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HomeMy WebLinkAboutStaff Report 11322 City of Palo Alto (ID # 11322) City Council Staff Report Report Type: Action Items Meeting Date: 5/11/2020 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: FY 2021 Revised Proposed Operating and Capital Budgets Overview Title: Discuss and Provide Direction on the Revised FY 2021 Proposed Operating and Capital Budget Overview From: City Manager Lead Department: Administrative Services Recommendation Recommend the City Council discuss and provide direction to staff on: 1) The FY 2021 Proposed Operating and Capital Budgets, previously transmitted on April 20, 2020; 2) Amendments to the proposed budget, included as Attachment A, Exhibit 1 (Operating) and Exhibit 2 (Capital); 3) The Table of Organization as amended by actions described in the proposed budget and in this Staff Report; 4) The Municipal Fee Schedule separately transmitted as CMR 11190. Executive Summary This report outlines potential balancing options, related impacts and actions needed to revise the Fiscal Year 2021 Proposed Budget, summarizes and discusses potential changes, and responds to questions raised by City Council after the release of the FY 2021 Proposed Budgets. On May 4, 2020, the City Council reviewed the potential financial scenarios due to the current public health emergency because of COVID-19 and provided direction to staff on the continued development of the FY 2021 Budget through discussion of City Manager’s Report #11315. After contemplating the scenarios, the City Council directed that a revenue level consistent with assumptions contained within “Scenario C” as described in the staff report be used in the development of the FY 2021 Budget, resulting in a decrease to revenue estimates in the General Fund of approximately $39.0 million. The City Council discussion included concern with the continued uncertainty of the current public health emergency and the severe financial impacts the emergency has caused to date. The Council reflected on challenges ahead with City of Palo Alto Page 2 reopening, travel, and other economic indicators that support the City’s tax revenue growth and sensitivities of these tax revenues on economic indicators. Table 1, below, summarizes actions that would be necessary to balance the FY 2021 Proposed Operating Budget assuming the $39 million in revenue losses. Additional information for each potential service level option and related action can be found in Attachment A, Exhibit 1. Attachment A, Exhibit 2 contains similar information for proposed changes to the FY 2021 Proposed Capital Budget. The potential service level options outlined are necessary to balance the General Fund against the revised revenue estimate, and will have dramatic impacts on service delivery. They are discussed by city service area in the body of this report; specifics by department and by program can be found in Attachment A, Exhibit 1. As directed, these are potential balancing solutions to address the City Council adopted assumptions resulting in $39 million in revenue loss to the City’s General Fund (or operating budget). Given the continued uncertainty of the public health emergency with several unknowns still in front of us, these remain works in progress and based on Council feedback, staff will refine further and bring forward a recommended balancing strategy on May 26, 2020 for further Council input. We recognize that times are unprecedented, and the details contained in this staff report are tough choices that we would prefer not to be outlining. From a citywide standpoint, these service level reduction options include creative strategies, changes in how we approach City services and different staffing models, and efficiencies, where possible. However, service impacts are unavoidable when more than 60% of the City’s General Fund budget is attributed to the outstanding workforce delivering the City’s services every day. A breakdown of the City’s resource allocation across Service Areas includes: • Public Safety 35.2% • Infrastructure and Environment 21.8% • Planning and Transportation 10.2% • Economic Sustainability 0.1% • Neighborhood, Community and Library Services 20.7% • Administration and Governance 12.0% City of Palo Alto Page 3 Background Considering the disruptions caused by the current public health emergency, Coronavirus (COVID-19), staff has been working with the City Council on a modified budget process for the development of the FY 2021 proposed operating and capital budgets. Based on the approved action by the City Council on March 23, 2020, CMR #11208, and in accordance with the City Charter, staff provided a baseline budget on April 20, 2020 for both the operating and capital budgets. At the time of the development of the FY 2021 budget, the world is grappling with COVID-19, a global pandemic. The financial implications of this public health emergency are significant, with regional, national and global impacts on economies in response to shelter in place orders required by the State of California and the County of Santa Clara and related social distancing restrictions. On March 12, 2020 the City Manager, acting as the Director of Emergency Services, issued a Proclamation of Local Emergency regarding the presence and community spread of COVID-19 in Santa Clara County and our region. On Sunday, March 15, 2020, the City Manager activated the Emergency Operations Center (EOC) and since that time, the City has managed the EOC virtually through a cross-functional multi-departmental team. On March 16, 2020, the City Council ratified the Proclamation of Local Emergency. The proposed budgets released in April reflected the cost of current service levels recalculated to FY 2021 rates and limited adjustments and were in response to City Council direction to use as baseline for further Council deliberations. The capital budget was updated with current cost estimates of projects based on engineering designs and only adds limited new projects for urgent health and safety needs. Despite reflecting most recent figures, the release of the proposed budgets revenue estimates contained in these budgets were released knowing that the revenue estimates would need to be revised and additional work would be needed to balance the budgets reflecting the current public health emergency. Summary of Changes from FY 2021 Proposed Baseline Operating Budget City staff has balanced the General Fund expenses against Council adopted revenue projections and these strategies are outlined in detail in this report as well as the attachments. The table below reflects the potential balancing strategy that would be necessary should the City Council ultimately wish to balance the General Fund assuming Scenario C, a $39 million loss in General Fund tax revenues. The City has provided the changes below keeping in-line with the Budget and Fiscal Priorities that were articulated when the FY 2021 Proposed Budget was transmitted. Those guidelines are summarized below. Budget and Fiscal Priorities • Support Economic Recovery through changes to our policies and programs • Focus on resiliency over the long-term while making service reductions and changes, ensuring that any services eliminated can be restored in future years • Seek new ways to conduct our work through efficiencies and a learning environment City of Palo Alto Page 4 • Apply a citywide approach to reductions, balancing impacts to the community, where possible • Use temporary solutions to bridge extreme revenue losses expected in the short-term Figure 1. Summary of Changes from FY 2021 Proposed Operating Budget through May 11, 2020 Revenues Expenses FT FTEs PT FTEs Revenues Expenses FT FTEs PT FTEs Citywide Proposed FY 2021 Budget, Released April 20, 2020 $241,509 $238,801 573.68 $755,846 $818,869 1,033.85 Adjustments to Proposed Budget as released Revenue Adjustments City Council Requested Major Tax Revenue Realignment Scenario C (CC May 4, 2020)(38,793) (38,793) - - - Other Economically Sensitive Departmental Revenue (5,000) (5,000) - - - $197,716 238,801$ 573.68 - 712,053$ 818,869$ 1,033.85 - Adjustments by Service Area Neighborhood, Community & Library Services (506) (6,470) (20.25) (25.19) (506) (6,470) (20.25) (28.26) Public Safety 1,488 (7,734) (38.27) (2.42) 1,488 (7,747) (38.40) (2.42) Planning & Transportation (2,394) (3,725) (10.90) (1.44) (2,394) (3,787) (11.30) (1.44) Infrastructure & Environment - (2,856) (0.20) - (26,871) (21,406) (8.30) (0.48) Internal Services/Strategic Support - (2,652) (7.83) (0.98) (1,902) (5,521) (12.90) (0.98) Citywide Balancing Solutions - (19,990) - - (22,040) (21,270) - - SUBTOTAL CHANGES FROM FY 2021 PROPOSED (1,412) (43,427) (77.45) (30.03) (52,225) (66,201) (91.15) (33.58) -0.6%-18.2%-13.5%-6.9%-8.1%-8.8% Citywide Revenue and Expenses (as of May 11th CC Discussion)196,304$ 195,374$ 496.23 $659,828 $752,668 942.70 Net Surplus/(Deficit)$930 $92,840 General Fund All Funds (inclds ISF) As seen in Table 1, the decision by the City Council to reflect the financial impacts associated represent significant service delivery reductions throughout the organization to balance the General Fund. All service areas will be impacted reducing General Fund expenses by $43.4 million, reducing the General Fund Budget to $195.4 million a nearly 20 percent reduction. Citywide, over $66 million will be reduced through elimination or deferrals of capital investment. These actions would result in 91 full-time position reduction, and over 33 part-time position reductions. This balancing strategy reflects a $930,000 surplus between General Fund revenues and expenses. Actions included in this strategy may not be realized and this funding could be used to offset any changes, could be allocated to assist in rebuilding the Budget Stabilization reserve, or be used to reinstate services impacted. It is important to keep in mind that, should these reductions be recommended by the City Council, they cannot simply be reversed immediately. Each of these potential reductions will have impacts on service delivery and are therefore not proposed lightly. The City has been forced to prioritize essential services and pare back discretionary services. The City acknowledges that many of these discretionary services have contributed to the unique character of the Palo Alto community. City of Palo Alto Page 5 Revenue Changes The City Council discussion on Monday, May 4 reviewed the significant revenues the City receives from Charges for Services and Licenses and Permits. These two revenues combined total $40 million in the FY 2021 Proposed baseline budget. As most of the revenues in these categories are for fees for services or regulatory fees for the issuance of permits, staff will continue to work to ensure cost recovery levels are maintained and actively monitor revenues and expenses during the fiscal year. However, this balancing strategy does include approximately an $8 million reduction in the revenues as a placeholder for potential losses. Of this, $2.7 million is expected in the Planning and Development Center activities. The remainder is a placeholder for projected reductions throughout various departments. It is important to also note that in the Charges for Services category are revenues associated with two separate agreements with Stanford University to provide Fire Services and Dispatch Services. As part of these agreements, Stanford reimburses the City for a proportional share of these activities. Should the cost of these activities change, changes in these reimbursement assumptions from Stanford will also need to be considered. Summary of Potential Balancing Service Level Options and Actions by Citywide Service Area This section provides a summary of recommended changes and anticipated service delivery impacts, categorized by Citywide Service Areas (CSA). Unfortunately, based on the severity of the financial impacts ahead, there will be service impacts. Staff will continue to explore creative solutions to ensure we can provide core services to our community through efficiencies and changes to service delivery where possible. Using reserves will not be enough to balance our budget. The current strategy does not rely on use of General Fund reserves in FY 2021. Staff is expecting to use reserves in FY 2020 to assist in balancing the projected $20 million gap. These reductions, like the expense solutions are intended to be a two-year strategy to assist in bridging the gap as a result of the current fiscal crisis caused by the public health emergency. Proposed Citywide Balancing Solutions These proposed balancing solutions seek to address funding needs across the organization. They also seek to balance the City’s liabilities and investments. Should the Council choose not to implement these strategies or go further on these strategies, a direct correlation to the service level reductions would result. We continue to explore additional cost containment through continuing a hiring freeze and freezing all nonessential travel, eliminating current vacancies (described below in the service impacts section) and reducing future vacancies through attrition, and/or implementing furloughs with corresponding service reductions such as reduced walk-in office hours. To the extent the City is successful in finding new savings through any of these strategies, some of these service impacts could be reinstated. • Transfer to the Capital Fund: The transfer to the Capital fund is comprised of two components, 1) the base transfer from the General Fund to provide funding for the general capital improvement catch-up, keep-up, and projects and 2) the transfer of transient Occupancy tax (TOT) revenues that have been dedicated by City Council City of Palo Alto Page 6 guidance to funding the City Council approved 2014 Council Infrastructure Plan. Overall, this balancing strategy recommends a reduction in transfer of $16.5 million, $8.5 due to the decline in TOT revenues and $8.1 million to assist in prioritizing services to the community and balancing the capital needs. The impacts of these actions and rebalancing within the General Capital Improvement Fund can be found later in this report. ($16.5 million GF) • Cubberley Lease: The City leases 27 acres from the Palo Alto Unified School District (PAUSD) and offers various services and resources through those facilities including short term and long-term rentals, fields, gyms, and theater, as well as an auditorium. This would require the City and PAUSD to renegotiate the lease and reduce the City’s payments and corresponding use of some of these facilities. The City has already begun initial conversations with PAUSD. Currently the balancing strategy is assuming a net savings of $2.5 million, however this is subject to conversations and final agreement between the two parties. ($2.5 million General Fund) • Section 115 Pension Trust Fund & Proactive Funding of Long-Term Liabilities: The City has made great strides in continuing it value of fiscal sustainability. With two separate trusts, one for pension liabilities and one for other post-employment benefit liabilities (OPEB), the City is actively working to pay the full actuarial determined contribution and more annually. The recommended actions in this balancing strategy are two-fold, 1) reduce the contribution to the 115 Trust Fund by 50% and 2) realize savings in lower OPEB costs as a result of the most recent actuarial study while reducing the discount rate by 25 basis points. ($2.3 million General Fund, $4.6 million all Funds) • Reduce Internal Service Fund Reserve/Balances: This action reduces allocated charges throughout the organization to Internal Services Funds, including the Information Technology Fund and the General Liability Fund. This will