐2 (Small Commercial) $74.86 $78.23 $3.37 4.5%
G‐3 (Large Commercial) $361.18 $377.43 $16.25 4.5%
G‐10 (CNG) $50.65 $52.93 $2.28 4.5%
Table 5: Current and Proposed Gas Distribution Charges
Current
(7/1/12)
Proposed
(7/1/16)
Change
$/Therm %
G‐1 (Residential)
Tier 1 Rates 0.4392 0.5021 0.0629 14.3%
Tier 2 Rates 0.9546 1.0407 0.0861 9.0%
G‐2 (Residential Master‐Metered and Small Commercial)
Uniform Rate 0.6147 0.6855 0.0708 11.5%
G‐3 (Large Commercial)
Uniform Rate 0.6071 0.6775 0.0704 11.5%
G‐10 (Compressed Natural Gas)
Uniform Rate 0.0509 0.0963 0.0454 89.2%
GAS UTILITY FINANCIAL PLAN
April 12, 2016 8 | Page
SECTION 3C: BILL IMPACT OF PROPOSED RATE CHANGES
Table 6 shows the impact of the proposed July 1, 2016 rate changes on the median residential
bill. The average increase is roughly 8% based on March 2016 commodity rates, but some
customers may see slightly higher or lower increases due to slight changes in the composition
of the utility’s costs, as well as prevailing market prices.
Table 6: Impact of Proposed Gas Rate Changes on Residential Bills
Usage
(Therms/month)
Bill under
Current Rates
Bill under
Proposed Rates
Change
$/mo. %
Winter (Using March 2016 commodity prices)
30 $ 29.67 $ 32.00 $ 2.33 8%
54 (median) 45.40 49.34 3.84 8%
80 72.96 78.89 5.94 8%
150 155.21 167.17 11.96 8%
Summer (Using July 2015 commodity prices)
10 $ 17.70 $ 18.77 $ 1.07 6%
18 (median) 23.95 25.52 1.57 7%
30 38.49 41.05 2.56 7%
45 57.95 61.80 3.85 7%
Table 7 shows the impact of the proposed July 1, 2016 rate changes on various representative
commercial customer bills.
Table 7: Impact of Proposed Gas Rate Changes on Commercial Bills
(Using March 2016 commodity prices)
Usage
(Therms/month)
Bill under Current
Rates
Bill under
Proposed Rates
Change
%
G‐2 (Residential Master‐Metered and Small Commercial)
500 492 531 8%
5,000 4,250 4,608 8%
10,000 8,426 9,137 8%
G‐3 (Large Commercial)
25,000 21,049 22,825 8%
50,000 41,736 45,272 8%
SECTION 3D: PROPOSED RESERVE TRANSFERS
In the FY 2016 Financial Plan, several transfers between reserves were discussed for FY 2016.
CIP related funds were transferred out of the Reappropriations Replacement into the CIP
Reserve, and $3.4 million was proposed to be transferred from the Rate Stabilization Reserve
into the Operations Reserve.
GAS UTILITY FINANCIAL PLAN
April 12, 2016 9 | Page
As lower expenses in FY 2015 resulted in higher ending reserve balances than initially projected,
staff recommends reducing the $3.4 million transfer from the Rate Stabilization Reserve in FY
2016 to $1.5 million, and proposes transferring $5.3 million in FY 2017. For FY 2016, staff
proposes a $3.4 million transfer from the Rate Stabilization Reserve. This transfer will exhaust
the Rate Stabilization Reserve, as planned for and discussed in Section 5E: FY 2017‐FY 2026
ProjectionsSection 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 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
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
GAS UTILITY FINANCIAL PLAN
April 12, 2016 10 | Page
polyethylene (PE) mains over the course of the following 36 years.4 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.5
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,”6 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.
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,
4 Staff Report CMR:183:90. Infrastructure Review and Update, March 1, 1990
5 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
6 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
GAS UTILITY FINANCIAL PLAN
April 12, 2016 11 | Page
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 spas7. Non‐residential customers use gas for
space and water heating (73% of gas consumed), cooking (20%), and industrial processes (6%).8
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 a 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. The cost of
purchased gas and PG&E local transportation service accounts for roughly one third of the
utility’s expenditures.
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 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, $3 million is budgeted for the cross‐bore program over the next three years.
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.
7 http://energyalmanac.ca.gov/naturalgas/overview.html
8 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.
GAS UTILITY FINANCIAL PLAN
April 12, 2016 12 | Page
Figure 2: Cost Structure (FY 2015)
60%
34%
6%
Operations
Gas Purchases
Capital
Figure 1: Revenue Structure (FY 2015)
95%
5%
Sales of Gas
Other Revenue
SECTION 4D: COST STRUCTURE AND REVENUE SOURCES
As shown in Figure 1, the Gas
Utility receives 95% 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 2015,
gas purchase costs accounted for
roughly 34% of the Gas Utility’s
costs. This percentage can vary
widely from year to year, as this
cost is based upon market
purchases. Operational costs
represented roughly 60%, and
capital investment was
responsible for the remaining 6%.
The percentages for FY 2015 are
skewed by the fact that CIP,
which is normally about 20% of
expenses, was reduced in FY 2014
and FY 2015 to allow for a backlog
of projects to be completed.
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.
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
GAS UTILITY FINANCIAL PLAN
April 12, 2016 13 | Page
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 8 presents winter and summer residential bills for Palo Alto and PG&E at several usage
levels for commodity rates in effect as of July 2015 (to illustrate a summer month bill) and
March 2016 (to illustrate a winter month bill). The annual gas bill for the median residential
customer for calendar year 2015 was $420.86, about 15% lower than the annual bill for a PG&E
customer with the same consumption. PG&E’s distribution rates for gas have increased
substantially to collect for needed system improvements for pipeline safety and maintenance.
The bill calculations for PG&E customers are based on PG&E Climate Zone X, an area which
includes the surrounding communities.
Table 8: Residential Monthly Natural Gas Bill Comparison ($/month)
Season
Usage
(therms) Palo Alto PG&E Zone X
%
Difference
Winter
(March 2016)
30 31.25 40.23 ‐22%
(Median) 54 48.34 72.42 ‐33%
80 77.16 117.37 ‐34%
150 163.10 245.51 ‐34%
Summer
(Jul 2015)
10 17.75 12.47 42%
(Median) 18 24.04 22.60 6%
30 38.64 43.44 ‐11%
45 58.18 69.50 ‐16%
Table 9 shows the monthly gas bills for commercial customers for various usage levels for rates
in effect as of March 1, 2016. Bills for CPAU customers at the usage levels shown are around 9%
lower for smaller commercial customers and 4 to 17% higher for larger 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 customers were 27% to 44% higher than for
PG&E customers. This is primarily attributable to PG&E’s increased distribution rates as the
GAS UTILITY FINANCIAL PLAN
April 12, 2016 14 | Page
commodity rates for CPAU and PG&E are very similar, both being based on spot market gas
prices.
Table 9: Commercial Monthly Average Gas Bill Comparison (for Rates in Effect Feb. 1, 2016)
Usage (therms/mo)
Gas Bill ($/month) %
Difference Palo Alto PG&E
500 518 572 ‐9%
5,000 4,510 4,953 ‐9%
10,000 9,231 8,859 4%
50,000 44,711 38,104 17%
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 steadily fallen for the last two years.
Figure 3: Gas Commodity Rates from July 2012 through March 2016
GAS UTILITY FINANCIAL PLAN
April 12, 2016 15 | Page
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 FY 2015 an unusually warm winter, as well as ongoing drought, have again caused gas usage
to tumble to historic lows. Gas usage was 25.6 million therms in FY 2015.
Figure 4: Historic Gas Consumption
20
25
30
35
40
45
50
19
7
1
19
7
3
19
7
5
19
7
7
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8
3
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9
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9
20
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20
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e
r
m
s
(M
i
l
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i
o
n
s
)
GAS UTILITY FINANCIAL PLAN
April 12, 2016 16 | Page
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.
Figure 5: Forecast Gas Consumption
SECTION 5A: FY 2011 TO FY 2015 COST AND REVENUE TRENDS
Figure 6 and Appendix A: Gas Utility Financial Forecast Detail 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 2011 and 2015 due to
lower gas sales. Market prices for gas supplies are shown in Figure 3 above. FY 2014 and 2015
were notable for a temporary hiatus in most CIP budgeting, to permit the completion of a
backlog of projects which had previously been budgeted for. This budgetary hold allowed for
backlogged gas main replacement projects to be started, which consumed capital reserves.
Starting in FY 2012, additional funding for gas cross‐bore inspections increased Operations
costs.
Revenues are below expenses, and the projected rate trajectory will bring revenues in line with
costs by FY 2019. As shown in Figure 6 below, revenues were below cost in FY 2011 and FY 2013
and are projected to be below cost in FY 2016. Reduced budgeting for new CIP in FY 2014 and
FY 2015, as well as the availability of relatively large reserves, forestalled the need for rate
increases until now. However, since Rate Stabilization Reserves are projected to be depleted by
FY 2017, the Gas Utility must increase rates to cover costs.
As shown in Figure 6, the last gas rate adjustment was in July 2012 when rates were increased
by 12%. However, this was at the same time that the commodity rates were changed to a
market‐based, monthly pass‐through cost—and commodity rates (and usage) fell, so revenues
actually declined in FY 2013 after the rate increase.
20
22
24
26
28
30
32
34
36
20
0
3
20
0
4
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0
5
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2
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2
0
20
2
1
20
2
2
20
2
3
20
2
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20
2
5
20
2
6
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e
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m
s
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i
l
l
i
o
n
s
)
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April 12, 2016 17 | Page
Figure 6: Gas Utility Expenses, Revenues, and Rate Changes:
Actual Costs through FY 2015 and Projections through FY 2026
SECTION 5B: FY 2015 RESULTS
Sources of funds for FY 2015 were lower than projected by $4.8 million, but expenses related to
Purchases and Operations and Maintenance activities came in well below expected budget.
Total FY 2015 expenses were $30.9 million compared to projections of $34.9 million in the FY
2015 Financial Plan. Table 10 summarizes the variances from forecast.
Table 10: FY 2015, Actual Results vs. Financial Plan Forecast
Net Cost/(Benefit)Type of change
Sales revenues lower than forecast 5,427,000 Revenue decrease
Other revenues and interest were
higher than forecasted
(628,000) Revenue increase
Purchase costs lower than forecast (3,212,000) Cost savings
Operations & maintenance, Customer
service and other savings
(760,000) Cost savings
Net Cost / (Benefit) of Variances $827,000
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April 12, 2016 18 | Page
SECTION 5C: FY 2016 PROJECTIONS
Current projections indicate that sales revenues continue to be lower than forecast, at this time
projected to be $4.7 million. However, Purchase cost reductions of $4.2 million offset most of
this. Table 11 summarizes the current projected variances from FY 2016 Financial Plan.
Table 11: FY 2016, Projected Results vs. Financial Plan Forecast
Net Cost/ (Benefit) Type of change
Sales revenues lower than forecast 4,719,000 Revenue decrease
Purchase costs lower than forecast (4,171,000) Cost savings
Operations & maintenance, Customer service and
other savings
(1,843,000) Cost savings
Capital improvement budgets higher 1,216,000 Cost increase
Other revenues and interest lower than forecasted 611,000 Revenue decrease
Net Cost / (Benefit) of Variances $531,000
SECTION 5D: FY 2017‐FY 2026 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 a bit less than 3.5% per year through FY 2026. In Operations, this is
due to an additional $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. CIP programs are projected to increase, then stabilize at around $6 million
per year in FY 2018, 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 2015, gas supply
prices were projected to increase by around 3 to 4% per year, but recently gas prices have hit
near record lows. 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 2017.
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April 12, 2016 19 | Page
Figure 7: Gas Utility Reserves
Actual Reserve Levels for FY 2011 and Projections through FY 2026
SECTION 5E: RISK ASSESSMENT AND RESERVES ADEQUACY
The Gas Utility’s primary contingency reserve, the Operations Reserve, is projected to be right
at the approved minimum guideline level in FY 2018 and FY 2019, barring either short‐run
budget savings and/or larger future increases. Figure 8 shows the Operations Reserve
recovering to the target level by FY 2021 with the projected rate trajectory.
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April 12, 2016 20 | Page
Figure 8: Operations Reserve Adequacy
Forecast Operations Reserve levels also exceed the short‐term risk assessment for the Utility.
Table 12 summarizes the risk assessment calculation for the Gas Utility through FY 2021. The
same methodology is used for FY 2022 through FY 2026 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 12: Gas Risk Assessment ($000)
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Total non‐commodity revenue $21,587 $24,256 $26,956 $28,370 $28,781
Max. revenue variance, previous ten years 16% 16% 16% 16% 16%
Risk of revenue loss $3,462 $3,890 $4,323 $4,549 $4,615
CIP Budget $5,076 $4,720 $4,811 $4,958 $5,105
CIP Contingency @10% $508 $472 $481 $496 $511
Total Risk Assessment value $3,969 $4,362 $4,804 $5,045 $5,126
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.
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April 12, 2016 21 | Page
At the end of FY 2016, the sum of the CIP Reserve and existing Commitments was a bit below
$5 million, as shown in Figure 7. However, based upon FY 2016’s CIP budget, the minimum
reserve level is $6.9 million. As such, this reserve is technically below the minimum level, but
the Risk assessment reserve level for the Operations Reserve is also set to handle a 10%
increase to CIP costs should that arise. As such, staff does not recommend an additional
increase to rates to fund this reserve at this time. If any CIP funds budgeted in FY 2016 are not
used or committed by the end of the fiscal year, those funds flow to the Operations Reserve
and those funds could be used to fund the CIP reserve, so increasing rates for this contingency
is premature. Staff is in the process of reviewing this reserve and the appropriateness of the
current minimum and maximum guideline levels.
SECTION 5F: ALTERNATE SCENARIOS
At the UAC’s February 2016 meeting, it was suggested that staff prepare two alternate
scenarios for rate increases. The first (“Target”) scenario keeps the Operations Reserve at or
near the Target level throughout the forecast period as shown in Figure 9 below. The second
(“Minimum”) has no rate change in FY 2017 and lets the Operations Reserve stay at minimum
for five years as shown in Figure 10 below. Both options as well as the proposed rate
adjustments are shown in Table 13.
Table 13: Projected Gas Rate Trajectory for FY 2017 to FY 2026
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
Proposed 8% 9% 7% 4% 1% 1% 1% 1% 1% 1%
Target 8% 16% 2% 1% 1% 2% 2% 2% 2% 1%
Minimum 0% 24% 1% 1% 1% 4% 3% 1% 1% 1%
The Target scenario does not change the FY 2017 proposed rate increase, but a 16% rate
increase in FY 2018 would be needed to bring reserves to target levels. Figure 9 shows that the
Operations Reserve levels for the Target scenario.
The Minimum scenario avoids a rate increase in FY 2017, but requires a significant increase in
FY 2018 (24%). If sales are lower than expected or costs rise, then this rate increase would be
even higher. Figure 10 shows that the Operations Reserve levels for the Minimum scenario.
Staff recommends an 8% gas rate increase in FY 2017 to moderate the rate increases that are
projected in FY 2018 while keeping the Gas Operations Reserve at healthy levels.
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April 12, 2016 22 | Page
Figure 9: Operations Reserve at Target
Figure 10: Operations Reserve at Minimum
SECTION 5G: 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
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April 12, 2016 23 | Page
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.
Future CIP investment needs for the Gas Utility may be lower than in the past, although costs
per foot for main replacement may increase 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 and then maintaining those reductions. 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. If stricter goals are enacted at the
state or local level, however, it could lead to “electrification”, or consumer switching from gas‐
using appliances to electric‐using appliances for heating, cooking and processes. 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. One example of a
stricter standard has been stated by the Governor—reducing GHG emissions to 80% below
1990 levels by 2050.9 This goal, or less ambitious interim state goals, would require legislation
to implement. But 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.”10 Legislation has been recently passed addressing the Governor’s 2030 climate goals of
50% renewable generation, 50% reduction in transportation fuels, and a doubling of energy
efficiency. A few bills have already been introduced on post‐2020 GHG emission reduction goals
and the GHG cap‐and‐trade market. As stewards of the Gas Utility, the City should continue to
stay aware of developments in state climate planning, participate as a stakeholder, and
consider these types of impacts and ways to mitigate them when developing its own
sustainability goals.
9 Executive Orders S‐3‐05 and B‐16‐2012.
10 Climate Change Scoping Plan, First Update, Discussion Draft for Public Review and Comment, California Air
Resources Board, October 2013, pg 88.
GAS UTILITY FINANCIAL PLAN
April 12, 2016 24 | Page
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, and prices for the last year
in particular have been lower than most projections. 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
11.
Figure 11: Gas Market Prices at PG&E Citygate
Future gas commodity costs are expected to increase steadily over the next several years.
Figure 12 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,11 but in December 2014 PG&E applied to the CPUC to
more than double local transportation costs. Staff is tracking PG&E’s application and, based on
11 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.
GAS UTILITY FINANCIAL PLAN
April 12, 2016 25 | Page
discussions to date, expects that nearly all of the proposed increase in local transportation costs
will be approved. Staff projects these costs to escalate at 3% per year in subsequent years. As
these charges are dictated by PG&E and are outside of Palo Alto’s control, staff may propose
making these costs a pass‐through charge, similar to the commodity charge, in FY 2018.
Figure 12: 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 13, 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
GAS UTILITY FINANCIAL PLAN
April 12, 2016 26 | 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 13: 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.
Table 14 shows the current status of these project categories and future projected spending.
GAS UTILITY FINANCIAL PLAN
April 12, 2016 27 | Page
Table 14: 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 budget for gas main replacement assumes the current pace of main replacement,
but does not 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.
Ongoing Projects, Tools and Equipment, and Customer Connections are projected to cost
approximately $0.8 million in FY 2017 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 2017 to FY 2021 is funded by utility rates. The details of the plan are shown in Appendix B:
Gas Utility Capital Improvement Program (CIP) Detail.
Project Category
Current
Budget*
Spending,
Curr. Yr
Remain.
Budget** Committed FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
One Time Projects 150 (9) 141 125 ‐ ‐ ‐ ‐ ‐
Gas Main Replacement 8,097 (367) 7,730 3,580 4,191 3,811 3,878 4,000 4,121
Tools And Equipment 291 (76) 214 ‐ 100 100 100 100 100
Ongoing Projects 918 (193) 726 76 785 809 833 858 884
Customer Connections 953 (576) 377 38 1,229 1,265 1,303 1,342 1,383
TOTAL 10,409 (1,222) 9,187 3,818 6,305 5,985 6,115 6,301 6,488
*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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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 15. Debt service on this bond will continue through 2026.
Table 15: 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”12
equal to five times the annual debt service. The current financial plan complies with these
covenants throughout the forecast period, as shown in Table 16 and
Table 17.
Table 16: 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 35,938 39,825 43,628 46,051 47,336 48,323 49,891 51,465 53,429 54,696
Expenses
(Excluding CIP and
Debt Service)
‐33,310 ‐34,933 ‐36,511 ‐37,086 ‐38,566 ‐40,128 ‐41,838 ‐43,552 ‐45,307 ‐47,068
Net Revenues 2628 4892 7117 8965 8770 8195 8053 7913 8,122 7,628
Debt Service 803 802 800 800 802 804 805 803 800 803
Coverage Ratio 327% 610% 890%1121%1094%1019%1000%985% 985% 985%
Table 17: 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 9,543 7,647 7,849 9,712 11,191 11,901 12,270 12,298 12,327 12,742
Debt Serviceb 803 804 803 802 801 801 802 803 800 803
Reserves Ratioc 12x 10x 10x 12x 14x 15x 15x 15x 15x 15x
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.
12 Available Reserves as defined in the 2011 bonds include the reserves for the Water, Electric, and Gas Utilities
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April 12, 2016 29 | Page
The Gas Utility’s reserves and net revenue are also pledged as security for the bond issuances
listed in Table 18, 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 18: 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 methodology adopted by
Council in 2009 that has remained unchanged since13. 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 5% 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 customer’s 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
cover customer’s 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
13 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.
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April 12, 2016 30 | Page
appliances, will modify these forecasts. Forecasts are continually evaluated to see when new
trends emerge.
SECTION 6G: COMMUNICATIONS PLAN
The FY 2017 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 2017 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 crossbores, 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
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
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April 12, 2016 31 | Page
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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April 12, 2016 32 | Page
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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April 12, 2016 33 | Page
APPENDIX A: GAS FINANCIAL FORECAST DETAIL
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April 12, 2016 34 | 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 2017 FY 2018 FY 2019 FY 2020 FY 2021
ONE TIME PROJECTS
GS‐09000 Gas Station 1 Rebuild ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
GS‐08000 Gas Station 2 Rebuild ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
GS‐10000 Gas Station 3 Rebuild 4 ‐ ‐ ‐ 4 ‐ ‐ ‐ ‐ ‐ ‐
GS‐11001 Gas Station 4 Rebuild ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
GS‐13003 COBUG emissions equipment ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
GS‐15001 Security at Receiving Stations 150,000 150,000 (150,000) (9,459) 140,541 125,000 ‐ ‐ ‐ ‐
Subtotal, One‐time Projects 150,004 150,000 (150,000) (9,459) 140,545 125,000 ‐ ‐ ‐ ‐ ‐
GAS MAIN REPLACEMENT (GMR) PROGRAM
GS‐08011 GMR ‐ Project 18 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
GS‐09002 GMR ‐ Project 19 526,621 ‐ (30,410) (68,899) 427,312 427,312 ‐ ‐ ‐ ‐ ‐
GS‐10001 GMR ‐ Project 20 2,311,602 ‐ (13,981) (23,297) 2,274,324 2,274,325 ‐ ‐ ‐ ‐ ‐
GS‐11000 GMR ‐ Project 21 867,159 ‐ (20,512) (100,049) 746,598 832,416 ‐ ‐ ‐ ‐ ‐
GS‐12001 GMR ‐ Project 22 295,985 4,033,001 (493,001) (175,008) 3,660,977 3,000 ‐ ‐ ‐ ‐ ‐
GS‐13001 GMR ‐ Project 23 ‐ 620,650 ‐ ‐ 620,650 42,500 3,550,650 ‐ ‐ ‐ ‐
GS‐14003 GMR ‐ Project 24 ‐ ‐ ‐ ‐ ‐ ‐ 640,000 3,100,000 ‐ ‐ ‐
GS‐15000 GMR ‐ Project 25 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 711,000 3,200,000 ‐ ‐
GS‐16000 GMR ‐ Project 26 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 678,200 3,300,000 ‐
GS‐20000 GMR ‐ Project 27 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 700,000 3,400,000
GS‐20001 GMR ‐ Project 28 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 721,000
Subtotal, Gas Main Replacement Program 4,001,367 4,653,651 (557,904) (367,253) 7,729,861 3,579,553 4,190,650 3,811,000 3,878,200 4,000,000 4,121,000
TOOLS AND EQUIPMENT
GS‐13002 General Shop Equipment/Tools 130,931 100,000 (113,062) (46,069) 71,800 ‐ 100,000 100,000 100,000 100,000 100,000
GS‐01019 Global Positioning System 73,578 ‐ (70,768) (641) 2,169 ‐ ‐ ‐ ‐ ‐
GS‐02013 Directional Boring Machine ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
GS‐03007 Directional Boring Equipment ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
GS‐03008 Polyethylene Fusion Equip. 29,168 ‐ ‐ ‐ 29,168 ‐ ‐ ‐ ‐ ‐
GS‐14004 Gas Distribution System Model 140,742 87,690 (87,690) (29,544) 111,198 ‐ ‐ ‐ ‐ ‐ ‐
Subtotal, Tools and Equipment 374,419 187,690 (271,520) (76,254) 214,335 ‐ 100,000 100,000 100,000 100,000 100,000
GAS UTILITY FINANCIAL PLAN
April 12, 2016 35 | 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 2017 FY 2018 FY 2019 FY 2020 FY 2021
ONGOING PROJECTS
GS‐11002 Gas System Improvements 151,021 292,669 (66,397) (114,635) 262,658 76,036 231,913 238,870 246,036 253,417 261,020
GS‐03009 System Ext. ‐ Unreimbursed 284,821 192,675 (284,095) (35,809) 157,592 ‐ 198,500 204,455 210,590 216,908 223,415
GS‐80019 Gas Meters and Regulators 736,596 344,690 (733,487) (42,523) 305,276 ‐ 355,030 365,681 376,652 387,952 399,591
Subtotal, Ongoing Projects 1,172,438 830,034 (1,083,979) (192,967) 725,526 76,036 785,443 809,006 833,278 858,277 884,025
CUSTOMER CONNECTIONS (FEE FUNDED)
GS‐80017 Gas System Extensions (252,428) 950,000 255,428 (575,893) 377,107 37,880 1,228,500 1,265,355 1,303,315 1,342,415 1,382,688
Subtotal, Customer Connections (252,428) 950,000 255,428 (575,893) 377,107 37,880 1,228,500 1,265,355 1,303,315 1,342,415 1,382,688
GRAND TOTAL 5,445,800 6,771,375 (1,807,975) (1,221,826) 9,187,374 3,818,469 6,304,593 5,985,361 6,114,793 6,300,692 6,487,713
Funding Sources
Connection Fees 639,600 255,428 1,017,000 1,047,510 1,078,935 1,111,303 1,144,642
Utility Rates 6,131,775 (2,063,403) 5,287,593 4,937,851 5,035,857 5,189,389 5,343,070
CIP‐RELATED RESERVES DETAIL
6/30/2015
(Actual) 9/30/2015
Reappropriations 2,100,800 5,368,905 5,076,093 4,720,006 4,811,478 4,958,277 5,105,025
Commitments 3,345,000 3,818,469
GAS UTILITY FINANCIAL PLAN
April 12, 2016 36 | 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 12, 2016 37 | 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 12, 2016 38 | 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 12, 2016 39 | 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 12, 2016 40 | 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 C
*NOT YET APPROVED *
6053683
Resolution No. _________
Resolution of the Council of the City of Palo Alto Increasing Gas
Rates by Amending Rate Schedules G-1 (Residential Gas Service),
G-1-G (Residential Green Gas Service), G-2 (Residential Master-
Metered and Commercial Gas Service), G-2-G (Residential Master-
Metered and Commercial Green Gas Service), G-3 (Large Commercial
Gas Service), G-3-G (Large Commercial Green Gas Service).
G-10 (Compressed Natural Gas Service Service) and G-10-G
(Compressed Natural Green Gas Service)
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.
B. On ____, 2016, the City Council heard and approved the proposed rate increase.
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 G-1 (Residential Gas Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule G-1, as amended, shall become effective July 1, 2016.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-1-G (Residential Green Gas Service) is hereby amended to read as attached
and incorporated. Utility Rate Schedule G-1-G, as amended, shall become effective July 1, 2016.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-2 (Residential Master-Metered and Commercial Gas Service) is hereby
amended to read as attached and incorporated. Utility Rate Schedule G-2, as amended, shall
become effective July 1, 2016.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-2-G (Residential Master-Metered and Commercial Green Gas Service) is
hereby amended to read as attached and incorporated. Utility Rate Schedule G-2-G, as
amended, shall become effective July 1, 2016.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended to read as attached and
incorporated. Utility Rate Schedule G-3, as amended, shall become effective July 1, 2016.
SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-3-G (Large Commercial Green Gas Service) is hereby amended to read as
CMR #6932: ATTACHMENT F
Attachment C
* NOT YET APPROVED *
6053683
attached and incorporated. Utility Rate Schedule G-3-G, as amended, shall become effective
July 1, 2016.
SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-10 (Compressed Natural Gas Service Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule G-10, as amended, shall become effective
July 1, 2016.
SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule G-10-G (Compressed Natural Green Gas Service Service) is hereby amended to
read as attached and incorporated. Utility Rate Schedule G-10-G, as amended, shall become
effective July 1, 2016.
SECTION 9. The City Council finds as follows:
a. Revenues derived from the gas rates approved by this resolution do not exceed the
funds required to provide water service.
b. Revenues derived from the gas rates approved by this resolution shall not be used
for any purpose other than providing gas service, and the purposes set forth in
Article VII, Section 2, of the Charter of the City of Palo Alto.
SECTION 10. The Council finds that 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.
SECTION 11. The Council finds that the adoption of this resolution changing gas 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.
Attachment C
* NOT YET APPROVED *
6053683
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 GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-1 Effective 72-1-20156
dated 12-1-20135 Sheet No G-1-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from City of Palo Alto
Utilities:
1. Separately-metered single-family residential Customers.
2. Separately-metered multi-family residential Customers in multi-family residential facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ..................................................................................................$910.3288
Tier 1 Rates: Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charge ..................................................$0.00-$0.25
Distribution Charge: .............................................................................................$0.50214392
Tier 2 Rates: (All usage over 100% of Tier 1)
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-2.00
2. Cap and Trade Compliance Charge ...................................................$0.00-$0.25
Distribution Charge: .............................................................................................
.........................................................................................................$01.0407954
6
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
ATTACHMENT D
RESIDENTIAL GAS SERVICE
UTILITY RATE SCHEDULE G-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-2 Effective 72-1-20156
dated 12-1-20135 Sheet No G-1-2
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.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter. The
Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with
the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required. The Commodity and Cap
and Trade Compliance Charges will fall within the minimum/maximum ranges set forth
in Section C.
2. Seasonal Rate Changes:
The Summer period is effective April 1 to October 31 and the Winter period is effective from
November 1 to March 31. 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 for each period. For further discussion
of bill calculation and proration, refer to Rule and Regulation 11.
3. Calculation of Usage Tiers
Tier 1 natural gas usage shall be calculated and billed based upon a level of 0.667 therms per
day during the Summer period and 2.0 therms per day during the Winter period, rounded to
the nearest whole therm, based on meter reading days of service. As an example, for a 30
day bill, the Tier 1 level would be 20 therms during the Summer period and 60 therms during
the Winter period months. For further discussion of bill calculation and proration, refer to
Rule and Regulation 11.
{End}
RESIDENTIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-1-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-G-1 Effective 27-1-20156
dated 72-1-20145 Sheet No G-1-G-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo
Alto Utilities under the PaloAltoGreen Gas Program:
1. Separately-metered single-family residential Customers.
2. Separately-metered multi-family residential Customers in multi-family residential
facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ..................................................................................................$910.3288
Tier 1 Rates: Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charges .................................................$0.00-$0.25
Distribution Charge:.............................................................................................$0.50214392
PaloAltoGreen Gas Charge .................................................................................. $0.1200
Tier 2 Rates: (All usage over 100% of Tier 1)
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-2.00
2. Cap and Trade Compliance Charges ..................................................$0.00-$0.25
Distribution Charge:.............................................................................................$01.04079546
PaloAltoGreen Gas Charge .................................................................................. $0.1200
D. SPECIAL NOTES:
1. Calculation of Cost Components
The actual bill amount is calculated based on the applicable rates in Section C above and
RESIDENTIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-1-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-1-G-2 Effective 27-1-20156
dated 72-1-20145 Sheet No G-1-G-2
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.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter. The
Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with
the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required. The Commodity and Cap
and Trade Compliance Charges will fall within the minimum/maximum ranges set forth
in Section C.
2. Seasonal Rate Changes:
The Summer period is effective April 1 to October 31 and the Winter period is effective
from November 1 to March 31. 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 for each period. For
further discussion of bill calculation and proration, refer to Rule and Regulation 11.
3. Calculation of Usage Tiers
Tier 1 natural gas usage shall be calculated and billed based upon a level of 0.667 therms
per day during the Summer period and 2.0 therms per day during the Winter period,
rounded to the nearest whole therm, based on meter reading days of service. As an
example, for a 30 day bill, the Tier 1 level would be 20 therms during the Summer period
and 60 therms during the Winter period months. For further discussion of bill calculation
and proration, refer to Rule and Regulation 11.
4. PaloAltoGreen Gas Program Description and Participation
PaloAltoGreen Gas provides for the reduction of green-house gas (GHG) emissions
associated with a Customer’s Gas usage, through the purchase of certified environmental
offsets, with a preference to projects located in California. Purchases are made to match
100% of the therm usage at the Customer’s premises every month.
Customers choosing to participate shall fill out a PaloAltoGreen Gas Program application
provided by the Customer Service Center.
{End}
RESIDENTIAL MASTER-METERED AND COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-1 Effective 27-1-20156
dated 72-1-20125 Sheet No G-2-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo Alto
Utilities:
1. Commercial Customers who use less than 250,000 therms per year at one site.
2. Master-metered residential Customers in multi-family residential facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ..................................................................................................$784.2386
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ................................................. $0.00-0.25
Distribution Charge: ........................................................................................................$0.6855147
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.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter. The Cap
and Trade Compliance Charge reflects the City’s cost of regulatory compliance with the
state’s Cap and Trade Program, including the cost of acquiring compliance instruments
sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap and Trade
Compliance Charge will change in response to changing market conditions, retail sales
volumes and the quantity of allowances required. The Commodity and Cap and Trade
Compliance Charges will fall within the minimum/maximum ranges set forth in Section C.
{End}
RESIDENTIAL MASTER-METERED AND COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-G-1 Effective 27-1-20156
dated 72-1-20145 Sheet No G-2-G-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo
Alto Utilities under the PaloAltoGreen Gas Program:
1. Master-metered residential Customers in multi-family residential facilities.
2. Commercial Customers who use less than 250,000 therms per year at one site.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES:
1. 100% Renewable/Full Green option:Per Service
Monthly Service Charge: ......................................................................................$784.2386
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ....................................................... $0.00-0.25
Distribution Charge: ............................................................................................$0.6855147
PaloAltoGreen Gas Charge .................................................................................. $0.1200
2. 100 Therm block option:Per Service
Monthly Service Charge: ......................................................................................$784.2386
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ....................................................... $0.00-0.25
Distribution Charge: ............................................................................................$0.6855147
PaloAltoGreen Gas Charge (per 100 therm block) .............................................. $12.00
RESIDENTIAL MASTER-METERED AND COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-2-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-2-G-2 Effective 27-1-20156
dated 72-1-20145 Sheet No G-2-G-2
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.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter. The
Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with
the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required. The Commodity and Cap
and Trade Compliance Charges will fall within the minimum/maximum ranges set forth
in Section C.
2. Request for Service
A qualifying Customer may request service under this schedule for more than one
account or meter if the accounts are located on one. A site consists of one or more
contiguous parcels of land with no intervening public right-of-ways (e.g. streets).
3. PaloAltoGreen Gas Program Description and Participation
PaloAltoGreen Gas provides for the reduction of green-house gas (GHG) emissions
associated with a Customer’s gas usage, through the purchase of certified environmental
offsets, with a preference to projects located in California. Purchases are made to match
100% of the therm usage at the Customer’s facility every month (the 100%
Renewable/Full Green option), or in 100 therm blocks.
Customers choosing to participate shall fill out a PaloAltoGreen Gas Program application
provided by the Customer Service Center.
{End}
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-1 Effective 27-1-20156
dated 72-1-20125 Sheet No G-3-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo
Alto Utilities:
1. Commercial Customers who use at least 250,000 therms per year at one site.
2. Customers at City-owned generation facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides natural gas service.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: $37761.4318
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .................................................... $0.10-$2.00
2. Cap and Trade Compliance Charges ...................................................... $0.00-0.25
Distribution Charge: .......................................................................................................$0.6775071
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.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter. The
Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with
the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required. The Commodity and Cap
LARGE COMMERCIAL GAS SERVICE
UTILITY RATE SCHEDULE G-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-2 Effective 27-1-20156
dated 72-1-20125 Sheet No G-3-2
and Trade Compliance Charges will fall within the minimum/maximum ranges set forth
in Section C.
2. Request for Service
A qualifying Customer may request service under this schedule for more than one
account or meter if the accounts are located on one site. A site consists of one or more
contiguous parcels of land with no intervening public right-of- ways (e.g. streets).
3. Changing Rate Schedules
Customers may request a rate schedule change at any time to any applicable City of Palo
Alto full-service rate schedule. Customers served under this rate schedule may elect Gas
Direct Access at any time.
{End}
LARGE COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-3-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-G-1 Effective 27-1-20156
dated 72-1-20145 Sheet No G-3-G-1
A. APPLICABILITY:
This schedule applies to the following Customers receiving Gas Service from the City of Palo
Alto Utilities under the PaloAltoGreen Gas Program:
1. Commercial Customers who use at least 250,000 therms per year at one site.
2. Customers at City-owned generation facilities.
B. TERRITORY:
This schedule applies anywhere the City of Palo Alto provides Gas Service.
C. UNBUNDLED RATES:
1. 100% Renewable/Full Green option:Per Service
Monthly Service Charge:$37761.4318
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................................... $0.10-$2.00
2. Cap and Trade Compliance Charges .......................................................... $0.00-0.25
Distribution Charge: ...........................................................................................$0.6775071
PaloAltoGreen Gas Charge: ......................................................................................$0.1200
2. 100 Therm block option: Per Service
Monthly Service Charge:$37761.4318
Per Therm
Supply Charges:
1. Commodity (Monthly Market Based) .......................................................... $0.10-$2.00
2. Cap and Trade Compliance Charges .......................................................... $0.00-0.25
Distribution Charge: ...........................................................................................$0.6775071
PaloAltoGreen Gas Charge (per 100 therm block): ....................................................$12.00
D. SPECIAL NOTES:
LARGE COMMERCIAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-3-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-3-G-2 Effective 27-1-20156
dated 72-1-20145 Sheet No G-3-G-2
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.
The Commodity Charge is based on the monthly natural gas Bidweek Price Index for
delivery at PG&E Citygate, accounting for delivery losses to the Customer’s Meter. The
Cap and Trade Compliance Charge reflects the City’s cost of regulatory compliance with
the state’s Cap and Trade Program, including the cost of acquiring compliance
instruments sufficient to cover the City’s Gas Utility’s compliance obligations. The Cap
and Trade Compliance Charge will change in response to changing market conditions,
retail sales volumes and the quantity of allowances required. The Commodity and Cap
and Trade Compliance Charges will fall within the minimum/maximum ranges set forth
in Section C.
2. Request for Service
A qualifying Customer may request service under this schedule for more than one
account or meter if the accounts are located on one site. A site consists of one or more
contiguous parcels of land with no intervening public right-of-ways (e.g. streets).
3. PaloAltoGreen Gas Program Description and Participation
PaloAltoGreen Gas provides for the reduction of green-house gas (GHG) emissions
associated with a Customer’s gas usage, through the purchase of certified environmental
offsets, with a preference to projects located in California. Purchases are made to match
100% of the therm usage at the Customer’s facility every month, (the 100%
Renewable/Full Green option), or in 100 therm blocks.
Customers choosing to participate shall fill out a PaloAltoGreen Gas Program application
provided by the Customer Service Center.
{End}
COMPRESSED NATURAL GAS SERVICE
UTILITY RATE SCHEDULE G-10
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-1 Effective 47-201-20156
dated 14-201-20135 Sheet No.G-10-1
A. APPLICABILITY:
This schedule applies to the sale of natural gas to the City-owned compressed natural gas (CNG) fueling
station at the Municipal Service Center in Palo Alto
B. TERRITORY:
Applies to location at the Municipal Service Center in City of Palo Alto.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ..................................................................................................$520.9365
Per Therm
Supply Charges:
Commodity (Monthly Market Based) ................................................................ $0.10-$2.00
Cap and Trade Compliance Charges .............................................................. $0.00 to $0.25
Distribution Charge .........................................................................................................$0.0963509
D. SPECIAL CONDITIONS
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.
The Commodity charge is based on the monthly natural gas Bidweek Price Index for delivery at
PG&E Citygate, accounting for delivery losses to the Customer’s Meter. The Cap and Trade
Compliance Charge reflects the City’s cost of regulatory compliance with the state’s Cap and Trade
Program, including the cost of acquiring compliance instruments sufficient to cover the City’s Gas
Utility’s compliance obligations. The Cap and Trade Compliance Charge will change in response to
changing market conditions, retail sales volumes and the quantity of allowances required. The
Commodity and Cap and Trade Compliance Charges will fall within the minimum/maximum range
set forth in Section C. {End}
COMPRESSED NATURAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-10-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-G--1 Effective 47-120-20156
dated 4-20-2015 Sheet No.G-10-G-1
A. APPLICABILITY:
This schedule applies to the wholesale sale of natural gas to the City-owned compressed natural gas
(CNG) fueling station at the Municipal Service Center in Palo Alto under the PaloAltoGreen Gas
Program:
B. TERRITORY:
The City-owned compressed natural gas (CNG) fueling station located at the Municipal Service Center
in City of Palo Alto.
C. UNBUNDLED RATES: Per Service
Monthly Service Charge: ..................................................................................................$520.9365
Per Therm
Supply Charges:
Commodity (Monthly Market Based) .................................................... $0.10-$2.00
Cap and Trade Compliance Charges .................................................. $0.00 to $0.25
Distribution Charge .........................................................................................................$0.0963509
PaloAltoGreen Gas Charge ...................................................................................................$0.1200
D. SPECIAL CONDITIONS
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.
The Commodity charge is based on the monthly natural gas Bidweek Price Index for delivery at
PG&E Citygate, accounting for delivery losses to the Customer’s Meter. The Cap and Trade
Compliance Charge reflects the City’s cost of regulatory compliance with the state’s Cap and Trade
Program, including the cost of acquiring compliance instruments sufficient to cover the City’s Gas
Utility’s compliance obligations. The Cap and Trade Compliance Charge will change in response to
COMPRESSED NATURAL GREEN GAS SERVICE
UTILITY RATE SCHEDULE G-10-G
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No G-10-G--2 Effective 47-120-20156
dated 4-20-2015 Sheet No.G-10-G-2
changing market conditions, retail sales volumes and the quantity of allowances required. The
Commodity and Cap and Trade Compliance Charges will fall within the minimum/maximum range
set forth in Section C.
2. PaloAltoGreen Gas Program Description and Participation
PaloAltoGreen Gas provides for the reduction of green-house gas (GHG) emissions associated with a
Customer’s Gas usage, through the purchase of certified environmental offsets, with a preference to
projects located in California. Purchases are made to match 100% of the therm usage at the
Customer’s premises every month.
Customers choosing to participate shall fill out a PaloAltoGreen Gas Program application provided
by the Customer Service Center.
{End}
NOT YET APPROVED
060216 sh 6053784 1
Resolution No. _______
Resolution of the Council of the City of Palo Alto Changing Refuse Rates by
Amending Utility Rate Schedule R-l (Domestic Refuse Collection) and
Consolidating Utility Rate Schedules R-2 and R-3 (Commercial Refuse Collection)
into Utility Rate Schedule R-C (Commercial Refuse Collection)
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.
B. On June 13, 2016, the City Council held a full and fair public hearing regarding
the proposed rate increase and considered all protests against the proposals.
C. As required by Article XIII D, Section 6 of the California Constitution and
applicable law, notice of the June 13, 2016 public hearing was mailed to all City of Palo Alto
Utilities refuse customers by April 29, 2016.
D. The City Clerk has tabulated the total number of written protests presented by
the close of the public hearing, and determined that it was less than fifty percent (50%) of the
total number of customers and property owners subject to the proposed refuse rate
amendments, therefore a majority protest does not exist against the proposal.
NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule R-1 (Domestic Refuse Collection) is hereby amended to read in accordance with
Sheets R-1-1 and R-1-2, and Utility Rate Schedules R-2 and R-3 are hereby consolidated into
Utility Rate Schedule R-C (Commercial Refuse Collection) to read in accordance with Sheets R-C-
1 through R-C-8, attached to the FY2017 Adopted Budget Staff Report # 6932 as Attachment H -
Residential Rate Schedule and Attachment I – Refuse, and incorporated herein. The foregoing
Utility Rate Schedules, as amended, shall become effective on July 1, 2016.
SECTION 2. The rates contained in the Rate Schedules shall be in effect until Council
adopts a new refuse rate structure.
SECTION 3. The Council finds that the revenue derived from the refuse rates
approved by this resolution do not exceed the funds required to provide refuse service, and the
revenue derived from the adoption of this resolution shall be used only for the purposes set
forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
//
CMR#6932: ATTACHMENT G
NOT YET APPROVED
060216 sh 6053784 2
SECTION 4. The Council finds that 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.
SECTION 5. The Council finds that the adoption of this resolution changing refuse
collection 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.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
_____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM:
_____________________________ ____________________________
Senior Deputy City Attorney City Manager
____________________________
Director of Administrative Services
DOMESTIC REFUSE COLLECTION
UTILITY RATE SCHEDULE R-1
CITY OF PALO ALTO UTILITIESIssued by the City Council
Effective 7-01-16
Supersedes Rate Schedule R-1 dated
7-01-15 Sheet No. R-1-1
A. APPLICABILITY:
This schedule applies to each occupied domestic dwelling as required by City ordinance,
including separate single-family domestic dwelling and multi-unit dwellings (4 units or less). An occupied dwelling unit is defined as any home, apartment unit, cottage, flat or duplex unit, having kitchen, bath, and sleeping facilities, and to which gas or electric service is being rendered.
B. TERRITORY:
Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City.
C. RATES:
The refuse rates below provide weekly collection, processing and disposal of materials properly deposited in the number of garbage containers indicated below, as well as weekly collection and processing of recyclables from blue carts (standard service includes one 64-gallon blue cart),
weekly collection and processing of compostables (yard trimmings, food scraps, and food soiled
paper) from green carts (standard service includes one 96-gallon green cart), ongoing
maintenance of the closed Palo Alto Landfill, zero waste programs, street sweeping service, the household hazardous waste program, and the annual Clean Up Day.
Monthly Refuse Services Cost
Garbage Cart Sizes
Mini-can/20-gallon cart * 26.48
1 32-gallon cart** 47.69
1 64-gallon cart 95.38
1 96-gallon cart 143.07
*Mini-can service cannot be combined with any other cart service
**Standard cart service is one 32-gallon cart.
D. SPECIAL ITEM CHARGES:
1. Stove/washer/dryer/water heater pick up * ...................................................................... 25.002.Freezer/refrigerator/air conditioner/garbage compactor pick up * .................................. 40.00
CMR #6932: ATTACHMENT H
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-01-15
Supersedes Rate Schedule R-1 dated
11-01-14 Sheet No. R-1-2
3. Upholstered furniture pick up (per unit) * ....................................................................... 15.00 4. Mattress pick up * ............................................................................................................ 15.00 5. Tire pick up (per tire, limit of 4 tires) * ........................................................................... 20.00 6. Pallet pick up *................................................................................................................. 5.00 * “Surcharge special” fee (see E5. below) applies when special item is not collected under the annual Clean Up Day Program guidelines.
E. SPECIAL LABOR CHARGES:
1. Return trip (next day service)……………………………………………………. ......... 24.00 2. Return trip (same day service) ……………………………………………………. ....... 36.00 3. Extra collection (for service of additional material; charged per cubic yard) ................ 60.00 4. Miscellaneous 1 person service rate (pull out service) ............................................. 2.50/min 5. Surcharge special (one time pick up of large or non-standard items; or delivery of containers for special events) ………….... ................................................................................. 80.00 6. Repair rate ................................................................................................ 2.50/min + material 7. Back/side yard collection of garbage (monthly charge per residence – available to current back/side yard service customer only) ………………. ................................................... 3.66
F. SPECIAL CART CHARGES: 1. 32-gallon cart rental*** …………………………… .........................................................3.00 2. 64-gallon cart rental*** …………………………… .........................................................3.00 3. 96-gallon cart rental*** …………………………… .........................................................3.00 4. 20-gallon cart purchase ......................................................................................................60.00 5. 32-gallon cart purchase…………………………………………………………… ........ 51.00 6. 64-gallon cart purchase……………………………………………………………. ...... 57.00 7. 96-gallon cart purchase…………………………………………………………….. ...... 62.00 8. Cart wash ………………………………………………………………………….. ...... 30.00 9. Compost cart contamination (entire cart dumped) ........................................................... 30.00 10. Recycling cart contamination (entire cart dumped)……………………………….. ....... 30.00 11. Damaged cart exchange (one allowed per customer each calendar year at no cost). ...... 20.00 12. Monthly key service (customer provided lock) ………………………………………. . 15.00 13. Lock (Collector provided) …………………………………………………………....... 25.00 14. Cart lock installation………………………………………………………………. ....... 40.00 *** Monthly charge for each additional cart of service above three carts for the compostable materials or recycling cart.
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-C
CITY OF PALO ALTO UTILITIESIssued by the City Council
Effective 7-01-16
Supersedes Sheets .R-2-1&2 and R-3-1 through R-3-5
dated 10-01-11 Sheet No. R-C-1
A. APPLICABILITY:
This schedule applies to all occupied establishments other than residential premises as required
by City ordinance.
B. TERRITORY:
Within the incorporated limits of the City of Palo Alto and on land owned or leased by the City.
C. RATES:
The refuse rates below provide collection, processing and disposal of materials properly
deposited in the number of refuse containers indicated below, as well as collection and processing of recyclables from special blue carts. The refuse rates below also provide hazardous waste programs, zero waste programs, ongoing maintenance of the closed Palo Alto Landfill, and street sweeping programs.
(1) MONTHLY GARBAGE CAN/CARTS
Collection Frequency
Cart Sizes 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week Cart Rental
32-gal. can or cart $35.48 $3.15
64-gal. cart* 73.25 163.66 254.08 344.49 434.91 525.33 3.15
96-gal. cart 109.87 236.91 363.95 490.99 618.03 745.07 3.15
* Standard service is one 64-gallon cart.
CMR #6932: ATTACHMENT I
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-C
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-01-16
Supersedes Sheets .R-2-1&2 and R-3-1 through R-3-5
dated 10-01-11 Sheet No. R-C-2
(2) MONTHLY GARBAGE BINS
Size (cubic
yards)
Collection Frequency
Bin Rental 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week
1 $178.54 $363.95 $549.36 $733.62 $919.03 $1,103.30 $40.95
1.5 243.78 501.29 759.95 1,017.46 1,274.97 1,532.49 40.95
2 309.02 638.63 970.54 1,301.30 1,630.91 1,961.67 52.50
3 437.20 913.31 1,388.28 1,864.39 2,341.65 2,817.76 67.20
4 581.41 1,174.26 1,825.48 2,448.09 3,068.40 3,689.87 67.20
5 709.59 1,477.55 2,243.22 3,011.18 3,779.14 4,545.95 81.90
6 853.80 1,768.25 2,679.27 3,592.59 4,505.90 5,418.06 81.90
8 1,113.60 2,315.32 3,519.34 4,724.50 5,928.51 7,132.52 107.10
(3) MONTHLY COMPOST CARTS*
Collection Frequency
Cart Sizes 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week Bin Rental
32-gal. cart $28.38 $3.15
64-gal. cart 58.60 130.93 203.26 275.60 347.93 420.26 3.15
96-gal. cart 87.90 189.53 291.16 392.79 494.42 596.06 3.15
*Multi-unit dwellings with five (5) to ten (10) units may receive up to one 96-gallon compostables cart collected once per week at no charge. Service over 96 gallons will be charged
as described in G-7 below. Note: “Cart wash” (see G-1) is available and the additional cost of $30 will be assessed to account holders if odors become a public nuisance.
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-C
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-01-16
Supersedes Sheets .R-2-1&2 and R-3-1 through R-3-5
dated 10-01-11 Sheet No. R-C-3
(4) MONTHLY COMPOST BINS
Size (cubic
yards)
Collection Frequency Monthly
Bin Rental 1x/week 2x/week 3x/week 4x/week 5x/week 6x/week
1 $142.83 $291.16 $439.49 $586.90 $735.25 $882.64 $40.95
1.5 195.02 401.03 607.96 813.97 1,019.98 1,225.99 40.95
2 247.21 510.90 776.43 1,041.04 1,304.73 1,569.34 52.50
3 349.76 730.65 1,110.62 1,491.51 1,873.32 2,254.21 67.20
4 465.12 939.41 1,460.38 1,958.47 2,454.72 2,951.89 67.20
5 567.67 1,182.04 1,794.58 2,408.94 3,023.31 3,636.76 81.90
6 683.04 1,414.60 2,143.42 2,874.07 3,604.72 4,334.45 81.90
Note: “Bin wash” (see G-2) is available and the additional cost of $40 will be assessed to account holders if odors become a public nuisance.
(5) DEBRIS BOXES
NOTE: GreenWaste of Palo Alto has the exclusive rights to haul any and all mixed material (garbage, generic C&D, or mixed recycling) generated in Palo Alto.
Category A: Includes garbage, mixed construction and demolition (C&D).
Category B: Includes single-source separated materials and can be and directly marketed as a single commodity.
Debris Box On-Call Service*
7 CY 15 CY 20 CY 30 CY 40 CY
Delivery (A or B) $132.30 $132.30 $132.30 $132.30 $132.30
Service (Cat A) 676.40 676.40 785.13 1,004.87 1,095.29
Service (Cat B) 344.40 344.40 399.84 512.40 558.60
Non-use ** $76.00 $76.00 $76.00 $76.00 $76.00
* Additional “Contaminated charge” of $185.30 (see I-5) may apply on debris boxes used for construction and demolition materials.
**Within a fourteen (14) day period.
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-C
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-01-16
Supersedes Sheets .R-2-1&2 and R-3-1 through R-3-5
dated 10-01-11 Sheet No. R-C-4
Debris Box Category A
Permanent Service
15 CY 20 CY 30 CY 40 CY
1x/week $2,638.07 $3,209.18 $4,121.34 $4,490.67
2x/week 5,276.15 6,418.36 8,241.54 8,981.35
3x/week 7,915.36 9,626.39 12,362.89 13,472.02
4x/week 10,552.29 12,836.71 16,485.38 17,962.70
5x/week 13,190.36 16,045.89 20,606.72 22,453.37
Rental 147.00 195.30 292.95 390.60
Debris Box Category B
Permanent Service
15 CY 20 CY 30 CY 40 CY
1x/week $1,419.49 $1,656.07 $1,776.18 $1,896.29
2x/week 2,838.92 3,312.15 3,552.37 3,792.59
3x/week 4,258.47 4,968.22 5,332.19 5,688.88
4x/week 5,677.96 6,624.29 7,104.73 7,585.18
5x/week 7,097.45 8,280.36 8,880.92 9,481.47
Rental 147.00 195.30 292.95 390.60
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-C
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-01-16
Supersedes Sheets .R-2-1&2 and R-3-1 through R-3-5
dated 10-01-11 Sheet No. R-C-5
D. SPECIAL ITEM CHARGES*: 1. Stove/washer/dryer/heater pick up ................................................................................... 25.00 2. Freezer/refrigerator/air conditioner (residential only) ..................................................... 40.00 3. Upholstered furniture pick up ......................................................................................... 15.00 4. Mattress pick up .............................................................................................................. 15.00 5. Tire pick up (per tire, limit of 4 tires) ............................................................................. 20.00 6. Pallet pick up ................................................................................................................... 5.00 * Requests for pick up of special items must be made scheduled in advance of regular pick up days. If no request is made, am “Extra collection” fee (see E-1) will be applied.
E. SPECIAL LABOR CHARGES: 1. Extra collection (for service of additional material; charged per cubic yard) ................ 60.00 2. Miscellaneous 1 person service rate ……………………………………….. ........... 2.50/min 3. Repair rate …………………………………………. ..................................2.50/min + material 4. Return trip/Special trip…….…………………………………………………… ............ 80.00 5. Special Events Delivery....................................................................................................................... 30.00 Materials and Service (per waste station) ................................................................... 20.00
(6) Pullout Service (per container)
Carts Bins
1x/week $50.00 $200.00
2x/week 100.00 400.00
3x/week 150.00 600.00
4x/week 200.00 800.00
5x/week 250.00 1,000.00 6x/week 300.00 1,200.00
7. Whole cardboard box (boxes that have not been broken down) Cart .............................................................................................................................. 25.00 Bin ............................................................................................................................... 50.00 8. Overflowing container Cart .............................................................................................................................. 30.00 Bin ............................................................................................................................... 50.00
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-C
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-01-16
Supersedes Sheets .R-2-1&2 and R-3-1 through R-3-5
dated 10-01-11 Sheet No. R-C-4
Debris Box Category A
Permanent Service
15 CY 20 CY 30 CY 40 CY
1x/week $2,638.07 $3,209.18 $4,121.34 $4,490.67
2x/week 5,276.15 6,418.36 8,241.54 8,981.35
3x/week 7,915.36 9,626.39 12,362.89 13,472.02
4x/week 10,552.29 12,836.71 16,485.38 17,962.70
5x/week 13,190.36 16,045.89 20,606.72 22,453.37
Rental 147.00 195.30 292.95 390.60
Debris Box Category B
Permanent Service
15 CY 20 CY 30 CY 40 CY
1x/week $1,419.49 $1,656.07 $1,776.18 $1,896.29
2x/week 2,838.92 3,312.15 3,552.37 3,792.59
3x/week 4,258.47 4,968.22 5,332.19 5,688.88
4x/week 5,677.96 6,624.29 7,104.73 7,585.18
5x/week 7,097.45 8,280.36 8,880.92 9,481.47
Rental 147.00 195.30 292.95 390.60
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-C
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-01-16
Supersedes Sheets .R-2-1&2 and R-3-1 through R-3-5
dated 10-01-11 Sheet No. R-C-5
D. SPECIAL ITEM CHARGES*: 1. Stove/washer/dryer/heater pick up ................................................................................... 25.00 2. Freezer/refrigerator/air conditioner (residential only) ..................................................... 40.00 3. Upholstered furniture pick up ......................................................................................... 15.00 4. Mattress pick up .............................................................................................................. 15.00 5. Tire pick up (per tire, limit of 4 tires) ............................................................................. 20.00 6. Pallet pick up ................................................................................................................... 5.00 * Requests for pick up of special items must be made scheduled in advance of regular pick up days. If no request is made, am “Extra collection” fee (see E-1) will be applied.
E. SPECIAL LABOR CHARGES: 1. Extra collection (for service of additional material; charged per cubic yard) ................ 60.00 2. Miscellaneous 1 person service rate ……………………………………….. ........... 2.50/min 3. Repair rate …………………………………………. ..................................2.50/min + material 4. Return trip/Special trip…….…………………………………………………… ............ 80.00 5. Special Events Delivery....................................................................................................................... 30.00 Materials and Service (per waste station) ................................................................... 20.00
(6) Pullout Service (per container)
Carts Bins
1x/week $50.00 $200.00
2x/week 100.00 400.00
3x/week 150.00 600.00
4x/week 200.00 800.00
5x/week 250.00 1,000.00 6x/week 300.00 1,200.00
7. Whole cardboard box (boxes that have not been broken down) Cart .............................................................................................................................. 25.00 Bin ............................................................................................................................... 50.00 8. Overflowing container Cart .............................................................................................................................. 30.00 Bin ............................................................................................................................... 50.00
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-C
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-01-16
Supersedes Sheets .R-2-1&2 and R-3-1 through R-3-5
dated 10-01-11 Sheet No. R-2-6
F. RECYCLING AND COMPOST ORDINANCE CHARGES: If contamination is identified in a recycling or compost cart or bin, the customer will have an opportunity to remove the contamination and will only be charged a “Return trip” fee. If the customer chooses to not remove the contamination, the customer will be charged an “Extra solid waste pick-up” fee in addition to a “Return trip” fee. 1. Return trip…….…………………………………………………………………………. 80.00
(2) EXTRA SOLID WASTE PICK UP (for contaminated recycling or compost containers
only. Additional charges will apply to any materials left outside of the containers)
Cart/Bin
Size Contaminated Recycling Contaminated Compost
32-gal. $8.19 $1.64
64-gal. 16.92 3.38
96-gal 25.37 5.07
1 CY 41.23 8.25
1.5 CY 56.30 11.26
2 CY 71.37 14.27
3 CY 100.97 20.19
4 CY 134.27 26.85
5 CY 163.88 32.78
6 CY 197.18 39.44
8 CY 257.18 51.44
3. De minimus (no garbage service but subscribes to both compost and recycling) ............. 25.00
G. SPECIAL CART AND BIN CHARGES: 1. Cart wash …………………………………………………………………………. ....... 30.00 2. Bin wash........................................................................................................................... 40.00 3. Cart exchange ….............................................................................................................. 20.00 4. Monthly key service (customer provided lock) per lock………………………………… 15.00 5. Lock (Contractor provided)………………………………………………………….... . 25.00 6. Cart lock installation………………………………………………………………. ....... 40.00 7. Each additional 32-gallon increment of weekly compostables cart service (in excess of 96 gallons per week) for multi-unit dwellings with five (5) to ten (10) units (monthly
COMMERCIAL REFUSE COLLECTION
UTILITY RATE SCHEDULE R-C
CITY OF PALO ALTO UTILITIES Issued by the City Council
Effective 7-01-16
Supersedes Sheets .R-2-1&2 and R-3-1 through R-3-5
dated 10-01-11 Sheet No. R-2-7
charge).............................................................................................................................. 20.00 8. Temporary bin-delivery (per bin)………………………………………………… ........ 80.00 9. Temporary bin non-use fee (within a fourteen (14) day period) ………………………25.00 10. Auto-bar lock installation ……………………………………………………… ........... 200.00
H. SPECIAL DEBRIS BOX CHARGES: 1. Debris box delivery …………………………………….. ............................................... 132.30 2. Debris box non-use (within a fourteen (14) day period)…………………………….. 76.00 3. Special debris box service between 12 PM to 6 PM ………………………………. ...... 100.00 4. Special debris box service between 6 PM to 12 AM ……………………………. ........ 200.00 5. Special debris box service on Saturday before 12 PM ……………………………. ...... 100.00 6. Special debris box service on Sunday before 6 PM ……………………………. ........... 300.00 7. Special debris box service on Sunday, 6 PM to 12 AM ……………………….. ........... 400.00 8. Contaminated loads of construction and demolition recycling materials………. ........... 185.30 9. Overweight: 8 ton weight limit .......................................................................... 60.00 per ton (or fraction thereof) over 8 tons, up to 10 tons. Note: GreenWaste cannot transport a debris box that is greater than 10 tons.
I. SPECIAL COMPACTOR CHARGES: 1. Compacted garbage (per compacted cubic yard) …………………………………… .... 73.25 2. Compacted compostables (per compacted cubic yard) ……………………………… ... 58.60 3. Compacted recyclables (transportation) ……………………………… ......................... 200.00 4. Overweight (per ton) ........................................................................................................ 60.00 5. Contaminated loads of construction and demolition recycling materials ........................ 185.30 {End}
NOT YET APPROVED
1
160229 sh 0140157
Resolution No. ______
Resolution of the Council of the City of Palo Alto Amending Utility Rate
Schedule D-1 (Storm and Surface Water Drainage) to Increase Storm
Drain Rates by 3.2% Per Month Per Equivalent Residential Unit for
Fiscal Year 2017
The Council of the City of Palo Alto RESOLVES, as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule D-1 (Storm and Surface Water Drainage) is hereby amended to read in
accordance with sheet D-1-1, attached hereto and incorporated herein. The foregoing Utility
Rate Schedule, as amended, shall become effective July 1, 2016.
SECTION 2. The Council finds that this rate increase is being imposed to offset the
effects of inflation on labor and material costs pursuant to the annual inflationary fee escalator
provision of the Storm Drainage Fee ballot measure, which was approved by a majority of Palo
Alto property owners on April 26, 2005.
SECTION 3. The Council finds that the revenue derived from the authorized
adoption enumerated herein shall be used only for the purpose set forth in Article VII, Section
2, of the Charter of the City of Palo Alto.
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CMR #6932: ATTACHMENT J
NOT YET APPROVED
2
160229 sh 0140157
SECTION 4. The Council finds that modification and approval of this change to the
Utility Rate Schedule D-1 (Storm and Surface Water Drainage) for the purpose of meeting
operating expenses is statutorily exempt from California Environmental Quality Act (CEQA)
review, pursuant to Public Resources Code Section 15273(a).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ _____________________________
City Attorney City Manager
_____________________________
Director of Public Works
_____________________________
Director of Administrative
Services
GENERAL STORM AND SURFACE WATER DRAINAGE
UTILITY RATE SCHEDULE D-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-2016
Supersedes Sheet No.D-1-1 dated 7-1-2015 Sheet No. D-1-1
A. APPLICABILITY:
This schedule applies to all storm and surface water drainage service, excepting only those
users and to the extent that they are constitutionally exempt under the Constitution of the
State of California or who are determined to be exempt pursuant to Rule and Regulation 25. B. TERRITORY:
Inside the incorporated limits of the city of Palo Alto and land owned or leased by the city.
C. RATES: Per Month:
Storm Drainage Fee per Equivalent Residential Unit (ERU) ........................................................ $13.03
D. SPECIAL NOTES:
1. An Equivalent Residential Unit (ERU) is the basic unit for computation of storm
drainage fees for residential and non-residential customers. All single-family residential
properties shall be billed the number of ERUs specified in the following table, based on
an analysis of the relationship between impervious area and lot size for Palo Alto
properties.
RESIDENTIAL RATES (Single-Family Residential Properties
PARCEL SIZE (sq.ft.) ERU
<6,000 sq.ft. 0.8 ERU
6,000 - 11,000 sq.ft. 1.0 ERU
>11,000 sq.ft. 1.4 ERU
All other properties will have ERU's computed to the nearest 1/10 ERU using the
following formula:
No. of ERU = Impervious Area (Sq. Ft.)
2,500 Sq. Ft. 2. For more details on the storm drainage fee, refer to Utilities Rule and Regulation 25.
{End}
Attachment B
Rate Adjustments for All Utilities: FY 2017 Proposed, FY 2018 to FY 2021 Projected
Utility FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Electric Utility 11% 10% 2% 0% 1%
Gas Utility 8% 9% 7% 1% 1%
Wastewater 9% 10% 9% 7% 6%
Water Utility 6% 9% 9% 6% 2%
Refuse1 9% 8% 5% 3% 3%
Storm Drain 3.2% 2% to 3% 2% to 3% 2% to 3% 2% to 3%
Bill Change (%) 8% 9% 6% 4% 2%
($/mo) $20.80 $23.45 $18.49 $11.16 $7.77
Attachment A
*NOT YET APPROVED *
160322 sdl 6053686
Resolution No. _________
Resolution of the Council of the City of Palo Alto Approving the
FY 2017 Wastewater 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 2017 Wastewater Utility Financial
Plan.
SECTION 2. The Council hereby approves the transfer of $3.95 million in FY 2016 from
the Rate Stabilization Reserve to the Operations Reserve, as described in the FY 2017
Wastewater Utility Financial Plan approved via this resolution.
/ /
/ /
/ /
/ /
/ /
/ /
CMR #6932: ATTACHMENT K
Attachment A
*NOT YET APPROVED *
160322 sdl 6053686
SECTION 3. The Council finds that the adoption of this resolution does not meet the
California Environmental Quality Act’s 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 2017 WASTEWATER
COLLECTION UTILITY
FINANCIAL PLAN
FY 2017 TO FY 2026
ATTACHMENT B
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
F e b r u a r y 2 0 1 6 2 | P a g e
FY 2017 WASTEWATER COLLECTION
UTILITY FINANCIAL PLAN
FY 2017 TO FY 2026
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 2017 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 ...................................................................... 7
Section 3D: Proposed Reserve Transfers ..................................................................................... 7
Section 4: Utility Overview .................................................................................................... 7
Section 4A: Wastewater Utility History ....................................................................................... 7
Section 4B: customer base ........................................................................................................... 8
Section 4C: Collection System ...................................................................................................... 9
Section 4D: Cost Structure and Revenue Sources ........................................................................ 9
Section 4E: Reserves Structure ................................................................................................... 10
Section 4F: Competitiveness ...................................................................................................... 11
Section 5: Utility Financial Projections ................................................................................. 11
Section 5A: FY 2011 to FY 2015 Cost and Revenue Trends ........................................................ 11
Section 5B: FY 2015 Results ....................................................................................................... 12
Section 5C: FY 2016 Projections ................................................................................................. 13
Section 5D: FY 2017 – FY 2026 Projections ................................................................................ 13
Section 5E: Risk Assessment and Reserves Adequacy ............................................................... 14
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
F e b r u a r y 2 0 1 6 3 | P a g e
Section 5F: Alternate Scenarios ................................................................................................. 16
Section 5G: Long-Term Outlook ................................................................................................. 18
Section 6: Details and Assumptions ..................................................................................... 18
Section 6A: Wastewater Treatment Costs ................................................................................. 18
Section 6B: Operations .............................................................................................................. 18
Section 6C: Capital Improvement Program (CIP) ....................................................................... 19
Section 6D: Debt Service ............................................................................................................ 21
Section 6E: Other Revenues ....................................................................................................... 22
Section 7: Communications Plan .......................................................................................... 22
Appendices ......................................................................................................................... 23
Appendix A: Wastewater Collection Financial Forecast Detail .................................................. 24
Appendix B: Wastewater Collection Utility Capital Improvement Program (CIP) Detail .......... 25
Appendix C: Wastewater Collection Utility Reserves Management Practices .......................... 26
Appendix D: Sample of Wastewater Collection Outreach Materials......................................... 29
WASTEWATER COLLECTION 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
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. It 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 5% per year
from fiscal year (FY) 2016 to FY 2026. The primary driver is wastewater treatment costs, which
are projected to rise by 7% in FY 2017 and 6% per year thereafter, with other costs rising at
roughly 3% to 4% per year. The costs for the Wastewater Collection Utility are shown in Table 1
below.
Table 1: Expenses for FY 2015 to FY 2026
Expenses
($000)
FY
2015
(act.)
FY
2016
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
Treatment
Costs 8,589 9,012 9,855 10,446 11,073 11,737 12,442 13,188 13,980 14,818 15,707 16,650
Operations 3,684 6,044 6,261 6,466 6,670 6,881 7,097 7,320 7,795 7,904 8,150 8,404
Capital
Projects 4,067 4,985 4,852 4,996 5,144 5,297 5,455 5,617 5,784 5,955 6,132 6,315
TOTAL 16,340 20,041 20,968 21,908 22,887 23,916 24,993 26,125 27,558 28,678 29,990 31,368
Expenses continue to be higher than revenues, and the Rate Stabilization Reserve has been
drawn down in lieu of having larger rate increases. To ensure that revenues cover these rising
costs and reserves remain healthy, the financial plan includes the rate trajectory shown in Table
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
F e b r u a r y 2 0 1 6 5 | P a g e
2. The table also shows rate projections from last year’s Financial Plan. Note that the rate
increase for FY 2017 is the same as projected in the FY 2016 Financial Plan.
Table 2: Projected Wastewater Collection Rate Trajectory for FY 2017 to FY 2026
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
Current Plan 9% 10% 9% 7% 6% 4% 4% 4% 4% 4%
FY 2016 Plan 9% 9% 9% 6% 6% N/A N/A N/A N/A N/A
The FY 2016 Financial Plan projected that reserves would fall nearly to the minimum reserve
levels. However, as costs are increasing faster than projected last year, higher rate increases are
required to keep pace.
The Wastewater Collection Utility’s Rate Stabilization Reserve is being used to spread the
projected cost increases over several years. The FY 2016 Financial Plan proposed a $2 million
transfer from the Rate Stabilization Reserve, but staff recommends increasing this to $3.95
million. This Financial Plan projects that the Rate Stabilization Reserve will be exhausted by FY
2017.
Table 3: Transfers To/(From) Reserves for FY 2016 to FY 2026 ($000)
Reserve FY 2016 FY 2017 FY 2018 to FY 2026
Rate Stabilization (3,950) (342) -
Operations 3,950 342 -
SECTION 2B: SUMMARY OF PROPOSED ACTIONS
Staff proposes the following actions for the Wastewater Collection Utility in FY 2016:
1. Transfer $3.95 million from the Rate Stabilization Reserve to the Operations Reserve.
See Section 3D: Proposed Reserve Transfers for more details.
Staff proposes the following actions for the Wastewater Collection Utility in FY 2017:
1. Increase the Wastewater Collection rates as shown in Section 3B: Current and Proposed
Rates. The changes are projected to increase average system revenues by 9% effective
July 1, 2016.
2. Transfer $342,000 from the Rate Stabilization Reserve to the Operations Reserve. See
Section 3D: Proposed Reserve Transfers for more details.
SECTION 3: DETAIL OF FY 2017 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 FINANCIAL PLAN
F e b r u a r y 2 0 1 6 6 | P a g e
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 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 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.
SECTION 3B: CURRENT AND PROPOSED RATES
The current rates were adopted July 1, 2015, when the City increased sewer rates by 9%.
CPAU’s sewer rates for commercial customers are based on the previous winter’s water use.
This closely approximates non-irrigation water consumption, which represents actual sewer use.
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 (January through March). 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.
Table 4, below, summarizes the current and proposed rates for all customer classes.
Comparisons with neighboring communities are discussed in Section 4F: Competitiveness.
Table 4: Sewer Rates (Current and Proposed)
Current
(7/1/2015)
Proposed
(7/1/2016)
Change
$/mo. %
Monthly Service and Minimum Charges ($/month)
S-1 (Residential) Service charge $31.95 $34.83 $2.88 9%
S-2 (Commercial),
S-6 (Restaurant)
Minimum $31.95 $34.83 $2.88 9%
Quantity Rates: based on winter water usage (average for January - March bill
period)
S-2 (Commercial) $/CCF 6.16 6.71 0.55 9%
S-6 (Restaurant) $/CCF 9.52 10.38 0.86 9%
S-7 (Industrial) $/CCF 2.83 3.08 0.25 9%
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
F e b r u a r y 2 0 1 6 7 | P a g e
SECTION 3C: BILL IMPACT OF PROPOSED RATE CHANGES
Table 5 below shows the impact of the proposed July 1, 2016 rate changes.
Table 5: Impact of Proposed Sewer Changes
Current
(7/1/2015)
Proposed
(7/1/2016)
Change
$/mo. %
Residential $ 31.95 $ 34.83 $ 2.88 9%
General Commercial (14 CCF) 86.24 93.94 7.70 9%
Restaurant (56 CCF) 533.12 581.28 48.16 9%
SECTION 3D: PROPOSED RESERVE TRANSFERS
In the FY 2016 Financial Plan, several transfers between reserves were approved. Funds related
to CIP’s in the Reappropriations Reserve were transferred to the CIP reserve, to comply with
updated accounting practices. Staff also proposed a $2 million transfer from the Rate
Stabilization Reserve to the Operations Reserve.
In this FY 2017 Financial Plan, staff recommends an additional $1.95 million transfer from the
Rate Stabilization Reserve in FY 2016. This will leave a small amount, $342,000, to transfer in FY
2017, which will result in a zero balance in the Rate Stabilization Reserve at the end of FY 2017.
