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HomeMy WebLinkAboutStaff Report 11330 City of Palo Alto (ID # 11330) City Council Staff Report Report Type: Action Items Meeting Date: 6/22/2020 City of Palo Alto Page 1 Summary Title: Adoption of FY 2021 Budget, Municipal Fees, and Municipal Code Change Title: PUBLIC HEARING: Adoption of Budget Ordinance for Fiscal Year 2021, Including Adoption of Operating and Capital Budgets and Municipal Fee Schedule; Adoption of an Ordinance Amending Section 2.04.360 of the Palo Alto Municipal Code to Allow Council Members a Salary Waiver Option (FIRST READING: May 26, 2020 PASSED: 7-0); and Review and Accept the June 30, 2019 Actuarial Valuation of the Palo Alto’s Retiree Healthcare Plan and Funding Strategy From: City Manager Lead Department: Administrative Services Recommended Motion Staff recommends that the City Council: 1. Adopt the Fiscal Year 2021 Budget Ordinance (Attachment A), which includes: a. City Manager’s Fiscal Year 2021 Proposed Operating and Capital Budgets, previously distributed at the April 20th City Council Meeting (Attachment A, Exhibit 1) b. Amendments to the City Manager’s Fiscal Year 2021 Proposed Operating Budget (Attachment A, Exhibit 2) c. Amendments to the City Manager’s Fiscal Year 2021 Proposed Capital Budget (Attachment A, Exhibit 3) d. Allocated Charge Amendments to the City Manager’s Fiscal Year 2021 Proposed Operating and Capital Budgets (Attachment A, Exhibit 4) e. Fiscal Year 2021 City Table of Organization (Attachment A, Exhibit 5); and f. Fiscal Year 2021 Municipal Fee Changes (Attachment A, Exhibit 6) 2. Adopt the Ordinance (Attachment E) Amending Section 2.04.360 of the Palo Alto Municipal Code to Allow Council Members a Salary Waiver Option. A regular majority vote is required to approve this ordinance which becomes effective 30 days after this second reading and final adoption. 3. Accept the Fiscal Year 2021 – 2025 Capital Improvement Plan. 4. As recommended by the Finance Committee at the May 5, 2020 meeting (CMR 11284), accept the June 30, 2019 biennial actuarial valuation of Palo Alto’s Retiree Healthcare Plan and approve full funding of the Actuarial Determined Calculation (ADC) for Fiscal Year 2021 and Fiscal Year 2022 using a 6.25% Discount Rate for the calculation (Attachment B). City of Palo Alto Page 2 Executive Summary This memorandum summarizes changes to the City Manager’s Fiscal Year 2021 Proposed Budget through Budget Hearings with the City Council and brings forth refined actions to revise the Fiscal Year 2021 Proposed Budget for the City Council review and Adoption of the FY 2021 Operating and Capital Budgets as well as the FY 2021 Municipal Fee Schedule and all the supporting necessary documents for formal adoption by the City Council such as the FY 2021 Budget Ordinance and Table of Organization. Overall, the City’s General Fund is recommended to have $197.0 million in revenues and $197.0 million in expense, a balanced budget for FY 2021. These funding levels reflect a nearly 20 percent reduction from the FY 2021 Proposed Budget (released on April 20) and a 15 percent reduction compared to the FY 2020 Adopted Operating Budget. The City’s Capital Improvement Plan reflects a $300.1 million FY 2021 budget, and a $774.6 million plan over the five-year CIP (FY 2021- FY 2025). Of this, the General Capital Fund FY 2021 budget reflects expected expenses of $174.4 million and $298.6 million over the five-year CIP. Overall, this includes a reduction of 74 full time staff and the equivalent of 26.18 FTE part-time staff resulting in a workforce of 960 full time positions and 81.1 (FTE) part-time positions. The General Fund will remain with staffing of 512 full time positions (a reduction of 62) and the equivalent of 55.6 FTE in part-time staffing (a reduction of 25.7 FTE). On May 4, the City Council provided direction to staff to assume a more conservative revenue estimate reflecting a loss of $39 million in General Fund tax revenues in FY 2021, reflecting on the severity of the current public health emergency and its impacts on the City’s financial situation. In a series of public hearings, the City Council reviewed the FY 2021 Proposed Operating Budget along with City Manager’s Report #11322, #11376, and other materials and provided tentative approvals, changes, and areas for further follow up. Staff has compiled all the feedback gained, updated for current changes that have occurred since May 26, and prepared all necessary documentation for the City Council adoption of the recommended FY 2021 budget. The unprecedented circumstances of this extended public health emergency forced the City to take a hard look at our operating and capital budgets and the FY 2021 budget reflects tough choices that we would prefer not to be outlining. Service impacts are unavoidable when more than 60 percent of the City’s General Fund budget is attributed to the outstanding workforce delivering the City’s services every day. The City has been forced to prioritize essential services and pare back discretionary services. Significant service delivery impacts include but are not limited to changes in the space available at the Cubberley facility as a result of a potential new lease agreement; changes in operating hours and program availability at Community Centers including increases in fees to aid in cost recovery levels; reduce Children’s Theatre productions; reduction in library hours across the 5 library system; reduction in police patrol staffing and special teams including investigations and traffic; implementing a brownout flexible staffing model for fire services resulting in reduced capacity when staff is out on leave; elimination of City of Palo Alto Page 3 shuttle services; restructuring of the Residential Preferential Parking Permit Program (RPP): and deferral of capital investments. However, this budget ensures that the City continues to proactively pay for long term liabilities, continues capital investments in our most critical infrastructure, provides resources for the City to successfully adapt from ‘shelter in place’ to future service delivery models, and establishes funding to ensure those service delivery transitions. Specifically, this budget ensures the City will focus on maintaining outdoor recreation and open space preserves providing the highest value to the community for the duration of the COVID-19 pandemic when outdoor options are critical during this time. Sworn police officers will focus on patrol and other collateral duties, while administrative procedures are completed through more cost effectively civilian staffing. All five libraries will remain open on reduced schedules - three of the five libraries will operate as “neighborhood” libraries (open 3 days a week) and two libraries will operate as “full-service” libraries (open 6 days a week). The City will support resident and the business community through minimal to no rate increases in various utility enterprise fees. Based on the most current information and status of parallel activities with the adoption of utility and public works enterprise rates and ongoing conversations with our labor groups, additional adjustments are included in this budget. Most significantly, this budget reflects savings of $2.3 million in the General Fund in recognition of compensation reductions for Management/ Professional employees, a decrease in expected savings due to a change in the recommended concessions from a 15 percent concession to a 10 percent concession. This change is due to the current status of other labor negotiations and the leadership managers continue to provide in stepping forward with these concessions. It is impractical operationally to implement the full concession, specifically the 26 days of furlough) as originally proposed. As such, balancing actions are necessary to offset this and are recommended in a reduction in the FY 2021 budgeted transition costs. Lastly, this report brings forward: • An ordinance for the City Council approval that would allow Council Members to waive their salary. This requires two readings, and this item serves as the second and final of those required readings. • A biennial actuarial valuation of Palo Alto’s Retiree Healthcare Plan and annual Actuarially Determined Contributions (ADC) for Fiscal Years 2021 and 2022 for approval as recommended unanimously by the Finance Committee on May 4, 2020. The report is organized by the following sections: • Fiscal Year 2021 Budget Balancing and Final Recommended Changes: A summary of the budget balancing process including major changes approved by the City Council and additional recommended adjustments from staff. This is organized by fund type beginning with Citywide, General Fund, General Capital Fund, Enterprise Funds, Internal Services Fund, Special Revenue Funds, and Capital Reappropriations. City of Palo Alto Page 4 • Table of Organization: A summary of additional changes to the Table of Organization after the version released April 20, 2020. • Municipal Fee Schedule: A summary of the changes recommended in the City Manager Report #11190 FY 2021 Proposed Municipal Fee Schedule. • Other Post-Employment Benefits (OPEB) Actuarial Valuation: This report details Palo Alto’s Retiree Healthcare Plan and Annual Actuarially Determined Contributions (ADC) for Fiscal Years 2021 and 2022. • Fiscal Year 2021 Rate Changes (various utilities such as electric): A brief overview of the rate changes reviewed by the Utilities Advisory Commission and Finance Committee and the final decision the City Council made in May 2020; each of these rate changes are included in the FY 2021 budget assumptions. This section references those changes for informational purposes only; a separate report recommending final rate changes will be considered concurrently by the City Council on June 22, 2020. • Recommended Ordinance: Councilmember Waiver of Compensation: This is the second reading of a municipal code change that would allow a councilmember to elect to waive their right to compensation. • Salary Schedules: A description of all compensation plans and the amendments in order to align with the recommended adjustments in the FY 2021 Budget. This section references those changes for informational purposes only; a separate report recommending final rate changes will be considered concurrently by the City Council on June 22, 2020. • Review of Referral Items from the Full City Council: This report details a list of areas that the City Council by majority vote, approved for additional staff work as a result of discussions from the FY 2021 budget hearings. These are areas identified for deeper analysis or alternative funding strategies to be explored over the course of the next fiscal year. • Additional Informational Items: Additional information regarding capital reappropriations and the Planning and Transportation Committee review of the CIP. • Attachments: Attached to this report are a number of documents as outlined and referenced throughout the recommendation language and the report. In addition, links to all the materials presented throughout the budget process to the City Council such as staff reports, At Places Memorandums, presentations made during the budget hearings, and transcripts from City Council Budget Hearings are included. Not included in this CMR is the approval of the GANN Limit. This is transmitted separately for City Council consideration on June 22, 2020. City of Palo Alto Page 5 Background Per the Municipal Code, the City Manager is charged with proposing a budget that provides a clear and complete financial plan for all City activities proposed for the coming budget cycle, or fiscal year. The Fiscal Year (FY) 2021 Proposed Operating and Capital Budgets were transmitted to the City Council on April 20, 2020. These documents represent the planned expenditures and revenues for FY 2021 for the various fund types that constitute the City’s Budget: General Fund, Capital Fund, Enterprise Funds, Internal Service Funds, Special Revenue Funds, and Debt Service Funds. The budget documents contain an overview section with descriptions of each of these fund types and detailed information of the revenues and expenses for each fund as well as for each individual department. Throughout the month of May, the City Council conducted budget hearings to review the Proposed Operating and Capital Budgets and revise projections for revenues and expenses to align with expected impacts resulting from efforts to contain COVID-19. After reviewing anticipated revenue impacts and directing that revenue estimates be lowered by $39 million in the General Fund as part of the May 4, 2020 City Council Meeting, the City Council reviewed actions to align expenses with those lower revenues and resultant service delivery impacts. The City Council went through the Proposed Operating Budget department by department and fund by fund; the City Council reviewed the Proposed Capital Budget in the respective Enterprise Funds as well as by project category in the General Capital Fund. These Budget Hearings were open to the public and provided a venue for the City Council to amend the proposed budget. Significant public comment was received as part of the Budget Hearings, via email to the City Council, and as a result of an online survey. The City Council also discussed utility rate changes and various municipal fee changes. During these discussions, changes were also brought forward by the staff, culminating in CMR 11376 which detailed all recommended amendments through May 26, 2020. Adoption of the City Manager’s Fiscal Year 2021 Proposed Operating and Capital Budgets and Fiscal Year 2021 Municipal Fee Schedule, including the amendments summarized in the FY 2021 Budget Wrap-up Memorandum, will represent the ratification of the amendments that were approved by vote through the Budget Hearings. These amendments include all changes to the Municipal Fee Schedule and the Table of Organization. City of Palo Alto Page 6 Discussion FISCAL YEAR 2021 BUDGET BALANCING AND FINAL RECOMMENDED CHANGES At the Budget Wrap-up hearing on Tuesday, May 26 the City Council acted on many of the items that had arisen through the earlier budget hearings leaving only 2 topics in the “short- term parking lot” for consideration on June 22, 2020 as part of budget adoption. The cumulative impacts of the actions taken by the City Council through May 26 with some revisions by staff due to the ongoing discussions with our labor unions are outlined in Table 1. The General Fund is shown on the left side of the table and All Funds (including Internal Service Funds) is seen on the right side of the table. These changes are detailed by fund by department on Attachment A Exhibit 2, changes to the FY 2021 Operating Budget and Attachment A, Exhibit 3 changes to the FY 2021 Capital Budget. Table 1: Changes from FY 2021 Proposed Budget released April 20, 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 81.31 $755,846 $818,869 1,033.85 106.32 Adjustments to Proposed Budget as released Revenue Adjustments City Council Requested Major Tax Revenue Realignment Scenario C (CC May 4, 2020)(38,794) (38,794) - - - Other Economically Sensitive Departmental Revenue (5,000) (5,000) - - - $197,715 $238,801 573.68 81.31 $712,052 $818,869 1,033.85 106.32 Adjustments by Service Area Neighborhood, Community & Library Services (299) (4,861) (16.10) (21.02) (299) (4,874) (16.10) (21.02) Public Safety 1,684 (7,257) (32.27) (2.28) 1,684 (7,271) (32.40) (2.28) Planning & Transportation (2,127) (3,267) (7.30) (1.44) (1,753) (3,279) (7.30) (1.44) Infrastructure & Environment - (571) (0.20) - (5,013) (4,159) (8.15) (0.48) Internal Services/Strategic Support - (1,397) (5.90) (0.96) (2,506) (3,775) (10.40) (0.96) Citywide Balancing Solutions (24,475) - - (2,019) (25,761) - - (44,536) (41,828) (61.77) (25.70) (9,906) (49,119) (74.35) (26.18) -18.4%-17.5%-10.8%-31.6%-1.3%-6.0%-7.2%-24.6% $196,973 $196,973 511.91 55.61 $702,146 $769,750 959.50 80.14 Net Surplus/(Deficit)$0 General Fund All Funds (w/ Internal Service Funds) SUBTOTAL CHANGES FROM FY 2021 PROPOSED BUDGET Citywide Revenue and Expenses (after May 26th CC Discussion) Table 1 (above) shows the cumulative impacts of the actions taken throughout the budget hearings. It incorporates the actions taken by the City Council as part of the budget wrap-up on May 26. Overall, before the City Council is a FY 2021 budget of $197 million in revenues and expenses in the General Fund, with staffing of 512 full time positions and the equivalent of 55.6 FTE in part- time staffing. All funds, unadjusted for transfers and internal service funds is a FY 2021 budget of $770 million, with staffing of 960 full time positions and the equivalent of 80.1 FTE in part- time staffing. These levels are significantly below the FY 2021 baseline budget, released on April 20, 2020 which reflected the City’s financial forecast prior to the current public heal emergency (COVID-19). During the most recent budget wrap-up hearing on May 26, the City Council addressed all remaining items in the short-term parking lot, which was extensively discussed as part of CMR City of Palo Alto Page 7 11376 apart from two items. A brief summary of the actions they took to address the items in the short-term parking lot follows below. Items that the City Council voted to revisit as part of the Budget Adoption hearing are detailed at the beginning of the list, and items that the City Council voted to incorporate into the Budget at wrap-up follow those items. Outstanding Items for City Council Review & Action Strategy to manage attrition in Police and Fire – The City Council voted to revisit funding to manage attrition in the public safety departments (Police and Fire) as part of the Budget Adoption on June 22. The Police and Fire budgets reflect the elimination of 21 sworn positions necessary to balance the budget (one of these position reductions is outlined in the FY 2021 Proposed Operating Budget released on April 20,2020, the remaining 20 are outlined in Attachment A, Exhibit 2 or Attachment A, Exhibit 5 summarizes all position changes in the Table of Organization). Of the 21 sworn positions, 7 positions are currently vacant and the balance of 16 positions are filled and would require the layoff