result in decreases in accumulated fund balance in the Internal Service Funds and will increase the associated risk in the respective Internal Service Funds. Staff will continue to proactively analyze and monitor this risk throughout the budget process and FY 2021 to ensure it remains within acceptable levels. ($1.0 million General Fund, All Funds TBD) City of Palo Alto Page 7 Neighborhood, Community and Library Support City Service Area Departments in the Neighborhood, Community and Library Support CSA include Community Services and Library. • Community Services Department: Reduce administrative and management staffing; reduce community theatre support; close the Baylands Nature Interpretive Center, eliminate contract rangers; eliminate program support to Youth Connectedness Initiative funding (YCS) and Santa Clara County Unhoused Programs, eliminate teen services programs; reduce recreation staffing; pause Know Your Neighbors Grant for 2 years; reduce special events for two years; increase middle school and adult athletics program fees by 25%, closer to 100% cost recovery; reduce parks maintenance contracts by 50%; increase Junior Museum and Zoo cost recovery model by increasing ticket price to $18 per ticket; reduce operating hours at three community centers and Art Center by one day; reduce programming and temporarily pause exhibitions at the Art Center, seeking to maintain studio classes and programming; and reduce Children’s Theatre productions, maintaining classes and camps. This will adversely impact the department's ability to support and respond to City Commissions and public inquiries, reduce capacity for marketing and communications efforts including collateral production, reduce CivicRec oversight and troubleshooting which could impact customer experience. This will also result in fewer ranger patrols, delayed response to maintenance such as trail and campsite repairs, decreased capacity for litter removal and group rental site reservation support, and reduced support for science educational opportunities. Other impacts include reducing the community’s access to, recreation, educational programs, cultural experiences by reduction in operating hours of Mitchell Park Community Center, Lucie Stern Community Center, Cubberley Community Center, and the Palo Alto Art Center for two years. Additionally, reducing or eliminating programs for youth and teens and in-school educational programs. Reductions to park maintenance will eliminate preventative maintenance and only safety-focused maintenance will be performed. ($4.7M General Fund; $4.7M All Funds and 13.25 full-time FTE; 15.19 part-time FTE All Funds) • Library Services: Reduce library hours at the Children’s library and Riconada library by changing the staffing model at Children’s to a neighborhood branch; close College Terrace library for two years; reduce part time staffing and information technology support; reduce training, supplies and materials acquisition impacting book supplies and other items; hold vacant an executive management position for one year; and reduce administrative support. This action reduces operating days and services at the Children's Library and operating hours at the Rinconada Library. Children's Library will be open four days per week (down from seven) and evening hours will be reduced at Rinconada Library (closing at 6pm every day, previously open until 9pm Monday-Thursday). Children's Library will transition to a Neighborhood Branch level of service, which includes fewer programs and special events, like service levels at the Downtown Library. City of Palo Alto Page 8 This action will also close College Terrace Library for two years. ($1.7M General Fund; $1.7M All Funds and 7.00 full-time FTE; 10.00 part-time FTE All Funds) Public Safety Departments in this City Services Area include Fire, Police and Office of Emergency Services. • Police Department: Reduce community engagement events, public relations and outreach; reduce public lobby hours; reduce records management and staffing; restructure dispatch staffing resource; reduce patrol positions, eliminate specialized traffic unit and reduce assignments in investigations; reduce property and evidence hours; reduce funding for Animal Control; reduce funding for Police Reserves at special events and reduce support for the Parent Project. Personnel and Training will be reduced to align with the suspension of recruitment activity and ongoing hiring freeze citywide. Additional reductions include transferring the cost for one School Resource Officer to the school district and moving the costs of one police position to the City Manager’s Office. These reductions will impact non-emergency response and impact the Department ability to be proactive. ($6.2M General Fund; $6.3M All Funds and 29.80 full-time FTE; 2.42 part-time FTE All Funds) • Fire Department: Reduce fire prevention staffing; implement a new medical emergency response fee for first responder and emergency medical services and establish an ambulance subscription program; reduce incident response resources and staffing and move towards a brownout flexible staffing model. This action will temporarily reduce units when firefighters are on leave, rather than staffing units with overtime. This will increase response times and reduce ability to handle concurrent calls on evenings and weekends, resulting in some calls being handled by the County mutual aid partners. Other actions include reduction of administrative and support resources. ($1.3M General Fund; $1.3M All Funds and 7.60 full-time FTE; 0.00 part-time FTE All Funds) • Office of Emergency Services: Eliminate a staff position that will impact the City’s emergency response and reduce intrusion detection (IDS) system. This reduction will result in fewer resources to support the critical infrastructure program, which includes establishing key community contacts, conducting assessments, and maintaining an essential database. Scaling back this program will impact the preparedness of the community. ($0.2M General Fund; $0.2M All Funds and 1.00 full-time FTE; 0.00 part- time FTE All Funds) City of Palo Alto Page 9 Planning and Transportation City Services Area Departments in this City Services Area include Planning and Development Services and the Office of Transportation. • Office of Transportation: Reduce the administration of the Residential Parking Program and hourly staffing associated and eliminate the Crosstown and Embarcadero Shuttle. This action will reduce free alternative transportation options to residents of and visitors to Palo Alto, including senior citizens and local students. The department's response times and capacity to review and reconcile parking citation matters will be impacted and delays will occur. Residential Preferential Parking Program changes including phasing the administration of this program to allow for License Plate Recognition (LPR), virtual permits, and other modifications to allow for cost control. Staff will provide greater detail on the program changes including revised financial impacts as part of the Office of Transportation review scheduled on May 13. Savings for this is reflected in the reduction of the General Fund subsidy to the RPP Fund. ($0.6M General Fund; $0.6M All Funds and 0.00 full-time FTE; 0.48 part-time FTE All Funds) • Planning and Development Services: Eliminate vacant staff positions and substantial reductions in contract and consultant services for planning and building services. Reductions and impacts include long range planning and housing, code enforcement; reduce development services administration and programming assistance, building inspection and plan review, and reductions in development services reserves. Staff's ability to provide administrative, project management, and customer support will be reduced and responses to public record requests delayed. Significant delays in application processing and customer service response times are expected. Modification to local zoning regulations may be required to streamline application review, reducing the amount of time staff spends on each project and with public engagement. A corresponding reduction is recommended for associated fee revenue. This action also impacts associated housing-related assignments and projects such as North Ventura Coordinated Area Plans (NVCAP), with work substantially curtailed as focus will be primarily given to state housing laws and preparing the new Housing Element. Code enforcement response will focus on highest priority health and safety-related cases, and response times will slow. Other impact will result in longer lead times for inspections, suspended progress on the Energy Reach Code, and less participation in collaborative efforts such as sustainability, waste reduction, and other priorities. Next day inspections will no longer be an option for most projects. ($3.2M General Fund; $3.2M All Funds and 11.30 full-time FTE; 0.96 part-time FTE All Funds) City of Palo Alto Page 10 Infrastructure and Environment Departments in this City Services Area include Public Works, Sustainability and Utilities. • Public Works Department: Reduce the City’s sidewalk program and capital project management; reallocate staffing from planning to public works; reduce tree trimming program through Urban forestry; defer vehicle replacement and maintenance; and freeze building and facilities engineering staffing. It is important to note that the sidewalk program would continue to address health and safety areas or “trip/fall” areas of concern. In addition, the reduction in tree trimming would not impact the current cycle time of 7 years. The implications of the sidewalk program reductions and deferred maintenance include, increased cost and scope for sidewalk replacement and repairs in the future and a possible increase in emergency repair needs. ($2.6M General Fund; $6.9M All Funds and 3.30 full-time FTE; 0.48 part-time FTE All Funds) • Utilities: Maintain 0% rate increase for the next year to customers; freeze business operations staffing; anticipating a service cost savings due to load loss; defer building electrification; suspend Carbon Neutral Gas carbon offset program; defer replacement of the gas PVC pipes, cross-bore inspections and defer sewer replacement. This has not been adjusted for the current Finance Committee recommendation to raise the gas utility rates by 3 percent which was approved 2:1 on May 5, 2020. Should the Council ultimately approve this rate increase, this savings would need to be adjusted. ($0.2M General Fund; $14.5M All Funds and 5.00 full-time FTE; 0.00 part-time FTE All Funds) Economic Development and Business Support Work in this City Services Area include efforts from several departments including Planning and Development Services, City Manager’s Office, and Administrative Services Department. • Economic Sustainability and Business Support: There are no reductions recommended specifically for economic sustainability or business support. It is expected that in FY 2020 the City will be aligning resources to provide funding for the Small Business Recovery Grant Program as well as the waiver of business-related fees in the Business Registry Program and the Downtown Business Improvement District assessments. Staff will also be evaluating and returning to the City Council for consideration several recommendations focused on uplifting our business community during this challenging time. Generally, these efforts could include streamlining city processes, revising policy or zoning requirements and other items aimed at providing some relief to storefront and other small businesses as we seek to recover quickly from this public health emergency. City of Palo Alto Page 11 Internal Services/Strategic Support City Service Area Departments in the Internal Services/Strategic Support CSA include the offices of the Council appointees (City Manager, City Attorney, City Clerk, and City Auditor) as well as the Administrative Services Department, Human Resources Department, and Information Technology Department. • Administrative Services: Purchasing, accounting and revenue reorganization, printing cost reductions, and two-year pause on the production of the City’s annual performance and budget performance reports through FY 2022. These actions would reduce resources in the procurement division, require the review of purchasing policies and requirements to allow for efficiencies and changing the City’s approach and may result in delays and less oversight of the City’s procurements processes. Possible reduction in customer service counter hours and greater wait times may be experienced, including delays in resolving customer service issues. Staff will explore shifting revenue collection functions to electronic or online platforms will to achieve efficiencies where possible. ($0.6M General Fund; $0.9M All Funds and 4.90 full-time FTE; 0.00 part-time FTE All Funds) • City Attorney’s Office: Reduction in legal services support to departments and non- salary costs like travel and training. This will curtail prosecution of municipal citations, code enforcement support, and public records response, and lengthen response times to new initiatives ($0.2M General Fund; $0.2M All Funds and 0.50 full-time FTE; 0.00 part-time FTE All Funds) • City Auditor’s Office: Placeholder reduction of similar internal services reductions due to the current City Council evaluation of audit service delivery. ($0.2M General Fund; $0.2M All Funds and 1.00 full-time FTE; 0.00 part-time FTE All Funds) • City Clerk’s Office: Reduction in administrative support and non-salary costs like travel, training, special events and elimination of contract services including advertising, noticing and minutes broadcasting. This will lengthen response times to staff and public inquiries and limit support for Council events and meetings. ($0.2M General Fund; $0.2M All Funds and 0.50 full-time FTE; 0.00 part-time FTE All Funds) • City Council: Elimination of training, travel, supplies and event costs. 