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.
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
1 Long Range Facilities Plan for the Regional Water Quality Control Plant, August 2012, Carollo Engineers, pp 2-1
through 2-2
WASTEWATER COLLECTION UTILITY FINANCIAL PLAN
F e b r u a r y 2 0 1 6 8 | P a g e
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 study
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 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
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
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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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 37% 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
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 2015, treatment costs represented nearly half of the Wastewater Collection Utility’s costs
(53%), followed by Operations (25%) and Capital costs (22%). These expenditures are shown in
Figure 1. The utility’s revenue in FY 2015, shown in Figure 2, came primarily from sewer charges
(86%), with the remainder coming mainly from capacity and connection fees and other sources
(14%).
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Figure 1: Cost Structure (FY 2015) Figure 2: Revenue Structure (FY 2015)
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
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.
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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 $383 under
current rates, 32% lower than the average neighboring community. Palo Alto has the third
lowest bill of the group.
Table 6: Residential Monthly Sewer Bill Comparison
Palo Alto
Neighboring Communities Neighboring
Community
Average
Menlo
Park
Redwood
City
Mountain
View Los Altos
Santa
Clara Hayward
31.95 81.08 74.95 28.80 32.01 37.94 28.93 47.29
Based on rates as of February 2016
If the proposed rate change discussed in Section 3B: Current and Proposed Rates is adopted by
Council, and assuming other agencies do not change their sewer rates, Palo Alto would be 26%
lower than the average neighboring community and retain the third lowest bill.
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.
Table 7: 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
$86.24 $125.58 $74.95 $52.78 $44.82 $60.06 $61.18 $69.90
Restaurant $533.12 $626.08 $686.78 $412.16 $121.68 $537.60 $463.12 $474.57
Based on rates as of February 2016
SECTION 5: UTILITY FINANCIAL PROJECTIONS
SECTION 5A: FY 2011 TO FY 2015 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 2026. For FY 2011 through FY 2015, Operations costs
grew at about the pace of inflation, at around 2% per year. Capital Investment expenses
actually saw a slight contraction over this period, but this was partially due to backlogged
projects necessitating a short term lowering of CIP budgets. Treatment costs during this time
rose by 4% annually on average.
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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.
Figure 3: Wastewater Collection Utility Expenses, Revenues and Rate Changes
Actual Costs through FY 2015 and Projections through FY 2026
SECTION 5B: FY 2015 RESULTS
Forecast sources of funds for FY 2015 were higher than projected by $137,000, but expenses
related to Administration and Customer Service activities came in well below expected budget.
Total FY 2015 expenses were $16.15 million compared to projections of $18.64 million in the FY
2016 Financial Plan. Table 8 summarizes the variances from forecast.
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Table 8: FY 2015, Actual Results vs. Financial Plan Forecast
Net Cost/
(Benefit)
Type of
change
Admin and customer service costs lower than projected (1,985,000) Cost savings
Connection, capacity fees and other revenues were
higher than forecasted
(489,000) Revenue increase
Sales revenues lower than forecast 352,000 Revenue decrease
Operations, capital and other cost savings (502,000) Cost savings
Net Cost / (Benefit) of Variances ($2,625,000)
SECTION 5C: FY 2016 PROJECTIONS
There are no notable changes from the FY 2016 budget identified at this time.
SECTION 5D: FY 2017 – FY 2026 PROJECTIONS
Staff has prepared a forecast of costs and revenues through FY 2026. 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 4.4% per year on
average for FY 2016 through FY 2026. The majority of this increase is borne by 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 6.3% 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. While some relief was experienced during times of lower
CIP expenditures, this trend of under-collection continues into the future, resulting in a rapid
reduction of reserves. A path of 9% and 10% 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 10% increase in FY 2018.
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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 2021. The Operations Reserve is projected to be adequate to manage these levels
of risk over the entire forecast period.
Table 9: Wastewater Collection Risk Assessment
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Total Revenue ($000) 17,505 19,249 20,989 22,474 23,832
Max. Historical Budget-to-Actual variance 3% 3% 3% 3% 3%
Budget-to-Actual Risk ($000) 525 577 630 674 715
System Rehabilitation CIP Budget ($000) 4,458 4,590 4,726 4,867 5,011
CIP Contingency @10% ($000) 446 459 473 487 501
Treatment Budget ($000) 9,855 10,446 11,073 11,737 12,442
Treatment Cost Contingency @10% ($000) 986 1,045 1,107 1,174 1,244
Total risk assessment value ($000) 1,957 2,081 2,210 2,335 2,460
Projected Operations Reserve Level ($000) 3,386 2,837 3,048 3,780 4,793
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SECTION 5F: ALTERNATE SCENARIOS
At its February 2016 meeting, the UAC suggested that staff prepare two alternate scenarios for
rate increases. The first (“Target”) scenario keeps the Operations Reserve at or near the Target
level during the forecast period. The second (“Minimum”) scenario tries to mitigate rate
increases and get as near to the minimum reserve level as possible for five years before moving
to Target level. Rate trajectories for both alternate scenarios as well as the proposed rate
adjustments are shown in Table 10 below.
Staff also modeled a scenario with no wastewater rate increase in FY 2017. This scenario
decreases the Operations Reserve to the Risk Assessment value, and requires a 25% in FY 2018
to keep reserves at that value for one more year, before net revenue growth starts.
Table 10: Projected Wastewater Rate Trajectory for FY 2017 to FY 2026
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
Proposed 9% 10% 9% 7% 6% 4% 4% 4% 4% 4%
Target 16% 9% 4% 4% 5% 5% 4% 6% 4% 4%
Minimum 5% 19% 4% 4% 6% 6% 6% 6% 5% 4%
The Target scenario, represented in Figure 6 below, requires a 16% rate increase (larger than
the proposed 9% increase) in FY 2017, but reduces the rate increase slightly in FY 2018. The
Minimum scenario, represented in Figure 7 below, allows a lower rate increase in FY 2017, but
requires a significant rate increase (19%) in FY 2018.
Staff recommends a 9% wastewater rate increase in FY 2017 to smooth the rate increases over
the next two years while keeping the Wastewater Collection Operations Reserve at healthy
levels.
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Figure 6: Operations Reserve at Target Level
Figure 7: Operations Reserve at Minimum for FY 2017 through FY 2021
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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.
Due to the ongoing drought and reduced wastewater flows to the plant, concentrations of
chemicals and solids have increased. The amount of chemicals needed to counteract and treat
this more concentrated wastewater increases and the cost of those chemicals has gone up in
recent years. Therefore, FY 2017 treatment costs are projected to increase by 7%, while over
the forecast horizon in general treatment costs are expected to rise by 6% per year. The longer
term cost increases are primarily due to increased CIP spending by the RWQCP.
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. Two of Palo Alto’s
comparison cities, Mountain View and Los Altos, are partners in the RWQCP and will see similar
increases, but other comparison agencies may not.
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
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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
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
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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.
Since the last master plan study was updated over a decade ago, and due to these escalating
costs, staff is considering a new wastewater collection system master plan study, tentatively
planned for 2016, to evaluate the current state of the sewer system and determine the optimal
rate of main replacement in future years. The process may reveal a need for a higher or lower
replacement, or possibly target areas for more urgent focus. In the case that prices remain high
and the updated plan shows a need for similar rates of replacement that CPAU had previously
planned, CIP costs will rise.
Customer Connections costs are projected to increase steadily by around 3% each year through
the end of the forecast period. Ongoing projects are seeing a temporary surge in FY 2016 but
are expected to drop by $200,000 in FY 2017, then resume a path of cost increases similar to
Customer Connections. 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 11 for the 5-year financial forecast period.
Table 11: Projected CIP Spending
Aside from Customer Connections, the CIP plan for FY 2017 to FY 2021 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.
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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 12 below.
Table 12: Wastewater Collection Utility Debt Service ($000)
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
1999 Utility Revenue Bonds, Series A 128 128 128 128 128 128
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 13, 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.
Table 13: Debt Service Coverage Ratio ($000)
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Revenues 19,565 21,359 23,099 24,647 26,007 27,026
Expenses (Excl. CIP
and Debt Service) (16,388) (17,184) (18,015) (18,891) (19,810) (20,779)
Net Revenues 3,177 4,175 5,084 5,756 6,197 6,247
Debt Service 128 128 128 128 128 128
Coverage Ratio 2482% 3262% 3972% 4497% 4841% 4880%
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.
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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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, operations and infrastructure, 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 publications, newspaper inserts, social media and email blasts.
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 first when there is 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 blasts and social
media. While print materials and website pages feature prominently, CPAU is increasing the
outreach emphasis on use of direct mail, social media and digital advertising including 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
F e b r u a r y 2 0 1 6 27 | P a g e
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
F e b r u a r y 2 0 1 6 28 | 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 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
F e b r u a r y 2 0 1 6 29 | P a g e
APPENDIX D: SAMPLE OF WASTEWATER COLLECTION OUTREACH
MATERIALS
Attachment C
* NOT YET APPROVED *
Resolution No. _________
Resolution of the Council of the City of Palo Alto Increasing
Wastewater Rates by Amending Rate Schedules S-1 (Residential
Wastewater Collection and Disposal), S-2 (Commercial Wastewater
Collection and Disposal), S-6 (Restaurant Wastewater Collection and
Disposal) and S-7 (Commercial Wastewater Collection and Disposal –
Industrial Discharger)
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.
B. On ____, 2016, the City Council held a full and fair public hearing regarding the
proposed rate increase and considered all protests against the proposals.
C. As required by Article XIII D, Section 6 of the California Constitution and
applicable law, notice of the ________ 2016 public hearing was mailed to all City of Palo Alto
Utilities wastewater customers by _______, 2016.
D. The City Clerk has tabulated the total number of written protests presented by
the close of the public hearing, and determined that it was less than fifty percent (50%) of the
total number of customers and property owners subject to the proposed wastewater rate
amendments, therefore a majority protest does not exist against the proposal.
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 S-1 (Residential Wastewater Collection and Disposal) is hereby amended to read
as attached and incorporated. Utility Rate Schedule S-1, as amended, shall become effective
July 1, 2016.
/ /
/ /
/ /
160322 sdl 6053687
Attachment C
* NOT YET APPROVED *
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule S-2 (Commercial Wastewater Collection and Disposal) is hereby amended to read
as attached and incorporated. Utility Rate Schedule S-2, as amended, shall become effective
July 1, 2016.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule S-6 (Restaurant Wastewater Collection and Disposal) is hereby amended to read
as attached and incorporated. Utility Rate Schedule S-6, as amended, shall become effective
July 1, 2016.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) is
hereby amended to read as attached and incorporated. Utility Rate Schedule S-7, as amended,
shall become effective July 1, 2016.
SECTION 5. The Council finds that the revenue derived from the wastewater rates
approved by this resolution do not exceed the funds required to provide water service, and the
revenue derived from the adoption of this resolution shall be used only for the purposes set
forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
SECTION 6. The Council finds that 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.
SECTION 7. The Council finds that the adoption of this resolution changing
wastewater collection 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.
/ /
/ /
/ /
/ /
160322 sdl 6053687
Attachment C
* NOT YET APPROVED *
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
160322 sdl 6053687
RESIDENTIAL WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-1-1 Effective 7-1-20156
dated 7-1-20125 Sheet No S-1-1
A. APPLICABILITY:
This schedule applies to each occupied residential dwelling unit.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides wastewater service.
C. RATES:
Per Month
Each domestic dwelling unit ..................................................................................................
$3134.8395
D. SPECIAL NOTES:
1. Any dwelling unit being individually served by a water, gas, or electric meter will be
considered continuously occupied.
2. For two or more occupied dwelling units served by one water meter, the monthly wastewater
charge will be calculated by multiplying the current wastewater rate by the number of
dwelling units.
3. Each developed separate lot shall have a separate service lateral to a sanitary main or
manhole.
{End}
ATTACHMENT D
COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-2-1 Effective 7-1-20156
dated 7-1-20125 Sheet No S-2-1
A. APPLICABILITY:
This schedule applies to all commercial establishments other than those served under Utility Rate
Schedule S-1 (Domestic Residential Wastewater Collection and Disposal), Rate Schedule S-6
(Restaurant Wastewater Collection and Disposal) or Rate Schedule S-7 (Commercial
Establishments Wastewater Disposal – Industrial Discharger).
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides wastewater services.
C. RATES:
1. Minimum Charge per connection per month .............................................................$3134.8395
2. Quantity Rates, per 100 cubic feet (See Section D.1) ............................................. $6.7116
D. SPECIAL NOTES:
1. The monthly charge for the quantity rate set forth in Section C.2 of this rate schedule will
be based upon the average water usage for the months of January, February and March,
and applied in the following July. If a water meter is identified as exclusively serving
irrigation landscaping, such meter will be exempted from wastewater charge calculations.
Customers without an applicable usage history will be charged at the minimum monthly
charge until such time as such usage may reasonably be established by the City of Palo
Alto Utilities Department.
2. The City of Palo Alto Utilities Department may require wastewater metering facilities, in
which case service will be governed by terms of a special agreement between the City
and the Customer.
{End}
RESTAURANT WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-6
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-6-1 Effective 7-1-20156
dated 7-1-20125 Sheet No S-6-1
A. APPLICABILITY:
This schedule applies to all restaurants.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides wastewater services.
C. RATES:
1. Minimum charge per connection per month ......................................................... $3134.8395
2. Quantity Rates, per 100 cubic feet of monthly metered water usage ......................... $
910.5238
D. SPECIAL NOTES:
1. The City of Palo Alto Utilities Department may require wastewater metering facilities, in
which case service will be governed by terms of a special agreement between the City and
the Customer.
{End}
COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL
–INDUSTRIAL DISCHARGER
UTILITY RATE SCHEDULE S-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-7-1 Effective 7-1-20156
dated 7-1-20125 Sheet No S-7-1
A. APPLICABILITY:
This schedule applies to any establishment requiring sampling of industrial discharges in excess
of 25,000 gallons per day, or special discharge monitoring, as defined in Rule and Regulation 23,
Section D.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides wastewater services.
C. RATES:
1. Collection System Operation, Maintenance, and Infiltration Inflow:
$1.7894 per 100 cubic feet of metered water use.
2. Advanced Waste Treatment Operations and Maintenance Charge:
$1.1405 per 100 cubic feet of metered water use
3. $ 247.56 per 1000 pounds (lbs) of COD (Chemical Oxygen Demand)
4. $ 596.62 per 1000 lbs of SS (Suspended Solids)
5. $ 3,983.85 per 1000 lbs of NH3 (Ammonia)
6. $ 14,781.25 per 1000 lbs of toxics (chromium, copper, cyanide, lead, nickel, silver, and zinc)
D. SPECIAL NOTES:
1. Water usage will be determined as defined in Rule and Regulation 23, Section D. If a
water meter is identified as exclusively serving irrigation landscaping, such meter will be
exempted from wastewater charge calculations.
2. The City of Palo Alto Utilities Department may require wastewater metering facilities, in
which case service will be governed by terms of a special agreement between the City of
Palo Alto and the Customer.
3. Charges for large discharges will be determined on the basis of sampling as outlined in
Utilities Rule and Regulation 23, Section D. However, for purposes of arriving at an
accurate flow estimate, discharge meters, if installed, can be utilized to measure outflow
for billing purposes. Annual charges will be determined and allocated monthly for billing
purposes.
{End}
EXCERPTED DRAFT MINUTES OF THE MARCH 2, 2016
UTILITIES ADVISORY COMMISSION MEETING
ITEM 1: ACTION: Staff Recommendation that the Utilities Advisory Commission Recommend
that the City Action Council Adopt: (1) a Resolution Approving the Fiscal Year 2017 Wastewater
Collection Financial Plan; and (2) a Resolution Increasing Wastewater Rates by Amending Rate
Schedules S-1 (Residential Wastewater Collection and Disposal), S-2 (Commercial Wastewater
Collection and Disposal), S-6 (Restaurant Wastewater Collection and Disposal) and S-7
(Commercial Wastewater Collection and Disposal – Industrial Discharger)
Acting Rates Manager Eric Keniston provided a summary of the written report. He said that the
forecast of costs and rate changes has not changed from what the UAC saw last month when it
reviewed the preliminary financial projections. He said that the primary driver for the 9% rate
increase requested as well as the rate increases projected for the next several years is that the
costs of wastewater treatment are rising quickly. He noted that the Rate Stabilization Reserve
would be exhausted by the end of fiscal year (FY 2016 and that the Operations Reserve is being
drawn down as well. He said that the long-term rate projections assumed continuing increases
in treatment costs as well as operational costs.
Keniston noted that the 9% rate increase proposed is exactly what was projected in last year’s
Financial Plan. He noted that the rate trajectory in this year’s Financial Plan result in the
Operations Reserve going down to the minimum level in FY 2018 and FY 2019 before increasing
to the target level by FY 2022. He said that the 9% increase is the same for all customer groups
and that the increase for residential customers is $2.88 per month.
Keniston said that at its meeting last month, the UAC asked for scenarios showing the
Operations Reserve held to the minimum level and at the target level. He showed the in the
minimum reserve scenario, the FY 2017 rate increase could be held to 5% instead of 9%, but
that the rate increase for FY 2018 would be 19%. For the target reserve scenario, the FY 2017
rate increase would have to be 16% for FY 2017, following by a 9% increase in FY 2018 with
somewhat lower rate increases in the following years. After developing these alternate
scenarios, staff did not change its recommendation for a 9% rate increase for FY 2017.
Commissioner Danaher, noting that the reserve minimum is only about $2 million, asked what
would be done if the revenues were not sufficient and more money was needed. Keniston said
that a rate increase would be pursued if that ever arose. Such a mid-year rate increase would
need to go through the normal review process starting with the UAC, then consideration by the
ATTACHMENT E
Finance Committee—and the Proposition 218 45-day noticing process—with final decision by
the Council. Commissioner Ballantine asked if there is always enough notice of what its needs
are going to be. Keniston noted that in the Wastewater Collection Utility, the expense profile is
fairly flat and known ahead of the year and there shouldn’t be a surprise need for extra money.
Commissioner Ballantine asked if revenues could fall due to drought due to lowered water
usage. Keniston said that rates for this fund are generally independent of water usage with
only the commercial wastewater collection customers having revenues depend on relatively
steady wintertime water usage. Residential revenues are the majority of the fund’s revenues
and are based on a flat monthly charge so there is no variability due to changes in water usage.
Commissioner Danaher asked, if usage falls, do costs go down. Keniston responded that the
costs are fixed and revenues are also mostly fixed in the Wastewater Collection Utility and,
therefore, not dependent on the flow rate. Keniston said that the residential rates have no
element that is based on water flows.
Commissioner Eglash noted that the real cause for the dramatic rate increase seems to be the
wastewater treatment costs. He asked why those costs rose so much from FY 2014 to FY 2015
and from FY 2015 to FY 2016.
Keniston introduced Jamie Allen, Regional Water Quality Control Plant Manager, to describe
the components of the treatment plant costs that are passed on the plant partners, including
Palo Alto. Allen explained that there was an accounting change that lowered the costs for one
year in FY 2014 so that year’s costs are anomalous. He said that the majority of the wastewater
treatment costs are operations costs with two categories of capital improvement program (CIP)
costs—“minor”, or rate-funded CIP and major CIP debt service. Operations costs are expected
to grow at the same rate it has for the last 5 years—at about 5.5% per year and CIP costs are
discussed with the plant partners and minor CIP costs grow at about the rate of inflation, about
2.6% per year. Major CIP debt service is for planned plant upgrades.
Allen showed a breakdown of the FY 2017 wastewater treatment costs: 47% for salaries and
benefits for operators, engineers, chemists, etc.; 12% for allocated charges for services
provided by the City such as HR, attorney, IT, finance, etc.; 9% for utilities expenses (electric,
gas, water); 11% for minor CIP projects; 7% for contract services; 3% for debt service for major
CIP projects; and 10% for general expense and supplies and materials.
Commissioner Eglash summarized this to say that minor CIP are only modestly growing, major
CIP expenses are growing from about $0.5 million per year to $2 million per year and that
operations expenses are growing by 5.5% per year, a modest and steady rate. He noted that the
charts showed that expenses were lower than revenues for FY 2014 and FY 2015, which
replenished the reserves. In FY 2016, costs were above revenues. He said that rate increases on
the order of 9% per year for the forecast horizon period don’t make sense and are impossible to
explain to the public when treatment costs are only rising 5.5% per year. Keniston said that CIP
expenditures were lower for the wastewater collection (not for wastewater treatment) in FY
2014 and FY 2015, but that CIP costs are projected to increase over the forecast period.
Commissioner Eglash concluded that, based on the numbers, an increase in treatment cost is
not the real cause of the high rate increases forecast, but instead there was a period of time
when costs were rising, but no rate increases were put into place, which resulted in a drawing
down of reserves. Keniston said that reserves will be drawn down in FY 2016 through FY 2018
until revenues balance expenses. Commissioner Eglash agreed that reserves have been
depleted over time.
Commissioner Danaher asked for an explanation of the difference between wastewater
treatment costs and wastewater collection costs. Keniston said that the wastewater treatment
fund’s expenses are paid by the plant partners including Palo Alto and that those wastewater
treatment costs are an expense for the wastewater collection utility. Interim Utilities Director
Shikada said that the wastewater conveyance is a Utilities activity and that wastewater
treatment is a Public Works activity and that the combined costs are paid for by ratepayers.
Wastewater Collection Utility expenses include the treatment costs, which are a pass through
expense from the wastewater treatment plant.
Commissioner Schwartz noted that the wastewater collection operations costs increased
significantly from FY 2015 to FY 2016. Keniston said that this was due to a one-year accounting
anomaly. Assistant Director Jane Ratchye said that the three primary costs buckets for the
wastewater collection fund include: 1) operations costs for wastewater collection, which are
rising at 2-3% per year; 2) CIP costs for wastewater collection, which are rising at 2-3% per year;
and 3) wastewater treatment costs, which are rising at 5-6% per year. The treatment costs that
are passed through to the wastewater collection utility are the main driver for increasing
costs—and, therefore, rates.
Allen pointed out that his breakdown of the wastewater treatment expenses showed the costs
in terms of operations, minor CIP and major CIP debt service. He noted that there was a major
jump in major CIP debt service in FY 2019 when the dewatering facility would go on line.
Commissioner Eglash reiterated the difficulty in explaining that total wastewater collection
expenses are rising at 4-5% per year, but we are asking for rate increases of 9-10% per year
without driving the reserves below the minimum. He said that a better explanation must be
forthcoming or the projected expenses should be reduced.
Public Comment
Herb Borock said that wastewater treatment plant costs estimates for the future are increasing
dramatically, but that no explanation has been provided for the CIP plans at the treatment
plant. He said that Council has approved a plan to replace the incinerator with a dewatering
and load-out facility and that the current plan is to have an anaerobic digester at the plant. He
said that the cost for the anaerobic digester keep increasing dramatically. He said it’s unclear
what assumption is in the cost projections regarding what happens after the incinerator is
dismantled – will we keep using the haul out facility, or will something be built on site to handle
the sludge. Trying to predict future costs depends on the plan and how easy it would be for
Council to change direction. He said that the long-term facilities plan at treatment plant should
be reviewed again by Council since there are choices about what to do that have impacts on
greenhouse gas emissions. He also commented on the Proposition 218 noticing process saying
that the Council should support the rate proposals prior to staff issuing the Proposition 218
notices.
Commissioner Eglash said that in order to support the proposal, he would need a better
understanding of the revenues and expenses over the years. Ratchye pointed to page 24 of the
Wastewater Collection Financial Plan (Appendix A: Wastewater Collection Financial Forecast
Detail) that is attached to the UAC memo and reminded the UAC that the reserve structure was
changed in FY 2015 to lower the reserve amounts and that at the time of the change, there was
significant money in the reserves that was placed initially in the new Rate Stabilization Reserve,
which would normally have a zero balance. Over FY 2015 and FY 2016, all the funds in the Rate
Stabilization Reserve will be drawn down to zero. She said that reserves were being drawn
down in FY 2011, FY 2012, and FY 2013, then there were two anomalous lower cost years—in
FY 2014 when there was a one-year hiatus in new CIP budgeting and in FY 2015 when reduced
operations expenses due to an accounting anomaly—when reserves were somewhat
replenished. However, underlying those anomalies, costs were rising and revenues were not
keeping pace. As shown on page 24 of the plan, reserves will be drawn down again in FY 2016,
FY 2017 and FY 2018 before revenues catch up with expenses. She said that rate increases
need to be significant to get revenues to the levels that are needed to cover expenses.
Commissioner Eglash said that his understanding from that explanation is that we’ve allowed
revenues to fall below expenses during the last few years and we did that because costs were
increasing steadily and we chose not to increase rates. The reason we did not increase rates is
that reserves were available to draw on. In addition, there were two years with anomalously
low cost that somewhat replenished reserves, but we are now at the point when we must
increase revenues. He said that he can now see this on page 24 of the plan (line 20: into/(out
of) reserves), which shows that reserves were drawn down in FY 2011 through FY 2013, were
replenished in the anomalous years of FY 2014 and FY 2015, but that reserves will be drawn
down again in FY 2016, FY 2017 and FY 2018 before revenues cover expenses. He said that
reviewing line 18: (total uses of funds) shows that expenses increased slightly from FY 2012 to
FY 2013, but increased about $3.6 million from FY 2013 to FY 2016 ignoring the anomalous
years of FY 2014 and FY 2015. Then costs increase by about 5% from FY 2017 and onward. He
said that the costs increases have been hidden from customers. He said that even with adding
$4 million to reserves in FY 2014 and FY 2015, that a 9% increase in revenue is needed. He said
that it seems like with costs increasing at about 5% per year, we should be fine with 5% per
year rate increases. Ratchye pointed out that a one-time adjustment into reserves doesn’t help
much with ongoing cost increases whereas a 9% rate increase raises revenue to a new base
level upon with a subsequent 9-10% rate increase will increase revenues even more with the
power of compounding.
Commissioner Eglash said that he was beginning to understand the issue by examining the lines
on page 24 of the plan showing the “Total Sources of Funds” and the “Total Uses of Funds,”
which show that revenues have not been keeping up with expenses for years. Keniston says
that revenues have not kept up with expenses for a period beyond the years shown on the
chart on page 24 and was the case in FY 2009 and FY 2010 as well. Commissioner Eglash said
that we have been in a long period when rates provided insufficient revenues to cover normal
year expenses (ignoring FY 2014 and FY 2015). He asked how revenues could lag expenses for
up to 7 years. Ratchye said that the answer to that question is that reserves were high and that
the anomalous two years of lower expenses made calling for rate increases hard to justify. In
addition, the change to the reserve structure in FY 2015 lowered the amount of reserves that
were considered sufficient—and this is the case for all funds, not just the Wastewater
Collection Fund.
Commissioner Eglash said that the reserves were reduced when we realized that we had more
than we needed and we’ve been slowing consuming them over the years and that all customers
have been the beneficiaries for several years of holding the line on rates by using the financial
reserves. The day of reckoning has been delayed due to the two anomalous years of low
expenses. He said that with no rate increase, we would have a $3 million deficit and we don’t
have enough reserves to cover that and we need to get back to a place where income covers
expenses and staff’s proposal phases in rate increases so that we don’t get to that place until FY
2019.
Commissioner Schwartz agreed that the public has been insulated from the increasing costs so
now we need to raise rates to cover costs. This can be presented as saving the customers over
the last several years when rate increases were low.
Commissioner Eglash said that a chart comparing revenues to costs would show the years when
there was a deficit and costs were not covered by revenues and for how long this went on. It is
the same as if your salary was staying the same, but rent climbs and when you deplete your
savings, you have a problem and can’t afford the rent.
Chair Foster said that the Council made decisions in past to delay rate increases and now the
rates must increase. He said that he recalls that in the past several years, moderate rate
increases could have been proposed, but the case for them was somewhat borderline and that
there was value in a zero rate increase for the community knowing that, sooner or later, the
rates would have to increase. Ratchye agreed and recalled that these conversations occurred
every year; for example, last year, staff proposed a 3% gas rate increase followed by a 4%
increase the following year, but the feedback was that a 3% increase was so low that it’s not
worth it and would be better to have no rate increase and a 7% in the following year. Chair
Foster said that there is a desire to insulate customers from rate increases and that, even with a
delayed higher rate increase, the customers are not actually paying more over the whole
period.
Commissioner Ballantine noted that (on the chart on page 24) the allocated charges (line 12)
are anomalously low in FY 2015 and that for FY 2016 and forward, those costs are rising. He
said that the low cost in FY 2015 could be due to an operational cost saving that year that could
be found in future years, but the future forecasts do not include any cost savings that may
actually accrue.
Commissioner Eglash pointed out the reduced cost for FY 2014 could be repeated in the future,
but that the projections show costs only increasing, which may not reflect reality. Ratchye
pointed out that the reduced CIP costs in FY 2014 was a cause for consternation in the past as
the UAC and Council was concerned that it signaled a slowdown in infrastructure replacement.
However, it was only a pause in new funding for CIP to allow staff to catch up to CIP projects in
the queue. She also pointed out that the allocated cost line item referred to by Commissioner
Ballantine is not related to operational cost savings, but are the costs allocated from the
services provided by the City such as HR, City attorney, finance department, etc. and that the
reduced charges in FY 2015 were related to an accounting anomaly. Both these one-time cost
reductions are not related to finding efficiencies were found and that these efficiencies won’t
be found in the future.
Commissioner Eglash said that he was now adequately satisfied with the explanations for the
need for the rate increase and supports going forward with the staff recommendation.
ACTION:
Commissioner Danaher made a motion that the UAC recommend that the Council adopt
resolutions approving the FY 2017 Wastewater Collection Financial Plan and increasing
wastewater rates by amending Rate Schedules S-1 (Residential Wastewater Collection and
Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6 (Restaurant Wastewater
Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial
Discharger). Commissioner Schwartz seconded the motion. The motion carried unanimously
(5-0) with Chair Foster, Commissioners Ballantine, Danaher, Eglash, and Schwartz voting yes
and Vice Chair Cook and Commissioner Hall absent.
Attachment C
*NOT YET APPROVED *
Resolution No. _________
Resolution of the Council of the City of Palo Alto Increasing
Wastewater Rates by Amending Rate Schedules S-1 (Residential
Wastewater Collection and Disposal), S-2 (Commercial Wastewater
Collection and Disposal), S-6 (Restaurant Wastewater Collection and
Disposal) and S-7 (Commercial Wastewater Collection and Disposal –
Industrial Discharger)
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.
B. On June 13, 2016, the City Council held a full and fair public hearing regarding the
proposed rate increase and considered all protests against the proposals.
C. As required by Article XIII D, Section 6 of the California Constitution and
applicable law, notice of the June 13, 2016 public hearing was mailed to all City of Palo Alto
Utilities wastewater customers by April 29, 2016.
D. The City Clerk has tabulated the total number of written protests presented by
the close of the public hearing, and determined that it was less than fifty percent (50%) of the
total number of customers and property owners subject to the proposed wastewater rate
amendments, therefore a majority protest does not exist against the proposal.
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 S-1 (Residential Wastewater Collection and Disposal) is hereby amended to read
as attached and incorporated. Utility Rate Schedule S-1, as amended, shall become effective
July 1, 2016.
/ /
/ /
/ /
160322 sdl 6053687
CMR #6932: ATTACHMENT L
Attachment C
*NOT YET APPROVED *
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule S-2 (Commercial Wastewater Collection and Disposal) is hereby amended to read
as attached and incorporated. Utility Rate Schedule S-2, as amended, shall become effective
July 1, 2016.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule S-6 (Restaurant Wastewater Collection and Disposal) is hereby amended to read
as attached and incorporated. Utility Rate Schedule S-6, as amended, shall become effective
July 1, 2016.
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) is
hereby amended to read as attached and incorporated. Utility Rate Schedule S-7, as amended,
shall become effective July 1, 2016.
SECTION 5. The Council finds that the revenue derived from the wastewater rates
approved by this resolution do not exceed the funds required to provide water service, and the
revenue derived from the adoption of this resolution shall be used only for the purposes set
forth in Article VII, Section 2, of the Charter of the City of Palo Alto.
SECTION 6. The Council finds that 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.
SECTION 7. The Council finds that the adoption of this resolution changing
wastewater collection 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.
/ /
/ /
/ /
/ /
160322 sdl 6053687
Attachment C
*NOT YET APPROVED *
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
160322 sdl 6053687
RESIDENTIAL WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-1-1 Effective 7-1-20156
dated 7-1-20125 Sheet No S-1-1
A. APPLICABILITY:
This schedule applies to each occupied residential dwelling unit.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides wastewater service.
C. RATES:
Per Month
Each domestic dwelling unit ..................................................................................................
$3134.8395
D. SPECIAL NOTES:
1. Any dwelling unit being individually served by a water, gas, or electric meter will be
considered continuously occupied.
2. For two or more occupied dwelling units served by one water meter, the monthly wastewater
charge will be calculated by multiplying the current wastewater rate by the number of
dwelling units.
3. Each developed separate lot shall have a separate service lateral to a sanitary main or
manhole.
{End}
ATTACHMENT D
COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-2-1 Effective 7-1-20156
dated 7-1-20125 Sheet No S-2-1
A. APPLICABILITY:
This schedule applies to all commercial establishments other than those served under Utility Rate
Schedule S-1 (Domestic Residential Wastewater Collection and Disposal), Rate Schedule S-6
(Restaurant Wastewater Collection and Disposal) or Rate Schedule S-7 (Commercial
Establishments Wastewater Disposal – Industrial Discharger).
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides wastewater services.
C. RATES:
1. Minimum Charge per connection per month .............................................................$3134.8395
2. Quantity Rates, per 100 cubic feet (See Section D.1) ............................................. $6.7116
D. SPECIAL NOTES:
1. The monthly charge for the quantity rate set forth in Section C.2 of this rate schedule will
be based upon the average water usage for the months of January, February and March,
and applied in the following July. If a water meter is identified as exclusively serving
irrigation landscaping, such meter will be exempted from wastewater charge calculations.
Customers without an applicable usage history will be charged at the minimum monthly
charge until such time as such usage may reasonably be established by the City of Palo
Alto Utilities Department.
2. The City of Palo Alto Utilities Department may require wastewater metering facilities, in
which case service will be governed by terms of a special agreement between the City
and the Customer.
{End}
RESTAURANT WASTEWATER COLLECTION AND DISPOSAL
UTILITY RATE SCHEDULE S-6
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-6-1 Effective 7-1-20156
dated 7-1-20125 Sheet No S-6-1
A. APPLICABILITY:
This schedule applies to all restaurants.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides wastewater services.
C. RATES:
1. Minimum charge per connection per month ......................................................... $3134.8395
2. Quantity Rates, per 100 cubic feet of monthly metered water usage ......................... $
910.5238
D. SPECIAL NOTES:
1. The City of Palo Alto Utilities Department may require wastewater metering facilities, in
which case service will be governed by terms of a special agreement between the City and
the Customer.
{End}
COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL
–INDUSTRIAL DISCHARGER
UTILITY RATE SCHEDULE S-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No S-7-1 Effective 7-1-20156
dated 7-1-20125 Sheet No S-7-1
A. APPLICABILITY:
This schedule applies to any establishment requiring sampling of industrial discharges in excess
of 25,000 gallons per day, or special discharge monitoring, as defined in Rule and Regulation 23,
Section D.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides wastewater services.
C. RATES:
1. Collection System Operation, Maintenance, and Infiltration Inflow:
$1.7894 per 100 cubic feet of metered water use.
2. Advanced Waste Treatment Operations and Maintenance Charge:
$1.1405 per 100 cubic feet of metered water use
3. $ 247.56 per 1000 pounds (lbs) of COD (Chemical Oxygen Demand)
4. $ 596.62 per 1000 lbs of SS (Suspended Solids)
5. $ 3,983.85 per 1000 lbs of NH3 (Ammonia)
6. $ 14,781.25 per 1000 lbs of toxics (chromium, copper, cyanide, lead, nickel, silver, and zinc)
D. SPECIAL NOTES:
1. Water usage will be determined as defined in Rule and Regulation 23, Section D. If a
water meter is identified as exclusively serving irrigation landscaping, such meter will be
exempted from wastewater charge calculations.
2. The City of Palo Alto Utilities Department may require wastewater metering facilities, in
which case service will be governed by terms of a special agreement between the City of
Palo Alto and the Customer.
3. Charges for large discharges will be determined on the basis of sampling as outlined in
Utilities Rule and Regulation 23, Section D. However, for purposes of arriving at an
accurate flow estimate, discharge meters, if installed, can be utilized to measure outflow
for billing purposes. Annual charges will be determined and allocated monthly for billing
purposes.
{End}
Attachment A
*NOT YET APPROVED *
Resolution No. _________
Resolution of the Council of the City of Palo Alto Approving the
FY 2017 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 2017 Water Utility Financial Plan.
SECTION 2. The Council hereby approves the transfer of $4.7 million in FY 2016 from
the Rate Stabilization Reserve to the Operations Reserve, as described in the FY 2017 Water
Utility Financial Plan approved via this resolution.
/ /
/ /
/ /
/ /
/ /
//
060322 sdl 6053681
CMR #6932: ATTACHMENT M
Attachment A
* NOT YET APPROVED *
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
060322 sdl 6053681
FY 2017 WATER
UTILITY
FINANCIAL PLAN
FY 2017 TO FY 2026
WATER UTILITY FINANCIAL PLAN
February 2016 2 | Page
FY 2017 WATER UTILITY
FINANCIAL PLAN
FY 2017 TO FY 2026
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 2017 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 ..................................................................................... 9
Section 4: Utility Overview .................................................................................................... 9
Section 4A: Water Utility History ................................................................................................. 9
Section 4B: Customer Base ........................................................................................................ 10
Section 4C: Distribution System ................................................................................................. 11
Section 4D: Cost Structure and Revenue Sources ...................................................................... 11
Section 4E: Reserves Structure ................................................................................................... 12
Section 4F: Competitiveness ...................................................................................................... 12
Section 5: Utility Financial Projections ................................................................................. 13
Section 5A: Load Forecast .......................................................................................................... 13
Section 5B: FY 2011 to FY 2015 Cost and Revenue Trends ........................................................ 14
Section 5C: FY 2015 Results ....................................................................................................... 15
Section 5D: FY 2016 Projections ................................................................................................ 16
Section 5E: FY 2017-FY 2026 Projections ................................................................................... 16
Section 5F: Risk Assessment and Reserves Adequacy ............................................................... 18
Section 5G: Alternate Scenarios................................................................................................. 19
WATER UTILITY FINANCIAL PLAN
February 2016 3 | Page
Section 5H: Long-Term Outlook ................................................................................................. 21
Section 6: Details and Assumptions ..................................................................................... 21
Section 6A: Water Purchase Costs ............................................................................................. 21
Section 6B: Operations .............................................................................................................. 23
Section 6C: Capital Improvement Program (CIP) ....................................................................... 24
Section 6D: Debt Service ............................................................................................................ 27
Section 6E: Other Revenues ....................................................................................................... 28
Section 6F: Sales Revenues ........................................................................................................ 28
Section 7: Communications Plan .......................................................................................... 28
Appendices ......................................................................................................................... 30
Appendix A: Water Utility Financial Forecast Detail ................................................................. 31
Appendix B: Water Utility Capital Improvement Program (CIP) Detail ..................................... 33
Appendix C: Water Utility Reserves Management Practices ..................................................... 35
Appendix D: Description of Water Utility Operational Activities ............................................... 38
Appendix E: Sample of Water Utility Outreach Communications ............................................. 39
WATER UTILITY FINANCIAL PLAN
February 2016 4 | Page
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
By FY 2026, costs for the Water Utility will increase 24% over FY 2016 levels, as shown in Table
1. Most of increase is related to the cost of water supplied by the San Francisco Public Utilities
Commission (SFPUC), which is projected to rise 34% in that time due to the issuance of long
term debt to finance major seismic improvements to the Hetch Hetchy transmission system.
The cost of replacing the water mains in the City’s water distribution system has also increased
substantially from the low costs seen during the recent recession, but is projected to remain
relatively level during the forecast horizon. Staff projects only inflationary increases to most
other costs over the forecast period.
Table 1: Expenses for FY 2015 to FY 2026 (Thousand $’s)
Expenses
($000)
FY
2015
(act.)
FY
2016
(est.)
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
Water
Purchases
15,670
17,645
18,899
19,976
21,177
21,259
21,475
21,697
21,915
22,302
23,652
23,426
Operations 15,826 17,442 17,065 17,509 17,960 18,429 18,863 19,276 19,703 20,135 20,578 21,033
Capital
Projects 8,580 11,039 10,216 10,012 10,252 10,555 10,867 11,189 11,519 11,860 12,211 12,572
TOTAL
40,077
46,127
46,180
47,498
49,390
50,243
51,205
52,161
53,137
54,297
56,441
57,031
To cover these increases in costs, revenues (and therefore rates) need to increase over the next
several years to balance costs and revenues. The rate trajectory shown in Table 2 assumes that
WATER UTILITY FINANCIAL PLAN
February 2016 5 | Page
the drought continues through 2017 and that consumption does not return to its pre-drought
levels. Table 2 also compares current rate projections to those projected in last year’s Financial
Plan.
Table 2: Projected Water Rate Trajectory for FY 2017 to FY 2026
Projection FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
Current 6% 9% 9% 6% 2% 2% 2% 3% 5% 3%
Last year 8% 8% 8% 3% 1% 2% 3% 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 2017. At that point the Emergency Water Supply and Storage Project and the
Water System Master Plan will have been completed, so capital costs will be known with more
certainty. Table 3 shows the projected reserve transfers over the forecast period.
Table 3: Transfers To/(From) Reserves for FY 2016 to FY 2026 ($000)
Reserve FY 2016 FY 2017 FY 2018 to FY 2026
Capital Improvement - (4,000) -
Rate Stabilization (4,700) (1,867) -
Operations 4,700 5,867 -
SECTION 2B: SUMMARY OF PROPOSED ACTIONS
Staff proposes the following actions for the Water Utility in FY 2016:
1. Transfer $4.7 million from the Rate Stabilization Reserve to the Operations Reserve. See
Section 3D: Proposed Reserve Transfers for more details.
Staff proposes the following actions for the Water Utility in FY 2017:
1. Increase rates as shown in Section 3B: Current and Proposed Rates. These changes are
projected to increase the system average rate by roughly 6%.
2. Transfer $1.867 million from the Rate Stabilization Reserve to the Operations Reserve.
See Section 3D: Proposed Reserve Transfers for more details.
3. Transfer $4 million from the CIP Reserve to the Operations Reserve.
SECTION 3: DETAIL OF FY 2017 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
WATER UTILITY FINANCIAL PLAN
February 2016 6 | Page
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., as well as
Raftelis’ 2015 memoranda updating the 2012 Study and analyzing drought rates (Staff Report
2676). 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 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.
SECTION 3B: CURRENT AND PROPOSED RATES
The current rates and surcharges were effective on September 1, 2015. Rates were re-aligned
to the results of an updated cost of service study, performed by Raftelis Financial Consultants,
Inc. (RFC), which both developed the drought surcharges and reviewed the City’s water rate
methodology and structure in light of recent court decisions interpreting the state
constitution’s cost of service requirements. RFC examined and validated both the City’s
methodology and rate structure as fundamentally sound, recommending 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 a 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 and Table 6 show the current and proposed monthly service charges for all rate
schedules. Staff evaluated grouping the smallest meter sizes (5/8”, 3/4” and 1” meters) into
one charge category, but confirmed that there is a significant variation in actual demand on the
water distribution system among customers using each of these water sizes. As such, staff is
not recommending a change to the monthly service charge schedule.
Table 5 shows the consumption charges. Table 7 shows the current and proposed drought
surcharge levels. The basis for calculating these charges is staff’s annual assessment of the
water utility’s financial position, as well as the cost of service methodology from the 2012 Palo
Alto Water Cost of Service & Rate Study and 2015 update, prepared by RFC.
WATER UTILITY FINANCIAL PLAN
February 2016 7 | Page
Table 4: Current and Proposed Monthly Service Charges
Meter
Size
Monthly Service Charge
($/month based on meter size) Change
Current (9/1/15) Proposed (7/1/16) $/mo %
5/8” $16.03 $16.77 $0.74 5%
3/4” $21.50 $22.60 $1.10 5%
1” $32.45 $34.26 $1.81 6%
1 ½” $59.83 $63.40 $3.57 6%
2” $92.67 $98.37 $5.70 6%
3” $196.70 $209.11 $12.41 6%
4” $350.00 $372.31 $22.31 6%
6” $716.82 $762.81 $45.99 6%
8” $1,319.07 $1,403.94 $84.87 6%
10” $2,085.57 $2,219.92 $134.35 6%
12” $2,742.56 $2,919.34 $495.89 6%
Table 5: Current and Proposed Water Consumption Charges
Current
(9/1/15)
Proposed
(7/1/16)
Change
$/CCF %
W-1 (Residential) Volumetric Rates ($/CCF)
Tier 1 Rates 5.93 6.30 0.37 6%
Tier 2 Rates 8.38 8.82 0.44 5%
W-2 (Construction) Volumetric Rates ($/CCF)
Uniform Rate 6.92 7.32 0.40 6%
W-4 (Commercial) Volumetric Rates ($/CCF)
Uniform Rate 6.92 7.32 0.40 6%
W-7 (Irrigation) Volumetric Rates ($/CCF)
Uniform Rate 8.29 8.72 0.43 5%
Table 6: Current and Proposed Monthly Fire Service Charges
Meter
Size
Monthly Service Charge
($/month based on meter size) Change
Current (9/1/15) Proposed (7/1/16) $/mo %
2” $3.43 $3.79 $0.36 10%
4” $21.22 $23.42 $2.20 10%
6” $61.63 $68.03 $6.40 10%
8” $131.34 $144.97 $13.63 10%
10” $236.20 $260.70 $24.50 10%
12” $381.52 $421.11 $39.59 10%
WATER UTILITY FINANCIAL PLAN
February 2016 8 | Page
Table 7: Current and Proposed Drought Surcharge Charges
Current
(9/1/15)
Proposed
(7/1/16)
Change
$/CCF %
10%/15% Reduction ($/CCF)
W-1 Residential (Tier 1) 0.19 0.20 $0.01 5%
W-1 Residential (Tier 2) 0.55 0.58 0.03 5%
W-4 (Non-residential and Master
Metered Multi-Family) 0.24 0.26 0.02 8%
W-7 (Irrigation) 0.51 0.53 0.02 4%
20% Reduction ($/CCF)
W-1 Residential (Tier 1) 0.39 0.43 0.04 10%
W-1 Residential (Tier 2) 1.14 1.21 0.07 6%
W-4 (Non-residential and Master
Metered Multi-Family) 0.49 0.53 0.04 8%
W-7 (Irrigation) 1.18 1.25 0.07 6%
25% Reduction ($/CCF)
W-1 Residential (Tier 1) 0.59 0.64 0.05 8%
W-1 Residential (Tier 2) 1.76 1.85 0.09 5%
W-4 (Non-residential and Master
Metered Multi-Family) 0.72 0.77 0.05 7%
W-7 (Irrigation) 1.93 2.02 0.09 5%
SECTION 3C: BILL IMPACT OF PROPOSED RATE CHANGES
Table 8 shows the impact of the proposed July 1, 2016 rate changes on the median residential
bill. The average increase is roughly 6%, but some customers may see slightly higher or lower
increases due to slight changes in the composition of the utility’s costs. Table 8 is presented
assuming continued activation of the drought surcharge at the 20% reduction level.
Table 8: Impact of Proposed Water Rate Changes on Residential Bills
Usage
(CCF/month)
Bill under
Current Rates
(9/15/15)
Bill under
Proposed
Rates (7/1/16)
Change
$/mo. %
4 $ 41.31 $ 43.69 $ 2.38 6%
(Winter median) 7 63.47 67.18 3.71 6%
(Annual median) 9 82.51 87.24 4.73 6%
(Summer median) 14 130.11 137.39 7.28 6%
25 234.83 247.72 12.89 5%
Table 9 shows the impact of the proposed July 1, 2016 rate changes on various representative
commercial customer bills. This comparison includes continuation of the drought surcharge at
the 20% reduction level.
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February 2016 9 | Page
Table 9: Impact of Proposed Water Rate Changes on Commercial Bills
Usage
(CCF/month)
Bill under
Current Rates
(9/15/15)
Bill under
Proposed Rates
(7/1/16)
Change
$/mo. %
Commercial (W-4) (5/8” meters)
(Annual median) 12 $ 104.95 110.97 6.02 6%
(Annual average) 64 490.27 519.17 28.90 6%
Irrigation (W-7) (1 ½” meters)
(Winter median) 9 145 153 8 6%
(Summer median) 37 410 432 22 5%
(Winter average) 56 590 622 32 5%
(Summer average) 199 1,944 2,047 103 5%
SECTION 3D: PROPOSED RESERVE TRANSFERS
In the FY 2016 Financial Plan, several transfers between reserves were discussed for FY 2016.
CIP related funds were transferred out of the Reappropriations Replacement into the CIP
Reserve, and $5.5 million was proposed to be transferred from the Rate Stabilization Reserve
into the Operations Reserve.
Due to the long running drought in California, and as lower expenses in FY 2015 resulted in
higher ending reserve balances than initially projected, staff recommends reducing the $5.5
million transfer from the Rate Stabilization Reserve in FY 2016 to $4.7 million, and proposes
transferring $1.87 million 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.
A proposed $4 million transfer from the CIP Reserve to the Operations Reserve was also
discussed in the FY 2016 Financial Plan. This transfer will help fund the Operations Reserve, as
well as bring the CIP Reserve closer to its target reserve level. 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
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February 2016 10 | Page
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.
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, nearly completed,
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.
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.
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.
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Figure 1: Cost Structure (FY 2015)
39%
40%
21%
Water Purchases
Operations
Capital
Figure 2: Revenue Structure (FY 2015)
93%
7%
Sales of Water
Other Revenue
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 39% of the
Water Utility’s costs in FY 2015.
Operational costs represented roughly
40%, and capital investment was
responsible for the remaining 21%.
Water purchase costs are projected to
rise to roughly 41% of costs by FY 2026.
The Water Utility receives 93% 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.
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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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.
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.
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Table 10: Residential Monthly Water Bill Comparison
Usage
(CCF/month)
Residential monthly bill comparison ($/month)*
As of February 2016
Palo
Alto
Menlo
Park
Mountain
View Hayward
Redwood
City
Santa
Clara
4 41.31 44.11 31.46 28.68 43.69 16.64
(Winter median) 7 63.47 62.25 48.77 48.42 57.13 29.12
(Annual median) 9 82.51 74.36 60.31 61.58 66.77 37.44
(Summer median) 14 130.11 106.12 89.16 96.24 95.46 58.24
25 234.83 176.80 187.23 181.49 182.14 104.00
* 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.
Figure 3: Historical Water Consumption
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Figure 4 shows the forecast of water consumption through FY 2026, as denoted by the dotted
line.
Figure 4: Forecast Water Consumption
Palo Alto is currently experiencing drought conditions with State mandated 24% water use
restrictions in effect. The current forecast assumes current conditions continue through FY
2017, with the drought easing in spring of 2017. It also assumes consumption only returns to
50% of its pre-drought levels, which is consistent with patterns experienced in prior droughts.
SECTION 5B: FY 2011 TO FY 2015 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 2011 and 2015. The
increases were primarily related to water purchase costs, which increased 47% from $10.7
million in FY 2011 to $15.7 million in FY 2014. 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 there was a hold on new
CIP spending to permit completion of a backlog of projects. This budgetary hold allowed for
backlogged water main replacement projects to be started, which consumed surplus capital
reserves.
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Figure 5: Water Utility Expenses, Revenues, and Rate Changes:
Actual Costs through FY 2015 and Projections through FY 2026
SECTION 5C: FY 2015 RESULTS
In early 2014, when proposing rate adjustments to be effective on July 1, 2014, staff forecast
the need for a 4% rate increase. However, higher sales in FY 2014, and projected increased
sales in FY 2015 increased reserves such that no rate change was needed for FY 2015. Forecast
revenues for FY 2015 were actually $41.2 million instead of the projected revenues of $36.4
million. The largest reason for this was a return of funds related to a return of CIP funds.
Connection and capacity fees were, and have continued to be, higher than forecast. Actual
expenses for FY 2015 were $40.1 million compared to the projected expenses of $38.7 million.
Table 11 summarizes the variances from forecast.
Actual Projected
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Table 11: FY 2015, Actual Results vs. 2014 Forecast
Net Cost/
(Benefit)
Type of
change
Return of capital project funds ($2,667,000) Revenue increase
Connection and capacity fees higher than forecast ($1,043,000) Revenue increase
Water supply costs lower than expected (700,000) Cost savings
Other revenues (interest income, etc.) were higher than
forecasted
($1,152,000) Revenue increase
Operations costs lower than expected (1,300,000) Cost savings
Capital project costs higher than projected 3,500,000 Cost increase
Net Cost / (Benefit) of Variances ($3,362,000)
SECTION 5D: FY 2016 PROJECTIONS
Several factors have contributed to changes between last year’s forecast and this year’s
projections. Most notably, the ongoing drought has reduced projected FY 2016 sales by around
12%. The activation of a drought rate surcharge in September 2015, however, means that FY
2016 revenues are projected to be only 4.6% lower than forecast. On the cost side, reduced
purchases and lower than forecast wholesale supply rates from the SFPUC are expected to
result in supply cost decreases of 13.7% for FY 2016. Notable are projected CIP cost increases of
$2.3 million, or 26%, mainly due to general cost increases and completing some projects. 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
Lower purchase costs ($2,809,000) Cost savings
Higher misc. revenues (interest income, fees) ($111,000) Revenue increase
Lower sales revenue $2,039,000 Revenue decrease
Capital project costs higher than projected $2,315,000 Cost increase
Higher Operations budgets $163,000 Cost increase
Net Cost / (Benefit) of Variances $1,507,000
SECTION 5E: FY 2017-FY 2026 PROJECTIONS
As can be seen in Figure 5 above, costs for the Water Utility are not projected to change
significantly between FY 2016 and FY 2017. However, as discussed earlier, water supply costs
are the main reason for the cost increases. Water supply costs are projected to increase by 7%
in FY 2017 and grow steadily over the coming years. Operations costs include will increase by $1
million in FY 2017 for emergency generator leasing and maintenance, but will otherwise
roughly match inflation through the forecast period. 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%/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.
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Revenues are below expenses and will require annual rate increases between 6% and 9%
through FY 2020 to keep up with these cost increases even with the use of the Rate
Stabilization Reserve to spread the increases over multiple years. Costs have already increased
substantially over the last few years, and revenues have not kept pace. Sales revenues were
adequate in FY 2014 due to lower than average CIP expenditures in that year, but starting in FY
2015 deficits are forecast. To help close this gap, revenues were increased by 12% in FY 2016.
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 $4 million by the end of FY 2017. 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 end in FY 2017, and that the request for
water usage reductions remains at 24%. If the drought worsens or continues longer than
projected, the level of the drought surcharge currently in place may need to be reviewed. The
forecast also assumes that water main replacement project costs do not increase by more than
inflation. This is a major uncertainty as staff awaits the results of the Water Master Plan study
to determine the advisable water main replacement strategy.
Figure 6: Water Utility Reserves
Actual Reserve Levels through FY 2015 and Projections through FY 2026
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February 2016 18 | Page
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. Note that while the Operations Reserve is above the
target level in FY 2017, it falls to below the target (but above the minimum) in FY 2018 through
FY 2020.
Figure 7: Operations Reserve Adequacy
Table 13 summarizes the risk assessment calculation for the Water Utility through FY 2021. The
same methodology is used for FY 2022 through FY 2026 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 2017 FY 2018 FY 2019 FY 2020 FY 2021
Total non-commodity revenue $18,406 $20,744 $23,233 $24,976 $25,226
Max. revenue variance, previous ten years 13% 13% 13% 13% 13%
Risk of revenue loss $1,819 $2,050 $2,296 $2,468 $2,492
CIP Budget $10,216 $10,012 $10,252 $10,555 $10,867
CIP Contingency @10% $1,022 $1,001 $1,025 $1,056 $1,087
Total Risk Assessment value $2,840 $3,051 $3,321 $3,523 $3,579
SECTION 5G: ALTERNATE SCENARIOS
At the UAC’s February 2016 meeting, it was suggested that staff prepare two alternate
scenarios for rate increases. The first (“Target”) scenario keeps the Operations Reserve at or
near the Target level throughout the forecast period as shown in Figure 8 below. The second
(“Minimum”) has no rate change in FY 2017 and lets the Operations Reserve stay at minimum
for five years as shown in Figure 9 below. Both options as well as the proposed rate
adjustments are shown in Table 14.
Table 14: Projected Water Rate Trajectory for FY 2017 to FY 2026
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
FY
2025
FY
2026
Proposed 6% 9% 9% 6% 2% 2% 2% 3% 5% 3%
Target 3% 20% 3% 2% 3% 3% 2% 4% 2% 4%
Minimum 0% 18% 7% 3% 3% 4% 3% 4% 3% 4%
The Target scenario requires a 3% rate increase (smaller than the proposed 6% increase) in FY
2017, but requires a very large rate increase (20%) in FY 2018 to make up for another year with
a significant deficit with revenues not covering costs. The level of the Operations Reserve in the
target scenario is shown in Figure 8 below.
The Minimum scenario also requires a significant rate increase (18%) in FY 2018 if no rate
change is implemented in FY 2017 with a large (7%) rate increase required for FY 2019. The
level of the Operations Reserve in the target scenario is shown in Figure 9 below.
Staff recommends a 6% water rate increase in FY 2017 to moderate the rate increases that are
projected in FY 2018 while keeping the Water Operations Reserve at healthy levels.
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Figure 8: Operations Reserve at Target Level
Figure 9: Operations Reserve at Minimum for FY 2018 through FY 2021
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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, currently 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.
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 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. 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
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February 2016 22 | Page
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 $3.75 per CCF in FY 2016, and is forecasted to increase to over
$5.00 per CCF by FY 2025. Figure 10 shows the SFPUC’s actual wholesale water rate since FY
2009 and a projection through FY 2026. 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 add 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 a range for FY 2017 wholesale water rates of between $4
and $5 per CCF. In February, the SFPUC updated its estimate for FY 2017 to $4.05/CCF, but
there is much uncertainty surrounding the length of the drought and water usage by the
BAWSCA agencies. Since the State has mandated water use reductions for most BAWSCA
agencies by 20% or more, 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 10, this year’s projection of SFPUC wholesale rates has increased from the
previous year’s projection. If the drought ends in FY 2017 and sales increase (or at least don’t
decline further), then rate projections may level out. However, if snow and rain do not
materialize, current calls for restricted usage may continue or even be increased.
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Figure 10: 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 2011 to FY 2015 Operations costs (excluding debt service, rent, and transfers)
increased 3.5% per year on average (see Figure 11). The increases were driven by allocated
charges, which increased by 7% 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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February 2016 24 | Page
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 11: 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
Projected
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February 2016 25 | Page
• 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 15 shows the FY 2016 adopted budget, with actual spending and remaining budget as of
December 31, 2015. Also included is 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 15: Budgeted Water Utility CIP Spending ($000)
*Includes unspent funds from previous years carried forward or reappropriated into the current
fiscal year
**Equal to Reserve for Reappropriations + Reserve for Commitments.
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.
WATER UTILITY FINANCIAL PLAN
February 2016 26 | Page
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%. This
makes it a good time to re-evaluate the program. 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. Currently the utility replaces about 1.3% of the
system each year, which is an 80-year replacement cycle. The master planning process may
reveal a need for a higher main replacement rate, or may reveal that pipes are currently in good
condition and a lower rate of replacement is sufficient. Results are being reviewed and follow
up questions prepared.
If this study determines that a lower rate of main replacement is acceptable, increases to water
main replacement project budgets may not be necessary. Likewise, if the per-mile costs of main
replacement come down, that would also reduce or eliminate the need to increase main
replacement budgets. A combination of reduced costs and a reduced rate of main replacement
could even allow CPAU to reduce those budgets. However, if per-mile main replacement costs
stay at their current levels and the study reveals the need to maintain the same rate of main
replacement (or a higher rate), CPAU’s CIP costs would rise.
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. The final
report with recommendations is expected to be available in 2016.
Ongoing Projects and Customer Connections are projected to cost approximately $1.9 million in
FY 2016 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 2016 to FY 2020 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.
WATER UTILITY FINANCIAL PLAN
February 2016 27 | Page
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.
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 16:
Table 16: Water Utility Debt Service ($000)
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023
2009 Water Revenue Bonds,
Series A (net of grants) 2,002 2,012 2,031 2,046 2,064 2,079 2,101 2,151
2011 Utility Revenue Bonds,
Series A 657 657 656 654 656 657 657 657
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 17 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.
WATER UTILITY FINANCIAL PLAN
February 2016 28 | Page
Table 17: 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
SECTION 6E: OTHER REVENUES
The Water Utility receives most of its revenues from sales of water, but about 7% comes from
other sources. The largest revenue source in FY 2015 was a one-time return of previously
budgeted CIP dollars (36%). The next largest source is connection and capacity fees, which in FY
2015 represented 29% of revenue from sources other than water sales. The remainder
consisted of a variety of miscellaneous charges and transfers.
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 2017, 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
WATER UTILITY FINANCIAL PLAN
February 2016 29 | Page
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
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 blasts, 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.
WATER UTILITY FINANCIAL PLAN
February 2016 30 | Page
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 2011 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
2
3 WATER SUPPLY
4 Purchases 5,416,220 5,538,305 5,532,947 5,507,153 4,671,433 4,127,085 4,172,372 4,353,850 4,556,414 4,486,307 4,448,095 4,410,865 4,372,643 4,328,601 4,285,924 4,231,873
5 Sales 4,992,473 5,062,873 5,097,392 5,047,148 4,433,016 3,858,825 3,859,444 4,027,311 4,214,683 4,149,834 4,114,488 4,080,051 4,044,695 4,003,956 3,964,480 3,914,482
6 (530,686) -12.1%
7 BILL AND RATE CHANGES
8 Variable Charge (Supply)15%38%11%-16%25%22%7%2%2%2%2%2%2%3%3%3%
9 Variable Charge (Distribution)-7%-12%17%30%-16%10%5%15%14%9%2%2%2%3%3%6%
10 Change in System Average Rate 0%12%22%8%0%11%6%9%9%6%2%2%2%3%3%5%
11
12 STARTING RESERVES
13 Reappropriations (Non-CIP)54,000 20,000 - - - - - - - - - - - - - -
14 Commitments (Non-CIP)40,000 765,000 714,000 2,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000
15 Restricted for Debt Service 3,348,000 3,348,000 3,225,000 3,225,000 3,331,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000
16 Emergency Plant Replacement 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 - - - - - - - - - - -
17 Capital Reserve - - - - - 4,000,000 13,256,000 9,256,000 9,256,000 9,256,000 9,256,000 9,256,000 9,256,000 9,256,000 9,256,000 9,256,000
18 Rate Stabilization Reserve 17,037,000 10,639,000 7,996,000 17,272,000 20,133,000 6,567,000 1,867,000 - - - - - - - - -
19 Operations Reserve - - - - - 11,663,836 9,807,734 11,017,309 7,655,292 7,759,702 9,208,904 10,185,947 10,710,850 10,890,498 10,976,735 10,969,473
20 Unassigned - - - - - - - - - - - - - - - -
21 TOTAL STARTING RESERVES 21,479,000 15,772,000 12,935,000 21,499,000 24,811,000 25,893,836 28,593,734 23,936,309 20,574,292 20,678,702 22,127,904 23,104,947 23,629,850 23,809,498 23,895,735 23,888,473
22
23 REVENUES
24 Net Sales 26,133,998 30,673,882 36,647,924 39,029,262 33,654,549 36,263,267 38,159,141 40,715,075 46,016,043 48,155,815 48,584,946 49,023,735 49,587,825 50,566,700 51,576,926 53,401,555
25 Other Revenues and Transfers In 2,812,063 5,892,133 6,811,461 4,053,920 7,504,848 3,307,155 3,363,253 3,420,419 3,478,285 3,536,762 3,597,449 3,662,424 3,728,765 3,816,351 3,906,270 3,998,583
26 TOTAL REVENUES 28,946,061 36,566,015 43,459,385 43,083,182 41,159,397 39,570,422 41,522,394 44,135,494 49,494,328 51,692,577 52,182,395 52,686,158 53,316,590 54,383,051 55,483,196 57,400,138
27
28 EXPENSES 26.4%
29 Water Purchases 10,677,914 14,889,399 16,605,351 15,705,288 15,669,935 17,644,669 18,899,310 19,976,217 21,177,479 21,259,327 21,475,294 21,696,607 21,914,567 22,302,108 22,701,664 23,050,946
30 Operating Expenses
31 Administration
32 Allocated Charges 1,798,630 2,003,116 2,422,880 2,366,077 2,342,985 2,343,499 2,402,461 2,462,917 2,524,882 2,588,411 2,653,298 2,719,668 2,787,709 2,857,466 2,928,969 3,002,261
33 Rent 2,122,405 2,156,887 1,911,963 2,192,454 2,249,457 2,677,106 2,757,419 2,840,142 2,925,346 3,013,106 3,103,500 3,196,605 3,292,503 3,391,278 3,493,016 3,597,807
34 Debt Service 3,341,781 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
35 Transfers and Other Adjustments 200,286 301,963 2,241,793 335,808 63,612 376,108 383,630 391,302 399,129 407,111 415,253 423,558 432,030 432,030 432,030 432,030
36 Subtotal, Administration 7,463,102 7,847,952 9,795,801 8,114,546 7,874,923 8,619,319 8,762,826 8,917,030 9,070,214 9,229,266 9,394,893 9,563,393 9,736,794 9,905,326 10,078,567 10,256,650
37 Resource Management 575,834 552,972 557,910 570,040 488,331 601,238 621,475 642,529 664,121 686,511 706,216 724,410 743,231 762,742 782,766 803,316
38 Operations and Mtc 4,885,428 4,900,606 4,944,064 4,986,274 5,283,426 5,345,288 5,529,766 5,721,935 5,919,070 6,123,705 6,301,710 6,464,531 6,633,106 6,808,061 6,987,630 7,171,936
39 Engineering (Operating)247,488 301,278 338,659 381,502 358,128 447,404 463,096 479,457 496,243 513,680 528,735 542,422 556,602 571,328 586,444 601,959
40 Customer Service 1,476,175 1,544,608 1,584,759 1,677,926 1,821,447 2,027,659 2,098,960 2,173,305 2,249,589 2,328,837 2,397,182 2,459,257 2,523,568 2,590,368 2,658,935 2,729,318
41 Allowance for Unspent Budget - - - - - 401,476 (411,505) (424,995) (438,832) (453,167) (465,976) (477,939) (490,301) (503,100) (516,234) (529,711)
42 Subtotal, Operating Expenses 14,648,027 15,147,415 17,221,192 15,730,288 15,826,254 17,442,384 17,064,620 17,509,261 17,960,405 18,428,832 18,862,761 19,276,075 19,702,999 20,134,724 20,578,108 21,033,467
43 Capital Program Contribution 9,327,120 9,366,201 1,068,841 8,335,605 8,580,372 11,039,470 10,215,889 10,012,033 10,252,034 10,555,216 10,867,297 11,188,574 11,519,375 11,859,984 12,210,686 12,571,782
44 TOTAL EXPENSES 34,653,061 39,403,015 34,895,385 39,771,182 40,076,561 46,126,524 46,179,819 47,497,511 49,389,918 50,243,375 51,205,352 52,161,256 53,136,941 54,296,815 55,490,458 56,656,195
45
46 ENDING RESERVES
47 Reappropriations (Non-CIP)20,000 - - - - - - - - - - - - - - -
48 Commitments (Non-CIP)765,000 714,000 2,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000 347,000
49 Restricted for Debt Service 3,348,000 3,225,000 3,225,000 3,331,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000 3,316,000
50 Emergency Plant Replacement 1,000,000 1,000,000 1,000,000 1,000,000 - - - - - - - - - - - -
51 Capital Reserve - - - - 4,000,000 13,256,000 9,256,000 9,256,000 9,256,000 9,256,000 9,256,000 9,256,000 9,256,000 9,256,000 9,256,000 9,256,000
52 Rate Stabilization Reserve 10,639,000 7,996,000 17,272,000 20,133,000 6,567,000 1,867,000 - - - - - - - - - -
53 Operations Reserve - - - - 11,663,836 9,807,734 11,017,309 7,655,292 7,759,702 9,208,904 10,185,947 10,710,850 10,890,498 10,976,735 10,969,473 11,713,415
54 Unassigned - - - - - - - - - - - - - - - -
55 TOTAL ENDING RESERVES 15,772,000 12,935,000 21,499,000 24,811,000 25,893,836 28,593,734 23,936,309 20,574,292 20,678,702 22,127,904 23,104,947 23,629,850 23,809,498 23,895,735 23,888,473 24,632,415
56
57 OPERATIONS RESERVE
58 Min (60 days of non-capital expenses)- - - - 5,230,611 6,082,017 6,232,446 6,488,975 6,767,143 6,864,270 6,977,906 7,089,168 7,202,255 7,336,928 7,475,494 7,607,764
59 Target (90 days of non-capital expenses)- - - - 9,395,240 9,166,903 9,395,593 9,783,548 10,204,079 10,353,171 10,527,111 10,697,594 10,870,947 11,085,459 11,306,122 11,517,661
60 Max (120 days of non-capital expenses)- - - - 13,559,870 12,251,790 12,558,739 13,078,120 13,641,014 13,842,072 14,076,317 14,306,020 14,539,639 14,833,990 15,136,750 15,427,559
61 Risk Assessment Value 2,481,768 2,873,181 2,840,361 3,050,960 3,320,931 3,523,428 3,579,316 3,636,369 3,704,694 3,794,916 3,892,600 4,062,286
Appendix A (continued)
1 FISCAL YEAR FY 2011 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
2
3 REVENUES
4 Net Sales 90%84%84%91%82%92%92%92%93%93%93%93%93%93%93%93%
5 Other Revenues and Transfers In 10%16%16%9%18%8%8%8%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 31%38%48%39%39%38%41%42%43%42%42%42%41%41%41%41%
10 Operating Expenses
11 Administration
12 Allocated Charges 5%5%7%6%6%5%5%5%5%5%5%5%5%5%5%5%
13 Rent 6%5%5%6%6%6%6%6%6%6%6%6%6%6%6%6%
14 Debt Service 10%9%9%8%8%7%7%7%7%6%6%6%6%6%6%6%
15 Transfers and Other Adjustments 1%1%6%1%0%1%1%1%1%1%1%1%1%1%1%1%
16 Subtotal, Administration 22%20%28%20%20%19%19%19%18%18%18%18%18%18%18%18%
17 Resource Management 2%1%2%1%1%1%1%1%1%1%1%1%1%1%1%1%
18 Operations and Mtc 14%12%14%13%13%12%12%12%12%12%12%12%12%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%4%5%4%5%4%5%5%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 42%38%49%40%39%38%37%37%36%37%37%37%37%37%37%37%
23 Capital Program Contribution 27%24%3%21%21%24%22%21%21%21%21%21%22%22%22%22%
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 2,049,757 2,295,727 2,467,907 2,492,586 2,517,512 2,552,757 2,608,918 2,671,532 2,805,108
28 10% CIP Program Contingency 858,037 1,103,947 1,021,589 1,001,203 1,025,203 1,055,522 1,086,730 1,118,857 1,151,938 1,185,998 1,221,069 1,257,178
29 Total Risk Asssessment Value 2,481,768 2,873,181 2,840,361 3,050,960 3,320,931 3,523,428 3,579,316 3,636,369 3,704,694 3,794,916 3,892,600 4,062,286
30 Projected Operations Reserve 11,663,836 9,807,734 11,017,309 7,655,292 7,759,702 9,208,904 10,185,947 10,710,850 10,890,498 10,976,735 10,969,473 11,713,415
31 Operations Reserve, % of Risk Value 470%341%388%251%234%261%285%295%294%289%282%288%
32
33 OPERATIONS RESERVE
34 Min (60 days of non-capital expenses)- - - - 5,230,611 6,082,017 6,232,446 6,488,975 6,767,143 6,864,270 6,977,906 7,089,168 7,202,255 7,336,928 7,475,494 7,607,764
35 Target (90 days of non-capital expenses)- - - - 9,395,240 9,166,903 9,395,593 9,783,548 10,204,079 10,353,171 10,527,111 10,697,594 10,870,947 11,085,459 11,306,122 11,517,661
36 Max (120 days of non-capital expenses)- - - - 13,559,870 12,251,790 12,558,739 13,078,120 13,641,014 13,842,072 14,076,317 14,306,020 14,539,639 14,833,990 15,136,750 15,427,559
37 Risk Assessment Value 2,481,768 2,873,181 2,840,361 3,050,960 3,320,931 3,523,428 3,579,316 3,636,369 3,704,694 3,794,916 3,892,600 4,062,286
38
39 DEBT SERVICE COVERAGE RATIO
40 Net Revenues (125% of Debt Service)658%787%951%876%878%989%1017%1063%1115%1132%1152%1171%1191%1216%1242%1267%
41 Available Reserves (5x Debt Service)*3.5 2.7 5.7 6.6 6.9 7.7 6.3 5.2 5.3 5.7 6.0 6.2 6.2 6.3 6.3 6.5
WATER UTILITY FINANCIAL PLAN
June 16, 2014 33 | Page
APPENDIX B: WATER UTILITY CAPITAL IMPROVEMENT PROGRAM (CIP) DETAIL
WATER UTILITY FINANCIAL PLAN
June 16, 2014 34 | Page
Appendix B: Water Utility Capital Improvement Program (CIP) Detail (Continued)
WATER UTILITY FINANCIAL PLAN
June 16, 2014 35 | Page
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
June 16, 2014 36 | 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 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
June 16, 2014 37 | 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 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
June 16, 2014 38 | Page
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.
June 16, 2014 39 | Page
APPENDIX E: SAMPLE OF WATER UTILITY OUTREACH COMMUNICATIONS
Attachment C
*NOT YET APPROVED *
Resolution No. _________
Resolution of the Council of the City of Palo Alto Increasing Water
Rates by Amending Rate Schedules W-1 (General Residential Water
Service), W-2 (Water Service from Fire Hydrants), W-3 (Fire Service
Connections), W-4 (Residential Master-Metered and General Non-
Residential Water Service), and W-7 (Non-Residential Irrigation
Water Service)
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.