of recently hired police officers and firefighters. Sworn personnel are required to be laid off in accordance with union rules, which means those with the least seniority will be laid off based on hire date. It typically takes over one year to train for police and fire sworn positions to be fully operational. As such, the City has invested a significant time and hundreds of thousands of dollars to hire, equip and train the sworn personnel who would be lost to layoffs. Police and Fire departments typically experience turnover from separations and retirements, which result in vacant positions throughout the year. If the typical attrition in Police and Fire could occur for an additional six-month period, the City would hope to avoid layoffs for these recently hired employees. Based on this six-month period, staff estimates that managing separations through attrition could cost between $500,000 and $1.5 million, depending on the timing of attrition in the six-month period. These costs are currently not included in the recommended balancing strategy and would require an action from the City Council to be added. Both the Fire Chiefs Association (FCA) and the International Association of Fire Fighters (IAFF) have reached, with a combination of a deferral of general wage increases as well as step freezes, agreement to provide sufficient funding of a six-month attrition ramp. This means that any separation of filled fire-fighter positions will be deferred until December 31, 2020 if staffing levels necessitate it. Therefore, with the approval of this mutual agreement, no further budgetary action is necessary to address a six-month attrition period for firefighters. At the time of the writing of this report, the police labor unions were still voting and therefore concessions savings to provide funding for an attrition ramp remains unknown. Funding for KZSU – The City Council voted to revisit funding options for KZSU broadcasts as part of the Budget Adoption hearing on June 22. This remains unfunded in this FY 2021 budget. City of Palo Alto Page 8 Items in the Parking Lot incorporated into Budget through motions made at wrap-up Revisit funding for the Transportation Management Association (TMA) – The City Council voted to lower the funding for the Transportation Management Association from $750,000 to $453,000 (a decrease of $197,000) in the University Avenue Parking Fund to align with the funding needs of the TMA in FY 2021 and reallocate this funding to support business during this public health emergency. Revisit funding for City Council minutes transcription ($35,000) – The City Council voted to restore funding of $35,000 for City Council minutes transcription. Revisit funding for cost of printing City Council materials ($35,000) - The City Council voted to restore funding of $35,000 for City Council printed meeting materials. Revisit funding for YCS Youth Connectedness Initiative ($50,000) - The City Council voted to restore an additional $25,000 to the YCS Youth Connectedness Initiative to reach the previous funding level of $50,000. General Fund The General Fund proposed budget reflects reductions of $41.8 million in expenses to offset projected revenue losses over the coming fiscal year. These actions are the culmination of the difficult work completed by the City Council during the month of May, when on May 4the City Council chose a conservative scenario for financial planning of the FY 2021 budget. Based on our most current data as reported to the City Council on June 16, as part of the 3rd Quarter Financial Report and Recommended FY 2020 budget actions due to COVID-19, it is expected that these revenues may be in line with experience in FY 2021. Additional details can be found here: CMR #11328 The current FY 2021 budget does not rely on use of General Fund reserves with the exception of specific restricted reserves such as the Development Center Fees. As discussed with the City Council, use of reserves in FY 2020, the current year, of $11.7 million are expected to bring the Budget Stabilization reserve to $33.0 million June 30, 2020. The reductions 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. The balancing solutions included in this FY 2021 budget seek to address funding needs across the organization. They also seek to balance the City’s liabilities and investments. 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. City of Palo Alto Page 9 This budget ensures that the City continues to proactively pay for both the current pension and Other Post-Employment Benefits (OPEB) liabilities (assuming lower discount rates of 6.2 percent for funding levels), continues capital investments into our most critical infrastructure projects, provides resources for the City to successfully adapt from ‘shelter in place’ to future service delivery models, and establishes funding to ensure those service delivery transitions. Recommended Additional Changes Limited changes are recommended from the proposed budget as reviewed by the City Council and tentatively approved on May 26, 2020. Of note, the May 26 budget recognized savings associated with compensation reductions for the Management and Professionals Group, an unrepresented bargaining unit with employees across the organization. It recognized a 15 percent compensation reduction, anticipated to generate $3.5 million in savings in the General Fund and approximately $5.4 million in all funds. While the City continues to work with its represented bargaining groups to proactively address and mitigate potential service delivery impacts and adverse personnel impacts, the City and Service Employee International Union (SEIU) its largest unit, were unable to reach agreement. Therefore, the practicality and ability to implement the proposed 15 percent reduction is no longer viable. This final budget recognizes a 10 percent compensation reduction in the management unit. In order to restore these costs, it is recommended that we reduce the funds set aside for ‘Implementation Costs Associated with Balancing Strategy’ from $2.08 million to $1.06 million. There is no impact as a result of this as staff works to reduce the number of layoffs and therefore corresponding transition costs. Budget Stabilization Reserve This FY 2021 budget does not recommend a draw from the Budget Stabilization Reserve as forecasted for June 30, 2020. It does reflect a change from the FY 2021 Baseline budget which initially reflected a contribution to the BSR of $2.7 million. Initially, the FY 2021 baseline budget reflected the difficult and diligent financial management that the City Council has demonstrated and reflected revenues exceeding expenses and the difference represented a contribution to the BSR. With the expected loss in revenues in FY 2021, this is no longer the case and Attachment A, Exhibit 2 reflects this change. Overall, as reported to the City Council on June 16, 2020, the BSR is expected to be reduced by $11.7 million to $33 million in FY 2020. This is below the City Council targeted range of 15 percent to 20 percent of General Fund budgeted expenses and is at approximately 14 percent in FY 2020. However, with no expected change from that $33 million figure as part of this FY 2021 budget, this BSR is 16.8 percent of the FY 2021 budgeted expenses. This is within the targeted range of 15 to 20 percent, although it does remain below the City Council goal of 18.5 percent by $3.5 million. City of Palo Alto Page 10 Internal Service Funds Various adjustments are recommended in internal services funds to reflect both service level adjustments as well as citywide adjustments in order to assist in the balancing of the General Fund. Proactive Funding of Long-Term Liabilities: 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 recommended actions in this balancing strategy realize savings in lower OPEB costs as a result of the most recent actuarial study while reducing the discount rate by 25 basis points. 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. Departmental Service reductions: Information Technology department reductions in Management staffing; reduce application maintenance, support and replacement services; and eliminate training. This will result in decreased response time for internal work orders and delays in projects support and management across the organization. Public Works department will defer vehicle replacements for one to two years. Special Revenue Funds Community Development Block Grant (CDBG) Alignment (CARES Act Funding) This action recognizes revenues associated with a grant received from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in the CDBG Fund, offset by a corresponding increase in expenses. This funding will be used for rent relief, food assistance, and COVID testing and equipment as outlined in the revised funding plan approved by the Finance Committee on May 5, 2020 (CMR 11148). Various Parking Funds As a result of the recommended changes in various parking programs, specifically the changes to the Residential Preferential Parking program (RPP), revenue and expense adjustments are recommended to align with the Staff Report 11322 and accompanying at-places memo, as approved by City Council on May 13, 2020. This action requires significant changes to the RPP program including a proposed transition to License Plate Reader (LPR) enforcement and virtual permitting, a policy change to no longer provide a first permit free to residents (with limited exceptions), as well as other program updates such as the department's work to fix the 'no re- parking' signage issue. These programmatic changes were recommended to allow the RPP to return the subsidy to the GF and remain solvent. Corresponding Municipal Fee Schedule adjustments are recommended to reflect the policy City of Palo Alto Page 11 change to no longer provide the first annual residential parking permit free, although the annual cost of such permits is not recommended to change in FY 2021. In the Downtown Parking Permit Fund, reduced funding to the Palo Alto Transportation Management Association (TMA) from the baseline FY 2021 proposed level of $750,000. This is consistent with City Council direction approved on May 26, 2020 and with the updated funding request from the TMA on May 21, 2020. This savings is reallocated to be used to support city- wide business recovery as a result of impacts from COVID-19. Capital Funds The City’s Capital Improvement Plan reflects a $300.1 million FY 2021 budget, and a $774.6 million plan over the five-year CIP (FY 2021- FY 2025). Of this, the General Capital Fund FY 2021 budget reflects expected expenses of $174.4 million and $298.6 million over the five-year CIP. As part of the budget hearing process, the City Manager and Director of Public Works reviewed all General Fund projects in the proposed CIP, and confirmed that with the reduced General Fund transfer, the remaining funding levels reflect investment in essential infrastructure. Based on this review, the revised proposed CIP provides a minimal while responsible investment in the City’s essential infrastructure with several specific objectives: - Reduce carryover funding to “keep up” spending on essential infrastructure rather than fall behind and require new funding sources or levels to “catch up” in upcoming years; - Position shovel-ready projects to take advantage of the favorable construction market pricing typical of a recession; - Minimize near-term funding of discretionary projects; and, - Ensure a steady flow of projects that minimizes peaks and valleys in project delivery staffing needs, as this would reduce efficiency and introduce bottlenecks in productivity. In total, the City Council tentatively approved reducing the transfer from the General Fund to the Capital Improvement Fund in Fiscal Year 2021 by $2.6 million. Of this amount, $1.6 million was allocated for the Section 115 Pension Trust (PARS) Fund, and $1.0 million to restore services for the Police and Community Services Departments, using a 60% and 40% allocation, respectively. Specific project adjustments can be found in Attachment A, Exhibit 3 for specific adjustments City of Palo Alto Page 12 Capital Reappropriations Because of the October 2014 change to the Municipal Code, City Council authorization is now required for reappropriation of funds for capital projects from one fiscal year to the next. The FY 2021 budget process continues this procedure with the FY 2021 Proposed Capital Budget including approximately $64.3 million in reappropriated funds for project expenditures across all funds. In the time since the FY 2021 Proposed Budget figures were developed (early spring of 2020), departments have re-reviewed current year estimates and the reappropriation amounts built into the proposed Capital Improvement Plan (CIP). Additional reappropriation adjustments are recommended as part of this wrap-up memorandum to update the FY 2021 Capital Budget with current, more refined estimated activity levels in Fiscal Year 2020. Cumulatively, this re-review of projects has resulted in staff's recommendation to increase the Fiscal Year 2021 Capital Budget by a net total of $23.7 million, from $288.7 million to $312.4 million, and are recommended. In total, reappropriations of an estimated $88.0 million are above those assumed in the FY 2020 Adopted Capital Budget of $71.4 million and are outlined for additional information in Attachment C. Adjustments, outlined by project in Attachment A, Exhibit 2, are combined with adjustments previously outlined to reprioritize project funding and timelines in the Capital Budget and the five-year CIP as a result of reductions in the transfer from the General Fund and lower overall Transient Occupancy Tax (TOT) revenues dedicated by Council for infrastructure improvements. These adjustments ensure that funds will available at the onset of Fiscal Year 2021 to continue infrastructure improvement work across the City and address critical “keep up” work while minimizing the increase to a “catch-up” backlog that would need to be addressed in future CIP planning. T TABLE OF ORGANIZATION There are significant staffing changes recommended in this budget and therefore impacts to the Table of Organization. An updated Table of Organization is included as Attachment A, Exhibit 5. This table does denote where positions are recommended to be frozen as well as ones that are recommended for elimination. Position freezes recommended in the FY 2021 Adopted Operating Budget have been de-funded in FY 2021 and are identified in the Table of Organization with “(Freeze)” following the job classification title. Job classifications impacted by freezes are summarized in two rows, one to reflect the total FTE authorized (less freezes) and one to reflect the total FTE freezes. These freezes are different than the City-wide hiring freeze in that these positions have been actively defunded in FY 2021. City of Palo Alto Page 13 MUNICIPAL FEE SCHEDULE On May 12, 2020, the City Council reviewed the FY 2021 Proposed Municipal Fee Schedule and tentatively approved it as outlined in City Manager’s Report #11190. In addition to that report, the City Council reviewed the impacts of various proposed changes in the delivery of services and most specifically, reviewed the plan for the reopening of the Junior Museum and Zoo (JMZ) as outlined in City Manager’s Report #11222, and further amended by the At Places memorandum released on May 12, 2020 which can be found here. As a result of the recommended changes in cost recovery of various Community Service programs and discussed as part of the City Council’s direction to explore funding through additional cost recovery and/or partial funding for various Community Services programs, a new fee and a few fee revisions are recommended. The changes outlined in Attachment A, Exhibit 6 are the summary of all changes recommended changes as reviewed by the City Council on May 26, 2020. OTHER POST-EMPLOYMENT BENEFITS (OPEB) ACTUARIAL VALUATION On May 4, 2020, the Finance Committee unanimously approved the June 30, 2019 actuarial valuation of Palo Alto’s Retiree Healthcare Plan, and recommend 6.25 percent discount rate to be used in the calculation of the Actuarial Determined Contribution (ADC), and approve full funding of the annual ADC for Fiscal Year 2021 and Fiscal Year 2022. Biannually an actuary firm which provides an actuarial report detailing the latest status of the City of Palo Alto’s Retiree Healthcare plans for employees and retirees. The analysis is used to determine the City’s retiree healthcare liability and the annual ADC to the trust. In addition, the report details funding status, results of assumptions such as discount rate (DR), healthcare plan premiums, and projected future healthcare costs. Staff has incorporated the results of this actuarial valuation into this FY 2021 Budget. The FY 2021 Budget includes $16.0 million for Retiree Healthcare based on the ADC. For full details, refer to City Manager Report #11284). FISCAL YEAR 2021 RATE CHANGES (VARIOUS UTILITIES SUCH AS ELECTRIC) Through the City Council’s discussions of FY 2021 rate adjustments in the Enterprise Funds, the City Council voted to approve the following rate adjustments. Final adoption of these are recommended as part of a separate report, also to be considered on June 22, 2020 by the City Council. • 0% rate change for Wastewater (recommended by Utilities Advisory Commission (UAC) and Finance Committee); • 0% rate change for Water (recommended by UAC and Finance Committee); • 2.5% CPI increase for Fiber (recommended by UAC and Finance Committee) • 0% rate change for Electric (recommended by Finance Committee) • 0% rate change for Refuse • 2.5% CPI increase for Stormwater (recommended by Finance Committee) • 2.0% rate increase for Gas (a reduction from the Finance Committee recommendation of 3%) Due to the COVID-19 pandemic, Council aimed to provide economic relief for residential and commercial customers by directing staff to keep rates flat without compromising the safety and City of Palo Alto Page 14 integrity of the utility systems. pandemic, Council aimed to provide economic relief for residential and commercial customers by directing staff to keep rates flat without compromising the safety and integrity of the utility