25% reduction to the Council Contingency. ($0.1M General Fund; $0.1M All Funds and 0.00 full-time FTE; 0.00 part-time FTE All Funds) • City Manager’s Office: Freeze management support impacting Council directed initiatives and projects, department coordination, and elimination of travel, training and supply costs. This action reduces staff resources in the City Manager's Office for two years. This will adversely impact the department's ability to implement, manage, or coordinate initiatives; work on cross-departmental priorities; respond to Council and City of Palo Alto Page 12 community requests; or provide support for public outreach. ($0.3M General Fund; $0.3M All Funds and 1.00 full-time FTE; 0.00 part-time FTE All Funds) • Human Resources Department: Reduction of Human Resources contingency, contract services, and staffing. Reductions will impact benefits, recruitment, training, employee relations, worker's compensation, and workplace safety. ($0.2M General Fund; $0.2M All Funds and 1.00 full-time FTE; 0.98 part-time FTE All Funds) • Information Technology Department: Management staffing reductions; reduce application maintenance, support and replacement services; defer desktop replacements; eliminate training; and defer and seek a different approach to the Council Chambers upgrade and Customer Information System project. This budget impact will result in decreased response time for internal work orders and delays in projects support and management across the organization. ($1.0M General Fund; $3.6M All Funds and 4.00 full-time FTE; 0.00 part-time FTE All Funds) Summary of Changes from FY 2021 Proposed Capital Budget Figure 2. Summary of Changes from FY 2021 Proposed Capital Budget through May 11, 2020 General Capital Improvement Fund Strategies In addition to impacts in the Operating Budget, the City Council’s direction also requires reprioritization of project funding and timelines in the Capital Budget and the five-year Capital Improvement Plan (CIP). In the Capital Improvement Fund, the changes to the revenue came primarily from reductions in the transfer from the General Fund and lower overall Transient Occupancy Tax (TOT) revenues, including the TOT revenue dedicated by Council for infrastructure improvements. In Fiscal Year 2021, the total reduction in revenue from these two sources is anticipated to be $16.5M, with a total reduction of $46.4M over the five-year CIP. City of Palo Alto Page 13 While working to rebalance the fund for the five-year CIP, the goal was to retain the highest priority projects based on criteria such as health and safety issues; Council priorities, including the Infrastructure Plan (IP) projects; and external funding sources while making strategic reductions to lower priority projects and recurring capital maintenance work whose impacts would be acceptable if limited to two years. As a result, capital maintenance of key City facilities such as fire/life safety and electrical upgrades at City Hall, mechanical and electrical systems and new roofs at the Municipal Services Center (MSC), and streets and sidewalks continued. In addition, Council’s emphasis on increased infrastructure funding over the last ten years has put the City in a good position with respect to its infrastructure and the significance of addressing “keep up” work while also eliminating much of the “catch up” backlog that was identified by IBRC in 2011, allows for the reduction of some recurring infrastructure work in the short term without significant negative impacts to the City’s facilities. Except for the Downtown Parking Garage (see below for more discussion of this project), continuation of the IP projects, including the New Public Safety Building, was a key factor used in prioritizing projects in the General Capital Improvement Fund. In addition to the list of adjustments to specific projects that can be found in Attachment A, Exhibit 2, a number of project timelines were also adjusted within the 5-year CIP to better align with funding and workload capacities. These shifts can be seen in Attachment B, the General Capital Improvement Fund Revised 2021-2025 CIP Source and Use that replaces the Source and Use for the General Capital Improvement Fund printed in the FY 2020 Proposed Capital Budget. Below is a summary of recommended impacts to higher priority projects or projects that were eliminated from the five-year CIP. • New Downtown Parking Garage (PE-15007): Funding for this Infrastructure Plan project is reduced from $26.6M in the five-year CIP to $5.2M. In addition, revenue of $9.1M from the Stanford University Medical Center (SUMC) Fund has been removed from this project and reallocated to other infrastructure needs. The remaining funding for this project aligns with the Parking In Lieu Fee portion of the project budget, which staff is discussing to be repurposed to provide additional parking supply Downtown through another mechanism, such as a public/private partnership that incorporates new public parking spaces. • Fire Station 4 Replacement (PE-18004): A majority of the SUMC funding previously allocated to the Downtown Parking Garage project ($8.2M) has been reallocated to fund this project. • Ventura Building Improvements (PE-15007): Funding for this project ($2.0M) has been eliminated from the five-year CIP. The mechanical and electrical system upgrades needed for this facility did not meet the priority of needs identified in other projects in the Capital Improvement Fund. City of Palo Alto Page 14 • Birch Street Improvements (PE-19003): Revenue from a number of potential sources, Parks Dedication Fee Funding, Parks Development Impact Funding, and SUMC Funding, has been identified to restore funding for this project in order to make upgrades to the recently purchased land near the current Boulware Park. • El Camino Median Landscape Improvements (PE-13017): Funding for this project ($1.0M) has been eliminated from the five-year CIP. The median upgrades outlined in this project did not meet the priority of needs identified in other projects in the Capital Improvement Fund. In addition, the ongoing operating and maintenance costs resulting from the upgrades would be difficult for the City to absorb. • Bicycle and Pedestrian Plan Implementation (PL-04010): Funding for this Infrastructure Plan project is reduced from $11.3M in the five-year CIP to $7.3M. Staff is working to restructure the City’s overall Bicycle and Pedestrian Plan, and the reduced annual funding level will align with the current workload capacity to design and implement future portions of the Plan. • Embarcadero Road at El Camino Improvements (PL-15001): Funding for this project ($7.4M) has been eliminated from the five-year CIP. This project has many ties to the City’s overall Railroad Grade Separation efforts, and it has been determined that at this time this project should be put on hold until the grade separation plan is more clarified and the work needed for this project can be identified and integrated with the grade separation plan. Vehicle Replacement Fund In order to reduce costs within the Vehicle Replacement Fund, as well as the costs to replace vehicles that are allocated to other City Funds, the scheduled vehicle replacement capital projects for FY 2021 and FY 2022 (VR-21000 and VR-22000) are being reduced by $1.8M each. This amount corresponds to 60 percent of the annual vehicle replacement charges that are assessed to the City. Staff is in the process of determining the specific vehicles in these capital projects that will be deferred and how this will impact the City’s overall vehicle replacement plan beyond FY 2022. Information Technology Fund In addition to the projects listed in Attachment A, Exhibit 2, staff is currently assessing the impacts of deferring work on two capital projects programmed in the Information Technology Fund, City Council Chambers Upgrade (TE-19001) and Enterprise Resource Planning Upgrade (TE-19000). Any recommendations to defer or adjust these projects will be brought forward during the budget discussions with Council. City of Palo Alto Page 15 Additional Action Items for Council Consideration During Budget Deliberations In addition to the FY 2021 Proposed Baseline budget and this revised balancing strategy, the City Council will also be taking up three items next week along with the budget discussions as they remain interrelated to each other. Each of these reports will be issued under separate cover. • Review of the FY 2021 Municipal Fee Schedule: Staff bring forward annually the review of all municipal fees for services. It is likely that based on the actions included in this potential balancing strategy as well as the discussion by the City Council on May 11-13 may result in revisions to this schedule which will return on May 26th for final review and recommended actions. • Review of the Junior Museum and Zoo Operating Plan: The Finance Committee reviewed and approved an operating plan for the Junior Museum and Zoo prior to the current COVID 19 emergency. As such it would normally go to the City Council on consent, however, staff has agendized it to be included in the budget discussions as both the opening date, fee charges, and staffing levels would impact the FY 2021 budget. • Review Pension Funding Policy Recommendations: Back in October 2019, the Finance Committee provided guidance to staff on the elements of a pension funding policy to codify our current proactive and diligent work towards addressing the City’s unfunded liabilities. Pension funding and the potential service crowd-out that the City Council has articulated a desire to manage is directly linked to the potential balancing actions contained within this report. Therefore, staff will bring this for the full Council review as part of the budget deliberations as well. Summary of Position Changes There is no question that there will be significant impacts on staffing as a result of the proposals contained in these balancing actions. It is expected that staffing in all departments and across all units will be impacted by the actions outlined in this report. Staff will provide a summary of position changes at the May 26 Finance Committee meeting for ultimate adoption as part of the budget process on June 22, 2020 once a recommended strategy is determined. Note that some workforce strategies are subject to bargaining over decisions and/or impacts, in some cases requiring mutual agreement. The City will work with labor to explore savings and other strategies through the Human Resources Department. Requests for Information made by the City Council During the April 20, 2020 City Council meeting, the Council requested an opportunity to request data to assist in informing them during this budget review process. Staff has made their best efforts in addressing these over the past week. Below are the requests. City of Palo Alto Page 16 Options for participatory budgeting and engagement • Staff is engaging the community through a series of engagement opportunities. Currently the community is asked to participate in a brief survey here: https://www.opentownhall.com/portals/5/Issue_8742 • In addition, staff has established a decided website to assist with both informing and engaging the community. This can be found at www.cityofpaloalto.org/budget. For a flyer that outlines ways the community can share input including a list of all Council budget hearings, go here: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=79628.67&BlobID=7652 1 Employee Staffing information Organization by department, by unit, fulltime/part- time/organization of department and what is considered essential vs non-essential. In addition, a request for vacancies (including the highest priority unfilled positions) and details on employee salary and benefits. • A significant portion of this information is available in the FY 2021 Proposed Operating Budget document. Departmental organization charts outlining most of this information can be found on the second page of the department sections in this book. The charts provide the classifications, the number of employees by division and the organization of the department. These do not include a list of essential vs non-essential employees or the employee represented unit. In addition to these organization charts, there is a citywide summary of employee cots by unit outlining the various components to the total cost of an employee by bargaining group. This can be found on page 43 of the FY 2021 Proposed Operating document (PDF page 63). This is provided annually, so if historical data on this is desired it can be found in prior budget documents. • A list of vacancies has been provided and is Attachment C to this report. Throughout the City, there are currently approximately 103 positions vacant, the plurality of which can be found in the Utilities Department. Attachment C outlines the current vacancies in the City by department and by budgeted funding source. In specific areas, “backfill” is being used to cover the duties. Backfill could mean using higher class pay per the terms of the appropriate Memorandum of Understanding (MOU), an overstrength position, additional overtime, or the use of contractual dollars or temporary help to accomplish the workload associated with the vacant position. • Additional request such as recommendations for the top 10 most important unfilled positions are not completed as these require analysis and policy decisions and is not a data request. City of Palo Alto Page 17 Provide a list of the largest contracts/vendors/consulting agreements • Attachment D provides a list of our largest vendors for the past 3 fiscal years, beginning FY 2018 through FY 2020 (partial year). Analysis of departmental spend and revenues pre and post COVID. Baseline expenses by department compared to budget including variances and descriptions why. Baseline expenses for largest programs showing employee cost by program and fixed versus variable. • These are primarily requests for analysis and therefore not a data request. However, the City Services Guide is a helpful resource that provides revenues and expenses as well as position counts by department by program. There are over 120 programs citywide. This document can be found here: City Services Guide: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=74888 Appendix: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=74176 • In addition, staff most recently updated the FY 2020 revenue and expense tracking and made adjustments through the budget including descriptions of the reason for the adjustments. This report can be found here https://cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=75421 Requested details of revenue projections for FY 2020 and FY 2021 including declines by sector, the length of the projected downturn, documentation of the assumptions, the evidence to support those adjustments, determination of how reliable the evidence and forecast is, and a week by week analysis of revenue inflows. • The majority of this is covered in the staff report reviewed by the City Council on May 4, 2020 which can be found here. The remainder of this request is a request for analysis and therefore not a data request. Data on usage of services, who uses the services, how often. • Staff does not have a readily available data set such as this. Resources such as the City Services Guide provides metrics by department and staff has to the best of their ability added such data in the proposal write-ups in attachment A. Program cost recovery levels • Program cost recovery levels can be found in the City Services Guide Appendix, here: Appendix: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=74176 City of Palo Alto Page 18 Cost to stop and start a capital improvement project, the fixed versus variable costs for each capital project and the rate of urgency for each CIP • The majority of this is a request for analysis and prioritization and therefore not a data request. In order to provide recommended balancing solutions for the capital improvement program, staff have outlined potential options for the Council to consider above and in detail in Attachment A, Exhibit 2. The stopping and starting of a capital project depends on the specific capital project in question. General Fund Impacts from Previous Economic Downturns • The two previous major economic downturns, the Great Recession and the Dot.Com Bust, resulted in significant budget reductions. In contrast to the COVID-19 fiscal emergency where a decline in tax revenue occurred within weeks, budget reductions for the Great Recession and Dot.Com Bust were implemented over two to three fiscal years. • The economic downturn of the Dot.Com Bust was balanced over four fiscal years and was coupled with impacts of September 11 and the State’s budget deficit which resulted in the “Triple Flip” (Proposition 57). Triple Flip resulted in approximately $43 million in tax revenues loss over the course of this recession. General Fund revenues declined by 7 percent and $14 million in ongoing budget reductions occurred between fiscal years 2001 and 2005. Hotel occupancy reached a low of 56 percent, resulting in a 30 percent TOT decline. Over 79 positions in the General Fund, 11 percent, were eliminated to reallocated to more appropriate funding sources in the City’s budget, with 40 of these positions being permanently eliminated. • The Great Recession began impacting the City’s budget mid-year of FY 2009. For the next two fiscal years, the General Fund shortfall of $17.3 million, 