B. On June 13, 2016, the City Council held a full and fair public hearing regarding the
proposed rate increase and considered all protests against the proposals.
C. As required by Article XIII D, Section 6 of the California Constitution and
applicable law, notice of the June 13, 2016 public hearing was mailed to all City of Palo Alto
Utilities water customers by April 29, 2016.
D. The City Clerk has tabulated the total number of written protests presented by
the close of the public hearing, and determined that it was less than fifty percent (50%) of the
total number of customers and property owners subject to the proposed water rate
amendments, therefore a majority protest does not exist against the proposal.
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 W-1 (General Residential Water Service) is hereby amended to read as attached
and incorporated. Utility Rate Schedule W-1, as amended, shall become effective July 1, 2016.
SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule W-2 (Water Service from Fire Hydrants) is hereby amended to read as attached
and incorporated. Utility Rate Schedule W-2, as amended, shall become effective July 1, 2016.
SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule W-3 (Fire Service Connections) is hereby amended to read as attached and
incorporated. Utility Rate Schedule W-3, as amended, shall become effective July 1, 2016.
160322 sdl 6053683
CMR #6932: ATTACHMENT N
Attachment C
* NOT YET APPROVED *
SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule W-4 (Residential Master-Metered and General Non-Residential Water Service) is
hereby amended to read as attached and incorporated. Utility Rate Schedule W-4, as amended,
shall become effective July 1, 2016.
SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule W-7 (Non-Residential Irrigation Water Service) is hereby amended to read as
attached and incorporated. Utility Rate Schedule W-7, as amended, shall become effective
July 1, 2016.
SECTION 6. The City Council finds as follows:
a. Revenues derived from the water rates approved by this resolution do not exceed
the funds required to provide water service.
b. Revenues derived from the water rates approved by this resolution shall not be used
for any purpose other than providing water service, and the purposes set forth in
Article VII, Section 2, of the Charter of the City of Palo Alto.
c. The amount of the water rates imposed upon any parcel or person as an incident of
property ownership shall not exceed the proportional cost of the water service
attributable to the parcel.
SECTION 7. The Council finds that 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.
SECTION 8. Each of the rate schedules adopted by this resolution includes a structure of
drought surcharges that correspond to different levels of water use reduction in the City. In
order to charge the lowest drought surcharge possible, each rate schedule includes not only the
surcharge required to meet the 25% reduction level, but also surcharges reflecting two lower
levels of water use reduction. At any time, no more than one of these three surcharges will be
applicable. On August 17, 2015, Council adopted Resolution 9542 which established that the
Level 2 (20%) drought surcharges set forth on the City's schedule of water rates will be
collected on all City of Palo Alto Utilities water customer bills as of September 1, 2015 and
declared that the surcharge shall remain in effect until rescinded or modified by the City
Council.
SECTION 9. The Council finds that the adoption of this resolution changing water
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
160322 sdl 6053683
Attachment C
* NOT YET APPROVED *
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
160322 sdl 6053683
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-1 Effective 97-1-20156
dated 79-1-2015 Sheet No W-1-1
A. APPLICABILITY:
This schedule applies to all separately metered single family residential water services.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water services.
C. RATES:
Per Meter
Monthly Service Charge: Per Month
For 5/8-inch meter ..................................................................................................... $ 16.7703
For 3/4 inch meter ..................................................................................................... 2122.6050
For 1 inch meter ........................................................................................................ 3234.2645
For 1 1/2 inch meter .................................................................................................. 5963.4083
For 2-inch meter ........................................................................................................ 9298.3767
For 3-inch meter ........................................................................................................ 196209.1170
For 4-inch meter ........................................................................................................ 350372.3100
For 6-inch meter ........................................................................................................ 716762.8182
For 8-inch meter ........................................................................................................1,3191,403.9407
For 10-inch meter ......................................................................................................2,0852,219.9257
For 12-inch meter .......................................................................................................2,7422,919.3456
Commodity Rate: (To be added to Service Charge and applicable to all pressure zones.)
Per Hundred Cubic Feet (ccf)
Per Month All Pressure Zones
Tier 1 usage ........................................................................................................................$56.3093
Tier 2 usage (All usage over 100% of Tier 1) ........................................................................ 8.8238
ATTACHMENT D
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-2 Effective 97-1-20156
dated 79-1-2015 Sheet No W-1-2
Drought Surcharges:
A drought surcharge will be added to the Customer’s applicable Commodity Rate for Tier 1 and Tier
2 water usage when the City Council has determined that a water reduction level is in effect for the
City as described in Section D.3. The drought surcharges in the table below are measured in dollars
per hundred cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Tier 1 0.2019 0.4339 0.6459
Tier 2 0.5855 1.2114 1.8576
Temporary unmetered service to residential
subdivision developers, per connection ........................................................................ $6.00
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. Calculation of Usage Tiers
Tier 1 water usage shall be calculated and billed based upon a level of 0.2 ccf per day
rounded to the nearest whole ccf, based on meter reading days of service. As an example,
for a 30 day bill, the Tier 1 level would be 0 through 6 ccf. For further discussion of bill
calculation and proration, refer to Rule and Regulation 11.
GENERAL RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-1-3 Effective 97-1-20156
dated 79-1-2015 Sheet No W-1-3
3. Drought Surcharge
During period of water shortage or restrictions on local water use, the City Council may,
by resolution, declare the need for citywide water conservation at the 10/15%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the Drought Surcharge is to recover revenues lost as a result of reduced
consumption.
{End}
WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-2-1 Effective 97-1-20156
dated 79-1-2015 Sheet No W-2-1
A. APPLICABILITY:
This schedule applies to all water taken from fire hydrants for construction, maintenance, and
other uses in conformance with provisions of a Hydrant Meter Permit.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water services.
C. RATES:
1. Monthly Service Charge.
METER SIZE
5/8 inch ........................................................................................................................... 50.00
3 inch ........................................................................................................................... 125.00
2. Commodity Rate: (per hundred cubic feet) ................................................................ $67.3292
3. Drought Surcharges:
A drought surcharge will be added to the Customer’s applicable Commodity Rate when the
City Council has determined that a water reduction level is in effect for the City as described in
Section D.5. The drought surcharges in the table below are measured in dollars per hundred
cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Surcharge 0.2624 0.5349 0.7772
D. SPECIAL NOTES:
1. Monthly charges shall include the applicable monthly service charge in addition to usage billed at
the commodity rate.
2. Any applicant using a hydrant without obtaining a Hydrant Meter Permit or any permittee using a
hydrant without a Hydrant Meter Permit shall pay a fee of $50.00 for each day of such use in
WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-2-2 Effective 97-1-20156
dated 79-1-2015 Sheet No W-2-2
addition to all other costs and fees provided in this schedule. A hydrant permit may be denied or
revoked for failure to pay such fee.
3. A meter deposit of $750.00 may be charged any applicant for a Hydrant Meter Permit as a
prerequisite to the issuance of a permit and meter(s). A charge of $50.00 per day will be added for
delinquent return of hydrant meters. A fee will be charged for any meter returned with missing or
damaged parts.
4. Any person or company using a fire hydrant improperly or without a permit, or who draws water
from a hydrant without a meter installed and properly recording usage shall, in addition to all other
applicable charges be subject to criminal prosecution pursuant to the Palo Alto Municipal Code.
5. During period of water shortage or restrictions on local water use, the City Council may, by
resolution, declare the need for citywide water conservation at the 10/15%, 20% or 25% level.
While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought
Surcharge is to recover revenues lost as a result of reduced consumption.
{End}
WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-2-1 Effective 97-1-20156
dated 79-1-2015 Sheet No W-2-1
A. APPLICABILITY:
This schedule applies to all water taken from fire hydrants for construction, maintenance, and
other uses in conformance with provisions of a Hydrant Meter Permit.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water services.
C. RATES:
1. Monthly Service Charge.
METER SIZE
5/8 inch ........................................................................................................................... 50.00
3 inch ........................................................................................................................... 125.00
2. Commodity Rate: (per hundred cubic feet) ................................................................ $67.3292
3. Drought Surcharges:
A drought surcharge will be added to the Customer’s applicable Commodity Rate when the
City Council has determined that a water reduction level is in effect for the City as described in
Section D.5. The drought surcharges in the table below are measured in dollars per hundred
cubic feet (ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Surcharge 0.2624 0.5349 0.7772
D. SPECIAL NOTES:
1. Monthly charges shall include the applicable monthly service charge in addition to usage billed at
the commodity rate.
2. Any applicant using a hydrant without obtaining a Hydrant Meter Permit or any permittee using a
hydrant without a Hydrant Meter Permit shall pay a fee of $50.00 for each day of such use in
WATER SERVICE FROM FIRE HYDRANTS
UTILITY RATE SCHEDULE W-2
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-2-2 Effective 97-1-20156
dated 79-1-2015 Sheet No W-2-2
addition to all other costs and fees provided in this schedule. A hydrant permit may be denied or
revoked for failure to pay such fee.
3. A meter deposit of $750.00 may be charged any applicant for a Hydrant Meter Permit as a
prerequisite to the issuance of a permit and meter(s). A charge of $50.00 per day will be added for
delinquent return of hydrant meters. A fee will be charged for any meter returned with missing or
damaged parts.
4. Any person or company using a fire hydrant improperly or without a permit, or who draws water
from a hydrant without a meter installed and properly recording usage shall, in addition to all other
applicable charges be subject to criminal prosecution pursuant to the Palo Alto Municipal Code.
5. During period of water shortage or restrictions on local water use, the City Council may, by
resolution, declare the need for citywide water conservation at the 10/15%, 20% or 25% level.
While such a resolution is in effect, a drought surcharge will apply. The purpose of the Drought
Surcharge is to recover revenues lost as a result of reduced consumption.
{End}
FIRE SERVICE CONNECTIONS
UTILITY RATE SCHEDULE W-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-3-1 Effective 97-1-20156
dated 79-1-2015 Sheet No W-3-1
A. APPLICABILITY:
This schedule applies to all public fire hydrants and private fire service connections.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water services.
C. RATES:
1. Monthly Service Charges
Public Fire Hydrant .................................................................................................... $5.00
Private Fire Service:
2-inch connection .......................................................................................................$3.7943
4-inch connection .......................................................................................................2123.4222
6-inch connection ....................................................................................................... 6168.0363
8-inch connection .......................................................................................................131144.9734
10-inch connection .....................................................................................................236260.7020
12-inch connection .....................................................................................................381421.1152
2. Commodity (To be added to Service Charge unless water is used for fire extinguishing or
testing purposes.)
Per Hundred Cubic Feet
All water usage........................................................................................................... $10.00
D. SPECIAL NOTES:
1. Service under this schedule may be discontinued if water is used for any purpose other
than fire extinguishing or testing and repairing the fire extinguishing facilities. Using
hydrants and fire services for other purposes is illegal and will be subject to the
commodity charge as noted above, fines, and criminal prosecution pursuant to the Palo
Alto Municipal Code.
2. For a combination water and fire service, the general water service schedule shall apply.
FIRE SERVICE CONNECTIONS
UTILITY RATE SCHEDULE W-3
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-3-2 Effective 97-1-20156
dated 79-1-2015 Sheet No W-3-2
3. Utilities Rule and Regulation No. 21 provides additional information on Automatic Fire
Services.
4. Repairs and testing of fire extinguishing facilities are not considered unauthorized use of
water if records and documentation are supplied by the customer.
{End}
RESIDENTIAL MASTER-METERED AND
GENERAL NON-RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-4-1 Effective 97-1-20156
dated 79-1-2015 Sheet No W-4-1
A. APPLICABILITY:
This schedule applies to non-residential water service in the City of Palo Alto and its distribution
area. This schedule is also applicable to multi-family residential customers served through a master
meter.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water services.
C. RATES:
Per Meter
Monthly Service Charge Per Month
For 5/8-inch meter .................................................................................... $ 16.7703
For 3/4-inch meter .................................................................................... 2122.6050
For 1-inch meter .................................................................................... 3234.2645
For 1 ½-inch meter .................................................................................... 5963.4083
For 2-inch meter .................................................................................... 9298.3767
For 3-inch meter .................................................................................... 196209.1170
For 4-inch meter .................................................................................... 350372.3100
For 6-inch meter .................................................................................... 716762.8182
For 8-inch meter ....................................................................................1,319403.9407
For 10-inch meter ....................................................................................2,085219.9257
For 12-inch meter ....................................................................................2,742919.3456
Commodity Rates: (to be added to Service Charge)
Per Hundred Cubic Feet (ccf)
Per Month All Pressure Zones
Per ccf ............................................................................................................ $ 67.3292
RESIDENTIAL MASTER-METERED AND
GENERAL NON-RESIDENTIAL WATER SERVICE
UTILITY RATE SCHEDULE W-4
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-4-2 Effective 97-1-20156
dated 79-1-2015 Sheet No W-4-2
Drought Surcharges:
A drought surcharge will be added to the Customer’s applicable Commodity Rate when the City
Council has determined that a water reduction level is in effect for the City as described in Section
D.2. The drought surcharges in the table below are measured in dollars per hundred cubic feet
(ccf).
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Surcharge 0.2624 0.4953 0.7772
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. Drought Surcharge
During period of water shortage or restrictions on local water use, the City Council may,
by resolution, declare the need for citywide water conservation at the 10/15%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the Drought Surcharge is to recover revenues lost as a result of reduced
consumption.
{End}
NON-RESIDENTIAL IRRIGATION WATER SERVICE
UTILITY RATE SCHEDULE W-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-7-1 Effective 97-1-20156
dated 79-1-2015 Sheet No W-7-1
A. APPLICABILITY:
This schedule applies to non-residential water service supplying dedicated irrigation meters in the
City of Palo Alto and its distribution area.
B. TERRITORY:
This schedule applies everywhere the City of Palo Alto provides water services.
C. RATES:
Per Meter
Monthly Service Charge Per Month
For 5/8-inch meter .................................................................................... $ 16.7703
For 3/4-inch meter .................................................................................... 2122.6050
For 1-inch meter .................................................................................... 3234.2645
For 1 1/2 inch meter .................................................................................... 5963.4083
For 2-inch meter .................................................................................... 9298.3767
For 3-inch meter .................................................................................... 196209.1170
For 4-inch meter .................................................................................... 350372.3100
For 6-inch meter .................................................................................... 716762.8182
For 8-inch meter ....................................................................................1,319403.9407
For 10-inch meter ....................................................................................2,085219.9257
For 12-inch meter ....................................................................................2,742919.3456
Commodity Rates: (to be added to Service Charge)
Per Hundred Cubic Feet (ccf)
Per Month All Pressure Zones
Per ccf ............................................................................................................ $ 8.7229
Drought Surcharges:
A drought surcharge will be added to the Customer’s applicable Commodity Rate when the City
Council has determined that a water reduction level is in effect for the City as described in Section
D.2. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf).
NON-RESIDENTIAL IRRIGATION WATER SERVICE
UTILITY RATE SCHEDULE W-7
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Supersedes Sheet No W-7-2 Effective 97-1-20156
dated 79-1-2015 Sheet No W-7-2
Water Usage
Reduction level Level 1 (10/15%) Level 2 (20%) Level 3 (25%)
Surcharge 0.5351 1.2518 12.0293
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. Drought Surcharge
During period of water shortage or restrictions on local water use, the City Council may,
by resolution, declare the need for citywide water conservation at the 10/15%, 20% or
25% level. While such a resolution is in effect, a drought surcharge will apply. The
purpose of the Drought Surcharge is to recover revenues lost as a result of reduced
consumption.
{End}
NOT YET APPROVED
2016-06-01 (HR)(Budget) RESO Amending Various Salary Schedules 1
Resolution No. _____
Resolution of the Council of the City of Palo Alto Amending Salary
Schedules for the Utilities Managers of Palo Alto Professional
Association, the Service Employees International Union, and
the International Association of Fire Fighters, Local 1319
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Salary Schedule for the Utilities Managers of Palo Alto Professional
Association, as amended by Resolution 9527, is hereby further amended as set forth in Exhibit “1”,
attached hereto and incorporated herein by reference.
SECTION 2. The Salary Schedule in the 2015-2018 Memorandum of Agreement with the
Service Employees International Union, as adopted on April 11, 2016 (CMR # 6789), is hereby amended
as set forth in Exhibit “2”, attached hereto and incorporated herein by reference.
SECTION 3. The Salary Schedule in the 2013-2015 Memorandum of Agreement with the
Service Employees International Union, as adopted by Resolution No. 9398 and amended by Resolution
No. 9527, is hereby amended as set forth in Exhibit “3”, attached hereto and incorporated herein by
reference.
SECTION 4. The Salary Schedule in the 2014-2018 Memorandum of Agreement with the
International Association of Fire Fighters, Local 1319, as adopted on April 11, 2016 (CMR # 6789) is
hereby amended as set forth in Exhibit “4”, attached hereto and incorporated herein by reference.
SECTION 5. The Director of Administrative Services is authorized to implement the
amended salary schedules set forth in Sections 1, 2, 3, and 4.
SECTION 6. The Council finds that this is not a project under the California Environmental
Quality Act and, therefore, no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: ___________________________ ______________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ ______________________________ Sr. Deputy City Attorney City Manager
_____________________________ Director of Administrative Services
____________________________ Chief People Officer
CMR #6932: ATTACHMENT O
Effective 7/01/2016
** Updated 05/31/2016**
Job Code Classifications
Grade
Codes
Min Hourly
Rate
Mid Point Hourly
Rate
Max Hourly
Rate
Approx Mid-Point
Monthly Salary Annual Salary
2076 Administrative Assistant - U 700 $30.08 $37.59 $45.11 $6,516 $78,187
1002 Assistant Director Utilities - Customer Support 230 $63.42 $79.27 $95.13 $13,740 $164,882
1003 Assistant Director Utilities - Engineering 190 $70.46 $88.07 $105.69 $15,265 $183,186
6 Assistant Director Utilities - Operations 210 $70.46 $88.07 $105.69 $15,265 $183,186
65 Assistant Director Utilities - Resource Management 190 $70.46 $88.07 $105.69 $15,265 $183,186
84 Division Manager/Manager of Communications 380 $45.72 $57.14 $68.57 $9,904 $118,851
129 Engineering Manager, Electric 231 $60.48 $75.59 $90.71 $13,102 $157,227
120 Engineering Manager, Water, Gas & Wastewater 231 $60.48 $75.59 $90.71 $13,102 $157,227
179 Manager, Customer Service and Meter Reading 300 $48.56 $60.70 $72.84 $10,521 $126,256
185 Manager, Electric Operations 270 $59.22 $74.02 $88.83 $12,830 $153,962
1114 Manager, Utilities Credit & Collection 300 $48.56 $60.70 $72.84 $10,521 $126,256
150 Manager, Utilities Marketing Services
Manager, Utilities Program Services 300 $48.56 $60.70 $72.84 $10,521 $126,256
156 Manager, Utilities Operations WGW 290 $59.14 $73.92 $88.71 $12,813 $153,754
48 Manager, Utilities Telecommunications 250 $53.47 $66.83 $80.20 $11,584 $139,006
13 Senior Business Analyst 340 $43.86 $54.82 $65.79 $9,502 $114,026
188 Senior Electrical Engineer 291 $55.33 $69.16 $83.00 $11,988 $143,853
2187 Senior Engineer - U 710 $52.64 $65.79 $78.95 $11,404 $136,843
2014 Senior Management Analyst - U 350 $42.74 $53.42 $64.11 $9,259 $111,114
64 Sr. Resource Planner 271 $54.02 $67.52 $81.03 $11,703 $140,442
27 Supervising Electrical Project Engineer 341 $51.42 $64.27 $77.13 $11,140 $133,682
28 Supervising Project Engineer 360 $47.75 $59.68 $71.62 $10,345 $124,134
1115 Supervisor, Inspection Services 390 $36.72 $45.89 $55.07 $7,955 $95,465
1011 Utilities Compliance Manager 290 $59.14 $73.92 $88.71 $12,813 $153,754
114 Utilities Supervisor 680 $51.32 $64.14 $76.97 $11,118 $133,411
2020 Principal Business Analyst - U TBD $46.93 $58.66 $70.40 $10,168 $122,013
2017 Utility Safety Officer TBD $34.91 $43.63 $52.36 $7,563 $90,750
2025 Manager Utilities Strategic Business 231 $60.48 $75.59 $90.71 $13,102 $157,227
UMPAPA Salary Schedule
EXHIBIT "1"
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
1
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
203 non-exempt Facilities Asst 1 $23.09 $24.44 $25.12 $25.87
2 $24.31 $25.73 $26.44 $27.23
3 $25.59 $27.08 $27.83 $28.66
4 $26.94 $28.50 $29.29 $30.17
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
204 non-exempt Acct Spec 1 $24.44 $25.18 $25.18 $25.94
2 $25.73 $26.51 $26.51 $27.31
3 $27.08 $27.90 $27.90 $28.75
4 $28.51 $29.37 $29.37 $30.26
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
205 non-exempt Court Liaison Officer 1 $33.95 $35.58 $36.20 $37.30
2 $35.74 $37.45 $38.11 $39.26
3 $37.62 $39.42 $40.12 $41.33
4 $39.60 $41.49 $42.23 $43.50
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
206 non-exempt Account Assistant 1 $20.92 $21.56 $21.56 $22.21
2 $22.02 $22.69 $22.69 $23.38
3 $23.18 $23.88 $23.88 $24.61
4 $24.40 $25.14 $25.14 $25.90
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
207 non-exempt Acct Spec-Lead 1 $26.15 $26.96 $26.96 $27.77
2 $27.53 $28.38 $28.38 $29.23
3 $28.98 $29.87 $29.87 $30.77
4 $30.51 $31.44 $31.44 $32.39
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
208 non-exempt CDBG Coordinator 1 $38.43 $39.85 $40.15 $41.34
2 $40.45 $41.95 $42.26 $43.52
3 $42.58 $44.16 $44.48 $45.81
4 $44.82 $46.48 $46.82 $48.22
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
209 non-exempt Property Evid Tech 1 $26.11 $27.35 $27.84 $28.68
2 $27.48 $28.79 $29.31 $30.19
3 $28.93 $30.31 $30.85 $31.78
4 $30.45 $31.90 $32.47 $33.45
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
211 non-exempt Equip Maint Serv Per 1 $22.62 $23.56 $23.83 $24.54
2 $23.81 $24.80 $25.08 $25.83
3 $25.06 $26.10 $26.40 $27.19
4 $26.38 $27.47 $27.79 $28.62
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
212 non-exempt Buyer 1 $34.49 $35.54 $35.56 $36.61
2 $36.30 $37.41 $37.43 $38.54
3 $38.21 $39.38 $39.40 $40.57
4 $40.22 $41.45 $41.47 $42.71
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
213 non-exempt Mailing Svcs Spec 1 $20.48 $21.12 $21.16 $21.78
2 $21.56 $22.23 $22.27 $22.93
3 $22.69 $23.40 $23.44 $24.14
4 $23.88 $24.63 $24.67 $25.41
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
Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2017)Salary Effective 12/29/17 (PP26:2017)Job
Code FLSA Job Title Steps
EXHIBIT "2"
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
2
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
214 non-exempt Crime Analyst 1 $33.95 $35.58 $36.20 $37.30
2 $35.74 $37.45 $38.11 $39.26
3 $37.62 $39.42 $40.12 $41.33
4 $39.60 $41.49 $42.23 $43.50
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
215 non-exempt Util Acct Rep 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
216 non-exempt Marketing Eng 1 $43.64 $45.17 $45.37 $46.74
2 $45.94 $47.55 $47.76 $49.20
3 $48.36 $50.05 $50.27 $51.79
4 $50.91 $52.68 $52.92 $54.52
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
217 non-exempt Cust Svc Spec 1 $28.56 $29.41 $29.41 $30.31
2 $30.06 $30.96 $30.96 $31.90
3 $31.64 $32.59 $32.59 $33.58
4 $33.31 $34.31 $34.31 $35.35
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
218 non-exempt Cust Svc Represent 1 $25.98 $26.76 $26.76 $27.56
2 $27.35 $28.17 $28.17 $29.01
3 $28.79 $29.65 $29.65 $30.54
4 $30.30 $31.21 $31.21 $32.15
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
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
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
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
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
227 non-exempt Inspector, Field Svc 1 $34.47 $36.05 $36.61 $37.72
2 $36.28 $37.95 $38.54 $39.70
3 $38.19 $39.95 $40.57 $41.79
4 $40.20 $42.05 $42.71 $43.99
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
Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
3
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
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
230 non-exempt Offset Equip Op 1 $23.22 $23.94 $23.98 $24.70
2 $24.44 $25.20 $25.24 $26.00
3 $25.73 $26.53 $26.57 $27.37
4 $27.08 $27.93 $27.97 $28.81
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
232 non-exempt Prog-Analyst 1 $39.44 $41.71 $42.85 $44.14
2 $41.52 $43.91 $45.11 $46.46
3 $43.71 $46.22 $47.48 $48.91
4 $46.01 $48.65 $49.98 $51.48
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
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
239 non-exempt Chf Inspec WGW 1 $38.18 $39.94 $40.56 $41.79
2 $40.19 $42.04 $42.69 $43.99
3 $42.31 $44.25 $44.94 $46.30
4 $44.54 $46.58 $47.31 $48.74
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
240 non-exempt Meter Reader-Lead 1 $26.01 $26.84 $26.89 $27.71
2 $27.38 $28.25 $28.31 $29.17
3 $28.82 $29.74 $29.80 $30.70
4 $30.34 $31.31 $31.37 $32.32
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
241 non-exempt Meter Reader 1 $24.31 $25.09 $25.14 $25.90
2 $25.59 $26.41 $26.46 $27.26
3 $26.94 $27.80 $27.85 $28.69
4 $28.36 $29.26 $29.32 $30.20
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
242 non-exempt Coord Zero Waste 1 $33.39 $34.70 $35.02 $36.07
2 $35.15 $36.53 $36.86 $37.97
3 $37.00 $38.45 $38.80 $39.97
4 $38.95 $40.47 $40.84 $42.07
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
244 non-exempt Assoc Buyer 1 $31.32 $32.28 $32.30 $33.27
2 $32.97 $33.98 $34.00 $35.02
3 $34.71 $35.77 $35.79 $36.86
4 $36.54 $37.65 $37.67 $38.80
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
Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
4
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
246 non-exempt Power Engr 1 $46.60 $48.22 $48.45 $49.91
2 $49.05 $50.76 $51.00 $52.54
3 $51.63 $53.43 $53.68 $55.30
4 $54.35 $56.24 $56.51 $58.21
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
247 non-exempt Assoc Power Engr 1 $41.25 $42.69 $42.89 $44.18
2 $43.42 $44.94 $45.15 $46.50
3 $45.71 $47.30 $47.53 $48.95
4 $48.12 $49.79 $50.03 $51.53
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
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
250 non-exempt Equip Parts Tech 1 $24.31 $25.04 $25.04 $25.81
2 $25.59 $26.36 $26.36 $27.17
3 $26.94 $27.75 $27.75 $28.60
4 $28.36 $29.21 $29.21 $30.10
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
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
252 non-exempt Library Associate 1 $24.52 $25.27 $25.27 $26.03
2 $25.81 $26.60 $26.60 $27.40
3 $27.17 $28.00 $28.00 $28.84
4 $28.60 $29.47 $29.47 $30.36
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
2 $24.42 $25.16 $25.16 $25.92
3 $25.71 $26.48 $26.48 $27.28
4 $27.06 $27.87 $27.87 $28.72
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
254 non-exempt Librarian 1 $26.84 $27.80 $27.96 $28.79
2 $28.25 $29.26 $29.43 $30.31
3 $29.74 $30.80 $30.98 $31.91
4 $31.30 $32.42 $32.61 $33.59
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
255 non-exempt Coord Library Prog 1 $33.24 $34.43 $34.62 $35.66
2 $34.99 $36.24 $36.44 $37.54
3 $36.83 $38.15 $38.36 $39.52
4 $38.77 $40.16 $40.38 $41.60
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
256 non-exempt Asst Power Engr 1 $37.25 $38.54 $38.72 $39.89
2 $39.21 $40.57 $40.76 $41.99
3 $41.27 $42.70 $42.91 $44.20
4 $43.44 $44.95 $45.17 $46.53
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
Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
5
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
257 non-exempt Environmental Spec 1 $37.67 $39.35 $39.92 $41.13
2 $39.65 $41.42 $42.02 $43.29
3 $41.74 $43.60 $44.23 $45.57
4 $43.94 $45.89 $46.56 $47.97
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
258 non-exempt Ind Waste Invtgtr 1 $35.58 $37.15 $37.69 $38.83
2 $37.45 $39.10 $39.67 $40.87
3 $39.42 $41.16 $41.76 $43.02
4 $41.49 $43.33 $43.96 $45.28
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
260 non-exempt Desktop Technician 1 $31.13 $32.06 $32.06 $33.03
2 $32.77 $33.75 $33.75 $34.77
3 $34.49 $35.53 $35.53 $36.60
4 $36.31 $37.40 $37.40 $38.53
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
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
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
263 non-exempt Animal Services Spec 1 $24.32 $25.13 $25.20 $25.97
2 $25.60 $26.45 $26.53 $27.34
3 $26.95 $27.84 $27.93 $28.78
4 $28.37 $29.31 $29.40 $30.29
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
265 non-exempt Program Assistant 1 $25.00 $25.79 $25.82 $26.62
2 $26.32 $27.15 $27.18 $28.02
3 $27.70 $28.58 $28.61 $29.49
4 $29.16 $30.08 $30.12 $31.04
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
267 non-exempt Elec Undgd Inspec 1 $33.84 $35.39 $35.94 $37.03
2 $35.62 $37.25 $37.83 $38.98
3 $37.49 $39.21 $39.82 $41.03
4 $39.46 $41.27 $41.92 $43.19
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
268 non-exempt Asst Res Planner 1 $35.91 $36.98 $36.98 $38.10
2 $37.80 $38.93 $38.93 $40.11
3 $39.79 $40.98 $40.98 $42.22
4 $41.88 $43.14 $43.14 $44.44
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
269 non-exempt Assoc Res Planner 1 $39.78 $40.97 $40.97 $42.20
2 $41.87 $43.13 $43.13 $44.42
3 $44.07 $45.40 $45.40 $46.76
4 $46.39 $47.79 $47.79 $49.22
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
Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
6
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
270 non-exempt Prod Arts/Sci Prog 1 $32.39 $33.66 $33.97 $34.99
2 $34.09 $35.43 $35.76 $36.83
3 $35.88 $37.29 $37.64 $38.77
4 $37.77 $39.25 $39.62 $40.81
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
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
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
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
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
275 non-exempt Animal Services Spec II 1 $26.82 $27.71 $27.80 $28.63
2 $28.23 $29.17 $29.26 $30.14
3 $29.72 $30.70 $30.80 $31.73
4 $31.28 $32.32 $32.42 $33.40
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
276 non-exempt Animal Control Off 1 $24.66 $25.48 $25.56 $26.32
2 $25.96 $26.82 $26.90 $27.71
3 $27.33 $28.23 $28.32 $29.17
4 $28.77 $29.72 $29.81 $30.71
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
277 non-exempt Animal Attendant 1 $23.02 $23.78 $23.86 $24.58
2 $24.23 $25.03 $25.12 $25.87
3 $25.51 $26.35 $26.44 $27.23
4 $26.85 $27.74 $27.83 $28.66
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
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
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
Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
7
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
281 non-exempt Park Ranger 1 $28.79 $29.66 $29.66 $30.55
2 $30.30 $31.22 $31.22 $32.16
3 $31.89 $32.86 $32.86 $33.85
4 $33.57 $34.59 $34.59 $35.63
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
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
286 non-exempt Motor Equipment Mechanic I 1 $30.36 $31.27 $31.27 $32.21
2 $31.96 $32.92 $32.92 $33.91
3 $33.64 $34.65 $34.65 $35.69
4 $35.41 $36.47 $36.47 $37.57
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
2 $34.50 $35.54 $35.54 $36.61
3 $36.32 $37.41 $37.41 $38.54
4 $38.23 $39.38 $39.38 $40.57
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
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
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
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
291 non-exempt Maintenance Mechanic-Welding 1 $33.53 $35.46 $36.44 $37.54
2 $35.29 $37.33 $38.36 $39.52
3 $37.15 $39.29 $40.38 $41.60
4 $39.11 $41.36 $42.50 $43.79
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
292 non-exempt Electric Underground Inspector - Lead 1 $36.20 $37.84 $38.44 $39.60
2 $38.10 $39.83 $40.46 $41.68
3 $40.10 $41.93 $42.59 $43.87
4 $42.21 $44.14 $44.83 $46.18
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
293 non-exempt Junior Museum & Zoo Educator 1 $26.71 $27.76 $28.02 $28.86
2 $28.12 $29.22 $29.49 $30.38
3 $29.60 $30.76 $31.04 $31.98
4 $31.16 $32.38 $32.67 $33.66
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
Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
8
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
294 non-exempt Administrative Associate I 1 $24.05 $24.81 $24.84 $25.60
2 $25.32 $26.12 $26.15 $26.95
3 $26.65 $27.49 $27.53 $28.37
4 $28.05 $28.94 $28.98 $29.86
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
2 $27.52 $28.39 $28.42 $29.28
3 $28.97 $29.88 $29.92 $30.82
4 $30.49 $31.45 $31.49 $32.44
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
2 $29.50 $30.42 $30.46 $31.38
3 $31.05 $32.02 $32.06 $33.03
4 $32.68 $33.71 $33.75 $34.77
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
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
299 non-exempt Bldg Inspector 1 $35.69 $37.33 $37.91 $39.05
2 $37.57 $39.29 $39.91 $41.11
3 $39.55 $41.36 $42.01 $43.27
4 $41.63 $43.54 $44.22 $45.55
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
2 $40.11 $41.94 $42.61 $43.89
3 $42.22 $44.15 $44.85 $46.20
4 $44.44 $46.47 $47.21 $48.63
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
301 non-exempt Code Enforcement Off 1 $34.29 $35.85 $36.41 $37.52
2 $36.09 $37.74 $38.33 $39.49
3 $37.99 $39.73 $40.35 $41.57
4 $39.99 $41.82 $42.47 $43.76
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
302 non-exempt Program Assistant I 1 $26.51 $27.35 $27.40 $28.22
2 $27.91 $28.79 $28.84 $29.71
3 $29.38 $30.31 $30.36 $31.27
4 $30.93 $31.91 $31.96 $32.92
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
2 $30.01 $30.96 $30.99 $31.93
3 $31.59 $32.59 $32.62 $33.61
4 $33.25 $34.30 $34.34 $35.38
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
Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
9
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
304 non-exempt Plans Check Engr 1 $42.38 $43.85 $44.07 $45.39
2 $44.61 $46.16 $46.39 $47.78
3 $46.96 $48.59 $48.83 $50.29
4 $49.43 $51.15 $51.40 $52.94
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
306 non-exempt Comm Tech 1 $35.92 $36.99 $36.99 $38.11
2 $37.81 $38.94 $38.94 $40.12
3 $39.80 $40.99 $40.99 $42.23
4 $41.89 $43.15 $43.15 $44.45
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
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
308 non-exempt Instrum Elec 1 $34.16 $35.57 $35.96 $37.05
2 $35.96 $37.44 $37.85 $39.00
3 $37.85 $39.41 $39.84 $41.05
4 $39.84 $41.48 $41.94 $43.21
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
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
311 non-exempt Eng Tech I 1 $26.50 $27.69 $28.09 $28.94
2 $27.89 $29.15 $29.57 $30.46
3 $29.36 $30.68 $31.13 $32.06
4 $30.90 $32.29 $32.77 $33.75
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
312 non-exempt Animal Control Off - L 1 $26.39 $27.27 $27.35 $28.18
2 $27.78 $28.70 $28.79 $29.66
3 $29.24 $30.21 $30.31 $31.22
4 $30.78 $31.80 $31.90 $32.86
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
313 non-exempt Police Records Specialist I 1 $23.98 $25.13 $25.57 $26.34
2 $25.24 $26.45 $26.92 $27.73
3 $26.57 $27.84 $28.34 $29.19
4 $27.97 $29.31 $29.83 $30.73
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
2 $26.56 $27.84 $28.33 $29.18
3 $27.96 $29.30 $29.82 $30.72
4 $29.43 $30.84 $31.39 $32.34
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
Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
10
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
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
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
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
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
319 non-exempt Engr Tech III 1 $32.02 $33.45 $33.94 $34.96
2 $33.70 $35.21 $35.73 $36.80
3 $35.47 $37.06 $37.61 $38.74
4 $37.34 $39.01 $39.59 $40.78
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
320 non-exempt Community Service Officer - Lead 1 $27.89 $29.24 $29.75 $30.65
2 $29.36 $30.78 $31.32 $32.26
3 $30.91 $32.40 $32.97 $33.96
4 $32.54 $34.10 $34.70 $35.75
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
321 non-exempt Police Records Specialist - Lead 1 $27.00 $28.29 $28.79 $29.68
2 $28.42 $29.78 $30.31 $31.24
3 $29.92 $31.35 $31.91 $32.88
4 $31.49 $33.00 $33.59 $34.61
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
323 non-exempt Engr Tech II 1 $28.67 $29.95 $30.40 $31.31
2 $30.18 $31.53 $32.00 $32.96
3 $31.77 $33.19 $33.68 $34.69
4 $33.44 $34.94 $35.45 $36.52
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
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
Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
11
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
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
330 non-exempt Asst Engineer 1 $35.10 $36.32 $36.49 $37.59
2 $36.95 $38.23 $38.41 $39.57
3 $38.89 $40.24 $40.43 $41.65
4 $40.94 $42.36 $42.56 $43.84
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
332 non-exempt Engineer 1 $43.64 $45.17 $45.37 $46.74
2 $45.94 $47.55 $47.76 $49.20
3 $48.36 $50.05 $50.27 $51.79
4 $50.91 $52.68 $52.92 $54.52
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
333 non-exempt Assoc Engineer 1 $38.75 $40.10 $40.29 $41.50
2 $40.79 $42.21 $42.41 $43.68
3 $42.94 $44.43 $44.64 $45.98
4 $45.20 $46.77 $46.99 $48.40
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
340 non-exempt Business Analyst 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
341 non-exempt Coor Trans Sys Mgmt 1 $36.60 $38.04 $38.38 $39.54
2 $38.53 $40.04 $40.40 $41.62
3 $40.56 $42.15 $42.53 $43.81
4 $42.69 $44.37 $44.77 $46.12
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
342 non-exempt Coord Pub Wks Proj 1 $34.78 $36.14 $36.46 $37.56
2 $36.61 $38.04 $38.38 $39.54
3 $38.54 $40.04 $40.40 $41.62
4 $40.57 $42.15 $42.53 $43.81
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
344 non-exempt Coord Utility Proj 1 $37.55 $39.02 $39.38 $40.57
2 $39.53 $41.07 $41.45 $42.70
3 $41.61 $43.23 $43.63 $44.95
4 $43.80 $45.51 $45.93 $47.32
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
345 non-exempt Electric Project Engineer 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
346 non-exempt Management Assistant 1 $30.44 $31.40 $31.45 $32.40
2 $32.04 $33.05 $33.11 $34.10
3 $33.73 $34.79 $34.85 $35.89
4 $35.50 $36.62 $36.68 $37.78
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
Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
12
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
347 non-exempt Planning Arborist 1 $41.76 $43.66 $44.35 $45.70
2 $43.96 $45.96 $46.68 $48.10
3 $46.27 $48.38 $49.14 $50.63
4 $48.70 $50.93 $51.73 $53.29
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
348 non-exempt Payroll Analyst 1 $29.15 $30.03 $30.03 $30.93
2 $30.68 $31.61 $31.61 $32.56
3 $32.29 $33.27 $33.27 $34.27
4 $33.99 $35.02 $35.02 $36.07
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
349 non-exempt Project Engineer 1 $46.99 $48.62 $48.83 $50.30
2 $49.46 $51.18 $51.40 $52.95
3 $52.06 $53.87 $54.11 $55.74
4 $54.80 $56.70 $56.96 $58.67
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
352 non-exempt Planner 1 $38.43 $39.85 $40.15 $41.34
2 $40.45 $41.95 $42.26 $43.52
3 $42.58 $44.16 $44.48 $45.81
4 $44.82 $46.48 $46.82 $48.22
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
353 non-exempt Assoc Planner 1 $35.94 $37.28 $37.55 $38.68
2 $37.83 $39.24 $39.53 $40.72
3 $39.82 $41.31 $41.61 $42.86
4 $41.92 $43.48 $43.80 $45.12
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
355 non-exempt Bldg/Plg Technician 1 $29.16 $30.24 $30.45 $31.37
2 $30.69 $31.83 $32.05 $33.02
3 $32.31 $33.51 $33.74 $34.76
4 $34.01 $35.27 $35.52 $36.59
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
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
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
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
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
Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
13
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
365 non-exempt Industrial Waste Technician 1 $28.58 $29.85 $30.27 $31.19
2 $30.08 $31.42 $31.86 $32.83
3 $31.66 $33.07 $33.54 $34.56
4 $33.33 $34.81 $35.31 $36.38
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
366 non-exempt Restoration Lead 1 $33.39 $34.98 $35.60 $36.67
2 $35.15 $36.82 $37.47 $38.60
3 $37.00 $38.76 $39.44 $40.63
4 $38.95 $40.80 $41.52 $42.77
5 $41.00 $7,106.67 $85,280.00 $42.95 $7,444.67 $89,336.00 $43.70 $7,574.67 $90,896.00 $45.02 $7,803.47 $93,641.60
368 non-exempt Program Coordinator 1 $27.96 $29.06 $29.33 $30.21
2 $29.43 $30.59 $30.87 $31.80
3 $30.98 $32.20 $32.49 $33.47
4 $32.61 $33.89 $34.20 $35.23
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
369 non-exempt Meter Shop Lead 1 $29.29 $30.64 $31.14 $32.07
2 $30.83 $32.25 $32.78 $33.76
3 $32.45 $33.95 $34.50 $35.54
4 $34.16 $35.74 $36.32 $37.41
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
370 non-exempt Bldg Serviceperson 1 $21.10 $21.98 $22.24 $22.90
2 $22.21 $23.14 $23.41 $24.10
3 $23.38 $24.36 $24.64 $25.37
4 $24.61 $25.64 $25.94 $26.71
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
371 non-exempt Bldg Serviceperson-L 1 $22.59 $23.54 $23.80 $24.52
2 $23.78 $24.78 $25.05 $25.81
3 $25.03 $26.08 $26.37 $27.17
4 $26.35 $27.45 $27.76 $28.60
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
373 non-exempt Facilities Maint-L 1 $39.41 $41.68 $42.84 $44.13
2 $41.48 $43.87 $45.09 $46.45
3 $43.66 $46.18 $47.46 $48.89
4 $45.96 $48.61 $49.96 $51.46
5 $48.38 $8,385.87 $100,630.40 $51.17 $8,869.47 $106,433.60 $52.59 $9,115.60 $109,387.20 $54.17 $9,389.47 $112,673.60
374 non-exempt Facilities Carpenter 1 $30.11 $31.85 $32.75 $33.73
2 $31.69 $33.53 $34.47 $35.50
3 $33.36 $35.29 $36.28 $37.37
4 $35.12 $37.15 $38.19 $39.34
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
375 non-exempt Facilities Elect 1 $30.02 $31.26 $31.61 $32.56
2 $31.60 $32.90 $33.27 $34.27
3 $33.26 $34.63 $35.02 $36.07
4 $35.01 $36.45 $36.86 $37.97
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
376 non-exempt Facilities Tech 1 $30.11 $31.85 $32.75 $33.73
2 $31.69 $33.53 $34.47 $35.50
3 $33.36 $35.29 $36.28 $37.37
4 $35.12 $37.15 $38.19 $39.34
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 $86,132.80
Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
14
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
376 non-exempt Facilities Tech 1 32.57$ 33.79$ 34.04$ 35.07$
2 34.28$ 35.57$ 35.83$ 36.92$
3 36.08$ 37.44$ 37.72$ 38.86$
4 37.98$ 39.41$ 39.70$ 40.90$
5 39.98$ 6,929.87$ 83,158.40$ 41.48$ 7,189.87$ 86,278.40$ 41.79$ 7,243.60$ 86,923.20$ 43.05$ 7,462.00$ 89,544.00$
377 non-exempt Facilities Painter 1 $30.11 $31.85 $32.75 $33.73
2 $31.69 $33.53 $34.47 $35.50
3 $33.36 $35.29 $36.28 $37.37
4 $35.12 $37.15 $38.19 $39.34
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
381 non-exempt Motor Equip Mech-L 1 $35.06 $36.11 $36.11 $37.21
2 $36.91 $38.01 $38.01 $39.17
3 $38.85 $40.01 $40.01 $41.23
4 $40.89 $42.12 $42.12 $43.40
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
383 non-exempt Fleet Svcs Coord 1 $28.97 $29.84 $29.84 $30.73
2 $30.49 $31.41 $31.41 $32.35
3 $32.09 $33.06 $33.06 $34.05
4 $33.78 $34.80 $34.80 $35.84
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
384 non-exempt Mobile Service Tech 1 $34.41 $35.44 $35.44 $36.52
2 $36.22 $37.31 $37.31 $38.44
3 $38.13 $39.27 $39.27 $40.46
4 $40.14 $41.34 $41.34 $42.59
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
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
390 non-exempt Heavy Equip Oper 1 $31.49 $33.26 $34.13 $35.15
2 $33.15 $35.01 $35.93 $37.00
3 $34.89 $36.85 $37.82 $38.95
4 $36.73 $38.79 $39.81 $41.00
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
2 $35.45 $37.45 $38.42 $39.58
3 $37.32 $39.42 $40.44 $41.66
4 $39.28 $41.49 $42.57 $43.85
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
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
396 non-exempt Equip Operator 1 $27.81 $29.37 $30.13 $31.04
2 $29.27 $30.92 $31.72 $32.67
3 $30.81 $32.55 $33.39 $34.39
4 $32.43 $34.26 $35.15 $36.20
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
2 $31.32 $33.08 $33.94 $34.96
3 $32.97 $34.82 $35.73 $36.80
4 $34.70 $36.65 $37.61 $38.74
Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
15
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
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
16
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
398 non-exempt Geographic Inform Syst Specialist 1 $40.98 $43.34 $44.53 $45.88
2 $43.14 $45.62 $46.87 $48.29
3 $45.41 $48.02 $49.34 $50.83
4 $47.80 $50.55 $51.94 $53.50
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
399 non-exempt Emergency Med Svs Data Specialist 1 $28.03 $28.90 $28.94 $29.81
2 $29.50 $30.42 $30.46 $31.38
3 $31.05 $32.02 $32.06 $33.03
4 $32.68 $33.71 $33.75 $34.77
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
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
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
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
408 non-exempt Cement Finisher 1 $30.11 $31.85 $32.75 $33.73
2 $31.69 $33.53 $34.47 $35.50
3 $33.36 $35.29 $36.28 $37.37
4 $35.12 $37.15 $38.19 $39.34
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
2 $33.91 $35.87 $36.87 $37.98
3 $35.69 $37.76 $38.81 $39.98
4 $37.57 $39.75 $40.85 $42.08
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
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
413 non-exempt Landfill Technician 1 $34.91 $36.47 $37.01 $38.13
2 $36.75 $38.39 $38.96 $40.14
3 $38.68 $40.41 $41.01 $42.25
4 $40.72 $42.54 $43.17 $44.47
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
415 non-exempt Cust Srv Specialist-L 1 $30.55 $31.47 $31.47 $32.40
2 $32.16 $33.13 $33.13 $34.11
3 $33.85 $34.87 $34.87 $35.91
4 $35.63 $36.70 $36.70 $37.80
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
Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
17
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
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
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
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
451 non-exempt Park Maint Person 1 $25.70 $26.55 $26.64 $27.45
2 $27.05 $27.95 $28.04 $28.89
3 $28.47 $29.42 $29.52 $30.41
4 $29.97 $30.97 $31.07 $32.01
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
452 non-exempt Park Maint - Lead 1 $29.79 $30.78 $30.88 $31.82
2 $31.36 $32.40 $32.50 $33.49
3 $33.01 $34.11 $34.21 $35.25
4 $34.75 $35.90 $36.01 $37.10
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
460 non-exempt Parks/Golf Crew-Lead 1 $27.96 $28.90 $28.98 $29.86
2 $29.43 $30.42 $30.50 $31.43
3 $30.98 $32.02 $32.11 $33.08
4 $32.61 $33.70 $33.80 $34.82
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
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
462 non-exempt Field Service Pers WGW 1 $27.89 $29.51 $30.31 $31.23
2 $29.36 $31.06 $31.91 $32.87
3 $30.91 $32.69 $33.59 $34.60
4 $32.54 $34.41 $35.36 $36.42
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
Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
18
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
463 non-exempt Gas System Tech II 1 $31.91 $33.74 $34.68 $35.72
2 $33.59 $35.52 $36.50 $37.60
3 $35.36 $37.39 $38.42 $39.58
4 $37.22 $39.36 $40.44 $41.66
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
464 non-exempt Cathodic Protection Tech Assistant 1 $33.56 $35.49 $36.47 $37.57
2 $35.33 $37.36 $38.39 $39.55
3 $37.19 $39.33 $40.41 $41.63
4 $39.15 $41.40 $42.54 $43.82
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
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
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
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
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
489 non-exempt Gas System Tech 1 $30.39 $32.14 $33.01 $34.01
2 $31.99 $33.83 $34.75 $35.80
3 $33.67 $35.61 $36.58 $37.68
4 $35.44 $37.48 $38.50 $39.66
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
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
Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
19
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
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
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
502 non-exempt Chemist 1 $35.11 $36.20 $36.21 $37.30
2 $36.96 $38.10 $38.12 $39.26
3 $38.90 $40.10 $40.13 $41.33
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
503 non-exempt Laboratory Tech Wqc 1 $31.40 $32.37 $32.40 $33.36
2 $33.05 $34.07 $34.10 $35.12
3 $34.79 $35.86 $35.89 $36.97
4 $36.62 $37.75 $37.78 $38.92
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
504 non-exempt Sr Mech 1 $37.13 $38.24 $38.24 $39.39
2 $39.08 $40.25 $40.25 $41.46
3 $41.14 $42.37 $42.37 $43.64
4 $43.30 $44.60 $44.60 $45.94
5 $45.58 $7,900.53 $94,806.40 $46.95 $8,138.00 $97,656.00 $46.95 $8,138.00 $97,656.00 $48.36 $8,382.40 $100,588.80
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
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
508 non-exempt Ind Waste Inspec 1 $31.65 $33.06 $33.54 $34.56
2 $33.32 $34.80 $35.30 $36.38
3 $35.07 $36.63 $37.16 $38.29
4 $36.92 $38.56 $39.12 $40.30
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
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
Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
20
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
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
513 non-exempt Plans Examiner 1 $36.22 $37.88 $38.48 $39.63
2 $38.13 $39.87 $40.51 $41.72
3 $40.14 $41.97 $42.64 $43.92
4 $42.25 $44.18 $44.88 $46.23
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
514 non-exempt Development Project Coordinator I 1 $27.42 $28.67 $29.13 $30.01
2 $28.86 $30.18 $30.66 $31.59
3 $30.38 $31.77 $32.27 $33.25
4 $31.98 $33.44 $33.97 $35.00
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
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
517 non-exempt Plant Mechanic 1 $34.53 $35.58 $35.58 $36.64
2 $36.35 $37.45 $37.45 $38.57