systems. Council approved of the 2.5 percent CPI increase for Fiber to enable the City to expand the dark fiber network for new commercial and residential customers. Consistent with the 2017 Storm Water Management Fee ballot measure, Council also approved the 2.5 percent CPI increase for Stormwater to keep fund revenues consistent with inflationary cost increases and to provide sufficient funds for planned Stormwater Management capital and operating expenditures. Council approved a 2.0 percent increase for Gas to enable continuation of the cross-bore safety inspection program and PVC gas main replacement project. RECOMMENDED ORDINANCE: COUNCILMEMBER WAIVER OF COMPENSATION In response to the significant budgetary impacts and resource constraints that the City is currently facing, some Councilmembers have inquired if they could stop receiving their City salary during the crisis. Currently, the Municipal Code section 2.04.360 mandates a salary of $1,000 per month for Councilmembers. To address Councilmembers’ inquiries, staff recommend the amendment provided as Attachment E to this report, which would add language allowing Councilmembers to voluntarily waive part, or all, of their salary in line with general state law. Since there are no changes proposed to the amount of Councilmember salaries, this ordinance would take effect 30 days after the second reading and final adoption. SALARY SCHEDULES In addition to the approval of the Table of Organization, the changes in the Fiscal Year 2021 City Manager’s Budget result in amendments to the City’s employee group’s salary schedules and memorandum of agreements or contracts. These reflect changes to classification compensations or changes to add or amend current job classifications for these employee groups. Due to the complexity and the significant changes recommended as a result of cooperative work with our labor groups and management employees to achieve concessions, these actions are provided under separate cover also to be considered by the City Council on June 22, 2020. As discussed earlier, the changes in these contracts such as the management concessions are assumed and incorporated into this budget balancing strategy for adoption. REVIEW OF REFERRAL ITEMS FROM THE FULL CITY COUNCIL During the City Council Budget hearings, the City Council voted to place certain items in the “long-term parking lot.” The list below is reflective of the final referral items from the Budget Hearings that the City Council has directed staff to follow-up with additional work throughout FY 2021. It should be noted that these referrals will need to be prioritized in the context of diminished resources and adverse impacts on service delivery necessitated by the FY 2021 budgetary constraints. 1. Explore changing delivery of services from a dominant fire-oriented model to a dominant medical-oriented model City of Palo Alto Page 15 2. A report or item on the JMZ six months after it opens and what it would look like to eliminate the General Fund Subsidy through a fully cost recoverable program. ADDITIONAL INFORMATIONAL ITEMS INCLUDED A list of reappropriated funds from FY 2020 to FY 2021 for capital project is included as requested in Attachment C. This list reflects timing differences in projects where anticipated unspent funds are needed for project continuation. A majority of these reappropriations were included in the project amounts in the FY 2021 Proposed Capital Budget, and a few updated reappropriation amounts were included in CMR 11376. This list is a summary of the total $88.0 million in expenditure reappropriations as well as $25.8 million in revenue reappropriations. These reappropriations were included as part of the budget rebalancing strategy presented as part of the FY 2021 budget review process with Council. On June 10, 2020, the Planning and Transportation Committee (PTC) reviewed and determined, based on staff representation, that the new projects in the 2020-2025 Capital Improvement Plan are consistent with the City’s current Comprehensive Plan. Attachment D is the letter the PTC wished to transmit to the City Council regarding their review. The transcribed minutes from the meeting are not yet available, but the video recording of the can be found on the MidPen Media Center website: https://midpenmedia.org/planning-transportation-commission-63- 6102020/. Stakeholder Engagement The City Council reviewed these balancing actions to meet the directed FY 2021 revenue loss on May 11 through May 13. Based on these discussion and direction, staff returned to the City Council on May 26 to review a final proposed balancing strategy, with final adoption of the FY 2021 Budget scheduled on June 22,2020. The community was encouraged to engage with the budget process through the scheduled public meetings and an online priorities survey and email the City Council directly. Meeting materials and other budget information can be found on our dedicated webpage at www.cityofpaloalto.org/budget Environmental Review This is not a project under Section 21065 for purposes of the California Environmental Quality Act (CEQA). Attachments: • Attachment A - FY 2021 Budget Adoption Ordinance • Attachment A, Exhibit 1 - City Manager's Fiscal Year 2021 Proposed Operating & Capital Budgets & Municipal Fees • Attachment A, Exhibit 2 - Operating Adjustments • Attachment A, Exhibit 3 - Capital Adjustments by Project • Attachment A, Exhibit 4 - Central Adjustments in Various Funds • Attachment A, Exhibit 5 - FY 2021 Table of Organization • Attachment A, Exhibit 6 - Municipal Fee Changes • Attachment B - 6-30-19 OPEB Retiree Healthcare Plan City of Palo Alto Page 16 • Attachment C - Capital Reappropriations • Attachment D - PTC Capital Conformance Letter • Attachment E - Ordinance Amending Section 2.04.360 of the Palo Alto Municipal Code to Allow Council Members a Salary Waiver Option ATTACHMENT A  1 ORDINANCE NO. XXXX  ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING THE  BUDGET FOR FISCAL YEAR 2021  SECTION 1. The Council of the City of Palo Alto finds and determines as follows:  A. Pursuant to the provisions of Section 6(g) of Article IV of the Charter of the City of Palo  Alto and Chapter 2.28 of the Palo Alto Municipal Code, the City Manager has prepared and  submitted to the City Council, by letter of transmittal, a budget proposal for Fiscal Year 2021; and  B. Pursuant to the provisions of Section 12 of Article III of the Charter, the Council did, on  June 22, 2020, hold public hearings on the budget after publication of notice in accordance with  Section 2.28.070 of the Palo Alto Municipal Code; and  C. In accordance with the provisions of Chapter 8 of Division 1, of Title 7, commencing with  Section 66016 of the Government Code, as applicable, the Council did on June 22, 2020, hold a  public hearing on the proposed amendments to the Municipal Fee Schedule, after publication of  notice and after availability of the data supporting the amendments was made available to the  public at least 10 days prior to the hearing.  SECTION 2.  Pursuant to Chapter 2.28 of the Palo Alto Municipal Code, the following  documents, collectively referred to as “the budget” are hereby approved and adopted for Fiscal  Year 2021:  (a)  The budget document (Exhibit “1”) containing the proposed operating and capital  budgets submitted on April 20, 2020, by the City Manager for Fiscal Year 2021,  entitled “City of Palo Alto ‐ City Manager’s Fiscal Year 2021 Proposed Budget”  covering General Government Funds, Enterprise Funds, Special Revenue Funds,  and  Internal  Service  Funds,  a  copy  of  which  is  on  file  in  the  Department  of  Administrative Services, to which copy reference is hereby made concerning the  full particulars thereof, and by such reference is made a part hereof; and  (b)  The  Amendments  to  the  City  Manager’s  Fiscal  Year  2021  Proposed  Budget,  attached hereto as Exhibit “2”, Exhibit “3”, and Exhibit “4” and made a part hereof;  and  (c)  Changes and revised pages in the Table of Organization, as displayed on pages 339  through 356 in “Exhibit 1,” and amended in Exhibit “5” made a part hereof; and  NOT YET ADOPTED ATTACHMENT A  2 (d)  Fee changes of the Municipal Fee Schedule attached hereto as Exhibit “6”.    SECTION 3.  The sums set forth in the budget for the various departments of the City, as  herein amended, are hereby appropriated to the uses and purposes set forth therein.    SECTION 4.  All expenditures made on behalf of the City, directly or through any agency,  except those required by state law, shall be made in accordance with the authorization contained  in this ordinance and the budget as herein amended.    SECTION 5.  Appropriations for the Fiscal Year 2020 that are encumbered by approved  purchase orders and contracts for which goods or services have not been received or contract  completed, and/or for which all payments have not been made, by the last day of the Fiscal Year  2020 shall be carried forward and added to the fund or department appropriations for Fiscal Year  2021.    SECTION  6.  The  City  Manager  is  authorized  and  directed  to  make changes  in  the  department  and  fund  totals  and  summary  pages  of  the  budget  necessary  to  reflect  the  amendments enumerated and aggregated in the budget as shown in Exhibit “2”, Exhibit “3”, and  Exhibit “4” and the Fiscal Year 2020 appropriations carried forward as provided in Section 5.    SECTION 7.  As specified in Section 2.04.320 of the Palo Alto Municipal Code, a majority  vote of the City Council is required to adopt this ordinance.     SECTION 8.   As specified in Section 2.28.140(b) of the Palo Alto Municipal Code, the  Council of the City of Palo Alto hereby delegates the authority to invest the City’s funds to the  Director of Administrative Services, as Treasurer, in accordance with the City’s Investment Policy  for Fiscal Year 2021.    SECTION 9.  The Council of the City of Palo Alto adopts the changes to the Municipal Fee  Schedule as set forth in Exhibit “6”.  The amount of the new or increased fees and charges is no  more than necessary to cover the reasonable costs of the governmental activity, and the manner  in which those costs are allocated to a payer bears a fair and reasonable relationship to the  payer’s burden on, or benefits received from, the governmental activity.  All new and increased  fees shall go into effect immediately; provided that pursuant to Government Code Section 66017,  all Planning & Community Environment Department fees relating to a “development project” as  defined in Government Code Section 66000 shall become effective sixty (60) days from the date  of adoption.    SECTION 10.  Fees in the Municipal Fee Schedule are for government services provided  directly to the payor that are not provided to those not charged. The amount of this fee does not  ATTACHMENT A  3 exceed the reasonable costs to the City of providing the services. Consequently, pursuant to Art.  XIII C, Section 1(e)(2), such fees are not a tax.    SECTION 11.  As provided in Section 2.04.330 of the Palo Alto Municipal Code, this  ordinance shall become effective upon adoption.    SECTION 12.  The Council of the City of Palo Alto hereby finds that this is not a project  under  the  California  Environmental  Quality  Act  and,  therefore, no  environmental  impact  assessment is necessary.    INTRODUCED AND PASSED:  Enter Date Here    AYES:     NOES:    ABSENT:    ABSTENTIONS:    NOT PARTICIPATING:      ATTEST:         _________________________      ___________________________       City Clerk      Mayor      APPROVED AS TO FORM:    APPROVED:        City Attorney        City Manager        Director of Administrative Services      Fiscal Year 2021 City Manager’s Proposed Operating & Capital Budgets and Municipal Fees These documents were originally distributed on April 20, 2020. Printed copies are available upon request for $29 per book (FY 2020 fee). These documents may be viewed at any City of Palo Alto Library or the City’s website: www.cityofpaloalto.org/budget Changes to the Municipal Fee Schedule were distributed in Finance Committee Packet on May 13, 2020. The City Manager’s Staff Report (#11190) can be viewed on the City’s website: www.cityofpaloalto.org/civicax/filebank/documents/76562 − At places memorandum: (Residential Parking Permit Municipal Fees) www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=86391.49&BlobI D=76681 In addition, various at places memorandum and presentations were presented throughout the Finance Committee Hearings in May 2020 to provide additional information. These documents can be found on the City’s budget website under “Budget Hearing Materials”: www.cityofpaloalto.org/budget ATTACHMENT A, EXHIBIT 1 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Administrative Services City's Annual Performance Report Suspension This action reduces staffing recently transferred from the City Auditor's Office to the Office of Management and Budget. This will require that the production of City's annual Performance Report be suspended. 1.0 FTE Senior Performance Auditor will be frozen. -$ Salaries & Benefits (169,343)$ Administrative Services Purchasing Staff Reorganization and Service Reduction This action reduces resources in the procurement division by reducing 0.5 FTE Administrative Associate and 0.4 FTE Contract Administrator. 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. -$ Salaries & Benefits (185,582)$ 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. 2.0 FTE Accounting Specialist will be eliminated across all funds as a result of this action. -$ Salaries & Benefits (147,786)$ Attorney Legal Services Staffing Reduction This action reduces 0.50 FTE Legal Fellow 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. -$ Salaries & Benefits (81,171)$ Attorney Travel, Training, and Supply Expense Reductions This action reduces the department's travel, training, and office supply budget from $89,000. This will reduce the department's capacity to maintain best practices, training, and pursue professional development opportunities, limit flexibility to take on new administrative projects and duties, and reduce resources available for office work. -$ General Expense; Supplies & Materials (47,342)$ Auditor Audit Services 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. -$ Salaries & Benefits (165,000)$ Clerk Travel, Training, Supply and Event Expense Reductions This action reduces the department's travel, training, office supply, and special event budget from $103,000. This will reduce the department's capacity to attend training and maintain best practices and professional development opportunities, limit flexibility to take on new administrative projects and duties, and eliminate all board and commission special events. -$ General Expense; Supplies & Materials (10,000)$ Revenues Expenses Attachment A, Exhibit 2 page 1 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses Clerk Contract Services Reduction This action reduces the department's contracts budget from $254,350. Contracts being reduced include those for advertising board and commission recruitments, public noticing, radio broadcasting of public meetings, and administrative hearing officers. -$ Contract Services (55,385)$ Council Travel, Training, Supply and Event Expense Reductions This action reduces the department's travel, training, office supply, and special event budget from $55,000. This will reduce the City Council's capacity to travel for City business and reduce the number of special events that the Council can host. -$ General Expense; Supplies & Materials (48,955)$ City Manager's Office Executive Administration Staffing Reduction This action reduces 1.0 FTE Assistant to the City Manager 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. -$ Salaries & Benefits (218,750)$ City Manager's Office Travel, Training, and Supply Expense Reductions This action reduces the department's travel, training, and office supply budget from $98,000. This will reduce the department's capacity to travel for city business such as regulatory and legislative advocacy and interagency coordination, limit flexibility to take on new administrative projects and duties, and reduce resources available for office work. -$ General Expense; Supplies & Materials (32,000)$ Community Services Administrative Staffing Reduction This action reduces 1.0 Administrative Associate III, 1.0 Assistant Director of Community Services, 1.0 Recreation Superintendent, and 0.48 FTE in part-time 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. -$ Salaries & Benefits (585,748)$ Community Services Junior Museum and Zoo Operating Plan This action adjusts budgeted revenue and expenses for the new Junior Museum and Zoo (JMZ). Ticket prices are recommended to increase from $10 to $18, and membership rates are recommended to increase from a range of $110-$245 to $150-$430. These actions are consistent with Staff Reports 11222 and 11322 and accompanying at-places memo, as approved by City Council on May 12 and 13, 2020. Increased ticket and membership pricing results in increased annual revenue, but in FY 2021 revenue and expenses are also decreased based on the JMZ opening being delayed from October 2020 to March 2021. Expenses such as hiring new JMZ staff are pro-rated accordingly. With the increased ticket and membership fees, in a full year of operations the JMZ would be budgeted at 85% cost recovery. Corresponding adjustments in the Municipal Fee schedule are recommended to reflect these changes. Charges for Services (46,000)$ Salaries & Benefits (224,991)$ Attachment A, Exhibit 2 page 2 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses Community Services Theater Programming and Support Reduction This action reduces programming at the Children's Theatre and reduces support for community theater productions. This action also reduces 1.0 Producer Arts/Science Program and 5.09 FTE of part-time staff resources. This reduces programming at the Palo Alto Children's Theatre (PACT) by limiting to two core productions and several smaller productions, and maintaining smaller groups for classes and camps to allow for social distancing. This action also recognizes reduced revenue for productions to reflect reduced audience sizes necessary for social distancing. Children's Theatre productions serve roughly 100 participants and bring in over 50,000 audience members annually. 