12 percent compared to the FY 2009 Adopted Budget, was balanced through a combination of ongoing pay and benefit reductions totaling 4 percent, service reductions (6 percent), second tier pension model, reduction in Capital Fund transfer (as a temporary bridge solution). General Fund positions decreased by 12 percent, or 75 positions, over the course of the Great Recession. Next Steps & Stakeholder Engagement The City Council is scheduled to review these balancing actions to meet the directed FY 2021 revenue loss on May 11 through May 13. Based on these discussion and direction, staff will return to the City Council on May 26 to review a final proposed balancing strategy, with final adoption of the FY 2021 Budget scheduled for June 22,2020. The community is encouraged to engage with the budget process through the scheduled public meeting and an online priorities survey. Information about meetings and the survey can be found in the links below. Staff also expects to continue to engage with the community as the Council begins to opine on these service impacts included in this balancing strategy. City of Palo Alto Page 19 FY 2021 Budget Process: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=79628.67&BlobID=76521 FY 2021 Budget Priorities Survey: https://www.opentownhall.com/portals/5/Issue_8742 Attachments: • Attachment A: Exhibit 1- Operating Budget Proposals Organized • Attachment A: Exhibit 2- Capital Budget Proposals • Attachment B: General Capital Improvement Fund Revised 2021-2025 CIP Source and Use • Attachment A, Exhibit 1: FY 2021 Operating Budget Amendments • Attachment C: Vacancy Report • Attachment D: Top 25 Vendors ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments Administrative Services Suspend City's Annual Performance Report This action reduces staffing recently transferred from the City Auditor's Office to the Office of Management and Budget. This will require that the production of City's annual Performance Report be suspended. Office of Management and Budget $0 ($165,000)$0 ($165,000) Administrative Services Staff Reorganization and Service Reduction This action reduces resources in the procurement division. This action will require the review of purchasing policies and requirements to allow for efficiencies in solicitation cycle time, such as changing levels for competitive solicitations or partially decentralizing low dollar items to departments. This may result in delays, decentralization, and increased risk because of a loss in oversight of procurement processes and adherence to the municipal code. Purchasing $0 ($146,000)$0 ($146,000) Administrative Services Accounting and Revenue Collections Reorganization This action reorganizes resources in revenue collections and accounting, reduces customer service counter hours, increases wait times, and reduces customer service overall. Staff will explore shifting revenue collection functions to an electronic or online platform to achieve efficiencies where possible. Printing of checks will happen every two weeks, and payment inquiries from vendors and city staff will take longer to resolve. Accounting and Financial Reporting & Revenue Collection $0 ($188,000)$0 ($331,000) Administrative Services Printing Services This action restructures the City's printing services through a reduction in costs by approximately $110,000. Staff is evaluating adjustments to the City's copier leases. The General Fund portion of these savings will be approximately $75,000 based on the allocation of printing costs across the City. Printing and Mailing Services $0 ($75,000)($110,000)($220,000) Attorney Position Reductions This action reduces staffing resources in the City Attorney's Office. This will curtail prosecution of municipal citations, code enforcement support, and public records response, and lengthen response times to new initiatives. Consultation & Advisory; Litigation & Dispute Resolution $0 ($116,813)$0 ($116,813) GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Attachment A, Exhibit 1 Page 1 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Attorney Travel, Training, and Supply Expense Reductions This action reduces the department's travel, training, and office supply budget from $89,000. This will reduce the department's capacity to maintain best practices, training, and pursue professional development opportunities, limit flexibility to take on new administrative projects and duties, and reduce resources available for office work. Business Operations $0 ($47,350)$0 ($47,350) Auditor Position Reduction This action reduces resources in the City Auditor's Office equal to similar internal services reductions. At the direction of the City Council and in coordination with the Council Appointed Officer Committee, staff is currently evaluating the service delivery of the internal audit function and final impacts are to be determined. $0 ($165,000)$0 ($165,000) Clerk Position Reduction This action reduces staff resources in the City Clerk's Office. This will lengthen response times to staff and public inquiries and limit support for Council events and meetings. Transparent Legislative Process and Records Compliance $0 ($48,360)$0 ($48,360) Clerk Travel, Training, Supply and Event Expense Reductions This action reduces the department's travel, training, office supply, and special event budget from $103,000. This will reduce the department's capacity to attend training and maintain best practices and professional development opportunities, limit flexibility to take on new administrative projects and duties, and eliminate all board and commission special events. Business Operations $0 ($45,000)$0 ($45,000) Clerk Contract Services Reductions This action reduces the department's contracts budget from $254,346. Contracts being eliminated include those for advertising board and commission recruitments, public noticing, meeting minute transcription, radio broadcasting of public meetings, and administrative hearing officers. Various $0 ($90,385)$0 ($90,385) Attachment A, Exhibit 1 Page 2 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Council Travel, Training, Supply and Event Expense Reductions This action reduces the department's travel, training, office supply, and special event budget from $55,000. This will reduce the City Council's capacity to travel for City business and reduce the number of special events that the Council can host. City Council Services $0 ($49,000)$0 ($49,000) City Manager's Office Position Reductions This action reduces staff resources in the City Manager's Office. This will adversely impact the department's ability to implement, manage, or coordinate any new initiatives; work on cross-departmental priorities; respond to Council and community requests; or provide support for public outreach. This position is responsible for special projects, community engagement, and related activities. Various $0 ($250,907)$0 ($250,907) City Manager's Office Travel, Training, and Supply Expense Reductions This action reduces the department's travel, training, and office supply budget from $98,000. This will reduce the department's capacity to travel for city business such as regulatory and legislative advocacy and interagency coordination, limit flexibility to take on new administrative projects and duties, and reduce resources available for office work. Business Operations $0 ($32,000)$0 ($32,000) Community Services Position Reductions This action reduces staff resources. This will adversely impact the department's ability to support and respond to City Commissions and public inquiries, reduce capacity for marketing and communications, reduce CivicRec oversight and troubleshooting which could impact customers' experience, limit managerial oversight, and delay development of a therapeutic recreation plan. Various $0 ($534,644)$0 ($534,644) Attachment A, Exhibit 1 Page 3 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Community Services Reduce Theater Programming and Support This action reduces programming at the Children's Theatre and reduces support for community theater productions. This action also reduces staff resources for two years. This reduces programming at the Palo Alto Children's Theatre (PACT) by eliminating all productions and only maintaining classes and camps. Children's Theatre productions serve roughly 100 participants and bring in over 50,000 audience members annually. Cost recovery for remaining programming would be approximately 41%. The Stern Community Theater is used by three local companies who produce approximately 15 productions annually. This action reduces on- site logistical support for community productions and administrative support to other City theaters. Community Theater; Children's Theater ($373,313)($1,022,005)($373,313)($1,022,005) Community Services Teen Services Reduction This proposal eliminates all teen services and leadership groups including Bryant Street Garage funding stream650-. Programs include: The Drop: Teen Center at Mitchell Park Community Center; MakeX: a teen makerspace and; Think Fund: a grant program for teens which funds teen-inspired and led projects, teen specific summer camps, and four boards and advisory groups that meet throughout the year to focus on initiatives and host events. This action also freezes staffing resources. Teen Services ($123,713)($552,307)($123,713)($552,307) Community Services Art Center Programming Reductions This action reduces programming and pauses exhibitions at the Palo Alto Art Center, retaining only studio programs and classes for youth and adults. The Palo Alto Art Center serves approximately 120,000 people each year through programs like free art exhibitions, educational outreach including school tours for Palo Alto Unified School District, art classes and workshops, and art-based summer camps. This action eliminates exhibitions, visual arts programming, and educational outreach. Cost recovery for the remaining studio programs and youth and adult classes would be approximately 50%. This action includes a reduction of staffing resources. Art Center ($95,657)($1,074,735)($95,657)($1,074,735) Attachment A, Exhibit 1 Page 4 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Community Services Community Center Reductions This action reduces operating hours by one day per week at Mitchell Park Community Center, Lucie Stern Community Center, Cubberley Community Center, and the Palo Alto Art Center. This will result in diminished services across a wide range of activities including responding to customer inquiries, scheduling facility rentals, providing class and camp programming, oversight of invoice payment, and managing custodial needs. This action includes a reduction of staff. Facility Management/ Recreation $0 ($276,400)$0 ($276,400) Community Services Parks Maintenance Contract Services Reductions This action reduces contracts for maintenance of parks, athletic fields, courts, roadsides, medians, City buildings, community centers, and other facilities by 50%. This will effectively eliminate preventative maintenance and only safety-focused maintenance will be performed. Parks, Athletic Fields, & Courts Management; Recreation $0 ($544,032)$0 ($544,032) Community Services Community Program and Event Reductions This action will reduce funding for the Know Your Neighbors Grant (KYNG) program and special events such as May Fete and Chili Cook-Off. The KYNG provides grants up to $1,000 to dozens of community members annually for events that support community connections, such as block parties. Staff assigned to the management of these programs will be reassigned to other critical work in the department. Special Events ($13,542)($277,713)($13,542)($277,713) Attachment A, Exhibit 1 Page 5 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Community Services Open Space and Recreation Reductions This action reduces ranger coverage in Palo Alto Open Space Preserves and closes the Lucy Evans Baylands Nature Interpretive Center to the public. This includes decreases in staff resources. The Interpretive Center is open four days per week, houses an array of science and nature exhibits, and it's a feature of the curriculum of Palo Alto Unified and Ravenswood School Districts. In FY 2019 Palo Alto's Open Space Preserves received approximately 845,000 visits. This action will result in fewer ranger patrols, delayed response to maintenance such as trail and campsite repairs, decreased capacity for litter removal and group rental site reservation support, and reduced support for science educational opportunities. Open Space; Recreation $0 ($275,781)$0 ($275,781) Community Services Human Services Funding Reductions This action eliminates the funding provided to Youth Community Services' Youth Connectedness Initiative and the Santa Clara County Reentry Resource Center. Human services funding remains available through the Human Services Resource Allocation Process (HSRAP) which is maintained at the funding level detailed in the FY 2021 Operating Budget. Human Services $0 ($175,000)$0 ($175,000) Community Services Middle School Athletics and Adult Sports Leagues Revenue Adjustments This action increases the participation fees for Middle School Athletics and Adult Sports Leagues by approximately 25%, from $260 to $325 and from $730 to $913, respectively. If participation remains steady, this action will generate revenue approximately commensurate with City expenses. Corresponding adjustments in the Municipal Fee Schedule are not required as both new values fall within FY 2020 adopted ranges and will remain consistent with levels in the FY 2021 Proposed Municipal Fee Schedule. Recreation $100,521 $0 $100,521 $0 Attachment A, Exhibit 1 Page 6 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Fire Fire Inspection and Plan Review This action reduces staffing resources in the Fire Prevention Bureau, which will delay fire inspections, increase wait times and impact customer service overall. Inspections (PDS) $0 ($90,970)$0 ($90,970) Fire First Responder and Ambulance Subscriptions Fee The First Responder Fee would be charged for all EMS calls regardless of transport and would cover cost for initial response for first due engine. This fee would be assessed on insurance companies. The Ambulance Subscription Program is an optional fee for residents and businesses to secure co-pay free ambulance transport. Ambulance Transport Services & Emergency First Response $1,855,000 $0 $1,855,000 $0 Fire Emergency Incident Response Services This action temporarily reduces units when firefighters are on leave, rather than staffing units with overtime; reduces incident response resources and staffing and move towards a brownout flexible staffing model. Response times and ability to handle concurrent calls will be reduced evenings and weekends, resulting in some calls being handled by the County mutual aid partners. This would require renegotiation of the Fire Services contract with Stanford University. Emergency First Response ($135,190)($811,145)($135,190)($811,145) Fire Fire Administrative and Support Services This action reduces staffing resources where functions will be reassessed and reassigned to increase efficiency and allow for more flexibility in workload and responsibilities. Business Operations $0 ($412,000)$0 ($412,000) Human Resources Position Reductions This action reduces staff resources from the Human Resources Department. This will result in reduced administrative support for assigned programs and functions such as benefits, recruitment, training, employee relations, workers' compensation, safety, and related areas. TBD $0 ($230,000)$0 ($230,000) Attachment A, Exhibit 1 Page 7 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Information Technology Position Eliminations, Deferral of Hiring, and