3 $38.26 $39.42 $39.42 $40.60
4 $40.27 $41.49 $41.49 $42.74
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
528 non-exempt Lnper/Cbl Spl-Appren 1 $36.77 $38.45 $39.04 $40.21
2 $38.71 $40.47 $41.09 $42.33
3 $40.75 $42.60 $43.25 $44.56
4 $42.89 $44.84 $45.53 $46.90
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
529 non-exempt Electrician-Appren 1 $34.30 $35.70 $36.10 $37.18
2 $36.10 $37.58 $38.00 $39.14
3 $38.00 $39.56 $40.00 $41.20
4 $40.00 $41.64 $42.10 $43.37
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
530 non-exempt Electrician 1 $36.23 $37.72 $38.14 $39.28
2 $38.14 $39.70 $40.15 $41.35
3 $40.15 $41.79 $42.26 $43.53
4 $42.26 $43.99 $44.48 $45.82
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
531 non-exempt Lineperson/Cable Spl-T 1 $40.78 $42.63 $43.29 $44.59
2 $42.93 $44.87 $45.57 $46.94
3 $45.19 $47.23 $47.97 $49.41
4 $47.57 $49.72 $50.49 $52.01
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
Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
21
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
532 non-exempt Lineperson/Cable Spl-TL 1 $43.61 $45.59 $46.30 $47.69
2 $45.91 $47.99 $48.74 $50.20
3 $48.33 $50.52 $51.30 $52.84
4 $50.87 $53.18 $54.00 $55.62
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
533 non-exempt Elec Asst I 1 $27.09 $28.22 $28.53 $29.39
2 $28.52 $29.70 $30.03 $30.94
3 $30.02 $31.26 $31.61 $32.57
4 $31.60 $32.90 $33.27 $34.28
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
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
536 non-exempt Cathodic Tech 1 $41.21 $43.59 $44.77 $46.12
2 $43.38 $45.88 $47.13 $48.55
3 $45.66 $48.29 $49.61 $51.10
4 $48.06 $50.83 $52.22 $53.79
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
541 non-exempt Lineper/Cable Spl 1 $42.81 $44.75 $45.45 $46.83
2 $45.06 $47.11 $47.84 $49.29
3 $47.43 $49.59 $50.36 $51.88
4 $49.93 $52.20 $53.01 $54.61
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
2 $48.23 $50.42 $51.19 $52.73
3 $50.77 $53.07 $53.88 $55.51
4 $53.44 $55.86 $56.72 $58.43
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
543 non-exempt Overhead Underground Troubleman 1 $44.98 $47.03 $47.75 $49.18
2 $47.35 $49.50 $50.26 $51.77
3 $49.84 $52.10 $52.91 $54.49
4 $52.46 $54.84 $55.69 $57.36
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
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
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
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
Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
22
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
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
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
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
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
552 non-exempt Metering Technician 1 $40.36 $42.19 $42.85 $44.14
2 $42.48 $44.41 $45.10 $46.46
3 $44.72 $46.75 $47.47 $48.90
4 $47.07 $49.21 $49.97 $51.47
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
2 $45.47 $47.54 $48.28 $49.72
3 $47.86 $50.04 $50.82 $52.34
4 $50.38 $52.67 $53.49 $55.09
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
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
560 non-exempt Code Enforcement Off - L 1 $36.68 $38.36 $38.96 $40.14
2 $38.61 $40.38 $41.01 $42.25
3 $40.64 $42.50 $43.17 $44.47
4 $42.78 $44.74 $45.44 $46.81
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
570 non-exempt Parking Operations Lead 1 $44.20 $46.31 $47.14 $48.55
2 $46.53 $48.75 $49.62 $51.11
3 $48.98 $51.32 $52.23 $53.80
4 $51.56 $54.02 $54.98 $56.63
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
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
Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)
Appendix A-2
To MOA Between City of Palo Alto and SEIU
FY16/FY17 Salary Schedule
23
Rate Approx. Monthly Approx Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual Rate Approx. Monthly Approx. Annual
702 non-exempt Community Serv Offcr 1 $26.09 $27.33 $27.82 $28.65
2 $27.46 $28.77 $29.28 $30.16
3 $28.90 $30.28 $30.82 $31.75
4 $30.42 $31.87 $32.44 $33.42
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
389 non-exempt HEO/Installer Repairer 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
527 non-exempt Electrical Equipment Tech 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
Salaray Effective 7/28/17 (PP15:2016)Salary Effective 12/29/17 (PP26:2016)Job
Code FLSA Job Title Steps Salary Effective 5/6/16 (PP09:2016)Salary Effective 12/30/16 (PP26:2016)
Effective 11/29/14
1
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
206 Non-exempt Account Assistant Step 1 $20.11 Step 1 $20.61
Step 2 $21.16 Step 2 $21.69
Step 3 $22.28 Step 3 $22.83
Step 4 $23.45 Step 4 $24.04
Step 5 $24.68 $4,277.87 $51,334.40 Step 5 $25.30 $4,385.33 $52,624.00
204 Non-exempt Acct Spec Step 1 $23.49 Step 1 $24.07
Step 2 $24.72 Step 2 $25.34
Step 3 $26.02 Step 3 $26.67
Step 4 $27.39 Step 4 $28.08
Step 5 $28.84 $4,998.93 $59,987.20 Step 5 $29.56 $5,123.73 $61,484.80
207 Non-exempt Acct Spec-Lead Step 1 $25.14 Step 1 $25.77
Step 2 $26.46 Step 2 $27.12
Step 3 $27.86 Step 3 $28.55
Step 4 $29.32 Step 4 $30.05
Step 5 $30.87 $5,350.80 $64,209.60 Step 5 $31.64 $5,484.27 $65,811.20
294 Non-exempt Administrative Associate I Step 1 $23.09 Step 1 $23.67
Step 2 $24.30 Step 2 $24.91
Step 3 $25.58 Step 3 $26.22
Step 4 $26.93 Step 4 $27.60
Step 5 $28.35 $4,914.00 $58,968.00 Step 5 $29.05 $5,035.33 $60,424.00
295 Non-exempt Administrative Associate II Step 1 $25.09 Step 1 $25.72
Step 2 $26.41 Step 2 $27.07
Step 3 $27.80 Step 3 $28.50
Step 4 $29.26 Step 4 $30.00
Step 5 $30.80 $5,338.67 $64,064.00 Step 5 $31.57 $5,472.13 $65,665.60
296 Non-exempt Administrative Associate III Step 1 $26.89 Step 1 $27.57
Step 2 $28.31 Step 2 $29.02
Step 3 $29.80 Step 3 $30.54
Step 4 $31.37 Step 4 $32.15
Step 5 $33.02 $5,723.47 $68,681.60 Step 5 $33.84 $5,865.60 $70,387.20
277 Non-exempt Animal Attendant Step 1 $22.06 Step 1 $22.61
Step 2 $23.22 Step 2 $23.80
Step 3 $24.44 Step 3 $25.05
Step 4 $25.73 Step 4 $26.37
Step 5 $27.08 $4,693.87 $56,326.40 Step 5 $27.76 $4,811.73 $57,740.80
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
EXHIBIT "3"
Effective 11/29/14
2
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
276 Non-exempt Animal Control Off Step 1 $23.63 Step 1 $24.22
Step 2 $24.88 Step 2 $25.50
Step 3 $26.18 Step 3 $26.84
Step 4 $27.56 Step 4 $28.25
Step 5 $29.01 $5,028.40 $60,340.80 Step 5 $29.74 $5,154.93 $61,859.20
312 Non-exempt Animal Control Off Lead Step 1 $25.28 Step 1 $25.92
Step 2 $26.61 Step 2 $27.28
Step 3 $28.01 Step 3 $28.72
Step 4 $29.49 Step 4 $30.23
Step 5 $31.04 $5,380.27 $64,563.20 Step 5 $31.82 $5,515.47 $66,185.60
263 Non-exempt Animal Services Spec Step 1 $23.30 Step 1 $23.89
Step 2 $24.53 Step 2 $25.14
Step 3 $25.82 Step 3 $26.47
Step 4 $27.18 Step 4 $27.86
Step 5 $28.61 $4,959.07 $59,508.80 Step 5 $29.33 $5,083.87 $61,006.40
275 Non-exempt Animal Services Spec II Step 1 $25.70 Step 1 $26.34
Step 2 $27.05 Step 2 $27.72
Step 3 $28.47 Step 3 $29.18
Step 4 $29.97 Step 4 $30.72
Step 5 $31.55 $5,468.67 $65,624.00 Step 5 $32.34 $5,605.60 $67,267.20
244 Non-exempt Assoc Buyer Step 1 $30.09 Step 1 $30.85
Step 2 $31.68 Step 2 $32.47
Step 3 $33.35 Step 3 $34.18
Step 4 $35.10 Step 4 $35.98
Step 5 $36.95 $6,404.67 $76,856.00 Step 5 $37.87 $6,564.13 $78,769.60
333 Non-exempt Assoc Engineer Step 1 $37.08 Step 1 $38.00
Step 2 $39.03 Step 2 $40.00
Step 3 $41.08 Step 3 $42.11
Step 4 $43.24 Step 4 $44.32
Step 5 $45.52 $7,890.13 $94,681.60 Step 5 $46.66 $8,087.73 $97,052.80
353 Non-exempt Assoc Planner Step 1 $34.32 Step 1 $35.17
Step 2 $36.12 Step 2 $37.03
Step 3 $38.02 Step 3 $38.97
Step 4 $40.02 Step 4 $41.03
Step 5 $42.13 $7,302.53 $87,630.40 Step 5 $43.18 $7,484.53 $89,814.40
Effective 11/29/14
3
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
247 Non-exempt Assoc Power Engr Step 1 $39.47 Step 1 $40.46
Step 2 $41.55 Step 2 $42.59
Step 3 $43.73 Step 3 $44.83
Step 4 $46.04 Step 4 $47.19
Step 5 $48.46 $8,399.73 $100,796.80 Step 5 $49.67 $8,609.47 $103,313.60
269 Non-exempt Assoc Res Planner Step 1 $38.23 Step 1 $39.18
Step 2 $40.24 Step 2 $41.24
Step 3 $42.35 Step 3 $43.41
Step 4 $44.58 Step 4 $45.70
Step 5 $46.93 $8,134.53 $97,614.40 Step 5 $48.10 $8,337.33 $100,048.00
330 Non-exempt Asst Engineer Step 1 $33.57 Step 1 $34.41
Step 2 $35.34 Step 2 $36.22
Step 3 $37.20 Step 3 $38.13
Step 4 $39.15 Step 4 $40.13
Step 5 $41.22 $7,144.80 $85,737.60 Step 5 $42.25 $7,323.33 $87,880.00
256 Non-exempt Asst Power Engr Step 1 $35.63 Step 1 $36.52
Step 2 $37.51 Step 2 $38.45
Step 3 $39.48 Step 3 $40.47
Step 4 $41.56 Step 4 $42.60
Step 5 $43.75 $7,583.33 $91,000.00 Step 5 $44.84 $7,772.27 $93,267.20
268 Non-exempt Asst Res Planner Step 1 $34.50 Step 1 $35.37
Step 2 $36.32 Step 2 $37.23
Step 3 $38.23 Step 3 $39.19
Step 4 $40.24 Step 4 $41.25
Step 5 $42.36 $7,342.40 $88,108.80 Step 5 $43.42 $7,526.13 $90,313.60
299 Non-exempt Bldg Inspector Step 1 $33.78 Step 1 $34.63
Step 2 $35.56 Step 2 $36.45
Step 3 $37.43 Step 3 $38.37
Step 4 $39.40 Step 4 $40.39
Step 5 $41.48 $7,189.87 $86,278.40 Step 5 $42.51 $7,368.40 $88,420.80
300 Non-exempt Bldg Inspector Spec Step 1 $36.06 Step 1 $36.96
Step 2 $37.96 Step 2 $38.91
Step 3 $39.96 Step 3 $40.96
Step 4 $42.06 Step 4 $43.11
Step 5 $44.28 $7,675.20 $92,102.40 Step 5 $45.38 $7,865.87 $94,390.40
Effective 11/29/14
4
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
370 Non-exempt Bldg Serviceperson Step 1 $20.06 Step 1 $20.56
Step 2 $21.11 Step 2 $21.64
Step 3 $22.22 Step 3 $22.78
Step 4 $23.39 Step 4 $23.98
Step 5 $24.62 $4,267.47 $51,209.60 Step 5 $25.24 $4,374.93 $52,499.20
371 Non-exempt Bldg Serviceperson-L Step 1 $21.47 Step 1 $22.00
Step 2 $22.60 Step 2 $23.16
Step 3 $23.79 Step 3 $24.38
Step 4 $25.04 Step 4 $25.66
Step 5 $26.36 $4,569.07 $54,828.80 Step 5 $27.02 $4,683.47 $56,201.60
355 Non-exempt Bldg/Plg Technician Step 1 $27.83 Step 1 $28.52
Step 2 $29.29 Step 2 $30.02
Step 3 $30.83 Step 3 $31.60
Step 4 $32.45 Step 4 $33.27
Step 5 $34.16 $5,921.07 $71,052.80 Step 5 $35.02 $6,070.13 $72,841.60
340 Non-exempt Business Analyst Step 1 $45.69 Step 1 $46.84
Step 2 $48.10 Step 2 $49.30
Step 3 $50.63 Step 3 $51.89
Step 4 $53.29 Step 4 $54.63
Step 5 $56.10 $9,724.00 $116,688.00 Step 5 $57.50 $9,966.67 $119,600.00
3400 Non-exempt Business Analyst - S Step 1 $45.69 Step 1 $46.84
Step 2 $48.10 Step 2 $49.30
Step 3 $50.63 Step 3 $51.89
Step 4 $53.29 Step 4 $54.63
Step 5 $56.10 $9,724.00 $116,688.00 Step 5 $57.50 $9,966.67 $119,600.00
212 Non-exempt Buyer Step 1 $33.14 Step 1 $33.96
Step 2 $34.88 Step 2 $35.75
Step 3 $36.72 Step 3 $37.63
Step 4 $38.65 Step 4 $39.61
Step 5 $40.68 $7,051.20 $84,614.40 Step 5 $41.70 $7,228.00 $86,736.00
464 Non-exempt Cathodic Protection Tech Assistant Step 1 $31.41 Step 1 $32.20
Step 2 $33.06 Step 2 $33.89
Step 3 $34.80 Step 3 $35.67
Step 4 $36.64 Step 4 $37.55
Step 5 $38.56 $6,683.73 $80,204.80 Step 5 $39.53 $6,851.87 $82,222.40
Effective 11/29/14
5
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
536 Non-exempt Cathodic Tech Step 1 $38.56 Step 1 $39.53
Step 2 $40.59 Step 2 $41.61
Step 3 $42.73 Step 3 $43.80
Step 4 $44.98 Step 4 $46.10
Step 5 $47.35 $8,207.33 $98,488.00 Step 5 $48.53 $8,411.87 $100,942.40
208 Non-exempt CDBG Coordinator Step 1 $36.68 Step 1 $37.60
Step 2 $38.61 Step 2 $39.58
Step 3 $40.64 Step 3 $41.66
Step 4 $42.78 Step 4 $43.85
Step 5 $45.04 $7,806.93 $93,683.20 Step 5 $46.16 $8,001.07 $96,012.80
408 Non-exempt Cement Finisher Step 1 $28.17 Step 1 $28.88
Step 2 $29.66 Step 2 $30.40
Step 3 $31.22 Step 3 $32.00
Step 4 $32.86 Step 4 $33.68
Step 5 $34.59 $5,995.60 $71,947.20 Step 5 $35.45 $6,144.67 $73,736.00
409 Non-exempt Cement Finisher Lead Step 1 $30.14 Step 1 $30.89
Step 2 $31.73 Step 2 $32.52
Step 3 $33.40 Step 3 $34.23
Step 4 $35.16 Step 4 $36.03
Step 5 $37.01 $6,415.07 $76,980.80 Step 5 $37.93 $6,574.53 $78,894.40
502 Non-exempt Chemist Step 1 $33.72 Step 1 $34.56
Step 2 $35.49 Step 2 $36.38
Step 3 $37.36 Step 3 $38.29
Step 4 $39.32 Step 4 $40.31
Step 5 $41.39 $7,174.27 $86,091.20 Step 5 $42.43 $7,354.53 $88,254.40
297 Non-exempt Chf Elec Undg Inspec Step 1 $37.37 Step 1 $38.31
Step 2 $39.34 Step 2 $40.32
Step 3 $41.41 Step 3 $42.45
Step 4 $43.59 Step 4 $44.68
Step 5 $45.88 $7,952.53 $95,430.40 Step 5 $47.03 $8,151.87 $97,822.40
239 Non-exempt Chf Inspec WGW Step 1 $36.14 Step 1 $37.04
Step 2 $38.04 Step 2 $38.99
Step 3 $40.04 Step 3 $41.04
Step 4 $42.15 Step 4 $43.20
Step 5 $44.37 $7,690.80 $92,289.60 Step 5 $45.48 $7,883.20 $94,598.40
Effective 11/29/14
6
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
301 Non-exempt Code Enforcement Off Step 1 $32.45 Step 1 $33.26
Step 2 $34.15 Step 2 $35.01
Step 3 $35.95 Step 3 $36.85
Step 4 $37.84 Step 4 $38.79
Step 5 $39.84 $6,905.60 $82,867.20 Step 5 $40.83 $7,077.20 $84,926.40
306 Non-exempt Comm Tech Step 1 $34.51 Step 1 $35.37
Step 2 $36.33 Step 2 $37.24
Step 3 $38.24 Step 3 $39.20
Step 4 $40.25 Step 4 $41.26
Step 5 $42.37 $7,344.13 $88,129.60 Step 5 $43.43 $7,527.87 $90,334.40
702 Non-exempt Community Serv Offcr Step 1 $24.64 Step 1 $25.25
Step 2 $25.93 Step 2 $26.58
Step 3 $27.30 Step 3 $27.98
Step 4 $28.73 Step 4 $29.45
Step 5 $30.25 $5,243.33 $62,920.00 Step 5 $31.00 $5,373.33 $64,480.00
320 Non-exempt Community Service Officer - Lead Step 1 $26.35 Step 1 $27.01
Step 2 $27.74 Step 2 $28.43
Step 3 $29.20 Step 3 $29.93
Step 4 $30.73 Step 4 $31.50
Step 5 $32.35 $5,607.33 $67,288.00 Step 5 $33.16 $5,747.73 $68,972.80
341 Non-exempt Coor Trans Sys Mgmt Step 1 $34.87 Step 1 $35.74
Step 2 $36.70 Step 2 $37.62
Step 3 $38.64 Step 3 $39.60
Step 4 $40.67 Step 4 $41.69
Step 5 $42.81 $7,420.40 $89,044.80 Step 5 $43.88 $7,605.87 $91,270.40
3410 Non-exempt Coor Trans Sys Mgmt - S Step 1 $34.87 Step 1 $35.74
Step 2 $36.70 Step 2 $37.62
Step 3 $38.64 Step 3 $39.60
Step 4 $40.67 Step 4 $41.69
Step 5 $42.81 $7,420.40 $89,044.80 Step 5 $43.88 $7,605.87 $91,270.40
255 Non-exempt Coord Library Prog Step 1 $31.77 Step 1 $32.56
Step 2 $33.44 Step 2 $34.27
Step 3 $35.20 Step 3 $36.08
Step 4 $37.05 Step 4 $37.98
Step 5 $39.00 $6,760.00 $81,120.00 Step 5 $39.98 $6,929.87 $83,158.40
Effective 11/29/14
7
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
342 Non-exempt Coord Pub Wks Proj Step 1 $33.13 Step 1 $33.96
Step 2 $34.88 Step 2 $35.75
Step 3 $36.71 Step 3 $37.63
Step 4 $38.64 Step 4 $39.61
Step 5 $40.68 $7,051.20 $84,614.40 Step 5 $41.69 $7,226.27 $86,715.20
317 Non-exempt Coord Rec Prog Step 1 $28.45 Step 1 $29.17
Step 2 $29.95 Step 2 $30.70
Step 3 $31.53 Step 3 $32.32
Step 4 $33.19 Step 4 $34.02
Step 5 $34.94 $6,056.27 $72,675.20 Step 5 $35.81 $6,207.07 $74,484.80
343 Non-exempt Coord Util Saf & Sec Step 1 $37.64 Step 1 $38.58
Step 2 $39.62 Step 2 $40.62
Step 3 $41.71 Step 3 $42.75
Step 4 $43.91 Step 4 $45.00
Step 5 $46.22 $8,011.47 $96,137.60 Step 5 $47.37 $8,210.80 $98,529.60
3430 Non-exempt Coord Util Saf & Sec - S Step 1 $37.64 Step 1 $38.58
Step 2 $39.62 Step 2 $40.62
Step 3 $41.71 Step 3 $42.75
Step 4 $43.91 Step 4 $45.00
Step 5 $46.22 $8,011.47 $96,137.60 Step 5 $47.37 $8,210.80 $98,529.60
344 Non-exempt Coord Utility Proj Step 1 $35.77 Step 1 $36.67
Step 2 $37.66 Step 2 $38.60
Step 3 $39.64 Step 3 $40.63
Step 4 $41.73 Step 4 $42.77
Step 5 $43.92 $7,612.80 $91,353.60 Step 5 $45.02 $7,803.47 $93,641.60
3440 Non-exempt Coord Utility Proj - S Step 1 $35.77 Step 1 $36.67
Step 2 $37.66 Step 2 $38.60
Step 3 $39.64 Step 3 $40.63
Step 4 $41.73 Step 4 $42.77
Step 5 $43.92 $7,612.80 $91,353.60 Step 5 $45.02 $7,803.47 $93,641.60
242 Non-exempt Coord Zero Waste Step 1 $31.81 Step 1 $32.61
Step 2 $33.49 Step 2 $34.32
Step 3 $35.25 Step 3 $36.13
Step 4 $37.10 Step 4 $38.03
Step 5 $39.06 $6,770.40 $81,244.80 Step 5 $40.03 $6,938.53 $83,262.40
Effective 11/29/14
8
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
205 Non-exempt Court Liaison Officer Step 1 $32.07 Step 1 $32.87
Step 2 $33.76 Step 2 $34.60
Step 3 $35.54 Step 3 $36.42
Step 4 $37.41 Step 4 $38.34
Step 5 $39.37 $6,824.13 $81,889.60 Step 5 $40.36 $6,995.73 $83,948.80
214 Non-exempt Crime Analyst Step 1 $32.07 Step 1 $32.87
Step 2 $33.76 Step 2 $34.60
Step 3 $35.54 Step 3 $36.42
Step 4 $37.41 Step 4 $38.34
Step 5 $39.37 $6,824.13 $81,889.60 Step 5 $40.36 $6,995.73 $83,948.80
415 Non-exempt Cust Srv Specialist-L Step 1 $29.35 Step 1 $30.09
Step 2 $30.90 Step 2 $31.67
Step 3 $32.52 Step 3 $33.34
Step 4 $34.23 Step 4 $35.09
Step 5 $36.04 $6,246.93 $74,963.20 Step 5 $36.94 $6,402.93 $76,835.20
218 Non-exempt Cust Svc Represent Step 1 $24.96 Step 1 $25.58
Step 2 $26.27 Step 2 $26.93
Step 3 $27.65 Step 3 $28.34
Step 4 $29.11 Step 4 $29.84
Step 5 $30.64 $5,310.93 $63,731.20 Step 5 $31.41 $5,444.40 $65,332.80
217 Non-exempt Cust Svc Spec Step 1 $27.45 Step 1 $28.14
Step 2 $28.89 Step 2 $29.62
Step 3 $30.42 Step 3 $31.18
Step 4 $32.02 Step 4 $32.82
Step 5 $33.70 $5,841.33 $70,096.00 Step 5 $34.54 $5,986.93 $71,843.20
260 Non-exempt Desktop Technician Step 1 $29.92 Step 1 $30.66
Step 2 $31.49 Step 2 $32.28
Step 3 $33.15 Step 3 $33.98
Step 4 $34.89 Step 4 $35.77
Step 5 $36.73 $6,366.53 $76,398.40 Step 5 $37.65 $6,526.00 $78,312.00
514 Non-exempt Development Project Coordinator I Step 1 $25.95 Step 1 $26.60
Step 2 $27.31 Step 2 $28.00
Step 3 $28.75 Step 3 $29.47
Step 4 $30.26 Step 4 $31.02
Step 5 $31.86 $5,522.40 $66,268.80 Step 5 $32.65 $5,659.33 $67,912.00
Effective 11/29/14
9
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
515 Non-exempt Development Project Coordinator II Step 1 $29.49 Step 1 $30.22
Step 2 $31.04 Step 2 $31.81
Step 3 $32.67 Step 3 $33.49
Step 4 $34.39 Step 4 $35.25
Step 5 $36.20 $6,274.67 $75,296.00 Step 5 $37.11 $6,432.40 $77,188.80
516 Non-exempt Development Project Coordinator III Step 1 $32.52 Step 1 $33.33
Step 2 $34.23 Step 2 $35.08
Step 3 $36.03 Step 3 $36.93
Step 4 $37.92 Step 4 $38.87
Step 5 $39.92 $6,919.47 $83,033.60 Step 5 $40.92 $7,092.80 $85,113.60
533 Non-exempt Elec Asst I Step 1 $25.75 Step 1 $26.40
Step 2 $27.11 Step 2 $27.79
Step 3 $28.54 Step 3 $29.25
Step 4 $30.04 Step 4 $30.79
Step 5 $31.62 $5,480.80 $65,769.60 Step 5 $32.41 $5,617.73 $67,412.80
267 Non-exempt Elec Undgd Inspec Step 1 $32.02 Step 1 $32.82
Step 2 $33.71 Step 2 $34.55
Step 3 $35.48 Step 3 $36.37
Step 4 $37.35 Step 4 $38.28
Step 5 $39.31 $6,813.73 $81,764.80 Step 5 $40.30 $6,985.33 $83,824.00
345 Non-exempt Electric Project Engineer Step 1 $47.28 Step 1 $48.47
Step 2 $49.77 Step 2 $51.02
Step 3 $52.39 Step 3 $53.70
Step 4 $55.15 Step 4 $56.53
Step 5 $58.05 $10,062.00 $120,744.00 Step 5 $59.50 $10,313.33 $123,760.00
3450 Non-exempt Electric Project Engineer - S Step 1 $47.28 Step 1 $48.47
Step 2 $49.77 Step 2 $51.02
Step 3 $52.39 Step 3 $53.70
Step 4 $55.15 Step 4 $56.53
Step 5 $58.05 $10,062.00 $120,744.00 Step 5 $59.50 $10,313.33 $123,760.00
292 Non-exempt Electric Underground Inspector - Lead Step 1 $34.25 Step 1 $35.11
Step 2 $36.05 Step 2 $36.95
Step 3 $37.95 Step 3 $38.90
Step 4 $39.95 Step 4 $40.95
Step 5 $42.05 $7,288.67 $87,464.00 Step 5 $43.10 $7,470.67 $89,648.00
Effective 11/29/14
10
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
530 Non-exempt Electrician Step 1 $34.45 Step 1 $35.31
Step 2 $36.26 Step 2 $37.17
Step 3 $38.17 Step 3 $39.12
Step 4 $40.18 Step 4 $41.18
Step 5 $42.29 $7,330.27 $87,963.20 Step 5 $43.35 $7,514.00 $90,168.00
529 Non-exempt Electrician-Appren Step 1 $32.60 Step 1 $33.42
Step 2 $34.32 Step 2 $35.18
Step 3 $36.13 Step 3 $37.03
Step 4 $38.03 Step 4 $38.98
Step 5 $40.03 $6,938.53 $83,262.40 Step 5 $41.03 $7,111.87 $85,342.40
535 Non-exempt Electrician-Lead Step 1 $36.88 Step 1 $37.80
Step 2 $38.82 Step 2 $39.79
Step 3 $40.86 Step 3 $41.88
Step 4 $43.01 Step 4 $44.09
Step 5 $45.28 $7,848.53 $94,182.40 Step 5 $46.41 $8,044.40 $96,532.80
399 Non-exempt Emergency Med Svs Data Specialist Step 1 $26.89 Step 1 $27.57
Step 2 $28.31 Step 2 $29.02
Step 3 $29.80 Step 3 $30.54
Step 4 $31.37 Step 4 $32.15
Step 5 $33.02 $5,723.02 $68,676.19 Step 5 $33.84 $5,866.09 $70,393.10
311 Non-exempt Eng Tech I Step 1 $25.10 Step 1 $25.73
Step 2 $26.42 Step 2 $27.08
Step 3 $27.81 Step 3 $28.51
Step 4 $29.28 Step 4 $30.01
Step 5 $30.82 $5,342.13 $64,105.60 Step 5 $31.59 $5,475.60 $65,707.20
332 Non-exempt Engineer Step 1 $41.76 Step 1 $42.80
Step 2 $43.96 Step 2 $45.06
Step 3 $46.27 Step 3 $47.43
Step 4 $48.71 Step 4 $49.92
Step 5 $51.27 $8,886.80 $106,641.60 Step 5 $52.55 $9,108.67 $109,304.00
323 Non-exempt Engr Tech II Step 1 $27.16 Step 1 $27.84
Step 2 $28.59 Step 2 $29.31
Step 3 $30.10 Step 3 $30.85
Step 4 $31.68 Step 4 $32.47
Step 5 $33.35 $5,780.67 $69,368.00 Step 5 $34.18 $5,924.53 $71,094.40
Effective 11/29/14
11
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
319 Non-exempt Engr Tech III Step 1 $30.32 Step 1 $31.08
Step 2 $31.92 Step 2 $32.71
Step 3 $33.60 Step 3 $34.43
Step 4 $35.36 Step 4 $36.25
Step 5 $37.22 $6,451.47 $77,417.60 Step 5 $38.16 $6,614.40 $79,372.80
257 Non-exempt Environmental Spec Step 1 $35.70 Step 1 $36.59
Step 2 $37.58 Step 2 $38.52
Step 3 $39.56 Step 3 $40.55
Step 4 $41.64 Step 4 $42.68
Step 5 $43.83 $7,597.20 $91,166.40 Step 5 $44.93 $7,787.87 $93,454.40
211 Non-exempt Equip Maint Serv Per Step 1 $21.49 Step 1 $22.03
Step 2 $22.62 Step 2 $23.19
Step 3 $23.81 Step 3 $24.41
Step 4 $25.07 Step 4 $25.69
Step 5 $26.39 $4,574.27 $54,891.20 Step 5 $27.05 $4,688.67 $56,264.00
396 Non-exempt Equip Operator Step 1 $26.05 Step 1 $26.71
Step 2 $27.43 Step 2 $28.11
Step 3 $28.87 Step 3 $29.59
Step 4 $30.39 Step 4 $31.15
Step 5 $31.99 $5,544.93 $66,539.20 Step 5 $32.79 $5,683.60 $68,203.20
397 Non-exempt Equip Operator - Lead Step 1 $27.88 Step 1 $28.58
Step 2 $29.35 Step 2 $30.08
Step 3 $30.89 Step 3 $31.67
Step 4 $32.52 Step 4 $33.33
Step 5 $34.23 $5,933.20 $71,198.40 Step 5 $35.09 $6,082.27 $72,987.20
250 Non-exempt Equip Parts Tech Step 1 $23.36 Step 1 $23.95
Step 2 $24.59 Step 2 $25.21
Step 3 $25.89 Step 3 $26.53
Step 4 $27.25 Step 4 $27.93
Step 5 $28.68 $4,971.20 $59,654.40 Step 5 $29.40 $5,096.00 $61,152.00
203 Non-exempt Facilities Asst Step 1 $21.61 Step 1 $22.15
Step 2 $22.75 Step 2 $23.31
Step 3 $23.94 Step 3 $24.54
Step 4 $25.20 Step 4 $25.83
Step 5 $26.53 $4,598.53 $55,182.40 Step 5 $27.19 $4,712.93 $56,555.20
Effective 11/29/14
12
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
374 Non-exempt Facilities Carpenter Step 1 $28.17 Step 1 $28.88
Step 2 $29.66 Step 2 $30.40
Step 3 $31.22 Step 3 $32.00
Step 4 $32.86 Step 4 $33.68
Step 5 $34.59 $5,995.60 $71,947.20 Step 5 $35.45 $6,144.67 $73,736.00
375 Non-exempt Facilities Elect Step 1 $28.54 Step 1 $29.25
Step 2 $30.04 Step 2 $30.79
Step 3 $31.62 Step 3 $32.41
Step 4 $33.29 Step 4 $34.12
Step 5 $35.04 $6,073.60 $72,883.20 Step 5 $35.91 $6,224.40 $74,692.80
373 Non-exempt Facilities Maint-L Step 1 $36.41 Step 1 $37.32
Step 2 $38.32 Step 2 $39.28
Step 3 $40.34 Step 3 $41.35
Step 4 $42.46 Step 4 $43.52
Step 5 $44.70 $7,748.00 $92,976.00 Step 5 $45.81 $7,940.40 $95,284.80
376 Non-exempt Facilities Mech Step 1 $28.17 Step 1 $28.88
Step 2 $29.66 Step 2 $30.40
Step 3 $31.22 Step 3 $32.00
Step 4 $32.86 Step 4 $33.68
Step 5 $34.59 $5,995.60 $71,947.20 Step 5 $35.45 $6,144.67 $73,736.00
376 Non-exempt Facilities Technician Step 1 $31.07 Step 1 $31.85
Step 2 $32.71 Step 2 $33.53
Step 3 $34.43 Step 3 $35.29
Step 4 $36.24 Step 4 $37.15
Step 5 $38.15 $6,612.67 $79,352.00 Step 5 $39.10 $6,777.98 $81,335.80
377 Non-exempt Facilities Painter Step 1 $28.17 Step 1 $28.88
Step 2 $29.66 Step 2 $30.40
Step 3 $31.22 Step 3 $32.00
Step 4 $32.86 Step 4 $33.68
Step 5 $34.59 $5,995.60 $71,947.20 Step 5 $35.45 $6,144.67 $73,736.00
462 Non-exempt Field Service Pers WGW Step 1 $26.11 Step 1 $26.76
Step 2 $27.48 Step 2 $28.17
Step 3 $28.93 Step 3 $29.65
Step 4 $30.45 Step 4 $31.21
Step 5 $32.05 $5,555.33 $66,664.00 Step 5 $32.85 $5,694.00 $68,328.00
Effective 11/29/14
13
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
383 Non-exempt Fleet Svcs Coord Step 1 $27.84 Step 1 $28.54
Step 2 $29.31 Step 2 $30.04
Step 3 $30.85 Step 3 $31.62
Step 4 $32.47 Step 4 $33.28
Step 5 $34.18 $5,924.53 $71,094.40 Step 5 $35.03 $6,071.87 $72,862.40
489 Non-exempt Gas System Tech Step 1 $28.44 Step 1 $29.15
Step 2 $29.94 Step 2 $30.68
Step 3 $31.51 Step 3 $32.30
Step 4 $33.17 Step 4 $34.00
Step 5 $34.91 $6,051.07 $72,612.80 Step 5 $35.79 $6,203.60 $74,443.20
463 Non-exempt Gas System Tech II Step 1 $29.87 Step 1 $30.61
Step 2 $31.44 Step 2 $32.22
Step 3 $33.09 Step 3 $33.92
Step 4 $34.83 Step 4 $35.70
Step 5 $36.67 $6,356.13 $76,273.60 Step 5 $37.58 $6,513.87 $78,166.40
398 Non-exempt Geographic Inform Syst Specialist Step 1 $38.36 Step 1 $39.32
Step 2 $40.38 Step 2 $41.39
Step 3 $42.50 Step 3 $43.57
Step 4 $44.74 Step 4 $45.86
Step 5 $47.09 $8,162.27 $97,947.20 Step 5 $48.27 $8,366.80 $100,401.60
390 Non-exempt Heavy Equip Oper Step 1 $29.51 Step 1 $30.24
Step 2 $31.06 Step 2 $31.84
Step 3 $32.69 Step 3 $33.51
Step 4 $34.41 Step 4 $35.27
Step 5 $36.23 $6,279.87 $75,358.40 Step 5 $37.13 $6,435.87 $77,230.40
391 Non-exempt Heavy Equip Oper-L Step 1 $31.56 Step 1 $32.35
Step 2 $33.22 Step 2 $34.05
Step 3 $34.97 Step 3 $35.84
Step 4 $36.81 Step 4 $37.73
Step 5 $38.75 $6,716.67 $80,600.00 Step 5 $39.72 $6,884.80 $82,617.60
508 Non-exempt Ind Waste Inspec Step 1 $29.99 Step 1 $30.74
Step 2 $31.57 Step 2 $32.36
Step 3 $33.24 Step 3 $34.07
Step 4 $34.98 Step 4 $35.86
Step 5 $36.83 $6,383.87 $76,606.40 Step 5 $37.75 $6,543.33 $78,520.00
Effective 11/29/14
14
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
258 Non-exempt Ind Waste Invtgtr Step 1 $33.71 Step 1 $34.55
Step 2 $35.48 Step 2 $36.37
Step 3 $37.35 Step 3 $38.28
Step 4 $39.31 Step 4 $40.30
Step 5 $41.38 $7,172.53 $86,070.40 Step 5 $42.42 $7,352.80 $88,233.60
365 Non-exempt Industrial Waste Technician Step 1 $27.08 Step 1 $27.76
Step 2 $28.51 Step 2 $29.22
Step 3 $30.01 Step 3 $30.76
Step 4 $31.59 Step 4 $32.38
Step 5 $33.25 $5,763.33 $69,160.00 Step 5 $34.08 $5,907.20 $70,886.40
227 Non-exempt Inspector, Field Svc Step 1 $32.63 Step 1 $33.44
Step 2 $34.34 Step 2 $35.20
Step 3 $36.15 Step 3 $37.05
Step 4 $38.05 Step 4 $39.00
Step 5 $40.06 $6,943.73 $83,324.80 Step 5 $41.06 $7,117.07 $85,404.80
308 Non-exempt Instrum Elec Step 1 $32.48 Step 1 $33.29
Step 2 $34.19 Step 2 $35.04
Step 3 $35.99 Step 3 $36.89
Step 4 $37.88 Step 4 $38.83
Step 5 $39.87 $6,910.80 $82,929.60 Step 5 $40.87 $7,084.13 $85,009.60
293 Non-exempt Junior Museum & Zoo Educator Step 1 $25.46 Step 1 $26.09
Step 2 $26.80 Step 2 $27.47
Step 3 $28.21 Step 3 $28.91
Step 4 $29.69 Step 4 $30.43
Step 5 $31.25 $5,416.67 $65,000.00 Step 5 $32.03 $5,551.87 $66,622.40
503 Non-exempt Laboratory Tech Wqc Step 1 $30.15 Step 1 $30.91
Step 2 $31.74 Step 2 $32.53
Step 3 $33.41 Step 3 $34.25
Step 4 $35.17 Step 4 $36.05
Step 5 $37.02 $6,416.80 $77,001.60 Step 5 $37.95 $6,578.00 $78,936.00
413 Non-exempt Landfill Technician Step 1 $33.08 Step 1 $33.90
Step 2 $34.82 Step 2 $35.69
Step 3 $36.65 Step 3 $37.57
Step 4 $38.58 Step 4 $39.54
Step 5 $40.61 $7,039.07 $84,468.80 Step 5 $41.62 $7,214.13 $86,569.60
Effective 11/29/14
15
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
254 Non-exempt Librarian Step 1 $25.65 Step 1 $26.29
Step 2 $27.00 Step 2 $27.68
Step 3 $28.42 Step 3 $29.13
Step 4 $29.92 Step 4 $30.67
Step 5 $31.49 $5,458.27 $65,499.20 Step 5 $32.28 $5,595.20 $67,142.40
252 Non-exempt Library Associate Step 1 $23.57 Step 1 $24.16
Step 2 $24.81 Step 2 $25.43
Step 3 $26.12 Step 3 $26.77
Step 4 $27.49 Step 4 $28.18
Step 5 $28.94 $5,016.27 $60,195.20 Step 5 $29.66 $5,141.07 $61,692.80
222 Non-exempt Library Asst Step 1 $20.43 Step 1 $20.94
Step 2 $21.50 Step 2 $22.04
Step 3 $22.64 Step 3 $23.20
Step 4 $23.83 Step 4 $24.42
Step 5 $25.08 $4,347.20 $52,166.40 Step 5 $25.71 $4,456.40 $53,476.80
253 Non-exempt Library Specialist Step 1 $22.29 Step 1 $22.85
Step 2 $23.46 Step 2 $24.05
Step 3 $24.70 Step 3 $25.32
Step 4 $26.00 Step 4 $26.65
Step 5 $27.37 $4,744.13 $56,929.60 Step 5 $28.05 $4,862.00 $58,344.00
541 Non-exempt Lineper/Cable Spl Step 1 $40.53 Step 1 $41.54
Step 2 $42.66 Step 2 $43.73
Step 3 $44.91 Step 3 $46.03
Step 4 $47.27 Step 4 $48.46
Step 5 $49.76 $8,625.07 $103,500.80 Step 5 $51.01 $8,841.73 $106,100.80
542 Non-exempt Lineper/Cable Spl-L Step 1 $43.38 Step 1 $44.47
Step 2 $45.67 Step 2 $46.81
Step 3 $48.07 Step 3 $49.27
Step 4 $50.60 Step 4 $51.86
Step 5 $53.26 $9,231.73 $110,780.80 Step 5 $54.59 $9,462.27 $113,547.20
531 Non-exempt Lineperson/Cable Spl-T Step 1 $38.61 Step 1 $39.57
Step 2 $40.64 Step 2 $41.66
Step 3 $42.78 Step 3 $43.85
Step 4 $45.03 Step 4 $46.16
Step 5 $47.40 $8,216.00 $98,592.00 Step 5 $48.59 $8,422.27 $101,067.20
Effective 11/29/14
16
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
532 Non-exempt Lineperson/Cable Spl-TL Step 1 $41.30 Step 1 $42.33
Step 2 $43.47 Step 2 $44.56
Step 3 $45.76 Step 3 $46.91
Step 4 $48.17 Step 4 $49.37
Step 5 $50.71 $8,789.73 $105,476.80 Step 5 $51.97 $9,008.13 $108,097.60
528 Non-exempt Lnper/Cbl Spl-Appren Step 1 $34.82 Step 1 $35.69
Step 2 $36.65 Step 2 $37.57
Step 3 $38.58 Step 3 $39.54
Step 4 $40.61 Step 4 $41.63
Step 5 $42.75 $7,410.00 $88,920.00 Step 5 $43.82 $7,595.47 $91,145.60
213 Non-exempt Mailing Svcs Spec Step 1 $19.65 Step 1 $20.14
Step 2 $20.68 Step 2 $21.20
Step 3 $21.77 Step 3 $22.32
Step 4 $22.92 Step 4 $23.49
Step 5 $24.12 $4,180.80 $50,169.60 Step 5 $24.73 $4,286.53 $51,438.40
505 Non-exempt Maint Mech Step 1 $33.18 Step 1 $34.01
Step 2 $34.93 Step 2 $35.80
Step 3 $36.77 Step 3 $37.69
Step 4 $38.70 Step 4 $39.67
Step 5 $40.74 $7,061.60 $84,739.20 Step 5 $41.76 $7,238.40 $86,860.80
291 Non-exempt Maintenance Mechanic-Welding Step 1 $31.38 Step 1 $32.16
Step 2 $33.03 Step 2 $33.86
Step 3 $34.77 Step 3 $35.64
Step 4 $36.60 Step 4 $37.51
Step 5 $38.53 $6,678.53 $80,142.40 Step 5 $39.49 $6,844.93 $82,139.20
346 Non-exempt Management Assistant Step 1 $29.21 Step 1 $29.94
Step 2 $30.75 Step 2 $31.52
Step 3 $32.37 Step 3 $33.18
Step 4 $34.07 Step 4 $34.92
Step 5 $35.86 $6,215.73 $74,588.80 Step 5 $36.76 $6,371.73 $76,460.80
3460 Non-exempt Management Assistant - S Step 1 $29.21 Step 1 $29.94
Step 2 $30.75 Step 2 $31.52
Step 3 $32.37 Step 3 $33.18
Step 4 $34.07 Step 4 $34.92
Step 5 $35.86 $6,215.73 $74,588.80 Step 5 $36.76 $6,371.73 $76,460.80
Effective 11/29/14
17
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
216 Non-exempt Marketing Eng Step 1 $41.76 Step 1 $42.80
Step 2 $43.96 Step 2 $45.06
Step 3 $46.27 Step 3 $47.43
Step 4 $48.71 Step 4 $49.92
Step 5 $51.27 $8,886.80 $106,641.60 Step 5 $52.55 $9,108.67 $109,304.00
241 Non-exempt Meter Reader Step 1 $23.33 Step 1 $23.91
Step 2 $24.56 Step 2 $25.17
Step 3 $25.85 Step 3 $26.50
Step 4 $27.21 Step 4 $27.89
Step 5 $28.64 $4,964.27 $59,571.20 Step 5 $29.36 $5,089.07 $61,068.80
240 Non-exempt Meter Reader-Lead Step 1 $24.96 Step 1 $25.58
Step 2 $26.27 Step 2 $26.93
Step 3 $27.65 Step 3 $28.34
Step 4 $29.11 Step 4 $29.84
Step 5 $30.64 $5,310.93 $63,731.20 Step 5 $31.41 $5,444.40 $65,332.80
369 Non-exempt Meter Shop Lead Step 1 $27.71 Step 1 $28.40
Step 2 $29.17 Step 2 $29.89
Step 3 $30.70 Step 3 $31.47
Step 4 $32.32 Step 4 $33.12
Step 5 $34.02 $5,896.80 $70,761.60 Step 5 $34.87 $6,044.13 $72,529.60
552 Non-exempt Metering Technician Step 1 $38.22 Step 1 $39.17
Step 2 $40.23 Step 2 $41.23
Step 3 $42.35 Step 3 $43.40
Step 4 $44.57 Step 4 $45.69
Step 5 $46.92 $8,132.80 $97,593.60 Step 5 $48.09 $8,335.60 $100,027.20
551 Non-exempt Metering Technician – Apprentice Step 1 $36.16 Step 1 $37.07
Step 2 $38.07 Step 2 $39.02
Step 3 $40.07 Step 3 $41.07
Step 4 $42.18 Step 4 $43.24
Step 5 $44.40 $7,696.00 $92,352.00 Step 5 $45.51 $7,888.40 $94,660.80
553 Non-exempt Metering Technician – Lead Step 1 $40.89 Step 1 $41.91
Step 2 $43.04 Step 2 $44.12
Step 3 $45.31 Step 3 $46.44
Step 4 $47.69 Step 4 $48.89
Step 5 $50.20 $8,701.33 $104,416.00 Step 5 $51.46 $8,919.73 $107,036.80
Effective 11/29/14
18
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
384 Non-exempt Mobile Service Tech Step 1 $33.07 Step 1 $33.90
Step 2 $34.81 Step 2 $35.68
Step 3 $36.65 Step 3 $37.56
Step 4 $38.58 Step 4 $39.54
Step 5 $40.61 $7,039.07 $84,468.80 Step 5 $41.62 $7,214.13 $86,569.60
381 Non-exempt Motor Equip Mech-L Step 1 $33.70 Step 1 $34.54
Step 2 $35.47 Step 2 $36.36
Step 3 $37.34 Step 3 $38.27
Step 4 $39.30 Step 4 $40.28
Step 5 $41.37 $7,170.80 $86,049.60 Step 5 $42.40 $7,349.33 $88,192.00
286 Non-exempt Motor Equipment Mechanic I Step 1 $29.17 Step 1 $29.90
Step 2 $30.70 Step 2 $31.47
Step 3 $32.32 Step 3 $33.13
Step 4 $34.02 Step 4 $34.87
Step 5 $35.81 $6,207.07 $74,484.80 Step 5 $36.71 $6,363.07 $76,356.80
287 Non-exempt Motor Equipment Mechanic II Step 1 $31.50 Step 1 $32.28
Step 2 $33.16 Step 2 $33.98
Step 3 $34.90 Step 3 $35.77
Step 4 $36.74 Step 4 $37.66
Step 5 $38.67 $6,702.80 $80,433.60 Step 5 $39.64 $6,870.93 $82,451.20
230 Non-exempt Offset Equip Op Step 1 $22.28 Step 1 $22.84
Step 2 $23.45 Step 2 $24.04
Step 3 $24.69 Step 3 $25.31
Step 4 $25.99 Step 4 $26.64
Step 5 $27.36 $4,741.78 $56,901.31 Step 5 $28.04 $4,860.32 $58,323.84
543 Non-exempt Overhead Underground Troubleman Step 1 $40.56 Step 1 $41.57
Step 2 $42.69 Step 2 $43.76
Step 3 $44.94 Step 3 $46.06
Step 4 $47.30 Step 4 $48.49
Step 5 $49.79 $8,630.27 $103,563.20 Step 5 $51.04 $8,846.93 $106,163.20
452 Non-exempt Park Maint - Lead Step 1 $28.56 Step 1 $29.27
Step 2 $30.06 Step 2 $30.81
Step 3 $31.64 Step 3 $32.43
Step 4 $33.31 Step 4 $34.14
Step 5 $35.06 $6,077.07 $72,924.80 Step 5 $35.93 $6,227.87 $74,734.40
Effective 11/29/14
19
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
451 Non-exempt Park Maint Person Step 1 $24.63 Step 1 $25.24
Step 2 $25.92 Step 2 $26.57
Step 3 $27.29 Step 3 $27.97
Step 4 $28.72 Step 4 $29.44
Step 5 $30.24 $5,241.60 $62,899.20 Step 5 $30.99 $5,371.60 $64,459.20
281 Non-exempt Park Ranger Step 1 $27.66 Step 1 $28.35
Step 2 $29.12 Step 2 $29.85
Step 3 $30.65 Step 3 $31.42
Step 4 $32.26 Step 4 $33.07
Step 5 $33.96 $5,886.40 $70,636.80 Step 5 $34.81 $6,033.73 $72,404.80
243 Non-exempt Parking Enf Off Step 1 $23.23 Step 1 $23.81
Step 2 $24.46 Step 2 $25.07
Step 3 $25.74 Step 3 $26.39
Step 4 $27.10 Step 4 $27.78
Step 5 $28.52 $4,943.47 $59,321.60 Step 5 $29.24 $5,068.27 $60,819.20
282 Non-exempt Parking Enf Off-L Step 1 $24.85 Step 1 $25.47
Step 2 $26.16 Step 2 $26.81
Step 3 $27.53 Step 3 $28.22
Step 4 $28.98 Step 4 $29.71
Step 5 $30.51 $5,288.40 $63,460.80 Step 5 $31.27 $5,420.13 $65,041.60
460 Non-exempt Parks/Golf Crew-Lead Step 1 $26.79 Step 1 $27.46
Step 2 $28.20 Step 2 $28.91
Step 3 $29.69 Step 3 $30.43
Step 4 $31.25 Step 4 $32.03
Step 5 $32.89 $5,700.93 $68,411.20 Step 5 $33.72 $5,844.80 $70,137.60
348 Non-exempt Payroll Analyst Step 1 $28.01 Step 1 $28.71
Step 2 $29.49 Step 2 $30.23
Step 3 $31.04 Step 3 $31.82
Step 4 $32.67 Step 4 $33.49
Step 5 $34.39 $5,960.93 $71,531.20 Step 5 $35.25 $6,110.00 $73,320.00
3480 Non-exempt Payroll Analyst - S Step 1 $28.01 Step 1 $28.71
Step 2 $29.49 Step 2 $30.23
Step 3 $31.04 Step 3 $31.82
Step 4 $32.67 Step 4 $33.49
Step 5 $34.39 $5,960.93 $71,531.20 Step 5 $35.25 $6,110.00 $73,320.00
Effective 11/29/14
20
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
352 Non-exempt Planner Step 1 $36.68 Step 1 $37.60
Step 2 $38.61 Step 2 $39.58
Step 3 $40.64 Step 3 $41.66
Step 4 $42.78 Step 4 $43.85
Step 5 $45.04 $7,806.93 $93,683.20 Step 5 $46.16 $8,001.07 $96,012.80
347 Non-exempt Planning Arborist Step 1 $39.52 Step 1 $40.50
Step 2 $41.60 Step 2 $42.64
Step 3 $43.79 Step 3 $44.88
Step 4 $46.09 Step 4 $47.24
Step 5 $48.52 $8,410.13 $100,921.60 Step 5 $49.73 $8,619.87 $103,438.40
3470 Non-exempt Planning Arborist - S Step 1 $39.52 Step 1 $40.50
Step 2 $41.60 Step 2 $42.64
Step 3 $43.79 Step 3 $44.88
Step 4 $46.09 Step 4 $47.24
Step 5 $48.52 $8,410.13 $100,921.60 Step 5 $49.73 $8,619.87 $103,438.40
304 Non-exempt Plans Check Engr Step 1 $40.54 Step 1 $41.56
Step 2 $42.68 Step 2 $43.75
Step 3 $44.93 Step 3 $46.05
Step 4 $47.29 Step 4 $48.47
Step 5 $49.78 $8,628.53 $103,542.40 Step 5 $51.02 $8,843.47 $106,121.60
321 Non-exempt Police Records Specialist - Lead Step 1 $25.51 Step 1 $26.15
Step 2 $26.85 Step 2 $27.53
Step 3 $28.27 Step 3 $28.97
Step 4 $29.76 Step 4 $30.50
Step 5 $31.32 $5,428.80 $65,145.60 Step 5 $32.10 $5,564.00 $66,768.00
313 Non-exempt Police Records Specialist I Step 1 $22.65 Step 1 $23.21
Step 2 $23.84 Step 2 $24.44
Step 3 $25.09 Step 3 $25.72
Step 4 $26.41 Step 4 $27.07
Step 5 $27.80 $4,818.67 $57,824.00 Step 5 $28.50 $4,940.00 $59,280.00
314 Non-exempt Police Records Specialist II Step 1 $23.84 Step 1 $24.44
Step 2 $25.10 Step 2 $25.72
Step 3 $26.42 Step 3 $27.08
Step 4 $27.81 Step 4 $28.50
Step 5 $29.27 $5,073.47 $60,881.60 Step 5 $30.00 $5,200.00 $62,400.00
Effective 11/29/14
21
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
246 Non-exempt Power Engr Step 1 $44.58 Step 1 $45.70
Step 2 $46.93 Step 2 $48.10
Step 3 $49.40 Step 3 $50.63
Step 4 $52.00 Step 4 $53.30
Step 5 $54.74 $9,488.27 $113,859.20 Step 5 $56.10 $9,724.00 $116,688.00
270 Non-exempt Prod Arts/Sci Prog Step 1 $30.85 Step 1 $31.62
Step 2 $32.47 Step 2 $33.28
Step 3 $34.18 Step 3 $35.03
Step 4 $35.98 Step 4 $36.88
Step 5 $37.87 $6,564.13 $78,769.60 Step 5 $38.82 $6,728.80 $80,745.60
232 Non-exempt Prog-Analyst Step 1 $36.92 Step 1 $37.84
Step 2 $38.86 Step 2 $39.83
Step 3 $40.91 Step 3 $41.93
Step 4 $43.06 Step 4 $44.14
Step 5 $45.32 $7,855.47 $94,265.60 Step 5 $46.46 $8,053.07 $96,636.80
231 Non-exempt Program Analyst Step 1 $39.46 Step 1 $40.45
Step 2 $41.54 Step 2 $42.58
Step 3 $43.73 Step 3 $44.82
Step 4 $46.03 Step 4 $47.18
Step 5 $48.45 $8,398.00 $100,776.00 Step 5 $49.66 $8,607.73 $103,292.80
265 Non-exempt Program Assistant Step 1 $23.99 Step 1 $24.59
Step 2 $25.26 Step 2 $25.89
Step 3 $26.59 Step 3 $27.25
Step 4 $27.98 Step 4 $28.68
Step 5 $29.46 $5,106.40 $61,276.80 Step 5 $30.19 $5,232.93 $62,795.20
302 Non-exempt Program Assistant I Step 1 $25.46 Step 1 $26.09
Step 2 $26.80 Step 2 $27.47
Step 3 $28.21 Step 3 $28.91
Step 4 $29.69 Step 4 $30.43
Step 5 $31.25 $5,416.67 $65,000.00 Step 5 $32.03 $5,551.87 $66,622.40
303 Non-exempt Program Assistant II Step 1 $27.36 Step 1 $28.04
Step 2 $28.80 Step 2 $29.52
Step 3 $30.31 Step 3 $31.07
Step 4 $31.91 Step 4 $32.71
Step 5 $33.59 $5,822.27 $69,867.20 Step 5 $34.43 $5,967.87 $71,614.40
Effective 11/29/14
22
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
368 Non-exempt Program Coordinator Step 1 $26.64 Step 1 $27.30
Step 2 $28.04 Step 2 $28.74
Step 3 $29.51 Step 3 $30.25
Step 4 $31.07 Step 4 $31.84
Step 5 $32.70 $5,668.00 $68,016.00 Step 5 $33.52 $5,810.13 $69,721.60
349 Non-exempt Project Engineer Step 1 $44.94 Step 1 $46.06
Step 2 $47.31 Step 2 $48.49
Step 3 $49.80 Step 3 $51.04
Step 4 $52.42 Step 4 $53.73
Step 5 $55.18 $9,564.53 $114,774.40 Step 5 $56.56 $9,803.73 $117,644.80
3490 Non-exempt Project Engineer - S Step 1 $44.94 Step 1 $46.06
Step 2 $47.31 Step 2 $48.49
Step 3 $49.80 Step 3 $51.04
Step 4 $52.42 Step 4 $53.73
Step 5 $55.18 $9,564.53 $114,774.40 Step 5 $56.56 $9,803.73 $117,644.80
209 Non-exempt Property Evid Tech Step 1 $24.65 Step 1 $25.27
Step 2 $25.95 Step 2 $26.60
Step 3 $27.32 Step 3 $28.00
Step 4 $28.76 Step 4 $29.47
Step 5 $30.27 $5,246.80 $62,961.60 Step 5 $31.03 $5,378.53 $64,542.40
238 Non-exempt Pub Safety Disp-Flex Step 1 $26.49 Step 1 $27.15
Step 2 $27.88 Step 2 $28.58
Step 3 $29.35 Step 3 $30.08
Step 4 $30.89 Step 4 $31.66
Step 5 $32.52 $5,636.80 $67,641.60 Step 5 $33.33 $5,777.20 $69,326.40
315 Non-exempt Public Safety Dispatcher - Lead Step 1 $35.47 Step 1 $36.35
Step 2 $37.33 Step 2 $38.27
Step 3 $39.30 Step 3 $40.28
Step 4 $41.37 Step 4 $42.40
Step 5 $43.54 $7,546.93 $90,563.20 Step 5 $44.63 $7,735.87 $92,830.40
Step 6 $44.63 Step 6 $45.75
Step 7 $45.75 Step 7 $46.89
298 Non-exempt Public Safety Dispatcher I Step 1 $30.01 Step 1 $30.76
Step 2 $31.59 Step 2 $32.38
Effective 11/29/14
23
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
Step 3 $33.25 Step 3 $34.08
Step 4 $35.00 Step 4 $35.88
Step 5 $36.84 $6,385.60 $76,627.20 Step 5 $37.76 $6,545.07 $78,540.80
Step 6 $37.76 Step 6 $38.71
Step 7 $38.71 Step 7 $39.68
316 Non-exempt Public Safety Dispatcher II Step 1 $31.60 Step 1 $32.39
Step 2 $33.26 Step 2 $34.09
Step 3 $35.01 Step 3 $35.88
Step 4 $36.85 Step 4 $37.77
Step 5 $38.79 $6,723.60 $80,683.20 Step 5 $39.76 $6,891.73 $82,700.80
Step 6 $39.76 Step 6 $40.75
Step 7 $40.75 Step 7 $41.77
262 Non-exempt Resource Planner Step 1 $45.35 Step 1 $46.49
Step 2 $47.74 Step 2 $48.93
Step 3 $50.25 Step 3 $51.51
Step 4 $52.90 Step 4 $54.22
Step 5 $55.68 $9,651.20 $115,814.40 Step 5 $57.07 $9,892.13 $118,705.60
366 Non-exempt Restoration Lead Step 1 $31.56 Step 1 $32.35
Step 2 $33.22 Step 2 $34.05
Step 3 $34.97 Step 3 $35.84
Step 4 $36.81 Step 4 $37.73
Step 5 $38.74 $6,714.93 $80,579.20 Step 5 $39.71 $6,883.07 $82,596.80
554 Non-exempt SCADA Technologist Step 1 $44.86 Step 1 $45.98
Step 2 $47.22 Step 2 $48.40
Step 3 $49.71 Step 3 $50.95
Step 4 $52.33 Step 4 $53.63
Step 5 $55.08 $9,547.20 $114,566.40 Step 5 $56.46 $9,786.40 $117,436.80
385 Non-exempt Senior Fleet Services Coordinator Step 1 $31.97 Step 1 $32.77
Step 2 $33.65 Step 2 $34.49
Step 3 $35.42 Step 3 $36.31
Step 4 $37.29 Step 4 $38.22
Step 5 $39.25 $6,803.33 $81,640.00 Step 5 $40.23 $6,973.20 $83,678.40
461 Non-exempt Sprinkler Sys Repr Step 1 $25.05 Step 1 $25.67
Step 2 $26.37 Step 2 $27.02
Step 3 $27.75 Step 3 $28.45
Step 4 $29.21 Step 4 $29.94
Step 5 $30.75 $5,330.00 $63,960.00 Step 5 $31.52 $5,463.47 $65,561.60
Effective 11/29/14
24
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
360 Non-exempt Sr Buyer Step 1 $33.50 Step 1 $34.33
Step 2 $35.26 Step 2 $36.14
Step 3 $37.12 Step 3 $38.04
Step 4 $39.07 Step 4 $40.05
Step 5 $41.13 $7,129.20 $85,550.40 Step 5 $42.15 $7,306.00 $87,672.00
3600 Non-exempt Sr Buyer - S Step 1 $33.50 Step 1 $34.33
Step 2 $35.26 Step 2 $36.14
Step 3 $37.12 Step 3 $38.04
Step 4 $39.07 Step 4 $40.05
Step 5 $41.13 $7,129.20 $85,550.40 Step 5 $42.15 $7,306.00 $87,672.00
224 Non-exempt Sr Chemist Step 1 $37.47 Step 1 $38.41
Step 2 $39.44 Step 2 $40.43
Step 3 $41.52 Step 3 $42.56
Step 4 $43.70 Step 4 $44.80
Step 5 $46.00 $7,973.33 $95,680.00 Step 5 $47.15 $8,172.67 $98,072.00
544 Non-exempt Senior Industrial Waste Investigator Step 1 $36.06 Step 1 $36.96
Step 2 $37.96 Step 2 $38.91
Step 3 $39.96 Step 3 $40.96
Step 4 $42.06 Step 4 $43.11
Step 5 $44.28 $7,675.20 $92,102.40 Step 5 $45.38 $7,865.87 $94,390.40
512 Non-exempt Sr Instrum Elect Step 1 $35.47 Step 1 $36.36
Step 2 $37.34 Step 2 $38.27
Step 3 $39.31 Step 3 $40.29
Step 4 $41.37 Step 4 $42.41
Step 5 $43.55 $7,548.67 $90,584.00 Step 5 $44.64 $7,737.60 $92,851.20
251 Non-exempt Sr Librarian Step 1 $29.13 Step 1 $29.86
Step 2 $30.66 Step 2 $31.43
Step 3 $32.28 Step 3 $33.09
Step 4 $33.98 Step 4 $34.83
Step 5 $35.77 $6,200.13 $74,401.60 Step 5 $36.66 $6,354.40 $76,252.80
504 Non-exempt Sr Mech Step 1 $35.68 Step 1 $36.57
Step 2 $37.55 Step 2 $38.49
Step 3 $39.53 Step 3 $40.52
Step 4 $41.61 Step 4 $42.65
Step 5 $43.80 $7,592.00 $91,104.00 Step 5 $44.90 $7,782.67 $93,392.00
Effective 11/29/14
25
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
361 Non-exempt Sr Mkt Analyst Step 1 $41.61 Step 1 $42.65
Step 2 $43.80 Step 2 $44.90
Step 3 $46.11 Step 3 $47.26
Step 4 $48.54 Step 4 $49.75
Step 5 $51.09 $8,855.60 $106,267.20 Step 5 $52.37 $9,077.47 $108,929.60
3610 Non-exempt Sr Mkt Analyst - S Step 1 $41.61 Step 1 $42.65
Step 2 $43.80 Step 2 $44.90
Step 3 $46.11 Step 3 $47.26
Step 4 $48.54 Step 4 $49.75
Step 5 $51.09 $8,855.60 $106,267.20 Step 5 $52.37 $9,077.47 $108,929.60
506 Non-exempt Sr Operator Wqc Step 1 $36.08 Step 1 $36.98
Step 2 $37.98 Step 2 $38.93
Step 3 $39.98 Step 3 $40.98
Step 4 $42.08 Step 4 $43.14
Step 5 $44.30 $7,678.67 $92,144.00 Step 5 $45.41 $7,871.07 $94,452.80
318 Non-exempt Sr Planner Step 1 $42.38 Step 1 $43.44
Step 2 $44.61 Step 2 $45.72
Step 3 $46.96 Step 3 $48.13
Step 4 $49.43 Step 4 $50.66
Step 5 $52.03 $9,018.53 $108,222.40 Step 5 $53.33 $9,243.87 $110,926.40
280 Non-exempt Sr Ranger Step 1 $30.61 Step 1 $31.38
Step 2 $32.22 Step 2 $33.03
Step 3 $33.92 Step 3 $34.77
Step 4 $35.71 Step 4 $36.60
Step 5 $37.59 $6,515.60 $78,187.20 Step 5 $38.52 $6,676.80 $80,121.60
261 Non-exempt Sr Util Field Svc Rep Step 1 $34.16 Step 1 $35.01
Step 2 $35.95 Step 2 $36.85
Step 3 $37.85 Step 3 $38.79
Step 4 $39.84 Step 4 $40.83
Step 5 $41.93 $7,267.87 $87,214.40 Step 5 $42.98 $7,449.87 $89,398.40
501 Non-exempt Sr Water Sys Oper Step 1 $36.08 Step 1 $36.98
Step 2 $37.98 Step 2 $38.93
Step 3 $39.98 Step 3 $40.98
Step 4 $42.08 Step 4 $43.14
Step 5 $44.30 $7,678.67 $92,144.00 Step 5 $45.41 $7,871.07 $94,452.80
Effective 11/29/14
26
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
405 Non-exempt St Maint Asst Step 1 $22.41 Step 1 $22.97
Step 2 $23.59 Step 2 $24.18
Step 3 $24.83 Step 3 $25.45
Step 4 $26.13 Step 4 $26.79
Step 5 $27.51 $4,768.40 $57,220.80 Step 5 $28.20 $4,888.00 $58,656.00
392 Non-exempt St Sweeper Op Step 1 $26.01 Step 1 $26.66
Step 2 $27.38 Step 2 $28.06
Step 3 $28.82 Step 3 $29.54
Step 4 $30.34 Step 4 $31.10
Step 5 $31.93 $5,534.53 $66,414.40 Step 5 $32.73 $5,673.20 $68,078.40
393 Non-exempt St Sweeper Op-Lead Step 1 $27.83 Step 1 $28.52
Step 2 $29.29 Step 2 $30.03
Step 3 $30.84 Step 3 $31.61
Step 4 $32.46 Step 4 $33.27
Step 5 $34.17 $5,922.80 $71,073.60 Step 5 $35.02 $6,070.13 $72,841.60
248 Non-exempt Storekeeper Step 1 $24.45 Step 1 $25.06
Step 2 $25.74 Step 2 $26.38
Step 3 $27.09 Step 3 $27.77
Step 4 $28.52 Step 4 $29.23
Step 5 $30.02 $5,203.47 $62,441.60 Step 5 $30.77 $5,333.47 $64,001.60
288 Non-exempt Storekeeper-L Step 1 $26.17 Step 1 $26.82
Step 2 $27.55 Step 2 $28.24
Step 3 $29.00 Step 3 $29.72
Step 4 $30.52 Step 4 $31.29
Step 5 $32.13 $5,569.20 $66,830.40 Step 5 $32.93 $5,707.87 $68,494.40
545 Non-exempt Street Light, Traffic Signal and Fiber – Apprentice Step 1 $34.59 Step 1 $35.45
Step 2 $36.41 Step 2 $37.32
Step 3 $38.32 Step 3 $39.28
Step 4 $40.34 Step 4 $41.35
Step 5 $42.46 $7,359.73 $88,316.80 Step 5 $43.52 $7,543.47 $90,521.60
547 Non-exempt Street Light, Traffic Signal and Fiber – Lead Step 1 $39.11 Step 1 $40.09
Step 2 $41.17 Step 2 $42.20
Step 3 $43.34 Step 3 $44.42
Step 4 $45.62 Step 4 $46.76
Step 5 $48.02 $8,323.47 $99,881.60 Step 5 $49.22 $8,531.47 $102,377.60
Effective 11/29/14
27
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
546 Non-exempt Street Light, Traffic Signal and Fiber Technician Step 1 $36.56 Step 1 $37.47
Step 2 $38.48 Step 2 $39.44
Step 3 $40.50 Step 3 $41.52
Step 4 $42.64 Step 4 $43.70
Step 5 $44.88 $7,779.20 $93,350.40 Step 5 $46.00 $7,973.33 $95,680.00
549 Non-exempt Substation Electrician Step 1 $39.88 Step 1 $40.88
Step 2 $41.98 Step 2 $43.03
Step 3 $44.19 Step 3 $45.29
Step 4 $46.51 Step 4 $47.67
Step 5 $48.96 $8,486.40 $101,836.80 Step 5 $50.18 $8,697.87 $104,374.40
548 Non-exempt Substation Electrician - Apprentice Step 1 $37.74 Step 1 $38.69
Step 2 $39.73 Step 2 $40.72
Step 3 $41.82 Step 3 $42.87
Step 4 $44.02 Step 4 $45.12
Step 5 $46.34 $8,032.27 $96,387.20 Step 5 $47.50 $8,233.33 $98,800.00
550 Non-exempt Substation Electrician - Lead Step 1 $42.67 Step 1 $43.74
Step 2 $44.92 Step 2 $46.04
Step 3 $47.28 Step 3 $48.46
Step 4 $49.77 Step 4 $51.01
Step 5 $52.39 $9,080.93 $108,971.20 Step 5 $53.70 $9,308.00 $111,696.00
326 Non-exempt Surveying Asst Step 1 $30.35 Step 1 $31.10
Step 2 $31.94 Step 2 $32.74
Step 3 $33.62 Step 3 $34.46
Step 4 $35.39 Step 4 $36.28
Step 5 $37.26 $6,458.40 $77,500.80 Step 5 $38.19 $6,619.60 $79,435.20
325 Non-exempt Surveyor, Public Wks Step 1 $33.02 Step 1 $33.84
Step 2 $34.75 Step 2 $35.62
Step 3 $36.58 Step 3 $37.50
Step 4 $38.51 Step 4 $39.47
Step 5 $40.54 $7,026.93 $84,323.20 Step 5 $41.55 $7,202.00 $86,424.00
309 Non-exempt System Op/Sched Step 1 $37.33 Step 1 $38.27
Step 2 $39.30 Step 2 $40.28
Step 3 $41.37 Step 3 $42.40
Step 4 $43.54 Step 4 $44.63
Step 5 $45.84 $7,945.60 $95,347.20 Step 5 $46.98 $8,143.20 $97,718.40
Effective 11/29/14
28
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
362 Non-exempt Technologist Step 1 $45.69 Step 1 $46.84
Step 2 $48.10 Step 2 $49.30
Step 3 $50.63 Step 3 $51.89
Step 4 $53.29 Step 4 $54.63
Step 5 $56.10 $9,724.00 $116,688.00 Step 5 $57.50 $9,966.67 $119,600.00
3620 Non-exempt Technologist - S Step 1 $45.69 Step 1 $46.84
Step 2 $48.10 Step 2 $49.30
Step 3 $50.63 Step 3 $51.89
Step 4 $53.29 Step 4 $54.63
Step 5 $56.10 $9,724.00 $116,688.00 Step 5 $57.50 $9,966.67 $119,600.00
229 Non-exempt Theater Specialist Step 1 $33.01 Step 1 $33.83
Step 2 $34.74 Step 2 $35.61
Step 3 $36.57 Step 3 $37.49
Step 4 $38.50 Step 4 $39.46
Step 5 $40.52 $7,023.47 $84,281.60 Step 5 $41.54 $7,200.27 $86,403.20
406 Non-exempt Traf Cont Maint I Step 1 $26.23 Step 1 $26.89
Step 2 $27.62 Step 2 $28.31
Step 3 $29.07 Step 3 $29.80
Step 4 $30.60 Step 4 $31.36
Step 5 $32.21 $5,583.07 $66,996.80 Step 5 $33.01 $5,721.73 $68,660.80
412 Non-exempt Traf Cont Maint Ii Step 1 $24.29 Step 1 $24.89
Step 2 $25.56 Step 2 $26.20
Step 3 $26.91 Step 3 $27.58
Step 4 $28.33 Step 4 $29.03
Step 5 $29.82 $5,168.80 $62,025.60 Step 5 $30.56 $5,297.07 $63,564.80
407 Non-exempt Traf Cont Maint-L Step 1 $28.06 Step 1 $28.76
Step 2 $29.54 Step 2 $30.28
Step 3 $31.09 Step 3 $31.87
Step 4 $32.73 Step 4 $33.55
Step 5 $34.45 $5,971.33 $71,656.00 Step 5 $35.31 $6,120.40 $73,444.80
435 Non-exempt Tree Maint Asst Step 1 $23.61 Step 1 $24.20
Step 2 $24.85 Step 2 $25.47
Step 3 $26.16 Step 3 $26.81
Step 4 $27.54 Step 4 $28.23
Step 5 $28.99 $5,024.93 $60,299.20 Step 5 $29.71 $5,149.73 $61,796.80
Effective 11/29/14
29
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
434 Non-exempt Tree Maintenance Specialist Step 1 $27.55 Step 1 $28.24
Step 2 $29.00 Step 2 $29.72
Step 3 $30.52 Step 3 $31.29
Step 4 $32.13 Step 4 $32.93
Step 5 $33.82 $5,862.13 $70,345.60 Step 5 $34.67 $6,009.47 $72,113.60
430 Non-exempt Tree Trim/Ln Clr Step 1 $27.12 Step 1 $27.80
Step 2 $28.55 Step 2 $29.26
Step 3 $30.05 Step 3 $30.80
Step 4 $31.63 Step 4 $32.42
Step 5 $33.30 $5,772.00 $69,264.00 Step 5 $34.13 $5,915.87 $70,990.40
431 Non-exempt Tree Trim/Ln Clr-L Step 1 $29.02 Step 1 $29.74
Step 2 $30.54 Step 2 $31.31
Step 3 $32.15 Step 3 $32.95
Step 4 $33.84 Step 4 $34.69
Step 5 $35.62 $6,174.13 $74,089.60 Step 5 $36.51 $6,328.40 $75,940.80
432 Non-exempt Tree Trm/Ln Clr Asst Step 1 $25.56 Step 1 $26.20
Step 2 $26.91 Step 2 $27.58
Step 3 $28.32 Step 3 $29.03
Step 4 $29.81 Step 4 $30.56
Step 5 $31.38 $5,439.20 $65,270.40 Step 5 $32.17 $5,576.13 $66,913.60
215 Non-exempt Util Acct Rep Step 1 $31.87 Step 1 $32.67
Step 2 $33.55 Step 2 $34.39
Step 3 $35.31 Step 3 $36.20
Step 4 $37.17 Step 4 $38.10
Step 5 $39.13 $6,782.53 $81,390.40 Step 5 $40.11 $6,952.40 $83,428.80
223 Non-exempt Util Acctg Tech Step 1 $25.38 Step 1 $26.02
Step 2 $26.72 Step 2 $27.38
Step 3 $28.12 Step 3 $28.83
Step 4 $29.60 Step 4 $30.34
Step 5 $31.16 $5,401.07 $64,812.80 Step 5 $31.94 $5,536.27 $66,435.20
272 Non-exempt Util Comp Tech Step 1 $39.11 Step 1 $40.09
Step 2 $41.17 Step 2 $42.20
Step 3 $43.33 Step 3 $44.42
Step 4 $45.62 Step 4 $46.76
Step 5 $48.02 $8,323.47 $99,881.60 Step 5 $49.22 $8,531.47 $102,377.60
Effective 11/29/14
30
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
273 Non-exempt Util Comp Tech-L Step 1 $41.85 Step 1 $42.89
Step 2 $44.05 Step 2 $45.15
Step 3 $46.37 Step 3 $47.53
Step 4 $48.81 Step 4 $50.03
Step 5 $51.38 $8,905.87 $106,870.40 Step 5 $52.66 $9,127.73 $109,532.80
219 Non-exempt Util Credit/Col Spec Step 1 $30.23 Step 1 $30.99
Step 2 $31.82 Step 2 $32.62
Step 3 $33.50 Step 3 $34.34
Step 4 $35.26 Step 4 $36.14
Step 5 $37.12 $6,434.13 $77,209.60 Step 5 $38.05 $6,595.33 $79,144.00
310 Non-exempt Util Engr Estimator Step 1 $39.25 Step 1 $40.23
Step 2 $41.32 Step 2 $42.35
Step 3 $43.49 Step 3 $44.58
Step 4 $45.78 Step 4 $46.93
Step 5 $48.19 $8,352.93 $100,235.20 Step 5 $49.39 $8,560.93 $102,731.20
486 Non-exempt Util Fld Svcs Rep Step 1 $31.93 Step 1 $32.73
Step 2 $33.61 Step 2 $34.45
Step 3 $35.38 Step 3 $36.27
Step 4 $37.24 Step 4 $38.18
Step 5 $39.20 $6,794.67 $81,536.00 Step 5 $40.18 $6,964.53 $83,574.40
480 Non-exempt Util Install/Rep Step 1 $31.14 Step 1 $31.92
Step 2 $32.78 Step 2 $33.59
Step 3 $34.50 Step 3 $35.36
Step 4 $36.32 Step 4 $37.22
Step 5 $38.23 $6,626.53 $79,518.40 Step 5 $39.18 $6,791.20 $81,494.40
481 Non-exempt Util Install/Rep Ast Step 1 $26.41 Step 1 $27.07
Step 2 $27.80 Step 2 $28.49
Step 3 $29.26 Step 3 $29.99
Step 4 $30.80 Step 4 $31.57
Step 5 $32.42 $5,619.47 $67,433.60 Step 5 $33.23 $5,759.87 $69,118.40
479 Non-exempt Util Install/Rep-L Step 1 $33.98 Step 1 $34.83
Step 2 $35.77 Step 2 $36.66
Step 3 $37.65 Step 3 $38.59
Step 4 $39.63 Step 4 $40.63
Step 5 $41.72 $7,231.47 $86,777.60 Step 5 $42.76 $7,411.73 $88,940.80
Effective 11/29/14
31
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
363 Non-exempt Util Key Acct Rep Step 1 $38.59 Step 1 $39.56
Step 2 $40.62 Step 2 $41.64
Step 3 $42.76 Step 3 $43.83
Step 4 $45.01 Step 4 $46.14
Step 5 $47.38 $8,212.53 $98,550.40 Step 5 $48.56 $8,417.07 $101,004.80
271 Non-exempt Util Locator Step 1 $29.31 Step 1 $30.04
Step 2 $30.85 Step 2 $31.62
Step 3 $32.47 Step 3 $33.29
Step 4 $34.18 Step 4 $35.04
Step 5 $35.98 $6,236.53 $74,838.40 Step 5 $36.88 $6,392.53 $76,710.40
364 Non-exempt Util Mkt Analyst Step 1 $34.87 Step 1 $35.74
Step 2 $36.70 Step 2 $37.62
Step 3 $38.64 Step 3 $39.60
Step 4 $40.67 Step 4 $41.69
Step 5 $42.81 $7,420.40 $89,044.80 Step 5 $43.88 $7,605.87 $91,270.40
233 Non-exempt Util Rate Analyst Step 1 $35.34 Step 1 $36.23
Step 2 $37.20 Step 2 $38.13
Step 3 $39.16 Step 3 $40.14
Step 4 $41.22 Step 4 $42.25
Step 5 $43.39 $7,520.93 $90,251.20 Step 5 $44.48 $7,709.87 $92,518.40
307 Non-exempt Util Syst Oper Step 1 $41.38 Step 1 $42.41
Step 2 $43.56 Step 2 $44.65
Step 3 $45.85 Step 3 $47.00
Step 4 $48.26 Step 4 $49.47
Step 5 $50.80 $8,805.33 $105,664.00 Step 5 $52.07 $9,025.47 $108,305.60
284 Non-exempt Utilities Engineer Estimator Lead Step 1 $42.00 Step 1 $43.05
Step 2 $44.21 Step 2 $45.31
Step 3 $46.53 Step 3 $47.70
Step 4 $48.98 Step 4 $50.21
Step 5 $51.56 $8,937.07 $107,244.80 Step 5 $52.85 $9,160.67 $109,928.00
3630 Non-exempt Utility Key Account Rep - S Step 1 $38.59 Step 1 $39.56
Step 2 $40.62 Step 2 $41.64
Step 3 $42.76 Step 3 $43.83
Step 4 $45.01 Step 4 $46.14
Step 5 $47.38 $8,212.53 $98,550.40 Step 5 $48.56 $8,417.07 $101,004.80
Effective 11/29/14
32
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
290 Non-exempt Utl Install Repair Lead-Welding Cert Step 1 $34.78 Step 1 $35.65
Step 2 $36.61 Step 2 $37.52
Step 3 $38.53 Step 3 $39.50
Step 4 $40.56 Step 4 $41.58
Step 5 $42.70 $7,401.33 $88,816.00 Step 5 $43.76 $7,585.07 $91,020.80
289 Non-exempt Utl Install Repair-Welding Cert Step 1 $32.36 Step 1 $33.17
Step 2 $34.07 Step 2 $34.92
Step 3 $35.86 Step 3 $36.75
Step 4 $37.75 Step 4 $38.69
Step 5 $39.73 $6,886.53 $82,638.40 Step 5 $40.73 $7,059.87 $84,718.40
278 Non-exempt Veterinarian Tech Step 1 $24.14 Step 1 $24.74
Step 2 $25.41 Step 2 $26.05
Step 3 $26.75 Step 3 $27.42
Step 4 $28.16 Step 4 $28.86
Step 5 $29.64 $5,137.60 $61,651.20 Step 5 $30.38 $5,265.87 $63,190.40
274 Non-exempt Volunteer Coord Step 1 $28.01 Step 1 $28.71
Step 2 $29.49 Step 2 $30.23
Step 3 $31.04 Step 3 $31.82
Step 4 $32.67 Step 4 $33.49
Step 5 $34.39 $5,960.93 $71,531.20 Step 5 $35.25 $6,110.00 $73,320.00
482 Non-exempt Water Meter Rep Asst Step 1 $22.77 Step 1 $23.34
Step 2 $23.97 Step 2 $24.57
Step 3 $25.23 Step 3 $25.86
Step 4 $26.56 Step 4 $27.22
Step 5 $27.95 $4,844.67 $58,136.00 Step 5 $28.65 $4,966.00 $59,592.00
484 Non-exempt Water Meter Repair Step 1 $25.22 Step 1 $25.85
Step 2 $26.54 Step 2 $27.21
Step 3 $27.94 Step 3 $28.64
Step 4 $29.41 Step 4 $30.15
Step 5 $30.96 $5,366.40 $64,396.80 Step 5 $31.73 $5,499.87 $65,998.40
499 Non-exempt Water Sys Oper I Step 1 $27.85 Step 1 $28.55
Step 2 $29.32 Step 2 $30.05
Step 3 $30.86 Step 3 $31.64
Step 4 $32.49 Step 4 $33.30
Step 5 $34.20 $5,928.00 $71,136.00 Step 5 $35.05 $6,075.33 $72,904.00
Effective 11/29/14
33
Steps Rate Approx.
Monthly
Approx.
Annual Steps Rate Approx.
Monthly
Approx.