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. Charges for Services; Other Revenue (283,643)$ Various (710,827)$ Community Services Teen Services Reduction This action reduces some teen programs and services that are likely infeasible due to continued social distancing requirements. Impacted programs include some summer camps and a temporary closure of The Drop (teen center at Mitchell Park) through December 2020. This action also recognizes additional revenue from new donations from the Palo Alto Parks & Recreation Foundation and new membership and participation fees for teen programs. This action reduces 1.0 Program Assistant I and 1.44 FTE of part-time staff resources. Corresponding adjustments in the Municipal Fee schedule are recommended. Charges for Services; Other Revenue (52,000)$ Contract Services; Salaries & Benefits (201,590)$ Community Services Art Center Programming Reduction This action reduces programming at the Palo Alto Art Center such as the scope and frequency of exhibitions, visual arts programming, and educational outreach, while retaining studio programs and classes for youth and adults. This action also recognizes the loss of related program revenue partially offset by additional donations from the Palo Alto Art Center Foundation and implementation of fees to several programs/services to improve cost recovery. 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 includes a reduction of 0.35 Junior Museum and Zoo Educator, 0.75 Producer Arts/Science Program, 1.0 Program Assistant, and 2.16 FTE of part-time staff resources. Corresponding adjustments in the Municipal Fee schedule are recommended. Charges for Services; Other Revenue (4,623)$ Facilities & Equipment; Contract Services; Salaries & Benefits (452,084)$ Attachment A, Exhibit 2 page 3 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses Community Services Community Center Reductions This action reduces operating hours by approximately one to two days per week (schedule TBD) 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 reduces 2.0 Program Assistant I and 1.27 of part-time FTE staff resources. -$ Salaries & Benefits (282,694)$ 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 approximately 25%. This will moderately reduce aesthetic maintenance such as clearing of weeds, turf mowing, and playground washing, while still preserving and prioritizing safety-focused maintenance. -$ Contract Services (274,844)$ Community Services Community Program and Event Reductions This action reduces 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 $1,000 to dozens of community members annually for events that support community connections, such as block parties. Staff assigned to the management of these programs will be reassigned to other critical work in the department. Charges for Services (13,542)$ Contract Services; Salaries & Benefits; Supplies & Materials (154,404)$ Community Services Open Space and Recreation Reductions This action reduces ranger coverage in Palo Alto Open Space Preserves and reduces public operating hours of the Lucy Evans Baylands Nature Interpretive Center by 50% (schedule TBD). This includes a reduction of 1.0 Community Services Manager and 0.17 FTE of part-time staff resources. The Interpretive Center is currently open four days per week, houses an array of science and nature exhibits, and is 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. -$ Contract Services; General Expenses; Salaries & Benefits (243,905)$ Community Services Human Services Funding Adjustments This action eliminates the funding provided to the Santa Clara County Reentry Resource Center ($125,000) and increases one-time funding provided to Youth Community Services' Youth Connectedness Initiative to $50,000. Human services funding remains available through the Human Services Resource Allocation Process (HSRAP) which is maintained at the funding level detailed in the FY 2021 Operating Budget. -$ Contract Services; General Expenses (75,000)$ Attachment A, Exhibit 2 page 4 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses 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 $913, respectively. If participation remains steady, this action will generate revenue close to cost recovery for City expenses for these programs. Corresponding adjustments in the Municipal Fee Schedule are not recommended as both new values fall within FY 2020 adopted ranges and will remain consistent with levels in the FY 2021 Proposed Municipal Fee Schedule. Charges for Services 100,520$ -$ 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. This action reduces 2.00 FTE Fire Inspectors in the General Fund, 0.40 FTE in the Fire Department with a corresponding reduction in the Planning and Development Services Department. -$ Salaries & Benefits (93,297)$ 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. Charges for Services 1,855,000$ -$ 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. This action includes reducing 5.0 Fire Fighter EMT positions. 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. -$ Salaries & Benefits; Contract Services (831,555)$ 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. This action reduces 1.0 Administrative Associate II, 1.0 Training Captain, and 0.2 FTE Deputy Director Technical Services that is shared with the Police Department. -$ Salaries & Benefits (412,030)$ Human Resources Human Resources Services Staffing Reductions This action reduces the equivalent of 1.0 FTE staff resources from the Human Resources Department. This will result in reduced administrative and analytical support for assigned programs and functions in the recruitment, employee relations and training, and information systems divisions. -$ Salaries & Benefits (236,001)$ Attachment A, Exhibit 2 page 5 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses Library Administrative and Library Staffing 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 limit the Library's ability to manage special projects. This action reduces 1.0 Administrative Associate III, 1.0 Assistant Director of Library Services, 1.0 Library Specialist, and 4.14 FTE of part- time staff resources. -$ Salaries & Benefits (718,410)$ Library Reduced Library Hours and Services This action reduces operating hours and/or days at all Library branches. Neighborhood Libraries (Children's, Downtown and College Terrace) will be open 3 days per week and full service libraries (Mitchell Park and Rinconada) will be open 6 days per week. Evening hours will also be eliminated at Rinconada Library, which will close at 6pm every day as opposed to remaining open until 9pm Monday - Thursday. Children's Library will also 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 of 1.0 Library Associate, 2.0 Senior Librarian and 6.27 FTE of part-time staff resources. -$ Salaries & Benefits (694,616)$ Library Travel, Training, and Materials Expense Reductions This action reduces the department's travel and training budget and contracts and reduces the department's new material (books) acquisition budget 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. -$ Contract Services; General Expenses; Supplies & Materials (241,500)$ Office of Emergency Services Emergency Preparedness Staffing Reduction This action reduces 1.0 Program Assistant II in the 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. -$ Salaries & Benefits (98,204)$ Attachment A, Exhibit 2 page 6 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses 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 $380,000; maintaining fiber and monitoring services, and reducing maintenance to essential needs. -$ Contract Services (60,000)$ Office of Transportation Parking Services Staffing Reduction This action reduces 0.48 FTE in part-time 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. -$ Salaries & Benefits (29,678)$ 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 connect the University Avenue/Downtown to South Palo Alto at Charleston Road and provide 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. -$ Contract Services (538,333)$ Planning and Development Services Administration and Program Assistance Staffing Reduction This action reduces 1.0 Program Assistant I, 1.0 Senior Planner, a 0.48 FTE of part-time staffing resources, and $180,000 in consultant services in the administrative divisions of Planning and Development Services. Staff's ability to provide administrative, project management, and customer support will be reduced and responses to public record requests delayed. Reductions in other programs and strategic planning are anticipated as workloads are assumed by existing staff. -$ Salaries & Benefits; Contract Services (450,691)$ Planning and Development Services Current Planning and Development Services Front Counter Reduction This action reduces 1.0 Principal Planner, 1.0 Building/Planning Technician, and $436,000 in contract services that process applications (including over the counter permit approval), provide customer service, and schedule projects before the Planning and Transportation Committee (PTC), Architectural Review Board (ARB), and Historic Resources Board (HRB). Significant delays in application processing and customer service response times are expected. Modification to local zoning regulations may be required to streamline application review, reducing the amount of time staff spends on each project and with public engagement. A corresponding reduction is recommended for associated fee revenue. Charges for Services; Other Revenue (486,607)$ Salaries & Benefits; Contract Services (736,897)$ Planning and Development Services Code Enforcement Reduction This action reduces 2.0 Code Enforcement Officer positions, 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. -$ Salaries & Benefits (264,546)$ Attachment A, Exhibit 2 page 7 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses Planning and Development Services Building Inspection and Plan Review Reorganization This action reduces 1.0 Planning Manager and consultant inspection services by 50 percent, and adds 2.0 Building Inspector Specialists (1.0 for a one-year term). This will result in longer lead times for inspections, delayed 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. Charges for Services; Permits (1,335,306)$ Salaries & Benefits; Contract Services (401,295)$ Planning and Development Services Fire Inspection and Plan Review Reduction This action reduces 2.0 Fire Inspector positions (0.40 allocated to the Fire Department), 0.48 FTE part-time staffing resources, and consultant services by $78,000 in the Fire Prevention Bureau , which will delay fire inspections, increase wait times and impact customer service overall. A corresponding reduction is recommended for associated fee revenue. Charges for Services; Permits (529,424)$ Salaries & Benefits; Contract Services (531,561)$ Planning and Development Services Green Building Program Reduction 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. Charges for Services; Permits (68,985)$ Contract Services (105,548)$ Planning and Development Services Public Works Development Services Alignment This action reduces $74,000 in consultant services to process applications and reallocates staff (equivalent to 0.70 FTE) from the Public Works division to various funds citywide. This reallocation of staff is recommended to better align with workloads anticipated in FY 2021. A corresponding reduction is recommended for associated fee revenue. Permits (207,162)$ Salaries & Benefits; Contract Services (208,853)$ Planning and Development Services Development Services Reserve Fund (DSRF) This action reduces the DSRF from $500,000 to $0. 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). At FY 2020 year-end close, $595,000 of the $1.1M reserve was recommended to offset losses in FY 2020 (CMR 11328), leaving a balance of $500,000. The actions in this report will fully exhaust this remaining balance. 500,000$ Reserves Police Reduction in Police Relations This action reduces 1.0 Communications Manager 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. -$ Salaries & Benefits (196,465)$ Police Reallocate Position from Police to City Manager's Office This action reallocates 1.0 Police Lieutenant 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. -$ Salaries & Benefits (296,190)$ Attachment A, Exhibit 2 page 8 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses Police Patrol Operations This action reduces 6.0 Police Officer positions, 2.0 Community Service Officers (0.13 allocated to Residential Parking Permit Fund), 1.0 Administrative Associate II position, reduces overtime expense by $500,000, and reduces contract services by $57,000 in Police patrol operations. Patrol’s ability to positively impact crime rates, address traffic safety issues, and meet key performance measures for proposed response times to urgent and emergency calls for service will be reduced. Urgent and emergency calls will remain the priority for timely police response to ensure safety during potentially life threatening or higher danger crimes in progress. Patrols response to non-emergency calls for service, directed patrol checks, generalized traffic enforcement activities, and special community engagement events will be eliminated or significantly reduced. Other sworn police personnel will be re- assigned to backfill patrol vacancies as they arise to cover staffing shortages. -$ Salary & Benefits; Overtime; Contract Services (1,822,497)$ Police Technical Services Support This action reduces 1.0 Deputy Director and 1.0 Communications Technician (0.20 allocated to Fire Department) 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. -$ Salaries & Benefits (391,139)$ Police Dispatch Services This action reduces 4.0 Public Safety Dispatcher positions, 1.0 Communications Manager, 0.49 FTE in part-time staffing (five positions), and $500,0000 in overtime expenses for Police dispatch operations. This is anticipated to reduce services to 80% of their current levels. This will result in potential impacts to the span of control, longer answer times for 911, and potential outsourcing of non-emergency calls. Time constraints will reduce the ability to provide Emergency Medical Dispatch (EMD) instructions and notifications to specialty teams. Extended answer times for administrative, Utility, and Public Works customers are anticipated and after hours callouts will be limited to emergencies. A corresponding reduction to revenue is recommended for dispatch services provided to Stanford. Charges for Services (131,000)$ Salary & Benefits; Overtime (1,323,353)$ Police Information Management and Records This action reduces 0.29 FTE in part-time staffing resources in the information and records management division related to reporting to other agencies. It is anticipated that all other services will remain intact -$ Salaries & Benefits (24,129)$ Police Reduce Police Investigations This action reduces 2.0 Police Officer positions and 0.08 FTE part-time staffing in the detective division. Staff's ability to follow-up on criminal investigations, conduct surveillance and undercover crime suppression operations, participate in region-wide investigative meetings, and collaborate with other local police agencies will be suspended. Little to no impact is anticipated to the property and evidence unit -$ Salaries & Benefits (345,649)$ Attachment A, Exhibit 2 page 9 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses Police Reduce Police Reserve Program This action reduces 0.72 FTE of part-time staffing resources (six positions) and suspends the Police reserve program provided at special events throughout the City. -$ Salaries & Benefits (75,449)$ Police Suspend Traffic Program This action reduces 3.0 Police Officer positions and suspends the specialized traffic program. This will result in a loss of personnel assigned full-time to targeted enforcement of traffic laws, which may result in higher instances of traffic collisions, increased dangerous driving behavior and a reduced police presence in residential neighborhoods. -$ Salaries & Benefits (539,134)$ 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. -$ Contract Services; Supplies & Materials (60,000)$ Police Recruitment This action reduces 1.0 Police Lieutenant position, 0.22 FTE in part-time staffing (two positions), and $103,000 in other expenses in the recruitment division. This will delay the current 18-month recruiting and training cycle for a new sworn employee. -$ Salaries & Benefits; Various Non- Salary (444,039)$ Police Reduce Training This action reduces training from the current 78 total designated hours down to only the mandatory 32 hours of training. Firearm training and qualification will be reduced by 50 percent. -$ Various Non- Salary (103,901)$ Police Animal Control Program This action reduces 1.0 Animal Control Officer, 0.48 FTE in part-time staffing resources, and $5,000 in supplies in the Animal Care division. As a result, some overnight services may be reduced. Collection of fees and fines related to enforcement will be impacted. A corresponding reduction in revenue is recommended for these reductions. Charges for Services (40,372)$ Salaries & Benefits; Supplies & Materials (139,863)$ Public Works San Francisquito Creek Joint Powers Authority (SFJPA) Membership This action includes a one-time increase of $86,000 to cover consultant fees for an environmental assessment on an upstream project, and will increase expenses ongoing for the City of Palo Alto's membership fee ($27,750) with the San Francisquito Creek Joint Powers Authority (SFJPA) which allows the City to participate in the decision-making process for a series of projects to provide flood protection for local residents. The SFJPA is an independent regional government agency founded by three cities and two countywide agencies divided by San Francisquito Creek and united by its watershed and floodplain. This joint agency leads projects along the creek and S.F. Bay to reduce flood threat, enhance ecosystems and recreational opportunities, and connect communities. -$ Contract Services 113,750$ Attachment A, Exhibit 