Reduction in Department Training This action reduces and defers the hiring of staff. This budget impact will result in decreased response time for internal work orders and delays in projects support and management across the organization. Technology Admin Services/ Software, Tech, Equip Maintenance $0 ($520,620)($929,675)($1,859,350) Information Technology Reduction in Software and Equipment Support This action reduces the Citywide allocation for software replacement and may result in use of reserves or a resource impact to a department where replacement costs have not fully amortized. This reduction also contains costs that are no longer needed due to the City moving to an alternative platform, equipment being taken out of service, or alternative service delivery models being utilized. Application Maintenance and Replacement $0 ($265,060)($473,325)($946,650) Information Technology Extend Replacement Cycle for Laptops and Components This action results in deferral of laptop and components to an as needed basis. Operating systems would be upgraded using existing laptop instead of issuance of a new laptop. Desktop Replacement $0 ($217,840)($389,000)($778,000) Library Position Reductions This action reduces staffing for administrative support, information technology, and customer service. This action will decrease availability of Library staff and services such as reference services, readers advisory, public programs, and book clubs; decrease administrative support; increase time for re-circulating materials and responding to customer service inquiries; decrease coverage at Service Desks from two to one staff member; and adversely impact the Library's ability to manage special projects. Various $0 ($707,329)$0 ($707,329) Attachment A, Exhibit 1 Page 8 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Library Reduced Hours at Children's and Rinconada Libraries This action reduces operating days and services at the Children's Library and operating hours at the Rinconada Library. Children's Library will be open four days per week (down from seven) and evening hours will be reduced at Rinconada Library (closing at 6pm every day, previously open until 9pm Monday-Thursday). Children's Library will transition to providing Neighborhood Branch level of service, which includes fewer programs and special events, similar to service levels at the Downtown Library. In FY 2019, the Libraries conducted about 770 program events for Youth ages 0-12; this action is anticipated to result in approximately 200 fewer annual youth programs. The reduced hours of Rinconada Library are expected to increase wait times for community meeting rooms and increase utilization and crowds at Mitchell Park between 6pm - 9pm. This action includes a reduction in full-time and part-time staff resources. Various $0 ($620,512)$0 ($620,512) Library Close College Terrace Library This action closes the College Terrace Library branch. The College Terrace Library served approximately 52,000 visitors in FY 2019 (about 5% of all Library visits for the year) and hosted 40 events. This action includes a reduce of full-time and part-time staff resources. Adult Services; Community Connections $0 ($167,550)$0 ($167,550) Library Travel, Training, and Materials Expense Reductions This action reduces the department's travel and training budget and contracts from approximately $90,000 to $8,000 and reduces the department's new material (books) acquisition budget from $700,000 to $550,000 for two years. This will reduce the department's capacity to attend conferences and pursue other professional development opportunities, decrease the number of new books that can be purchased in response to patron or commission requests, and increase wait time customers experience for new books. Physical book circulation has been trending downward since 2018 while electronic resource utilization is trending upward. Access to Collections; Business Operations $0 ($241,500)$0 ($241,500) Attachment A, Exhibit 1 Page 9 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Non- Departmental Cubberley Lease Adjustment The City leases 27 acres from the Palo Alto Unified School District (PAUSD) and offers various services and resources through those facilities including short term and long-term rentals, fields, gyms, and theater, as well as an auditorium. This would require the City and PAUSD to renegotiate the lease and reduce the City’s payments and corresponding use of some of these facilities. The City has already begun initial conversations with PAUSD. Currently the balancing strategy is assuming a net savings of $2.5 million, however this is subject to conversations and final agreement between the two parties. Cubberley $0 ($2,500,000)$0 ($2,500,000) Non- Departmental City Council Contingency This action reduces the City Council Contingency from $125,000. Contingency $0 ($30,000)$0 ($30,000) Non- Departmental Human Resources Contingency This action eliminates the Human Resources Contingency. Contingency $0 ($50,000)$0 ($50,000) Non- Departmental Reduce General Fund Base Transfer To Capital This action reduces the General Fund Base transfer to Capital by approximately 50%. General Fund Transfer $0 ($7,500,000)($7,500,000)($7,500,000) Non- Departmental Reduce TOT Transfer to Capital Consistent with recommendations to Council on May 4, 2020, Transient Occupancy Tax (TOT) Transfer to Capital will be reduced. General Fund Transfer $0 ($8,455,000)($8,455,000)($8,455,000) Non- Departmental RPP Parking Administrative Program Revisions This action will require significant program changes phasing the administration of this program to allow for License Plate Recognition (LPR), virtual permits, and other modifications to allow for cost control. Staff will provide greater detail on the program changes including revised financial impacts as part of the Office of Transportation review scheduled on May 13. For now, this General Fund savings reflects the elimination of the current General Fund subsidy to ensure the RPP Fund remains financially solvent. General Fund Transfer $0 ($185,000)($185,000)($185,000) Attachment A, Exhibit 1 Page 10 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Non- Departmental Tax and Return on Investment Revenue Decreases This action reflects the direction of the City Council on May 4, 2020 to presume a significant decrease in revenues for Property Taxes, Sales Taxes, Transient Occupancy Tax, Utility Users Tax, Documentary Transfer Tax, and Return on Investments from the levels included in the FY 2021 Proposed Operating Budget. For more detailed information, please refer to City Manager's Report 11315. General Fund Revenues ($38,793,000)$0 ($38,793,000)$0 Non- Departmental Economically Sensitive Department Revenue Consistent with the direction given by the City Council on May 4, 2020, this action reflects a decrease in various departments' revenues associated with economically sensitive cost-recovery activities for FY 2021 compared to the FY 2021 Proposed Operating Budget. General Fund Revenues ($5,000,000)$0 ($5,000,000)$0 Office of Emergency Services Position Reduction This action reduces staff resources in Office of Emergency Services. This reduction will result in fewer resources to support the critical infrastructure program, which includes establishing key community contacts, conducting assessments, and maintaining an essential database. Scaling back this program will impact the preparedness of the community and will result in a shortage of trained personnel to perform essential functions during an activation. Staff also anticipates that without a dedicated resource to manage Intrusion Detection Systems (IDS) that performance will decline over time. Emergency Services & Project Safety Net $0 ($109,000)$0 ($109,000) Office of Emergency Services Intrusion Detection Systems (IDS) Reduction This action reduces funding for IDS camera systems along the Caltrain corridor from $440,000 to $380,000; maintaining fiber and monitoring services, and reducing maintenance to essential needs. Emergency Services & Project Safety Net $0 ($60,000)$0 ($60,000) Office of Transportation Position Reduction This action reduces staff resources in the Office of Transportation. The department's response times and capacity to review and reconcile parking citation appears in the Residential Preferential Parking program will be adversely impacted. Business Operations $0 ($30,000)$0 ($30,000) Attachment A, Exhibit 1 Page 11 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Office of Transportation Free Shuttle Service Elimination This action eliminates the free Crosstown and Embarcadero Shuttles. Staff previously assigned to the shuttle program will be reassigned to other key transportation projects. The shuttles connected the University Avenue/Downtown to South Palo Alto at Charleston Road and provided peak hour service between the University Avenue Caltrain Station and the Baylands Business Parks east of Highway 101/Embarcadero. This action will reduce free alternative transportation options to residents of and visitors to Palo Alto, including senior citizens and local students. The Crosstown and Embarcadero shuttles provided 104,929 rides in FY 2019. Shuttle $0 ($538,000)$0 ($538,000) Planning and Development Services Administration and Program Assistance This action reduces staff resources and reduces consultant services in the administrative divisions of Planning and Development Services. Staff's ability to provide administrative, project management, and customer support will be reduced and responses to public record requests delayed. Reductions in other programs and strategic planning are anticipated as workloads are assumed by existing staff. Administration $0 ($504,072)$0 ($504,072) Planning and Development Services Current Planning and Development Services Front Counter This action reduces staff resources and reduces contract services that process applications (including over the counter permit approval), provide customer service, and schedule projects before the Planning and Transportation Committee (PTC), Architectural Review Board (ARB), and Historic Resources Board (HRB). Significant delays in application processing and customer service response times are expected. Modification to local zoning regulations may be required to streamline application review, reducing the amount of time staff spends on each project and with public engagement. A corresponding reduction is recommended for associated fee revenue. Current Planning ($486,607)($729,266)($486,607)($729,266) Attachment A, Exhibit 1 Page 12 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Planning and Development Services Long Range Planning and Housing This action reduces staff resources that work on housing-related assignments and projects such as North Ventura Coordinated Area Plans (NVCAP). Housing-related work will be substantially curtailed as focus will be given primarily to state housing laws and preparing the new Housing Element. Staff anticipates slower progress on projects and limited ability to advance Council-directed policy work and the Comprehensive Plan. A corresponding reduction is recommended for associated fee revenue. Long Range Planning & Housing ($36,165)($273,988)($36,165)($336,168) Planning and Development Services Code Enforcement This action reduces staff resources, resulting in limited responses to the highest priority health and safety-related cases, and response times will slow. Implementation of the Code Enforcement Audit recommendations will not be prioritized. Code Enforcement $0 ($256,752)$0 ($256,752) Planning and Development Services Building Inspection and Plan Review This action reduces consultant inspection services by 50 percent and will result in longer lead times for inspections, suspended progress on the Energy Reach Code, and less participation in collaborative efforts such as sustainability, waste reduction, and other priorities. Next day inspections will no longer be an option for most projects. A corresponding reduction is recommended for associated fee revenue. Building Inspection and Plan Review ($1,335,306)($576,346)($1,335,306)($576,346) Planning and Development Services Fire Inspection and Plan Review This action reduces staffing resources in the Fire Prevention Bureau, which will delay fire inspections, increase wait times and impact customer service overall. A corresponding reduction is recommended for associated fee revenue. Fire Inspection and Plan Review ($529,424)($524,131)($529,424)($524,131) Planning and Development Services Green Building This action reduces consulting services for green building programs, energy programs, and customer support. Progress towards these programs are anticipated to slow as a result. A corresponding reduction is recommended for associated fee revenue. Green Building ($68,985)($105,548)($68,985)($105,548) Attachment A, Exhibit 1 Page 13 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Planning and Development Services Development Services Public Works Alignment This action reduces consultant services to process applications and reallocates staff resources from the Public Works division to various funds citywide. This reallocation of staff is recommended to better align with workloads anticipated in FY 2021. Public Works - Urban Forestry and Engineering ($207,162)($186,736)($207,162)($186,736) Planning and Development Services Development Services Reserve Fund (DSRF) This action reduces the DSRF from $1.1M to $0.83M to partially offset operating costs in FY 2021. The DSRF was established in 2018 upon the completion of the most recent fee study and recommended to build and maintain unrestricted funds that could be used to cover unforeseen shortfalls (CMR 8539). Reserves $270,000 $0 $270,000 $0 Police Reduction in Police Relations This action reduces staffing in the Police Department. This will result in the elimination of proactive news releases (for all cases but those that present danger to public safety), completion of the PAPD annual report, Basic and Advanced Citizens Police Academy, and participation in National Night Out. Significant time delays are anticipated for responses to routine press inquiries. Administration/ Business Operations $0 ($191,764)$0 ($191,764) Police Reallocate position from Police to City Manager's Office This action reallocates staffing resources from the Police Department to the City Manager's Office. This resource will be redeployed to evaluate critical staffing gaps and potential recruitments of new employees during the upcoming year. Administration/ Business Operations $0 ($280,000)$0 ($280,000) Attachment A, Exhibit 1 Page 14 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Police Patrol Operations This action reduces staffing resources and reduces overtime expense by $500,000 in Police patrol operations. Patrol’s ability to positively impact crime rates, address traffic safety issues, and meet key performance measures for proposed response times to urgent and emergency calls for service will be reduced. Urgent and emergency calls will remain the priority for timely police response to ensure safety during potentially life threatening or higher danger crimes in progress. Patrols response to non-emergency calls for service, directed patrol checks, generalized traffic enforcement activities, and special community engagement events will be eliminated or significantly reduced. Other sworn police personnel will be re-assigned to backfill patrol vacancies as they arise to cover staffing shortages. Patrol Services $0 ($1,721,488)$0 ($1,735,132) Police Technical Services Support This action reduces staffing resources in technical support functions. Administrative and personnel management will be significantly delayed or not occur for this