Annual
Appendix A-2
MOA Between City of Palo Alto and SEIU
2014-2015 Salary Schedule
Salary Effective
2014-PP8
Salary Effective
2014-PP26Job
Code FLSA Job Title
507 Non-exempt Water Sys Oper II Step 1 $31.82 Step 1 $32.62
Step 2 $33.50 Step 2 $34.33
Step 3 $35.26 Step 3 $36.14
Step 4 $37.11 Step 4 $38.04
Step 5 $39.07 $6,772.13 $81,265.60 Step 5 $40.04 $6,940.27 $83,283.20
500 Non-exempt WQC Plt Oper I Step 1 $27.85 Step 1 $28.55
Step 2 $29.32 Step 2 $30.05
Step 3 $30.86 Step 3 $31.64
Step 4 $32.49 Step 4 $33.30
Step 5 $34.20 $5,928.00 $71,136.00 Step 5 $35.05 $6,075.33 $72,904.00
509 Non-exempt WQC Plt Oper II Step 1 $31.82 Step 1 $32.62
Step 2 $33.50 Step 2 $34.33
Step 3 $35.26 Step 3 $36.14
Step 4 $37.11 Step 4 $38.04
Step 5 $39.07 $6,772.13 $81,265.60 Step 5 $40.04 $6,940.27 $83,283.20
510 Non-exempt WQC Plt Oper Trn Step 1 $24.52 Step 1 $25.13
Step 2 $25.81 Step 2 $26.45
Step 3 $27.17 Step 3 $27.84
Step 4 $28.60 Step 4 $29.31
Step 5 $30.10 $5,217.33 $62,608.00 Step 5 $30.85 $5,347.33 $64,168.00
226 Non-exempt Wtr Mtr Crs Cn Tec Step 1 $25.87 Step 1 $26.51
Step 2 $27.23 Step 2 $27.91
Step 3 $28.66 Step 3 $29.38
Step 4 $30.17 Step 4 $30.92
Step 5 $31.76 $5,505.07 $66,060.80 Step 5 $32.55 $5,642.00 $67,704.00
Job
Code FLSA
Shift/
Non-Shift Job Title
Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual
601 Non-exempt SH FIRE APPARATUS OP Step 1 27.58$ Step 1 30.48$ Step 1 31.25$
Step 2 29.03$ Step 2 32.08$ Step 2 32.89$
Step 3 30.56$ Step 3 33.77$ Step 3 34.62$
Step 4 32.17$ Step 4 35.55$ Step 4 36.44$
Step 5 33.86$ 8,216.69$ 98,600.32$ Step 5 37.42$ 9,080.59$ 108,967.04$ Step 5 38.36$ 9,308.69$ 111,704.32$
602 Non-exempt SH FIRE CAPTAIN Step 1 32.73$ Step 1 36.17$ Step 1 37.07$
Step 2 34.45$ Step 2 38.07$ Step 2 39.02$
Step 3 36.26$ Step 3 40.07$ Step 3 41.07$
Step 4 38.17$ Step 4 42.18$ Step 4 43.23$
Step 5 40.18$ 9,750.35$ 117,004.16$ Step 5 44.40$ 10,774.40$ 129,292.80$ Step 5 45.51$ 11,043.76$ 132,525.12$
603 Non-exempt SH FIRE INSPECTOR Step 1 34.36$ Step 1 37.97$ Step 1 38.91$
Step 2 36.17$ Step 2 39.97$ Step 2 40.96$
Step 3 38.07$ Step 3 42.07$ Step 3 43.12$
Step 4 40.07$ Step 4 44.28$ Step 4 45.39$
Step 5 42.18$ 10,235.68$ 122,828.16$ Step 5 46.61$ 11,310.69$ 135,728.32$ Step 5 47.78$ 11,594.61$ 139,135.36$
604 Non-exempt SH FIRE FIGHTER Step 1 25.80$ Step 1 28.51$ Step 1 29.23$
Step 2 27.16$ Step 2 30.01$ Step 2 30.77$
Step 3 28.59$ Step 3 31.59$ Step 3 32.39$
Step 4 30.09$ Step 4 33.25$ Step 4 34.09$
Step 5 31.67$ 7,685.25$ 92,223.04$ Step 5 35.00$ 8,493.33$ 101,920.00$ Step 5 35.88$ 8,706.88$ 104,482.56$
606 Non-exempt SH OPER PARAMEDIC-12.5 Step 1 31.03$ Step 1 34.29$ Step 1 35.14$
Step 2 32.66$ Step 2 36.09$ Step 2 36.99$
Step 3 34.38$ Step 3 37.99$ Step 3 38.94$
Step 4 36.19$ Step 4 39.99$ Step 4 40.99$
Step 5 38.09$ 9,243.17$ 110,918.08$ Step 5 42.09$ 10,213.84$ 122,566.08$ Step 5 43.15$ 10,471.07$ 125,652.80$
608 Non-exempt SH CAPTAIN PARAMEDIC-12.5 Step 1 36.81$ Step 1 40.69$ Step 1 41.71$
Step 2 38.75$ Step 2 42.83$ Step 2 43.90$
Step 3 40.79$ Step 3 45.08$ Step 3 46.21$
Salary Effective
the pay period following adoption
(7.5% Increase)
Salary Effective PP including 7/1/2016
2016-14
(10.5% Increase)
Salary Effective PP including 06/26/2017
2017-14
(2.5% Increase)
IAFF Salary Schedule
EXHIBIT "4"
Job
Code FLSA
Shift/
Non-Shift Job Title
Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual
Salary Effective
the pay period following adoption
(7.5% Increase)
Salary Effective PP including 7/1/2016
2016-14
(10.5% Increase)
Salary Effective PP including 06/26/2017
2017-14
(2.5% Increase)
Step 4 42.94$ Step 4 47.45$ Step 4 48.64$
Step 5 45.20$ 10,968.53$ 131,622.40$ Step 5 49.95$ 12,121.20$ 145,454.40$ Step 5 51.20$ 12,424.53$ 149,094.40$
610 Non-exempt SH INSPCTR PARAMDC-12.5 Step 1 37.14$ Step 1 41.05$ Step 1 42.08$
Step 2 39.09$ Step 2 43.21$ Step 2 44.29$
Step 3 41.15$ Step 3 45.48$ Step 3 46.62$
Step 4 43.32$ Step 4 47.87$ Step 4 49.07$
Step 5 45.60$ 11,065.60$ 132,787.20$ Step 5 50.39$ 12,227.97$ 146,735.68$ Step 5 51.65$ 12,533.73$ 150,404.80$
676 Non-exempt SH F FIGHTR PARAMEDC-12.5 Step 1 29.02$ Step 1 32.07$ Step 1 32.88$
Step 2 30.55$ Step 2 33.76$ Step 2 34.61$
Step 3 32.16$ Step 3 35.54$ Step 3 36.43$
Step 4 33.85$ Step 4 37.41$ Step 4 38.35$
Step 5 35.63$ 8,646.21$ 103,754.56$ Step 5 39.38$ 9,556.21$ 114,674.56$ Step 5 40.37$ 9,796.45$ 117,557.44$
677 Non-exempt SH HAZ MAT SPEC Step 1 35.37$ Step 1 39.08$ Step 1 40.05$
Step 2 37.23$ Step 2 41.14$ Step 2 42.16$
Step 3 39.19$ Step 3 43.30$ Step 3 44.38$
Step 4 41.25$ Step 4 45.58$ Step 4 46.72$
Step 5 43.42$ 10,536.59$ 126,439.04$ Step 5 47.98$ 11,643.15$ 139,717.76$ Step 5 49.18$ 11,934.35$ 143,212.16$
678 Non-exempt SH HAZ MAT INSPECTOR Step 1 34.36$ Step 1 37.97$ Step 1 38.91$
Step 2 36.17$ Step 2 39.97$ Step 2 40.96$
Step 3 38.07$ Step 3 42.07$ Step 3 43.12$
Step 4 40.07$ Step 4 44.28$ Step 4 45.39$
Step 5 42.18$ 10,235.68$ 122,828.16$ Step 5 46.61$ 11,310.69$ 135,728.32$ Step 5 47.78$ 11,594.61$ 139,135.36$
680 Non-exempt SH FIRE FIGHTER HAZ MAT Step 1 27.08$ Step 1 29.93$ Step 1 30.69$
Step 2 28.51$ Step 2 31.50$ Step 2 32.30$
Step 3 30.01$ Step 3 33.16$ Step 3 34.00$
Step 4 31.59$ Step 4 34.91$ Step 4 35.79$
Step 5 33.25$ 8,068.67$ 96,824.00$ Step 5 36.75$ 8,918.00$ 107,016.00$ Step 5 37.67$ 9,141.25$ 109,695.04$
681 Non-exempt SH FIRE APPR OP HAZ MAT Step 1 28.95$ Step 1 32.00$ Step 1 32.80$
Step 2 30.47$ Step 2 33.68$ Step 2 34.53$
Job
Code FLSA
Shift/
Non-Shift Job Title
Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual
Salary Effective
the pay period following adoption
(7.5% Increase)
Salary Effective PP including 7/1/2016
2016-14
(10.5% Increase)
Salary Effective PP including 06/26/2017
2017-14
(2.5% Increase)
Step 3 32.07$ Step 3 35.45$ Step 3 36.35$
Step 4 33.76$ Step 4 37.32$ Step 4 38.26$
Step 5 35.54$ 8,624.37$ 103,492.48$ Step 5 39.28$ 9,531.95$ 114,383.36$ Step 5 40.27$ 9,772.19$ 117,266.24$
682 Non-exempt SH FIRE CAPTAIN HAZ MAT Step 1 34.37$ Step 1 37.98$ Step 1 38.92$
Step 2 36.18$ Step 2 39.98$ Step 2 40.97$
Step 3 38.08$ Step 3 42.08$ Step 3 43.13$
Step 4 40.08$ Step 4 44.29$ Step 4 45.40$
Step 5 42.19$ 10,238.11$ 122,857.28$ Step 5 46.62$ 11,313.12$ 135,757.44$ Step 5 47.79$ 11,597.04$ 139,164.48$
683 Non-exempt SH FIRE FIGHTER EMT Step 1 26.57$ Step 1 29.36$ Step 1 30.10$
Step 2 27.97$ Step 2 30.91$ Step 2 31.68$
Step 3 29.44$ Step 3 32.54$ Step 3 33.35$
Step 4 30.99$ Step 4 34.25$ Step 4 35.11$
Step 5 32.62$ 7,915.79$ 94,989.44$ Step 5 36.05$ 8,748.13$ 104,977.60$ Step 5 36.96$ 8,968.96$ 107,627.52$
684 Non-exempt SH FIRE FGHTR HZ MT EMT Step 1 27.87$ Step 1 30.79$ Step 1 31.57$
Step 2 29.34$ Step 2 32.41$ Step 2 33.23$
Step 3 30.88$ Step 3 34.12$ Step 3 34.98$
Step 4 32.50$ Step 4 35.92$ Step 4 36.82$
Step 5 34.21$ 8,301.63$ 99,619.52$ Step 5 37.81$ 9,175.23$ 110,102.72$ Step 5 38.76$ 9,405.76$ 112,869.12$
685 Non-exempt SH FIRE APPARATUS OP EMT Step 1 28.41$ Step 1 31.40$ Step 1 32.19$
Step 2 29.91$ Step 2 33.05$ Step 2 33.88$
Step 3 31.48$ Step 3 34.79$ Step 3 35.66$
Step 4 33.14$ Step 4 36.62$ Step 4 37.54$
Step 5 34.88$ 8,464.21$ 101,570.56$ Step 5 38.55$ 9,354.80$ 112,257.60$ Step 5 39.52$ 9,590.19$ 115,082.24$
686 Non-exempt SH FIRE AP OP HZ MT EMT Step 1 29.78$ Step 1 32.92$ Step 1 33.74$
Step 2 31.35$ Step 2 34.65$ Step 2 35.52$
Step 3 33.00$ Step 3 36.47$ Step 3 37.39$
Step 4 34.74$ Step 4 38.39$ Step 4 39.36$
Step 5 36.57$ 8,874.32$ 106,491.84$ Step 5 40.41$ 9,806.16$ 117,673.92$ Step 5 41.43$ 10,053.68$ 120,644.16$
687 Non-exempt SH FIRE CAPTAIN EMT Step 1 33.70$ Step 1 37.25$ Step 1 38.18$
Job
Code FLSA
Shift/
Non-Shift Job Title
Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual
Salary Effective
the pay period following adoption
(7.5% Increase)
Salary Effective PP including 7/1/2016
2016-14
(10.5% Increase)
Salary Effective PP including 06/26/2017
2017-14
(2.5% Increase)
Step 2 35.47$ Step 2 39.21$ Step 2 40.19$
Step 3 37.34$ Step 3 41.27$ Step 3 42.31$
Step 4 39.31$ Step 4 43.44$ Step 4 44.54$
Step 5 41.38$ 10,041.55$ 120,498.56$ Step 5 45.73$ 11,097.15$ 133,165.76$ Step 5 46.88$ 11,376.21$ 136,514.56$
688 Non-exempt SH FIRE CAP HAZ MAT EMT Step 1 35.35$ Step 1 39.06$ Step 1 40.04$
Step 2 37.21$ Step 2 41.12$ Step 2 42.15$
Step 3 39.17$ Step 3 43.28$ Step 3 44.37$
Step 4 41.23$ Step 4 45.56$ Step 4 46.70$
Step 5 43.40$ 10,531.73$ 126,380.80$ Step 5 47.96$ 11,638.29$ 139,659.52$ Step 5 49.16$ 11,929.49$ 143,153.92$
689 Non-exempt SH FIRE INSPECTOR EMT Step 1 35.41$ Step 1 39.12$ Step 1 40.11$
Step 2 37.27$ Step 2 41.18$ Step 2 42.22$
Step 3 39.23$ Step 3 43.35$ Step 3 44.44$
Step 4 41.29$ Step 4 45.63$ Step 4 46.78$
Step 5 43.46$ 10,546.29$ 126,555.52$ Step 5 48.03$ 11,655.28$ 139,863.36$ Step 5 49.24$ 11,948.91$ 143,386.88$
691 Non-exempt SH F FGH PRDMD-12.5 EMT Step 1 29.79$ Step 1 32.94$ Step 1 33.76$
Step 2 31.36$ Step 2 34.67$ Step 2 35.54$
Step 3 33.01$ Step 3 36.49$ Step 3 37.41$
Step 4 34.75$ Step 4 38.41$ Step 4 39.38$
Step 5 36.58$ 8,876.75$ 106,520.96$ Step 5 40.43$ 9,811.01$ 117,732.16$ Step 5 41.45$ 10,058.53$ 120,702.40$
693 Non-exempt SH OPR PRMDC-12.5 EMT Step 1 31.85$ Step 1 35.21$ Step 1 36.09$
Step 2 33.53$ Step 2 37.06$ Step 2 37.99$
Step 3 35.29$ Step 3 39.01$ Step 3 39.99$
Step 4 37.15$ Step 4 41.06$ Step 4 42.09$
Step 5 39.11$ 9,490.69$ 113,888.32$ Step 5 43.22$ 10,488.05$ 125,856.64$ Step 5 44.31$ 10,752.56$ 129,030.72$
695 Non-exempt SH CAPT PRMDC-12.5 EMT Step 1 37.80$ Step 1 41.77$ Step 1 42.82$
Step 2 39.79$ Step 2 43.97$ Step 2 45.07$
Step 3 41.88$ Step 3 46.28$ Step 3 47.44$
Step 4 44.08$ Step 4 48.72$ Step 4 49.94$
Step 5 46.40$ 11,259.73$ 135,116.80$ Step 5 51.28$ 12,443.95$ 149,327.36$ Step 5 52.57$ 12,756.99$ 153,083.84$
Job
Code FLSA
Shift/
Non-Shift Job Title
Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual
Salary Effective
the pay period following adoption
(7.5% Increase)
Salary Effective PP including 7/1/2016
2016-14
(10.5% Increase)
Salary Effective PP including 06/26/2017
2017-14
(2.5% Increase)
696 Non-exempt SH HAZ MAT SPEC EMT Step 1 36.42$ Step 1 40.25$ Step 1 41.26$
Step 2 38.34$ Step 2 42.37$ Step 2 43.43$
Step 3 40.36$ Step 3 44.60$ Step 3 45.72$
Step 4 42.48$ Step 4 46.95$ Step 4 48.13$
Step 5 44.72$ 10,852.05$ 130,224.64$ Step 5 49.42$ 11,992.59$ 143,911.04$ Step 5 50.66$ 12,293.49$ 147,521.92$
TBD Non-exempt SH FIRE FGHTR EMT HAZ MT PARA Step 1 31.08$ Step 1 34.35$ Step 1 35.22$
Step 2 32.72$ Step 2 36.16$ Step 2 37.07$
Step 3 34.44$ Step 3 38.06$ Step 3 39.02$
Step 4 36.25$ Step 4 40.06$ Step 4 41.07$
Step 5 38.16$ 9,260.16$ 111,121.92$ Step 5 42.17$ 10,233.25$ 122,799.04$ Step 5 43.23$ 10,490.48$ 125,885.76$
TBD Non-exempt SH FIRE AP OP EMT HAZ MT PARA Step 1 33.23$ Step 1 36.74$ Step 1 37.64$
Step 2 34.98$ Step 2 38.67$ Step 2 39.62$
Step 3 36.82$ Step 3 40.70$ Step 3 41.71$
Step 4 38.76$ Step 4 42.84$ Step 4 43.91$
Step 5 40.80$ 9,900.80$ 118,809.60$ Step 5 45.09$ 10,941.84$ 131,302.08$ Step 5 46.22$ 11,216.05$ 134,592.64$
634 Non-exempt NS FIRE APPARATUS OP Step 1 38.61$ Step 1 42.66$ Step 1 43.74$
Step 2 40.64$ Step 2 44.91$ Step 2 46.04$
Step 3 42.78$ Step 3 47.27$ Step 3 48.46$
Step 4 45.03$ Step 4 49.76$ Step 4 51.01$
Step 5 47.40$ 8,216.00$ 98,592.00$ Step 5 52.38$ 9,079.20$ 108,950.40$ Step 5 53.69$ 9,306.27$ 111,675.20$
635 Non-exempt NS FIRE CAPTAIN Step 1 45.82$ Step 1 50.64$ Step 1 51.90$
Step 2 48.23$ Step 2 53.30$ Step 2 54.63$
Step 3 50.77$ Step 3 56.10$ Step 3 57.50$
Step 4 53.44$ Step 4 59.05$ Step 4 60.53$
Step 5 56.25$ 9,750.00$ 117,000.00$ Step 5 62.16$ 10,774.40$ 129,292.80$ Step 5 63.72$ 11,044.80$ 132,537.60$
636 Non-exempt NS FIRE INSPECTOR Step 1 48.11$ Step 1 53.16$ Step 1 54.49$
Step 2 50.64$ Step 2 55.96$ Step 2 57.36$
Step 3 53.30$ Step 3 58.90$ Step 3 60.38$
Step 4 56.10$ Step 4 62.00$ Step 4 63.56$
Job
Code FLSA
Shift/
Non-Shift Job Title
Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual
Salary Effective
the pay period following adoption
(7.5% Increase)
Salary Effective PP including 7/1/2016
2016-14
(10.5% Increase)
Salary Effective PP including 06/26/2017
2017-14
(2.5% Increase)
Step 5 59.05$ 10,235.33$ 122,824.00$ Step 5 65.26$ 11,311.73$ 135,740.80$ Step 5 66.90$ 11,596.00$ 139,152.00$
637 Non-exempt NS FIRE FIGHTER Step 1 36.11$ Step 1 39.91$ Step 1 40.91$
Step 2 38.01$ Step 2 42.01$ Step 2 43.06$
Step 3 40.01$ Step 3 44.22$ Step 3 45.33$
Step 4 42.12$ Step 4 46.55$ Step 4 47.72$
Step 5 44.34$ 7,685.60$ 92,227.20$ Step 5 49.00$ 8,493.33$ 101,920.00$ Step 5 50.23$ 8,706.53$ 104,478.40$
638 Non-exempt NS OPER PARAMEDIC-12.5 Step 1 43.42$ Step 1 47.98$ Step 1 49.19$
Step 2 45.71$ Step 2 50.51$ Step 2 51.78$
Step 3 48.12$ Step 3 53.17$ Step 3 54.51$
Step 4 50.65$ Step 4 55.97$ Step 4 57.38$
Step 5 53.32$ 9,242.13$ 110,905.60$ Step 5 58.92$ 10,212.80$ 122,553.60$ Step 5 60.40$ 10,469.33$ 125,632.00$
639 Non-exempt NS CAPTAIN PARAMEDIC-12.5 Step 1 51.54$ Step 1 56.95$ Step 1 58.40$
Step 2 54.25$ Step 2 59.95$ Step 2 61.47$
Step 3 57.11$ Step 3 63.11$ Step 3 64.70$
Step 4 60.12$ Step 4 66.43$ Step 4 68.10$
Step 5 63.28$ 10,968.53$ 131,622.40$ Step 5 69.93$ 12,121.20$ 145,454.40$ Step 5 71.68$ 12,424.53$ 149,094.40$
641 Non-exempt NS INSPCTR PARAMDC-12.5 Step 1 51.98$ Step 1 57.45$ Step 1 58.90$
Step 2 54.72$ Step 2 60.47$ Step 2 62.00$
Step 3 57.60$ Step 3 63.65$ Step 3 65.26$
Step 4 60.63$ Step 4 67.00$ Step 4 68.69$
Step 5 63.82$ 11,062.13$ 132,745.60$ Step 5 70.53$ 12,225.20$ 146,702.40$ Step 5 72.30$ 12,532.00$ 150,384.00$
642 Non-exempt NS 40-HR TRAINING CAPTAIN Step 1 48.11$ Step 1 53.16$ Step 1 54.49$
Step 2 50.64$ Step 2 55.96$ Step 2 57.36$
Step 3 53.30$ Step 3 58.90$ Step 3 60.38$
Step 4 56.10$ Step 4 62.00$ Step 4 63.56$
Step 5 59.05$ 10,235.33$ 122,824.00$ Step 5 65.26$ 11,311.73$ 135,740.80$ Step 5 66.90$ 11,596.00$ 139,152.00$
643 Non-exempt NS 40-HR TRAINING CAPTAIN EMT Step 1 49.55$ Step 1 54.76$ Step 1 56.13$
Step 2 52.16$ Step 2 57.64$ Step 2 59.08$
Step 3 54.90$ Step 3 60.67$ Step 3 62.19$
Job
Code FLSA
Shift/
Non-Shift Job Title
Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual
Salary Effective
the pay period following adoption
(7.5% Increase)
Salary Effective PP including 7/1/2016
2016-14
(10.5% Increase)
Salary Effective PP including 06/26/2017
2017-14
(2.5% Increase)
Step 4 57.79$ Step 4 63.86$ Step 4 65.46$
Step 5 60.83$ 10,543.87$ 126,526.40$ Step 5 67.22$ 11,651.47$ 139,817.60$ Step 5 68.91$ 11,944.40$ 143,332.80$
644 Non-exempt NS F FIGHTR PARAMEDC-12.5 Step 1 40.62$ Step 1 44.88$ Step 1 46.02$
Step 2 42.76$ Step 2 47.24$ Step 2 48.44$
Step 3 45.01$ Step 3 49.73$ Step 3 50.99$
Step 4 47.38$ Step 4 52.35$ Step 4 53.67$
Step 5 49.87$ 8,644.13$ 103,729.60$ Step 5 55.11$ 9,552.40$ 114,628.80$ Step 5 56.49$ 9,791.60$ 117,499.20$
645 Non-exempt NS HAZ MAT SPEC Step 1 49.51$ Step 1 54.72$ Step 1 56.09$
Step 2 52.12$ Step 2 57.60$ Step 2 59.04$
Step 3 54.86$ Step 3 60.63$ Step 3 62.15$
Step 4 57.75$ Step 4 63.82$ Step 4 65.42$
Step 5 60.79$ 10,536.93$ 126,443.20$ Step 5 67.18$ 11,644.53$ 139,734.40$ Step 5 68.86$ 11,935.73$ 143,228.80$
646 Non-exempt NS HAZ MAT INSPECTOR Step 1 48.11$ Step 1 53.16$ Step 1 54.49$
Step 2 50.64$ Step 2 55.96$ Step 2 57.36$
Step 3 53.30$ Step 3 58.90$ Step 3 60.38$
Step 4 56.10$ Step 4 62.00$ Step 4 63.56$
Step 5 59.05$ 10,235.33$ 122,824.00$ Step 5 65.26$ 11,311.73$ 135,740.80$ Step 5 66.90$ 11,596.00$ 139,152.00$
647 Non-exempt NS FIRE FIGHTER HAZ MAT Step 1 37.91$ Step 1 41.90$ Step 1 42.95$
Step 2 39.91$ Step 2 44.11$ Step 2 45.21$
Step 3 42.01$ Step 3 46.43$ Step 3 47.59$
Step 4 44.22$ Step 4 48.87$ Step 4 50.09$
Step 5 46.55$ 8,068.67$ 96,824.00$ Step 5 51.44$ 8,916.27$ 106,995.20$ Step 5 52.73$ 9,139.87$ 109,678.40$
650 Non-exempt NS FIRE APPR OP HAZ MAT Step 1 40.54$ Step 1 44.80$ Step 1 45.92$
Step 2 42.67$ Step 2 47.16$ Step 2 48.34$
Step 3 44.92$ Step 3 49.64$ Step 3 50.88$
Step 4 47.28$ Step 4 52.25$ Step 4 53.56$
Step 5 49.77$ 8,626.80$ 103,521.60$ Step 5 55.00$ 9,533.33$ 114,400.00$ Step 5 56.38$ 9,772.53$ 117,270.40$
648 Non-exempt NS FIRE CAPTAIN HAZ MAT Step 1 48.11$ Step 1 53.16$ Step 1 54.49$
Step 2 50.64$ Step 2 55.96$ Step 2 57.36$
Job
Code FLSA
Shift/
Non-Shift Job Title
Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual
Salary Effective
the pay period following adoption
(7.5% Increase)
Salary Effective PP including 7/1/2016
2016-14
(10.5% Increase)
Salary Effective PP including 06/26/2017
2017-14
(2.5% Increase)
Step 3 53.30$ Step 3 58.90$ Step 3 60.38$
Step 4 56.10$ Step 4 62.00$ Step 4 63.56$
Step 5 59.05$ 10,235.33$ 122,824.00$ Step 5 65.26$ 11,311.73$ 135,740.80$ Step 5 66.90$ 11,596.00$ 139,152.00$
649 Non-exempt NS FIRE FIGHTER EMT Step 1 37.20$ Step 1 41.11$ Step 1 42.14$
Step 2 39.16$ Step 2 43.27$ Step 2 44.36$
Step 3 41.22$ Step 3 45.55$ Step 3 46.69$
Step 4 43.39$ Step 4 47.95$ Step 4 49.15$
Step 5 45.67$ 7,916.13$ 94,993.60$ Step 5 50.47$ 8,748.13$ 104,977.60$ Step 5 51.74$ 8,968.27$ 107,619.20$
651 Non-exempt NS FIRE FGHTR HZ MT EMT Step 1 39.02$ Step 1 43.10$ Step 1 44.18$
Step 2 41.07$ Step 2 45.37$ Step 2 46.51$
Step 3 43.23$ Step 3 47.76$ Step 3 48.96$
Step 4 45.50$ Step 4 50.27$ Step 4 51.54$
Step 5 47.89$ 8,300.93$ 99,611.20$ Step 5 52.92$ 9,172.80$ 110,073.60$ Step 5 54.25$ 9,403.33$ 112,840.00$
652 Non-exempt NS FIRE APPARATUS OP EMT Step 1 39.78$ Step 1 43.96$ Step 1 45.04$
Step 2 41.87$ Step 2 46.27$ Step 2 47.41$
Step 3 44.07$ Step 3 48.70$ Step 3 49.91$
Step 4 46.39$ Step 4 51.26$ Step 4 52.54$
Step 5 48.83$ 8,463.87$ 101,566.40$ Step 5 53.96$ 9,353.07$ 112,236.80$ Step 5 55.31$ 9,587.07$ 115,044.80$
653 Non-exempt NS FIRE AP OP HZ MT EMT Step 1 41.71$ Step 1 46.08$ Step 1 47.24$
Step 2 43.90$ Step 2 48.51$ Step 2 49.73$
Step 3 46.21$ Step 3 51.06$ Step 3 52.35$
Step 4 48.64$ Step 4 53.75$ Step 4 55.10$
Step 5 51.20$ 8,874.67$ 106,496.00$ Step 5 56.58$ 9,807.20$ 117,686.40$ Step 5 58.00$ 10,053.33$ 120,640.00$
655 Non-exempt NS FIRE CAPTAIN EMT Step 1 47.20$ Step 1 52.16$ Step 1 53.47$
Step 2 49.68$ Step 2 54.90$ Step 2 56.28$
Step 3 52.29$ Step 3 57.79$ Step 3 59.24$
Step 4 55.04$ Step 4 60.83$ Step 4 62.36$
Step 5 57.94$ 10,042.93$ 120,515.20$ Step 5 64.03$ 11,098.53$ 133,182.40$ Step 5 65.64$ 11,377.60$ 136,531.20$
654 Non-exempt NS FIRE CAP HAZ MAT EMT Step 1 49.48$ Step 1 54.66$ Step 1 56.04$
Job
Code FLSA
Shift/
Non-Shift Job Title
Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual
Salary Effective
the pay period following adoption
(7.5% Increase)
Salary Effective PP including 7/1/2016
2016-14
(10.5% Increase)
Salary Effective PP including 06/26/2017
2017-14
(2.5% Increase)
Step 2 52.08$ Step 2 57.54$ Step 2 58.99$
Step 3 54.82$ Step 3 60.57$ Step 3 62.09$
Step 4 57.70$ Step 4 63.76$ Step 4 65.36$
Step 5 60.74$ 10,528.27$ 126,339.20$ Step 5 67.12$ 11,634.13$ 139,609.60$ Step 5 68.80$ 11,925.33$ 143,104.00$
656 Non-exempt NS FIRE INSPECTOR EMT Step 1 49.55$ Step 1 54.76$ Step 1 56.13$
Step 2 52.16$ Step 2 57.64$ Step 2 59.08$
Step 3 54.90$ Step 3 60.67$ Step 3 62.19$
Step 4 57.79$ Step 4 63.86$ Step 4 65.46$
Step 5 60.83$ 10,543.87$ 126,526.40$ Step 5 67.22$ 11,651.47$ 139,817.60$ Step 5 68.91$ 11,944.40$ 143,332.80$
657 Non-exempt NS F FGH PRDMD-12.5 EMT Step 1 41.71$ Step 1 46.09$ Step 1 47.24$
Step 2 43.91$ Step 2 48.52$ Step 2 49.73$
Step 3 46.22$ Step 3 51.07$ Step 3 52.35$
Step 4 48.65$ Step 4 53.76$ Step 4 55.11$
Step 5 51.21$ 8,876.40$ 106,516.80$ Step 5 56.59$ 9,808.93$ 117,707.20$ Step 5 58.01$ 10,055.07$ 120,660.80$
658 Non-exempt NS OPR PRMDC-12.5 EMT Step 1 44.58$ Step 1 49.28$ Step 1 50.50$
Step 2 46.93$ Step 2 51.87$ Step 2 53.16$
Step 3 49.40$ Step 3 54.60$ Step 3 55.96$
Step 4 52.00$ Step 4 57.47$ Step 4 58.91$
Step 5 54.74$ 9,488.27$ 113,859.20$ Step 5 60.49$ 10,484.93$ 125,819.20$ Step 5 62.01$ 10,748.40$ 128,980.80$
697 Non-exempt NS CAPT PRMDC-12.5 EMT Step 1 52.92$ Step 1 58.48$ Step 1 59.95$
Step 2 55.70$ Step 2 61.56$ Step 2 63.10$
Step 3 58.63$ Step 3 64.80$ Step 3 66.42$
Step 4 61.72$ Step 4 68.21$ Step 4 69.92$
Step 5 64.97$ 11,261.47$ 135,137.60$ Step 5 71.80$ 12,445.33$ 149,344.00$ Step 5 73.60$ 12,757.33$ 153,088.00$
660 Non-exempt NS HAZ MAT INSPECTOR EMT Step 1 49.55$ Step 1 54.76$ Step 1 56.13$
Step 2 52.16$ Step 2 57.64$ Step 2 59.08$
Step 3 54.90$ Step 3 60.67$ Step 3 62.19$
Step 4 57.79$ Step 4 63.86$ Step 4 65.46$
Step 5 60.83$ 10,543.87$ 126,526.40$ Step 5 67.22$ 11,651.47$ 139,817.60$ Step 5 68.91$ 11,944.40$ 143,332.80$
Job
Code FLSA
Shift/
Non-Shift Job Title
Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual
Salary Effective
the pay period following adoption
(7.5% Increase)
Salary Effective PP including 7/1/2016
2016-14
(10.5% Increase)
Salary Effective PP including 06/26/2017
2017-14
(2.5% Increase)
659 Non-exempt NS HAZ MAT SPEC EMT Step 1 51.00$ Step 1 56.35$ Step 1 57.76$
Step 2 53.68$ Step 2 59.32$ Step 2 60.80$
Step 3 56.51$ Step 3 62.44$ Step 3 64.00$
Step 4 59.48$ Step 4 65.73$ Step 4 67.37$
Step 5 62.61$ 10,852.40$ 130,228.80$ Step 5 69.19$ 11,992.93$ 143,915.20$ Step 5 70.92$ 12,292.80$ 147,513.60$
TBD Non-exempt NS FIRE FGHTR EMT HAZ MT PARA Step 1 43.49$ Step 1 48.07$ Step 1 49.28$
Step 2 45.78$ Step 2 50.60$ Step 2 51.87$
Step 3 48.19$ Step 3 53.26$ Step 3 54.60$
Step 4 50.73$ Step 4 56.06$ Step 4 57.47$
Step 5 53.40$ 9,256.00$ 111,072.00$ Step 5 59.01$ 10,228.40$ 122,740.80$ Step 5 60.49$ 10,484.93$ 125,819.20$
Job
Code FLSA
Shift/
Non-Shift Job Title
Steps Rate Monthly Annual Steps Rate Monthly Annual Steps Rate Monthly Annual
Salary Effective
the pay period following adoption
(7.5% Increase)
Salary Effective PP including 7/1/2016
2016-14
(10.5% Increase)
Salary Effective PP including 06/26/2017
2017-14
(2.5% Increase)
TBD Non-exempt NS FIRE AP OP EMT HAZ MT PARA Step 1 46.52$ Step 1 51.40$ Step 1 52.71$
Step 2 48.97$ Step 2 54.11$ Step 2 55.48$
Step 3 51.55$ Step 3 56.96$ Step 3 58.40$
Step 4 54.26$ Step 4 59.96$ Step 4 61.47$
Step 5 57.12$ 9,900.80$ 118,809.60$ Step 5 63.12$ 10,940.80$ 131,289.60$ Step 5 64.70$ 11,214.67$ 134,576.00$
City of Palo Alto (ID # 7018)
Finance Committee Staff Report
Report Type: Action Items Meeting Date: 5/23/2016
City of Palo Alto Page 1
Summary Title: FY 2017 Finance Committee Budget WrapUp
Title: Fiscal Year 2017 Finance Committee Budget Wrap-Up
From: City Manager
Lead Department: Administrative Services
Executive Summary
This staff report includes additional information pertaining to the Fiscal Year 2017 Proposed Budget,
summarizes changes to the City Manager’s Fiscal Year 2017 Proposed Budget, brings forth
recommended actions to revise the Fiscal Year 2017 Proposed Budget, and responds to questions raised
by the Finance Committee during previous budget hearings. Please refer to the table of contents below
for specific items.
Table of Contents
1)ADDITIONAL INFORMATION PERTAINING TO THE FISCAL YEAR 2017 PROPOSED BUDGET... 2
Fire Inspections Staffing: Sworn vs. Non-Sworn ........................................................................ 2
Citywide Sworn vs. Non-Sworn Staffing ..................................................................................... 2
2)WRAP-UP DISCUSSION OF OUTSTANDING ISSUES FROM PRIOR BUDGET HEARING
MEETINGS ....................................................................................................................................... 3
Current Status of Proposed Budget ........................................................................................... 3
Budget Process Parking Lot Summary ........................................................................................ 4
Additional Information Pertaining to Parking Lot Issues ........................................................... 7
General Fund ........................................................................................................................... 7
Capital Improvement Fund ...................................................................................................... 8
Fiscal Year 2017 Projected General Fund Budget Stabilization Reserve (BSR) EndingBalance 10
Recommended Changes to the Capital Budget ....................................................................... 10
Capital Reappropriations ....................................................................................................... 10
Changes to the FY 2017 Capital Budget Publication ............................................................. 11
Additional Information for Follow-up Provided by Staff ......................................................... 11
FY 2017 Municipal Fee Schedule ........................................................................................... 11
CMR #6932: ATTACHMENT P
City of Palo Alto Page 2
Pension Trust Fund 115 ......................................................................................................... 12
3)SUMMARY OF MAY 2016 FY 2017 BUDGET HEARING PROCEEDINGS .................................. 12
Finance Committee Tentative Motions ................................................................................... 12
General Fund ......................................................................................................................... 12
Enterprise Funds .................................................................................................................... 15
Internal Service Funds ........................................................................................................... 16
Capital Improvement Fund .................................................................................................... 16
Related Memos Distributed At Places ..................................................................................... 17
Referral Items for Staff to Return to Finance Committee at a Later Date ............................... 18
4)LIST OF ATTACHMENTS.......................................................................................................... 18
1)ADDITIONAL INFORMATION PERTAINING TO THE FISCAL YEAR 2017 PROPOSED BUDGET
This section provides additional information requested by the Finance Committee and/or
provided at staff’s behest in regards to the Fiscal Year 2017 Proposed Budget.
Fire Inspections Staffing: Sworn vs. Non-Sworn
At the May 10, 2016 Finance Committee Meeting, Councilmember Schmid requested further
information about the sworn staffing used to complete various Development Services activities
for the Fire Division. It was requested that the staff evaluate and follow-up with the Committee
on this staffing strategy. Staff has taken this question under advisement and plan to evaluate
Fire and Development Services potential cost savings opportunities by using civilian staff for
some of the Fire Prevention Bureau functions. These include plan checking, inspections of fire
and life safety systems (fire sprinklers, smoke alarms) and annual risk reduction inspections. It
should be noted that any recommendations from this evaluation would require management to
meet with the labor unions before any changes are made.
Citywide Sworn vs. Non-Sworn Staffing
At the May 10, 2016 Finance Committee meeting, Councilmember Filseth asked if there are any
sworn employees performing non-sworn activities citywide. Staff have taken this question
under advisement and plan to evaluate both the Police and Fire Departments over the course
of Fiscal Year 2017 to determine if there are sworn employees performing non-sworn activities.
If so, are there areas where these activities could be shifted to non-sworn employees to
increase capacity for sworn employees or are there areas where civilianizing positions is
possible and would generate cost savings. It should be noted that any recommendations from
this evaluation would require management to meet with the labor unions before any changes
are made.
City of Palo Alto Page 3
2)WRAP-UP DISCUSSION OF OUTSTANDING ISSUES FROM PRIOR BUDGET HEARING
MEETINGS
This section describes Finance Committee recommended changes made to the budget along with
follow-up items as discussed at the Finance Committee budget hearings held on May 3, 5, 10, 12, and
17. During these hearings, only two formal motions (staff recommended) were made to amend the FY
2017 Proposed Capital Budget on May 17th to 1) include a new project in the Electric Fund and 2) amend
the Art in Public Places project. Details on these motions can be found later in this report. Therefore,
the FY 2017 Proposed Operating and Capital Budgets remain in balance as transmitted to the full City
Council April 25th. This section also outlines those items recommended by the Finance Committee to be
placed in the “Parking Lot” for further discussion and staff-recommended changes to the proposed
budget document.
The items in this memorandum and any additional changes made during the May 23rd budget hearing
will be incorporated into the budget adoption staff report scheduled to be presented to the City Council
on June 13, 2016.
Current Status of Proposed Budget
As discussed above, only two formal changes to the FY 2017 Proposed Budget have been
recommended by the Finance Committee as of May 17, 2016. The Finance Committee
tentatively approved staff recommended changes to the Electric Fund and the Capital
Improvement Fund. In the Electric Fund, a new Facility Relocation for CalTrain Modernization
(EL-17007) capital project with $150,000 in Fiscal Year 2017 was added to study the cost of
relocating overhead electric and fiber optic lines to allow for the conversion of CalTrain from
diesel to electric power. In the Capital Improvement Fund, the funding in Fiscal Year 2017 for
the Art in Public Spaces (AC-86017) capital project was reduced by $156,327 due to a
calculation error with an offsetting adjustment to the Infrastructure Reserve Balance.
The two adjustments are outlined below with additional details that can be found in the May
17, 2016 At Places memorandum.
Proposed Revision Description
FY 2017
Current
Proposed
Budget
Tentative
Approved
Change
FY 2017
Revised
Proposed
Budget
Electric Fund
Facility Relocation for Caltrain Modernization
Project (EL-17007)
$0 $150,000 $150,000
Supply Operations Reserve
(FY 2017 Proposed Operating Budget pp.102)
$24,507,000 ($150,000) $24,357,000
General Capital Fund
Art in Public Spaces (AC-86017) $579,840 ($156,327) $423,513
General Capital Fund Infrastructure Reserve
(FY 2017 Proposed Capital Budget pp.91)
$11,594,442 $156,327 $11,750,769
City of Palo Alto Page 4
Budget Process Parking Lot Summary
During the budget hearings, the Finance Committee moved to make various changes to the
proposed budget primarily by moving items to the “Parking Lot” for further discussion at a
future meeting. This section outlines those items in two formats. 1) by emeeting date and 2)by
type of item.
Below is a list of actions taken organized by meeting date.
May 3, 2016
Non-Departmental: Establish Sustainability Contingency ($250,000; pg. 468)
Non-Departmental: 2016 Elections Funding ($150,000; pg. 468)
Non-Departmental: Establish Budget Uncertainty Reserve ($2.0 million; pg. 468)
Non-Departmental: Transfer from the General Fund: Traffic Signal and Streetlight
Electric Costs ($2.2 million; pg. 468)
Non-Departmental: Reduce Transfer to General Capital Improvement Fund (-$1.4
million; pg. 468)
May 5, 2016
Fire Department: Realignment of Fire Prevention Staff from Development Services
Department ($412,867; pg. 249)
Fire Department: Fire Station Furniture, Fixtures, and Equipment – Phase 2 ($125,000;
pg. 249)
Police Department: Project Safety Net – Track Watch Program ($824,000; pg. 341)
Community Services Department: HSRAP Funding ($1.4 million; pg. 221)
May 10, 2016
Development Services Department: Realignment of Fire Prevention, Planning, and
Public Works’ Staff (-$607,922; pg. 236)
Planning & Community Environment Department: Planning and Transportation
Contingency Funding (new item)
Planning & Community Environment Department: Ongoing Operations and
maintenance for two new Residential Preferential Parking program ($232,000; new
item)
Planning & Community Environment Department: Planning/Development Services
Staffing alignment ($95,060; pg. 325)
May 12, 2016
Public Works Department General Fund: Public Works Division Reallocations from
Development Services ($100,173; pg. 358)
Public Works Department General Fund: Tree Trimming Services 15 year cycle vs 10
year cycle ($170,000; pg. 359)
Potentially offset by a 1.0 position reduction in the General Fund as
recommended by the City Manager
City of Palo Alto Page 5
May 17, 2016
General Capital Fund Public Works: Municipal Services Center Lighting, Mechanical, &
Electrical Improvements potential 1 year project delay ($1.4 million; pg. 148)
General Capital Fund Public Works: Municipal Services Center A, B, & C Roof
Replacement potential 1 year project delay ($1.9 million; pg. 150)
General Capital Fund Community Services: Ramos Park Improvements potential 1 year
project delay ($199,019; pg. 226)
General Capital Fund Planning & Community Environment: Downtown Parking
Wayfinding University Avenue Parking District Fund ($632,076; pg. 278)
This table is organized to include the date the action was taken, a short description of the
action that was tentatively approved, and the dollar value. Following the table is additional
information for a few select items from the list as denoted by a “*” in the chart. These items
provide additional information requested by the Finance Committee and/or provided at staff’s
behest in regards to the items in the parking lot. Staff hopes that this additional information will
facilitate the committee’s review, discussion, and approval of these items.
City of Palo Alto Page 6
Date Dept Description GF Rev.
All
Funds
Rev.GF Exp.
All Fund
Exp GF Net
All Funds
Net
Requirements/Legal Compliance:
5/3 Non-Dept Transfer from the General Fund: Traffic
Signal and Streetlight Electric Costs*
$0 $0 $2,226 $2,226 ($2,226) ($2,226)
5/3 Non-Dept Reduce Transfer to General Capital
Improvement Fund
0 0 (1,400) (1,400) 1,400 1,400
5/3 Non-Dept 2016 Elections Funding 0 0 150 150 (150) (150)
5/10 DSD DSD Realignment: of Fire Prevention,
Planning, and Public Works' Staff
0 0 (608) (608)608 608
5/5 Fire DSD Realignment: of Fire Prevention Staff
from Development Services Department
0 0 413 413 (413) (413)
5/10 PCE DSD Realignment: Planning/Development
Services Staffing Alignment
0 0 95 95 (95) (95)
5/12 PW DSD Realignment: Public Works Division
Reallocations from Development Services
0 0 100 100 (100) (100)
Funding Source:
5/5 Police Project Safety Net - Track Watch Program 0 0 824 824 (824) (824)
5/17 GF Cap Downtown Parking Wayfinding (University
Ave. Parking District Fund)
0 600 0 632 0 (32)
Potential One Year Deferral:
5/17 GF Cap Municipal Service Center Lighting,
Mechanical, and Electric Improvements*
0 491 0 1,433 0 (942)
5/17 GF Cap Municipal Service Center A, B, & C Roof
Replacement*
0 1,083 0 1,942 0 (859)
5/17 GF Cap Ramos Park Improvements*0 0 0 199 0 (199)
Policy/Service Levels/Project Priorities:
5/3 Non-Dept Establish Sustainability Contingency*0 0 250 250 (250) (250)
5/3 Non-Dept Establish Budget Uncertainty Reserve 0 0 2,000 2,000 (2,000) (2,000)
5/5 Fire Fire Station Furniture, Fixtures, and
Equipment - Phase 2
0 0 125 125 (125) (125)
5/5 CSD Human Services Resource Allocation Process
(HSRAP) - Operating Budget pg 221
5/10 PCE Planning and Transportation Contingency
Funding* (staff rec. funding level)
0 0 500 500 (500) (500)
5/10 PCE Ongoing Operations & Maintenance of 2
new RPPs (Council 5/9/16)*
0 0 230 230 (230) (230)
5/12 PW Tree Trimming Services - 15 year cycle
versus 10 year cycle
0 0 170 170 (170) (170)
5/12 All 1.0 position reduction in the General Fund
as advised by the City Manager
$0 $2,174 $5,075 $9,281 ($5,075) ($7,107)
* These items have additional information provided following the chart.
Summary of "Parking Lot" Items
TBD
TBD
Total Parking Lot Items
City of Palo Alto Page 7
Additional Information Pertaining to Parking Lot Issues
General Fund
Transfer from the General Fund: Traffic Signal and Streetlight Electric: $2.2 million/Reduce
Transfer to General Capital Improvement Fund: -$1.4 million
As part of the Electric Fund Cost of Services Analysis (COSA), electricity costs associated with
City streetlight and traffic signal costs were identified as more appropriately aligned with the
General Fund. The proposed change in Electric Utility rates this year necessitates this transfer
in order to ensure the new rate structure fully complies with state law requirements.
Therefore, in order to partially offset this increased cost in the General Fund, staff
recommended that the transfer from the General Fund to the Capital Improvement Fund be
reduced resulting in a $21 million transfer from the General Fund in FY2017.
Planning and Community Environment Contingency: $500,000
The Finance Committee discussed the Planning & Community Environment Department’s need
for additional resources given the community focus on planning issues and the Council’s “Built
Environment” priority. Members suggested the need for additional architectural/urban design
expertise and the possibility of additional spending related to transportation demand
management. As a result, the Committee placed the idea of a planning and transportation
contingency in the “Parking Lot”.
Staff recommends a $500,000 contingency similar to the Fiscal Year 2016 Transportation
Contingency. In FY 2016, a $500,000 contingency was set aside for transportation initiatives.
By the end of this fiscal year, it is estimated that $430,000 of the contingency funds will have
been spent or obligated for various projects including support of the downtown Residential
Preferential Parking program (RPP), a coordinated traffic signal program for San Antonio Road,
and a speed survey contract. In FY 2017, a $500,000 contingency for planning and
transportation initiatives is recommended and may support similar transportation initiatives as
well as planning initiatives such as the Council’s request for Eichler-specific design guidelines.
Use of funds from the planning and transportation contingency for specific items during the
year would be subject to City Council approval. Staff recommends funding for this be reduced
from the Budget Stabilization Reserve.
Residential Preferential Parking Funding: $280,000
On May 9, 2016, the City Council asked the Finance Committee to include funding in the FY
2017 Operating Budget for new Residential Preferential Parking (RPP) districts in Southgate and
Evergreen Park (Capital costs are already addressed in the CIP). A preliminary estimate suggests
these programs will require an additional $280,000 on an ongoing annual basis. Of this funding,
$50,000 was already included in the development of the FY 2017 Proposed Operating Budget.
In order to provide sufficient funding in FY 2017, staff recommends the following adjustments
to the FY 2017 Proposed Operating Budget resulting in a net reduction to the Budget
Stabilization Reserve of $85,000:
City of Palo Alto Page 8
Action Source Use
FY 2017 Budget Stabilization Reserve (source of funding is the estimated FY
2016 Transportation Contingency Reserve remaining balance)
$70,000 ($155,000)
FY 2017 budget proposal for California Avenue Retail Feasibility
Study (FY 2017 Proposed Operating Budget page 327)
($75,000)
Residential Preferential Parking Operations $230,000
The ongoing costs of this program will be included as part of the development of the FY 2018
Long Range Financial Forecast.
Sustainability Contingency Reserve: $250,000
On May 3, 2016, the Finance Committee approved a tentative motion to place the recommended
$250,000 Office of Sustainability Contingency funding in the parking lot for further consideration.
Historically, the Office of Sustainability has operated with limited resources including a staff of
approximately 1.6 full time equivalent positions, staff matrixed from other departments, and a reliance
on contractors to fulfill its mandate. The proposed contingency reserve is recommended to be used for
the following activities necessary to execute the recently City Council approved Sustainability and
Climate Action Plan (S/CAP):
S/CAP research and analysis: The Office of Sustainability proposed staffing resources in
conjunction with other departmental staff will spend Fiscal Year 2017 working to develop S/CAP
work plans, in response to Council’s April 18, 2016 direction. It is anticipated that funding will
be partially used to engage contract services to refine S/CAP implementation scenarios,
adoption rates, estimated costs and projected greenhouse gas (GHG) and financial impacts, in
response to community and Council input. (Estimated cost: $100,000)
Management of Existing and Pending Pilot projects and grants: Contractual services are
anticipated to be necessary to manage the following active and anticipated initiatives to be
pursued: EV charging infrastructure; Electric Vehicle outreach and education (e.g., "ride and
drive” events); Sustainability financing strategies; MaaS (mobility as a service) pilots; Other short
term consulting projects. (Estimated cost: $100,000)
Community Engagement: Various methods and programs are necessary to ensure proper
community engagement for sustainability initiatives including: Web site development ($10,000);
Development of educational materials ($15,000); Digital Commenter management ($10,000);
Interactive modeling tools to support dynamic community exploration of S/CAP options
($15,000). (Estimated cost: $50,000)
This funding will increase the Office of Sustainability effectiveness and responsiveness to emerging
opportunities in the implementation of Sustainability programs, including the Sustainability and Climate
Action Plan (S/CAP).
Capital Improvement Fund
City of Palo Alto Page 9
At the May 17, 2016 meeting, the Committee discussed the potential of moving the
construction phases of various Capital projects from Fiscal Year 2017 to Fiscal Year 2018 as well
as the proposed and potential uses of revenues from the University Avenue Parking District
Fund. To assist the Committee in the further evaluation of these projects, below is additional
information to articulate the funding mechanisms.
Municipal Service Center Lighting, Mechanical, and Electrical Improvements (PF-16006): $1.4
million
Of the $1.4 million project, the proposed construction budget in FY 2017 is $1.1 million,
partially offset by the following transfers totaling $491,307 outlined below. The balance of the
construction cost, $576,021, was to be paid for by the Capital Improvement Fund Infrastructure
Reserve.
Source
FY 2017
Construction
Budget ($s)
Transfer from the Utilities Administration Fund 305,239
Transfer from the Vehicle Replacement and Maintenance
Fund
195,991
Transfer from the Refuse Fund (9,923)
Sub-total Transfers to Capital: $491,307
Capital Improvement Fund – Infrastructure Reserve 576,021
Total: 1,067,328
Municipal Service Center A, B, & C Roof Replacement (PF-17000): $1.9 million
Of the $1.9 million project, all funding was designated for construction costs partially offset by
the following transfers totaling $1.0 million outlined below. The balance of the construction
cost, $859,328, was to be paid for the Capital Improvement Fund Infrastructure Reserve.
Source
FY 2017
Construction
Budget ($s))
Transfer from the Utilities Administration Fund 684,000
Transfer from the Vehicle Replacement and Maintenance
Fund
380,000
Transfer from the Refuse Fund 19,000
Sub-total Transfers to Capital: 1,083,000
Capital Improvement Fund – Infrastructure Reserve 859,328
Total: 1,067,328
Ramos Park Improvements (PG-14000): $190,257
City of Palo Alto Page 10
The entirety of the $190,257 construction budget included in the FY 2017 Proposed Capital
Budget was anticipated to come from the Capital Improvement Fund Infrastructure Reserve.
Downtown Parking Wayfinding (PL-15004): $632,076
The FY 2017 Proposed Capital Budget recommends a project construction budget of $632,076
primarily funded by a recommended $600,000 transfer from the University Avenue Parking
District Fund. The balance of the construction cost, $32,076, was anticipated to come from the
Capital Improvement Fund Infrastructure Reserve.
Fiscal Year 2017 Projected General Fund Budget Stabilization Reserve (BSR) Ending Balance
To date, the Finance Committee has not made any tentative changes to the Proposed Budget
that resulted in any change to the proposed $4.9 million use of the Budget Stabilization
Reserve, leaving the recommended FY 2017 Reserve balance of $35.6 million or nearly 18%
intact. However, included in this report is a recommended further use of this reserve by an
additional $585,000 in net adjustments, decreasing the projected BSR balance from $35.6
million to $35.0 million, or 17.6% of the Proposed Budget. The General Fund BSR policy
maintains a reserve level of 15-20 percent of the General Fund operating budget, with a
targeted goal of 18.5 percent. This amount is $1.8 million below the 18.5 percent target.
Recommended Changes to the Capital Budget
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 2017-2021 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 2017 budget process continues this process with the current FY 2017
Proposed Capital Budget including approximately $58.0 million in reappropriated funds, across
all funds.
In the time since the Proposed Budget figures were developed (late winter and early spring of
2016), 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 2017 Capital Budget with current, more
refined estimated activity levels in Fiscal Year 2016.
Cumulatively, this re-review of projects has resulted in staff’s recommendation to increase the
Fiscal Year 2017 Proposed Budget by a net total of $21.7 million, from $170.5 million to $192.2
million, and are recommended in the following funds:
City of Palo Alto Page 11
Fund
Recommended Fiscal Year
2017 Funding Adjustment
Airport Fund $17,415
Capital Improvement Fund $1,838,846
Electric Fund $4,347,956
Fiber Optic Fund $158,000
Gas Fund $4,805,264
Refuse Fund $(92,176)
Storm Drainage Fund $531,162
Technology Fund $1,504,355
Vehicle Replacement and Maintenance
Fund
$55,253
Wastewater Collection Fund $1,841,549
Wastewater Treatment Fund ($3,768,814)
Water Fund $10,447,742
Total All Funds $21,722,552
These adjustments, as outlined in detail in Attachment - A, will ensure that funds are available
at the onset of Fiscal Year 2017 for projects that have experienced delays in the current year
and will reduce the Fiscal Year 2017 Proposed budget for projects that experienced higher than
anticipated expenditure levels within Fiscal Year 2016. These projects are at various stages of
their pan and the funding is required to fulfill the commitment and/or contractual obligations.
Changes to the FY 2017 Capital Budget Publication
At the Finance Committee hearing regarding the General Capital Improvement Fund on May 17,
2016, the Committee members discussed the presentation of a few projects and the
descriptions of others. This can also be seen in a few of the tentative motions to add clarifying
language to projects such as the Street Lights Improvement project to include “to preserve and
repair at sensitive locations and settings” language. Staff has taken these questions and
comments under advisement and will reassess the categorization of funding between project
phases such as design and construction and make corrections to the categorization as
appropriate as part of the production of the Final FY 2017 Adopted Capital Budget. In addition,
the descriptions and “Potential Board/Commission Review section will be updated to include
additional commission such as the Parks Commission as requested by the committee as
appropriate.
Additional Information for Follow-up Provided by Staff
FY 2017 Municipal Fee Schedule
When the amendments to the Municipal Fee Schedule for Fiscal Year 2017 were discussed by
the Finance Committee, the motion that tentatively approved the Schedule also included
direction to recommend to City Council that a referral be made to the Policy and Services
City of Palo Alto Page 12
Committee to explore a low income fee program, specifically with regards to Community
Services.
Pension Trust Fund 115
As part of the Long Range Financial Forecast review with the City Council on April 4, 2016 and
the transmittal of the FY 2017 Proposed Operating and Capital Budget to the City Council on
April 25, 2016 conversations over establishing a 115 Pension Trust Fund continued. Strong
support was voiced for this concept and it was requested to be considered as part of the FY
2017 Budget Hearings. Thus far, no actions have been taken as part of the budget hearings.
Below is a summary of staff and Council actions to date:
FY 2015 General Fund Budget Stabilization Reserve: $1.3 million in one-time funding
was set aside from the General Fund BSR from excess revenues and expenditure savings
from FY 2015. This funding remains unspent and unallocated.
Staff returned to the Finance Committee on April 5, 2016 to review various options to
address the unfunded pension liability and provide direction on a funding plan (CMR
#6792). The Finance Committee approved the following motion:
Chair Filseth moved, seconded by Council Member Wolbach that the Finance
Committee direct Staff to begin the process of identifying a partner to establish a
Section 115 Trust with the $1.3 million from the Fiscal Year 2016 General Fund
Budget as the initial payment and direct Staff to explore additional contributions to
the Section 115 Trust with contributions from other Funds. Recommend Staff and
Council consider any possible Fiscal Year 2017 contributions during the 2017 budget
process. Also, direct Staff to return to Council with the recommendation agendized
as an Action Item on the City Council Agenda.
3) SUMMARY OF MAY 2016 FY 2017 BUDGET HEARING PROCEEDINGS
The items listed below summarize motions made and/or action items made by the Finance
Committee as of May 17 that result in a fiscal change or other recommended change to the
Fiscal Year 2017 Proposed Budget.
Finance Committee Tentative Motions
General Fund
City Attorney
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 City Attorney budget (4-0)
City Auditor
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 City Auditor budget. (4-0)
City of Palo Alto Page 13
City Clerk
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 City Clerk budget. (4-0)
City Council
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 City Council budget. (4-0)
City Manager
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 City Manager budget. (4-0)
Office of Sustainability
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 Office of Sustainability budget. (3-1, Wolbach no)
Human Resources Department
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 Human Resources Operating Budget. (4-0)
Administrative Services Department
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 Administrative Services Department budget. (4-0)
Non-Departmental
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 Non-Departmental Operating Budget with the exception of the
following Budget Adjustments which will be moved to the parking lot for future
discussion: Establish Sustainability Contingency, 2016 Elections Funding,
Establish Budget Uncertainty Reserve, Transfer from General Fund for Traffic
Signal and Streetlight Electric Costs and Reduce Transfer to General Capital
Improvement Fund. (3-1, Wolbach no)
Fire Department
Motion: On May 5, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 Fire Department Operating Budget with the exception of the
following budget adjustments which will be moved to the parking lot for future
discussion: Realignment of Fire Prevention Staff from Development Services
Department, and Fire Station Furniture, Fixtures, and Equipment - Phase 2. (2-2,
Wolbach, Holman no)
Office of Emergency Services Department
City of Palo Alto Page 14
Motion: On May 5, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 Office of Emergency Services, Operating Budget. (4-0)
Police Department
Motion: On May 5, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 Police Department Budget with the exception of the following
budget adjustments which will be moved to the parking lot for future discussion:
Track Watch, $824,000. (3-1, Schmid no)
Community Services Department
Motion: On May 5 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 Community Services Department Budget with the exception of
the Human Services Resource Allocation Process Funding (HSRAP). (4-0)
Library Department
Motion: On May 5, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 Library Department, Operating Budget. (4-0)
Development Services Department
Motion: On May 10, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Development Services Department budget with the
exception of the following budget adjustments which will be moved to the
parking lot for future discussion: Realignment of the Fire Prevention, Planning,
and Public Works’ Staff in the amount of $607,922. (4-0)
Planning and Community Environment Department
Motion: On May 10, 2016, the Finance Committee recommended tentative approval the
Planning and Community Environment Fiscal Year 2017 Operating Budget, and to
place in the parking lot, funding for a “contingency fund.” (4-0)
Motion: On May 10, 2016, the Finance Committee recommended tentative addition of
the funding to address costs for the two new Residential Preferential Parking
(RPP) districts to the parking lot. (4-0)
Public Works Department
Motion: On May 12, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2016 Public Works General Fund Department budget . (3-0, 1
absent)
Motion: On May 12, 2016, the Finance Committee recommended placing $135,000 in
incremental costs to increase the tree trimming cycle from 15 years to 10 years
as well as a potential direction to the City Manager to identify a position in the
General Fund that could offset the potential increase in costs in the parking lot
City of Palo Alto Page 15
for future discussion. (3-0, 1 absent)
Enterprise Funds
Utilities Department
Motion: On May 17, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Utilities Department Electric Fund operating and capital
budgets. (3-0, 1 absent)
Motion: On May 17, 2016, the Finance Committee recommended tentative approval of
the inclusion of $150,000 for the Facility Relocation for Caltrain Modernization
Project in the final recommended FY 2017-2021 Capital Improvement Plan with a
corresponding decrease in the Distribution Reserve in the Electric Fund. (3-0, 1
absent)
Motion: On May 17, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Utilities Department Fiber Fund operating and capital
budgets. (3-0, 1 absent)
Motion: On May 17, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Utilities Department Gas Fund operating and capital
budgets. (3-0, 1 abstain)
Motion: On May 17, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Utilities Department Wastewater Collection Fund operating
and capital budgets. (3-0, 1 absent)
Motion: On May 17, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Utilities Department Water Fund operating and capital
budgets. (4-0)
Storm Drain Fund
Motion: On May 12, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Storm Drain Fund operating and capital budgets. (3-0, 1
absent)
Refuse Fund
Motion: On May 12, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Refuse Fund operating and capital budget. (3-0, 1 absent)
Wastewater Treatment Fund
Motion: On May 12, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Wastewater Treatment Fund operating and capital budgets.
City of Palo Alto Page 16
(3-0, 1 absent)
Airport Fund
Motion: On May 12, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Airport Fund operating and capital budget. (3-0, 1 absent)
Internal Service Funds
Information Technology Department
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 Information Technology Department budget. (4-0)
Vehicle Replacement Fund
Motion: On May 12, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Vehicle Replacement Fund operating and capital budgets.
(3-0, 1 absent)
Employee Benefits Funds
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 General Benefits and Workers’ Compensation Funds budget. (4-
0)
Motion: On May 10, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Retiree Health Benefit Fund budget. (4-0)
General Liability Fund
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 General Liability Fund budget. (4-0)
Printing and Mailing Fund
Motion: On May 3, 2016, the Finance Committee recommended tentative approval of the
Fiscal Year 2017 Printing and Mailing Fund budget. (4-0)
Capital Improvement Fund
Motion: On May 17, 2016, the Finance Committee recommended tentative approval of
the Buildings and Facilities Capital Budget and to place the construction costs for
the Municipal Service Center Lighting, Mechanical and Electrical Improvements
and the Minicipal Service Center A, B, & C Roof Replacmeents projects in the
parking lot. (3-1)
Motion: On May 17, 2016, the Finance Committee recommended tentative approval of
City of Palo Alto Page 17
the Parks and Open Space Capital Budget including the addition of the corrected
funding levels for the Art in Public Spaces capital project as outlined by Staff with
the exception of placing the Ramos Park Improvements project in the parking
lot. (4-0)
Motion: On May 17, 2016, the Finance Committee recommended tentative approval of
the Streets and Sidewalks Capital Budget and include language in the description
of the Street Lights Improvement project to include “to preserve and repair at
sensitive locations and settings.” (4-0)
Motion: On May 17, 2016, the Finance Committee recommended tentative approval of
the Traffic and Transportation Capital Budget with the exception of the
Downtown Parking Wayfinding Project in the parking lot. (2-1, 1 absent)
Motion: On May 17, 2016, the Finance Committee recommended tentative approval of
the Cubberley Infrastructure Capital Budget and for the Cubberley Infrastructure
Master Plan go to the Parks and Recreation Commission. (3-0, 1 absent)
Special Revenue Funds
Motion: On May 10, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Special Revenue Funds, Parking Permit District Fund, the
Stanford Development Agreement Fund, and the Other Special Revenue Fund
Budgets. (4-0)
Municipal Fee Schedule
Motion: On May 12, 2016, the Finance Committee recommended tentative approval of
the Fiscal Year 2017 Municipal Fee Schedule and to ask Council to refer to the
Policy and Services Committee a review of Low-income rates for municipal fee
rates. (3-0, Wolbach absent)
Related Memos Distributed At Places
Throughout the Finance Committee Budget Hearings, various memorandums were distributed
“at places” in order to respond to inqueries made by the committee or provide additional
pertinant information at staffs behest. Below is a sumary of the topics included in those
memorandums.
May 3, 2016
FY 2017 Proposed Operating Budget Replacement Pages
May 10, 2016
Community Services HSRAP Allocations
Community Services Staffing by Division
City of Palo Alto Page 18
Healthcare Actuarial Analysis
Storm Drain Oversight Committee Findings
May 12, 2016
Community Services HSRAP Allocations – Historical Funding Levels
Development Services Development Fee Cost Recovery
Housing In-Lieu Fund Balance
Development Services Performance Measure Goals
May 17, 2016
Street Trees Contract Increase vs. Cycle Time
Electric Fund Capital Improvement Project: Facility Relocation for CalTrain
Modernization Project
Art in Public Places
Planning Transportation Commission Findings
Zero Waste Coordinator to Environmental Specialist Reclassification
Unfunded Liability & Salary Growth Assumptions
In addition, summary presentations were given at each hearing providing high level overiews of
each item. Those presentations as well as the memos listed above can be referenced on the
City of Palo Alto’s Budget Office website under “Budget Hearing 2017” at:
http://www.cityofpaloalto.org/gov/depts/asd/budget.asp
Referral Items for Staff to Return to Finance Committee at a Later Date
Below is a list of referral items for staff to return to the Finance Committee at a later date that
emerged through the course of the FY 2017 Budget Hearings:
Review of Information Technology performance measures
Development Services Fire Sworn vs. Non-Sworn Staffing
Citywide Sworn vs. non-sworn staffing
Staff will return to the Committee regarding these items throughout FY 2017.
4) LIST OF ATTACHMENTS
Attachments:
FY 2017 CIP Reappropriation (PDF)
Project ID Project Title
FY 2017 Funding:
Proposed Capital
Budget Document
FY 2017 Funding
Adjustment
FY 2017 Revised
Funding: Proposed
Capital Budget
Document
Airport Fund
AP-16002 Wildlife Hazard Plan $ 6,000 $ 17,415 $ 23,415
Total Airport Fund $ 6,000 $ 17,415 $ 23,415
Capital Improvement Fund
AC-86017 Art In Public Spaces $ 425,513 $ 110,910 $ 536,423
OS-00001 Open Space Trails and Amenities $ 308,618 $ (72,759) $ 235,859
OS-00002 Open Space Lakes And Pond Maintenance $ 45,000 $ 20,409 $ 65,409
OS-09001 Off-Road Pathway Resurfacing And Repair $ 178,621 $ 20,459 $ 199,080
PE-09003 City Facility Parking Lot Maintenance $ 651,788 $ (44,194) $ 607,594
PE-09006 Mitchell Park Library and Community Center $ 2,861,558 $ 22,369 $ 2,883,927
PE-09010 Library & Community Center - Temporary Facilities $ - $ 117,155 $ 117,155
PE-11000 Rinconada Library New Construction and Improvements $ 1,037,274 $ (11,996) $ 1,025,278
PE-12017 City Hall First Floor Renovations $ - $ 161,995 $ 161,995
PE-13020 Byxbee Park Trails $ 15,000 $ 4,183 $ 19,183
PE-14015 Lucie Stern Buildings Mechanical and Electrical Upgrades $ 1,763,247 $ 1,054,723 $ 2,817,970
PE-14018 Baylands Boardwalk Improvements $ 400,000 $ 22,191 $ 422,191
PE-15001 New Public Safety Building $ 3,583,423 $ (369,711) $ 3,213,712
PE-15003 Fire Station 3 Replacement $ 6,293,471 $ 59,232 $ 6,352,703
PE-15007 New Downtown Parking Garage $ 1,320,977 $ 100,000 $ 1,420,977
PE-15011 Ventura Buildings Improvements $ 689,330 $ 89,998 $ 779,328
PE-15020 Civic Center Waterproofing Study and Repairs $ 89,065 $ 154,048 $ 243,113
PE-15029 Baylands Nature Interpretive Center Facility Improvements $ 631,542 $ 45,004 $ 676,546
PE-86070 Street Maintenance $ 6,800,843 $ (166,228) $ 6,634,615
PF-00006 Roofing Replacement $ 384,913 $ (28,178) $ 356,735
PF-02022 Facility Interior Finishes Replacement $ 501,915 $ (2,120) $ 499,795
PF-07011 Roth Building Maintenance $ 48,201 $ (2,313) $ 45,888
PF-14002 Fire Station 1 Improvements $ 390,890 $ (11,870) $ 379,020
PF-14004 California Avenue Parking District Parking Improvements $ 32,400 $ (2,800) $ 29,600
PF-93009 Americans With Disabilities Act Compliance $ 343,379 $ 23,884 $ 367,263
PG-06001 Tennis and Basketball Court Resurfacing $ 508,560 $ (11,100) $ 497,460
PG-09002 Park and Open Space Emergency Repairs $ 139,623 $ (28,466) $ 111,157
PG-09003 Park Maintenance Shop Remodel $ - $ 6,000 $ 6,000
PG-12004 Sarah Wallis Park Improvements $ - $ 48,002 $ 48,002
PG-15000 Buckeye Creek Hydrology Study $ 41,202 $ 149,180 $ 190,382
PL-00026 Safe Routes To School $ 212,737 $ 250,639 $ 463,376
PL-04010 Bicycle and Pedestrian Plan-Implementation Project $ 3,360,021 $ (1,117,226) $ 2,242,795
PL-05030 Traffic Signal and Intelligent Transportation System Upgrades $ 417,529 $ 567,968 $ 985,497
PL-11001 Dinah Summerhill Pedestrian/Bicycle Path $ - $ 113,641 $ 113,641
PL-11002 California Avenue- Transit Hub Corridor Project $ - $ 199,705 $ 199,705
PL-12000 Transportation and Parking Improvements $ 442,949 $ 131,523 $ 574,472
PL-14000 El Camino Real & Churchill Intersection Improvements-Design $ 84,974 $ 21,555 $ 106,529
CAPITAL BUDGET REAPPROPRIATIONS
ATTACHMENT A
A - 1
Project ID Project Title
FY 2017 Funding:
Proposed Capital
Budget Document
FY 2017 Funding
Adjustment
FY 2017 Revised
Funding: Proposed
Capital Budget
Document
CAPITAL BUDGET REAPPROPRIATIONS
PL-14001 Midtown Connector $ 118,984 $ 91,234 $ 210,218
PL-15001 Embarcadero Road Corridor Improvements $ 541,983 $ 28,129 $ 570,112
PL-15002 Parking Guidance Systems, Access Controls, and Revenue Collection Equipmen $ - $ 129,724 $ 129,724
PL-15004 Parking Wayfinding $ 632,076 $ 25,524 $ 657,600
PO-05054 Street Lights Improvements $ 423,029 $ 44,953 $ 467,982
PO-11000 Sign Reflectivity Upgrade $ 191,936 $ (97,525) $ 94,411
PO-11001 Thermoplastic Lane Marking and Striping $ 99,276 $ 29,376 $ 128,652
PO-12001 Curb and Gutter Repairs $ 485,444 $ (38,381) $ 447,063
Total Capital Improvement Fund $ 36,497,291 $ 1,838,846 $ 38,336,137
Electric Fund
EL-02010 SCADA System Upgrades $ 270,000 $ 30,000 $ 300,000
EL-02011 Electric Utility Geographic Information System $ 165,000 $ 200,000 $ 365,000
EL-10006 Rebuild Underground District 24 $ - $ 1,075,560 $ 1,075,560
EL-10009 Street Light System Conversion Project $ - $ 30,000 $ 30,000
EL-11003 Rebuild Underground District 15 $ 307,434 $ 144,181 $ 451,615
EL-11008 Rebuild Underground District 19 $ - $ 12,262 $ 12,262
EL-11010 Underground District 47-Middlefield, Homer, Webster, Addison $ - $ 744,038 $ 744,038
EL-11014 Smart Grid Technology Installation $ 672,670 $ 109,096 $ 781,766
EL-12001 Underground District 46 - Charleston/El Camino Real $ 622,315 $ 28,651 $ 650,966
EL-13006 Sand Hill / Quarry 12kV Tie $ - $ 157,259 $ 157,259
EL-13007 Underground Distribution System Security $ 240,534 $ 50,000 $ 290,534
EL-13008 Upgrade Electric Estimating System $ 103,650 $ 25,000 $ 128,650
EL-14004 Maybell 1&2 4/12kV Conversion $ - $ 185,372 $ 185,372
EL-14005 Reconfigure Quarry Feeders $ 774,758 $ 11,606 $ 786,364
EL-15000 Colorado/Hopkins System Improvement $ 775,000 $ 50,000 $ 825,000
EL-15001 Electric Substation Battery Replacement $ - $ 142,117 $ 142,117
EL-16000 Rebuild Underground District 26 $ 50,000 $ (50,000) $ -
EL-16001 Underground System Rebuild $ 580,000 $ (180,000) $ 400,000
EL-16002 Capacitor Bank Installation $ 275,000 $ 75,000 $ 350,000
EL-89028 Electric Customer Connection $ 3,108,000 $ 534,000 $ 3,642,000
EL-89031 Communications System Improvements $ 100,000 $ 187,759 $ 287,759
EL-89038 Substation Protection Improvements $ 450,000 $ 281,812 $ 731,812
EL-89044 Substation Facility Improvements $ 195,000 $ 204,243 $ 399,243
EL-98003 Electric System Improvements $ 2,000,000 $ 300,000 $ 2,300,000
Total Electric Fund $ 10,689,361 $ 4,347,956 $ 15,037,317
Fiber Optic Fund
FO-10001 Fiber Optics Network System Improvements $ 200,000 $ 158,000 $ 358,000
Total Fiber Optic Fund $ 200,000 $ 158,000 $ 358,000
ATTACHMENT A
A - 2
Project ID Project Title
FY 2017 Funding:
Proposed Capital
Budget Document
FY 2017 Funding
Adjustment
FY 2017 Revised
Funding: Proposed
Capital Budget
Document
CAPITAL BUDGET REAPPROPRIATIONS
Gas Fund
GS-03009 System Extensions - Unreimbursed $ 198,500 $ 128,690 $ 327,190
GS-11000 Gas Main Replacement - Project 21 $ - $ 100,000 $ 100,000
GS-11002 Gas Distribution System Improvements $ 231,913 $ 143,714 $ 375,627
GS-12001 Gas Main Replacement - Project 22 $ - $ 3,568,560 $ 3,568,560
GS-13001 Gas Main Replacement - Project 23 $ 3,550,650 $ 37,500 $ 3,588,150
GS-13002 Gas Equipment and Tools $ 100,000 $ 70,106 $ 170,106
GS-14004 Gas Distribution System Model $ - $ 106,791 $ 106,791
GS-15001 Security at City Gas Receiving Stations $ - $ 150,000 $ 150,000
GS-80017 Gas System, Customer Connections $ 1,228,500 $ 194,976 $ 1,423,476
GS-80019 Gas Meters and Regulators $ 355,030 $ 304,927 $ 659,957
Total Gas Fund $ 5,664,593 $ 4,805,264 $ 10,469,857
Refuse Fund
RF-16001 Household Hazardous Waste Station Improvements $ 240,522 $ (92,176) $ 148,346
Total Refuse Fund $ 240,522 $ (92,176) $ 148,346
Storm Drainage Fund
SD-11101 Channing Avenue/Lincoln Avenue Storm Drain Improvements $ 107,687 $ 25,000 $ 132,687
SD-13003 Matadero Creek Storm Water Pump Station and Trunk Line Improvements $ 5,820,910 $ 21,462 $ 5,842,372
SD-06101 Storm Drain System Replacement And Rehabilitation $ 1,776,811 $ 484,700 $ 2,261,511
Total Storm Drainage Fund $ 7,705,408 $ 531,162 $ 8,236,570
Technology Fund
TE-00010 Telephone System Replacement $ - $ 143,194 $ 143,194
TE-05000 Radio Infrastructure Replacement $ 1,626,163 $ 576,841 $ 2,203,004
TE-06001 Library RFID Implementation $ - $ 314,589 $ 314,589
TE-09000 Public Safety Computer-Aided Dispatch Replacement $ 495,548 $ (75,380) $ 420,168
TE-10001 Utilities Customer Bill System Improvements $ 250,000 $ 175,656 $ 425,656
TE-11001 Library Computer System Software $ - $ 200,868 $ 200,868
TE-11002 Mobile In-Car Video System Replacement $ - $ 30,902 $ 30,902
TE-12001 Development Center Blueprint Technology Enhancements $ 729,652 $ (102,921) $ 626,731
TE-13001 Interactive Voice Response $ - $ 106,181 $ 106,181
TE-14002 Virtual Library Branch $ - $ 170,425 $ 170,425
Total Technology Fund $ 3,101,363 $ 1,540,355 $ 4,641,718
Vehicle Replacement Fund
VR-15000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2015 $ 2,444,674 $ (72,606) $ 2,372,068
VR-16000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2016 $ 2,293,348 $ 127,859 $ 2,421,207
Total Vehicle Replacement Fund $ 4,738,022 $ 55,253 $ 4,793,275
ATTACHMENT A
A - 3
Project ID Project Title
FY 2017 Funding:
Proposed Capital
Budget Document
FY 2017 Funding
Adjustment
FY 2017 Revised
Funding: Proposed
Capital Budget
Document
CAPITAL BUDGET REAPPROPRIATIONS
Wastewater Collection Fund
WC-10002 Wastewater Collection System Rehabilitation/Augmentation Project 23 $ - $ 100,000 $ 100,000
WC-11000 Wastewater Collection System Rehabilitation/Augmentation Project 24 $ - $ 7,066 $ 7,066
WC-12001 Wastewater Collection System Rehabilitation/Augmentation Project 25 $ - $ 369,419 $ 369,419
WC-13001 Wastewater Collection System Rehabilitation/Augmentation Project 26 $ - $ 130,700 $ 130,700
WC-14001 Wastewater Collection System Rehabilitation/Augmentation Project 27 $ - $ 498,169 $ 498,169
WC-15001 Wastewater Collection System Rehabilitation/Augmentation Project 28 $ 3,183,000 $ 330,000 $ 3,513,000
WC-15002 Wastewater System Improvements $ 239,000 $ 53,567 $ 292,567
WC-80020 Sewer System, Customer Connections $ 394,000 $ 207,439 $ 601,439
WC-99013 Sewer Lateral/Manhole Rehab/Replacement $ 618,000 $ 145,189 $ 763,189
Total Wastewater Collection Fund $ 4,434,000 $ 1,841,549 $ 6,275,549
Wastewater Treatment Fund
WQ-04011 Facility Condition Assessment and Retrofit $ 2,811,765 $ (303,544) $ 2,508,221
WQ-10001 Plant Master Plan $ 3,183,417 $ (333,933) $ 2,849,484
WQ-14001 New Dewatering and Loadout Facility $ 11,672,744 $ (1,867,627) $ 9,805,117
WQ-80021 Plant Equipment Replacement $ 4,835,365 $ (1,263,710) $ 3,571,655
Total Wastewater Treatment Fund $ 22,503,291 $ (3,768,814) $ 18,734,477
Water Fund
WS-07000 Water Regulation Station Improvements $ - $ 135,541 $ 135,541
WS-07001 Water Recycling Facilities $ 200,000 $ 193,358 $ 393,358
WS-08001 Water Reservoir Coating Improvements $ - $ 320,682 $ 320,682
WS-08002 Emergency Water Supply Project $ - $ 271,208 $ 271,208
WS-09000 Seismic Water System Upgrades $ - $ 1,881,097 $ 1,881,097
WS-11000 Water Main Replacement - Project 25 $ - $ 725,386 $ 725,386
WS-11003 Water Distribution System Improvements $ 739,000 $ 126,582 $ 865,582
WS-11004 Water System Supply Improvements $ 239,000 $ 17,700 $ 256,700
WS-12001 Water Main Replacement - Project 26 $ - $ 5,904,489 $ 5,904,489
WS-13001 Water Main Replacement - Project 27 $ 5,680,651 $ 525,565 $ 6,206,216
WS-13002 Water General Equipment/Tools $ 50,000 $ 20,685 $ 70,685
WS-13004 Asset Management Mobile Deployment $ 82,163 $ (82,163) $ -
WS-15004 Water System Master Plan $ - $ 155,520 $ 155,520
WS-80015 Water Meters $ 565,000 $ 252,092 $ 817,092
Total Water Fund $ 7,555,814 $ 10,447,742 $ 18,003,556
GRAND TOTAL $ 103,335,665 $ 21,722,552 $ 125,058,217
ATTACHMENT A
A - 4
CMR #6932: ATTACHMENT Q
CITYWIDE FUNDS OVERVIEW
CITYWIDE FUNDS OVERVIEW • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 63
Citywide Average Salary
CATEGORY
Mgmt/
Professional
Utilities
Mgmt/
Professional
Fire Chief
Association IAFF
Police
Mgmt
Association PAPOA SEIU
Weighted
Average
Citywide Average Salary & Benefits
Full-Time Equivalent (FTE)224.35 48.00 5.00 99.00 7.00 83.00 585.75 1,052.10
Percent of City 21.3%4.6%0.5%9.4%0.7%7.9%55.7%100%
Salary (1)$132,796 $155,920 $175,005 $119,381 $190,906 $123,945 $84,435 $105,553
In-Lieu Holiday n/a n/a n/a $4,829 n/a $2,420 $177 $744
Incentive Pay (2)n/a n/a n/a $776 n/a $1,154 $357 $363
Overtime n/a n/a n/a $14,280 n/a $13,012 $4,334 $4,783
Management Leave (80 Hours)$5,108 $5,997 $6,731 n/a $7,343 n/a n/a $11,772
Pension Employer Portion
Misc 28.390%; Safety 43.426%$37,701 $44,266 $75,998 $54,276 $82,903 $55,377 $24,123 $33,878
Pension Employee Portion Paid by
City
FCA 3.9% (3)
n/a n/a $6,825 n/a n/a n/a n/a $32
Medicare $1,926 $2,261 $2,538 $1,731 $2,768 $1,797 $1,224 $1,531
Medical $16,416 $19,602 $18,675 $17,398 $20,317 $16,642 $17,091 $17,084
Dental/Vision $2,142 $2,349 $2,219 $2,371 $2,508 $2,165 $2,097 $2,152
Retiree Medical (4)$5,474 $7,063 $8,200 $7,556 $11,714 $9,530 $1,566 $5,842
Workers' Compensation $1,901 $1,454 n/a $3,421 n/a $3,603 $1,258 $1,778
Life Insurance/LTD/SUI $672 $672 $672 $672 $672 $672 $672 $672
Non-salary Benefits (5)$3,567 $3,210 $2,647 $147 $2,647 $3,493 $157 $1,309
Average Salary and Benefits $207,702 $242,791 $299,509 $226,838 $321,778 $233,811 $137,149 $187,493
Isolate Holiday Pay from Salary Category
Salary, includes holidays $132,796 $155,920 $175,005 $119,381 $190,906 $123,945 $84,435 $105,553
Holidays (assumes 11 9-hour days)$6,321 $7,421 $8,330 $5,682 $9,086 $5,899 $4,019 $5,024
Salary, excludes holidays $126,476 $148,499 $166,675 $113,699 $118,820 $118,046 $80,416 $100,529
1) Salary is calculated at actual pay rate (base pay and special pays, as applicable) as of February 2016 adjusted for step increases in
accordance with applicable Memoranda of Understanding with the City's bargaining groups or pay for performance increases for
Management and Professional employees.
2) Incentive pay includes: Fair Labor and Standards Act Charges and Night Shift Differential pay.
3) The City will pay 3.9% of FCA employee pension contributions in accordance with the Memorandum of Understanding.
4) Annual amount incurred for active employees (normal cost only).
5) Non-salary Benefits include professional development for Management, Utilities Management, FCA and PMA; tuition reimbursement for
FCA and PMA; and management excess benefit for Management, Utilities Management, FCA and PMA. Does not include administrative fees
for General Benefits and Workers' Compensation Funds.