2 page 10 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses 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. -$ General Expenses (654,399)$ Public Works Buildings & Facilities Reductions This action reduces 1.0 Project Manager across all funds (0.65 FTE in the General Fund) 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. -$ Salaries & Benefits (110,642)$ 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. -$ Salaries & Benefits 80,109$ 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 $2.5 million, however this is subject to conversations and final agreement between the two parties. -$ General Expenses (2,500,000)$ Non- Departmental City Council Contingency This action eliminates the City Council Contingency for one year. -$ General Expenses (125,000)$ Non- Departmental Innovation & Special Event Contingency This action eliminates the Innovation & Special Event Contingency for one year. -$ General Expenses (50,000)$ Non- Departmental Human Resources Contingency This action eliminates the Human Resources Contingency for one year. -$ General Expenses (50,000)$ Attachment A, Exhibit 2 page 11 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses Non- Departmental Residential Parking Permit (RPP) Administrative Program Revisions This action eliminates the FY 2021 General Fund operating subsidy transfer of $185,000 into the RPP Fund consistent with Staff Report 11322 as approved by City Council on May 13, 2020. This action requires significant changes to the RPP program including transition to License Plate Reader (LPR) enforcement and virtual permitting, a policy change to no longer provide a first permit free to residents (with limited exceptions), and prioritizing the department's work to fix the 'no re- parking' signage issue. These programmatic changes allow the RPP program to return the subsidy to the General Fund and remain solvent. Corresponding revenue and expense adjustments in the RPP Fund are detailed in the Special Revenue Fund section of this document. Corresponding Municipal Fee Schedule adjustments are recommended to reflect the policy change to no longer provide the first annual residential parking permit free; however, the annual cost of the permits will remain consistent with amounts in the FY 2021 Proposed Municipal Fee Schedule. -$ Operating Transfers Out (185,000)$ 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. Various General Fund Tax Revenue (38,793,700)$ -$ 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. Various General Fund Revenue (5,000,000)$ -$ Attachment A, Exhibit 2 page 12 Non- Departmental Reduce General Fund Base Transfer To Capital This action reduces the General Fund Base transfer to Capital by approximately 50% and includes the additional $2.6 M in reductions in the General Fund Transfer to Capital directed by City Council during the Budget Hearings, as well as $0.7M for sidewalks program. $- Transfer to Infrastructure $ (10,650,000) Non- Departmental Reduce TOT Transfer to Capital Consistent with City Council actions on May 4, 2020, Transient Occupancy Tax (TOT) Transfer to Capital will be reduced with the reduced TOT revenue estimate. $- Transfer to Infrastructure (8,455,000)$ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses Non- Departmental Reserve: COVID-19 Recovery This action establishes a reserve for future COVID-19 impacts that may need to be addressed in FY 2021. Staff will return to Council by the second quarter of FY 2021 to discuss options for using this funding as directed by the City Council on May 26, 2020. -$ General Expenses 744,000$ Non- Departmental COVID-19 Recovery: Contact Tracing This action recognizes $450,000 in one-time funding to support efforts in tracing the contacts of those who have been diagnosed with COVID- 19 as requested by the Santa Clara County. The County has requested staffing assistance for these efforts as we move into the different phases of recovery. This estimate for funding equates to 50% of the most conservative cost estimate. -$ Contract Services 450,000$ Non- Departmental COVID-19 Recovery: Business and Communications Support This action appropriates funding for three to six months of business and communications support to help navigate the expected near-term impacts of the COVID-19 Public Health Emergency. -$ Contract Services 150,000$ Non- Departmental COVID-19 Recovery: Workplace Restoration This action appropriates funding for restoring the workplace to ensure it is a safe environment for customers and employees. These funds will ensure that the City can align with the directives of the County Health Order, including social distancing, to address the COVID-19 public health emergency. -$ Contract Services 350,000$ Non- Departmental Litigation Reserve This action establishes a litigation reserve of $1.0 million in keeping with the City's practice of proactively setting aside funds for dispute resolution. -$ Contract Services 1,000,000$ Non- Departmental Implementation Costs Associated with Balancing Strategy This action appropriates $1.1 million in FY 2021 since some actions cannot be fully implemented immediately, especially it is expected that employee separations will continue into the first quarter of FY 2021. -$ General Expenses 1,055,000$ Attachment A, Exhibit 2 page 13 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Department Category Adjustment Category Adjustment GENERAL FUND (102 & 103) Revenues Expenses Various Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (2,257,948)$ Various Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (527,112)$ Various Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (417,917)$ Various General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (68,405)$ Various Information Technology Adjustment This action reflects the combined impact from adjustments to allocated charges for information technology as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (1,319,936)$ Various Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (88,161)$ Various Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (253,718)$ Various Vehicle Maintenance & Replacement (VRM) Fund Reductions This action reflects the combined impact from adjustments to allocated charges for vehicle replacements as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (1,275,491)$ 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. -$ Fund Balance/ Reserves (2,708,750)$ GENERAL FUND (102 & 103) SUBTOTAL (44,536,844)$ (44,536,844)$ Attachment A, Exhibit 2 page 14 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment SPECIAL REVENUE FUNDS CALIFORNIA AVENUE FUND (237) Office of Transportation Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (3,782)$ Office of Transportation Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (344)$ Office of Transportation Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (417)$ Office of Transportation General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (135)$ Office of Transportation Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (3,042)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 7,721$ CALIFORNIA AVENUE FUND (237) SUBTOTAL -$ -$ COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) Planning and Development Services Community Development Block Grant (CDBG) This action adjusts CDBG allocations to align with the revised funding plan approved by the Finance Committee at the May 5, 2020 hearing, including a $294,909 grant received from the Coronavirus Aid, Relief, and Economic Security act (CARES) (CMR 11148). An additional technical adjustment of $757 is recommended to align expenditures that were inadvertently misstated in the Proposed Budget. Federal Revenues 294,909$ General Expense 294,152$ Planning and Development Services Program Administration This is a technical correction to adjust temporary salaries to align with grant approved funding levels for program administration. -$ Salaries & Benefits 388$ Planning and Development Services Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (283)$ Planning and Development Services General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (105)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/Reserv es 757$ COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) SUBTOTAL 294,909$ 294,909$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses Attachment A, Exhibit 2 page 15 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses GAS TAX FUND (231) Public Works Street Improvement Fund Adjustment This action reduces the revenue estimate for state gas tax by $220,000, from $3.06M to $2.84M, based on updated estimates released by the State Department of Finance in May. State Revenues (219,606)$ -$ Public Works Transfer to Capital Improvement Fund This action reduces the transfer to the Capital Improvement Fund to align with lower than anticipated state gas tax revenues and ensure the fund's solvency. In total, the transfer from the Gas Tax Fund to the Capital Improvement Fund will be reduced by $120,000, from $2.7M to $2.6M, including $10,000 to Safe Routes to School (from $100,000 to $90,000), and $110,000 to Street Maintenance (from $1.3M to $1.2M). -$ Transfers-out (120,000)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves (99,606)$ GAS TAX FUND (231) SUBTOTAL (219,606)$ (219,606)$ HOUSING IN-LIEU/RESIDENTIAL FUND (233) Planning and Development Services Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (72)$ Planning and Development Services General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (27)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 99$ HOUSING IN-LIEU/RESIDENTIAL FUND (233) SUBTOTAL -$ -$ HOUSING IN-LIEU/COMMERCIAL FUND (234) Planning and Development Services Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (72)$ Planning and Development Services General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (27)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 99$ HOUSING IN-LIEU/COMMERCIAL FUND (234) SUBTOTAL -$ -$ Attachment A, Exhibit 2 page 16 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses PUBLIC ART FUND (207) Community Services Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (12,774)$ Community Services Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (417)$ Community Services General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (88)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 13,280$ PUBLIC ART FUND (207) SUBTOTAL -$ -$ Attachment A, Exhibit 2 page 17 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses RESIDENTIAL PARKING PERMIT (RPP) FUND (239) 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. 2.0 FTE Accounting Specialist will be eliminated across all funds as a result of this action. -$ Salaries & Benefits (52,752)$ Office of Transportation RPP Parking Administrative Program Revisions This action eliminates the FY 2021 General Fund (GF) operating subsidy transfer of $185,000 into the RPP Fund and executes other revenue and expense adjustments consistent with Staff Report 11322 and accompanying at-places memo, as approved by City Council on May 13, 2020. This action requires significant changes to the RPP program including a proposed transition to License Plate Reader (LPR) enforcement and virtual permitting, a policy change to no longer provide a first permit free to residents (with limited exceptions), as well as other program updates such as the department's work to fix the 'no re-parking' signage issue. These programmatic changes were recommended to allow the RPP to return the subsidy to the GF and remain solvent. These changes require corresponding revenue and expense adjustments, such as lower contract services funding and increased permit sales revenue. As start-up costs of some changes such as implementation of LPR are not known at this time, OOT has input estimates and will return to Council to refine expense and savings estimates at Midyear FY 2021, if necessary. Corresponding Municipal Fee Schedule adjustments are recommended to reflect the policy change to no longer provide the first annual residential parking permit free, although the annual cost of such permits is not recommended to change in FY 2021. Permits and Licenses; Other Revenue 79,000$ Contract Services (256,800)$ Office of Transportation Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (11,662)$ Office of Transportation Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (866)$ Office of Transportation Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (722)$ Office of Transportation General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (268)$ Attachment A, Exhibit 2 page 18 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses Office of Transportation Vehicle Maintenance & Replacement (VRM) Fund Reductions This action reflects the combined impact from adjustments to allocated charges for vehicle replacements as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (1,307)$ Office of Transportation Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (297)$ Police Patrol Operations This action reduces 2.0 Community Service Officers (equivalent of 0.13 FTE) in the RPP Fund as part of citywide reductions in Patrol Operations. In total, 8.0 Community Services Officers (equivalent of 0.50 FTE) collectively provide enforcement services in the College Terrace district. The positions recommended for reduction are currently vacant and services maintained by existing officers; therefore, staff does not anticipate impacts to enforcement in FY 2021. -$ Salaries & Benefits (14,031)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 417,706$ RESIDENTIAL PARKING PERMIT (RPP) FUND (239) SUBTOTAL 79,000$ 79,000$ Attachment A, Exhibit 2 page 19 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses UNIVERSITY AVENUE FUND (236) Office of Transportation Transportation Management Association Funding Reduction This action reduces funding to the Palo Alto Transportation Management Association (TMA) from the baseline FY 2021 proposed level of $750,000. This is consistent with City Council direction approved on May 26, 2020 and with the updated funding request from the TMA on May 21, 2020. -$ (297,000)$ Office of Transportation COVID-19 Business Support This action reallocates funding previously budgeted for the TMA to be used to support city-wide business recovery as a result of impacts from COVID-19. -$ 297,000$ Office of Transportation Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (7,608)$ Office of Transportation Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (1,446)$ Office of Transportation Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (1,680)$ Office of Transportation General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (654)$ Office of Transportation Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (15,062)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 26,449$ UNIVERSITY AVENUE FUND (236) SUBTOTAL -$ -$ Attachment A, Exhibit 2 page 20 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment CAPITAL IMPROVEMENT FUNDS CAPITAL IMPROVEMENT FUND (471) Capital Capital Improvement Project Reappropriations This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 3. Capital 3,471,529$ Capital (2,958,168)$ Public Works Streets & Sidewalks Program Reductions This action reduces 1.0 Associate Engineer and 0.48 General Laborer -H, 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. -$ Salaries & Benefits (188,207)$ Public Works Buildings & Facilities Reductions This action reduces 1.0 Project Manager across all funds (0.65 FTE in the General Fund) 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. -$ Salaries & Benefits (59,577)$ Public Works Capital Projects General Fund Buildings & Facilities Reductions This action reduces 1.0 Engineer and will result in reduced ability of the department to implement capital projects. -$ Salaries & Benefits (166,171)$ 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. -$ Salaries & Benefits 27,560$ Capital Transfers from General Fund This action reduces the General Fund Base transfer by approximately 50% and includes the additional $2.6 million in reductions in the General Fund Transfer to Capital directed by City Council during the Budget Hearings ($10.7 million). In addition, consistent with recommendations to Council on May 4, 2020, the transfer of Transient Occupancy Tax (TOT) funding from the General Fund will be reduced ($8.5 million). Transfers In (19,105,000)$ -$ Capital Transfer from Gas Tax Fund This action reduces the transfer from the Gas Tax Fund to align with lower than anticipated state gas tax revenues and ensure the fund's solvency. In total, the transfer will be reduced by $120,000, from $2.7M to $2.6M, including $10,000 to Safe Routes to School (from $100,000 to $90,000), and $110,000 to Street Maintenance (from $1.3M to $1.2M). Transfers In (110,000)$ -$ Public Works Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (166,769)$ Public Works Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (15,586)$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (16,397)$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses Attachment A, Exhibit 2 page 21 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment CAPITAL IMPROVEMENT FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (7,063)$ Various Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (1,448)$ Public Works Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (12)$ Fund Balance Adjustment to Fund Balance (Infrastructure Reserve) This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves (12,191,633)$ CAPITAL IMPROVEMENT FUND (471) SUBTOTAL (15,743,471)$ (15,743,471)$ CUBBERLEY INFRASTRUCTURE FUND (472) Public Works Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salaries & Benefits (2,284)$ Fund Balance Adjustment to Fund Balance (Infrastructure Reserve) This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 2,284$ CUBBERLEY INFRASTRUCTURE FUND (472) SUBTOTAL -$ -$ Attachment A, Exhibit 2 page 22 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment ENTERPRISE FUNDS AIRPORT FUND (530) Public Works Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (44,325)$ Public Works Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (2,606)$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (2,368)$ Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (1,100)$ Public Works Information Technology Adjustment This action reflects the combined impact from adjustments to allocated charges for information technology as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (7,914)$ Public Works Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (541)$ Public Works Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (6,500)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 65,354$ AIRPORT FUND (530) SUBTOTAL -$ -$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses Attachment A, Exhibit 2 page 23 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses ELECTRIC FUND (513 & 523) Capital Capital Improvement Project Reappropriations -$ Contract 1,831,915$ Utilities This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 3. Electric Rates at 0% and Staffing Resource Reduction for FY 2021 This action will maintain a 0% rate change for FY 2021. In addition to projected load loss, maintaining a zero electric rate change will result in revenue losses of approximately $18 million and the reduction of the Electric Fund's respective portion of the following positions which are budgeted throughout the Utilities Funds: 1.0 Utilities Chief Operating Officer; 1.0 Assistant Director, Utilities Engineering; 1.0 Business Analyst; 1.0 Utilities Supervisor; 1.0 Substation Electrician. A portion of the revenue loss will be offset by fewer commodity purchases due to load loss. Additionally, this action reduces staffing, which are anticipated to have minimal short-term impacts, however, may delay implementation of advanced meter infrastructure and building electrification. The City will also have to defer some underground rebuild capital improvement projects to maintain reserves at the target level; these are detailed in expenses reported in the Capital information of Attachment A, Exhibit 3. Impact to other funds are detailed in Attachment A, Exhibit 4. (9,000,000) Services Net Sales $ (18,203,817) Utility Purchase $ Utilities Vehicle Replacement Program Reductions This action reflects the combined impact from adjustments to Vehicle Replacement Program reductions as outline in Attachment A, Exhibit 4. -$ Allocated Charges (227,930)$ Utilities Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (20,043)$ Utilities Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (93,265)$ Utilities Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (50,364)$ Utilities General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (8,654)$ Utilities Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (3,486)$ Utilities Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (1,065)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves (10,630,926)$ ELECTRIC FUND (513 & 523) SUBTOTAL (18,203,817)$ (18,203,817)$ Attachment A, Exhibit 2 page 24 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses FIBER OPTICS FUND (533) Capital Capital Improvement Project Reappropriations This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 3. -$ Contract Services 775,000$ Utilities Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (3,531)$ Utilities General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (607)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves (770,862)$ FIBER OPTICS FUND (533) SUBTOTAL -$ -$ Attachment A, Exhibit 2 page 25 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses GAS FUND (514 & 524) Capital Capital Improvement Project Reappropriations This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 3. -$ Contract Services (3,850,001)$ Utilities Vehicle Replacement Program Reductions This action reflects the combined impact from adjustments to Vehicle Replacement Program reductions as outline in Attachment A, Exhibit 4. -$ Allocated Charges (179,410)$ Utilities Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (3,685)$ Utilities Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (40,393)$ Utilities Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (21,314)$ Utilities General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (3,662)$ Utilities Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (2,101)$ Utilities Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (48)$ Utilities Gas Rate Increase of 2% and Staffing Resource Reduction for FY 2021 This action will increase the gas rate by 2%, which enables the City to continue the cross-bore safety inspection program and PVC gas main replacement capital project. In order to maintain Gas fund reserves within acceptable target levels, the City will reduce the scope of the gas main replacement project GS-13001 by 30%, or approximately $3.0 million, detailed in expenses reported in the Capital information of Attachment A, Exhibit 2. Additionally, this action reduces staffing resources, which is anticipated to have minimal short-term impacts, however this may delay implementation of advanced meter infrastructure and gas meter replacements. The reduction of Gas Fund's portion of the following positions throughout the Utilities Funds is a result of this action: 1.0 Utilities Chief Operating Officer; 1.0 Assistant Director, Utilities Engineering; 1.0 Business Analyst; 1.0 Utilities Supervisor; 1.0 Substation Electrician. Impact to other funds are detailed in Attachment A, Exhibit 4. Net Sales (2,173,364)$ Utility Purchase (574,000)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 2,501,250$ GAS FUND (514 & 524) SUBTOTAL (2,173,364)$ (2,173,364)$ Attachment A, Exhibit 2 page 26 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses Public Works Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (85,355)$ Public Works Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (13,080)$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (6,925)$ Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (3,218)$ Public Works Information Technology Adjustment This action reflects the combined impact from adjustments to allocated charges for information technology as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (52,703)$ Public Works Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (1,199)$ Public Works Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (1,865)$ Public Works Vehicle Replacement Program Reductions This action reflects the combined impact from adjustments to Vehicle Replacement Program reductions as outline in Attachment A, Exhibit 4. -$ Allocated Charges (58,691)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 223,036$ REFUSE FUND (525) SUBTOTAL -$ -$ Attachment A, Exhibit 2 page 27 REFUSE FUND (525) ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses STORM DRAINAGE FUND (528) Capital Capital Improvement Project Reappropriations This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 3. -$ Contract Services 5,000$ Public Works Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (51,646)$ Public Works Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (8,921)$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (6,056)$ Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (2,814)$ Public Works Information Technology Adjustment This action reflects the combined impact from adjustments to allocated charges for information technology as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (37,461)$ Public Works Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (1,112)$ Public Works Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (5,348)$ Public Works Vehicle Replacement Program Reductions This action reflects the combined impact from adjustments to Vehicle Replacement Program reductions as outline in Attachment A, Exhibit 4. -$ Allocated Charges (89,839)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 198,197$ STORM DRAINAGE FUND (528) SUBTOTAL -$ -$ Attachment A, Exhibit 2 page 28 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses UTILITIES ADMINISTRATION FUND (521) Utilities Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (124,380)$ Utilities Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (9,399)$ Utilities General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (1,615)$ Utilities Information Technology Adjustment This action reflects the combined impact from adjustments to allocated charges for information technology as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (707,568)$ Utilities Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (6,211)$ Utilities Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (7,589)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 856,762$ UTILITIES ADMINISTRATION FUND (521) SUBTOTAL -$ -$ Attachment A, Exhibit 2 page 29 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses WASTEWATER COLLECTION FUND (527) Capital Capital Improvement Project Reappropriations This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 3. 600,000$ Contract Services 316,424$ Utilities Vehicle Replacement Program Reductions This action reflects the combined impact from adjustments to Vehicle Replacement Program reductions as outline in Attachment A, Exhibit 4. -$ Allocated Charges (117,130)$ Utilities Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (553)$ Utilities Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (15,586)$ Utilities Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (11,913)$ Utilities General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (2,047)$ Utilities Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (250)$ Utilities Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (87)$ Utilities Wastewater Rates at 0% and Staffing Resource Reduction for FY 2021 This action will maintain wastewater rates at 0% and offset potential revenue losses by reducing the linear footage of main replacement projects and/or delay future construction of sewer main replacement project WC-17001. This would decrease expenses, detailed in the Capital Information of Attachment A, Exhibit 2, by approximately $700,000. Additionally, this action reduces the Wastewater Collection Fund's respective portions of the following positions which are allocated throughout the Utilities Funds: 1.0 Utilities Chief Operating Officer; 1.0 Assistant Director, Utilities Engineering; 1.0 Business Analyst; 1.0 Utilities Supervisor; 1.0 Substation Electrician. Impact to other funds are detailed in Attachment A, Exhibit 4. Net Sales (878,106)$ Utility Purchase (6,038)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves (440,926)$ WASTEWATER COLLECTION FUND (527) SUBTOTAL (278,106)$ (278,106)$ Attachment A, Exhibit 2 page 30 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses WASTEWATER TREATMENT FUND (526) Capital Capital Improvement Project Reappropriations This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 3. Revenue from Other Agencies 19,208,000$ Contract Services 13,366,025$ Public Works Vehicle Replacement Program Reductions This action reflects the combined impact from adjustments to Vehicle Replacement Program reductions as outline in Attachment A, Exhibit 4. -$ Allocated Charges (43,378)$ 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. -$ Salaries & Benefits 27,184$ Public Works Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (239,062)$ Public Works Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (50,867)$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (31,629)$ Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (14,699)$ Public Works Information Technology Adjustment This action reflects the combined impact from adjustments to allocated charges for information technology as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (208,829)$ Public Works Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (2,614)$ Public Works Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (159,106)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 6,564,975$ WASTEWATER TREATMENT FUND (526) SUBTOTAL 19,208,000$ 19,208,000$ Attachment A, Exhibit 2 page 31 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses WATER FUND (522) Capital Capital Improvement Project Reappropriations This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 3. 865,666$ 5,293,357$ Utilities Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (40,448)$ Utilities Vehicle Replacement Program Reductions This action reflects the combined impact from adjustments to Vehicle Replacement Program reductions as outline in Attachment A, Exhibit 4. -$ Allocated Charges (144,852)$ Utilities Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (1,107)$ Utilities Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (25,509)$ Utilities Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (20,663)$ Utilities General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (3,550)$ Utilities Water Rates at 0% and Staffing Resource Reduction for FY 2021 This action will maintain a 0% rate increase for FY 2021 and FY 2022, in alignment with the San Francisco Public Utilities Commission (SFPUC) projection of 0% water supply rate increases until FY 2023. Due to past capital improvement project deferrals, the City has adequate Water Fund reserves to absorb the anticipated decrease in revenues, which would be partially offset by projected load losses. Additionally, the City would still be able to continue to complete the seismic water tank replacement and water main replacements in FY 2021. This action also reduces the Water Fund's respective portions of the following staff resources that are budgeted throughout the Utility Funds: 1.0 Utilities Chief Operating Officer; 1.0 Assistant Director, Utilities Engineering; 1.0 Business Analyst; 1.0 Utilities Supervisor; 1.0 Substation Electrician. These are anticipated to have minimal short-term impact, however this may delay implementation of advanced meter infrastructure and water meter replacements. Impact to other funds are detailed in Attachment A, Exhibit 4. Net Sales (2,022,430)$ Utility Purchase (750,000)$ Utilities Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (2,075)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves (5,463,993)$ WATER FUND (522) SUBTOTAL (1,156,764)$ (1,158,839)$ Attachment A, Exhibit 2 page 32 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment INTERNAL SERVICE FUNDS GENERAL BENEFITS FUND (687) Non-Departmental Charges to Other Funds/Retirement Expense This one-time action decreases the estimate for charges to other funds by $406,000 due to labor concessions in the Management group in FY 2021. In total, the Management concessions generate salary and benefit savings of $3.5M ($2.3M in the General Fund). Of this amount, $406,000 ($258,000 in the General Fund) is attributable to pension costs that are calculated as a percentage of payroll, including normal cost, employee share, and supplemental contributions. The General Benefits Fund acts as a pass-through for pension costs; therefore, a reduction to the department allocation and the associated expense for pension is recommended. Corresponding actions are recommended in this report and detailed in Attachment A, Exhibit 4 to distribute savings across the City. (405,595)$ (405,595)$ Non-Departmental Transfer To Retiree Health Benefits Fund This action decreases the transfer from the General Benefit Fund to the Retiree Healthcare Fund to align the implied subsidy with the most recent actuarial valuation performed by Bartel Associates that reduced the subsidy from 2.38M to $2.35M in FY 2021 (CMR 11284). The implied subsidy recognizes the higher cost of medical services for retirees, which is reduced from the active employees’ health care costs in the General Benefits Fund and transferred to the Retiree Health Benefit fund for retiree medical costs. A corresponding increase to active employee healthcare costs is also recommended in this report. -$ (37,000)$ Non-Departmental Health Benefit Expense This action increases active employee healthcare costs in the General Benefit Fund to align the implied subsidy with the most recent actuarial valuation performed by Bartel Associates that reduced the subsidy from 2.38M to $2.35M in FY 2021 (CMR 11284). The implied subsidy recognizes the higher cost of medical services for retirees, which is reduced from the active employees’ health care costs in the General Benefits Fund and transferred to the Retiree Health Benefit fund for retiree medical costs. A corresponding reduction to the transfer is also recommended in this report. -$ 37,000$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves -$ GENERAL BENEFITS FUND (687) SUBTOTAL (405,595)$ (405,595)$ GENERAL LIABILITY INSURANCE FUND (689) Non-Departmental Charges to Other Funds This one-time action decreases the estimate for charges to other funds by $125,000 ($68,000 in the General Fund) and is offset by a decrease in accumulated fund balance in the General Liability Fund. Staff will continue to proactively monitor and analyze the General Liability Insurance Fund throughout FY 2021 to ensure it remains resourced appropriately and that the risk is appropriately managed. Corresponding actions are recommended in this report and detailed in Attachment A, Exhibit 4 to distribute savings across the City. (125,000)$ -$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves (125,000)$ GENERAL LIABILITY INSURANCE FUND (689) SUBTOTAL (125,000)$ (125,000)$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses Attachment A, Exhibit 2 page 33 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment INTERNAL SERVICE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses PRINTING AND MAILING FUND (683) Administrative Services Vehicle Replacement Program Reductions This action reflects the combined impact from adjustments to Vehicle Replacement Program reductions as outline in Attachment A, Exhibit 4. -$ Allocated Charges (1,307)$ Administrative Services Printing Services This action restructures the City's printing services through a reduction in costs by $110,000. Staff is evaluating adjustments to the City's copier leases. The General Fund portion of these savings is anticipated to be approximately $88,000 based on the allocation of printing costs across the City. Impacts to various citywide funds are detailed in Attachment A, Exhibit 4. Allocated Charges (110,000)$ (110,000)$ Non-Departmental Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ (1,676)$ Non-Departmental Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ (852)$ Non-Departmental Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ (614)$ Non-Departmental General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ (91)$ Public Works Information Technology Adjustment This action reflects the combined impact from adjustments to allocated charges for information technology as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (8,816)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 13,356$ PRINTING AND MAILING FUND (683) SUBTOTAL (110,000)$ (110,000)$ Attachment A, Exhibit 2 page 34 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment INTERNAL SERVICE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses RETIREE HEALTH BENEFITS FUND (694) Non-Departmental Charges to Other Funds/Retirement Premium Expense This action decreases the estimate for charges to other funds by $826,000 ($527,000 in the General Fund) to align department allocations for Retiree Healthcare costs with the most recent actuarial valuation performed by Bartel Associates. Consistent with the direction approved by the Finance Committee on May 5, 2020 the allocated charges will now be aligned with funding contributions presuming a 6.25 percent Discount Rate (CMR 11284). Corresponding actions are recommended in this report and detailed in Attachment A, Exhibit 4 to distribute savings across the City. (826,000)$ (826,000)$ Non-Departmental Transfer From General Benefits Fund/Health Benefit Expense This action decreases the transfer from the General Benefit Fund to the Retiree Healthcare Fund to align the implied subsidy with the most recent actuarial valuation performed by Bartel Associates that reduced the subsidy from 2.38M to $2.35M in FY 2021 (CMR 11284). The implied subsidy recognizes the higher cost of medical services for retirees, which is reduced from the active employees’ health care costs in the General Benefits Funds and transferred to the Retiree Health Benefits fund for retiree medical costs. A corresponding reduction to retiree healthcare costs is also recommended in this report. (37,000)$ (37,000)$ RETIREE HEALTH BENEFITS FUND (694) SUBTOTAL (863,000)$ (863,000)$ TECHNOLOGY FUND (682) Capital Capital Improvement Project Reappropriations This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 3. Charges to Other Funds (46,000)$ Contract Services (2,157,463)$ Information Technology Recognize Accumulated Savings in IT Fund Balance This action recognizes anticipated savings resulting from FY 2020 Vacancy Savings and funding for equipment replacements that has accumulated to subsidize payments from all funds to the Information Technology Fund on a one-time basis in FY 2021. This will result in savings in IT allocated charges in the General Fund and Other Funds and decrease the fund balance in the Information Technology Fund. Since this action does not decrease expenses in the IT Fund consistent with revenue decreases, the revenue and expense adjustments for all funds are much closer aligned than other actions. This action reflects the combined impact from adjustments to Information Technology reductions as outlined in Attachment A, Exhibit 4. Charges to Other Funds (682,113)$ -$ Information Technology Printing Services Adjustment This action reflects the combined impact from adjustments to allocated charges for printing services as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (506)$ Information Technology Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (997)$ Information Technology Vehicle Replacement Program Reductions This action reflects the combined impact from adjustments to Vehicle Replacement Program reductions as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (4,632)$ Information Technology Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (453,765)$ Attachment A, Exhibit 2 page 35 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment INTERNAL SERVICE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses Information Technology Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (20,698)$ Information Technology Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (15,658)$ Information Technology General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (3,109)$ Information Technology Position Eliminations, Deferral of Hiring, and Reduction in Department Training This action reduces and defers the hiring of staff including 1.0 Director, Information Technology, 2.0 Senior Technologists, and 1.0 Technologist. This budget impact will result in decreased response time for internal work orders and delays in projects support and management across the organization. Charges to Other Funds (923,256)$ Salary & Benefits (923,256)$ 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. Charges to Other Funds (790,881)$ Contract Services (790,881)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves 1,928,715$ TECHNOLOGY FUND (682) SUBTOTAL (2,442,250)$ (2,442,250)$ Attachment A, Exhibit 2 page 36 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment INTERNAL SERVICE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses VEHICLE REPLACEMENT FUND (681) Capital Capital Improvement Project Reappropriations This action reflects the combined impact from adjustments to projects as outlined in Attachment A, Exhibit 3. -$ Contract Services (1,786,000)$ Public Works Vehicle Maintenance & Replacement (VRM) Fund Reductions This action will reduce vehicle replacements and resources, including 1.0 Motor Equipment Mechanic II, 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. Impacts to various citywide funds are detailed in Attachment A, Exhibit 4. (2,142,660)$ Allocated Charges (127,067)$ Public Works Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (47,357)$ Public Works Retiree Health Adjustment This action reflects the combined impact from adjustments to healthcare charges for Retirees as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (8,870)$ Public Works Workers' Compensation Adjustment This action reflects the combined impact from adjustments to salary and benefit charges for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (6,587)$ Public Works General Liability Insurance Adjustment This action reflects the combined impact from adjustments to allocated charge for general liability insurance as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (3,061)$ Public Works Utilities Adjustment This action reflects the combined impact from adjustments to allocated charges for utilities as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (7,529)$ Public Works Information Technology Adjustment This action reflects the combined impact from adjustments to allocated charges for information technology as outlined in Attachment A, Exhibit 4. -$ Allocated Charges (53,023)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves (103,166)$ VEHICLE REPLACEMENT FUND (681) SUBTOTAL (2,142,660)$ (2,142,660)$ Attachment A, Exhibit 2 page 37 ATTACHMENT A, EXHIBIT 2 Department Category Adjustment Category Adjustment INTERNAL SERVICE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Revenues Expenses WORKERS' COMPENSATION FUND (688) Non-Departmental Charges to Other Funds This one-time action decreases the estimate for charges to other funds by $625,000 ($418,000 in the General Fund) and is offset by a decrease in accumulated fund balance in the Workers' Compensation Fund. Staff will continue to proactively monitor and analyze the Workers' Compensation Fund throughout FY 2021 to ensure it remains resourced appropriately and that the risk is appropriately managed. Corresponding actions are recommended in this report and detailed in Attachment A, Exhibit 4 to distribute savings across the City. (625,000)$ -$ Non-Departmental Management Concessions This action reflects the combined impact from adjustments to salary and benefit charges for Management group labor concessions as outlined in Attachment A, Exhibit 4. -$ Salary & Benefits (13,635)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. -$ Fund Balance/ Reserves (611,365)$ WORKERS' COMPENSATION FUND (688) SUBTOTAL (625,000)$ (625,000)$ Attachment A, Exhibit 2 page 38 ATTACHMENT A, EXHIBIT 3 Project Project Revenue Expense Revenue Expense Revenue Expense Number Title Adjustments Adjustments Adjustments Adjustments Funding Funding AC-86017 Art In Public Spaces $ - $ (122,770) $ - $ 67,115 $ - $ 2,748,081 PF-93009 Americans With Disabilities Act Compliance $ - $ (200,000) $ - $ (200,000) $ - $ 2,161,026 PG-06001 Athletic Courts Resurfacing $ - $ 91,535 $ - $ 37,375 $ - $ 1,457,975 PG-19001 Baylands Athletic Center 10.5 Acre Expansion Plan $ - $ (81,400) $ - $ (81,400) $ - $ - PE-17006 Baylands Flood Protection Levee Improvements $ - $ (1,098,600) $ - $ (1,098,600) $ - $ - PG-06003 Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities $ - $ 23,099 $ - $ 23,099 $ - $ 1,251,619 PL-04010 Bicycle and Pedestrian Transportation Plan Implementation $ - $ (1,000,000) $ - $ (4,000,000) $ 2,400,000 $ 7,323,595 PE-19003 Birch Street Improvements $ - $ - $ 1,500,000 $ 2,400,000 $ 1,500,000 $ 2,400,000 PF-01003 Building Systems Improvements $ - $ (300,000) $ - $ (300,000) $ - $ 1,433,637 PE-18006 Byxbee Park Completion $ - $ (300,000) $ - $ (300,000) $ 2,400,000 $ 2,881,146 PG-14002 Cameron Park Improvements $ - $ 20,000 $ - $ 20,000 $ - $ 217,800 AS-10000 Capital Improvement Fund Administration $ - $ 471,140 $ - $ 2,006,696 $ - $ 14,790,565 FD-20000 Cardiac Monitor Replacement $ 7,000 $ 42,000 $ 7,000 $ 42,000 $ 7,000 $ 42,000 PE-13011 Charleston/Arastradero Corridor Project $ - $ 5,800,000 $ - $ 5,800,000 $ 1,303,710 $ 5,800,000 PE-09003 City Facility Parking Lot Maintenance $ - $ (400,000) $ - $ (400,000) $ 100,000 $ 1,142,641 PG-18001 Dog Park Installation and Renovation $ 150,000 $ - $ 150,000 $ - $ 450,000 $ 590,400 CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised Total CAPITAL IMPROVEMENT FUND Attachment A, Exhibit 3 Page 1 ATTACHMENT A, EXHIBIT 3 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 FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised Total PE-13017 El Camino Median Landscape Improvements $ - $ (108,300) $ - $ (1,009,800) $ - $ - PL-15001 Embarcadero Road at El Camino Improvements $ - $ - $ - $ (7,426,600) $ - $ - PL-19000 Emergency Vehicle Traffic Signal Preemption System Pilot $ - $ 60,000 $ - $ 60,000 $ - $ 60,000 PF-02022 Facility Interior Finishes Replacement $ - $ (400,000) $ - $ (400,000) $ 413,000 $ 1,773,217 FD-14002 Fire Ringdown System Replacement $ 5,000 $ 16,000 $ 5,000 $ 16,000 $ 5,000 $ 16,000 PE-18004 Fire Station 4 Replacement $ - $ (1,000,000) $ 8,150,000 $ - $ 8,900,000 $ 9,850,000 PG-17001 Foothills Park, Pearson Arastradero Preserve, and Esther Clark Park Conservation Plan $ - $ (319,200) $ - $ (489,600) $ - $ - PG-13003 Golf Reconfiguration & Baylands Athletic Center Improvements $ - $ 200,000 $ - $ 200,000 $ - $ 200,000 LB-21000 Library Automated Material Handling $ 180,000 $ 220,900 $ - $ - $ 630,000 $ 803,900 PE-15007 New Downtown Parking Garage $ - $ (35,172) $ (9,072,000) $ (21,532,172) $ 5,541,000 $ 5,103,000 PE-15001 New Public Safety Building $ 900,000 $ - $ 900,000 $ - $ 103,150,000 $ 106,600,000 OS-09001 Off-Road Pathway Resurfacing And Repair $ - $ (200,000) $ - $ (200,000) $ - $ 738,300 PG-09002 Park and Open Space Emergency Repairs $ - $ 22,134 $ - $ 22,134 $ - $ 1,333,355 PG-19000 Park Restroom Installation $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 1,050,000 $ 1,285,300 PL-15003 Parking District Implementation $ - $ (173,674) $ - $ (375,574) $ - $ 712,300 PG-14000 Ramos Park Improvements $ - $ 209,000 $ - $ 209,000 $ - $ 209,000 PE-08001 Rinconada Park Improvements $ 1,999,529 $ 1,037,933 $ 1,999,529 $ 1,037,933 $ 2,399,529 $ 6,107,329 Attachment A, Exhibit 3 Page 2 ATTACHMENT A, EXHIBIT 3 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 FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised Total PF-00006 Roofing Replacement $- $ (684,002) $- $ (684,002) $- $ 2,240,091 PL-00026 Safe Routes to School $ (10,000) $(10,000) $ (10,000) $ (10,000) $ 1,409,354 $ 2,096,954 PO-89003 Sidewalk Repairs $- $ (1,747,619) $- $ (2,547,619) $- $ 5,261,863 PE-13014 Street Lights Condition Assessment $- $ (241,778) $- $ (241,778) $- $- PO-05054 Street Lights Improvements $- $ (300,000) $- $ (500,000) $- $ 868,987 PE-86070 Street Maintenance $ (110,000) $381,843 $ (110,000) $ (618,157) $ 16,268,450 $ 24,835,243 PL-05030 Traffic Signal and Intelligent Transportation Systems $- $ (500,000) $- $ (500,000) $ 3,480,000 $ 5,051,655 PL-12000 Transportation and Parking Improvements $- $- $- $ (200,000) $- $ 2,649,042 PG-18002 Turf Management Plan $- $ (109,900) $- $ (109,900) $- $- PE-15011 Ventura Buildings Improvements $- $ (2,034,197) $- $ (2,034,197) $- $- $ 3,471,529 $ (2,421,028) $ 3,869,529 $ (32,968,047) $ 151,407,043 $ 222,036,021 EL-16002 Capacitor Bank Installation $- $300,000 $- $ 300,000 $- $ 600,000 EL-14000 Coleridge/Cowper/Tennyson 4/12kV Conversion $- $ (830,000) $- $ (830,000) $- $ 50,000 EL-19002 Colorado Substation Site Improvements $- $330,000 $- $ 330,000 $- $ 1,250,000 EL-17001 East Meadow Circles 4/12kV Conversion $- $(66,000) $- $ (66,000) $- $ 100,000 EL-02011 Electric Utility Geographic Information System $- $220,000 $- $ 220,000 $- $ 1,049,950 TOTAL CAPITAL IMPROVEMENT FUND PROJECT ADJUSTMENTS ELECTRIC FUND Attachment A, Exhibit 3 Page 3 ATTACHMENT A, EXHIBIT 3 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 FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised Total EL-17007 Facility Relocation for Caltrain Modernization Project $- $ 2,723,631 $- $ 2,723,631 $- $ 2,723,631 EL-20000 Hopkins Substation 4/12kV Conversion $- $(50,000) $- $ (50,000) $- $ 4,110,000 EL-17005 Inter-substation Line Protection Relay $- $110,429 $- $ 110,429 $- $ 490,429 EL-11003 Rebuild Underground District 15 $- $ (1,119,609) $- $ (1,119,609) $- $ 50,000 EL-13003 Rebuild Underground District 16 $- $ (340,667) $- $ (340,667) $- $ 359,000 EL-17000 Rebuild Underground District 23 $- $ (214,000) $- $ (214,000) $- $ 1,100,000 EL-16000 Rebuild Underground District 26 $- $ (1,745,500) $- $ (1,545,500) $- $ 300,000 EL-14005 Reconfigure Quarry Feeders $- $50,000 $- $ 50,000 $- $ 50,000 EL-16003 Substation Physical Security $- $ (303,000) $- $ (303,000) $- $ 2,695,852 EL-12001 Underground District 46 - Charleston/El Camino Real $- $ 1,021,531 $- $ 1,021,531 $- $ 1,021,531 EL-11010 Underground District 47-Middlefield, Homer, Webster, Addison $- $120,000 $- $ 120,000 $- $ 120,000 EL-16001 Underground System Rebuild $- $(50,000) $- $ (50,000) $- $ 1,760,500 EL-19004 Wood Pole Replacement $- $ 1,475,000 $- $ 1,475,000 $ 750,000 $ 9,020,000 TOTAL ELECTRIC FUND PROJECT ADJUSTMENTS $- $ 1,631,815 $- $ 1,831,815 $ 750,000 $ 26,850,893 Attachment A, Exhibit 3 Page 4 ATTACHMENT A, EXHIBIT 3 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 FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised Total FO-16000 Fiber Optics Network - System Rebuild $- $775,000 $- $ 775,000 $- $ 1,075,000 TOTAL FIBER FUND PROJECT ADJUSTMENTS $- $775,000 $- $ 775,000 $- $ 1,075,000 GS-13001 Gas Main Replacement - Project 23 $- $ (3,000,000) $- $ (3,000,000) $- $ 7,620,046 GS-80019 Gas Meters and Regulators $- $ (850,001) $- $ (850,001) $- $ 3,000,000 TOTAL GAS FUND PROJECT ADJUSTMENTS $- $ (3,850,001) $- $ (3,850,001) $- $ 10,620,046 SD-23000 West Bayshore Road Trunk Line Improvements $- $5,000 $- $ 5,000 $- $ 2,401,475 TOTAL STORMWATER MANAGEMENT FUND PROJECT ADJUSTMENTS $- $5,000 $- $ 5,000 $- $ 2,401,475 TE-19001 City Council Chambers Upgrade $ (46,000) $(93,000) $- $- $ 46,000 $ 93,000 TE-12001 Development Center Blueprint Technology Enhancements $- $(25,000) $- $ (25,000) $- $ 452,600 TE-19000 Enterprise Resource Planning Upgrade $- $ (2,029,000) $- $- $- $ 2,029,000 TE-13004 Infrastructure Management System $- $25,000 $- $ 25,000 $- $ 46,800 TE-01012 IT Disaster Recovery Plan $- $(33,600) $- $ (33,600) $- $- TE-05000 Radio Infrastructure Replacement $- $(1,863) $- $ (1,863) $- $ 199,137 $ (46,000) $ (2,157,463) $- $ (35,463) $ 46,000 $ 2,820,537 TOTAL TECHNOLOGY FUND PROJECT ADJUSTMENTS FIBER FUND GAS FUND STORMWATER MANAGEMENT FUND TECHNOLOGY FUND Attachment A, Exhibit 3 Page 5 ATTACHMENT A, EXHIBIT 3 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 FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised Total VR-21000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2021 $- $ (1,786,000) $- $ (1,786,000) $- $ 1,405,000 VR-22000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2022 $- $- $- $ (1,786,000) $- $ 1,377,000 $- $ (1,786,000) $- $ (3,572,000) $- $ 2,782,000 WC-80020 Sewer System, Customer Connections $ 450,000 $- $ 450,000 $- $ 2,100,000 $ 2,220,000 WC-15001 Wastewater Collection System Rehabilitation/Augmentation Project 28 $- $500,000 $- $ 500,000 $- $ 500,000 WC-16001 Wastewater Collection System Rehabilitation/Augmentation Project 29 $- $557,424 $- $ 557,424 $- $ 2,195,424 WC-17001 Wastewater Collection System Rehabilitation/Augmentation Project 30 $- $ (741,000) $- $ (741,000) $- $ 5,980,000 $ 450,000 $316,424 $ 450,000 $ 316,424 $ 2,100,000 $ 10,895,424 WQ-19003 Advanced Water Purification Facility $ 3,000,000 $448,000 $ 3,000,000 $ 448,000 $ 23,900,000 $ 21,564,000 WQ-14002 New Laboratory And Environmental Services Building $ 1,910,000 $434,168 $ 1,910,000 $ 434,168 $ 23,410,000 $ 23,167,460 WQ-19000 Outfall Line Construction $ 3,850,000 $ 3,850,000 $ 3,850,000 $ 3,850,000 $ 8,800,000 $ 8,886,000 WQ-19002 Plant Repair, Retrofit, and Equipment Replacement $- $20,944 $- $ 20,944 $- $ 21,514,834 WQ-14003 Primary Sedimentation Tank Rehabilitation $ 8,148,000 $ 7,774,613 $ 8,148,000 $ 7,774,613 $ 17,632,000 $ 19,654,800 WQ-19001 Secondary Treatment Upgrades $ 2,300,000 $838,300 $ 2,300,000 $ 838,300 $ 32,430,000 $ 31,362,300 $ 19,208,000 $ 13,366,025 $ 19,208,000 $ 13,366,025 $ 106,172,000 $ 126,149,394 VEHICLE REPLACEMENT FUND TOTAL VEHICLE REPLACEMENT FUND PROJECT ADJUSTMENTS WASTEWATER COLLECTION FUND TOTAL WASTEWATER COLLECTION FUND PROJECT ADJUSTMENTS WASTEWATER TREATMENT FUND TOTAL WASTEWATER TREATMENT FUND PROJECT ADJUSTMENTS Attachment A, Exhibit 3 Page 6 ATTACHMENT A, EXHIBIT 3 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 FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised Total WS-19000 Mayfield Reservoir Subgrade and Venting