division. Resources that manage radio repairs, inventories, and replacement schedules will no longer be available and potentially need to be outsourced to an outside consultant. Technical Services Support $0 ($380,373)$0 ($380,373) Attachment A, Exhibit 1 Page 15 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Police Dispatch Services This action reduces staffing resources and reduces overtime expenses by $500,000 for Police dispatch operations. This is anticipated to reduce services to 80% of their current levels. This will result in potential impacts to the span of control, longer answer times for 911, and potential outsourcing of non-emergency calls. Time constraints will reduce the ability to provide Emergency Medical Dispatch (EMD) instructions and notifications to specialty teams. Extended answer times for administrative, Utility, and Public Works customers are anticipated and after hours callouts will be limited to emergencies. A corresponding reduction to revenue is recommended for dispatch services provided to Stanford. Communication s/ Dispatch ($179,000)($1,119,911)($179,000)($1,119,911) Police Information Management and Records This action eliminates staffing resources in the information and records management division. This will result in potential impacts to the span of control, reduced public lobby hours, and processing and response delays for crime reports, citations, criminal warrants, and subpoenas. Mandated government reporting to the Department of Justice (DOJ), Federal Bureau of Investigations (FBI), and California Public Records Act (CPRA) requests will be significantly delayed or denied. Lower staffing levels will also result in a limited capacity to complete in-person bookings and process bail money and bonds. Information Management (Records) $0 ($296,183)$0 ($296,183) Attachment A, Exhibit 1 Page 16 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Police Reduce Police Investigations This action reduces staffing resources in the detective division. Staff's ability to follow-up on criminal investigations, conduct surveillance and undercover crime suppression details, participate in region-wide investigative meetings, and collaborate with other local police agencies will be suspended. Operating hours of the property and evidence room will be reduced, and significant delays are expected to process evidence in complex criminal cases, produce evidence for court, and to purge old property/evidence. Investigations $0 ($532,503)$0 ($532,503) Police School Resource Officer - Palo Alto Unified School District (PAUSD) This action reduces staffing associated with Palo Alto Unified School District that provides school safety training (lockdown drills), investigatse crimes on the school campus, and participates in elective school activities. Alternatively, the City is currently coordinating with PAUSD to discuss options for maintaning current service delivery levels. Investigations $0 ($240,000)$0 ($240,000) Police Reduce Police Reserve Program This action reduces staffing resources and suspends the Police reserve program provided at special events throughout the City. A corresponding reduction is recommended for associated fee revenue. Special Events & Reserves ($12,156)($75,449)($12,156)($75,449) Police Suspend Traffic Program This action eliminates staffing resources and suspends the specialized traffic program. Traffic $0 ($526,425)$0 ($526,425) Police Suspend Parent Project This action eliminates the Parent Project program. As a result, staff anticipates increased calls for service at homes with domestic disturbances and runaways as families will no longer be referred to the program. Investigations $0 ($66,000)$0 ($66,000) Police Recruitment This action eliminates staffing resources in the recruitment division and delays the 18-month recruiting and training cycle. Hiring and Retention $0 ($481,086)$0 ($481,086) Attachment A, Exhibit 1 Page 17 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Police Reduce Training This action reduces training from the current 78 total designated hours down to only the mandatory 32 hours of training. Personnel Training $0 ($103,901)$0 ($103,901) Police Animal Control Program This action reduces staffing resources in the Animal Care division. As a result, Animal Care Officer's (ACO's) will limit on-duty hours and eliminate overnight services. Severe service reductions in Los Altos and Los Altos Hills are anticipated and will likely require contract renegotiation. A corresponding reduction in revenue is recommended for losses in citations. Animal Control ($40,372)($235,489)($40,372)($235,489) Public Works Streets & Sidewalks Program Reductions This action reduces staffing resources, resulting in a reduction to street maintenance work and scaling back sidewalk work to only emergency repairs. The implications of this deferred maintenance include, but are not limited to, increased cost and scope for sidewalk replacement and repairs in the future and a possible increase in emergency repair needs. Sidewalks; Capital Projects- GF Streets and Sidewalks $0 ($700,000)($700,000)($1,583,610) Public Works San Francisquito Creek Joint Powers Authority (SFJPA) Membership This action will increase expenses for the City of Palo Alto's membership fee with the San Francisquito Creek Joint Powers Authority (SFJPA) which allows the City to participate in the decision-making process for a series of projects to provide flood protection for local residents. The SFJPA is an independent regional government agency founded by three cities and two countywide agencies divided by San Francisquito Creek and united by its watershed and floodplain. This joint agency leads projects along the creek and S.F. Bay to reduce flood threat, enhance ecosystems and recreational opportunities, and connect communities. Engineering Services $0 $118,750 $0 $118,750 Public Works Public Works Development Services Alignment This action recognizes the reallocation of staffing from the Planning and Development Services Department's Public Works division to the Public Works department. This reallocation of staff will align the position with the anticipated workload for the position. Engineering Services $0 $67,005 $0 $112,736 Attachment A, Exhibit 1 Page 18 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Public Works Urban Forestry This action will reduce contractual funding for tree trimming services citywide by 50%. Although this reduction will significantly reduce the number of trees trimmed in FY 2021 and FY 2022, it is not anticipated to adversely impact the City's goal of a 7-year average tree trimming cycle. This is because the City is currently ahead of schedule. If the reduction is continued for more than two years, it would impact the cycle time over the medium and long-terms. Management of the contract to maximize tree trimming may result in deferral of other activities such as stump grindings and plantings of replacement trees. Urban Forestry $0 ($654,399)$0 ($654,399) Public Works Vehicle Maintenance & Replacement (VRM) Fund Reductions This action will reduce vehicle replacements and resources for FY 2021 & FY 2022. This will limit vehicle replacements in FY21 & FY22 to only regulatory or serious maintenance issues, resulting in an increase in backlog and the need to catch up to the replacement schedule in the future. Capital Projects- Vehicle Replacement & Maintenance (VRM) Vehicle & Equipment Replacement $0 ($1,348,277)($2,291,766)($4,557,792) Public Works Buildings & Facilities Reductions This action reduces staffing resources for FY 2021 & FY 2022 commensurate with the funding reductions in capital projects. This will realign work capacity to ensure management of the citywide Custodial contract and sufficient staff time to manage the remaining CIPs. Custodial; Capital Projects- GF Buildings & Facilities $0 ($108,077)$0 ($166,272) Public Works Capital Projects General Fund Buildings & Facilities Reductions This action reduces staffing resources and will result in reduced ability of the department to implement capital projects. Capital Projects- GF Buildings and Facilities $0 $0 $0 ($160,994) Attachment A, Exhibit 1 Page 19 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Utilities Electric rates at 0% and staffing resource reduction for two fiscal years This action will maintain a 0% rate increase for FY 2021 and FY 2022. Maintaining the electric rates will result in revenue losses compared to the FY 2021 Proposed Budget, which will be partially offset from by load losses associated with fewer commodity purchases. Additionally, this action freezes staffing resources for FY 2021 and FY 2022, which are anticipated to have minimal short-term impacts, however, will delay implementation of strategic plans in the long-term. Business Operations - Electric $0 ($110,000)($18,000,000)($3,613,703) Utilities Electrification Deferments This action will provide cost savings to the City by deferring building electrification to FY 2023 with a 50% reduction. However electric vehicle programs could still continue under an alternative funding source from a state-funded low carbon fuel standards (LCFS) program. Business Operations - Electric $0 $0 $0 ($500,000) Utilities Fiber rates at 0% and staffing resource reduction for two fiscal years This action will maintain a 0% rate increase for FY 2021 and FY 2022, which results in slight revenue losses compared to the FY 2021 Proposed Budget but little to no service delivery level impacts. Additionally, this action reduces staffing resources, which is anticipated to have minimal short-term impacts, however, it will delay implementation of strategic plans in the long-term. Business Operations - Fiber $0 $0 ($40,894)($69,253) Utilities Gas rates at 0% and staffing resource reduction for two fiscal years This action will maintain a 0% rate increase for FY 2021 and FY 2022. Maintaining the gas rates will result in revenue losses compared to the FY 2021 Proposed Budget, which will be partially offset from by load losses associated with fewer commodity purchases. Additionally, this action reduces staffing resources which is anticipated to have minimal short-term impacts, however this will delay implementation of strategic plans in the long-term. Business Operations - Gas $0 ($30,800)($2,960,000)($679,975) Attachment A, Exhibit 1 Page 20 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Utilities Gas Program Deferments This action will provide cost savings to the City by suspending the City's Carbon Neutral Gas carbon offset program and cross-bore inspections for FY 2021 and FY 2022, and deferring gas PVC pipe replacements in the distribution system for FY 2021 and FY 2022. The result of this action may slow down carbon offset efforts, increase the backlog of sewer lines remaining to be inspected for cross-bores, and/or increase the frequency for PVC pipe inspections to identify leaks. Business Operations - Gas $0 $0 $0 ($7,300,000) Utilities Wastewater rates at 0% and staffing resource reduction for two fiscal years This action will maintain a 0% rate increase for FY 2021 and FY 2022, which results in revenue losses compared to the FY 2021 Proposed Operating Budget. These revenue losses will be partially offset from Wastewater program deferrals. Additionally, this action reduces staffing resources, which is anticipated to have minimal short-term impact but will delay implementation of strategic plans in the long-term. Business Operations - Wastewater $0 ($5,700)($878,100)($98,553) Utilities Wastewater Program Deferments This action will provide cost savings to the City by deferring the Sewer System Rehabilitation project for FY 2021 and FY 2022. The result of this action may delay some design and construction of main and lateral replacement work to reduce the inflow of rainfall and groundwater in the collection system. Business Operations - Wastewater $0 $0 $0 ($1,221,000) Utilities Water rates at 0% and staffing resource reduction for two fiscal years This action will maintain a 0% rate increase for FY 2021 and FY 2022, which results in revenue losses compared to the FY 2021 Proposed Budget. Cost savings from projected load losses due to decreases in the amount of commodity purchases will partially offset the revenue losses. Additionally, this action reduces staffing resources, which is anticipated to have minimal short-term impact but will delay implementation of strategic plans in the long-term. Business Operations - Water $0 ($85,000)($2,000,000)($1,031,655) Attachment A, Exhibit 1 Page 21 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Non- Departmental Internal Service Fund Allocated Charges This action reduces allocated charges throughout the organization to Internal Services Funds, including the Information Technology Fund and the General Liability Fund. These reductions in allocated charges will generate savings throughout the organization in FY 2021, offset by corresponding decreases in accumulated fund balance in the Internal Service Funds. These uses of accumulated fund balance will increase the associated risk in the respective Internal Service Funds. Staff will continue to proactively analyze and monitor this risk throughout the budget process and FY 2021 to ensure it remains within acceptable levels. Internal Service Fund Allocated Charges $0 ($1,000,000)TBD TBD Non- Departmental Other Post-Employment Benefit (OPEB) Alignment This action aligns charges allocated from the Retiree Healthcare Fund to the organization with the most recent actuarial valuation performed by Bartel Associates. Consistent with the direction approved by the Finance Committee on May 5, 2020, the allocated charges are being aligned with funding contributions necessary using a 6.2 percent discount rate to calculate the retiree healthcare liability. This results in savings of $900,000 from the FY 2021 Proposed Operating Budget, which was based on a prior valuation report. Internal Service Fund Allocated Charges $0 ($570,000)($900,000)($1,800,000) Non- Departmental Section 115 Trust Contribution The City has made great strides in continuing its value of fiscal sustainability. With two separate trusts, one for pension liabilities and one for other post-employment benefit liabilities (OPEB), the city is actively working to pay the full actuarial determined contribution and more annually. The actions in here are two fold, 1) reduce the contribution to the 115 Trust Fund by 50% and 2) realize savings in lower OPEB costs as a result of the most recent actuarial study. Internal Service Fund Allocated Charges ($1,700,000)($2,750,000) Attachment A, Exhibit 1 Page 22 of 23 ATTACHMENT A, EXHIBIT 1 Revenue Expense Revenue Expense Department Budget Adjustment Actions Program Adjustments Adjustments Adjustments Adjustments GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Non- Departmental Implementation Costs Associated with Balancing Strategy This action appropriates $2 million in FY 2021 to partially offset reduced savings in some of the actions described above. Since some actions cannot be fully implemented immediately, this funding represents the savings that may not materialize due to delays in full implementation. N/A $0 $2,000,000 $0 $2,000,000 Fund Balance Adjustment to Fund Balance (Budget Stabilization Reserve) This action adjusts the General Fund Budget Stabilization Reserve to offset the actions recommended in this report. The baseline FY 2021 Proposed Operating Budget included a contribution to the BSR of $2.7 million, therefore this is not a draw on the existing BSR level, rather it reduces the contribution from $2.7 to $1.0 million. City Council may choose to allocate this $1 million through their policy decisions in the FY 2021 Budget Hearing process. Fund Balance/ Reserves $0 ($1,777,205)$0 $0 