Attachment A
INFORMATION TECHNOLOGY
284 INFORMATION TECHNOLOGY • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET
Manager Information Technology
Security 1.00 1.00 1.00 1.00 —141,855
Principal Business Analyst ——1.00 1.00 —137,113
Principal Management Analyst 1.00 1.00 ————
Senior Business Analyst 2.00 —2.00 2.00 —250,701
Senior Management Analyst —2.00 1.00 1.00 —114,940
Senior Technologist 12.00 13.50 15.00 16.00 1.00 1,975,109
Technologist 4.00 2.00 2.00 1.00 (1.00)116,262
Sub-total: Full-Time Equivalent
Positions 32.20 31.70 34.10 35.10 1.00 4,211,546
Temporary/Hourly 1.96 1.96 1.48 0.98 (0.50)171,222
Total Positions 34.16 33.66 35.58 36.08 0.50 4,382,768
Budget Reconciliation
Positions Expenditures Revenues
Net
Technology
Fund
Prior Year Budget 35.58 20,481,617 14,907,317 5,574,300
Base Adjustments
One-Time Prior Year Expenditures and Revenues Deleted
Council Chamber Recording Equipment — (350,000) (187,145) (162,855)
Enterprise Resource Planning System Selection — (250,000)— (250,000)
IT Service Management System — (200,000)— (200,000)
Docusign First Year Costs — (24,500) (13,100) (11,400)
Pitney Bowes Utility Bill Printing Upgrade — (12,000)— (12,000)
Utilities Customer Service Bill Improvements —— (243,000) 243,000
Capital Improvement Project Funding — (5,160,457)— (5,160,457)
Restoration of Prior Year One-time deletions — 50,000 —
One-Time Prior Year Expenditures and
Revenues —(5,946,957)(443,245)
Adjustments to Costs of Ongoing Activities
Salary and Benefits Adjustments 0.50 362,132 — 362,132
Capital Improvement Funding Adjustments — 3,374,732 1,140,912 2,233,820
Application Replacement and Maintenance — 197,557 — 197,557
Staffing
Job Classification
FY 2014
Actuals
FY 2015
Actuals
FY 2016
Adopted
Budget
FY 2017
Proposed
Budget
FY 2017
Change $
FY 2017
Salary
50,000
(5,503,712)
Attachment B
INFORMATION TECHNOLOGY
INFORMATION TECHNOLOGY • CITY OF PALO ALTO FISCAL YEAR 2017 PROPOSED BUDGET 285
Telecommunication Services — 16,600 — 16,600
Infrastructure Replacement and Maintenance — 41,877 — 41,877
Rental Expense Adjustment — 8,907 — 8,907
Desktop Replacement and Maintenance — (40,120)— (40,120)
Enterprise Systems Service and Maintenance — (20,357)— (20,357)
Administrative Services Department Staffing
Alignment — (6,563)— (6,563)
General Fund Administrative Cost Plan Allocated
Charges Adjustments — 24,359 — 24,359
General Liability Insurance Allocated Charges
Adjustments — (35,336)— (35,336)
Printing and Mailing Allocated Charges Adjustment —(390)—(390)
Utilities Allocated Charges Adjustments — 3,062 — 3,062
Vehicle Allocated Charges Adjustments — 4,051 — 4,051
Charges to Other Funds - Information Technology
Services ——551,952 (551,952)
— (37,410)— (37,410)
—— 69,126 (69,126)
0.50 3,893,101 1,761,990 2,131,111
36.08 18,427,761 16,226,062 2,201,699
—125,000 — 125,000
— 120,000 — 120,000
— 100,000 — 100,000
— 59,024 59,024 —
— 50,000 — 50,000
— 35,000 35,000 —
— 20,331 20,331 —
—509,355 114,355 395,000
Transfers to Other Funds
Information Technology Surcharge Revenue
Adjustments to Costs of Ongoing Activities
Total FY 2017 Base Budget
Budget Adjustments
1 SAP Consultant for Human Resources
2 Data Center Failover Redundancy
3 Accela Enhancements
4 HelpDesk Desktop Staffing
5 Project Management Application Pilot
6 Annual Security Testing
7 Information Technology Operations Staffing
Total Budget Adjustments
Total FY 2017 Proposed Budget 36.08 18,937,116 16,340,417 2,596,699
Budget Reconciliation
Positions Expenditures Revenues
Net
Technology
Fund
Attachment B
5/10/2016
City of Palo Alto
M E M O R A N D U M
TO: Finance Committee
DATE: May 10, 2016
SUBJECT: Additional Information Pertaining to the Fiscal Year 2017 Proposed Operating Budget
This memorandum transmits additional information requested by the Finance Committee and/or
provided at staff’s behest in regards to the Fiscal Year 2017 Proposed Operating Budget.
Community Services HSRAP Allocations (Finance Committee Budget Hearing May 5th; Agenda Item #5)
At the May 5th Finance Committee meeting, the Committee inquired about Human Services Resource
Allocation Process (HSRAP). Below are details about the programs funding history, funding cycle, and
reserve funding.
HSRAP Funding Cycle
HSRAP funding is allocated to a limited number of approved organizations on a two-year cycle. The
current grant cycle is from July 1, 2015 – June 30, 2017, therefore FY 2017 will be year two of the
current cycle. Year two funding levels are not guaranteed, but have historically been allocated at the
same level as the previous year, unless a CPI is approved or a funding reduction is proposed as part of a
city-wide budget shortfall.
Total funding for FY 2016 is $436,659 and 14 agencies are receiving funding. The total funding requested
at the beginning of this current cycle was $617,855. Only one agency’s request for $500,000 (more than
the total HSRAP funding available in FY 2016) was denied, as the request was to provide a similar service
to one that Stanford law students are providing local agencies pro-bono at this time.
HSRAP Funding History
Please see below for HSRAP funding history for the last three HSRAP cycles (two years each – FY 2012
and FY 2013, FY 2014 and FY 2015, FY 2016 and FY 2017). Note that totals do not include funding for
Avenidas and Palo Alto Community Child Care during that time in order to provide a more accurate
comparison to the current funding amount.
Historical HSRAP Funding Levels
FY 2012 FY 2013 FY 2014 FY2015 FY2016 FY2017
$292,558 $300,737 $348,163 $425,594 $436,659 $448,013
2.8% 15.8% 22.2% 2.6% 2.6%
1
5/10/2016
During the Fiscal Year 2014 HSRAP allocation discussion, the Human Relations Commission (HRC)
reported that in order to fund two more agencies it needed to recommend cutting all agencies 5%
across the board (except for Avenidas & PACCC) to free up funding to allocate to the new agencies. The
Finance Committee was not supportive of this approach and through a series of discussions with the
Finance Committee and with the full City Council, an increase of 7.1% across the board (including
Avenidas & PACCC), plus additional funding to include three new grantees was approved, resulting in a
year-over-year increase of 15.8%.
During the Fiscal Year 2015 budget allocation discussion for the HSRAP program, the HRC brought to the
attention of the Finance Committee the fact that HSRAP used to receive a regular CPI increase until 2003
when it was temporarily suspended (never to be reinstated) and that funding was further reduced in
2007 and 2009. By FY 2015 funding levels were virtually the same as FY 2005. The Council responded by
instituting a 2.6% (CPI) increase across the board plus an additional $68,000 to be awarded as part of an
additional allocation process to address unmet and emergency needs. A $50,000 HSRAP Reserve fund
was also created, as discussed below.
For the Fiscal Year 2016 and Fiscal Year 2017 funding cycle, a 2.6 percent CPI was assessed over the FY
2015 allocation in each year of the cycle.
In regards to comparing whether Palo Alto is doing more or less than comparable cities, this is difficult
to do as each city invests in a unique mix of human services, some with general fund dollars, some with
Community Development Block Grant Funding, and some both. It should be noted that Palo Alto funds
non-HSRAP general fund human services expenditures such as senior services, child care subsidies,
mediation services, a special contract for outreach to the homeless in downtown Palo Alto and a special
contract with the County of Santa Clara for case management and housing subsidies for homeless
individuals.
HSRAP Reserve Fund
As discussed above, the City Council authorized the creation of a HSRAP Reserve Fund on June 16, 2014.
The Reserve had an initial investment of $50,000 with the option that future City Councils could add
additional funding. It was stated that utilization of the Reserve Fund would be strictly under the auspices
of the City Council in order to assist with any funding shortfalls for HSRAP in the future. Thus, Council
could utilize the Reserve Fund rather than decrease funding for HSRAP. To date, the fund has not been
utilized and no additional funding has been added to the reserve. Staff is recommending that Council
consider expanding the use of the HSRAP Reserve Fund to also address the following:
• To provide one-time funding to current HSRAP grantees to address an emerging or emergency
need that was not evident or at a level of crisis during the original funding period. (HSRAP year
one or two)
• To provide one-time funding to a non-HSRAP nonprofit organization in the community to
address an existing critical need for which normal funding is no longer available and for which a
demonstrated human consequence will occur if funding is not obtained. (Non-HSRAP grantees)
If approved, a final and more detailed funding request process, including scope, criteria, and eligibility
would be drafted by staff, with the assistance of the HRC, and submitted for review and approval by
Council. Staff envisions a review and recommendation role for the HRC similar to their involvement in
the HSRAP process. If approved, staff in the Community Service Department’s Office of Human Services,
would provide process oversight and management. In addition, if this expansion is approved, staff would
2
5/10/2016
request an additional allocation through the FY 18 budget process to replenish the HSRAP Reserve Fund
to a pre-designated minimum balance if any spending from the reserve occurred during FY 17.
Avenidas & Palo Alto Community Child Care (PACCC)
For clarification, Avenidas and PACCC are no longer part of the HSRAP process. They were removed, at
their own request, starting with the FY16 budget year. They are now a direct service contractor with the
City (term is July 1, 2015 – June 30, 2020) and their compensation was negotiated as part of the contract
approval process. There is no CPI language in their contracts and an increase was not part of the motion
when their contracts were approved. There is general contract language in the compensation section of
their contracts that reads “The parties agree that the amount of compensation for the second through
the fifth contract years may be adjusted up or down, depending on availability of funds.” They were
given a 2.6% CPI as part of FY16 budget process because Council wanted to provide them parity with the
HSRAP grantees. That CPI was also applied in the development of the Fiscal Year Proposed Operating
Budget 2017 to continue to provide parity.
Community Services Staffing by Division (Finance Committee Budget Hearing May 5th; Agenda Item #5)
At the May 5th Finance Committee meeting, the Committee inquired about the net addition of 2.80
positions, when only 1.93 positions were detailed as part of the budget adjustments. Through the base
budget process, an additional 0.87 FTE (0.77 FTE part-time, and 0.10 full-time) was added to the CSD
Budget, resulting in a net increase of 2.80 positions from the Fiscal Year 2016 Adopted Operating Budget
to the Fiscal Year 2017 Proposed Operating Budget. This increase is primarily a correction to the FY 2016
Adopted Budget, which allocated funding for temporary salaries without identifying the associated
hourly FTE equivalent. Therefore, these transactions, which are identified as “Corrections” in the table
below, did not impact funding levels, rather more accurately reflected the budgeted funding as
temporary FTE. A reconciliation of all FTE changes are detailed in the table on the following page.
FTE Reconciliation for Community Services Department
Action FTE Change
Base Budget FTE Changes
Arts and Science Staffing Correction 0.49
Custodial Staffing Correction 0.96
Middle School Athletics Staffing Correction 0.28
Hourly Consolidation and Staffing Alignment (0.57)
Project Manager (added through CMR 6401) 0.10
MakeX Reallocation from Library 0.48
Human Services Staffing Alignment (0.02)
Youth Community Services Staffing Alignment (0.85)
Base Budget Sub-Total: 0.87
Proposed Budget FTE Changes
CSD Service Delivery Enhancements 0.68
Open Space Technicians 0.96
Bryant Street Garage Program Staffing 0.29
Proposed Budget Sub-Total: 1.93
Grand Total: 2.80
3
4
CITY OF PALO ALTO
RETIREE HEALTHCARE PLAN
June 30, 2015
GASB 45 Actuarial Valuation
Results
John E. Bartel, President
Mary Beth Redding, Vice President & Actuary
Deanna Van Valer, Assistant Vice President & Actuary
Adam Zimmerer, Actuarial Analyst
Bartel Associates, LLC
May 9, 2016
Contents
O:\Clients\City of Palo Alto\Projects\OPEB\2015 Val\Reports\BA PaloAltoCi 16-05-09 OPEB 6-30-15 Valuation Results.docx
Topic Page
Benefit Summary 1
Implied Subsidy 9
Participant Statistics 11
Actuarial Assumptions Highlights 17
Actuarial Methods 22
Assets 23
Results 25
Results - Details 39
Sensitivity Analysis 48
Actuarial Certification 51
Exhibits 52
Results by Fund and Department E-47
ATTACHMENT A
A - 1
May 9, 2016 1
BENEFIT SUMMARY
Eligibility Retire directly from the City under CalPERS (age 501 and 5 years
of CalPERS service or disability)
Medical
Provider
CalPERS health plans (PEMHCA)
CalPERS administrative fees paid by City
Retiree Medical
Hired < 1/1/04
(1/1/05 SEIU,
1/1/06 PAPOA)
GROUP 1: Retired < 1/1/07 (3/1/09 for PAPOA)
Full premium up to family coverage
GROUP 2: Retired between 1/1/07 (3/1/09 for PAPOA) and
5/1/11 (12/1/11 IAFF, 6/1/12 PMA, 4/1/15 PAPOA)
Same as above but premium limited to 2nd most expensive Basic
(non-Medicare) medical plan in the Bay Area Region (Blue
Shield NetValue in 2015, Blue Shield in 2016)
1 Age 52 for Miscellaneous New Hires under PEPRA
May 9, 2016 2
BENEFIT SUMMARY
Retiree Medical
Hired < 1/1/04
(1/1/05 SEIU,
1/1/06 PAPOA)
(continued)
GROUP 3: Retired ≥ 5/1/11 (12/1/11 IAFF, 5/1/12 FCA,
6/1/12 PMA, 4/1/15 PAPOA)
UTLM; FCA; PMA retired prior to 1/11/16; IAFF retired prior
to 4/1/16: 90% of premium up to 90% of Group 2 cap
PAPOA retired prior to 4/1/15 get 100% (same as Group 2)
SEIU retired prior to 4/1/16; Mgmt/Conf; & any IAFF/SEIU not
electing Group 42: limited to flat dollar caps same as active
contribution (for Mgmt/Conf, commences for payments
beginning after 1/1/15)
2015 2016 2017 2018
Single $ 708 $ 743 $ 773 $ 804
2-Party 1,415 1,485 1,544 1,606
Family 1,840 1,931 2,008 2,088
One-time irrevocable election for current active employees of
PAPOA, PMA, IAFF, & SEIU to opt into Group 4
All active Group 3 PAPOA & PMA elected into Group 43
All active Group 3 IAFF & SEIU assumed to elect into Group 4
2 IAFF & SEIU elections not yet held. All Group 3 members assumed to elect into Group 4, same as PAPOA and PMA. 3 PAPOA & PMA members who did not elect into Group 4 would have switched to active contribution dollar caps.
ATTACHMENT A
A - 2
May 9, 2016 3
BENEFIT SUMMARY
Retiree Medical
Hired ≥ 1/1/04
(1/1/05 SEIU,
1/1/06 PAPOA)
&
All Current
Active PAPOA,
PMA, SEIU &
IAFF4
GROUP 4: Government Code §22893 “Vesting Schedule” (based
on all CalPERS Service)5:
Years of Service %
< 10 0%
10 50%
↓ ↓
> 20 100%
100% vesting for disability retirements
Vesting applies to 100/90 formula amounts, which are the
maximum amounts payable by the City (retirees pay any difference
between these amounts and actual premiums):
2015 2016
Single $ 655 $ 705
2-Party 1,246 1,343
Family 1,605 1,727
If have 20 years City service do not need to retire directly from
City
4 As of the date of this valuation, SEIU and IAFF have not yet held the individual elections, but all members are assumed to
elect into Group 4, same as both PAPOA and PMA. 5 Minimum 5 years City Service.
May 9, 2016 4
BENEFIT SUMMARY
Dental, Vision
& Medicare
Part B
None
Surviving
Spouse Benefit
100% of retiree benefit continues to surviving spouse if retiree
elects CalPERS pension survivor allowance
Waived Re-
election
Waived retirees/beneficiaries may re-elect coverage at a future
date
Pay-As-You-
Go ($000s)
Fiscal
Year
Cash
Implied
Subsidy
Total
2014/15 $ 8,995 $ 1,916 $ 10,911
2013/14 7,317 - 7,317
2012/13 8,766 - 8,766
2011/12 8,165 - 8,165
2010/11 6,216 - 6,216
2009/10 5,519 - 5,519
ATTACHMENT A
A - 3
May 9, 2016 5
BENEFIT SUMMARY
Changes to Benefits Since Prior Valuation
Group Prior Benefit Current Benefit
GROUP 3
Mgmt/Conf
(eff 1/1/15)
90% of premium limited to 2nd
most expensive Basic (non-
Medicare) medical plan in the
Bay Area Region
Same as SEIU GROUP 3:
100% of premium limited to
fixed dollar caps (subject to
change beginning 2016)
GROUP 3
PAPOA
(eff 4/1/15)
Same as GROUP 2 benefit:
Full premium limited to 2nd
most expensive Basic (non-
Medicare) medical plan in the
Bay Area Region
All active members elected to
have GROUP 4 benefit: Vesting
schedule applied to 100/90
formula amounts (additional
detail on slide 3)
GROUP 3
PMA
(eff 1/11/16)
90% of premium limited to 2nd
most expensive Basic (non-
Medicare) medical plan in the
Bay Area Region
All active members elected to
have GROUP 4 benefit: Vesting
schedule applied to 100/90
formula amounts (additional
detail on slide 3)
May 9, 2016 6
BENEFIT SUMMARY
GROUP 3
IAFF
(eff 4/1/16)
90% of premium limited to 2nd
most expensive Basic (non-
Medicare) medical plan in the
Bay Area Region
Assume all active members elect
into GROUP 4 benefit. Vesting
schedule applied to 100/90
formula amounts (additional
detail on slide 3)
GROUP 3
SEIU
(eff 4/1/16)
Premium limited to active
contribution flat dollar caps
Assume all active members elect
into GROUP 4 benefit. Vesting
schedule applied to 100/90
formula amounts (additional
detail on slide 3)
ATTACHMENT A
A - 4
May 9, 2016 7
BENEFIT SUMMARY
Monthly Benefit Cap Amounts
2015 2016
Group Single 2-Party Family Single 2-Party Family
Group 16 $928.87 $1,857.74 $2,415.06 $1,033.86 $2,067.72 $2,688.04
Group 2 870.60 1,741.20 2,263.56 1,016.18 2,032.36 2,642.07
Group 37 783.54 1,567.08 2,037.20 914.56 1,829.12 2,377.86
Group 3 Flat8 708.00 1,415.00 1,840.00 743.00 1,485.00 1,931.00
Group 49 655.00 1,246.00 1,605.00 705.00 1,343.00 1,727.00
% Decrease from Group 1 (assumes Group 1 is in most expensive plan)
Group 2 6% 6% 6% 2% 2% 2%
Group 3 16% 16% 16% 12% 12% 12%
Group 3 Flat 24% 24% 24% 28% 28% 28%
Group 4 29% 33% 34% 32% 35% 36%
6 No cap for Group 1. Amount shown is most expensive Non-Medicare Bay Area region premium. 7 For FCA and UTLM only. All active Group 3 PAPOA, PMA and IAFF members assumed to elect Group 4. 8 For Mgmt/Conf only. All active SEIU Group 3 members assumed to elect Group 4. 9 Assuming 20 years of service/100% vesting.
May 9, 2016 8
BENEFIT SUMMARY
This page intentionally blank
ATTACHMENT A
A - 5
May 9, 2016 9
IMPLIED SUBSIDY
For PEMHCA, employer cost for allowing retirees to participate at active rates.
Kaiser Bay Area plan:
The City included the implied subsidy beginning with the June 30, 2013 valuation.
25 30 35 40 45 50 55 60 64 65 70 75 80 85
Premium 746 746 746 746 746 746 746 746 746 297 297 297 297 297
Male Cost by Age 246 268 322 402 513 664 856 1,093 1,328 285 268 336 360 358
Female Cost by Age 483 575 591 581 620 724 866 1,023 1,199 265 256 301 319 318
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
May 9, 2016 10
IMPLIED SUBSIDY
Estimated 2016/17 Implied Subsidy Transfer Illustration
(Amounts in 000’s)
Before Actives Retirees Total
Total Premiums10 $ 16,486 $ 11,042 $ 27,528
Participant Contributions11 - (620) (620)
City Contributions 16,486 10,422 26,908
After Actives Retirees Total
Total Premiums $ 16,486 $ 11,042 $ 27,528
Participant Contributions - (620) (620)
Implied Subsidy Transfer (2,203) 2,203 -
City Contributions 14,283 12,625 26,908
10 Estimated premiums based on the 6/30/15 participant data. 11 Assumes City pays full active participant premiums.
ATTACHMENT A
A - 6
May 9, 2016 11
PARTICIPANT STATISTICS
Participant Statistics
12 From 1/1/09 Milliman report 13 All retirements included. Disability retirement data unreliable.
6/30/0912 6/30/11 6/30/13 6/30/15
Actives
Count 955 923 948 955
Average Age 45.3 44.7 45.2 45.3
Average City Service 11.2 10.8 10.8 10.8
Average PERS Service 13.7 11.7 11.9
Average Salary $103,602 $86,007 $86,271 $91,714
Total Salary (000’s) $98,940 $79,384 $81,785 $87,586
Retirees:
Count 710 860 968 1,007
Average Age 67.2 67.0 68.2 68.9
Average Retirement Age
o Service n/a 55.513 57.8 57.7
o Disability n/a n/a 45.3 45.6
May 9, 2016 12
PARTICIPANT STATISTICS
Historical Active and Retiree Counts14
14 Retiree count is subscribers: retirees and surviving spouses
ATTACHMENT A
A - 7
May 9, 2016 13
PARTICIPANT STATISTICS
Participant Statistics
June 30, 2015
15 Includes Group 3 PAPOA & PMA (elected Group 4 benefits) and Group 3 IAFF & SEIU (assumed to elect Group 4). 16 Actual 2014/15 pay paid for those hired < 7/1/14. New hire pay is annualized. 17 Includes retirees who have waived coverage.
Group 1 Group 2 Group 3 Group 415 Total
Actives
Count n/a n/a 107 848 955
Average Age n/a n/a 52.0 44.5 45.3
Average Entry Age n/a n/a 32.6 34.8 34.5
Average City Service n/a n/a 19.4 9.7 10.8
Average PERS Service n/a n/a 20.2 10.9 11.9
Average Salary n/a n/a $129,385 $ 86,960 $ 91,714
Total Salary (000’s)16 n/a n/a $ 13,844 $ 73,742 $ 87,586
Retirees17:
Count 598 307 92 10 1,007
Average Age 73.8 63.0 57.5 62.3 68.9
Avg Service Ret Age 57.8 58.0 56.6 60.0 57.7
Avg Disability Ret Age 45.4 46.7 44.9 50.0 45.6
May 9, 2016 14
PARTICIPANT STATISTICS
Participant Statistics
June 30, 2013
18 Group 3 PAPOA have Group 2 benefits 19 Actual 2012/13 pay paid for those hired < 7/1/12. New hire pay is annualized. 20 Includes retirees who have waived coverage.
Group 1 Group 2 Group 318 Group 4 Total
Actives
Count n/a n/a 518 430 948
Average Age n/a n/a 49.1 40.6 45.2
Average Entry Age n/a n/a 32.0 35.4 33.5
Average City Service n/a n/a 16.5 4.0 10.8
Average PERS Service n/a n/a 17.1 5.2 11.7
Average Salary n/a n/a $92,284 $79,027 $86,271
Total Salary (000’s)19 n/a n/a $47,803 $33,982 $81,785
Retirees20:
Count 617 308 34 9 968
Average Age 72.6 61.0 56.0 56.1 68.2
Avg Service Ret Age 57.9 58.0 55.7 57.5 57.8
Avg Disability Ret Age 45.2 46.8 47.5 31.1 45.3
ATTACHMENT A
A - 8
May 9, 2016 15
PARTICIPANT STATISTICS
Data Reconciliation
6/30/2013 to 6/30/2015
Actives Retirees Disabled Benefic. Total
June 30, 2013 948 702 180 86 1,916
New Hires/Rehires 158 - - - 158
Disabled (3) - 3 - -
Terminated21 (93) - - - (93)
Died with Benefic.22 - (10) - 10 -
Died, no Beneficiary - (22) (6) (6) (34)
Retired (56) 56 - - -
Reinstatement 1 (1) - - -
Retired Disabled - (1) 1 -
Adjustment/Other - 4 2 9 15
June 30, 2015 955 728 180 99 1,962
21 All actives in June 30, 2013 valuation and not in June 30, 2015 valuation assumed terminated. 22 Retirees in the June 30, 2013 valuation not in the June 30, 2015 valuation assumed deceased.
May 9, 2016 16
PARTICIPANT STATISTICS
Medical Plan Participation – June 30, 2015
Retirees23
Medical Plan24 Actives < 65 ≥ 65 Total
Miscellaneous/Safety M S M S M S M S
Anthem Select 5% 1% 1% 0% 0% 0% 0% 0%
Anthem Traditional 17% 16% 10% 16% 1% 0% 5% 9%
Blue Shield 9% 4% 22% 6% 27% 16% 25% 11%
Blue Shield NetValue 2% 4% 1% 3% 0% 0% 0% 2%
Kaiser 44% 33% 27% 20% 31% 34% 29% 26%
PERS Choice 13% 2% 30% 2% 23% 6% 26% 4%
PERS Select 0% 0% 1% 0% 0% 0% 1% 0%
PERSCare 2% 1% 4% 3% 15% 32% 10% 16%
PORAC 1% 34% 1% 47% 1% 12% 1% 32%
UnitedHealthcare 8% 6% 4% 3% 1% 0% 2% 2%
Total 100% 100% 100% 100% 100% 100% 100% 100%
23 Under 65 only includes employees who retired on or after June 30, 2008; over 65 only includes retirees up to age 72. 24 All Anthem and Blue Shield Medicare retirees are assumed to switch to UnitedHealthcare in 2016 when their current plans
are no longer offered.
ATTACHMENT A
A - 9
May 9, 2016 17
ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2013 Valuation June 30, 2015 Valuation
Valuation Date June 30, 2013
Fiscal Years 2014/15 &
2015/16 ARCs
(end of year)
1 year lag
June 30, 2015
GASB 45 ARC for Fiscal
Year 2016/17. ADC25 for
Fiscal Year 2017/18.
(end of year)
1 year lag
Funding Policy Full Pre-funding through
CalPERS trust (CERBT) asset
allocation #1
Same
Discount Rate 7.61% (no Margin for Adverse
Deviation)
7.25%, net of expenses based
on CERBT Fund 1
Payroll
Increases
Aggregate Increases – 3.25%
Merit Increases – CalPERS
1997-2007 Experience Study
Aggregate Increases – 3.25%
Merit Increases – CalPERS
1997-2011 Experience Study
25 Actuarially Determined Contribution
May 9, 2016 18
ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2013 Valuation June 30, 2015 Valuation
Medical Trend Increase from Prior Year
Year Non-Medicare Medicare
2013 Premiums
2014 Premiums
2015 8.0% 8.3%
2016 7.5% 7.8%
2017 7.0% 7.2%
2018 6.5% 6.7%
2019 6.0% 6.1%
2020 5.5% 5.6%
2021+ 5.0% 5.0%
Increase from Prior Year
Year Non-Medicare Medicare
2013 n/a
2014 n/a
2015 Premiums
2016 Premiums
2017 7.0% 7.2%
2018 6.5% 6.7%
2019 6.0% 6.1%
2020 5.5% 5.6%
2021+ 5.0% 5.0%
Increase to
Dollar Caps for
SEIU Group 3
½ of Medical Trend, not less
than assumed inflation (3.0%)26
Same
Now also applies to
Mgmt/Conf Group 3
Participation at
Retirement
Group 3: 90%
Group 4: 85%
Groups 3 & 4: 90%
Based on Plan Experience27
26 Increase is for purposes of financial projection only and does not imply any obligation to increase the cap in the future. 27 Actual participation percentages for Group 3 since 6/30/13 are 73% Miscellaneous and 93% Safety, or 78% overall. We
recommend continued monitoring but do not update this year. Group 4 has very little actual experience, but those with less
than 10 years service will receive no benefit at all (assumption applies only to those with more than 10 years service).
ATTACHMENT A
A - 10
May 9, 2016 19
ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2013 Valuation June 30, 2015 Valuation
Retirement,
Mortality,
Termination,
Disability
CalPERS 1997-2007
Experience Study
Mortality improvement
projection Scale AA
Misc Fire & Police
Tier 1 2.7%@55 3%@50
Exp. RA28 59.3 55.7 & 54.5
Tier 2 2%@6029 3%@5530
Exp. RA 61.1 n/a & 59.7
PEPRA31 2.5%@67 2.7%@57
Exp. RA 61.0 n/a & 56.8
CalPERS 1997-2011
Experience Study
Mortality improvement Scale
MP-14 modified to converge
to ultimate mortality
improvement rate in 2022
Misc Fire & Police
Tier 1 2.7%@55 3%@50
Exp. RA25 58.6 56.7 & 55.0
Tier 2 2%@6029 3%@5530
Exp. RA 60.9 n/a & 57.3
PEPRA28 2.5%@67 2.7%@57
Exp. RA 60.9 n/a & 57.7
28 Retirement Age 29 Applies to non-PEPRA (Classic) employees hired after 7/17/2010 30 Applies to non-PEPRA (Classic) Police employees hired after 12/7/2012 and Fire employees hired after 6/7/2012 31 Applies to employees hired after 1/1/2013 and considered “New Members” under PEPRA
May 9, 2016 20
ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2013 Valuation June 30, 2015 Valuation
Medical Plan at
Retirement &
Retirees
Attaining age 65
Rates based on elections in
January 2014 (see slide E-39
for further details)
Rates based on elections in
June 2015 and January 2016
(see slide E-39 for further
details)
Family
Coverage at
Retirement
Actives
Misc : 15% until age 65
Safety : 40% until age 65
Retirees: based on current
elections until age 65
Same
Based on Plan Experience
Waived Retiree
Re-election
Pre-65 – 20% re-elect at age 65
Post-65 – 0%
Same
ACA Excise
Tax
N/A Estimate by 2% load on cash
subsidy
ATTACHMENT A
A - 11
May 9, 2016 21
ACTUARIAL ASSUMPTIONS HIGHLIGHTS
June 30, 2013 Valuation June 30, 2015 Valuation
Basis for
Assumptions
No experience study performed for this plan
CalPERS experience studies used, since covered employees are
also in CalPERS plans.
Mortality improvement is the most recent Society of Actuaries
table, modified slightly as, in our estimate, appropriate for
application to CalPERS base mortality table
Inflation based on our estimate for the Plan’s very long time
horizon.
Age-based claims are based on Society of Actuaries publications.
May 9, 2016 22
ACTUARIAL METHODS
Method June 30, 2013 Valuation June 30, 2015 Valuation
Cost Method Entry Age Normal Level % of
Pay
Same
Unfunded
Liability
Amortization
30 years closed period 28 years closed period
Sensitivity analysis:
24 & 20 years
Actuarial
Asset Value
Market Value of Assets32 Same
Future New
Entrants
Closed group – no new
participants
Same
Implied
Subsidy
Implied subsidy valued Same
Plan
Continuance
For purposes of financial projections, the plan and benefits are
assumed to continue unchanged. The calculation of this accounting
obligation does not imply that there is any legal liability to provide
or continue providing the benefits valued.
32 Using Market Value of Assets to determine the ARC will result in more volatile future ARCs than if a smoothed Market
Value were used.
ATTACHMENT A
A - 12
May 9, 2016 23
ASSETS
Market Value of Plan Assets – CERBT
(Amounts in 000’s)
2010/11 2011/12 2012/13 2013/14 2014/15
Proj.
2015/1633
MVA (Beg. of Year) $ 34,014 $ 44,774 $ 49,238 $ 60,070 $ 75,363 $ 78,578
Contributions 2,447 4,419 5,248 4,295 3,371 3,169
Benefit Payments34 - - - - - -
Admin. Expenses (50) (52) (80) (91) (76) (65)
Investment Return 8,363 97 5,664 11,088 (80) 59
MVA (End of Year) 44,774 49,238 60,070 75,363 78,578 81,741
Approx. Annual
Return 24.4% 0.1% 11.2% 18.2% (0.2%) 0.0%
33 Projected from actual 12/31/2015 balance using assumed rate of return for last half of fiscal year. 34 Benefit Payments made outside of trust by City. Refer to Slide 3 for fiscal year amounts.
May 9, 2016 24
ASSETS
Historical Returns35
35 Projected return for 2015/16 uses actual investment return for first half of fiscal year and assumed rate of return for last half
of fiscal year
ATTACHMENT A
A - 13
May 9, 2016 25
RESULTS
Actuarial Obligations
(Amounts in 000’s)
6/30/13 Valuation 6/30/15 Valuation
6/30/13 Proj. 6/30/14 6/30/15 Proj.6/30/16
Discount Rate 7.61% 7.25%
Present Value of Benefits
Actives $ 105,008 $ 125,764
Retirees 139,378 157,547
Total 244,386 283,311
Actuarial Accrued Liability
Actives 64,264 77,248
Retirees 139,378 157,547
Total 203,642 $ 213,458 234,795 $ 245,908
Actuarial Value of Assets(MV) 60,070 73,124 78,578 81,741
Unfunded AAL 143,572 140,333 156,217 164,167
Funded Ratio 29% 34% 33% 33%
Normal Cost 5,674 6,340
Pay-As-You-Go Cost (Cash) 9,152 10,353
Pay-As-You-Go Cost (IS) 1,916 2,203
May 9, 2016 26
RESULTS
Historical Funded Status
(Amounts in 000’s)
$0
$50,000
$100,000
$150,000
$200,000
$250,000
1/1/11 6/30/11 6/30/13 6/30/15
Retiree pay-go Retiree AAL less pay-go Active AAL MVA
ATTACHMENT A
A - 14
May 9, 2016 27
RESULTS
Actuarial Gain/Loss
(Amounts in 000’s)
AAL (MVA) UAAL
Actual 6/30/13 $ 203,642 $ (60,070) $143,572
Expected 6/30/16 233,639 (89,796) 143,843
Assumption Changes
CalPERS 97-11 Experience Study 1,298 1,298
Projected Mortality Improvement 7,908 7,908
Medical Plan Election (965) (965)
Excise Tax 3,709 3,709
Discount Rate: 7.61% → 7.25% 10,153 10,153
Contribution (Gain)/Loss (169) (169)
Investment (Gain)/Loss 8,224 8,224
Plan Changes → Slides 5 & 6 2,493 2,493
Experience (Gains)/Losses
Premiums/Caps < Expected (6,786) (6,786)
EE Elections – Coverage Changes (4,130) (4,130)
Demographic & Other (1,410) - (1,410)
Total (Gain)/Loss 12,269 8,055 20,324
Projected 6/30/16 245,908 (81,741) 164,167
May 9, 2016 28
RESULTS
Schedule of Funding Progress
(Amounts in 000’s)
Actuarial
Valuation
Date
Actuarial
Value of
Assets36
(a)
Entry Age
Actuarial
Accrued
Liability
(b)
Unfunded
Actuarial
Accrued
Liability
(b-a)
Funded
Ratio
(a/b)
Covered
Payroll
(c)
UAAL as
Percentage
of Covered
Payroll
((b-a)/c)
1/1/2011 $ 40,213 $ 165,660 $ 125,447 24.3% $ 98,940 126.8%
6/30/2011 44,774 168,053 123,279 26.6% 80,664 152.8%
6/30/2013 60,070 203,642 143,572 29.5% 81,785 175.5%
6/30/2015 78,578 234,795 156,217 33.5% 87,586 178.4%
36 Actuarial value equals market value of assets
ATTACHMENT A
A - 15
May 9, 2016 29
RESULTS
Annual Required Contribution (ARC)
(Amounts in 000’s)
6/30/13 Valuation 6/30/15 Valuation
2014/15 2015/16 2016/17 2017/1837
Discount Rate 7.61% 7.25%
ARC - $
Normal Cost $ 5,674 $ 5,880 $ 6,340 $ 6,587
UAAL Amortization 8,607 8,887 10,025 10,351
Total 14,282 14,767 16,365 16,938
Projected Payroll 87,187 90,021 93,372 96,406
ARC - %Pay
Normal Cost 6.5% 6.5% 6.8% 6.8%
UAAL Amortization 9.9% 9.9% 10.7% 10.7%
Total 16.4% 16.4% 17.5% 17.5%
37 ADC for 2017/18.
May 9, 2016 30
RESULTS
Annual Required Contribution (ARC) 38
(Amounts in 000’s)
38 ADC for 2017/18.
11/12 12/13 13/14 14/15 15/16 16/17 17/18
Normal Cost 4,782 5,091 5,256 5,674 5,880 6,340 6,587
Amortization 7,802 7,665 7,779 8,607 8,887 10,025 10,351
ARC 12,584 12,756 13,035 14,282 14,767 16,365 16,938
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
ATTACHMENT A
A - 16
May 9, 2016 31
RESULTS
Amortization Bases & Payments
(Amounts in 000’s)
6/30/13 Valuation 6/30/15 Valuation
6/30/14 6/30/15 6/30/16 6/30/17
UAAL Balance $ 140,333 $ 142,405 $ 164,167 $ 166,044
Amortization Payment - $ 8,607 8,887 10,025 10,351
Amortization Period 30 29 28 27
May 9, 2016 32
RESULTS
This page intentionally blank
ATTACHMENT A
A - 17
May 9, 2016 33
RESULTS
Estimated Net OPEB Obligation/(Asset) Illustration
(Amounts in 000’s)
6/30/13 Valuation 6/30/15 Valuation
CAFR
2014/15
Estimate
2015/16
Estimate
2016/17
NOO/(NOA) at Beginning of Year $(22,610) $(20,955) $ (21,295)
Annual OPEB Cost
Annual Required Contribution 14,282 14,767 16,365
Interest on NOO (1,721) (1,595) (1,544)
NOO Adjustment 2,212 1,255 1,301
Annual OPEB Cost 14,773 14,427 16,122
Contributions
Cash Benefit Payments39 8,995 9,638 10,353
Implied Subsidy Benefit Payments40 1,916 1,960 2,203
Trust Funding 4,123 3,169 3,809
Total Contributions 13,118 14,767 16,365
NOO/(NOA) at End of Year (20,955) (21,295) (21,538)
39 Estimated cash payments shown for all years after 2014/15. Actual cash payments should be used for OPEB footnote. 40 Use amounts listed here for 2015/16 and 2016/17 OPEB footnotes.
May 9, 2016 34
RESULTS
10 Year Contribution Projection
(Amounts in 000’s)
FYE
ARC /
ADC41
Contribution
Pay
ARC /
ADC
% of Pay
Cash
BP
IS
BP
Pre-
Funding Total
2017 $16,365 $10,353 $2,203 $3,809 $16,365 $ 93,372 17.5%
2018 16,938 11,099 2,444 3,395 16,938 96,406 17.5%
2019 17,530 11,766 2,629 3,135 17,530 99,539 17.6%
2020 18,138 12,371 2,802 2,965 18,138 102,774 17.6%
2021 18,765 13,014 3,033 2,718 18,765 106,115 17.7%
2022 19,411 13,654 3,271 2,486 19,411 109,563 17.7%
2023 20,076 14,324 3,540 2,212 20,076 113,124 17.7%
2024 20,760 14,985 3,774 2,001 20,760 116,801 17.8%
2025 21,466 15,618 3,984 1,864 21,466 120,597 17.8%
2026 22,192 16,214 4,107 1,871 22,192 124,516 17.8%
41 ARC is defined by GASB 45. Actuarially Determined Contribution (ADC) beginning 2017/18.
ATTACHMENT A
A - 18
May 9, 2016 35
RESULTS
% of Total Actuarial Accrued Liability for Actives and Retirees
Miscellaneous
May 9, 2016 36
RESULTS
% of Total Actuarial Accrued Liability for Actives and Retirees
Safety
ATTACHMENT A
A - 19
May 9, 2016 37
RESULTS
UAAL – % of Payroll
(Amounts in 000’s)
6/30/11 6/30/13 6/30/15
UAAL/Payroll for year ending on
valuation date
Miscellaneous 147% 158% 152%
Safety 168% 228% 276%
Total 153% 176% 178%
May 9, 2016 38
RESULTS
ATTACHMENT A
A - 20
May 9, 2016 39
RESULTS - DETAILS
Actuarial Obligations
June 30, 2015
(Amounts in 000’s)
Benefits <
Age 65
Benefits >
Age 65 Total
Present Value of Benefits
Actives $ 63,897 $ 61,867 $125,764
Retirees 47,382 110,165 157,547
Total 111,279 172,032 283,311
Actuarial Accrued Liability
Actives 38,198 39,050 77,248
Retirees 47,382 110,165 157,547
Total 85,580 149,215 234,795
Normal Cost 2016/17 3,235 3,105 6,340
May 9, 2016 40
RESULTS - DETAILS
Actuarial Obligations
June 30, 2015
(Amounts in 000’s)
Group 1 Group 2 Group 3 Group 442 Total
Present Value of
Benefits
Actives $ - $ - $ 18,960 $106,804 $125,764
Retirees 70,845 65,247 20,229 1,225 157,547
Total 70,845 65,247 39,189 108,029 283,311
Actuarial Accrued
Liability
Actives - - 15,649 61,599 77,248
Retirees 70,845 65,247 20,229 1,225 157,547
Total 70,845 65,247 35,878 62,824 234,795
Normal Cost 2016/17 - - 572 5,769 6,340
NC as % of Payroll 4.3% 7.2% 6.8%
Count n/a n/a 107 848 955
Total Salary (000’s) n/a n/a $ 13,844 $ 73,742 $ 87,586
42 Includes all active Group 3 PAPOA, PMA, IAFF & SEIU who elected (or are assumed to have elected) Group 4 benefits.
ATTACHMENT A
A - 21
May 9, 2016 41
RESULTS - DETAILS
Cash/Implied Subsidy – Actuarial Obligations – June 30, 2015
(Amounts in 000’s)
Cash
Subsidy
Implied
Subsidy Total
Present Value of Benefits
Actives $ 107,817 $ 17,947 $ 125,764
Retirees 124,770 32,777 157,547
Total 232,587 50,724 283,311
Actuarial Accrued Liability
Actives 65,601 11,647 77,248
Retirees 124,770 32,777 157,547
Total 190,371 44,424 234,795
Market Value of Assets43 78,578 - 78,578
Unfunded AAL 111,793 44,424 156,217
Normal Cost 2016/17 5,494 846 6,340
Pay-As-You-Go Cost 2016/17 10,353 2,203 12,556
43 Allocated to cash subsidy for illustrative purposes.
May 9, 2016 42
RESULTS - DETAILS
Cash/Implied Subsidy – Annual Required Contribution – 2016/17 FY
(Amounts in 000’s)
Cash
Subsidy
Implied
Subsidy Total
ARC - $
Normal Cost $ 5,494 $ 846 $ 6,340
UAAL Amortization 7,190 2,835 10,025
ARC 12,684 3,682 16,365
Projected Payroll 93,372 93,372 93,372
ARC - %
Normal Cost 5.9% 0.9% 6.8%
UAAL Amortization 7.7% 3.0% 10.7%
ARC 13.6% 3.9% 17.5%
ATTACHMENT A
A - 22
May 9, 2016 43
RESULTS - DETAILS
Actuarial Obligations
June 30, 2015
(Amounts in 000’s)
Misc Safety Total
Present Value of Benefits
Actives $ 90,816 $ 34,948 $125,764
Retirees 99,731 57,816 157,547
Total 190,547 92,764 283,311
Actuarial Accrued Liability
Actives 58,625 18,623 77,248
Retirees 99,731 57,816 157,547
Total 158,356 76,439 234,795
Market Value of Assets44 52,996 25,582 78,578
Unfunded AAL 105,360 50,857 156,217
Normal Cost 2016/17 4,580 1,760 6,340
Pay-As-You-Go Cost 2016/17 8,313 4,243 12,556
44 Allocated in proportion to the Actuarial Accrued Liability.
May 9, 2016 44
RESULTS - DETAILS
Annual Required Contribution (ARC)
2016/17 Fiscal Year
(Amounts in 000’s)
Misc Safety Total
ARC - $
Normal Cost $ 4,580 $ 1,760 $ 6,340
UAAL Amortization45 6,779 3,246 10,025
ARC 11,359 5,006 16,365
Projected Payroll 73,716 19,656 93,372
ARC - %
Normal Cost 6.2% 9.0% 6.8%
UAAL Amortization 9.2% 16.5% 10.7%
ARC 15.4% 25.5% 17.5%
45 Allocated in proportion to the Actuarial Accrued Liability.
ATTACHMENT A
A - 23
May 9, 2016 45
RESULTS - DETAILS
Actuarial Obligations – By Bargaining Unit
June 30, 2015
(Amounts in 000’s)
FCA IAFF M/C PAPOA PMA SEIU UTLM Total
PVB
Actives $ 995 $16,926 $21,849 $14,414 $1,987 $ 61,396 $8,197 $125,764
Retirees 1,653 29,962 49,876 19,549 1,420 54,242 844 157,547
Total 2,648 46,888 71,725 33,963 3,407 115,638 9,041 283,311
AAL
Actives 692 9,617 12,820 6,315 1,518 40,008 6,279 77,248
Retirees 1,653 29,962 49,876 19,549 1,420 54,242 844 157,547
Total 2,345 39,579 62,696 25,864 2,938 94,250 7,123 234,795
MVA46 785 13,246 20,982 8,656 983 31,542 2,384 78,578
UAAL 1,560 26,333 41,714 17,208 1,955 62,708 4,739 156,217
NC 16/17 42 769 1,290 837 77 2,972 353 6,340
Pay-Go 103 2,220 3,906 1,454 87 4,631 155 12,556
46 Allocated in proportion to the Actuarial Accrued Liability.
May 9, 2016 46
RESULTS - DETAILS
Annual Required Contribution (ARC) – By Bargaining Unit
2016/17 Fiscal Year
(Amounts in 000’s)
FCA IAFF M/C PAPOA PMA SEIU UTLM Total
ARC - $
Normal Cost $ 42 $ 769 $1,290 $ 837 $ 77 $ 2,972 $ 353 $ 6,340
UAAL Amort47 101 1,674 2,635 1,107 129 4,059 321 10,025
ARC 143 2,443 3,925 1,944 206 7,031 674 16,365
Proj. Payroll 714 8,280 24,214 8,662 1,368 43,493 6,640 93,372
ARC - %
Normal Cost 5.9% 9.3% 5.3% 9.6% 5.7% 6.9% 5.3% 6.8%
UAAL Amort 14.1% 20.2%10.9%12.8% 9.4% 9.3% 4.8%10.7%
ARC 20.0% 29.5% 16.2% 22.4% 15.1% 16.2% 10.1% 17.5%
47 Allocated in proportion to the Actuarial Accrued Liability.
ATTACHMENT A
A - 24
May 9, 2016 47
RESULTS - DETAILS
Actuarially Determined Contribution (ADC) – By Bargaining Unit
2017/18 Fiscal Year
(Amounts in 000’s)
FCA IAFF M/C PAPOA PMA SEIU UTLM Total
ARC - $
Normal Cost $ 44 $ 793 $1,355 $ 864 $ 80 $ 3,069 $ 382 $ 6,587
UAAL Amort48 104 1,729 2,721 1,143 133 4,191 332 10,351
ARC 147 2,522 4,075 2,007 213 7,260 714 16,938
Proj. Payroll 737 8,549 25,001 8,943 1,412 44,906 6,856 96,406
ARC - %
Normal Cost 5.9% 9.3% 5.4% 9.6% 5.7% 6.9% 5.6% 6.8%
UAAL Amort 14.1% 20.2% 10.9%12.8% 9.4% 9.3% 4.8% 10.7%
ARC 20.0% 29.5% 16.3% 22.4% 15.1% 16.2% 10.4% 17.5%
48 Allocated in proportion to the Actuarial Accrued Liability.
May 9, 2016 48
SENSITIVITY ANALYSIS
CERBT Investment Options
Updated Target asset allocations (approved by CalPERS Board October 2014)
Asset Classifications Option 1 Option 2 Option 3
Global Equity 57% 40% 24%
US Nominal Bonds 27% 39% 39%
REIT's 8% 8% 8%
TIPS 5% 10% 26%
Commodities 3% 3% 3%
Total 100% 100% 100%
Bartel Associates analysis of expected returns:
Option 1 Option 2 Option 3
Expected Real Rate of Return 4.48% 3.82% 3.16%
Inflation Assumption 3.00% 3.00% 3.00%
Expenses (Admin. & Invest.) 0.15% 0.15% 0.15%
Nominal Rate of Return 7.33% 6.67% 6.01%
Recommended Discount Rate 7.25% 6.50% 6.00%
ATTACHMENT A
A - 25
May 9, 2016 49
SENSITIVITY ANALYSIS
Discount Rate Sensitivity
(Amounts in 000’s)
CERBT
#1 #2 #3
Discount Rate 7.25% 6.50% 6.00%
Present Value of Benefits $ 283,311 $ 318,455 $ 345,972
Funded Status 6/30/15
Actuarial Accrued Liability 234,795 258,084 275,772
Actuarial Value of Assets 78,578 78,578 78,578
Unfunded AAL 156,217 179,506 197,194
Funded Ratio 33.5% 30.4% 28.5%
ARC 2016/17
Normal Cost $ 6,340 $ 7,442 $ 8,311
UAAL Amortization49 10,025 10,550 10,907
Total 16,365 17,992 19,218
ARC % of Payroll 17.5% 19.3% 20.6%
49 UAAL projected using the same 6/30/16 projected assets for all scenarios. UAAL amortized over 28 years for all scenarios.
May 9, 2016 50
SENSITIVITY ANALYSIS
Amortization Period Sensitivity
(Amounts in 000’s)
Amortization Period 28 Years 24 Years 20 Years
Funded Status Projected to
6/30/16
Actuarial Accrued Liability $ 245,908 $ 245,908 $ 245,908
Actuarial Value of Assets 81,741 81,741 81,741
Unfunded AAL 164,167 164,167 164,167
Total Projected Payroll 2016/17 93,372 93,372 93,372
ARC 2016/17
Normal Cost $ 6,340 $ 6,340 $ 6,340
UAAL Amortization 10,025 10,974 12,334
Total 16,365 17,314 18,674
ARC % of Payroll 17.5% 18.5% 20.0%
ATTACHMENT A
A - 26
May 9, 2016 51
ACTUARIAL CERTIFICATION
This report presents the City of Palo Alto Retiree Healthcare Plan (“Plan”) June 30, 2015 actuarial valuation. The purpose of this
valuation is to:
Determine the Governmental Accounting Standards Board Statement Nos. 43 and 45 June 30, 2015 Benefit Obligations,
Determine the Plan’s June 30, 2015 Funded Status,
Calculate the 2016/17 Annual Required Contribution, and
Calculate the 2017/18 recommended City contribution.
The report provides information intended for reporting under GASB 43 and 45, but may not be appropriate for other purposes.
Information provided in this report may be useful to the City for the Plan’s financial management. Future valuations may differ
significantly if the Plan’s experience differs from our assumptions or if there are changes in Plan design, actuarial methods, or
actuarial assumptions. The project scope did not include an analysis of this potential variation.
The valuation is based on Plan provisions, participant data, and asset information provided by the City as summarized in this
report, which we relied on and did not audit. We reviewed the participant data for reasonableness.
To the best of our knowledge, this report is complete and accurate and has been conducted using generally accepted actuarial
principles and practices. Additionally, in our opinion, actuarial methods and assumptions comply with GASB 43 and 45. As
members of the American Academy of Actuaries meeting the Academy Qualification Standards, we certify the actuarial results
and opinions herein.
Respectfully submitted,
John E. Bartel, ASA, MAAA
President
Bartel Associates, LLC
May 9, 2016
Mary Elizabeth Redding, FSA, EA, MAAA
Vice President
Bartel Associates, LLC
May 9, 2016
Deanna Van Valer, ASA, MAAA, EA
Assistant Vice President
Bartel Associates, LLC
May 9, 2016
May 9, 2016 52
EXHIBITS
Topic Page
Premiums E- 1
Data Summary E- 5
Actuarial Assumptions E-35
Results by Fund E-47
Results by GF Department E-49
Definitions E-51
ATTACHMENT A
A - 27
May 9, 2016 E-1
PREMIUMS
2014 PEMHCA Monthly Premiums
Bay Area
Non-Medicare Eligible Medicare Eligible
Medical Plan Single 2-Party Family Single 2-Party Family
Anthem Select $657.33 $1,314.66 $1,709.06 $341.12 $682.24 $1,023.36
Anthem Traditional 728.41 1,456.82 1,893.87 341.12 682.24 1,023.36
Blue Shield Access+ 836.59 1,673.18 2,175.13 298.21 596.42 894.63
Blue Shield NetValue 704.01 1,408.02 1,830.43 298.21 596.42 894.63
Kaiser 742.72 1,485.44 1,931.07 294.97 589.94 884.91
United Healthcare 764.24 1,528.48 1,987.02 193.33 386.66 579.99
PERS Choice 690.77 1,381.54 1,796.00 307.23 614.46 921.69
PERS Select 661.52 1,323.04 1,719.95 307.23 614.46 921.69
PERSCare 720.04 1,440.08 1,872.10 327.36 654.72 982.08
PORAC 634.00 1,186.00 1,507.00 397.00 791.00 1,264.00
May 9, 2016 E-2
PREMIUMS
2015 PEMHCA Monthly Premiums
Bay Area
Non-Medicare Eligible Medicare Eligible
Medical Plan Single 2-Party Family Single 2-Party Family
Anthem Select $ 662.41 $ 1,324.82 $ 1,722.27 $ 445.38 $ 890.76 $ 1,336.14
Anthem Traditional 827.57 1,655.14 2,151.68 445.38 890.76 1,336.14
Blue Shield Access+ 928.87 1,857.74 2,415.06 352.63 705.26 1,057.89
Blue Shield NetValue 870.60 1,741.20 2,263.56 352.63 705.26 1,057.89
Kaiser 714.45 1,428.90 1,857.57 295.51 591.02 886.53
UnitedHealthcare 850.67 1,701.34 2,211.74 267.41 534.82 802.23
PERS Choice 700.84 1,401.68 1,822.18 339.47 678.94 1,018.41
PERS Select 690.43 1,380.86 1,795.12 339.47 678.94 1,018.41
PERSCare 775.08 1,550.16 2,015.21 368.76 737.52 1,106.28
PORAC 675.00 1,292.00 1,642.00 402.00 802.00 1,281.00
ATTACHMENT A
A - 28
May 9, 2016 E-3
PREMIUMS
2016 PEMHCA Monthly Premiums
Bay Area
Non-Medicare Eligible Medicare Eligible50
Medical Plan Single 2-Party Family Single 2-Party Family
Anthem Select $ 721.79 $ 1,443.58 $ 1,876.65 n/a n/a n/a
Anthem Traditional 855.42 1,710.84 2,224.09 n/a n/a n/a
Blue Shield Access+ 1,016.18 2,032.36 2,642.07 n/a n/a n/a
Blue Shield NetValue 1,033.86 2,067.72 2,688.04 n/a n/a n/a
Health Net SmartCare 808.44 1,616.88 2,101.94 n/a n/a n/a
Kaiser 746.47 1,492.94 1,940.82 $ 297.23 $ 594.46 $ 891.69
UnitedHealthcare 955.44 1,910.88 2,484.14 320.98 641.96 962.94
PERS Choice 798.36 1,596.72 2,075.74 366.38 732.76 1,099.14
PERS Select 730.07 1,460.14 1,898.18 366.38 732.76 1,099.14
PERSCare 889.27 1,778.54 2,312.10 408.04 816.08 1,224.12
PORAC 699.00 1,399.00 1,789.00 442.00 881.00 1,408.00
50 Beginning January 1, 2016, the only non-Kaiser HMO plan to offer a Medicare plan is UnitedHealthcare.
May 9, 2016 E-4
PREMIUMS
PEMHCA Monthly Premium Increases/(Decreases)
Bay Area
Non-Medicare Eligible Medicare Eligible
Medical Plan 2014 2015 2016 2014 2015 2016
Anthem Select n/a 0.8% 9.0% n/a 30.6% n/a
Anthem Traditional n/a 13.6% 3.4% n/a 30.6% n/a
Blue Shield 6.6% 11.0% 9.4% 14.1% 18.2% n/a
Blue Shield NetValue 5.0% 23.7% 18.8% 14.1% 18.2% n/a
Kaiser 11.1% (3.8%) 4.5% 2.3% 0.2% 0.6%
UnitedHealthCare n/a 11.3% 12.3% n/a 38.3% 20.0%
PERS Choice 3.6% 1.5% 13.9% (5.7%) 10.5% 7.9%
PERS Select 35.8% 4.4% 5.7% (5.7%) 10.5% 7.9%
PERSCare (33.5%) 7.6% 14.7% (11.6%) 12.6% 10.7%
PORAC 9.1% 6.5% 3.6% (5.0%) 1.3% 10.0%
ATTACHMENT A
A - 29
May 9, 2016 E-5
DATA SUMMARY
Participant Statistics by Bargaining Unit
June 30, 2015
FCA IAFF M/C PAPOA PMA SEIU UTLM Total
Actives
Count 5 88 188 76 8 544 46 955
Avg Age 48.3 42.0 47.6 38.3 45.6 45.6 50.7 45.3
Avg City Svc 15.8 12.2 9.8 9.1 18.6 10.5 16.5 10.8
Avg PERS Svc 15.9 13.0 11.8 10.3 19.3 11.4 17.6 11.9
Avg Salary $133,943 $88,265 $120,820 $106,911 $160,412 $74,997 $135,404 $91,714
Total Salary51 $670 $7,767 $22,714 $8,125 $1,283 $40,798 $6,229 $87,586
Retirees52:
Count 5 148 298 107 3 441 5 1,007
Avg Age 59.8 68.9 68.7 64.9 52.6 70.3 58.8 68.9
Avg Service
Ret Age 54.9 54.4 57.9 52.2 50.1 59.1 55.3 57.7
Avg Disab
Ret Age 49.9 47.7 49.9 40.6 n/a 48.2 n/a 45.6
51 Actual 2014/15 pay paid for those hired < 7/1/14. New hire pay is annualized. 52 Amount in 000’s. Includes retirees who have waived coverage.
May 9, 2016 E-6
DATA SUMMARY
Participant Statistics by Bargaining Unit
June 30, 2013
FCA IAFF M/C PAPOA PMA SEIU UTLM Total
Actives
Count 4 95 188 75 7 537 42 948
Avg Age 51.5 41.7 48.2 37.6 44.5 45.5 49.7 45.2
Avg City Svc 21.2 11.8 10.2 8.7 19.7 10.6 16.1 10.8
Avg PERS Svc 21.2 12.4 11.8 9.5 20.0 11.3 16.9 11.7
Avg Salary $150,409 $104,373 $106,212 $110,117 $168,881 $68,423 $121,811 $86,271
Total Salary53 $602 $9,915 $19,968 $8,259 $1,182 $36,743 $5,116 $81,785
Retirees54:
Count 3 144 280 112 2 423 4 968
Avg Age 62.6 67.8 67.6 65.3 51.8 69.6 56.0 68.2
Avg Service
Ret Age 58.2 54.4 58.0 53.2 50.2 59.2 55.4 57.8
Avg Disab
Ret Age 49.9 47.1 50.0 40.5 n/a 48.4 n/a 45.3
53 Actual 2012/13 pay paid for those hired < 7/1/12. New hire pay is annualized. 54 Amount in 000’s. Includes retirees who have waived coverage.
ATTACHMENT A
A - 30
May 9, 2016 E-7
DATA SUMMARY
Participant Statistics by CalPERS Pension Category
June 30, 2015
55 Actual 2014/15 pay paid for those hired < 7/1/14. New hire pay is annualized. 56 Includes retirees who have waived coverage.
Miscellaneous Police Fire Total
Actives
Count 776 84 95 955
Average Age 46.3 39.3 42.4 45.3
Average City Service 10.6 10.4 12.5 10.8
Average PERS Service 11.8 11.5 13.2 11.9
Average Salary $89,108 $113,933 $93,347 $91,714
Total Salary (000’s)55 $69,148 $9,570 $8,868 $87,586
Retirees56:
Count 722 121 164 1,007
Average Age 69.6 64.8 68.5 68.9
Avg Service Ret Age 58.8 51.9 54.3 57.7
Avg Disability Ret Age 48.2 40.7 47.9 45.6
May 9, 2016 E-8
DATA SUMMARY
Participant Statistics by CalPERS Pension Category
June 30, 2013
57 Actual 2012/13 pay paid for those hired < 7/1/12. New hire pay is annualized. 58 Includes retirees who have waived coverage.
Miscellaneous Police Fire Total
Actives
Count 765 82 101 948
Average Age 46.4 38.5 42.1 45.2
Average City Service 10.8 10.0 12.2 10.8
Average PERS Service 11.7 10.8 12.8 11.7
Average Salary $80,179 $117,217 $107,291 $86,271
Total Salary (000’s)57 $61,337 $9,612 $10,836 $81,785
Retirees58:
Count 690 121 157 968
Average Age 68.9 64.4 67.6 68.2
Avg Service Ret Age 58.8 52.1 54.5 57.8
Avg Disability Ret Age 48.4 40.6 47.3 45.3
ATTACHMENT A
A - 31
May 9, 2016 E-9
DATA SUMMARY
Medical Plan Participation – June 30, 2015
Retirees59
Medical Plan60 Actives < 65 ≥ 65 Total
Miscellaneous/Safety M S M S M S M S
Anthem Select 5% 1% 1% 0% 0% 0% 0%0%
Anthem Traditional 17% 16% 10% 16% 1% 0% 5%9%
Blue Shield 9% 4% 22% 6% 27% 16% 25%11%
Blue Shield NetValue 2% 4% 1% 3% 0% 0% 0%2%
Kaiser 44% 33% 27% 20% 31% 34% 29%26%
PERS Choice 13% 2% 30% 2% 23% 6% 26%4%
PERS Select 0% 0% 1% 0% 0% 0% 1%0%
PERSCare 2% 1% 4% 3% 15% 32% 10%16%
PORAC 1% 34% 1% 47% 1% 12% 1%32%
UnitedHealthcare 8% 6% 4% 3% 1% 0% 2%2%
Total 100% 100% 100% 100% 100% 100% 100%100%
59 Under 65 only includes employees who retired on or after June 30, 2008; over 65 only includes retirees up to age 72. 60 All Anthem and Blue Shield Medicare retirees are assumed to switch to UnitedHealthcare in 2016 when their current plans
are no longer offered.
May 9, 2016 E-10
DATA SUMMARY
Medical Plan Participation – January 1, 2014
Retirees
Medical Plan Actives < 6561 ≥ 6562 Total
Miscellaneous/Safety M S M S M S M S
Anthem Select 1% 1% 0% 0% 0% 0% 0% 0%
Anthem Traditional 19% 17% 6% 11% 0% 0% 4% 9%
Blue Shield 12% 3% 27% 18% 33% 16% 29% 18%
Blue Shield NetValue 6% 4% 1% 4% 0% 0% 0% 3%
Kaiser 37% 32% 28% 15% 27% 41% 28% 20%
PERS Choice 13% 1% 29% 0% 23% 9% 27% 2%
PERS Select 0% 0% 1% 0% 0% 0% 0% 0%
PERSCare 2% 1% 2% 2% 16% 22% 6% 6%
PORAC 1% 35% 2% 47% 1% 13% 2% 41%
UnitedHealthcare 10% 7% 4% 4% 1% 0% 3% 3%
Total 100% 100% 100% 100% 100% 100% 100% 100%
61 Only includes employees who retired on or after June 30, 2008. 62 Only includes retirees up to age 70.
ATTACHMENT A
A - 32
May 9, 2016 E-11
DATA SUMMARY
Active Medical Coverage - Miscellaneous
Medical Plan Single 2-Party Family Waived Total
Anthem Select 5 7 19 - 31
Anthem Traditional 27 26 62 - 115
Blue Shield 26 12 21 - 59
Blue Shield NetValue 2 3 10 - 15
Kaiser 97 68 132 - 297
PERS Choice 25 28 34 - 87
PERS Select 1 - 1 - 2
PERSCare 3 6 7 - 16
PORAC 2 1 2 - 5
UnitedHealthcare 13 10 32 - 55
Waived - - - 94 94
Total 201 161 320 94 776
% as of June 30, 2015 26% 21% 41% 12% 100%
% as of June 30, 2013 25% 21% 43% 11% 100%
May 9, 2016 E-12
DATA SUMMARY
Active Medical Coverage - Safety
Medical Plan Single 2-Party Family Waived Total
Anthem Select - - 2 - 2
Anthem Traditional 3 4 18 - 25
Blue Shield 2 1 3 - 6
Blue Shield NetValue - - 6 - 6
Kaiser 14 6 33 - 53
PERS Choice - 1 2 - 3
PERS Select - - - - -
PERSCare - - 1 - 1
PORAC 11 7 37 - 55
UnitedHealthcare 4 - 6 - 10
Waived - - - 18 18
Total 34 19 108 18 179
% as of June 30, 2015 19% 11% 60% 10% 100%
% as of June 30, 2013 20% 10% 62% 8% 100%
ATTACHMENT A
A - 33
May 9, 2016 E-13
DATA SUMMARY
Retiree Medical Coverage63 - Miscellaneous
Medical Plan
Single 2-Party Family Waived Total
<65 65+ <65 65+ <65 65+ <65 65+
Anthem EPO 1 - - - - - - - 1
Anthem Select - - 1 - - - - - 1
Anthem Traditional 3 - 5 1 8 1 - - 18
Blue Shield 26 51 17 40 7 5 - - 146
Blue Shield NetValue 1 - - - - - - - 1
Kaiser 31 53 24 53 6 6 - - 173
PERS Choice 30 41 27 36 9 2 - - 145
PERS Select 2 - - - - - - - 2
PERSCare 9 78 5 44 - - - - 136
PORAC 2 - 1 2 - - - - 5
UnitedHealthcare 3 2 4 2 1 - - - 12
Waived - - - - - - 29 53 82
Total 108 225 84 178 31 14 29 53 722
% as of June 30, 2015 42% 48% 33% 38% 13% 3% 12% 11% 100%
% as of June 30, 2013 46% 48% 35% 38% 14% 3% 5% 11% 100%
63 Approximately 69% of retirees have coverage in a Bay Area region plan. The rest are in other state regions or out of state.
May 9, 2016 E-14
DATA SUMMARY
Retiree Medical Coverage64 - Safety
Medical Plan
Single 2-Party Family Waived Total
<65 65+ <65 65+ <65 65+ <65 65+
Anthem EPO - - - - - - - - -
Anthem Select - - - - - - - - -
Anthem Traditional 1 - 1 - 9 - - - 11
Blue Shield 6 14 2 12 7 - - - 41
Blue Shield NetValue - 1 1 - 3 - - - 5
Kaiser 5 14 5 19 12 2 - - 57
PERS Choice 3 7 3 15 3 - - - 31
PERS Select - - - - - - - - -
PERSCare 11 27 4 23 2 1 - - 68
PORAC 6 3 15 4 18 2 - - 48
UnitedHealthcare 1 - 1 - 1 - - - 3
Waived - - - - - - 6 15 21
Total 33 66 32 73 55 5 6 15 285
% as of June 30, 2015 26% 42% 25% 46% 44% 3% 5% 9% 100%
% as of June 30, 2013 31% 43% 27% 43% 40% 4% 2% 11% 100%
64 Approximately 51% of retirees have coverage in a Bay Area region plan. The rest are in other state regions or out of state.
ATTACHMENT A
A - 34
May 9, 2016 E-15
DATA SUMMARY
Retirees Medical Coverage by Age – Miscellaneous
Age Single 2-Party Family Waived Total
Under 50 2 - 1 - 3
50-54 8 2 6 8 24
55-59 38 29 13 13 93
60-64 60 53 11 8 132
65-69 61 59 11 12 143
70-74 69 58 3 6 136
75-79 43 29 - 6 78
80-84 22 24 - 14 60
85 & Over 30 8 - 15 53
Total 333 262 45 82 722
Average Age 70.4 69.3 61.2 72.3 69.6
May 9, 2016 E-16
DATA SUMMARY
0
20
40
60
80
100
120
140
160
<50 50-54 55-59 60-64 65-69 70-74 75-79 80-84 ≥85
Nu
m
b
e
r
Age
Retiree Age Distribution
Miscellaneous
6/30/13 Valuation
6/30/15 Valuation
ATTACHMENT A
A - 35
May 9, 2016 E-17
DATA SUMMARY
Retirees Medical Coverage by Age – Police
Age Single 2-Party Family Waived Total
Under 50 2 1 1 3 7
50-54 6 3 8 - 17
55-59 8 4 8 2 22
60-64 10 4 5 1 20
65-69 4 11 2 3 20
70-74 7 4 - 2 13
75-79 4 1 - - 5
80-84 6 2 - 2 10
85 & Over 5 2 - - 7
Total 52 32 24 13 121
Average Age 66.8 67.8 56.8 62.2 64.8
May 9, 2016 E-18
DATA SUMMARY
0
5
10
15
20
25
<50 50-54 55-59 60-64 65-69 70-74 75-79 80-84 ≥85
Nu
m
b
e
r
Age
Retiree Age Distribution
Police
6/30/13 Valuation
6/30/15 Valuation
ATTACHMENT A
A - 36
May 9, 2016 E-19
DATA SUMMARY
Retirees Medical Coverage by Age – Fire
Age Single 2-Party Family Waived Total
Under 50 - 1 4 - 5
50-54 - 3 12 - 15
55-59 5 10 15 - 30
60-64 2 6 2 - 10
65-69 6 13 1 2 22
70-74 10 13 2 2 27
75-79 14 14 - 1 29
80-84 6 10 - 2 18
85 & Over 4 3 - 1 8
Total 47 73 36 8 164
Average Age 74.0 70.4 55.8 75.9 68.5
May 9, 2016 E-20
DATA SUMMARY
0
5
10
15
20
25
30
35
<50 50-54 55-59 60-64 65-69 70-74 75-79 80-84 ≥85
Nu
m
b
e
r
Age
Retiree Age Distribution
Fire 6/30/13 Valuation
6/30/15 Valuation
ATTACHMENT A
A - 37
May 9, 2016 E-21
DATA SUMMARY
Retirees Medical Coverage by Age – Total
Age Single 2-Party Family Waived Total
Under 50 4 2 6 3 15
50-54 14 8 26 8 56
55-59 51 43 36 15 145
60-64 72 63 18 9 162
65-69 71 83 14 17 185
70-74 86 75 5 10 176
75-79 61 44 - 7 112
80-84 34 36 - 18 88
85 & Over 39 13 - 16 68
Total 432 367 105 103 1,007
Average Age 70.5 69.3 58.4 71.3 68.9
May 9, 2016 E-22
DATA SUMMARY
0
20
40
60
80
100
120
140
160
180
200
<50 50-54 55-59 60-64 65-69 70-74 75-79 80-84 ≥85
Nu
m
b
e
r
Age
Retiree Age Distribution
Total
6/30/13 Valuation
6/30/15 Valuation
ATTACHMENT A
A - 38
May 9, 2016 E-23
DATA SUMMARY
Actives by Age and Service – Miscellaneous
City Service
Age < 1 1-4 5-9 10-14 15-19 20-24 ≥ 25 Total
< 25 4 4 - - - - - 8
25-29 17 26 1 - - - - 44
30-34 13 45 23 3 - - - 84
35-39 10 32 32 28 5 - - 107
40-44 10 17 18 27 17 3 - 92
45-49 11 22 23 23 25 10 3 117
50-54 7 12 28 24 37 27 22 157
55-59 3 15 18 13 22 8 14 93
60-64 1 4 12 11 11 10 4 53
≥ 65 - 1 3 3 4 6 4 21
Total 76 178 158 132 121 64 47 776
May 9, 2016 E-24
DATA SUMMARY
Actives by Age and Service – Police
City Service
Age < 1 1-4 5-9 10-14 15-19 20-24 ≥ 25 Total
< 25 - 1 - - - - - 1
25-29 1 3 1 - - - - 5
30-34 - 8 13 1 - - - 22
35-39 1 5 8 7 3 - - 24
40-44 - 1 2 4 4 1 - 12
45-49 - 1 1 2 1 5 1 11
50-54 - - 1 1 2 1 1 6
55-59 - - 1 - 1 - 1 3
60-64 - - - - - - - -
≥ 65 - - - - - - - -
Total 2 19 27 15 11 7 3 84
ATTACHMENT A
A - 39
May 9, 2016 E-25
DATA SUMMARY
Actives by Age and Service – Fire
City Service
Age < 1 1-4 5-9 10-14 15-19 20-24 ≥ 25 Total
< 25 - - - - - - - -
25-29 - 9 3 - - - - 12
30-34 - 5 2 2 - - - 9
35-39 - 6 4 3 - - - 13
40-44 - 3 3 5 8 - - 19
45-49 - - - 8 9 8 1 26
50-54 - 1 1 3 3 4 1 13
55-59 - - - - - 1 - 1
60-64 - - - - - - 1 1
≥ 65 - - - - - 1 - 1
Total - 24 13 21 20 14 3 95
May 9, 2016 E-26
DATA SUMMARY
Actives by Age and Service – Total
City Service
Age < 1 1-4 5-9 10-14 15-19 20-24 ≥ 25 Total
< 25 4 5 - - - - - 9
25-29 18 38 5 - - - - 61
30-34 13 58 38 6 - - - 115
35-39 11 43 44 38 8 - - 144
40-44 10 21 23 36 29 4 - 123
45-49 11 23 24 33 35 23 5 154
50-54 7 13 30 28 42 32 24 176
55-59 3 15 19 13 23 9 15 97
60-64 1 4 12 11 11 10 5 54
≥ 65 - 1 3 3 4 7 4 22
Total 78 221 198 168 152 85 53 955
ATTACHMENT A
A - 40
May 9, 2016 E-27
DATA SUMMARY
0
20
40
60
80
100
120
140
160
180
<25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 ≥65
Nu
m
b
e
r
Age
Active Age Distribution
Miscellaneous 6/30/13 Valuation
6/30/15 Valuation
May 9, 2016 E-28
DATA SUMMARY
0
50
100
150
200
250
300
0-4 5-9 10-14 15-19 20-24 >25
Nu
m
b
e
r
Service
Active Service Distribution
Miscellaneous
6/30/13 Valuation
6/30/15 Valuation
ATTACHMENT A
A - 41
May 9, 2016 E-29
DATA SUMMARY
0
5
10
15
20
25
30
<25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 ≥65
Nu
m
b
e
r
Age
Active Age Distribution
Police
6/30/13 Valuation
6/30/15 Valuation
May 9, 2016 E-30
DATA SUMMARY
0
5
10
15
20
25
30
0-4 5-9 10-14 15-19 20-24 >25
Nu
m
b
e
r
Service
Active Service Distribution
Police
6/30/13 Valuation
6/30/15 Valuation
ATTACHMENT A
A - 42
May 9, 2016 E-31
DATA SUMMARY
0
5
10
15
20
25
30
35
<25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 ≥65
Nu
m
b
e
r
Age
Active Age Distribution
Fire
6/30/13 Valuation
6/30/15 Valuation
May 9, 2016 E-32
DATA SUMMARY
0
5
10
15
20
25
30
0-4 5-9 10-14 15-19 20-24 >25
Nu
m
b
e
r
Service
Active Service Distribution
Fire
6/30/13 Valuation
6/30/15 Valuation
ATTACHMENT A
A - 43
May 9, 2016 E-33
DATA SUMMARY
0
20
40
60
80
100
120
140
160
180
200
<25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 ≥65
Nu
m
b
e
r
Age
Active Age Distribution
Total
6/30/13 Valuation
6/30/15 Valuation
May 9, 2016 E-34
DATA SUMMARY
0
50
100
150
200
250
300
350
0-4 5-9 10-14 15-19 20-24 >25
Nu
m
b
e
r
Service
Active Service Distribution
Total
6/30/13 Valuation
6/30/15 Valuation
ATTACHMENT A
A - 44
May 9, 2016 E-35
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
Valuation Date June 30, 2013
Fiscal Years 2014/15 &
2015/16 ARCs
(end of year)
1 year lag
June 30, 2015
GASB 45 ARC for Fiscal
Year 2016/17. ADC65 for
Fiscal Year 2017/18.