TOTAL ($45,204,071)($45,204,071)($91,016,831)($66,200,392) Attachment A, Exhibit 1 Page 23 of 23 ATTACHMENT A, EXHIBIT 2 Project Project Revenue Expense Revenue Expense Revenue Expense Number Title Adjustments Adjustments Adjustments Adjustments Funding Funding PE-17006 Baylands Flood Protection Levee Improvements $ - $ (998,000) $ - $ (998,000) $ - $ 100,000 PF-01003 Building Systems Improvements $ - $ (300,000) $ - $ (300,000) $ - $ 1,433,637 PE-09003 City Facility Parking Lot Maintenance $ - $ (400,000) $ - $ (400,000) $ 100,000 $ 1,142,641 PF-02022 Facility Interior Finishes Replacement $ - $ (400,000) $ - $ (400,000) $ 413,000 $ 1,773,217 PE-18004 Fire Station 4 Replacement (SUMC Funding) $ - $ - $ 8,150,000 $ - $ 8,900,000 $ 9,850,000 PE-15007 New Downtown Parking Garage (SUMC Funding) $ - $ - $ (9,072,000) $ (21,497,000) $ 5,541,000 $ 5,138,172 PE-15011 Ventura Buildings Improvements $ - $ (2,034,197) $ - $ (2,034,197) $ - $ - PG-06001 Athletic Courts Resurfacing $ - $ (47,240) $ - $ (101,400) $ - $ 1,319,200 PG-19001 Baylands Athletic Center 10.5 Acre Expansion Plan $ - $ (81,400) $ - $ (81,400) $ - $ - PE-19003 Birch Street (Various Funding Sources) $ - $ - $ 2,400,000 $ 2,400,000 $ 2,400,000 $ 2,400,000 PG-17001 Foothills Park, Pearson Arast. Prsrv, & Esther Clark Park Comp Conserve Plan $ - $ (319,200) $ - $ (170,400) $ - $ 319,200 PG-18002 Turf Management Plan $ - $ (109,900) $ - $ (109,900) $ - $ - PE-13017 El Camino Median Landscape Improvements $ - $ (108,300) $ - $ (1,009,800) $ - $ - PO-89003 Sidewalk Repairs $ - $ (1,000,000) $ - $ (1,800,000) $ - $ 6,009,482 CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED CAPITAL IMPROVEMENT PROGRAM CAPITAL IMPROVEMENT FUND 5-Yr CIP RevisedFY 2021 Funding 5-yr CIP Funding Attachment A, Exhibit 2 Page 1 of 2 ATTACHMENT A, EXHIBIT 2 Project Project Revenue Expense Revenue Expense Revenue Expense Number Title Adjustments Adjustments Adjustments Adjustments Funding Funding CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED CAPITAL IMPROVEMENT PROGRAM 5-Yr CIP RevisedFY 2021 Funding 5-yr CIP Funding PO-05054 Street Lights Improvements $ - $ (300,000) $ - $ (500,000) $ - $ 868,987 PE-86070 Street Maintenance $ - $ (1,000,000) $ - $ (2,000,000) $ 16,378,450 $ 23,453,400 PL-04010 Bicycle and Pedestrian Plan Implementation $ - $ (1,000,000) $ - $ (4,000,000) $ 2,400,000 $ 7,323,595 PL-15001 Embarcadero Road at El Camino Improvements $ - $ - $ - $ (7,426,600) $ - $ - PL-15003 Parking District Implementation $ - $ (173,674) $ - $ (375,574) $ - $ 712,300 PL-05030 Traffic Signal and Intelligent Transportation System Upgrades $ - $ (500,000) $ - $ (500,000) $ 3,480,000 $ 5,051,655 PL-12000 Transportation and Parking Improvements $ - $ - $ - $ (200,000) $ - $ 2,649,042 TOTAL CAPITAL IMPROVEMENT FUND PROJECT ADJUSTMENTS $ - $ (8,771,911) $ 1,478,000 $ (41,504,271) $ 39,612,450 $ 69,544,528 VR-21000 Scheduled Vehicle and Equipment Replacement- Fiscal Year 2021 $ (1,786,000) $ (1,786,000) $ (1,786,000) $ (1,786,000) $ 1,405,000 $ 1,405,000 VR-22000 Scheduled Vehicle and Equipment Replacement- Fiscal Year 2022 $ - $ - $ (1,786,000) $ (1,786,000) $ 1,377,000 $ 1,377,000 $ (1,786,000) $ (1,786,000) $ (3,572,000) $ (3,572,000) $ 2,782,000 $ 2,782,000 $ (1,786,000) $ (10,557,911) $ (2,094,000) $ (45,076,271) $ 42,394,450 $ 74,448,528 VEHICLE REPLACEMENT FUND TOTAL VEHICLE REPLACEMENT FUND PROJECT ADJUSTMENTS TOTAL ALL FUNDS Attachment A, Exhibit 2 Page 2 of 2 CAPITAL IMPROVEMENT FUND Summary of Capital Activity CAPITAL IMPROVEMENT FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Beginning Fund Balance Infrastructure Reserve - Beginning Fund Balance 51,519,893 51,456,186 38,365,788 15,993,868 9,604,373 3,234,513 1,507,646 38,365,788 Reserve: Roth Building & Sea Scout Building TDRs 4,687,468 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 Reserve: Library Bond Proceeds 638,000 588,000 588,000 588,000 588,000 588,000 588,000 588,000 Reserve: Infrastructure Plan 25,537,577 58,812,390 0 0 0 0 0 0 Reserve: Debt Service 0 0 0 0 0 0 2,500,000 0 Reserve: Future Capital Needs 0 0 0 0 0 0 0 0 Total Beginning Fund Balance 82,382,938 115,776,358 43,873,570 21,501,650 15,112,155 8,742,295 9,515,428 43,873,570 General Fund Contributions Annual General Fund Capital Transfer 16,958,000 15,323,000 7,648,500 7,840,500 12,604,750 16,875,000 17,288,000 62,256,750 Transfer from General Fund - TOT Funding 8,691,712 7,155,906 6,555,900 8,850,300 10,250,700 11,294,800 12,806,400 49,758,100 Interest Income 1,279,833 1,178,500 1,189,600 1,189,600 1,189,600 1,189,600 1,189,600 5,948,000 Total General Fund Contributions 26,929,545 23,657,406 15,394,000 17,880,400 24,045,050 29,359,400 31,284,000 117,962,850 Project Reimbursements & Fund Transfers Transfer from California Avenue Parking District Fund PL-16002 Parking Management and System Implementation 0 138,000 0 0 0 0 0 0 Total Transfer 0 138,000 0 0 0 0 0 0 Transfer from Charleston/Arastradero Fund PE-13011 Charleston/Arastradero Corridor Project 0 18,000 0 0 0 0 0 0 Total Transfer 0 18,000 0 0 0 0 0 0 CAPITAL IMPROVEMENT FUND Transfer from Community Center Impact Fee Fund AC-18001 JMZ Renovation 1,025,717 1,671,860 125,498 0 0 0 0 125,498 PE-08001 Rinconada Park Improvements 0 1,999,529 400,000 0 0 0 0 400,000 Total Transfer 1,025,717 3,671,389 525,498 0 0 0 0 525,498 Transfer from Gas Tax Fund PE-13011 Charleston/Arastradero Corridor Project 1,170,237 0 0 0 0 0 0 0 PL-00026 Safe Routes To School 100,000 100,000 100,000 100,000 100,000 100,000 100,000 500,000 PE-86070 Street Maintenance 1,300,000 2,453,997 2,610,690 2,610,690 2,610,690 2,610,690 2,610,690 13,053,450 Total Transfer 2,570,237 2,553,997 2,710,690 2,710,690 2,710,690 2,710,690 2,710,690 13,553,450 Transfer from Library Impact Fee Fund LB-21000 Library Automated Material Handling 0 0 80,000 180,000 180,000 190,000 0 630,000 Total Transfer 0 0 80,000 180,000 180,000 190,000 0 630,000 Transfer from New Public Safety Facilities Impact Fee Fund PE-15001 New Public Safety Building 0 0 350,000 0 0 0 0 350,000 Total Transfer 0 0 350,000 0 0 0 0 350,000 Transfer from Parks Dedication Fee Fund PE-18006 Byxbee Park Completion 0 0 2,400,000 0 0 0 0 2,400,000 Total Transfer 0 0 2,400,000 0 0 0 0 2,400,000 Transfer from Parks Development Impact Fee Fund PE-19003 Birch Street Improvements 0 2,720,000 0 0 0 0 0 0 PG-18001 Dog Park Installation and Renovation 0 0 0 0 150,000 0 150,000 300,000 PG-19000 Park Restroom Installation 0 0 0 350,000 0 350,000 0 700,000 Total Transfer 0 2,720,000 0 350,000 150,000 350,000 150,000 1,000,000 Transfer from Refuse Fund PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 9,500 10,250 0 0 0 0 10,250 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 27,000 27,000 0 0 0 0 27,000 Total Transfer 0 36,500 37,250 0 0 0 0 37,250 Transfer from Residential Parking Permits Program Fund PL-16002 Parking Management and System Implementation 0 255,000 0 0 0 0 0 0 Total Transfer 0 255,000 0 0 0 0 0 0 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND Transfer from San Antonio/West Bayshore Fund PL-05030 Traffic Signal and Intelligent Transportation System Upgrades 0 1,283,400 0 0 0 0 0 0 Total Transfer 0 1,283,400 0 0 0 0 0 0 Transfer from Stanford University Medical Center Development Agreement Fund PL-04010 Bicycle and Pedestrian Plan-Implementation Project 0 0 1,200,000 1,200,000 0 0 0 2,400,000 PE-18004 Fire Station 4 Replacement 0 0 750,000 4,075,000 4,075,000 0 0 8,900,000 PE-15001 New Public Safety Building 0 0 800,000 0 0 0 0 800,000 PL-16000 Quarry Road Improvements 0 200,000 0 1,493,513 0 0 0 1,493,513 Pl-17001 Railroad Grade Separation 0 0 500,000 500,000 0 0 0 1,000,000 Total Transfer 0 200,000 3,250,000 7,268,513 4,075,000 0 0 14,593,513 Transfer from Storm Drainage Fund PE-13011 Charleston/Arastradero Corrider Project 330,000 0 0 0 0 0 0 0 Total Transfer 330,000 0 0 0 0 0 0 0 Transfer from Traffic Impact Fee Fund PL-05030 Traffic Signal and Intelligent Transportation System Upgrades 506,475 0 400,000 395,000 395,000 395,000 395,000 1,980,000 Total Transfer 506,475 0 400,000 395,000 395,000 395,000 395,000 1,980,000 Transfer from University Avenue Parking District Fund PL-15004 Downtown Parking Wayfinding 280,015 40,000 0 0 0 0 0 0 PL-16002 Parking Management & System Implementation 0 752,220 0 0 0 0 0 0 PF-14003 University Avenue Parking Improvements 63,517 343,000 100,000 115,000 75,000 65,000 0 355,000 Total Transfer 343,532 1,135,220 100,000 115,000 75,000 65,000 0 355,000 Transfer from University Avenue Parking In Lieu Fund PE-15007 New Downtown Parking Garage 0 0 0 5,541,000 0 0 0 5,541,000 Total Transfer 0 0 0 5,541,000 0 0 0 5,541,000 Transfer from Utilities Administration Fund PE-09003 City Facility Parking Lot Maintenance 0 0 0 0 100,000 0 0 100,000 PF-02022 Facility Interior Finishes Replacement 370,000 0 169,000 176,000 0 0 0 345,000 PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 342,000 369,000 0 0 0 0 369,000 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 972,000 972,000 0 0 0 0 972,000 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND PE-19001 Water, Gas, Wastewater Office Remodel 70,000 654,000 0 0 0 0 0 0 Total Transfer 440,000 1,968,000 1,510,000 176,000 100,000 0 0 1,786,000 Transfer from Vehicle Maintenance Fund PF-02022 Facility Interior Finishes Replacement 0 0 0 0 68,000 0 0 68,000 PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 190,000 205,000 0 0 0 0 205,000 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 540,000 540,000 0 0 0 0 540,000 Total Transfer 0 730,000 745,000 0 68,000 0 0 813,000 Grants/Other Revenue AC-86017 Art in Public Spaces: Federal Grant and Private Donations 175,000 0 0 0 0 0 0 0 FD-21000 Automated External Defibrillator Replacement: Stanford 0 0 38,000 0 0 0 0 38,000 FD-20000 Cardiac Monitor Replacement: Stanford 0 142,000 0 0 0 0 0 0 PE-13011 Charleston/Arastradero Corridor Project: VTA Grant 315,929 206,290 1,303,710 0 0 0 0 1,303,710 PL-20000 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements: CalTrans Section 130 0 500,000 4,000,000 0 0 0 0 4,000,000 PE-17010 Civic Center Electrical Upgrade & EV Charger Installation: BAAQMD Grant 0 243,000 0 0 0 0 0 0 PL-18000 El Camino Real Pedestrian Safety and Streetscape Project: VTA Grant 0 0 2,000,000 2,000,000 1,138,750 0 0 5,138,750 FD-22000 Extrication Tool Replacement: Stanford 0 0 0 42,700 0 0 0 42,700 FD-14002 Fire Ringdown System Replacement: Stanford 0 45,000 0 0 0 0 0 0 PE-19003 Birch Street Improvements 41,995,000 0 0 2,400,000 0 0 0 2,400,000 PG-13003 Golf Reconfiguration & Baylands Athletic Center Improvements: SF Creek Joint Powers and Certificates of Participation 0 2,250,000 0 0 0 0 0 0 PE-11011 Highway 101 Pedestrian/Bicycle Overpass Project: Santa Clara County & OBAG Grants and Google Reimbursement 0 9,350,000 1,500,000 0 0 0 0 1,500,000 AC-18001 JMZ Renovation: IMLS Grant 18,956 240,200 0 0 0 0 0 0 PE-15001 New Public Safety Building: Certificates of Participation 0 0 102,000,000 0 0 0 0 102,000,000 PE-12011 Newell Road/San Francisquito Creek Bridge Replacement: Caltrans & Silicon Valley Water 56,797 1,949,600 5,075,000 5,775,000 0 0 0 10,850,000 PF-16003 Parking Lot Q Elevator Modernization: Homeowners Association Reimbursement 0 0 0 0 0 0 0 0 PL-17001 Railroad Grade Separation: Measure B 0 2,000,000 500,000 500,000 1,000,000 1,000,000 1,000,000 4,000,000 PL-00026 Safe Routes To School: VTA Grant 0 0 459,677 459,677 0 0 0 919,354 FD-20001 Self-Contanied Breathing Apparatus (SCBA) Air Compressor Replacement: Stanford 0 0 16,300 0 0 0 0 16,300 FD-18000 Self-Contained Breathing Apparatus (SCBA) Replacement: Stanford 5,958 3,700 0 0 0 0 0 0 PE-86070 Street Maintenance: State Grant 505,463 2,172,180 965,000 965,000 465,000 465,000 465,000 3,325,000 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND FD-20002 Thermal Imaging Cameras Replacement: Stanford 0 8,500 0 0 0 0 0 0 PL-05030 Traffic Signal and Intelligent Transportation System Upgrades: Measure B 52,552 700,000 300,000 300,000 300,000 300,000 300,000 1,500,000 Total Grants/Other Revenue 43,125,655 19,810,470 118,157,687 12,442,377 2,903,750 1,765,000 1,765,000 137,033,814 Total Revenue 75,271,161 58,177,382 145,660,125 47,058,980 34,702,490 34,835,090 36,304,690 293,020,375 Total Sources 157,654,099 173,953,740 189,533,695 68,560,630 49,814,645 43,577,385 45,820,118 336,893,945 Use of Funds Buildings & Facilities PF-93009 Americans With Disabilities Act Compliance 227,637 200,000 671,826 342,800 369,000 447,400 530,000 2,361,026 PE-19002 Animal Shelter Renovation 270,962 2,939,971 582,657 0 0 0 0 582,657 PE-14018 Baylands Boardwalk Improvements 1,417,456 164,657 110,519 0 0 0 0 110,519 PE-17006 Baylands Flood Protection Levee Improvements 133,333 0 100,000 0 0 0 0 100,000 PE-15029 Baylands Nature Interpretive Center Facility Improvements 0 2,008 0 0 0 0 0 0 PF-01003 Building Systems Improvements 26,223 250,008 415,883 239,954 237,400 258,200 282,200 1,433,637 PE-20001 City Bridge Improvements 0 0 94,400 137,900 348,600 185,200 198,600 964,700 PE-20002 City Facilities Assessment and Record Plan Management System 0 150,000 164,800 0 0 0 0 164,800 PE-09003 City Facility Parking Lot Maintenance 27,831 319,725 419,941 233,500 489,200 0 0 1,142,641 PE-12017 City Hall First Floor Renovations 14,959 188,402 0 0 0 0 0 0 PE-17008 City Hall Floor 4 Remodel 466,360 7,500 0 0 0 0 0 0 PE-17009 City Hall Floor 5 Remodel 432,096 32,002 0 0 0 0 0 0 PE-19000 City Hall Space Planning 0 0 631,700 0 0 0 0 631,700 PE-17010 Civic Center Electrical Upgrade & EV Charger Installation 18,360 243,000 679,800 0 0 0 0 679,800 PE-18016 Civic Center Fire Life Safety and Electrical Upgrades 14,088 269,104 356,956 0 0 0 0 356,956 PE-15020 Civic Center Waterproofing Study and Repairs 968 49,800 617,255 0 0 0 0 617,255 PF-15005 Emergency Facilities Improvement 0 14,370 0 0 0 0 0 0 PF-02022 Facility Interior Finishes Replacement 75,238 564,100 560,626 261,331 365,414 270,146 315,700 1,773,217 FD-14002 Fire Ringdown System Replacement 244,144 156,000 0 0 0 0 0 0 PF-14002 Fire Station 1 Improvements 15,242 84,800 0 0 0 0 0 0 PE-15003 Fire Station 3 Replacement 3,878,007 2,423,274 0 0 0 0 0 0 PE-18004 Fire Station 4 Replacement 0 350,000 1,700,000 4,075,000 4,075,000 0 0 9,850,000 PE-18002 High and Bryant Street Garages Waterproofing and Repairs 26,472 213,454 210,446 0 0 0 0 210,446 PD-14000 Internal Alarm System Replacement 50,759 26,800 0 0 0 0 0 0 AC-18001 JMZ Renovation 474,155 1,202,200 2,231,551 0 0 0 0 2,231,551 LB-21000 Library Automated Material Handling 0 0 95,500 220,900 232,500 255,000 0 803,900 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND PE-14015 Lucie Stern Buildings Mechanical and Electrical Upgrades 2,420,500 505,455 0 0 0 0 0 0 PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 0 2,169,800 0 0 0 0 2,169,800 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 69,649 257,000 6,038,732 0 0 0 0 6,038,732 PE-18000 New California Avenue Area Parking Garage 5,044,555 43,587,279 0 0 0 0 0 0 PE-15007 New Downtown Parking Garage 510,437 1,073,121 35,172 5,103,000 0 0 0 5,138,172 PE-15001 New Public Safety Building 1,563,200 7,000,000 102,800,000 3,400,000 400,000 0 0 106,600,000 PF-18000 Parking Lot J Elevator Modernization 413,998 286,001 0 0 0 0 0 0 AC-18000 Performing Arts Venue Seat Replacement 0 0 439,400 0 0 0 0 439,400 PF-00006 Roofing Replacement 770,934 184,435 867,602 474,900 285,629 674,076 621,886 2,924,093 PF-07011 Roth Building Maintenance 1,420 10,000 31,973 0 0 0 0 31,973 PF-14003 University Avenue Parking Improvements 48,116 0 462,400 160,500 133,300 137,200 0 893,400 PE-15011 Ventura Buildings Improvements 143,871 25,000 0 0 0 0 0 0 PE-19001 Water, Gas, Wastewater Office Remodel 5,996 90,765 692,035 0 0 0 0 692,035 Total Building & Facilities 18,806,966 62,870,231 