(end of year)
1 year lag
Funding Policy Full Pre-funding through
CalPERS trust (CERBT)
asset allocation #1
Same
General Inflation 3.00% Same
Discount Rate 7.61% (no Margin for
Adverse Deviation)
7.25%, net of expenses (based
on CERBT Fund 1)
65 Actuarially Determined Contribution
May 9, 2016 E-36
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
Payroll Increases Aggregate Increases – 3.25%
Merit Increases – CalPERS
1997-2007 Experience Study
Aggregate Increases – 3.25%
Merit Increases – CalPERS
1997-2011 Experience Study
Increase to
Dollar Caps for
SEIU Group 3
½ of Medical Trend, not less
than assumed inflation
(3.0%). Increase is for
purposes of financial
projection only and does not
imply any obligation to
increase the cap in the future
Same
Now also applies to
Mgmt/Conf Group 3
ATTACHMENT A
A - 45
May 9, 2016 E-37
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
Medical Trend Increase from Prior Year
Year Non-Medicare Medicare
2013 Premiums
2014 Premiums
2015 8.0%8.3%
2016 7.5%7.8%
2017 7.0%7.2%
2018 6.5%6.7%
2019 6.0%6.1%
2020 5.5%5.6%
2021+ 5.0%5.0%
Increase from Prior Year
Year Non-Medicare Medicare
2013 n/a
2014 n/a
2015 Premiums
2016 Premiums
2017 7.0% 7.2%
2018 6.5% 6.7%
2019 6.0% 6.1%
2020 5.5% 5.6%
2021+ 5.0% 5.0%
ACA Excise Tax N/A Estimate by 2% load on cash
subsidy
Mortality,
Termination,
Disability
CalPERS 1997-2007
Experience Study
Mortality improvement
projection Scale AA
CalPERS 1997-2011
Experience Study
Mortality improvement Scale
MP-14 modified to converge
to ultimate improvement in
2022
May 9, 2016 E-38
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
Retirement CalPERS 1997-2007
Experience Study
Misc Fire & Police
Tier 1 2.7%@55 3%@50
Exp. RA66 59.3 55.7 & 54.5
Tier 2 2%@6067 3%@5568
Exp. RA 61.1 n/a & 59.7
PEPRA69 2.5%@67 2.7%@57
Exp. RA 61.0 n/a & 56.8
CalPERS 1997-2011
Experience Study
Misc Fire & Police
Tier 1 2.7%@55 3%@50
Exp. RA65 58.6 56.7 & 55.0
Tier 2 2%@6067 3%@5568
Exp. RA 60.9 n/a & 57.3
PEPRA69 2.5%@67 2.7%@57
Exp. RA 60.9 n/a & 57.7
66 Retirement Age 67 Applies to non-PEPRA (Classic) employees hired after 7/17/2010 68 Applies to non-PEPRA (Classic) Police employees hired after 12/7/2012 and Fire employees hired after 6/7/2012 69 Applies to employees hired after 1/1/2013 and considered “New Members” under PEPRA
ATTACHMENT A
A - 46
May 9, 2016 E-39
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
Medical Plan at
Retirement &
Retirees Attaining
age 65
Miscellaneous: <65 65+
Anthem Tradition 5% 0%
Blue Shield 25% 30%
Kaiser 30% 25%
PERS Choice 30% 25%
PERSCare 5% 20%
United HC 5% 0%
Safety: <65 65+
Anthem Tradition 10% 0%
Blue Shield 20% 20%
Blue Shield NV 5% 0%
Kaiser 15% 35%
PERS Choice 0% 10%
PERSCare 0% 25%
PORAC 45% 10%
United HC 5% 0%
Miscellaneous: <65 65+
Anthem Tradition 10% 0%
Blue Shield 20% 30%
Kaiser 30% 30%
PERS Choice 30% 25%
PERSCare 5% 15%
United HC70 5% 0%
Safety: <65 65+
Anthem Tradition 15% 0%
Blue Shield 10% 20%
Blue Shield NV 5% 0%
Kaiser 20% 35%
PERS Choice 0% 5%
PERSCare 0% 30%
PORAC 45% 10%
United HC70 5% 0%
70 Beginning January 1, 2016, all retirees in Anthem and Blue Shield Medicare plans are assumed to move to UHC Medicare.
May 9, 2016 E-40
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
Participation at
Retirement
Groups 1 & 2: already
retired
Group 3: 90%
Group 4: 85%
Groups 3 & 4: 90%
Based on Plan Experience71
Spousal
Coverage at
Retirement
Currently covered: based on
current elections
Currently waived: 80%
Same
Family Coverage
at Retirement
Actives
Misc : 15% until age 65
Safety : 40% until age 65
Retirees: based on current
elections until age 65
Same
Based on Plan Experience
71 Actual participation percentages for Group 3 since 6/30/13 are 73% Miscellaneous and 93% Safety, or 78% overall. We
recommend continued monitoring but do not update this year. Group 4 has very little actual experience, but those with less
than 10 years service will receive no benefit at all (assumption applies only to those with more than 10 years service).
ATTACHMENT A
A - 47
May 9, 2016 E-41
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
Medicare
Eligible Rate
Actives hired < 4/1/86:
Miscellaneous – 80%
Safety – 90%
Actives hired > 4/1/86: 100%
Retirees < 65: 90%
Everyone eligible for
Medicare will elect Part B
coverage
Actives and retirees hired <
4/1/86:
Miscellaneous – 80%
Safety – 90%
Actives and retirees hired >
4/1/86: 100%
Retirees < 65 with unknown
hire date: 90%
Everyone eligible for
Medicare will elect Part B
coverage
Waived Retiree
Re-election
N/A Pre-65 – 20% re-elect at age
65
Post-65 – 0%
Surviving Spouse
Participation
100% Same
May 9, 2016 E-42
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
Sample Medical
Claims Costs
2014
Sample estimated monthly claims costs:
Bay Area – Non-Medicare Eligible
Kaiser (HMO) PERS Choice (PPO) PORAC
Age M F M F M F
55 $852 $862 $737 $712 $750 $725
60 1,088 1,017 885 818 898 832
65 1,374 1,237 1,099 988 1,117 1,004
70 1,629 1,430 1,303 1,142 1,323 1,160
75 1,946 1,683 1,557 1,344 1,581 1,365
80 2,259 1,939 1,807 1,548 1,836 1,572
85 2,546 2,187 2,036 1,746 2,068 1,774
Bay Area – Medicare Eligible
Kaiser (HMO) PERS Choice (PPO) PORAC
Age M F M F M F
65 $283 $263 $290 $304 $391 $409
70 266 254 276 294 372 396
75 333 298 312 324 420 437
80 357 317 322 334 434 450
85 356 316 318 330 428 445
ATTACHMENT A
A - 48
May 9, 2016 E-43
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
Sample Medical
Claims Costs
2016
Sample estimated monthly claims costs:
Bay Area – Non-Medicare Eligible
Kaiser (HMO) PERS Choice (PPO) PORAC
Age M F M F M F
55 $856 $866 $851 $823 $826 $799
60 1,093 1,023 1,023 946 990 917
65 1,381 1,244 1,270 1,142 1,231 1,107
70 1,637 1,438 1,506 1,320 1,459 1,279
75 1,956 1,691 1,799 1,553 1,743 1,505
80 2,271 1,948 2,088 1,789 2,024 1,734
85 2,559 2,198 2,353 2,018 2,280 1,956
Bay Area – Medicare Eligible
Kaiser (HMO) PERS Choice (PPO) PORAC
Age M F M F M F
65 $285 $265 $346 $362 $435 $456
70 268 256 329 351 414 441
75 336 301 372 387 467 486
80 360 319 384 399 483 501
85 358 318 379 394 477 495
May 9, 2016 E-44
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
CalPERS Service City service plus ½ service
between age 30 and City hire
date
Actual data
Spouse Age Actives – Males 3 years older
than females
Retirees – Males 3 years
older than females if spouse
birth date not available
Same
Missing Fund Retirees missing fund
assumed to be based on
current active percentages:
90% GF, 5% Elec, and 5%
UTL72
Retirees missing fund
assumed to be based on
current active percentages:
75% GF, 15% Elec, and 10%
UTL72
ATTACHMENT A
A - 49
May 9, 2016 E-45
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
Missing
Bargaining Unit
Retirees missing bargaining
unit assumed to have the
same BU as in the prior
valuation if available;
otherwise, assumed to be
SEIU unless fund designates
Police (PAPOA) or Fire
(IAFF)72
Same
Missing
Department
Liability for retirees assumed
to be 90% GF from above
assumption allocated
proportionately across all
Departments73
Liability for retirees assumed
to be 75% GF from above
assumption allocated
proportionately across all
Departments73
72 Fewer than 10% of retirees have missing Bargaining Unit, Fund or Department. Does not affect results, but does affect
internal cost allocations used by the City. 73 Fewer than 10% of retirees have missing Bargaining Unit, Fund or Department. Does not affect results, but does affect
internal cost allocations used by the City.
May 9, 2016 E-46
ACTUARIAL ASSUMPTIONS
June 30, 2013 Valuation June 30, 2015 Valuation
Future New
Participants
None – Closed Group Same
ATTACHMENT A
A - 50
May 9, 2016 E-47
RESULTS BY FUND
Actuarial Obligations – June 30, 2015
(Amounts in 000’s)
AAL Assets UAAL
Airport $ 209 $ 4 $ 205
CIP 3,036 1,114 1,923
Elec74 28,519 10,014 18,505
Gas74 10,628 3,994 6,634
GF 155,343 47,751 107,592
ISF – Technology 4,382 1,842 2,540
ISF – Vehicle 1,840 1,142 698
ISF – Printing & Mailing 723 354 369
Refuse 6,026 2,589 3,437
Storm Drain 1,920 606 1,314
Water74 5,546 2,983 2,563
WWC74 3,038 1,563 1,474
WWT 13,585 4,622 8,963
Total 234,795 78,578 156,217
74 AAL for UTL employees allocated to Elec, Gas, Water, and WWC in proportion to each Fund’s AAL
May 9, 2016 E-48
RESULTS BY FUND
Annual Required Contribution (ARC)
(Amounts in 000’s)
2016/17 2017/1875
Airport $ 34 $ 35
CIP 250 258
Elec74 2,077 2,152
Gas74 723 748
GF 10,866 11,247
ISF – Technology 342 353
ISF – Vehicle 130 134
ISF – Printing & Mailing 42 43
Refuse 291 302
Storm Drain 137 142
Water74 302 313
WWC74 190 197
WWT 981 1,014
Total 16,365 16,938
75 ADC for 2017/18.
ATTACHMENT A
A - 51
May 9, 2016 E-49
RESULTS BY GF DEPARTMENT
Actuarial Obligations – June 30, 2015
(Amounts in 000’s)
AAL Assets76 UAAL
ASD $ 9,542 $ 2,933 $ 6,609
ATT 1,950 600 1,350
AUD 322 99 223
CLK 821 252 569
COU 1,269 390 879
CSD 17,288 5,314 11,974
FIR 46,775 14,378 32,397
HRD 2,871 883 1,988
LIB 5,870 1,804 4,066
MGR 2,089 642 1,447
PLA 7,863 2,417 5,446
POL 43,702 13,434 30,268
PWD 14,981 4,605 10,376
Total 155,343 47,751 107,592
76 Assets allocated in proportion to AAL.
May 9, 2016 E-50
RESULTS BY GF DEPARTMENT
Annual Required Contribution (ARC)
(Amounts in 000’s)
2016/17 2017/1877
ASD $ 677 $ 704
ATT 149 153
AUD 55 57
CLK 55 57
COU 53 54
CSD 1,283 1,328
FIR 2,948 3,050
HRD 175 182
LIB 539 556
MGR 187 193
PLA 520 538
POL 3,150 3,260
PWD 1,075 1,115
Total 10,866 11,247
77 ADC for 2017/18.
ATTACHMENT A
A - 52
May 9, 2016 E-51
DEFINITIONS
GASB 45
Accrual
Accounting
Project future employer-provided benefit cash flows for current active
employees and current retirees
Discount projected cash flow to valuation date using discount rate (assumed
return on assets used to pay benefits) and other actuarial assumptions to
determine present value of projected future benefits (PVB)
Allocate PVB to past, current, and future periods using the actuarial cost
method
Actuarial cost method used for this valuation is the Entry Age Normal Cost
method which determines Normal Cost as a level percentage of payroll (same
method used by CalPERS)
Normal Cost is amount allocated to current fiscal year
Actuarial Accrued Liability (AAL) is amount allocated to prior service with
employer
Unfunded AAL (UAAL) is AAL less plan assets pre-funded in a segregated
and restricted trust
PayGo Cost Cash subsidy is the pay-as-you-go employer benefit payments for retirees
Implied subsidy is the difference between the actual cost of retiree benefits
and retiree premiums subsidized by active employee premiums
May 9, 2016 E-52
DEFINITIONS
Present Value of Benefits
Present Value of Benefits
(With Plan Assets)
Unfunded
Actuarial Accrued
Future
Normal
Costs
Normal Cost
Assets
Present Value of Benefits
(Without Plan Assets)
Unfunded Actuarial
Accrued Liability
Future
Normal
Costs
Normal Cost
ATTACHMENT A
A - 53
May 9, 2016 E-53
DEFINITIONS
Annual
Required
Contribution
(ARC)
“Required contribution” for the current period including:
Normal Cost
Amortization of:
- Initial UAAL
- AAL for plan, assumption, and method changes
- Experience gains/losses (difference between expected and actual)
- Contribution gains/losses (difference between ARC and contributions)
ARC in excess of pay-as-you-go costs not required to be funded
Net OPEB
Obligation
(NOO)
Net OPEB Obligation is the accumulated amounts expensed but not funded
Net OPEB Asset if amounts funded exceed those expensed
Annual OPEB
Cost (AOC)
Expense for the current period including:
ARC
Interest on NOO
Adjustment of NOO
NOO adjustment prevents double counting of expense since ARCs include an
amortization of prior contribution gains/losses previously expensed
ATTACHMENT A
A - 54
City of Palo Alto (ID # 6657)
Finance Committee Staff Report
Report Type: Action Items Meeting Date: 4/19/2016
City of Palo Alto Page 1
Council Priority: City Finances
Summary Title: Storm Drain Fee Increase for FY2017
Title: Adoption of a Resolution Amending Utility Rate Schedule D -1 (Storm
and Surface Water Drainage) Reflecting a 3.2 Percent Consumer Price Index
Rate Increase to $13.03 Per Month Per Equivalent Residential Unit for Fiscal
Year 2017
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that the Finance Committee recommend that Council adopt
the attached resolution (Attachment A) amending Utility Rate Schedule D-1
(Storm and Surface Water Drainage), to implement a 3.2% rate increase
consistent with the applicable Consumer Price Index – Urban Consumers,
increasing the monthly charge per Equivalent Residential Unit by $0.40, from
$12.63 to $13.03 for Fiscal Year 2017.
Background
On April 26, 2005, a majority of Palo Alto property owners approved a ballot
measure authorizing an increase in the monthly Storm Drainage Fee to fund
storm drain capital improvements and augmented maintenance. Council certified
the results of the ballot proceeding on May 9, 2005. The approved ballot
measure contained an annual fee escalator clause that permits the Council to
raise the Storm Drainage Fee each year to account for inflationary cost increases.
Specifically, the ballot measure stated:
ATTACHMENT B
B - 1
City of Palo Alto Page 2
“In order to offset the effects of inflation on labor and material costs, the
proposed fee increase would be subject to annual increases beyond the initial
$10.00 per Equivalent Residential Unit (ERU) rate as of July 1 of each year, starting
in 2006. Inflation adjustments would be based on the lesser of the local rate of
inflation (based on the change in the Consumer Price Index [CPI-U] for the San
Francisco-Oakland-San Jose CMSA, published by the United States Department of
Labor, Bureau of Labor Statistics) or 6 percent. The City Council would have the
authority and discretion to implement inflation adjustments on an annual basis as
part of the City budget process.”
On May 9, 2005, Council adopted a resolution increasing the Storm Drainage rate
schedule to $10.00 per month per ERU, effective June 1, 2005. The Council
approved rate for FY 2016 is $12.63 per month per ERU.
Discussion
Staff has determined from Bureau of Labor Statistics records that the CPI-U for
the San Francisco-Oakland-San Jose CMSA increased by 3.2% between December
2014 and December 2015. As the CPI-U rate is substantially lower than 6%,
consistent with the ballot measure, staff recommends that the Storm Drainage
Fee be increased by the CPI-U in order to keep fund revenues consistent with
general cost increases and to provide sufficient funds for planned storm drain
capital expenditures. In particular, the increased revenue is needed to cover
construction costs for the remaining storm drain capital improvement projects.
Approval of the rate increase will help to ensure that staff can complete all seven
of the capital projects specified in the 2005 ballot measure before the fee
increase sunsets in June 2017. A table summarizing projected rate increases for
all of the City’s utilities for the period of FY 2017 through FY 2021 is attached for
reference (Attachment B). In order to enact the Storm Drainage Fee increase,
Council must adopt the attached resolution amending Utility Rate Schedule D-1
(Storm and Surface Water Drainage). The new rate for the Storm Drainage Fee
will be $13.03 per month per ERU. Single-family residential properties are billed a
monthly amount based on parcel size, in accordance with the following table:
ATTACHMENT B
B - 2
City of Palo Alto Page 3
RESIDENTIAL RATES (Single-Family Residential Properties)
PARCEL SIZE (sq. ft.) ERU FY2016 RATE FY2017 RATE
< 6,000 sq. ft. 0.8 ERU $10.11/month $10.43/month
6,000-11,000 sq. ft. 1.0 ERU $12.63/month $13.03/month
> 11,000 sq. ft. 1.4 ERU $17.68/month $18.25/month
Commercial, industrial, institutional, and multi-family residential properties are
billed on a monthly basis at a rate of 1.0 ERU for each 2,500 square feet of
impervious surface on the parcel.
Resource Impact
The 3.2 percent increase in rates is expected to increase annual revenue to the
Storm Drainage Fund by approximately $194,000 and, if recommended, will be
included in the Public Works Department Storm Drainage Fund FY 2017 proposed
operating budget. When the storm drain rates approved by property owners via
the 2005 ballot measure sunset on June 1, 2017, rates will revert to $4.25 per
month per ERU unless higher rates are approved through a new ballot measure
process. Staff has been working with a city manager-appointed blue ribbon
committee of Palo Alto residents to develop the scope and timing of a storm drain
ballot measure to be presented to property owners later this year.
Timeline
The Storm Drainage Fee increase will take effect on July 1, 2016. Storm drain
rates will revert to $4.25 per month per ERU on June 1, 2017 unless higher rates
are approved through a new ballot measure process.
Environmental Review
Adoption of changes to utility rate schedules does not represent a project under
the California Environmental Quality Act (CEQA).
Courtesy Copies
Storm Drain Oversight Committee
Palo Alto Chamber of Commerce
Attachments:
A - Resolution Amending Utility Rate Schedule D-1 (Storm and Surface Water Drainage)
(PDF)
ATTACHMENT B
B - 3
City of Palo Alto Page 4
B - Overview of Projected City of Palo Alto Utility Rate Increases (PDF)
ATTACHMENT B
B - 4
NOT YET APPROVED
1
160229 sh 0140157
Resolution No. ______
Resolution of the Council of the City of Palo Alto Amending Utility Rate
Schedule D-1 (Storm and Surface Water Drainage) to Increase Storm
Drain Rates by 3.2% Per Month Per Equivalent Residential Unit for
Fiscal Year 2017
The Council of the City of Palo Alto RESOLVES, as follows:
SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rate Schedule D-1 (Storm and Surface Water Drainage) is hereby amended to read in
accordance with sheet D-1-1, attached hereto and incorporated herein. The foregoing Utility
Rate Schedule, as amended, shall become effective July 1, 2016.
SECTION 2. The Council finds that this rate increase is being imposed to offset the
effects of inflation on labor and material costs pursuant to the annual inflationary fee escalator
provision of the Storm Drainage Fee ballot measure, which was approved by a majority of Palo
Alto property owners on April 26, 2005.
SECTION 3. The Council finds that the revenue derived from the authorized
adoption enumerated herein shall be used only for the purpose set forth in Article VII, Section
2, of the Charter of the City of Palo Alto.
//
//
//
//
//
//
//
//
//
//
//
ATTACHMENT B
B - 5
NOT YET APPROVED
2
160229 sh 0140157
SECTION 4. The Council finds that modification and approval of this change to the
Utility Rate Schedule D-1 (Storm and Surface Water Drainage) for the purpose of meeting
operating expenses is statutorily exempt from California Environmental Quality Act (CEQA)
review, pursuant to Public Resources Code Section 15273(a).
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ _____________________________
City Attorney City Manager
_____________________________
Director of Public Works
_____________________________
Director of Administrative
Services
ATTACHMENT B
B - 6
GENERAL STORM AND SURFACE WATER DRAINAGE
UTILITY RATE SCHEDULE D-1
CITY OF PALO ALTO UTILITIES
Issued by the City Council
Effective 7-1-2016
Supersedes Sheet No.D-1-1 dated 7-1-2015 Sheet No. D-1-1
A. APPLICABILITY:
This schedule applies to all storm and surface water drainage service, excepting only those
users and to the extent that they are constitutionally exempt under the Constitution of the
State of California or who are determined to be exempt pursuant to Rule and Regulation 25. B. TERRITORY:
Inside the incorporated limits of the city of Palo Alto and land owned or leased by the city.
C. RATES: Per Month:
Storm Drainage Fee per Equivalent Residential Unit (ERU) ........................................................ $13.03
D. SPECIAL NOTES:
1. An Equivalent Residential Unit (ERU) is the basic unit for computation of storm
drainage fees for residential and non-residential customers. All single-family residential
properties shall be billed the number of ERUs specified in the following table, based on
an analysis of the relationship between impervious area and lot size for Palo Alto
properties.
RESIDENTIAL RATES (Single-Family Residential Properties
PARCEL SIZE (sq.ft.) ERU
<6,000 sq.ft. 0.8 ERU
6,000 - 11,000 sq.ft. 1.0 ERU
>11,000 sq.ft. 1.4 ERU
All other properties will have ERU's computed to the nearest 1/10 ERU using the
following formula:
No. of ERU = Impervious Area (Sq. Ft.)
2,500 Sq. Ft. 2. For more details on the storm drainage fee, refer to Utilities Rule and Regulation 25.
{End}
ATTACHMENT B
B - 7
Attachment B
Rate Adjustments for All Utilities: FY 2017 Proposed, FY 2018 to FY 2021 Projected
Utility FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Electric Utility 11% 10% 2% 0% 1%
Gas Utility 8% 9% 7% 1% 1%
Wastewater 9% 10% 9% 7% 6%
Water Utility 6% 9% 9% 6% 2%
Refuse1 9% 8% 5% 3% 3%
Storm Drain 3.2% 2% to 3% 2% to 3% 2% to 3% 2% to 3%
Bill Change (%) 8% 9% 6% 4% 2%
($/mo) $20.80 $23.45 $18.49 $11.16 $7.77
ATTACHMENT B
B - 8
Storm Drain Oversight Committee
MEMORANDUM
Date: May 4, 2016
To: Honorable Finance Committee of the Palo Alto City Council
From: Members of the Storm Drain Oversight Committee
Subject: Review of the Proposed FY 2017 Storm Drainage Fund budget
As directed by the City Council, we have reviewed the proposed Storm Drainage Fund budget for
fiscal year 2017 and compared it with the provisions of the Storm Drainage Fee increase approved by
Palo Alto property owners in 2005. Based on this review, we find that the proposed budget reflects the
increased fees, CIP projects, and operating expenditures approved in the ballot measure.
The Committee met to discuss the proposed budget on Wednesday, May 4, 2016. Prior to the meeting, Storm Drainage staff provided a packet of informational materials about the approved ballot measure and the proposed budget for the Committee’s review. During the meeting, staff presented information regarding the Storm Drainage Fund operating and capital budgets and answered questions from the
Committee members.
Based upon our review of the materials provided to us by Storm Drainage staff, we find that the
attached matrix describing the proposed use of the Storm Drainage Fee increase for FY 2017 and the
table providing a side-by-side comparison of the ballot measure and the proposed budget accurately
describe the relationship between the budget and the ballot measure. In addition, the attached
spreadsheet summarizes the status of the Storm Drainage Fund capital improvement program
implementation to-date. Staff and the Committee concur that there will be adequate funding generated
by the Storm Drainage Fee increase authorized through the 2005 ballot measure to fund the seven
capital improvement projects specified for implementation in the ballot measure, with the exception of
the Loma Verde/Louis Road storm drain trunkline improvements element of the Matadero Creek
Storm Water Pump Station Upgrade Project, which will be deferred to the new package of capital
improvements that will be proposed under the new ballot measure for storm drain funding. With this
exception, the Matadero Creek Storm Water Pump Station Upgrade Project will be completed within
the 2005 ballot measure funds.
Attachments
ATTACHMENT C
C - 1
Proposed Use of Storm Drainage Fee Increase for FY 2017
Line Item Revenue Expenditures
Fee Increase Revenue
SD Fee Increase $4,450,405
Capital Improvements
and Program Enhancements
A. One-time SD CIP Projects
San Francisquito Creek Pump Station $0
Channing/Lincoln Storm Drain $0
Southgate Neighborhood Storm Drains $0
Gailen/Bibbits SD Improvements $0
Clara Drive SD Improvements $0
Matadero Creek Pump Station & Trunks $1,990,000
Alma Street SD Improvements $0
B. Enhanced Maintenance
SD Replacement/Rehabilitation CIP $660,000
Augmented SD Maintenance $168,691
C. Innovative SD Projects $159,000
D. Augmented Storm Water Quality $223,700
E. Capital Improvement Program Staffing
New CIP Engineer $153,504
CIP Support Staff $34,024
Surveyor $16,460
SUBTOTALS $4,450,405 $3,405,379
From Storm Drainage Fund Reserves $543,927
Other storm drain expenses previously
covered by General Fund subsidy $1,588,953
TOTALS $4,994,332 $4,994,332
Prepared for the Storm Drain Oversight Committee
by Rajeev Hada and Gina Magliocco 05/04/2016
ATTACHMENT C
C - 2
Approved Storm Drainage Fee Increase Ballot Measure vs.
Preliminary FY 2017 Storm Drainage Fund Budget
BALLOT MEASURE
1. Implementation of seven (7) high-priority storm drain capital improvement projects.
2. $ 500,000 annually (adjusted annually
for inflation) for storm drain system repair and rehabilitation.
3. $ 90,000 annually for augmented storm
drain system maintenance.
4. $ 125,000 annually (adjusted annually
for inflation) for innovative projects to
reduce storm water runoff and pollutant levels.
5. $ 100,000 annually (adjusted annually
for salary increases) to fund storm water
quality protection activities formerly funded by the Wastewater Treatment Fund.
6. $ 115,000 annually (adjusted annually
for salary increases) for an engineer to assist with implementation of storm drain capital improvement projects.
7. Annual adjustment of fees by local CPI increase or 6%, whichever is lower.
8. Pre-payment of Storm Drainage Fees for
City-owned properties to accelerate implementation of storm drain capital
improvement projects.
PROPOSED BUDGET
1. $1,990,000 for Matadero Pump Station Improvements (CIP SD-13003).
2. $ 660,000 for Storm Drain System
Replacement and Rehabilitation (CIP SD-06101)
3. $168,691 in additional funding for Storm
Drain In-House Maintenance:
($ 90,000 for supplies & materials + 0.45 additional FTE staffing).
4. $ 159,000 allocated to Storm Water
Rebate Program for rain barrels, cisterns,
permeable pavement, and green roofs.
5. $223,700 in additional funding for Storm
Water Quality Protection (0.88
additional FTE staffing, $39,000 for non-salary expenses, $50,000 for Green Infrastructure Plan.
6. $203,988 in additional funding for
Engineer position (0.9 FTE), CIP support staff (0.3 FTE), and Surveyor (0.12 FTE) funded in Storm Drain
System Improvements.
7. Proposed 3.2% increase per the change in the CPI for San Francisco-Oakland-San Jose for calendar year 2015.
8. No pre-payment for FY 2016; all
scheduled pre-payments by General Fund have been made.
ATTACHMENT C
C - 3
Proposed Storm Drain Capital Spending Plan
SF Creek
Pump
Station
Gailen /
Bibbits Alma Street
Channing
Lincoln
Trunk
Matadero
PS and
Trunks Clara Drive
Southgate
Neighborhood
YEARLY
PROJECT
Year FY $4,500,000 $650,000 $1,500,000 $4,600,000 $3,000,000 $900,000 $2,000,000 TOTAL
1 FY 2005-06 $900,000 $650,000 $180,000 $1,730,000
2 FY 2006-07 $735,000 $735,000
3 FY 2007-08 $7,535,000 ($915,000)$6,620,000
4 FY 2008-09 $700,000 $785,000 $1,485,000
5 FY 2009-10 $820,000 $820,000
6 FY 2010-11 $895,000 $895,000
7 FY 2011-12 $1,590,000 $140,000 $1,730,000
8 FY 2012-13 $1,680,000 $860,000 $2,540,000
9 FY 2013-14 $1,430,000 $315,000 $750,000 $1,026,271 $3,521,271
10 FY 2014-15 $1,840,000 $1,840,000
11 FY 2015-16 $1,915,000 $1,915,000
12 FY 2016-17 $1,990,000 $1,990,000
$9,135,000 $650,000 $785,000 $6,415,000 $6,060,000 $750,000 $2,026,271 $25,821,271
NOTES: 1. Cost figures immediately below project titles reflect Year 2005 cost estimates. Spreadsheet figures represent
actual incurred costs & projected future costs.
2. Shaded projects have been completed to-date.
3. Phases 1 & 2 (of 3) of the Channing/Lincoln CIP have been completed.
05/04/2016
JT
ATTACHMENT C
C - 4
5/12/2016
City of Palo Alto
M E M O R A N D U M
TO: Finance Committee
DATE: May 12, 2016
SUBJECT: Additional Information Pertaining to the Fiscal Year 2017 Proposed Operating Budget
This memorandum transmits additional information requested by the Finance Committee and/or
provided at staff’s behest in regards to the Fiscal Year 2017 Proposed Operating Budget.
Community Services HSRAP Allocations – Historical Funding Levels
(Finance Committee Budget Hearing May 5th; Agenda Item #5)
At the May 10th Finance Committee meeting, in response to the at places memorandum that was
transmitted at that meeting, additional information was requested about the Human Services Resources
Allocation Process (HSRAP) requesting an outline of the funding history dating back to FY 2001. Below is
a chart detailing this history. These annual figures do not include funding for Avenidas and Palo Alto
Community Child Care in order to provide a more accurate comparison to the current funding amount.
5/12/2016
Historical HSRAP Funding Levels
Year
Adopted
Budget
% change from
prior year
2000-2001 $386,425
2001-2002 $433,254 12.12%
2002-2003 $446,251 3.00%
2003-2004 $335,835 (24.74%)
2004-2005 $375,835 11.91%
2005-2006 $331,453 (11.81%)
2006-2007 $331,453 0.00%
2007-2008 $300,453 (9.35%)
2008-2009 $300,453 0.00%
2009-2010 $285,430 (5.00%)
2010-2011 $285,430 0.00%
2011-2012 $300,737 5.36%
2012-2013 $300,737 0.00%
2013-2014 $355,324 18.15%
2014-2015 $425,594 19.78%
2015-2016 $436,659 2.60%
2016-2017 $448,012 2.60%
Development Services Development Fee Cost Recovery
(Finance Committee Budget Hearing May 10th; Agenda Item #2)
At the May 10th Finance Committee meeting, a discussion occurred about what costs are eligible to be
recovered through development services fee payers, specifically in regards to Fire Department staffing.
Per Proposition 26 “Supermajority Vote to Pass New Taxes and Fees Act” and Proposition 218 “Right to
Vote on Taxes Act”, all governmental charges must be approved by the voters unless they qualify for an
exemption. Under Proposition 26, California Constitution Article XIIIC, Section 1(e)(3), regulatory fees,
including fees for “issuing licenses and permits, performing investigations, inspections, and audits,” may
be exempt, but only to the extent the fees do not exceed the amount necessary to cover the reasonable
cost of the services provided. Proposition 26 places the burden on the City to show that a regulatory fee
does not exceed this limitation.
Therefore, training and related certification costs can be passed on to the fee payers only if they are
necessary to complete inspection work. For example, if fire suppression training is only necessary for
fire suppression work and is not necessary for the inspectors to complete fire inspection work, those
costs cannot be passed on to fee payers. Should the City wish to pass along the fire suppression training
costs, it would need to show that suppression training is necessary for the fire inspectors to provide
inspections.
City of Palo Alto (ID # 6295)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 1/25/2016
City of Palo Alto Page 1
Summary Title: Annual Status Report Development Impact Fees FY15
Title: Review and Acceptance of Annual Status Report on Development
Impact Fees for Fiscal Year 2015
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that Council review and accept the Annual Report on Development Impact
Fees for the year ended June 30, 2015 (Attachment A).
Background
State law (Government Code Section 66006) requires that each local agency that imposes
development impact fees prepare an annual report providing specific information about those
fees. This requirement is part of the law commonly referred to as AB 1600. It codifies the legal
requirement that fees on new development must have the proper nexus to any project on
which they are imposed. In addition, AB 1600 imposes certain accounting and reporting
requirements with respect to the fees collected. The fees, for accounting purposes, must be
segregated from the general funds of the City and from other funds or accounts containing fees
collected for other improvements. Interest on each development fee fund or account must be
credited to that fund or account and used only for the purposes for which the fees were
collected.
Government Code Section 66006 contains comprehensive annual reporting requirements for
development impact fees. This statute requires that, within 180 days after the close of the
fiscal year, the agency that collected the fees must make available to the public the following
information regarding each fund or account:
Brief description of the type of fee in the fund.
Amount of the fee.
Beginning and ending balance in the fund.
Attachment A
A-1
City of Palo Alto Page 2
Amount of fees collected and interest earned.
Identification of each public improvement on which fees were expended and the
amount of the expenditure on each improvement, including the total percentage
of the cost of the public improvement that was funded with fees.
Identification of an approximate date by which the construction of a public
improvement will commence, if the local agency determines that sufficient funds
have been collected to complete financing on an incomplete public
improvement.
Description of each interfund transfer or loan made from the account or fund,
including the public improvement on which the loaned funds will be expended,
and in the case of an interfund loan, the date on which the loan will be repaid
and the rate of interest that the account or fund will receive on the loan.
Amount of any refunds made due to inability to expend fees within the required
time frame.
This report must also be reviewed by the City Council at a regularly scheduled public meeting
not less than 15 days after the information is made available to the public. In addition, notice
of the time and place of the meeting shall be mailed at least 15 days prior to the meeting to any
interested party who files a written request with the local agency for such a mailed notice. An
early packet consisting of Exhibit A only was made available to the public and included in the
packet for the December 7, 2015 meeting of the City Council.
The law also provides that, for the fifth fiscal year following the first deposit into the fund and
every five years thereafter, the local agency shall make findings with respect to any portion of
the fee remaining unexpended, whether committed or uncommitted. The finding must:
identify the purpose to which the fee is to be put;
demonstrate a nexus between the fee and the purpose for which it was originally
charged; and
identify all sources and amounts of funding anticipated to complete financing of
incomplete improvements along with the approximate dates on which the anticipated
funding is expected to be deposited into the fund.
If the agency no longer needs the funds for the purposes collected, or if the agency fails to
make required findings, or to perform certain administrative tasks prescribed by AB 1600, the
agency may be required to refund to property owners a prorated portion of the monies
collected for that project and any interest earned on those funds.
The City Auditor’s office recently conducted an audit of the City’s Parking in-lieu fund.
Attachment A
A-2
City of Palo Alto Page 3
Discussion
The City of Palo Alto development fees covered by AB 1600, and documented in Attachment A,
include the established fees noted below, as well as two new fees for Public Safety Facilities
and General Government Facilities that were approved by Council in May 2014. In addition,
though not technically a fee covered by AB 1600, the City is reporting its Public Art fee for
informational purposes only.
Stanford Research Park/El Camino Real traffic impact fees (PAMC Ch. 16.45): Fee for
new nonresidential development in the Stanford Research Park/El Camino Real Service
Commercial zone, to fund capacity improvements at eight intersections.
San Antonio/West Bayshore Area traffic impact fees (PAMC Ch. 16.46): Fee for new
nonresidential development in the San Antonio/West Bayshore area to fund capacity
improvements at four intersections.
Commercial housing in-lieu (PAMC Ch. 16.47): Fee on commercial and industrial
development to contribute to programs that increase the City's low income and
moderate-income housing stock.
University Avenue Parking in-lieu (PAMC Ch. 16.57): Fee on new non-residential
development in the University Avenue Parking Assessment District in lieu of providing
required parking spaces.
Parks, Community Centers, and Libraries impact fees (PAMC Ch. 16.58): Fee on new
residential and non-residential development to provide community facility funds for
parks, community centers, libraries, public safety, and general government.
Residential housing in-lieu fees (PAMC Ch. 16.47): Fee on residential developments in-
lieu of providing required below-market rate units to low and moderate income
households.
Parkland dedication fees (Quimby Act) (California Government Code Section 66477): Fee
or parkland dedication imposed on new residential and non-residential development.
Charleston-Arastradero Corridor pedestrian and bicyclist safety fees (PAMC Ch. 16.59):
Fee on new development and re-development within the Charleston-Arastradero
Corridor to provide for pedestrian and bicyclist improvements.
Public Safety facilities (PAMC Ch. 16.58): Fee on residential and non-residential
development to fund police and fire facilities, including fire apparatus and vehicles.
General Government facilities (PAMC Ch. 16.58): Fee on residential and non-residential
development to fund facilities associated with municipal administration.
Attachment A
A-3
City of Palo Alto Page 4
Citywide Transportation impact fee (PAMC Ch 16.59): Fee on development in all parts
of the City to fund transportation projects and programs to reduce congestion.
Public Art fees (PAMC 16.61): Fee on public art for private developments.
Water and sewer capacity fees (California Government Code Section 66000): Fee on
developments adding load to water and sewer systems.
AB 1600 requires the City to make specified findings in the event any funds are not expended
within five fiscal years of collection and every five years thereafter. While there are several
funds containing collected fees that have not been expended in five years, the required
statutory carryover findings have already been made for those funds and no further findings
are required.
RESOURCE IMPACT
Council approved the required findings with respect to unexpended fees in fiscal years 2012
and 2013. There were no required findings for either fiscal year 2014 or fiscal year 2015. The
next finding date will be fiscal year 2017, and the unexpended balances for each fee type are
noted at the bottom of each section in Attachment A.
Attachments:
Attachment A: Developer Fees (XLS)
Attachment A
A-4
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2015
Stanford Research Park/San Antonio/West
FUND El Camino Fund Bayshore Fund
Purpose and Authority Traffic impact fees imposed on new Traffic impact fees imposed on new
for Collection nonresidential development in the nonresidential development in the
Stanford Research Park/El Camino San Antonio/West Bayshore Areas
Real CS zone to fund improvements to fund capacity improvements at
at eight identified intersections.four identified intersections.
PAMC Ch. 16.45 PAMC Ch. 16.46
Amount of the Fee $11.64 per square foot $2.40 per square foot
Fund Balance July 1, 2014 $3,492,212 $848,819
Activity in 2014-15
Revenues
Fees Collected 616,173 0
Interest Earnings 73,552 16,769
Unrealized Gain/Loss Investments (4,692)(361)
--------------------------------------------------------------------------------------------------------------------
Total Revenues $685,033 $16,408
Expenditures
Inter-agency expenses 0
Transfer to Gas Tax Fund (994,217)0
--------------------------------------------------------------------------------------------------------------------
Total Expenditures (994,217)0
--------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2015 $3,183,028 $865,227
Other Commitments/AppropriationsReserve for unrealized gain on
investments (19,599)(5,037)--------------------------------------------------------------------------------------------------------------------
Net Funds Available $3,163,429 $860,190
Unexpended balance at next finding
date (FY 2017-18)$2,343,008 $823,819
USE OF FEES:USE OF FEES:
Expenditures of funds have been made in
Fiscal Year 2015 for $994K transfer to
Gas Tax Fund. During the FY 2008-09,
the City transferred out $994k from Gas
Tax Fund to this fund for various street
related costs. However, the transfer were
not used for street related expenses, as
result per SCO recommendation $994K
was returned to Gas Tax Fund.
No expenditures have been made from this
fund in Fiscal Year 2015.
Page 1 of 10 1/5/2016
Attachment A
A-5
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2015
Commercial Housing University Avenue Parking
FUND In-Lieu Fund In-Lieu Fund
Purpose and Authority Fees imposed on large commercial Fees collected from non-residential
for Collection and industrial development to development within the University Ave.
contribute to programs that increase Parking Assessment District in lieu of
the City's low income and moderate-providing the required number of
income housing stock.parking spaces.
PAMC Ch.16.47 PAMC Ch 16.57
Amount of the Fee $19.31 per square foot $63,848 per space
Fund Balance July 1, 2014 $12,538,778 $1,970,372
Activity in 2014-15
Revenues
Fees Collected 2,297,126 2,890,950
Interest Earnings 171,150 90,052
Unrealized Gain/Loss Investments 10,053 11,685
--------------------------------------------------------------------------------------------------------------------
Total Revenues 2,478,329 2,992,687
Expenditures
Transfer to Residential Housing In- Lieu
Fund (375,000)0
--------------------------------------------------------------------------------------------------------------------
Total Expenditures (375,000)0
--------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2015 $14,642,107 $4,963,059
Other Commitments/Appropriations
Reserve for Notes Receivable
include:$1,290,000 for 2811 Alma, and
$3,645,010 for 801 Alma.(4,935,010)
Reserve for Buena Vista (7,700,000)
Reserve for unrealized gain on
investments (49,863)(20,457)
--------------------------------------------------------------------------------------------------------------------
Net Funds Available $1,957,234 $4,942,602
Unexpended balance at next finding
date (FY 2017-18)4,667,286 $652,080
USE OF FEES:USE OF FEES:
Expenditures of funds have been made in
Fiscal Year 2015 for $375K. This is
transfer to Residential Housing In-Lieu
Fund for rehabilitation and preservation of
affordable housing units at 110-130 El
Dorado. This will be repaid on June 30,
2016 including interest.
No expenditure of funds have been made
from this fund in Fiscal Year 2015.
Page 2 of 10 1/5/2016
Attachment A
A-6
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2015
Residential & Non-Residential Housing Residential & Non-Residential Housing
Community Facilities Community Facilities
FUND Parks Community Centers
Purpose and Authority Fees imposed on new residential and Fees imposed on new residential and
for Collection non-residential development approved non-residential development approved
after Jan 28, 2002 for Parks. after Jan 28, 2002 for Community Centers.
PAMC Ch. 16.58 PAMC Ch. 16.58
Amount of the Fee
Residential: Single family
$11,180/residence (or $16,695/residence
larger than 3,000 sq ft); Multi-family
$7,318/unit (or $3,700/unit smaller than or
equal to 900 sq ft)
Residential: Single family $2,898/residence
(or $4,439/residence larger than 3,000 sq ft);
Multi-family $1,907/unit (or $963/unit smaller
than or equal to 900 sq ft)
Nonresidential: Commercial/industrial
$4,748 per 1,000 sq ft; Hotel/Motel $2,147
per 1,000 sq ft
Nonresidential: Commercial/industrial $268
per 1,000 sq ft; Hotel/Motel $121 per 1,000
sq ft
Fund Balance July 1, 2014 $2,929,569 $5,009,861
Activity in 2014-15
Revenues
Fees Collected 830,387 117,161
Interest Earnings 64,721 99,910
Unrealized Gain/Loss 5,398 (4,344)
--------------------------------------------------------------------------------------------------------------------
Total Revenues $900,506 $212,727
--------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 0
--------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2015 $3,830,075 $5,222,588
Other Commitments/Appropriations
Reserve for unrealized gain on investments (19,905)(30,068)--------------------------------------------------------------------------------------------------------------------
Net Funds Available $3,810,170 $5,192,520
Unexpended balance at next finding
date (FY 2016-17)446,005 $843,809
USE OF FEES:USE OF FEES:
No expenditure of funds have been made
from this Fund in Fiscal Year 2015.
No expenditure of funds have been made
from this Fund in Fiscal Year 2015.
Page 3 of 10 1/5/2016
Attachment A
A-7
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2015
Residential & Non-Residential Housing Residential Housing
Community Facilities In-Lieu Fund
FUND Libraries
Purpose and Authority Fees imposed on new residential and Fees collected from residential
for Collection non-residential development approved developments of three or more units in
after Jan 28, 2002 for Libraries. lieu of providing the required below-
market rate unit(s) to low and moderate
PAMC Ch. 16.58 income households.
PA Comprehensive Plan and
PAMC Chapter 18
Amount of the Fee
Residential: Single family
$1,012/residence (or $1,507/residence
larger than 3,000 sq ft); Multi-family
$604/unit (or $332/unit smaller than or
equal to 900 sq ft)Varies
Nonresidential: Commercial/industrial
$255 per 1,000 sq ft; Hotel/Motel $107 per
1,000 sq ft
Fund Balance July 1, 2014 $730,991 $13,909,337
Activity in 2014-15
Revenues
Fees Collected 58,007 19,800
Sterling Litigation Settlement 3,851,759
Webster Wood In-Lieu Payment 5,175
Interest Earnings 14,909 203,752
Unrealized Gain/Loss Investments (211)12,663
Transfer from Commercial Housing In-
Lieu Fund 375,000
--------------------------------------------------------------------------------------------------------------------
Total Revenues $72,705 $4,468,149
Expenditures
Legal (278,326)
Housing Program Expense (347,070)
Principal Retired (131,126)
--------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 (756,522)
--------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2015 $803,697 $17,620,964
Other Commitments/Appropriations
Reserve for Reappropriations (1,975,000)
Reserve for Encumbrances (363,645)
Reserve for Buena Vista (6,800,000)
Reserve for unrealized gain on
investments (4,512)(46,400)
Reserve for Notes Receivable include
$375,000 for 3053 Emerson, $3,804,850
for Tree House Apts, $203,093 for Oak
Manor, $756,819 for Sheridan Apts., and
$2,674,986 for 801 Alma (7,814,748)
--------------------------------------------------------------------------------------------------------------------
Net Funds Available $799,185 $621,171
Page 4 of 10 1/5/2016
Attachment A
A-8
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2015
Unexpended balance at next finding
date (FY 2016-17-Residential & Non
Residential Housing Communities
Facilities Libraries, FY2017-18-
Residential Housing In-Lieu)$541,529 2,734,967
USE OF FEES:USE OF FEES:
No expenditure of funds have been made
from this Fund in Fiscal Year 2015.
Expenditures in Fiscal Year 2015 include
$147K to Palo Alto Housing Corp for BMR
fees, $131K for Oak Manor Apts. loan
forgiveness, $279K for legal fees, and
$200K financial contribution to Housing Trust
Silicon Valley.
Page 5 of 10 1/5/2016
Attachment A
A-9
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2015
Parkland Dedication Charleston-Arastradero Corridor
Pedestrian and Bicyclist Safety
FUND
Purpose and Authority Fees on parkland dedication imposed Fees collected from new development and
for Collection on new residential and non-residential re-development within the Charleston-
development Arastradero Corridor to provide for pedest-
rian and bicyclist safety improvements.
Govt Code Sec.66477 (Quimby Act) PAMC Ch. 16.60
Amount of the Fee Varies Residential: $1,225 per unit; Commercial:
$0.36 per sq ft
Fund Balance July 1, 2014 $2,427,163 $249,804
Activity in 2014-15
Revenues
Fees Collected 78,214 1,168
Interest Earnings 48,088 4,942
Unrealized Gain/Loss (310)(1,224)
--------------------------------------------------------------------------------------------------------------------
Total Revenues $125,992 $4,886
--------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 0
--------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2015 $2,553,155 $254,690
Other Commitments/ReappropriationsReserve for unrealized gain on
investments (14,534)(1,475)
--------------------------------------------------------------------------------------------------------------------
Net Funds Available $2,538,621 $253,215
Unexpended balance at next finding
date (FY 2016-17-Parkland Dedication,
FY2017-18-Charleston)$757,744 $138,989
USE OF FEES:USE OF FEES:
No expenditure of funds have been made
from this Fund in Fiscal Year 2015.
No expenditure of funds have been made
from this Fund in Fiscal Year 2015.
Page 6 of 10 1/5/2016
Attachment A
A-10
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2015
New Public Safety Facilities General Government Facilities
FUND
Purpose and Authority
Fees imposed on residential and non-
residential development to fund police
and fire facilities (including fire apparatus
and vehicles)
Fees imposed on residential and non-
residential development to fund facilities
associated with municipal administration
for Collection PAMC Ch. 16.58 PAMC Ch. 16.58
Amount of the Fee Residential: Single family $996 per unit;
Multi-family $797 per unit
Residential: Single family $1,225 per unit;
Multi-family $1004 per unit
Nonresidential: Commercial $557 per
1,000 sq ft. or fraction thereof; Industrial
$186 per 1,000 sq. ft. or fraction thereof;
Hotel/Motel $743 per 1,000 sq ft or
fraction thereof
Nonresidential: Commercial $702 per 1,000
sq ft. or fraction thereof; Industrial $234 per
1,000 sq. ft. or fraction thereof; Hotel/Motel
$937 per 1,000 sq ft or fraction thereof
Fund Balance July 1, 2014 $0 $0
Activity in 2014-15
Revenues
Fees Collected 1,594 2,008
Interest Earnings 2 3
--------------------------------------------------------------------------------------------------------------------
Total Revenues $1,596 $2,011
--------------------------------------------------------------------------------------------------------------------
Total Expenditures 0 0
--------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2015 $1,596 $2,011
Other Commitments/Reappropriations
--------------------------------------------------------------------------------------------------------------------
Net Funds Available $1,596 $2,011
Unexpended balance at next finding
date FY 2019-20 $1,596 $2,011
USE OF FEES:USE OF FEES:
No expenditure of funds have been made
from this Fund in Fiscal Year 2015.
No expenditure of funds have been made
from this Fund in Fiscal Year 2015.
Page 7 of 10 1/5/2016
Attachment A
A-11
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2015
Citywide Transportation
FUND
Purpose and Authority for Collection
Transportation impact fees imposed on
new development in all parts of the City to
fund congestion reduction projects.
PAMC Ch. 16.59
Amount of the Fee $3,354 per net new PM peak hour trip
Fund Balance July 1, 2014 $3,882,010
Activity in 2014-15
Revenues
Fees Collected 405,120
Interest Earnings 62,759
Unrealized Gain/Loss Investments (4,311)--------------------------------------------------------
Total Revenues $463,568
Expenditures
Operating Transfer to CIP (1,885,183)
--------------------------------------------------------
Total Expenditures (1,885,183)--------------------------------------------------------
Ending Balance June 30, 2015 $2,460,395
Other Commitments/Reappropriations
Reserve for unrealized gain on
investments (18,630)--------------------------------------------------------
Net Funds Available $2,441,765
Unexpended balance at next finding
date (FY 2017-18)$1,216,124
USE OF FEES:
Expenditures have been made in Fiscal
Year 2015 for $372K to PL-15001
(Embarcadero Corridor), $308K to PL-
14000 (El Camino / Churchhill), $841K to
PL-05030 (Traffic Signal and ITS
upgrades, and $364K to PL-11003 (Palo
Alto Traffic Signal)
Page 8 of 10 1/5/2016
Attachment A
A-12
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2015
(INFORMATION ONLY)
Public Art Fund
FUND
Purpose and Authority for Collection
Fees imposed on new commercial
develoments (including mixed use
projects), including new construction,
remodels, additions and reconstruction
that (i) have a floor area of 10,000 square
feet or more, and (ii) have a construction
value of $200,000, or more, exclusive of
costs for architecture, design, engineering,
and required studies; and all new
residential projects of five or more units to
fund public art for private developments.
PAMC Ch. 16.61
Amount of the Fee
1% of first $100 million construction
valuation and .9% of construction
valuation for valuation in excess of $100
million
Fund Balance July 1, 2014 $56,176
Activity in 2014-15
Revenues
Fees Collected 110,485
Interest Earnings 5,707
Unrealized Gain/Loss Investments 1,208
Operating Transfer from General Fund 96,123
--------------------------------------------------------
Total Revenues $213,523
Expenditures
Salaries and benefits (114,815)
Supplies and materials (168)
--------------------------------------------------------
Total Expenditures (114,983)
--------------------------------------------------------
Ending Balance June 30, 2015 $154,716
Reserve for unrealized gain on
investments (1,546)
--------------------------------------------------------
Net Funds Available $153,170
This fund is not subject to AB1600
requirements and is listed only for
information purposesPage 9 of 10 1/5/2016
Attachment A
A-13
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2015
(INFORMATION ONLY)
FUND Water and Wastewater Collection
Purpose and Authority Capacity fees charged to developers that
for Collection are adding load to the water and sewer
systems effective July 1, 2005.
California Government Code Sect 66000
Amount of the Fee
Water Domestic: 5/8 in., 3/4 in. $5,000, 1
in. $9,400, 1 1/2 in. $18,850, 2 in. by est.
$125/FU, 3 in. by est. $125/FU , 4 in. by
est. $125/FU , 6 in. by est. $125/FU
Water Fire Service: 2 in. $750, 4 in.
$9,000, 6 in. $22,530, 8 in. $43,080, 10in.
$69,510
Sewer: 4 in. $10,500 first 50 FU, $210/FU
additional, 6 in. by est. $210/FU, 8 in. by
est. $210/FU
FU is fixture unit
Activity in 2014-15
Capacity Fees Collected
Water $1,132,095
Wastewater Collection 647,640
Total $1,779,735
USE OF FEES:
The fees are used exclusively for water
and sewer system improvements
Page 10 of 10 1/5/2016
Attachment A
A-14
1
5/17/2016
City of Palo Alto
M E M O R A N D U M
TO: Finance Committee
DATE: May 17, 2016
SUBJECT: Recommended Changes and Additional Information Pertaining to the Fiscal Year 2017
Proposed Budget
This memorandum transmits additional information requested by the Finance Committee and/or
provided at staff’s behest in regards to the Fiscal Year 2017 Proposed Budget.
Recommended Changes to the FY 2017 Proposed Budget and/or Finance Committee Motions
Street Trees Contract Increase vs. Cycle Time
(Finance Committee Budget Hearing May 12th; Agenda Item #3b)
At the May 12th Finance Committee meeting, additional details about the tree trimming contract and
potential cycle times was requested. Below is a chart detailing the number of trees that would be
pruned annually based on a 7 year, 10 year, and 15 year cycle time and the annual and total cost for a
three year contract with each of these cycle times. In FY 2017 the unit cost for a tree is $128 and this
would increase to $140 and $150 in FY 2018 and FY 2019 respectively based on a population of
approximately 43,100 public trees (35,400 street trees and 7,700 park, golf, and open space trees). The
current FY 2017 Proposed Operating Budget recommends movement from current service delivery
levels of a 7 year cycle to a 15 year cycle. The Finance Committee tentatively approved a motion on May
12th to place a reduction in the cycle time down to 10 years in the “parking lot” for further discussion at
the Budget Wrap-up on May 23rd in the amount of $135,000. Staff recommends amending the “parking
lot” adjustment to $170,000 to align with the proposals outlined below.
3 Year Tree Trimming Service Contract
# of Trees FY 2017 FY 2018 FY 2019 Total 3 Year
Pruned Annually Contract Cost Contract Cost Contract Cost Contract Cost
7 Year Cycle 5,380 $1,465,785 $1,567,150 $1,669,515 $4,702,450
10 Year Cycle 3,415 $1,148,885 $1,228,930 $1,303,145 $3,680,960
15 Year Cycle 1,978 $978,930 $1,027,750 $1,087,795 $3,094,475
2
5/17/2016
Electric Fund Capital Improvement Project: Facility Relocation for Caltrain Modernization Project
(Finance Committee Budget Hearing May 17th, Item #2.a.ii.)
Subsequent to the printing of the FY 2017-2021 Proposed Capital Improvement Plan, a new project was
identified by the Utilities Department that is recommended to be added to the five-year plan with
$150,000 recommended to be budgeted in FY 2017. This project is detailed in Attachment – B, and
provides funding for the relocation of overhead Utility Electric and Fiber Optic lines to provide adequate
clearance from new electric lines being installed by the Peninsula Corridor Joint Powers Board (Caltrain)
to convert their diesel powered commuter trains to electric power. Staff recommends that the Finance
Committee make a motion to include this project in the final recommended FY 2017-2021 CIP with
corresponding decreases in the Distribution Reserve in the Electric Fund.
Art in Public Places (Finance Committee Budget Hearing May 17th, Item #3)
Subsequent to the printing of the FY 2017-2021 Proposed Capital Improvement Plan, an error in the
calculation of the Art in Public Spaces capital project (AC-86017) was identified. Replacement pages are
included as Attachment – C, which contains an updated project page. Funding levels are recommended
to be adjusted as outlined in the table below offset by adjustments to the Infrastructure Reserve Balance.
Recommended Changes to Art in Public Places Project
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
FY 2017-2021 Proposed CIP
(April 25, 2016)
$579,840 $613,249 $227,612 $199,400 $0
Recommended $423,513 $212,450 $880,700 $240,012 $125,958
Change ($156,327) ($400,779) $653,088 $40,612 $125,958
Additional Information Pertaining to the FY 2017 Proposed Budget
Planning Transportation Commission Findings
(Finance Committee Budget Hearing FY 2017 Proposed Capital Improvement Plan)
On May 17th, the Planning Transportation Commission reviewed the FY 2017-2021 Proposed Capital
Improvement Plan for compliance with the City’s 1998-2010 Comprehensive Plan. Per Section
19.04.040 of the Palo Alto Municipal Code
The Planning Commission shall submit an annual report to the council regarding the capital
improvement program, which shall review each project for its conformity to the master plan;
review the programs as a whole in order to suggest any improvement in economy or efficiency
which might be effected through the combining of various projects; and suggest any needed
improvements which do not appear in the program.
Attached is the letter from the Commission (Attachment – D) outlining their findings in association with
the compliance with the Comprehensive Plan. Due to the timing of the PTC meeting schedule and the
Finance Committee Budget Hearing schedule, full minutes from this meeting are anticipated to be
3
5/17/2016
transmitted to the full City Council as part of the Adopted of the FY 2017 Budget, agendized for June 13,
2016.
Zero Waste Coordinator to Environmental Specialist Reclassification
(Finance Committee Budget Hearing May 12th; Agenda Item #3b)
In accordance with the SEIU MOA that was ratified by the City Council effective April 16, 2016, the salary
difference between a Zero Waste Coordinator and an Environmental Specialist is approximately $11,000
from top-step to top-step. Factored into this difference and included in all the FY 2017 Proposed Budget
assumptions include:
Effective Upon Ratification
April 16, 2016
Effective Date:
December 1, 2016
Total
General
Wage
Increase
Market
Adjustment
General Wage
Increase
Market
Adjustment
Zero Waste Coordinator 1.5% 0.9% 3.0% 0.9% 6.30%
Base Wage Adopted FY
2016 Budget = $83,262 $85,280 $88,608 $5,346
Environmental Specialist 1.5% 1.43% 3.0% 1.43% 7.36%
Base Wage Adopted FY
2016 Budget = $93,454 $96,200 $100,485 $7,031
With regards to the specific reclassification of a Zero Waste Coordinator to an Environmental Specialist
as recommended in the Refuse Fund (FY 2017 Proposed Operating Budget Page 366), the total
difference of salaries and benefits is approximately $8,000. (This reflects the costing for a specific
position and incumbent all in terms of changing that position from the FY 2017 costing assumptions for
a the Zero Waste Coordinator level to the FY 2017 cost assumptions for an Environmental Specialist).
This difference includes:
• The marginal salary cost for a specific higher level position with an incumbent employee over
the costs of a lower level position
• Increased variable benefit costs (Pension, Medicare, etc.) for the higher level position based on
a higher salary level.
If one were to look at the year-over-year increases from FY 2016 budgeted salaries to FY 2017 budgeted
salaries, the difference would be the combination of both the MOA approved increases, and the
marginal salary and benefit increases from the lower level job classification to the higher level job
classification described above.
In addition, when comparing FY 2016 budgeted salaries to FY 2017 budgeted salaries it should be noted
that in FY 2016, funding associated with general wage increases for positions was allocated in a salary
reserve, and not budgeted directly in departmental budgets due to ongoing negotiations. In FY 2017, all
general salary increases for positions have been budgeted in departmental budgets due to the
ratification of the MOAs, which causes the year over year salary and benefits change to be larger than
just the approved FY 2017 change.
4
5/17/2016
Unfunded Liability & Salary Growth Assumptions (Finance Committee Budget Hearings May 2016)
Throughout the Finance Committee hearings and specifically again as part of the discussion surrounding
the reclassification requests during the review of the Public Works’ Departmental Budget review, the
impacts and assumptions used in the unfunded liability calculation for salary growth have been
discussed. Bartel and Associates have provided a quick analysis outlining the percentage growth in
salaries assumed and every 1% additional growth implications on the unfunded liability level. Slides 31
and 32 in Attachment – A reflect these calculations. CalPERS makes certain assumptions based on age,
years of service on individual pay increases (see slide 31) and assumes a 3% aggregate growth of payroll
above the individual increases. The impact figures in slide 32 are for the whole group respectively.
MISCELLANEOUS AND SAFETY PLANS
CalPERS Actuarial Issues – 6/30/14 Valuation
Preliminary Results
Presented by John Bartel, President
Prepared by Bianca Lin, Assistant Vice President
Matthew Childs, Actuarial Analyst
Bartel Associates, LLC
April 5, 2016
ATTACHMENT A
A - 1
April 5, 2016 31
ADDITIONAL 1% PAY INCREASE
CalPERS Pay Related Assumptions
Aggregate Payroll Growth
Inflation 2.75%
Increase Above Inflation 0.25%
Total 3.00%
Individual Pay Increases
Inflation, Step Rate, Merit, Promotion, Longevity, etc.
Varies based on hire age & Agency service
For example, hired at age 30:
Service Miscellaneous Safety
0 11.6% 14.7%
5 6.0% 5.8%
25 3.6% 4.3%
Earlier hire ages have higher anticipated pay increases and later hire
ages have lower anticipated pay increases
ATTACHMENT A
A - 2
April 5, 2016 32
ADDITIONAL 1% PAY INCREASE
Impact of 1% Pay Increase above CalPERS assumption:
Actuarial
Liability
Increase
Contribution
Rate Increase
Miscellaneous ≈$2,388,000 ≈0.3%
Safety ≈ $847,000 ≈0.3%
Based on a 20 year amortization without ramp up/down.
ATTACHMENT A
A - 3
ELECTRIC FUND
TBD ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET
Facility Relocation for Caltrain Modernization Project
Facility Relocation for Caltrain
Modernization Project
Description
This project allows for the relocation of overhead Utility Electric and Fiber Optic lines to provide
adequate clearance from new electric lines being installed by the Peninsula Corridor Joint Pow-
ers Board (Caltrain) to convert their diesel powered commuter trains to electric power.
Justification
The Caltrain Modernization Program consists of converting Caltrain from a diesel-hauled to
Electric Multiple Unit trains. The installation of the Overhead Catenary System above the rails to
power the trains will cause conflicts with the Cityís overhead electric and communication lines,
as well as those owned by others, e.g. AT&T, Comcast, which cross the railroad tracks. Caltrain is
looking to have the overhead lines relocated/removed by August 2018 for an anticipated project
completion in 2020. In order to meet Caltrainís timeline, Utilities must obtain funding and start
the design process in FY 2017. If lines are placed underground, Utilities will look for opportuni-
ties to share the costs with AT&T and Comcast as part of the joint construction agreement
between the three entities for installation of underground facilities.
Supplemental Information
Though Electric power for the trains will be provide by PG&E from outside of Palo Altoís city
limits, the timely relocation/removal of overhead electric lines will facilitate the conversion of
the commuter train system from diesel fuel to electricity, reducing greenhouse gas emissions,
noise, and pollution in Palo Alto. Caltrain is receiving funding for the project from several differ-
ent sources. If Caltrain does not obtain full funding to complete the project, construction fund-
Fund: Electric Fund - Operating
Category: Undergrounding Projects
Project Location: Various locations along railroad
Managing Department: Utilities
Initial Project Start: Fall 2017
Initial Project Completion: Winter 2018
Revised Project Start:
Revised Project Completion:
Project Number: EL-17007
ATTACHMENT B
B - 1
ELECTRIC FUND
ELECTRIC FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET TBD
ing approved by Council for the relocation of facilities will be returned to reserves. Revenue
projections are based on shared installation underground facilities with AT&T and Comcast.
Expenditure Schedule
Project Phase
Prior
Years
FY 2016
Budget
FY2016
Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
5 Year CIP
Total
Beyond 5
Year CIP Total
0 0 0 150,000 2,550,000 0 0 0 2,700,000 0 2,700,000
Total 0 0 0 150,000 2,550,000 0 0 0 2,700,000 0 2,700,000
Relationship to Comprehensive
Plan
Primary Connection
Element: Natural Environment
Section: Energy
Goal: N-9
Potential Board/Commission
Review:
Utilities Advisory Commission
ATTACHMENT B
B - 2
CAPITAL IMPROVEMENT FUND
178 CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET
Art In Public Spaces
Art In Public Spaces
Description
This project provides funding for innovative public art for both interior and exterior public
spaces in accordance with the City Council-approved Art in City Capital Improvement Projects
ordinance.
Justification
This project places art in public buildings, plazas, gateways, parks and other sites frequented by
residents and visitors alike. It is expected that public art will enhance community pride and own-
ership in the City of Palo Alto. Public Art preserves the long-term viability of the built environ-
ment and helps set a standard for aesthetic variety and creativity in the community.
Supplemental Information
The Art in City Capital Improvement Projects ordinance states that the City will budget one per-
cent of its CIP budget for public art, with certain exceptions. A base level of funding in the
amount of $50,000 is included each year.
Significant Changes
Prior to Fiscal Year 2015, the one percent for public art was included in the budget for each
applicable project. Beginning in Fiscal Year 2015, this funding is accounted for within this proj-
ect. This change provides a clearer picture of how much funding is available for public art,
allows for the pooling of funds for more impactful projects, and ensures that the funds are pre-
served for public art.
Fund: Capital Improvement Fund
Category: Parks and Open Space
Project Location: Various
Managing Department: Community Services
IBRC Reference: Keep-up
Initial Project Start: Recurring
Initial Project Completion: Recurring
Project Number: AC-86017
Brilliance, by Joe O'Connell and Blessing Hancock
ATTACHMENT C
C - 1
CAPITAL IMPROVEMENT FUND
CAPITAL IMPROVEMENT FUND • CITY OF PALO ALTO FISCAL YEAR 2017 CAPITAL BUDGET 179
Operating Impact
Annual funding in the amount of $30,000 for public art maintenance is allocated to the Com-
munity Services Department in the General Fund. This level of funding may be reviewed in light
of increased funding for public art resulting from the public art ordinance, and adjustments to
the maintenance allocation may be brought forward for City Council consideration in future
years, if appropriate.
Funding Sources Schedule
Funding Source
Prior
Years
FY 2016
Budget
FY2016
Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
5 Year CIP
Total
Beyond 5
Year CIP Total
Capital Improvement
Fund N/A 367,994 186,800 423,513 212,270 880,700 240,012 125,958 1,882,454 0 N/A
Total N/A 367,994 186,800 423,513 212,270 880,700 240,012 1,882,454 0 N/A
Expenditure Schedule
Project Phase
Prior
Years
FY 2016
Budget
FY2016
Est.FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
5 Year CIP
Total
Beyond 5
Year CIP Total
Construction N/A 359,716 186,800 0 N/A
Other N/A 8,278 0 0 0 0 0 0 0 0 N/A
Total N/A 367,994 186,800 0 N/A
Relationship to Comprehensive
Plan
Primary Connection
Element: Land Use and Community
Design
Section: Public Ways
Goal: L-9
Policy: L-72
Potential Board/Commission
Review:
Architectural Review Board
Parks and Recreation Commission
Environmental Impact Analysis:
This project is expected to have a possible exemption from CEQA under Section 15301.
125,958
423,513
423,513
212,270
212,270
880,700
880,700
240,012 125,958 1,882,454
240,012 1,882,454125,958
ATTACHMENT C
C - 2
ATTACHMENT D
D - 1
1
5/23/2016
City of Palo Alto
M E M O R A N D U M
TO: Finance Committee
DATE: May 23, 2016
SUBJECT: Additional Information Pertaining to the FY 2017 Proposed Budget
This memorandum transmits additional information requested by the Finance Committee and/or
provided at staff’s behest in regards to the Fiscal Year 2017 Proposed Budget.
Planning Transportation Commission Findings
On Tuesday, May 17th, the Planning and Transportation Commission (PTC) reviewed the 2017-2021
Capital Improvement Program for compliance with the Comprehensive Plan, per Municipal Code
requirements. The PTC approved a motion finding the plan to be in compliance with the Comprehensive
Plan. Attached to the May 17th memorandum distributed at places is a letter from the Chair of the
Planning and Transportation Commission (PTC) summarizing the Commissions review of the Fiscal Year
2017-2021 Proposed Capital Improvement Plan (attached again as Attachment A for convenience). Due
to the timing of the PTC meeting schedule and the Finance Committee Budget Hearing schedule, full
minutes from this meeting were not transmitted to the Committee on the 17th of May and are therefore
attached to this memorandum (Attachment – B).
The 1998-2010 Comprehensive Plan is in the process of being updated. As the Comprehensive Plan is
reviewed by staff, the public, the PTC, the City Council, and others, the PTC’s suggestion regarding the
Governance Element about including policies or programs relating to prioritization of capital projects
can be considered.
Staff currently aligns each capital project to the Comprehensive Plan, notating the specific alignment for
each capital project within the budget document. Upon adoption of the updated Comprehensive Plan,
staff will consider the PTC’s recommendation to measure capital projects against Comprehensive Plan
policies and determine whether policies have a target embedded for which a meaningful, sustainable,
and usable measure can be developed for particular CIP projects.