123,180,974 14,649,785 6,936,043 2,227,222 1,948,386 148,942,410 Department Technology Upgrades and Improvements FD-21000 Automated External Defibrillator Replacement 0 0 219,700 0 0 0 0 219,700 FD-20000 Cardiac Monitor Replacement 0 850,000 0 0 0 0 0 0 FD-22000 Extrication Tool Replacement 0 0 0 283,400 0 0 0 283,400 PD-20000 Police Video Recording Systems Replacement 0 48,000 114,400 182,700 0 0 0 297,100 FD-20001 Self-Contanied Breathing Apparatus (SCBA) Air Compressor Replacement 0 0 94,500 0 0 0 0 94,500 FD-18000 Self-Contained Breathing Apparatus (SCBA) Replacement 31,356 20,000 0 0 0 0 0 0 FD-20002 Thermal Imaging Cameras Replacement 0 99,000 0 0 0 0 0 0 Total Department Technology Upgrades and Improvements 31,356 1,017,000 428,600 466,100 0 0 0 894,700 Parks & Open Space AC-86017 Art In Public Spaces 208,945 1,239,055 1,738,194 280,700 190,800 225,372 245,900 2,680,966 PG-06001 Athletic Courts Resurfacing 55,378 950,000 188,960 216,640 286,600 303,700 323,300 1,319,200 PG-19001 Baylands Athletic Center 10.5 Acre Expansion Plan 10,402 10,000 0 0 0 0 0 0 PG-17000 Baylands Comprehensive Conservation Plan 205,089 90,000 7,100 0 0 0 0 7,100 OS-09002 Baylands Levee Repair for Public Safety Access 0 0 0 0 0 375,202 0 375,202 PG-06003 Benches, Signage, Walkways, Perimeter Landscaping 420,374 150,000 247,920 223,300 236,900 251,700 268,700 1,228,520 PE-19003 Birch Park Improvements 0 2,720,000 0 2,400,000 0 0 0 2,400,000 PE-16000 Bol Park Improvements 0 0 0 0 0 685,100 0 685,100 PE-17005 Boulware Park Improvements 23,830 20,102 442,499 0 0 0 0 442,499 PE-18006 Byxbee Park Completion 187,251 16,074 3,181,146 0 0 0 0 3,181,146 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND PG-14002 Cameron Park Improvements 0 20,000 197,800 0 0 0 0 197,800 PG-18001 Dog Park Installation and Renovation 15,746 0 164,800 0 200,000 0 225,600 590,400 OS-18000 Foothills Park Boronda Lake Dock Replacement 0 0 230,700 0 0 0 0 230,700 PE-20000 Foothills Park Dam Seepage Investigation & Repairs 0 30,000 0 0 0 0 0 0 PE-21000 Foothills Park Improvement Project 0 0 0 0 83,300 397,200 0 480,500 PG-17001 Foothills Park, Pearson Arastradero Preserve, and Esther Clark Park Comprehensive Conservation Plan 0 0 0 0 319,200 0 0 319,200 PG-18000 Golf Course Net and Artificial Turf Replacement 0 0 0 0 970,000 0 0 970,000 PG-13003 Golf Course Reconfiguration & Baylands Athletic Center Improvements 2,455 10,000 0 0 0 0 0 0 PG-21000 Heritage Park Site Amenities Replacement 0 0 0 0 0 0 195,500 195,500 PE-18012 Hoover Park Improvements 0 0 0 0 0 0 1,255,700 1,255,700 PE-21002 Johnson Park Renovation 0 0 0 0 0 474,800 1,573,900 2,048,700 PE-21003 Magical Bridge Playground Rubber and Synthetic Turf Resurfacing 0 0 404,050 463,250 0 0 0 867,300 PE-18010 Mitchell Park Improvements 0 0 0 0 374,000 1,059,895 0 1,433,895 OS-09001 Off-Road Pathway Resurfacing And Repair 0 173,000 324,000 136,900 147,300 158,600 171,500 938,300 OS-00002 Open Space Lakes And Pond Maintenance 14,406 71,350 113,350 59,900 64,200 68,700 74,000 380,150 OS-00001 Open Space Trails and Amenities 286,674 355,175 192,300 220,400 233,300 247,200 263,200 1,156,400 PG-09002 Parks and Open Space Emergency Repairs 177,434 40,000 211,721 201,500 266,100 306,900 325,000 1,311,221 PG-19000 Park Restroom Installation 0 0 0 440,900 0 494,400 0 935,300 PE-21001 Pearson Arastradero Improvement Project 0 0 0 0 70,800 306,700 0 377,500 OS-18001 Pearson Arastradero Preserve Parking Lot Improvement 0 0 170,300 0 0 0 0 170,300 PG-14001 Peers Park Improvements 0 0 0 0 0 289,600 0 289,600 PG-14000 Ramos Park Improvements 0 20,000 0 0 0 0 0 0 PE-08001 Rinconada Park Improvements 232,671 1,402,933 1,457,296 0 538,300 0 3,073,800 5,069,396 PE-18015 Robles Park Improvements 0 0 0 0 0 953,500 0 953,500 PG-14003 Seale Park Improvements 0 0 0 0 0 0 427,800 427,800 PG-22000 Werry Park Playground Improvements 0 0 0 0 0 126,000 0 126,000 Total Parks & Open Space 1,840,655 7,317,689 9,272,136 4,643,490 3,980,800 6,724,569 8,423,900 33,044,895 Streets and Sidewalks PE-17004 California Ave District Gateway Signs 729 142,886 0 0 0 0 0 0 PE-18001 CalTrain Corridor Video Management System Installation 749,178 99,232 0 0 0 0 0 0 PO-12001 Curb and Gutter Repairs 450,166 744,397 123,853 126,700 134,200 142,400 151,800 678,953 PE-12011 Newell Road/San Francisquito Creek Bridge Replacement 244,356 2,449,600 6,017,111 6,354,300 0 0 0 12,371,411 PO-89003 Sidewalk Repairs 1,658,872 1,534,312 1,195,982 595,500 1,400,900 1,406,500 1,410,600 6,009,482 PO-11000 Sign Reflectivity Upgrade 10,207 60,660 131,400 66,900 71,700 76,800 82,700 429,500 PE-13014 Street Lights Condition Assessment 0 0 0 0 242,000 0 0 242,000 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND PO-05054 Street Lights Improvements 100,374 38,306 156,287 103,800 119,000 235,500 254,400 868,987 PE-86070 Street Maintenance 5,353,373 13,386,539 4,053,700 4,074,200 5,091,900 5,110,200 5,123,400 23,453,400 PO-11001 Thermoplastic Lane Marking and Striping 13,006 98,328 133,400 97,100 103,300 110,100 117,800 561,700 Total Streets and Sidewalks 8,580,261 18,554,260 11,811,733 11,418,500 7,163,000 7,081,500 7,140,700 44,615,433 Traffic and Transportation PL-04010 Bicycle and Pedestrian Plan-Implementation Project 2,367,931 402,385 1,273,595 2,000,000 1,950,000 2,100,000 0 7,323,595 PE-13011 Charleston/Arastradero Corridor Project 4,589,736 12,300,000 0 0 0 0 0 0 PL-20000 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements 0 400,000 4,636,200 0 0 0 0 4,636,200 PL-14000 Churchill Avenue Enhanced Bikeway 113 181,534 1,000,000 1,000,000 1,160,000 0 0 3,160,000 PL-15002 Downtown Automated Parking Guidance Systems, Access Controls, and Revenue Collection Equipment 2,359 448 2,726,860 0 0 0 0 2,726,860 PL-16001 Downtown Mobility and Safety Improvements 1,803,034 100,000 0 0 0 0 0 0 PL-15004 Downtown Parking Wayfinding 346,824 589,038 0 0 0 0 0 0 PL-18000 El Camino Real Pedestrian Safety and Streetscape Project 108,594 43,167 2,954,181 2,202,700 1,349,050 0 0 6,505,931 PL-19000 Emergency Vehicle Traffic Signal Preemption System Pilot 0 597,500 0 0 0 0 0 0 PE-11011 Highway 101 Pedestrian/Bicycle Overpass Project 1,084,589 17,792,509 0 0 0 0 0 0 PL-15003 Parking District Implementation 32,760 307,257 0 0 218,800 236,700 256,800 712,300 PL-16002 Parking Management & System Implementation 248 627,000 563,600 0 0 0 0 563,600 PL-16000 Quarry Road Improvements 555,425 6,000 928,400 1,353,900 2,748,000 0 0 5,030,300 PL-17001 Railroad Grade Separation 1,232,373 1,706,421 4,260,625 1,233,600 1,271,900 1,311,400 1,190,700 9,268,225 PL-00026 Safe Routes To School 89,373 218,800 661,177 677,477 241,200 266,500 260,600 2,106,954 PL-05030 Traffic Signal and Intelligent Transportation System 368,200 1,695,700 1,172,355 935,950 886,250 980,700 1,076,400 5,051,655 PL-12000 Transportation and Parking Improvements 290,303 330,811 471,342 487,000 518,600 552,900 619,200 2,649,042 Total Traffic and Transportation 12,871,862 37,298,570 20,648,335 9,890,627 10,343,800 5,448,200 3,403,700 49,734,662 Administration AS-10000 Capital Improvement Fund Administration 169,401 587,420 310,267 2,713,973 2,987,707 2,924,466 3,933,422 12,869,835 Total Administration 169,401 587,420 310,267 2,713,973 2,987,707 2,924,466 3,933,422 12,869,835 Total Project Expenses 42,300,501 127,645,170 165,652,045 43,782,475 31,411,350 24,405,957 24,850,108 290,101,935 Transfers to Other Funds Debt Service Fund (New California Avenue Parking Garage)0 2,335,000 2,380,000 2,380,000 2,375,000 2,370,000 2,365,000 11,870,000 General Benefits Funds 53,757 0 0 0 0 0 0 0 Total Transfers to Other Funds 53,757 2,335,000 2,380,000 2,380,000 2,375,000 2,370,000 2,365,000 11,870,000 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total CAPITAL IMPROVEMENT FUND Debt Service Certificates of Participation Debt Repayment (New Public Safety Building)0 0 0 7,286,000 7,286,000 7,286,000 7,286,000 29,144,000 Golf Course Certificates of Participation Bond Issuance 17,507 0 0 0 0 0 0 0 PG-18002 Turf Management Plan (Fund 209)17,507 100,000 0 0 0 0 0 0 Total Debt Service 35,014 100,000 0 7,286,000 7,286,000 7,286,000 7,286,000 29,144,000 Total Expenses 42,389,272 130,080,170 168,032,045 53,448,475 41,072,350 34,061,957 34,501,108 331,115,935 Reserves Reserve: Roth Building & Sea Scout Building TDRs 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 Reserve: Library Bond Proceeds 588,000 588,000 588,000 588,000 588,000 588,000 588,000 588,000 Reserve: Infrastructure Plan 58,812,390 0 0 0 0 0 0 0 Reserve: Debt Service 0 0 0 0 0 2,500,000 5,000,000 5,000,000 Reserve: Future Capital Needs 0 0 0 0 0 0 0 0 Total Reserves 64,320,172 5,507,782 5,507,782 5,507,782 5,507,782 8,007,782 10,507,782 10,507,782 Total Ending Fund Balance (Infrastructure Reserve)50,944,655 38,365,788 15,993,868 9,604,373 3,234,513 1,507,646 811,228 (4,729,772) Total Uses 157,654,099 173,953,740 189,533,695 68,560,630 49,814,645 43,577,385 45,820,118 336,893,945 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total City of Palo Alto Full Time Position Vacancies (as of May 2020) GENERAL FUND ENTERPRISE FUNDS OTHER FUNDS GRAND TOTALAdministrative Services Department 10.00 1.00 1.00 12.00 Accountant -1.00 -1.00 Acct Spec 2.00 - - 2.00 Administrative Associate III 1.00 - - 1.00 Chief Procurement Officer 1.00 - - 1.00 Contracts Administrator 2.00 - - 2.00 Director Office of Management and Budget 1.00 - - 1.00 Management Analyst 1.00 - - 1.00 Offset Equip Op - - 1.00 1.00 Senior Management Analyst 1.00 - - 1.00 Storekeeper-L 1.00 - - 1.00City Attorney's Office 1.00 - - 1.00 Legal Fellow 1.00 - - 1.00 City Auditor's Office 2.00 - - 2.00 City Auditor 1.00 - - 1.00 Performance Auditor II 1.00 - - 1.00 City Manager's Office 2.00 - - 2.00 Administrative Assistant 1.00 - - 1.00 Assistant to City Manager 1.00 - - 1.00 Community Services Department 5.75 - - 5.75 Administrative Associate III 1.00 - - 1.00 Assistant Director Community Services 1.00 - - 1.00 Division Manager Open Space Parks & Golf 1.00 - - 1.00 Manager Community Services 1.00 - - 1.00 Prod Arts/Sci Prog 0.75 - - 0.75 Superintendent Recreation 1.00 - - 1.00 Fire Department 2.00 2.00 Deputy Fire Chief 1.00 - - 1.00 Fire Cap Haz Mat EMT 1.00 - - 1.00 Information Technology Department - - 4.00 4.00 Director Information Technology/CIO - - 1.00 1.00 Senior Technologist - - 2.00 2.00 Technologist - - 1.00 1.00 Library Services Department 4.00 - - 4.00 Director Libraries 1.00 - - 1.00 Library Specialist 1.00 - - 1.00 Sr Librarian 2.00 - - 2.00 Office of Transportation - - 1.00 1.00 Senior Engineer - - 1.00 1.00Planning & Development Services Department 10.00 - - 10.00 Administrative Assistant 1.00 - - 1.00 Bldg/Plg Technician 1.00 - - 1.00 Code Enforcement Off 2.00 - - 2.00 Manager Planning 1.00 - - 1.00 Principal Planner 2.00 - - 2.00 Program Assistant 1.00 - - 1.00 Sr Planner 2.00 - - 2.00 Attachment C City of Palo Alto Full Time Position Vacancies (as of May 2020) Police Department 15.00 - - 15.00 Administrative Associate II 1.00 - - 1.00 Animal Control Off 1.00 - - 1.00 Community Serv Offcr 2.00 - - 2.00 Police Lieut-Adv 1.00 - - 1.00 Police Officer-Adv 1.00 - - 1.00 Police Officer-Inter 3.00 - - 3.00 Program Assistant II 1.00 - - 1.00 Public Safety Dispatcher I 1.00 - - 1.00 Public Safety Dispatcher II 4.00 - - 4.00 Public Works Department 1.00 4.00 5.00 10.00 Administrative Associate II -1.00 -1.00 Assoc Engineer --1.00 1.00 Engineer --1.00 1.00 Facilities Technician -1.00 -1.00 Heavy Equip Oper 1.00 - - 1.00 Laboratory Tech Wqc -1.00 -1.00 Manager Fleet --1.00 1.00 Motor Equipment Mechanic II --1.00 1.00 Project Manager --1.00 1.00 St Maint Asst -1.00 -1.00 Utilities Department -34.00 -34.00 Assistant Director Utilities Engineering -1.00 -1.00 Business Analyst -1.00 -1.00 Elec Undgd Inspec -2.00 -2.00 Gas and Water Meas and Cntrl Tech Lead -1.00 -1.00 Gas and Water Meas and Control Tech -2.00 -2.00 Heavy Equip Oper -1.00 -1.00 Lineper/Cable Spl -5.00 -5.00 Lineper/Cable Spl-L -3.00 -3.00 Maintenance Mechanic-Welding -1.00 -1.00 Manager Utilities Program Services -1.00 -1.00 Metering Technician Lead -1.00 -1.00 Overhead Underground Troubleman -2.00 -2.00 Power Engr -1.00 -1.00 Street Light Traffic Signal & Fiber Tech -1.00 -1.00 Substation Electrician -2.00 -2.00 Supervising Electric Project Engineer -1.00 -1.00 Util Install/Rep -2.00 -2.00 Util Locator -1.00 -1.00 Util Syst Oper -1.00 -1.00 Utilities Chief Operating Officer -1.00 -1.00 Utilities Supervisor -2.00 -2.00 Utility Safety Officer -1.00 -1.00 Grand Total 52.75 39.00 11.00 102.75 Largest Vendor Payments by Fiscal Year (All Funds) *DATA AS OF 4/30/20 INCLUDES CHECK, ACH AND MOST INVOICE RELATED WIRE PAYMENTS (EXCLUDES TOP DOLLAR WIRE PMTS TO SFPUC AND CITY OF SUNNYVALE) VENDOR NAME FY18 FY19 FY20 TOTAL SWINERTON BUILDERS -$ 2,897,564$ 24,675,206$ 27,572,771$ C. OVERAA & CO.8,547,340$ 12,455,829$ 1,330,893$ 22,334,062$ O'GRADY PAVING INC.6,251,071$ 9,179,471$ 6,326,335$ 21,756,877$ RANGER PIPELINES 2,040,202$ 14,240,386$ 4,592,976$ 20,873,563$ DESILVA GATES CONSTRUCTION 7,013,560$ 3,767,235$ 9,478,196$ 20,258,991$ PALO ALTO UNIFIED SCHOOL DISTRICT 5,600,012$ 5,266,113$ 5,223,984$ 16,090,109$ ANDERSON PACIFIC ENGINEERING 7,747,663$ 3,345,623$ 328,816$ 11,422,102$ AVENIDAS INC 3,002,076$ 3,010,299$ 538,621$ 6,550,996$ 4LEAF, INC.2,386,544$ 1,729,243$ 1,793,467$ 5,909,255$ ROSSDRULISCUSENBERY, ARCHITECTURE,1,611,495$ 1,412,938$ 2,830,919$ 5,855,352$ GRANITE CONSTRUCTION CO INC 3,061,631$ 2,065,432$ 459,325$ 5,586,388$ OB SPORTS GOLF MANAGEMENT LLC 859,000$ 2,629,000$ 2,096,578$ 5,584,578$ STRAWN CONSTRUCTION, INC.1,536,897$ 2,915,952$ 860,990$ 5,313,839$ SWA SERVICES GROUP 1,450,898$ 1,954,407$ 1,720,625$ 5,125,930$ DALEO INC 3,463,303$ 1,483,589$ -$ 4,946,892$ WEST COAST ARBORISTS, INC 1,944,145$ 1,241,289$ 1,204,943$ 4,390,377$ NATIONAL AUTO FLEET GROUP 2,424,827$ 1,280,047$ 665,990$ 4,370,865$ NOVA PARTNERS INC 1,487,097$ 1,247,614$ 1,400,464$ 4,135,175$ FRIENDS OF PALO ALTO JR MUSEUM 2,255,309$ 311,500$ 1,009,039$ 3,575,848$ AUTHORITY CA CITIES EXCESS LIAB 918,373$ 1,180,580$ 1,404,370$ 3,503,323$ STATE WATER RESOURCES CONTROL BOARD 1,310,503$ 1,271,025$ 847,668$ 3,429,195$ UTILITY TREE SERVICES INC 1,341,503$ 1,208,340$ 818,615$ 3,368,459$ RMC WATER AND ENVIRONMENTAL (AKA WOODWARD & CURRAN) 1,616,539$ 830,125$ 841,825$ 3,288,489$ LEWIS & TIBBITTS INC 1,730,876$ 1,225,616$ -$ 2,956,493$ BRIGHTVIEW GOLF MAINTENANCE, INC 874,858$ 1,076,321$ 740,720$ 2,691,900$ R&S CONSTRUCTION MANAGEMENT INC -$ -$ 2,600,261$ 2,600,261$ WADSWORTH GOLF CONSTRUCTION COMPANY 2,492,244$ -$ -$ 2,492,244$ VILA CONSTRUCTION COMPANY 119,814$ 2,065,025$ 203,358$ 2,388,197$ AECOM 129,319$ 1,440,565$ 769,246$ 2,339,130$ TANNER PACIFIC, INC.1,128,227$ 801,776$ 239,425$ 2,169,427$ JJR CONSTRUCTION 712,812$ -$ 1,292,940$ 2,005,752$ BIGGS CARDOSA ASSOCIATES INC 1,019,568$ 658,264$ 164,079$ 1,841,911$ MOTOROLA SOLUTIONS, INC.1,304,082$ 223,046$ 300,485$ 1,827,613$ SIEMENS INDUSTRY INC.97,232$ 689,013$ 1,034,148$ 1,820,393$ MEAD & HUNT 468,742$ 637,156$ 683,633$ 1,789,531$ MIDPENINSULA MEDIA CENTER 332,830$ 506,914$ 737,896$ 1,577,640$ MP NEXLEVEL 168,036$ 199,729$ 1,208,577$ 1,576,342$ VSS INTERNATIONAL, INC -$ -$ 1,517,519$ 1,517,519$ CYPRESS SECURITY, LLC 1,135,963$ 332,721$ -$ 1,468,683$ KJ WOODS CONSTRUCTION INC -$ 1,436,187$ -$ 1,436,187$ GRAHAM CONTRACTORS INC 1,176,568$ -$ -$ 1,176,568$ VORTEX MARINE CONSTRUCTION, INC.-$ 1,075,018$ 27,002$ 1,102,020$ PALO ALTO TMA -$ 370,000$ 692,000$ 1,062,000$ COUNTY OF SANTA CLARA ROADS & AIRPORTS 1,018,028$ -$ 2,083$ 1,020,111$ STRYKER SALES CORPORATION 31,365$ -$ 861,119$ 892,484$ LSI LABYRINTH SOLUTIONS -$ -$ 795,805$ 795,805$ BURNS & MCDONNELL 11,898$ -$ 724,896$ 736,794$ ARB INC -$ -$ 692,019$ 692,019$ GRAND TOTAL 81,822,450$ 89,660,952$ 85,737,058$ 257,220,459$ Attachment D