ATTACHMENT A
A - 1
City of Palo Alto May 17, 2016 Page 1
1 ===============MEETINGS ARE CABLECAST LIVE ON GOVERNMENT ACCESS CHANNEL 26================= This agenda is posted in accordance with Government Code Section 54954.2(a) or section 54956. 2
3
Wednesday, May 17, 2016 Special Meeting 4
12:00 PM, Council Chambers 5
6
7
Call to Order / Roll Call: 12:03 P.M. 8
Commissioners Alcheck, Downing and Tanaka absent 9
10
Chair Fine: Thank everyone for showing up and sorry for the delay in doing this meeting. Today 11 I would like to open the Planning and Transportation Commission (PTC) meeting, May 17, 2016 12
and we have only one item today. But first let’s open it up to oral communications are there any 13
speaker cards? Sorry, Robin, will you take the roll please? 14
15
Robin Ellner, Administrative Associate: Commissioner Alcheck, Commissioner Downing, Chair 16 Fine, Vice-chair Gardias, Commissioner Rosenblum, Commissioner Tanaka, Commissioner 17
Waldfogel. Four present. 18
19
Chair Fine: Thank you very much. Do we have any speaker cards on non-agenda items. 20
21 Ms. Ellner: No. 22
23
Chair Fine: Ok. Any agenda changes? I don’t think so. Let’s move to the Assistant Director’s 24
report please. 25
26 Jonathan Lait, Assistant Director: No report. 27
28
Chair Fine: Ok, let’s move on to the action item, just one today. Review and recommendation to 29
the City Council on the proposed 2017 – 2021 Capital Improvement Plan (CIP) and Compliance 30
of the Comprehensive Plan. I believe there is a short report. 31 32
Mr. Lait: Chitra will give you a brief presentation and I believe everybody in this Chamber is 33
here to answer any questions you may have. 34
35
Chitra Moitra, Planner: Good afternoon Commissioners, I am Chitra Moitra, planner, Long 36 Range Planning. Today, staff requests the PTC review the 2017 – 2021 CIP Programs to be 37
consistent with the Comprehensive Plan and forward the findings to the Finance Committee and 38
City Council. The section 19.04.040 of the Palo Alto Municipal Code (PAMC) describes PTC’s 39
role in the reviewal process, which really includes review of the CIP in the Comp Plan for 40
consistency, for commenting on individual projects and suggesting improvements that can 41 increase the efficiency of the process and identify any CIP’s which the Commission deems to be 42
missing from the list. This year we have in the Capital budget, 211 CIP projects of which 29 are 43
PLANNING & TRANSPORTATION
COMMISSION
MINUTES
ATTACHMENT B
B - 1
City of Palo Alto May 17, 2016 Page 2
new. Like last year we are focusing only on reviewing the new projects, so the rest of the other 1
projects included in the Capital Budget book has already been reviewed by the PTC. Staff has 2 used the same matrix as last year, which is aligning each CIP with the Comprehensive Plan 3
Element, a goal, a program and a policy. The staff has also added information on the types of 4
boards and commissions reviews required and the type of environmental review required. This 5
slide up here shows the number of CIP’s which have been aligned, so over 80 percent of the new 6
CIP’s have been aligned with the Natural Environment Element and the Community Services 7 Element. Staff has also linked each of these CIP’s with the 2016 City Council priorities and has 8
found that more than 83 percent of all the infrastructure improvements amounting to about $13 9
million dollars for the year 2017 is being allotted for all sorts of infrastructure improvements. 10
Staff has also done a summary of the Capital Budget, the 2017 Capital Budget invested by 11
elements and has found that about 50 percent of them are invested for improvements and are 12 linked with the Natural Environment Element while 39 percent is for the Community Services 13
Element. So all of these above analysis proves that the 29 of the new CIP’s are in compliance 14
with the Comprehensive Plan and staff requests PTC to forward the findings to Finance 15
Committee and City Council. 16
Thank you, this concludes my presentation. 17 18
Chair Fine: Thank you very much, do we have any speaker cards? 19
20
Ms. Ellner: No. 21
22 Chair Fine: None? Ok, let’s open it up, I think we can mix comments and questions if that’s 23
alright with everybody. Let’s just start with five minutes each. Vice-chair. 24
25
Vice-chair Gardias: Thank you Mr. Chairman, welcome back. I have a question to, actually Josh 26
about transportation item, if we can start with them. A couple of comments, there were a couple 27 of recent projects that came to us and the biking routes that we reviewed and as you remember, 28
we didn’t review Bryant Street because of procedural constraints, I know that it went to the 29
Council. Is Bryant Street included in this budget for downtown mobility and safety 30
improvements? 31
32 Josh Mello, Chief Transportation Official: Josh Mello, Chief Transportation Official. Thank you 33
for the question, the downtown mobility and safety strategies project is envisioned as kind of a 34
on-going trial and pilot process where we look at different bike-ways along Bryant Street, 35
University, Alma Street. We are also going to look at whether it makes sense to convert High 36
Street and Homer and Channing to two-way operation. We hope to test out different pedestrian 37 and bicycle accommodations, we’re also looking at improving the signal timing downtown for 38
both transit, motorists, pedestrians and cyclists. There is a segment of Bryant Street that passes 39
through the study area for this particular project. The Bryant Street bike upgrade project was not 40
very visionary when it came to Downtown. We’ve heard a lot of concerns about folks using the 41
bike boulevard through Downtown and wanting to see better accommodations, so this project 42 will look a little more in depth at what those may be. 43
44
Vice-chair Gardias: Ok, so it’s going to take a look from the concept perspective but it will not 45
include investment in Bryant Street portion. 46
47
ATTACHMENT B
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City of Palo Alto May 17, 2016 Page 3
Mr. Mello: The Downtown mobility and safety strategies is both a planning and implementation 1
project, wo we want to use tact to go Urbanism, pop up street type thing. So we want to test out 2 different configurations in practice, see how they work and make adjustments. 3
4
Vice-chair Gardias: Ok, so the part of Bryant that will be considered under this investment would 5
be including implementation of the solutions, right? 6
7 Mr. Mello: Yes, the bike boulevard, I don’t feel we had enough direct outreach to business 8
owners along Bryant, so the Downtown mobility and safety strategy will include a significant 9
amount of outreach to the business community and patrons as well to determine if there is a 10
better treatment for Bryant Street. 11
Vice-chair Gardias: Ok, so is there a chance that it will come back to our Commission after the 12 study is concluded or it will go directly into the investment phase. 13
14
Mr. Mello: We can bring back some concepts to the Planning and Transportation Commission if 15
you wish. 16
17 Vice-chair Gardias: It will be interesting to see what are some outcomes of the pop-outs and 18
some other studies that you are going to conduct, some investment. So thank you. 19
So the second question I have about the Railroad grade separation, as you may know, there was a 20
town meeting yesterday in Burlingame and they were just discussing the grade separation along 21
their tracks in Burlingame and I think the concept they had was just a partially elevate the tracks 22 and the press crossing roads and because the grade separation it just seems to me that it just 23
keeps increasing in the volume and the discussions may be not as intense yet, but, it may get 24
there in the next year or two. I was wondering if there was any discussions that you may be 25
aware of between the municipalities about solution or potential solution that would address grade 26
separation, Caltrain grade separation from San Francisco to San Jose. 27 28
Mr. Mello: San Mateo County already has a grade separation program through its sales tax 29
measure and they actually dedicate funding annually to different grade separations, I believe 30
Burlingame was able to secure some of that funding. In the discussions we were having 31
surrounding the different sales tax measure for Santa Clara County in November the preliminary 32 list of funding allocations includes $700 million dollars for grade separation within Palo Alto, 33
Mountain View and Sunnyvale. That’s still preliminary the VTA board hasn’t included, hasn’t 34
approved that officially yet. However, it’s looking like it’s going to make the final list, so that 35
would open up a pretty significant pot of funding for us to advance our grade separations. We do 36
talk with Menlo Park’s working on Ravenswood, Mountain View is doing a study on Castro 37 Street. We do talk to our counterparts, we have an RFP out on the street right now for services 38
related to this Capital Improvement Project, and we used a lot of materials from other 39
communities that already moved farther along than we are on grade separations. I don’t think 40
there is currently an opportunity for some kind of peninsula wide mega project that would fix all 41
of the grade crossings, but I think we are getting to a point where there is going to be better 42 coordination within Santa Clara County around prioritization of the different grade crossings. 43
44
Vice-chair Gardias: Ok, it looks like a good start. My concern was pretty much coming from 45
that grade separation in our minds, it just goes, it relates to the depressing, the tracks and then up 46
North, in San Mateo County, they pretty much talk about elevating the tracks. So pretty much 47 they think about different approach, it would be nice if somebody was thinking about putting the 48
ATTACHMENT B
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City of Palo Alto May 17, 2016 Page 4
common denominator among all of this different efforts. I think for now those are the questions I 1
had for you. Thank you for the answers. 2 3
Chair Fine: Commissioner Rosenblum. 4
5
Commissioner Rosenblum: Yes, thank you. A few questions, I just circled the big ticket items, so 6
mostly I am going to go just one by one, mostly items over $1 million dollars, but there’s just a 7 couple I am curious about that are below that threshold. The Cubberley amenities improvement, 8
there’s a number of things around Cubberley and the description it notes, I’m concentrating on 9
CB17000, but there are a number of items that are all stacked around Cubberley. It notes that it is 10
allocated pending the result of the Cubberley Master Plan, when is the Master Plan expected to 11
be done and how is this figure arrived at, is it the Master Plan is already proposed and the figures 12 here is about $1.5 million dollars are expected to be the result of that plan or are there a number 13
of scenarios expected to be developed? 14
15
Rob DeGeus, Director Community Services: Good afternoon Commissioners, Rob DeGeus, 16
Director of Community Services and this is Brad Eggleston, Assistant Director of Public Works. 17 So we are working on a Master Plan with Palo Alto Unified School District (PAUSD), we have 18
five years of the lease agreement to be able to work on that plan. We haven’t really gotten started 19
on it yet, this year will be the first year we really get down and work on the process of the Master 20
Plan, I think our approach with the capital work at Cubberley is to do what’s absolutely 21
necessary, roofing, those types of things and wait to see what the Master Plan will define as a 22 future of Cubberley before spending too much money, that we then have to rebuild. Brad do you 23
want to add? 24
25
Brad Eggleston, Assistant Director Public Works: Brad Eggleston, all that I would add is that if 26
you’re specifically asking about the CB17000 project, Cubberley amenities improvement, that 27 it’s discussing being placed in a reserve, that definitely there is no cost estimating for any future 28
projects that went into that, that was just kind of a round figure to place in a project and have 29
available for future uses. 30
Commissioner Rosenblum: Is there an estimate for the Master Plan process is supposed to be 31
decided upon, so this is just allocating money for reserve in the event the Master Plan is 32 approved to begin this work. Is that right? 33
34
Mr. DeGeus: That’s correct, the Master Plan will take two to three years to complete. 35
36
Commissioner Rosenblum: So then why would this money be allocated for the 2017 budget? 37 38
Mr. Eggleston: My understanding is that the first thought was to place the money for more 39
specific projects and then as we have some discussions about that, we decided to keep it in 40
reserve until decisions have been made. 41
42 Commissioner Rosenblum: Ok, thanks for the understanding. Me second question, are, they are 43
similar but they are two different projects. Probably not for you guys, EL17003, which is 44
probably the VA Hospital customer load requirements, $3 million dollars, and the question is, I 45
understand this is about upgrading the electrical capacity given the increased needs of the VA 46
Hospital. I am wondering , what is the VA Hospital’s responsibility in this, is this something that 47 the City has to bear the cost in conjunction with the Veterans Administration or if this is 48
ATTACHMENT B
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City of Palo Alto May 17, 2016 Page 5
something that, actually I just don’t know how the budgeting is apportioned when there’s a 1
Federal agency that is upgrading and therefore needs us to accommodate. 2 3
Dean Batchelor, Assistant Director Utilities: Dean Batchelor, Assistant Director Utilities. So the 4
way that that works is we have to extend some of our own infrastructure portions of it to, where 5
this new substation that they want to build on their premise so anything that’s built on the 6
substation costs is going to be relied on from the VA standpoint but we need to actually increase 7 our capacity from our other substations our internal substations so there’s going to be two 8
substations that we have to upgrade and then we have to trench and do some overhead 9
infrastructure improvements of about two and a half miles to get to where this new substation is 10
going to be. The City is obligated to fix those pieces so that we can serve that one substation of 11
theirs but the cost of the substation on their property and the building of their substation will 12 actually be on the VA. That’s how we budgeted, we looked at what our cost would be for 13
increasing our capacity as well as what it takes to do all the infrastructure improvements. 14
15
Commissioner Rosenblum: And a quick question for staff. Jonathan is this something where our 16
purview is to try to figure out if this is in accordance with our Comp Plan is not really around, 17 does the VA, who is responsible for what, but we’re just looking is this in accordance with the 18
Comp Plan. Is that right? 19
20
Mr. Lait: That’s correct, the former. 21
22 Commissioner Rosenblum: Ok, second just a clarifying question then. EL17006, which is 23
electrical pole replacements for fiber and the description is this would be a Google project and 24
this would be our estimate for what the City would have to do in replacements for 25
accommodating but that final costs are not yet there? I would just like to understand, this is the 26
biggest single item on the ledger, I think at $5 million dollars. So, I would like to understand this 27 one a bit better. 28
29
Mr. Batchelor: I think the thing is what we have to do Commissioner it still hasn’t been 30
determined yet if we are going to get into this co-build with Google at this period of time, if we 31
do then we’ve estimated out that about 600 poles, about 10 percent of our poles need to be 32 replaced because of the height limit or that the pole just needs to be replaced because the loading 33
of the calculations of the pole are not going to be able to withstand the extra cables on that pole 34
so we will have to redo those poles. Now if the City decides that we’re not going to go joint 35
venture with them, then at that point Google would be on the hook for that cost of what those 36
pole replacements would look like. But we needed to put it in the budget because we don’t know 37 where we are going to go at this period of time. 38
39
Commissioner Rosenblum: Ok. And then finally at least from my perspective, things understand 40
around the downtown mobility, I think this might be someone different which is the downtown 41
parking, downtown mobility and safety improvements PL16001. So, this estimate is highly 42 specific $563,143 and it’s for planning design and construction of multi-modal safety 43
improvements in downtown Palo Alto, so does that mean this already, we’ve had engineering 44
estimates that this dollar figure feels like it’s down to the construction cost. Have we already 45
designed this? 46
47 Mr. Mello: The number is not a round number because it includes staff time allocated to the 48
project as well which gets us to the kind of wonky numbers that we see in here. The estimate is 49
ATTACHMENT B
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City of Palo Alto May 17, 2016 Page 6
based on our best guess planning level cost estimate that’s for the type of improvements that we 1
would like to do downtown which includes signalization, and signing and striping and some 2 other potential changes. 3
4
Commissioner Rosenblum: Thanks. That’s my final question, that’s it for me. 5
6
Chair Fine: Commissioner Waldfogel. 7 8
Commissioner Waldfogel: Thank you. Josh, since you’re here right now, I will just ask you one 9
very tactical question, which is whether the Embarcadero Signals are budgeted in this cycle or, 10
there seems to be some concern about whether those have been addressed yet. The ones at Town 11
and Country. 12 13
Mr. Mello: The signal at the Town and Country driveway and the adjacent signal at the 14
pedestrian crossing were updated last year, they are not yet linked to our central traffic control 15
system, we are working on that right now. We have to do a wireless connection because we can’t 16
get through across the Caltrain Corridor with fiber, the rest of our signals are linked by fiber so 17 that one is in process, we are going to link that one by mobile, probably a mobile cellular 18
technology. And at that point we are going to coordinate all the signals along Embarcadero Road 19
all the way from 101 to the Town and Country driveway, we are also going to secure the timing 20
plan from Caltrans for the Embarcadero at El Camino signal and we are going to integrate our 21
signal timing with Caltrans as best as we can. That’s going to be done with internal resources this 22 year. 23
24
Commissioner Waldfogel: Ok, so it’s all built in. 25
26
Mr. Mello: Yes. 27 28
Commissioner Waldfogel: Great, that’s fantastic. I think a lot of people will be thrilled with that. 29
The other one, I’m not sure if there is a specific line item for this, but, is there any category I 30
should be looking at for Smart City investments or data collection infrastructure? I mean is that a 31
traffic issue or sort of, whose area would that be in? No one wants to touch that one. 32 33
Lalo Perez, Chief Financial Officer: Lalo Perez, Chief Financial Officer. We have some ad hoc 34
projects but not a central project. That’s why we were looking at each other, saying what do we 35
have? Jonathan Reichenthal has started an internal group of staff members to try to get this 36
coordinated and have some visibility to it as well. We would have to dig through and figure out 37 which ones fall into that category and submit them to you. We probably wouldn’t be able to do it 38
right off the bat. 39
40
Commissioner Waldfogel: That’s great. I think it’s something that probably ought to be visible in 41
some fashion. Although I don’t know a hundred percent if it’s a capital project or how much of 42 that would be an innovation fund or where that would fit. 43
44
Mr. Perez: It probably mostly operating but I could see some of it falling in capital and would 45
probably land more on the IT fund if anything. 46
47 Commissioner Waldfogel: Although some of the sensors might fall onto transportation or other 48
categories. I don’t think anybody else wants to weigh in on that one before I go on to. Then the 49
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City of Palo Alto May 17, 2016 Page 7
other one I wanted to raise is the Bayland Flood Protection Levee Improvement, which I guess is 1
an RND, it’s a planning exercise this year. I’m just curious, is there a Baylands Master Plan 2 coordination that’s going on, I mean in conjunction with that project or what’s the status of that 3
project? 4
5
Mr. Eggleston: Brad Eggleston, Assistant Director Public Works. We are coordinating that with 6
the San Francisquito Creek Joint Powers Authority (JPA), so what’s currently going on is the 7 feasibility study phase of the project and then the CIP project you’re looking at is to add funding 8
to that for an actual design. Yes, during the feasibility study phase, there is coordination with 9
City staff, between the JPA and their consultant, City staff from various departments including 10
the Planning department and consideration of the Baylands Master Plan. 11
Commissioner Waldfogel: But it’s also looking at things like coordination with the Golf Course 12 Plan and I mean whether the levee protects Golf Course or doesn’t protect it or airport or other 13
facilities. 14
15
Mr. Eggleston: The Water Quality Control Plant. 16
17 Commissioner Waldfogel: Water Quality Control Plant. 18
Mr. Eggleston: The landfill. 19
20
Commissioner Waldfogel: That’s a small detail, so it’s all coordinated around those activities? 21
22 Mr. Eggleston: Yes it is. 23
24
Commissioner Waldfogel: Great, thank you. 25
26
Chair Fine: Thank you, I just have a couple comments and a few questions. One, I really 27 appreciate this chart that staff put together. It’s really nice, the only comment is, it would be 28
helpful on this green chart is to have where the funding source is so you don’t have to go digging 29
for that, but otherwise I found it really helpful and easy to understand. My only question 30
actually, and I just wanted to get some clarity here. On EL17004, Stanford customer load 31
requirements, it’s a half a million bucks for the medical facility and Stanford Shopping Center. I 32 was talking to Commissioner Waldfogel before, I was hoping somebody could explain what is 33
the status of utilities on Stanford? Do we pay for it? Does Stanford pay the City back for it? How 34
does that work? 35
36
Dave Yuan: Dave Yuan, Utilities Administration. For that project, I think we are estimating 37 about 80 percent reimbursement by Stanford and the rest, the City would probably fund. 38
39
Chair Fine: Great, thank you very much. So just the last comment there, it would be helpful if 40
some of these projects if we could see where the City’s being reimbursed. I saw there is another 41
one by the, I think the Air Quality Management District for the, I think the EV chargers. That’s 42 stuff the City should be promoting and saying we’re getting our money back from another 43
source. Otherwise, I don’t have any other questions, but I will open it up to anybody else. Vice-44
chair? 45
46
Vice-chair Gardias: Thank you, Mr. Chairman. A couple of supplemental questions about the 47 chargers for the City, I think those chargers would be in the City Hall garage. This is right? 48
49
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City of Palo Alto May 17, 2016 Page 8
Mr. Eggleston: I’m sorry, can you repeat the question? 1
2 Vice-chair Gardias: The electrical chargers would be installed in this garage right? 3
Mr. Eggleston: Actually the grants that the City has received and has indication that we expect to 4
receive have them installed in several different garages downtown and I believe also in the 5
California Avenue district. Really this project where you see the Civic Center electrical upgrade 6
this had previously been scheduled I believe in fiscal year 18 or 19 and what we’ve done now is 7 created a new project where we combined the electrical upgrade with Civic Center along with 8
the fronting of the money needed for the grant for the EV chargers in the hope that we will be 9
able to add some capacity here and shift some of those chargers to the Civic Center garage. 10
11
Vice-chair Gardias: I see, thank you for clarification. What I was getting to was pretty much, I 12 live by Rinconada library, prior, it was Main library. There are four charging stations over there, 13
and those are always taken or most of the time taken. It seems to me that pretty much and it may 14
be because some private vehicle owners, they just use charging stations in lieu of their home 15
charging because they have no ability probably to charge it at home. But regardless, it seems to 16
me that the capacity of those stations was not properly estimated because there should be at least 17 maybe six or eight of them to make sure there are empty stalls for some additional cars that 18
would like to just power their batteries. I’m just making this comment, just please take a look at 19
the estimate because it seems to me that demand may be greater than it was assumed at the 20
library and it may be the same reason, may be the same case at other City garages that pretty 21
much the public may not have the capabilities at their homes or residences so they pretty much 22 come to the public spaces. 23
24
Mr. Eggleston: Thank you, that’s very helpful. It’s something I think is a future step to develop a 25
kind of Master Plan for where throughout the City the demand is and how many chargers should 26
be added. 27 28
Vice-chair Gardias: And the next question is because, as you may know, there is a discussion 29
about those charging stations that I think, they are not, they are specifically regulated this way 30
that the public utilities like Con Edison or Pacific Gas & Electric, they don’t have ability to, they 31
don’t have legal power to invest in those charging stations. I believe that is the current legal 32 landscape, so for this reason small operators invest in those charging stations and they develop 33
the network. I think that’s currently the landscaping in the State of California. I think this was 34
changing or maybe it just changed recently because the capacity was under-capacitated and there 35
was not enough of those charging stations giving the demand. So, my question to you is because 36
it seems to me that we rely on the grants, what is the chance are supposing to using the public 37 money that there could be a private capital investing in those in Palo Alto? 38
39
Mr. Eggleston: I have to say, it’s not something I have specifically worked on. I know there is a 40
policy discussion that’s scheduled or going to be scheduled soon that’s going to occur with the 41
Council Policy and Services Committee that’s going to consider the City’s current policy that 42 charging is free and essentially provided by the City, so that may as well be part of that same 43
discussion. 44
Vice-chair Gardias: Thank you. And then just to, hold on one second. Different question from a 45
different perspective if you don’t mind. Going back to a discussion you had with a colleague of 46
mine, Asher Waldfogel, about the levee’s. When I was reading this funding for the San 47 Francisquito Creek Levee Improvement, it stroke me it is specifically designated for the levee 48
ATTACHMENT B
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City of Palo Alto May 17, 2016 Page 9
protections as opposed to complex study of flood protection. Do we already know that resolution 1
of that area would be to strengthen levees of San Francisquito or that still open? 2 3
Mr. Eggleston: are you referring to fluvial flooding, from stream flooding? What this study is 4
intending to do is to look at the issue of tidal flooding as it relates to sea level rise and for San 5
Francisquito Creek, there’s a separate effort, a planning effort underway with the San 6
Francisquito Creek Joint Powers Authority and in fact, that’s been a long standing effort and the 7 first phase of that overall project which is the Highway 101 to the Bay project which is going to 8
rebuild the levees in that area and provide flood walls is actually to begin construction this 9
summer. 10
11
Vice-chair Gardias: That’s right, I was thinking about that portion, 101 to the Bay because that’s 12 pretty much where the levees are, along San Francisquito Creek. I was wondering if that is 13
already given because there is still some marshes on the other side, on the western side of the 14
San Francisquito Creek adjacent to 101. I was wondering if there was an option to utilize those 15
marshes as eventual overflow when the flood level would be rising as opposed to just creating 16
the wall along the creek. 17 18
Mr. Eggleston: Actually, I believe that is a feature that has been built into the JPA’s design for 19
that particular levee. If you’re thinking of the tract of salt marsh that’s kind of to the northwest of 20
the levee, I believe they’ve built in, what they are calling a degrade of the levee in that area so 21
that flows over a certain capacity flows over the levee into the wetland. 22 23
Vice-chair Gardias: Very good, thank you very much for the clarification. Thank you. 24
25
Chair Fine: Just one other comment and I want to hand it back to everyone else as well. On page 26
3 of the table, there is a number of projects around the City Hall, the Civic Center, electrical 27 upgrades, Foothills which are referencing C4 as their primary Comprehensive Plan goal. C4 is 28
more about collaborative relationship with the school district and maximize use of school 29
facilities, is that purposeful? I was just wondering, I just didn’t see that complete connection 30
there. So, there’s just a whole row of them on pages 3 and 4 of the table from 17008 to 21001. I 31
think the reason I’m asking is the secondary goal that is cited here C24, reinvesting aging 32 facilities to improve their usefulness and appearance seems like that might be the primary. 33
34
Mr. Lait: Yes, we can certainly take a look at that and make that adjustment. 35
36
Chair Fine: It just seemed like C4 is being used in places it might not apply. Any other questions, 37 comments? Commissioner Rosenblum? 38
Commissioner Rosenblum: Just as a comment, I personally as with all of these infrastructure 39
reviews, they always fit our Comp Plan to a certain extent. I mean it’s very hard not to fit our 40
Comp Plan which emphasizes having top of the line infrastructure. It’s very difficult, one thing I 41
have asked for in the past and I’ll ask for again, it’s difficult to really understand how well this 42 fits our Comp Plan without having in the context of other potential plans. So, when you put this 43
together, there were choices made, there’s probably a long list of things that everyone in the City 44
wants, then you made some tradeoffs and decided this is what we are going to go for within a 45
budget constraint and so one thing that would be helpful to the Commission would be to 46
understand different packages and to say, ok, here’s a choice that probably with a higher budget, 47 here’s a choice with a lower budget, we pick this and here’s why and I think it would be helpful 48
for us help give better input. The way we currently try to evaluate whether or not this is 49
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City of Palo Alto May 17, 2016 Page 10
alignment with the Comp Plan is exactly what you do, which is you take each line item and you 1
find the relevant line in the Comp Plan that refers to something like that item and going back and 2 making sure that that’s a one-to-one connection. I think that all of us trusts that you’re mapping 3
was done properly. Given what this is, I find it difficult to say this is not in align with the Comp 4
Plan, everything here seems quite logical, there’s some items that for a matter of clarity as Chair 5
Fine referred to, I would recommend adding so for example, what things are being reimbursed 6
for, what things are merely being budgeted for but not intended to be spent that year and that 7 includes some fairly large ticket items so that would change the idea of what you are actually 8
spending and what portion of it would be either back to you or would not actually go out the 9
door. So from a legibility standpoint I think that would be useful for Council if this goes further 10
and for anyone who is trying to review this budget, but from my standpoint if there are no other 11
questions I am happy to propose a Motion. 12 13
Chair Fine: I generally agree with Commissioner Rosenblum on that and one other way to think 14
of it, especially now if we’re going through the Comp Plan is, this may be a little unorthodox, 15
but if the City were to essentially given a hundred bucks, where would you put those dollars on 16
each Comp Plan goal and that would kind of give us a way to add up, you know, we should 17 really be focusing on C24 because there’s fifteen dollars there and fifteen dollars being spent 18
towards that, so it’s an issue of prioritization. With that, I am also open for any Motions. I think 19
Commissioner Rosenblum was going to. 20
21
Commissioner Rosenblum: Sure, I will make a Motion that we find the 2017-2021 Capital 22 Improvement Plan consistent with the Comprehensive Plan and forward it to the Finance 23
Committee and City Council. 24
25
Chair Fine: There’s a Motion on the floor for us to recommend approval of this and forward it on 26
to the Finance Committee. Do we have a second? 27 28
Commissioner Waldfogel: I second. 29
30
Chair Fine: Commissioner Waldfogel seconds, would you like to speak to your Motion? Would 31
you like to speak to your second? All in favor? And the Motion passes unanimously. Excellent. 32 Thank you all so much for that item, thank you everyone who showed up and for the 33
information, you helped us, you provided to us. There’s no approval of Minutes, no Study 34
Sessions. Any Committee Reports? Any questions? Alright, we are adjourned at 12:44 and thank 35
you all so much for the lunchtime meeting. Thanks to staff to for organizing it. 36
37
Adjournment 12:44 38
ATTACHMENT B
B - 10
Fiscal Year 2017 Proposed Budget
Finance Committee
May 3, 2016
2
Overview
•Citywide Funds
•Internal Services Funds
•General Fund
•Enterprise Funds
•Capital Improvement Program
•Summary
3
Citywide Funds
FY 2017 Citywide Revenues
$544.4 Million
4
FY 2017 Citywide Expenditures
$626.1 Million
5 6
GF ENT Other* Total
FY 2016 Adopted Budget 599.31 351.09 89.70 1,040.10
FY 2016 Approved Adjustments 1.40 ‐ 0.60 2.00
FY 2016 Modified Budget 600.71 351.09 90.30 1,042.10
FY 2017 Reallocations 0.38 (1.48) 1.10 ‐
FY 2017 Net Additions 2.85 4.00 3.15 10.00
Subtotal of 2017 Changes 3.23 2.52 4.25 10.00
FY 2017 Proposed Budget 603.94 353.61 94.55 1,052.10
Citywide Position Changes
*Other Funds are Internal Service Funds, Special Revenue Funds, and the
Capital Fund
CMR #6932: ATTACHMENT R
7
FY 2017
Proposed
$
Change
%
Change
FY 2017
Proposed
$
Change
%
Change
Salary 70,972 3,704 5.5% 101,410 5,289 5.5%
Pension 21,164 1,920 10.0% 28,835 2,553 9.7%
Healthcare 13,336 844 6.8% 19,163 1,009 5.6%
Retiree Health 9,323 (342)‐3.5% 13,129 268 2.1%
Other Benefits 2,053 (1,927)‐48.4% 2,717 (2,256)‐45.4%
Total $ 116,848 $ 4,199 3.7% $ 165,255 $ 6,863 4.3%
Expenses
Category
ALL FUNDSGENERAL FUND
Average Salary & Benefit Changes
(Compared to FY 2016 Adopted Budget)
8
Internal Service Funds
9
FY 2016
Adopted
FY 2017
Proposed
%
Change
FY 2016
Adopted
FY 2017
Proposed
%
Change
General Benefits
Fund 454 ‐ ‐100.0% 768 ‐ ‐100.0%
General Liability
Fund 1,299 ‐ ‐100.0% 2,369 ‐ ‐100.0%
Print & Mail Fund 939 842 ‐10.4% 1,553 1,297 ‐16.4%
Retiree Healthcare
Fund 9,665 9,323 ‐3.5% 14,445 13,808 ‐4.4%
Technology Fund 6,065 6,320 4.2% 13,253 13,788 4.0%
Vehicle Fund 3,696 5,021 35.9% 6,637 8,885 33.9%
Workers'
Compensation Fund 2,780 1,250 ‐55.0% 3,569 1,871 ‐47.6%
Total $ 24,897 $ 22,755 ‐8.6% $ 42,593 $ 39,650 ‐6.9%
Fund
ALL FUNDSGENERAL FUND
Internal Service Fund Changes
(Compared to FY 2016 Adopted Budget)
10
General Fund
FY 2017 General Fund Revenues
$193.1 Million (+$4.9 million BSR)
11
FY 2017 General Fund Expenditures
$198.1 Million
12
13
Major Expense Changes From
Long Range Forecast
Expense Category
FY 2017
LRFF
FY 2017
Proposed
$
Change
%
Change
Allocated Charges 18,028 16,752 (1,276)‐7.1%
Contract Services 14,475 17,444 2,970 20.5%
General Expenses 10,469 13,002 2,533 24.2%
Operating Transfers‐Out 1,834 4,906 3,071 167.4%
Salary & Benefits 119,521 116,848 (2,673)‐2.2%
Transfer to Infrastructure 24,213 22,813 (1,400)‐5.8%
14
One‐Time Budget Balancing
Use of Budget Stabilization Reserve: funding at 18%
or $35.6 million ($4.9 million General Fund)
–Goal will be to reset the BSR back to the 18.5% target
level
Reduce Charges for Internal Service Funds ($5.0
million all funds; $3.1 million General Fund)
Budget “Uncertainty Reserve” ($2.0 million General
Fund)
15
Enterprise Funds
16
Enterprise Funds
Revenues & Expenses
$-
$50
$100
$150
$200
Revenue Expense
17
FY 2017 Utility Rate Changes
Utility Service
Proposed
Rate Change
Electric 11%
Gas 8%
Wastewater 9%
Water Utility 6%
Refuse 9%
Storm Drain 3.2%
Increase the average residential bill by about 8%, for a total increase of about $22.42 per month.
18
Capital Budget Overview
19
Capital
Improvement
Funds
48%
(101 Projects)
Enterprise
Funds
44%
(92 Projects)
Internal Service
Funds
8%
(18 Projects)
Fiscal Year 2017‐2021 Proposed
Projects by Fund Type (211 Projects)
20
Buildings &
Facilities
45%
($120.9 million)
Parks & Open
Space
11%
($30.7 million)
Streets &
Sidewalks
16%
($42.7 million)
Traffic &
Transportation
23%
($61.3 million)
Unallocated
Salaries &
Benefits
5%
($13.5 million)
Fiscal Year 2017‐2021 Capital
Improvement Fund ($269.2 million)
21
Buildings &
Facilities
42%
($30.2 million)
Parks & Open
Space
24%
($17.5 million)
Streets &
Sidewalks
15%
($10.8 million)
Traffic &
Transportation
17%
($11.8 million)
Unallocated
Salaries &
Benefits
2%
($1.5 million)
Fiscal Year 2017 Proposed Capital
Improvement Fund ($71.9 million)
22
Public Safety Building ($57.0 million)
Bicycle/Pedestrian Transportation Plan ($20.0 million)
Replacement of Fire Stations 3 and 4 ($14.2 million)
Downtown Parking Garage ($13.0 million)
California Avenue Parking Garage ($9.6 million)
Charleston/Arastradero Corridor ($7.5 million)
Highway 101 Bicycle/Pedestrian Bridge ($4.7 million)
Byxbee Park Completion ($2.8 million)
Infrastructure Contingency Reserve ($30.0 million)
Infrastructure Management Plan
($128.8 million, +$30 million reserve)
23
Summary
24
FY 17 Citywide Budget Proposals
Project Safety Net: Track Watch & Collaborative
($1.0 million General Fund)
City Streetlights and Traffic Signals Electricity Costs
($2.3 million General Fund)
Citywide FY17 Capital Improvement Budget ($170.5
million, $639.5 million 5‐year plan)
Capital Infrastructure Management Plan ($128.8
million)
–($158.8 million with a plan to establish a $30 million
reserve for anticipated cost increases)
Salary & Benefit Increased costs ($6.9 million all funds)
Budget Uncertainty Reserve ($2.0 million General Fund)
25
Costs/Revenues ‐Not Included
Year 1 Transportation costs to mitigate traffic issues
Fire Services Contract with Stanford University
Animal Shelter Service Delivery
Transient Occupancy Tax increases related to two new,
potential hotels
Potential acquisition of the downtown Palo Alto Post Office
Junior Museum and Zoo
Cubberley Community Center Master Plan
Unfunded Actuarial Liability of $447.5 million for Pension and
Retiree Healthcare Trusts ($298.6 million General Fund)
Parks Master Plan
City owned assets operated by non‐profit organizations
Cadillac Healthcare Federal Excise Tax
Year 10Potential recession
26
Looking Forward
Manage expectations of the City Council, the
community, and the staff
Ensure we are a competitive employer of choice
Address FY 2018 structural imbalance between
General Fund revenues and expenses
Rising Pension and healthcare costs
Unfunded liability
27
Department Presentations (with
significant budget proposals only)
o Department overview
o Accomplishments
o Initiatives
o Significant budget proposals
o Major capital projects, if applicable
Finance Committee Questions
Fiscal Year 2017 Finance
Committee Review
28
FY 2017 Proposed Operating
Budget
City Attorney
Operating Budget pp. 141‐148
Finance Committee
May 3, 2016
29
FY 2017 Proposed Operating
Budget
City Auditor
Operating Budget pp. 149‐157
Finance Committee
May 3, 2016
30
FY 2017 Proposed Operating
Budget
City Clerk
Operating Budget pp. 159‐167
Finance Committee
May 3, 2016
31
FY 2017 Proposed Operating
Budget
City Council
Operating Budget pp. 169‐172
Finance Committee
May 3, 2016
32
FY 2017 Proposed Operating
Budget
City Manager
Operating Budget pp. 173‐182
Finance Committee
May 3, 2016
33
Department Overview
The City Manager’s Office provides leadership
and professional management to the City
government in service to City Council policies,
priorities and community civic values.
The office is guided
by the values of
place, community,
stewardship, civics
and public service.
34
Accomplishments
Advanced City Council Priorities through
department programs and initiatives
Implemented City’s Ethics Training
Increased focus on organizational planning and
performance management
Executed First Phases of Business Registry
Delivered communication strategy on key
initiatives
35
Fiscal Year 2017 Initiatives
Implement City Council Priorities
Support City Council
Community Responsiveness: Troubleshooting and
Problem Solving
Leadership and Performance Management
Strategic Communication Support
Economic Vitality Program
Federal and State Legislative Programs
36
FY 2017 Proposed Operating
Budget
Office of Sustainability
Operating Budget pp. 307‐313, 468‐469
Finance Committee
May 3, 2016
37
Department Overview
Mission: Lead the organization and community in
promoting a culture of environmental
sustainability by developing, coordinating, and
leading initiatives citywide and regionally.
Purpose: Promote and facilitate an
environmentally sustainable future in ways that
improve quality of life, grow prosperity and
build resilience, and provide leadership in the
region and to other communities.
37 38
Accomplishments
Developed Sustainability and Climate Action Plan
(S/CAP)
Procured Sustainability Dashboard system
Held multiple Study Sessions with City Council and
UAC
Raised $350k external funding for sustainability
initiatives
Established ‘Electric Vehicle First” policy for City
fleet.
39
Fiscal Year 2017 Initiatives
Complete development and adoption of the
Sustainability and Climate Action Plan (S/CAP)
Pilot local and regional “mobility as a service”
initiatives
Implement Sustainability Dashboard
performance tracking system
Further integrate sustainability policies,
programs and practices into City operations
40
Significant Budget Proposals
Sustainability Initiatives Contract
Funding, $110,000
Sustainability Contingency
Account, $250,000
41
FY 2017 Proposed Operating
Budget
Human Resources Department
Operating Budget pp. 253‐273, 475‐478
Finance Committee
May 3, 2016
42
Department Overview
Mission
Purpose
Divisions
•Compensation
•Employee and Labor Relations
•Organization and Employee Development
•Recruitment
•Risk Management, Safety & Workers’ Compensation
43
Accomplishments
Four Union Agreements Completed:
IAFF, PAPOA, SEIU and PAPMA
Filled approximately 270 vacancies
In‐depth Ethics Training for 960 employees
Complied with new IRS Affordable Care Act
(ACA) reporting requirements
Updated minimum wage ordinance and
implemented for City hourly staff
44
Fiscal Year 2017 Initiatives
Address recruiting challenges
Support the Healthy City/Healthy
Community priorities
Enhance City‐wide training including e‐
learning options
Continue improvements in personnel actions
and electronic record‐keeping
Address ergonomic and safety programs
45
Significant Budget Proposals
General Fund
Hourly Staff Alignment, 0.74 FTE, $36,000
General Liability Fund
Reduced citywide allocation
Workers’ Compensation Fund
Workers’ Compensation Manager, 1.00 FTE, $171,000
Reduced citywide allocation
General Benefits Fund
Employee Wellness Program, 0.48 FTE, $23,000
Reduced citywide allocation
46
FY 2017 Proposed Operating
Budget
Information Technology
Department
Operating Budget pp. 275‐288
Capital Budget pp. 629‐656
Finance Committee
May 3, 2016
47
Department Overview
Mission
Purpose
Divisions
•Office of the CIO
•IT Project Services
•IT Operations
•IT Enterprise Services
•Information Security Services
48
Accomplishments
Awarded Leading Digital City –Named 4th Top City
Outstanding Achievement in Local Government
Innovation Award from the Alliance for Innovation
Traffic Signal System Upgrade
Fire Vehicle Technology Upgrades
E911 Implementation
Deployment of Sharepoint Online
PC and Data Center Cloud Backup Systems
49
Top Fiscal Year 2017 Initiatives
Council Chambers Equipment Replacement
Office 365
Smart City Strategy
ERP Planning and System Selection
Fiber/Wireless Efforts
Geographic Information System Assessment
50
Significant Budget Proposals
Data Center Failover ($120,000)
Security Penetration Testing ($35,000)
Implementation of a Project Management
Tool ($50,000)
Staffing Adjustments:
IT Operations, Hourly to FTE Desktop Technician,
$59,024
IT Operations, FTE Technologist to Sr. Technologist,
$20,331
51
FY 2017 Proposed Operating
Budget
Administrative Services Department
and
Printing & Mailing Fund
Operating Budget pp. 183‐199
Finance Committee
May 3, 2016 52
Department Overview
Mission
Purpose
Divisions
•Administration
•Accounting
•Purchasing and Contracts
•Office of Management & Budget
•Property Management and Acquisition
•Treasury (including Printing and Mailing Fund)
53
Accomplishments
Implemented eProcurement system, PlanetBids
Began collection of Transient Occupancy Tax for
AirBNB rentals
Implemented GASB 68 standards for financial
reporting of pension liability
Maintained City’s AAA credit rating
54
Fiscal Year 2017 Initiatives
Implement integrated online parking permit
program
Identify funding sources and investment
options to address City’s unfunded pension and
healthcare liabilities
Implement a technologically focused training
program to facilitate staff use of financial,
human resources and payroll systems
Develop an online dashboard (presentation) of
City financial and budget data for the public to
access and assess City fiscal performance
55
Significant Budget Proposals
Temporary Staffing Adjustments
Purchasing, $53,974
0.48 FTE Contract Administration Specialist to
maintain service level and reduce backlog
Administration, $74,880
0.48 FTE Management Specialist to implement
systems training
56
FY 2017 Proposed Operating
Budget
Non‐Departmental
Operating Budget pp. 467‐470
Finance Committee
May 3, 2016
57
Description
The General Fund Non‐Departmental budget includes
revenue and expenditure appropriations not related to a
specific department or function. These costs typically
benefit the City as a whole and include such items as
Cubberley lease payments to Palo Alto Unified School
District. The Non‐Departmental budget may also include
estimated provisions or placeholders for certain revenues
and expenditures that have not yet materialized or
distributed at the time the budget is developed or adopted.
These items can be one‐time or ongoing depending on its
nature and frequency
58
Non‐Departmental
Significant Budget Adjustments & Proposals
General Fund Transfer to Electric Fund: Traffic
Signal and Streetlight Costs, $2,266,122
Establish Budget Uncertainty Reserve, $2,000,000
Capital Transfer Adjustment, ($1,400,000)
Sustainability Contingency Account, $250,000
2016 Elections Funding, $150,000
FY 2017 Proposed Operating
Budget
May 3rd Recap
Finance Committee
May 5, 2016
1 2
Current Status
FY 2017 Proposed Operating
Budget
Fire Department
Operating Budget pp. 239‐251
Finance Committee
May 5, 2016
3
Department Overview
Mission
Purpose
Service Programs
•Fire Suppression
•Emergency Medical Services
•Fire Prevention Bureau
•Employee Fire/EMS Certification Training
4
Accomplishments
5,270 medical/rescue calls with 92% of EMS call responses
within 8 minutes and 99% with a paramedic on scene in
12 minutes
135 fire incidents with 86% of responses within 8 minutes
1,964 fire inspections, 13% increase from FY 2015
Key succession planning tools and training schedule
Medical Priority Dispatch and Auto Aid agreements
Celebrated 40thanniversary of paramedics & ambulances
Completed successful negotiations for new labor contract
5
Fiscal Year 2017 Initiatives
Develop operational efficiencies, focusing on
performance and operational readiness
Invest in training plans and succession
planning
Evaluate community and public health risks
6
Continue working with Stanford
to renegotiate service contract
Modernize and replace essential
equipment
Significant Budget Proposals
Fire Station Furniture – Fitness Equipment,
$125,000
California Incident Command Certification
System Training, $38,000
Realignment of Development Services
Staffing, 2.15 FTE
7
FY 2017 Proposed Operating
Budget
Office of Emergency Services (OES)
Operating Budget pp. 299‐306
Finance Committee
May 5, 2016
8
Department Overview
Mission
Purpose
Objectives
•Operational Readiness
•Risk Assessment; Situational Awareness
•Community Education; Engagement
•Training & Exercises
9
Accomplishments
Updated City Emergency Operations Plan (EOP)
San Francisquito Creek Multi Agency Coordination
Training of Emergency Services Volunteers;
Community Sand Bag Days with Public Works
StormReady Community Certification
Critical Infrastructure & Key Resources Survey,
School Map Update
Super Bowl 50: significant support to Stanford
University and other regional partners
10
Fiscal Year 2017 Initiatives
Training: Staff & Community
Planning: Local Hazard Mitigation and
Adaptation Plan, Continuity of Operations
Plan, Department Emergency Plans, regional
planning
Infrastructure Technology: Improve efficacy
of the City’s EOC; Exploration of energy
resilience strategies (i.e. solar power for
critical systems, new electric ATV, etc.);
Public Safety Building
11
Significant Budget Proposals
None
12
FY 2017 Proposed Operating
Budget
Police Department
Operating Budget pp. 331‐343
Finance Committee
May 5, 2016
13
Department Overview
Mission
Purpose
Divisions
14
•Field Services
•Personnel and
Training Services
•Investigative Services
•Technical Services
•Traffic, Parking &
Special Event Services
•Animal Services
Accomplishments
Received 135 citizen commendations in FY 2015
Development of the Tri‐City Records Management
System (RMS)
Regional preparedness initiatives and exercises,
including the Silicon Valley Regional
Interoperability Authority
15
Regional and Statewide
initiatives to ensure
vehicle occupant safety
and combat drunk driving
Fiscal Year 2017 Initiatives
Replace 9‐1‐1 phone equipment
New curriculum for Citizen’s Academy
Public Safety Building
Implement new Records Management
System
Migrate to 700 MHz Regional Radio
System
16
Significant Budget Proposals
Track Watch (Project Safety Net), $824,000
Police Vehicle Modems, $100,000
17
FY 2017 Proposed Operating
Budget
Community Services
Department
Operating Budget pp. 201‐221
Finance Committee
May 5, 2016
18
Department Overview
Mission
Purpose
Divisions:
•Administration
•Human Services
•Arts & Sciences
•Open Space, Parks & Golf
•Recreation
19
Accomplishments
20
Human Services ‐Community Forums on Senior Services,
Veterans Homelessness, Domestic Violence and Implicit
Bias
Arts & Sciences –Art Center and Children’s Theatre
increased audiences, attendance and outreach, dynamic
new Public Art Conversation, MakeX, JMZ Initiative
Open Space, Parks & Golf –Byxbee Park, Scott Park, El
Camino Park and Monroe Park, Magical Bridge Playground
Recreation –Mitchell Park Community Center, Teen
Services, New Special Events
Fiscal Year 2017 Initiatives
21
•Work on the Cubberley Master Planning Process with
PAUSD
•Build on the Healthy City Healthy Community Priority:
•2nd Annual Health Fair
•New Resident Welcome Packet
•Workplace Health & Wellness Forum
•Complete the Parks & Recreation Master Plan
•Complete the Public Art Master Plan
•Ensure Mitchell Park Library & Community Center is a
vibrant, welcoming and dynamic experience for all
•Invest in CSD Staff – Engagement, Creativity, Service
Significant Budget Proposals
22
•Collaboration with Santa Clara County for Homeless Services
and housing subsidies
•CSD Service Delivery Enhancements ‐Increased costs in
several programs off set by revenues, e.g.
•New Preschool at Mitchell Park
•Art Center Classes and Marketing
•Children’s Theatre Staffing
•Open Space Technicians for expanded Open Space and Trail
Maintenance
•JMZ Market Analysis and Collections Management (one‐time)
•Golf Course Reconfiguration Project –Anticipated Project
Start July 1, 2016
Teen Services
Bryant St. Garage Fund ‐Grant Program
23
•Bryant Street Garage Teen
Program Staffing $33K
# of
Grants
Dollars
Spent
# Teens
Impacted
FY15 7 $7,430 550
FY16 18 $12,208 1,600
FY17*40 $25,000 2,500
*Projected
Golf Course Reconfiguration Project
24
•Pending permits to begin renovation and reconfiguration of the existing
Palo Alto Municipal Golf Course
•FY 2016 estimated net loss of $923k, projected net loss in FY 2017 of
$825k
Golf Course
Construction Cost Increase for base bid
$9.6M lowest bid in 2014, $10.9M estimate in 2016
Higher estimate attributed to less competitive environment,
general inflation, and Prevailing Wage requirement
$7.7M to $8.3M in COPs/Debt issuance (Annual Debt
Service $534,000 ‐$569,000)
Reconfiguration July 2016 –October 2017
Estimated Financial Projections
FY2018 FY2019
Revenue Projection:$2.1M $2.8M
Operating Expense: $2.0M $1.9M
Debt Service: $0.6M $0.6M
Capital Reserve:‐$0.2M
Net Income (Loss):($0.5M)$0.1M
Permit Update
7
Project Safety Net Collaborative &
Means Restriction
26
FY12 – FY16
SUMC $2M
FY17 Proposed
PSN Collaborative $424,506 $270,000*
Means Restriction - Track Watch,
Fencing, Cameras
$1,490,494 $824,000
Total Spending $1,915,000 $1,094,000
Remaining SUMC (est. June 30, 2016 $85,000 NA
*Project Safety Net (PSN) Collaborative:
Staffing: Executive Director 1.0 FTE & Program Specialist 0.48 FTE $229K
Other: Consultant(s), meetings & general supplies $41K
Total Cost of PSN Collaborative: $270K
‐SUMC remaining funds June 30, 2016 $85K
‐General Fund $185K
FY 2017 Proposed Operating
Budget
Library Services Department
Operating Budget pp. 289‐298
Finance Committee
May 5, 2016
27
Department Overview
Mission
Purpose
Divisions
•Public Services & Programs
•Information Technology,
and Collections
•Buildings, Support, and Administration
28
Accomplishments
•Increased open hours of service
•Sierra ILS
•New Americans program
•Early Literacy “Tip of the Week”
•Teen Library Advisory Board (TLAB)
•“Building up the bikes at PACL” grant
•Drive‐up book drops
•Silicon Valley Reads 2016
•Increased the percent of residents satisfied with
Library Services, as measured by the National Citizens
Survey, from 81% to 92%
29
Fiscal Year 2017 Initiatives
•Implement recommendations related to
Circulation functions
•Finalize eBranch requirements and
implementation evaluation
•Complete the library’s procedure manual
•Continue development of the New
Americans program
•Kindergarten library card campaign
•Programming for children with differing
needs and abilities
30
Significant Budget Proposals
•Convert a half‐time Senior Librarian at
Rinconada Library to full‐time with offsetting
allocations in part‐time hourly staff
(Ongoing savings: $2,307)
31
FY 2017 Proposed Operating
Budget
May 5th Recap
Finance Committee
May 10, 2016
1 2
Current Status
FY 2017 Proposed Operating
Budget
Development Services
Operating Budget pp. 223‐238
Finance Committee
May 10, 2016
3
Department Overview
Mission
Purpose
Divisions
•Administration
•Planning
•Building
•Green Building
•Public Works
•Fire Prevention Bureau
4
Accomplishments
Adopted new Green Building and Energy Reach
Code ordinances
Initiated revision to City policies on seismic
retrofitting of soft‐story and unreinforced
masonry buildings
Initiated process for electronic plan review
Launched Performance DashBoard Tool
Launched Inspect App for customers
Initiated viability and cost effectiveness study of
Electrification/Fuel switching from gas to electric
Completed phase 1 of cost of services study
5
Fiscal Year 2017 Initiatives
Continue code adoption process including
local amendments effective January 2017
Complete Seismic Retrofit Study
Launch New Fee schedule and begin Phase 2
of Cost of Service Study
Complete Electrification/Fuel Switch Study
Adopt and implement new building codes
and local amendments
Continue to monitor and streamline permit
and plan check activities across DevSer.
6
Significant Budget Proposals
Planning Tech, $55,974
Add 0.50 FTE Planning Technician to provide front
desk support at the Development Services counter
Staffing Re‐alignment, ($607,922)
Reallocate 2.15 FTE to Fire, 0.64 FTE to Public Works,
and 0.50 to Planning (Fire staffing reallocation in parking lot
per FC May 5th meeting)
State MWELO Enforcement, $50,000
Consultancy cost to implement and manage a
separate landscape permit process, per state
mandate
7
FY 2017 Proposed Operating
Budget
Retiree Health Benefit Fund
Operating Budget pp. 479‐480
Finance Committee
May 10, 2016
8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
Impacts to FY 2017 Proposed
25
Funding Source
Adopted
FY 2016
Modified FY
2016
Proposed FY
2017
May 9, 2016
Valuation
Change from
Proposed
FY 2017 to
May 9, 2016
General Fund 9,664,600 8,246,207 9,322,699 9,403,256 80,557
Enterprise Funds 4,070,524 3,473,128 3,806,691 4,097,591 290,900
Other Funds 710,064 605,853 678,865 661,153 (17,712)
Employee Health
Contributions 321,812 321,812 ‐ ‐ ‐
Implied Subsidy ‐ 2,120,000 2,291,745 2,203,000 (88,745)
Annual Required
Contribution (ARC)14,767,000$ 14,767,000$ 16,100,000$ 16,365,000$ 265,000$
Unfunded Liability as of June 30, 2013 report: $143.6 million
Unfunded Liability as of June 30, 2015 report: $156.2 million
Citywide Change: $12.6 million
FY 2017 Proposed Operating
Budget
Planning and Community
Environment
Operating Budget pp. 315‐329
Finance Committee
May 10, 2016
26
Department Overview
27
Sample of Accomplishments
28
•Ground floor retail
preservation ordinance
•Comp Plan summit and
CAC formation
•Comp Plan Vision and
Goals
•Downtown Commute
Survey and TMA launch
•Downtown RPP
•Code clean up ordinance
•Annual office/R&D limit
•5 bicycle boulevard
concept plans
•$2M traffic signal
upgrade
•Major approvals at 2555
Park, 261 Hamilton, 385
Sherman, 430 Forest,
Stanford Shopping Center
•2 SSO districts; initiated
IR program review
FY2017 Initiatives
•Comp Plan Update
•Phase 2 of Downtown RPP & next RPP
•Parking wayfinding implementation
•Paid parking study & recommendations
•Annual commute survey & TMA support
•Bike Plan implementation projects
•Traffic speed survey phase one & safety
improvements
•Many more
29
•No Significant Change from FY 2016
General Fund Support of Approx $8.9M
CIP Projects & Special Revenue Funds
•Staffing Requests
•Budget Adjustment Requests
•Unfunded Activities
Budget Overview
30
•Management Analyst (Administration)
•Program Assistant (Transportation)
•Building/Planning Tech (Current Planning)
•0.5 FTE Coordinator Transportation Systems
Management (Safe Routes)
Total General Fund Impact: 0.52 FTE
Staffing Requests
31
Other Budget Adjustments
•Continued funding for TMA pilot programs
•Ongoing Shuttle operations
•Adjustment of staff between departments
•California Avenue retail study
•Scanning and storage
•Revenue alignment (adopted fee increases)
•Continued use of “on call” contractors
32
Not Reflected in the Budget
•FY16 Comp Plan Update contract amendment
•FY16 grade separation PM contract
•Shuttle expansion
•Multiple major housing initiatives ahead of the
Comp Plan
•Eichler design guidelines
•Establishment & operation of new RPP Districts
33
FY 2017 Proposed Operating
Budget
Special Revenue Funds
Operating Budget pp. 115‐127
Finance Committee
May 10, 2016
34
Special District Funds
•University Ave Parking Permit Fund
Street Sweeping Contractual Increase:$39,709
Transfer to Capital: $682,676
•California Ave Parking Permit Fund
Street Sweeping Contractual Increase:$64,638
•Residential Preferential Parking Fund
Contract Enforcement Costs: $437,407
Online Service: $103,476
Additional areas discussed at Council 5/9/2016
35
Significant Activity By Fund
Stanford University Medical Center Fund
•Project Safety Net Collaborative: $85,000 remaining
•CIP Transfers:
Intermodal Transit: $441,000 (Public right of way)
Quarry Road Improvements: $359,000 (Public right of way)
Infrastructure, Sustainable Neighborhoods and Communities,
and Affordable Housing:
‐$1.6 Million (Charleston/Arastadero Corridor)
‐$2.8 Million (New Public Safety Building)
‐$6.0 Million (Replacement of Fire Station #3)
Climate Change: $1.2 Million (Bicycle and Pedestrian Plan)
36
Significant Activity By Fund
Housing In-Lieu Funds
•Revenue is projected to decrease by $1.7 million based on
tracking
Traffic Mitigation and Parking In‐Lieu Funds
•University Ave Parking In‐Lieu Fund
Downtown Parking Garage: $2.7 million in FY 2019
Federal & State Revenue Funds
•Community Development Block Grant (CDBG): $754,000
Significant Activity By Fund
37
Street Improvement Fund
No change in activity for FY 2017
Community Development Funds
No change in activity for FY 2017
Public Benefits Funds
No change in activity for FY 2017
Downtown Business Improvement District Fund
No change in activity for FY 2017
Public Art Fund
No change in activity for FY 2017
38
Significant Activity By Fund
FY 2017 Proposed Operating Budget
May 10th Recap
Finance Committee
May 12, 2016
2
Current Status
FY 2017 Proposed Municipal Fee Schedule
Finance Committee
May 12, 2016
3
Annual Process
User Fee Cost Recovery Level Policy
Cost of Services Studies:
Planning & Community Environment
Development Services
4
Background
FY 2017 Salary & Benefit adjustment = 5.5%
Fees over 100% adjusted down
Development Impact fee adjustments
Construction Cost Index = 3.5%
12 new fees
8 deleted fees
118 changed fees
Fee Adjustment Recommendations
5
New Fees
•Mitchell Park – Cleaning
Package (CSD)
•Wet Season Construction Site
Stormwater Inspection
(Development Services ‐Public
Works)
•Offsite document Recovery
(Police)
Deleted Fees
•Art Center Green Room (CSD)
•Cubberley Community Center
Theater Rentals (CSD)
•Sales –Coffee/Tea –Self
Serve (Library)
6
•Fee adjusted to align with market value
Art Center: Auditorium Rental – 10% increase
•Fee adjusted to reach desired cost recovery
Encroachment Permit: Dumpster – 10% increase
•Technical adjustments
7
Changed Fees
FY 2017 Proposed Operating Budget
Public Works
Finance Committee
May 12, 2016
Department Overview
Mission
Purpose
Divisions
Environmental
Services
Engineering Services
Airport
Public Services
9
FY 2017 Proposed Budget
Public Works
Item 3.a)
General Fund
Operating Budget pp. 350‐360
Accomplishments & Initiatives
Fiscal Year 2016 Accomplishments
Pavement Condition Index
Council Infrastructure Plan
APWA accreditation
Residential food scraps collection & commercial recycling and composting
Sludge dewatering & truck loadout facility
Fiscal Year 2017 Initiatives
Complete Baylands Interpretive Center renovation and boardwalk replacement
design
Complete Environmental Impact Review (EIR) for Newell Road Bridge Project
Maintain the health of the urban forest
Modernize City building systems to reduce energy consumption
11
General Fund
Significant Budget Proposals:
Tree Trimming Services, $569,000
Increased pruning cycle implications and risks
Urban Forest Master Plan, $200,000
Previous Tree
Trimming Contract
Proposed Tree
Trimming Contract
Annual Cycle 7 year 15 year
Trees pruned annually 5,050 6,300
Annual Cost $350,000 $968,000
12
FY 2017 Proposed Budget
Public Works
Item 3. d)
Wastewater Treatment Fund
Operating Budget pp. 378‐386
Capital Budget pp. 551‐580
Wastewater Treatment Fund FY2017 Budget
Fiscal Year 2017 Initiatives:
Secure state funding and award construction contract for dewatering
Initiate strategic planning for Northwest County Water Reuse
Key Changes from Fiscal Year 2016:
Operating Increase: 8.6%
(5.5% before debt service correction)
Capital Increase: 92%
dewatering/incinerator; plant rehab
projects
Funded by State Revolving Fund loans
Capital Reappropriations $16.0
million
Rate Increase: 9%
14
Wastewater Treatment Fund
Significant Budget Proposals
(Palo Alto’s Share )
1/3 FTE: Senior Engineer –Emergency equipment repairs and CIPs
Catch up: Deteriorating 45 year old Plant
Execute: $200 million capital program
2/9 FTE: Management Analyst – Fund analysis for partner agencies
Multiple partner agreements, cost/rate analyses and reports
Increased CIP activity demands greater financial management
1/3 FTE: Senior Engineer –Recycled water wholesaler management
Compliance with state regulatory requirements for wholesaler
Public health management
15 16
17
FY 2017 Proposed Budget
Public Works
Item 3. b)
Refuse Fund
Operating Budget pp. 361‐368
Capital Budget pp. 491‐500
Refuse Fund FY2017 Budget
Fiscal Year 2017 Initiatives:
Implement phase 2 commercial recycling & composting
ordinance
Implement landfill post‐closure inspection & maintenance
program
Key Changes from Fiscal Year 2016:
Expenses increasing by 3.9%
Capital reappropriations $0.1 million
Significant Budget Proposals:
Landfill staffing, $72,000
Division administrative staffing, $56,000
19
FY 2017 Proposed Budget
Public Works
Item 3. c)
Storm Drain Fund
Operating Budget pp. 369‐377
Capital Budget pp. 501‐518
Storm Drainage Fund FY2017 Budget
Fiscal Year 2017 Initiatives:
Substantially complete remaining projects in 2005 ballot measure
Commence development of Green Infrastructure Plan
Secure approval of Blue Ribbon Committee recommendations, funding
plan and potential ballot measure for early 2017
Key Changes from Fiscal Year 2016:
FY 2017 Proposed CIP $7.7 million
Reappropriations $4.7 million
Significant Budget Proposals:
Increase in Storm Drainage Fee, ($193,723)
Green Infrastructure Plan, $50,000
21
FY 2017 Proposed Budget
Public Works
Item 3. e)
Airport Fund
Operating Budget pp. 387‐393
Capital Budget pp. 327‐342
Airport Fund FY2017 Budget
Fiscal Year 2017 Initiatives:
Complete design of apron reconstruction project
Construct security fencing project
Evaluate Fixed Based Operator leasing options
Key Changes from Fiscal Year 2016:
FY 2017 Proposed CIP $2.6 million
FAA grant revenues $2.2 million
Significant Budget Proposals:
Increase to General Fund loan, $400,000 (FY2017 total loan of $0.7 million)
23
FY 2017 Proposed Budget
Public Works
Item 3. f) & 4
Vehicle Fund Budget/3 Year Pilot Contract
Operating Budget pp. 394‐401
Capital Budget pp. 657‐686
CMR #6887 Contract For On‐Site Fleet Parts and Inventory Program
Vehicle Replacement Fund FY2017 Budget
Fiscal Year 2017 Initiatives:
Evaluate replacement charges
Replace aging vehicles and analyze utilization for ideal fleet size
Increase electric and hybrid vehicle replacements to reduce emissions
Improve replacement parts inventory management processes
Key Changes from Fiscal Year 2016:
FY 2017 Proposed CIP $8.9 million
Capital reappropriations $4.9 million
Vehicle Replacement Reserve $3.3 million
Significant Budget Proposals:
Replacement of co‐owned fire truck, transfer from General Fund ($158,000)
Installation of GPS monitoring, $53,570 25
Item 4:
3‐Year Pilot Program for Fleet Parts/Inventory
Current Process
Annual inventory of $260,000
4 staff members, 2,000 hours , 3,500 transactions annually
Pilot Program
Study recommended
Staff available for fleet maintenance and vehicle replacements
Freeze one FTE
Annual savings of approximately $245,000
26
Refuse Fund FY17 Key Personnel Changes
Substitute 1 permanent FTE for landfill post closure maintenance
and drop hourly position
–New environmental protection systems
–Safety requirement
1/3rd FTE for Division Management Analyst
Refuse Fund FTE History
FY12 FY13 FY14 FY15 FY16 FY17
38.07 26.47 21.95 16.25 15.2 15.65
$
$5
$10
$15
$20
$25
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mil
l
i
o
n
s
WWT Fund FY2004‐FY2015 Actuals
(with ongoing CIP)
General Expense
Chemicals, varies
Unbonded, Ongoing CIP, varies
Debt Service (Bonds/Loans), 6%
Nonchemical Supplies/Materials,
2%
Non‐CIP Contract Services, 3.6%
Commodities (Electricity, Etc.),
3.7%
Allocated Charges, 3.4%
Salary/Benefits, 4.2%
Categories
2005‐2015 Average Annual
Change
$
$5
$10
$15
$20
$25
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Mil
l
i
o
n
s
WWT Fund FY2004‐FY2015 Actuals
(without CIP)
General Expense, 13%
Chemicals, varies
Debt Service (Bonds/Loans), 6%
Nonchemical
Supplies/Materials, 2%
Non‐CIP Contract Services, 3.6%
Commodities (Electricity, Etc.),
3.7%
Allocated Charges, 3.4%
Salary/Benefits, 4.2%
Categories
2005‐2015 Average Annual
Change
1
FY 2017 Proposed Operating Budget
May 12th Recap
Finance Committee
May 17, 2016
2
Current Status
3
Fiscal Year 2017 Proposed Budget
Utilities
Overview
Operating Budget pp. 403‐410
4
Department Overview
Mission: The City of Palo Alto Utilities provides safe, reliable,
environmentally sustainable, and cost effective services.
Purpose
Divisions
•Administration
•Customer Support
•Engineering
•Operations
•Resource Management
5
Accomplishments
•Coordinated successful citywide drought response
efforts
•Launched and achieved very high participation in
Peninsula SunShares program
•Increased the City’s Renewable Portfolio Standard to
26% and projected RPS of 40% by end of CY 2016
•Launched a heat pump water heater pilot,
PaloAltoGreen Gas Program, and Home Efficiency Genie
Program
•Completed major Water, Gas, and Wastewater CIP
replacement projects; upgraded security in two
substations
6
Fiscal Year 2017 Initiatives
•Capital Improvements and Maintenance
•Energy Efficiency and Conservation Programs
•Technology and Smart Grid
•Electrification Work Plan
•Workforce Development and Succession
•Strategic Plan Implementation
7
Utilities Staffing Proposals
No Regular Additions or Reductions
Reclassifications (11 FTEs ‐$177k)
–Realign job title to existing and/or new duties
–Improve operational efficiency
–Provide staffing flexibility
–Create job development opportunity
Add/Drop (2 FTEs ‐$74k)
–Focus on staffing and operation needs
8
FY 2017 Proposed Budget
Utilities
Item 2.a) Electric Fund
Operating Budget pp. 411‐424
Capital Budget pp. 343‐434
9
Fiscal Year 2017 Initiatives:
•Increase the City’s Renewable Portfolio Standard to
57% by end of CY 2017
•Continue to evaluate and develop potential cost‐
effective Electrification programs
Significant Budget Proposals:
•Rate increase 11% ($14.7 million in revenue)
•Commodity purchases increase of $10.1 million
•Traffic signal & streetlight electric costs ($2.3 million
transfer from the General Fund)
Electric Fund
Operating Budget, pp. 411‐424
10
Electric Fund
Capital Budget, pp. 343‐434
Fiscal Year 2017 Capital: $21.6 million
Significant Projects:
Customer Connections: $11.6 million
Electric Pole Replacements for FTTP
VA Hospital Expansion
System Improvements: $9.2 million
230 Kv Electric Intertie
Undergrounding Projects: $0.8 million
11
FY 2017 Proposed Budget
Utilities
Item 2.b) Fiber Optics Fund
Operating Budget pp. 425‐431
Capital Budget pp. 435‐454
12
Fiber Optics Fund
Operating Budget, pp. 425‐431; Capital Budget, pp. 435‐454
Fiscal Year 2017 Initiatives:
•Rebuild/Upgrade the City’s dark fiber network
•Reach an agreement with a 3rd party to build a citywide
fiber optic network
•Issue a Request for Proposal to build wireless networks
for Public Safety and Utilities
•Develop a ‘Dig Once’ policy or ordinance
Contractual CPI Rate Increase of 3.2%
Fiscal Year 2017 Capital: $1.7 million
•Fiber Optic System Rebuild
13
FY 2017 Proposed Budget
Utilities
Item 2.c) Gas Fund
Operating Budget pp. 432‐443
Capital Budget pp. 455‐490
14
Gas Fund
Operating Budget, pp. 432‐443
Fiscal Year 2017 Initiatives:
•Promote PaloAltoGreen Gas Program
•Cross Bore Safety inspection program
•Gas safety awareness and outreach
Significant Budget Proposals:
•Rate increase 8% offset by usage
reduction ($1.4 million revenue decrease)
15
Fiscal Year 2017 Capital: $6.3 million
Significant Projects:
System Improvements: $0.7 million
Customer Connections: $1.4 million
Gas Main Replacements: $4.2 million
Gas Fund
Capital Budget, pp. 455‐490
16
FY 2017 Proposed Budget
Utilities
Item 2.d) Wastewater Collection Fund
Operating Budget pp. 444‐453
Capital Budget pp. 519‐550
17
Wastewater Collection Fund
Operating Budget, pp. 444‐453
Fiscal Year 2017 Initiatives:
Wastewater Collection System
Rehabilitation/Augmentation projects
Reduce number of Sanitary Sewer Overflows
Significant Budget Proposals:
Rate increase 9% ($0.9 million in revenue)
Wastewater Treatment Costs $1.2 million
18
Fiscal Year 2017 Capital: $4.8 million
Significant Projects:
System Improvements: $4.4 million
Customer Connections: $0.4 million
Wastewater Collection Fund
Capital Budget, pp. 519‐550
19
FY 2017 Proposed Budget
Utilities
Item 2.e) Water Fund
Operating Budget pp. 454‐466
Capital Budget pp. 581‐626
20
Water Fund
Operating Budget, pp. 454‐466
Fiscal Year 2017 Initiatives:
•Complete business plan to evaluate potential
expansion of recycled water
•Seismic upgrades of reservoirs
•Complete the design for WMR 26
Significant Budget Proposals:
Rate increase 6% offset by usage reduction
($0.1 million revenue decrease)
21
Water Fund
Capital Budget, pp. 581‐626
Fiscal Year 2017 Capital: $9.6 million
Significant Project Costs:
Water Main Replacements: $6.3 million
Customer Connections: $0.7 million
System Improvements: $2.6 million
22
Fiscal Year 2017 Proposed Budget
General Fund Capital
Capital Budget pp. 95‐324
23
Fiscal Year 2016 Accomplishments
Completed the El Camino Park Restoration project
Completed Traffic Circles Improvements project
Completed Rinconada Pool Locker Room project
Completed site selection for Public Safety Building
and California Avenue Parking Garage projects
Completed Phase 1 of the Embarcadero Road at El
Camino Real Improvements project
Concept Plans for seven bicycle boulevards and
enhanced bikeways approved by City Council
24
Accomplishments (cont’d)
Increased Funding for Street Maintenance
o FY 2010 Adopted Budget = $1.9 million
o FY 2011 Adopted Budget = $3.8 million
o FY 2017 Proposed Budget = $6.8 million
Improved Pavement Condition Index score
o 2010 average PCI score = 74
o 2016 average PCI score = 82
o 2019 goal = 85 (originally projected for 2021)
PCI of 82 is highest in Santa Clara County
Annual funding reduced to $3.8 million
beginning in FY 2020
25
Capital
Improvement
Funds
48%
(101 Projects)
Enterprise Funds
44%
(92 Projects)
Internal Service
Funds
8%
(18 Projects)
FY 2017 – 2021 Proposed Projects by Fund Type
(211 Projects)
26
Buildings &
Facilities
45%
($120.9 million)
Parks & Open
Space
11%
($30.7 million)
Streets &
Sidewalks
16%
($42.7 million)
Traffic &
Transportation
23%
($61.3 million)
Unallocated
Salaries &
Benefits
5%
($13.5 million)
FY 2017‐2021 General Capital Improvement
Fund ($269.2 million)
27
5‐Year General Capital Improvement Fund
Planned Expenditures ($ millions)
$‐
$20
$40
$60
$80
$100
$120
$140
FY 2015‐2019 CIP FY 2016‐2020 CIP FY 2017 ‐ 2021 CIP
Buildings and Facilities Parks and Open Space
Streets and Sidewalk Traffic and Transportation
Unallocated ‐ Salaries and Benefits
28
0
5
10
15
20
25
30
35
44%
(35 Projects)
25%
(20 Projects)
12%
(9 Projects)
18%
(14 Projects)
1% (1 Project)
FY 2017 Proposed General Capital Improvement
Fund Projects by Category (79 Projects)
29
Buildings &
Facilities
42%
($30.2 million)
Parks & Open
Space
24%
($17.5 million)
Streets &
Sidewalks
15%
($10.8 million)
Traffic &
Transportation
17%
($11.8 million)Unallocated
Salaries &
Benefits
2%
($1.5 million)
FY 2017 Proposed General Capital
Improvement Fund Budget ($71.9 million)
30
Transfer from
General Fund
29%, ($20.9 million)
Gas Tax
2%
($1.4 million)
Infrastructure
Reserve
32%, ($23.2 million)
Debt Financing
9%
($6.1 million)
Impact Fees/In‐Lieu
Fees
1%, ($0.4 million)
Stanford University
Medical Center
17%
($12.4 million)
Federal/State &
Local Agencies
6%
($4.1 million)
Interest Income
1%
($1.0 million)
Transfer from
Parking Funds
1%, ($0.7 million)
Transfer from Other
Funds
2%, ($1.8 million)
FY 2017 Proposed General Capital
Improvement Fund Sources ($71.9 million)
31
$11.6 $7.3 $3.0 $5.5 $8.0
$3.0$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Mil
l
i
o
n
s
Infrastructure Reserve (IR)
Infrastructure Reserve Minimum Reserve Balance
Expenses Total Sources
32
City Council Infrastructure Plan
Project
5‐Year Plan
(in millions)
Public Safety Building $ 57.0
Bicycle Pedestrian Transportation Plan 20.0
Replacement of Fire Stations 3 & 4 14.2
Downtown Parking Garage 13.0
California Avenue Parking Garage 9.6
Charleston/Arastradero Corridor Improvements 7.5
Highway 101 Bicycle/Pedestrian Bridge
(Gap Funding)
4.7
Byxbee Park Completion 2.8
Infrastructure Contingency Reserve 30.0
33
Nova Partners selected after RFP process
Council approval of contract in June
Nova Partners successfully managed construction
of:
–Children’s Library
–College Terrace Library
–Art Center
–Rinconada Library
–El Camino Park Restoration
Infrastructure Plan Program
Management Consultant
34
$4 million contract over three years to assist in
management of $129 million program
Augment staff to provide:
–Project management, design and constructability
reviews, design consultant management, schedule and
budget management, quality assurance, project
communication, reporting
Goal: Ensure successful and transparent
implementation of Infrastructure Plan, adhering to
scope, schedule and budget
Infrastructure Plan Program
Management Consultant (Cont’d.)
35
New Projects
Baylands Boardwalk Improvements: $1.4 million
Mitchell Park Adobe Creek Bridge: $0.25 million
City Hall Floor Remodel for floors 4 and 5: $0.75 million
Civic Center Electrical Upgrades and EV Charger Installation:
$0.65 million
Railroad Grade Separation: $1.9 million
Downtown Mobility and Safety Improvements: $1.45 million
Foothills Park, Arastradero Preserve and Esther Clark Park
Comprehensive Conservation Plan: $0.3 million
Baylands Flood Protection Levee Improvements: $1.0 million
36
Other Impacts NOT Included
Additional Golf Course reconstruction costs
Potential acquisition of Downtown Post Office
University Ave. Parking Fund revenues currently
programmed to fund projects in FY2018‐2021:
Downtown Automated Parking Guidance Systems,
Access Controls & Revenue Collection Equipment ($2.0
million, PL‐15002)
Downtown Parking Management Study
Implementation ($2.3 million, PL‐16002)
37
IBRC “Catch-up”
Category
IBRC Final Report “Catch-
up” Backlog
“Catch-up”
amount funded to date, or included in
Proposed CIP
FY 2015-2019
Backlog
Building $5.0 million $2.2 million $2.8 million
Cubberley $6.9 million $0.7 million $6.2 million
Parks $14.4 million $6.5 million $7.9 million
Surface $14.9 million $12.1 million $2.8 million
Total $41.2 million $21.5 million $22.4 million
Progress of IBRC “Catch‐up” Backlog
38
Cubberley Property Infrastructure Fund
Cubberley Community Center Master Plan
(Fiscal Year 2017: $0.3 million)
Cubberley Field Restrooms
(Fiscal Year 2017: $0.3 million)
Cubberley Amenities Improvements ‐(Reserve)
(Fiscal Year 2017: $1.0 million
Cubberley Repairs
(Fiscal Year 2017: $0.3 million).
Cubberley Roofing Replacements projects
(Fiscal Year 2017: $0.8 million; 5‐year CIP: $2.7 mil.)
ID #6932
Budget Hearing and Proposition 218 Hearing
Attachment S: FY 2017 Budget Hearing Transcripts
(Hard copies for City Council Only)
A. April 25, 2016 City Council Meeting Excerpt Transcript
http://cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=52679
B. May 3, 2016 Finance Committee Meeting Transcript
http://cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=52664
C. May 5, 2016 Finance Committee Meeting Transcript http://cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=52665
D. May 10, 2016 Finance Committee Meeting Transcript
http://cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=52666
E. May 12, 2016 Finance Committee Meeting Transcript http://cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=52667
F. May 17, 2016 Finance Committee Meeting Transcript
http://cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=52668
CMR #6932: ATTACHMENT S