Repair $- $184,879 $- $ 184,879 $- $ 184,879 WS-14001 Water Main Replacement - Project 28 $- $85,107 $- $ 85,107 $- $ 9,085,107 WS-80015 Water Meters $- $ (1,000,000) $- $ (1,000,000) $- $ 2,819,207 WS-07001 Water Recycling Facilities $- $(4,629) $- $ (4,629) $- $ 391,020 WS-07000 Water Regulation Station Improvements $- $ (550,000) $- $ (550,000) $- $ 209,000 WS-80013 Water System Customer Connections $ 575,000 $- $ 2,375,000 $- $ 9,358,154 $ 4,524,300 WS-09000 Water Tank Seismic Upgrade and Rehabilitation $- $ 6,142,000 $- $ 6,142,000 $- $ 11,993,000 WS-02014 Water, Gas, Wastewater Utility GIS Data $- $436,000 $- $ 436,000 $ 1,663,021 $ 2,930,528 $ 575,000 $ 5,293,357 $ 2,375,000 $ 5,293,357 $ 11,021,175 $ 32,137,041 $ 23,658,529 $ 11,173,129 $ 25,902,529 $ (18,837,890) $ 271,496,218 $ 437,767,831 WATER FUND TOTAL WATER FUND PROJECT ADJUSTMENTS TOTAL ALL FUNDS Attachment A, Exhibit 3 Page 7 ATTACHMENT A, EXHIBIT 4 Workers' Compensation Fund Department/ Fund Title Revenue Expense Comments General Fund Administrative Services Workers' Compensation Adjustment $ - $ (19,573)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. General Fund City Attorney Workers' Compensation Adjustment $ - $ (6,950)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. General Fund City Auditor Workers' Compensation Adjustment $ - $ (2,766)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. General Fund City Clerk Workers' Compensation Adjustment $ - $ (2,486)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. General Fund City Council Workers' Compensation Adjustment $ - $ (608)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. General Fund City Manager Workers' Compensation Adjustment $ - $ (7,966)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. General Fund Community Services Workers' Compensation Adjustment $ - $ (39,422)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.General Fund Fire Workers' Compensation Adjustment $ - $ (126,398)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.General Fund Human Resources Workers' Compensation Adjustment $ - $ (8,035)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.General Fund Library Workers' Compensation Adjustment $ - $ (16,934)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.General Fund Office of Emergency Services Workers' Compensation Adjustment $ - $ (2,655)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. General Fund Office of Transportation Workers' Compensation Adjustment $ - $ (2,698)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.General Fund Planning and Development Services Workers' Compensation Adjustment $ - $ (26,836)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. General Fund Police Workers' Compensation Adjustment $ - $ (131,882)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.General Fund Public Works Workers' Compensation Adjustment $ - $ (22,705)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. - $ (417,917) Capital Improvement Fund 471 Workers' Compensation Adjustment $ - $ (16,397)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. $ - $ (16,397) Airport Fund 530 Workers' Compensation Adjustment $ - $ (2,368)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.Electric Fund 513 & 523 Workers' Compensation Adjustment $ - $ (50,364)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.Fiber Optics Fund 533 Workers' Compensation Adjustment $ - $ (3,531)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET GENERAL FUND GENERAL FUND SUBTOTAL CAPITAL FUNDS CAPITAL FUNDS SUBTOTAL Attachment A, Exhibit 4 page 1 ATTACHMENT A, EXHIBIT 4 Workers' Compensation Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET Gas Fund 514 & 524 Workers' Compensation Adjustment $ - $ (21,314)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.Refuse Fund 525 Workers' Compensation Adjustment $ - $ (6,925)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.Storm Drainage Fund 528 Workers' Compensation Adjustment $ - $ (6,056)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.Utilities Administration Fund 521 Workers' Compensation Adjustment $ - $ (9,399)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. Wastewater Collection Fund 527 Workers' Compensation Adjustment $ - $ (11,913)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.Wastewater Treatment Fund 526 Workers' Compensation Adjustment $ - $ (31,629)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. Water Fund 522 Workers' Compensation Adjustment $ - $ (20,663)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. $ - $ (164,162) Information Technology Fund 682 Workers' Compensation Adjustment $ - $ (15,658)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. Printing & Mailing Fund 683 Workers' Compensation Adjustment $ - $ (614)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.Vehicle Maintenance & Replacement Fund 681 Workers' Compensation Adjustment $ - $ (6,587)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. $ - $ (22,859) California Avenue Fund 237 Workers' Compensation Adjustment $ - $ (417)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.Community Development Block Grant (CDBG) Fund 232 Workers' Compensation Adjustment $ - $ (283)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. Housing In- Lieu/Residential Fund 233 Workers' Compensation Adjustment $ - $ (72)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. Housing In- Lieu/Commercial Fund 234 Workers' Compensation Adjustment $ - $ (72)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. Public Art Fund 207 Workers' Compensation Adjustment $ - $ (417)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021.Residential Parking Permit (RPP) Fund 239 Workers' Compensation Adjustment $ - $ (722)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. University Avenue Fund 236 Workers' Compensation Adjustment $ - $ (1,680)Adjustment to salary and benefit charges for workers' compensation to reduce the allocation to departments in FY 2021. $ - $ (3,665) TOTAL ADJUSTMENT $ - $ (625,000) SPECIAL REVENUE FUNDS SUBTOTAL ENTERPRISE FUNDS SUBTOTAL INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS SUBTOTAL SPECIAL REVENUE FUNDS Attachment A, Exhibit 4 page 2 ATTACHMENT A, EXHIBIT 4 General Liability Insurance Fund Department/ Fund Title Revenue Expense Comments General Fund Administrative Services General Liability Insurance Adjustment $ - $ (2,887)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund City Attorney General Liability Insurance Adjustment $ - $ (1,370)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund City Auditor General Liability Insurance Adjustment $ - $ (549)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund City Clerk General Liability Insurance Adjustment $ - $ (494)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund City Council General Liability Insurance Adjustment $ - $ (121)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund City Manager General Liability Insurance Adjustment $ - $ (1,582)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund Community Services General Liability Insurance Adjustment $ - $ (8,355)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund Fire General Liability Insurance Adjustment $ - $ (8,653)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund Human Resources General Liability Insurance Adjustment $ - $ (2,085)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund Library General Liability Insurance Adjustment $ - $ (3,077)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund Office of Emergency Services General Liability Insurance Adjustment $ - $ (403)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund Office of Transportation General Liability Insurance Adjustment $ - $ (1,003)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund Planning and Development Services General Liability Insurance Adjustment $ - $ (7,240)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund Police General Liability Insurance Adjustment $ - $ (20,035)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. General Fund Public Works General Liability Insurance Adjustment $ - $ (10,552)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. - $ (68,405) Capital Improvement Fund 471 General Liability Insurance Adjustment $ - $ (7,063)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. $ - $ (7,063) Airport Fund 530 General Liability Insurance Adjustment $ - $ (1,100)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Electric Fund 513 & 523 General Liability Insurance Adjustment $ - $ (8,654)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Fiber Optics Fund 533 General Liability Insurance Adjustment $ - $ (607)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET GENERAL FUND GENERAL FUND SUBTOTAL CAPITAL FUNDS CAPITAL FUNDS SUBTOTAL Attachment A, Exhibit 4 page 3 ATTACHMENT A, EXHIBIT 4 General Liability Insurance Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET Gas Fund 514 & 524 General Liability Insurance Adjustment $ - $ (3,662)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Refuse Fund 525 General Liability Insurance Adjustment $ - $ (3,218)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Storm Drainage Fund 528 General Liability Insurance Adjustment $ - $ (2,814)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Utilities Administration Fund 521 General Liability Insurance Adjustment $ - $ (1,615)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Wastewater Treatment Fund 526 General Liability Insurance Adjustment $ - $ (14,699)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Wastewater Collection Fund 527 General Liability Insurance Adjustment $ - $ (2,047)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Water Fund 522 General Liability Insurance Adjustment $ - $ (3,550)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. $ - $ (41,968) Information Technology Fund 682 General Liability Insurance Adjustment $ - $ (3,109)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Printing & Mailing Fund 683 General Liability Insurance Adjustment $ - $ (91)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Vehicle Maintenance & Replacement Fund 681 General Liability Insurance Adjustment $ - $ (3,061)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. $ - $ (6,260) California Avenue Fund 237 General Liability Insurance Adjustment $ - $ (135)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Community Development Block Grant (CDBG) Fund 232 General Liability Insurance Adjustment $ - $ (105)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Housing In- Lieu/Residential Fund 233 General Liability Insurance Adjustment $ - $ (27)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Housing In- Lieu/Commercial Fund 234 General Liability Insurance Adjustment $ - $ (27)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Public Art Fund 207 General Liability Insurance Adjustment $ - $ (88)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. Residential Parking Permit (RPP) Fund 239 General Liability Insurance Adjustment $ - $ (268)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. University Avenue Fund 236 General Liability Insurance Adjustment $ - $ (654)Adjustment to allocated charges for general liability to reduce the allocation to departments in FY 2021. $ - $ (1,304) TOTAL ADJUSTMENT $ - $ (125,000) ENTERPRISE FUNDS SUBTOTAL INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS SUBTOTAL SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS SUBTOTAL Attachment A, Exhibit 4 page 4 ATTACHMENT A, EXHIBIT 4 Retiree Health Fund Department/ Fund Title Revenue Expense Comments General Fund Administrative Services Retiree Health Adjustment $ - $ (28,315)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund City Attorney Retiree Health Adjustment $ - $ (6,916)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund City Auditor Retiree Health Adjustment $ - $ (2,706)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund City Clerk Retiree Health Adjustment $ - $ (2,406)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund City Council Retiree Health Adjustment $ - $ (2,957)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund City Manager Retiree Health Adjustment $ - $ (7,567)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund Community Services Retiree Health Adjustment $ - $ (54,325)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund Fire Retiree Health Adjustment $ - $ (133,056)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund Human Resources Retiree Health Adjustment $ - $ (11,426)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund Library Retiree Health Adjustment $ - $ (26,461)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund Office of Emergency Services Retiree Health Adjustment $ - $ (3,102)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund Office of Transportation Retiree Health Adjustment $ - $ (4,751)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund Planning and Development Services Retiree Health Adjustment $ - $ (38,398)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund Police Retiree Health Adjustment $ - $ (154,060)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. General Fund Public Works Retiree Health Adjustment $ - $ (50,667)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. - $ (527,112) Capital Improvement Fund 471 Retiree Health Adjustment $ - $ (15,586)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. $ - $ (15,586) Airport Fund 530 Retiree Health Adjustment $ - $ (2,606)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. Electric Fund 513 & 523 Retiree Health Adjustment $ - $ (93,265)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. Gas Fund 514 & 524 Retiree Health Adjustment $ - $ (40,393)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET GENERAL FUND GENERAL FUND SUBTOTAL CAPITAL FUNDS CAPITAL FUNDS SUBTOTAL Attachment A, Exhibit 4 page 5 ATTACHMENT A, EXHIBIT 4 Retiree Health Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET Refuse Fund 525 Retiree Health Adjustment $ - $ (13,080)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. Storm Drainage Fund 528 Retiree Health Adjustment $ - $ (8,921)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. Wastewater Treatment Fund 526 Retiree Health Adjustment $ - $ (50,867)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. Wastewater Collection Fund 527 Retiree Health Adjustment $ - $ (15,586)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. Water Fund 522 Retiree Health Adjustment $ - $ (25,509)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. $ - $ (250,226) Information Technology Fund 682 Retiree Health Adjustment $ - $ (20,698)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. Printing & Mailing Fund 683 Retiree Health Adjustment $ - $ (852)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. Vehicle Maintenance & Replacement Fund 681 Retiree Health Adjustment $ - $ (8,870)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. $ - $ (30,420) California Avenue Fund 237 Retiree Health Adjustment $ - $ (344)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. Residential Parking Permit (RPP) Fund 239 Retiree Health Adjustment $ - $ (866)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. University Avenue Fund 236 Retiree Health Adjustment $ - $ (1,446)Adjustment to allocated charges for retiree health to align with the most recent actuarial valuation. $ - $ (2,656) TOTAL ADJUSTMENT $ - $ (826,000) ENTERPRISE FUNDS SUBTOTAL INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS SUBTOTAL SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS SUBTOTAL Attachment A, Exhibit 4 page 6 ATTACHMENT A, EXHIBIT 4 Management (MGMT) Labor Concessions Fund Department/ Fund Title Revenue Expense Comments General Fund Administrative Services Salary and Benefits Adjustment $ - $ (370,960)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund City Attorney Salary and Benefits Adjustment $ - $ (176,811)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund City Auditor Salary and Benefits Adjustment $ - $ (49,365)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund City Clerk Salary and Benefits Adjustment $ - $ (39,026)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund City Manager Salary and Benefits Adjustment $ - $ (181,483)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund Community Services Salary and Benefits Adjustment $ - $ (255,557)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund Fire Salary and Benefits Adjustment $ - $ (121,211)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund Human Resources Salary and Benefits Adjustment $ - $ (209,272)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund Library Salary and Benefits Adjustment $ - $ (151,494)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund Office of Emergency Services Salary and Benefits Adjustment $ - $ (32,594)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund Office of Transportation Salary and Benefits Adjustment $ - $ (45,845)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund Planning and Development Services Salary and Benefits Adjustment $ - $ (295,070)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund Police Salary and Benefits Adjustment $ - $ (146,116)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. General Fund Public Works Salary and Benefits Adjustment $ - $ (183,143)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. - $ (2,257,948) Capital Improvement Fund 471 Salary and Benefits Adjustment $ - $ (166,769)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Cubberley Property Infrastructure Fund 472 Salary and Benefits Adjustment $ - $ (2,284)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. $ - $ (169,053) Airport Fund 530 Salary and Benefits Adjustment $ - $ (44,325)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Electric Fund 513 & 523 Salary and Benefits Adjustment $ - $ (20,043)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Gas Fund 514 & 524 Salary and Benefits Adjustment $ - $ (3,685)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Refuse Fund 525 Salary and Benefits Adjustment $ - $ (85,355)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET GENERAL FUND GENERAL FUND SUBTOTAL CAPITAL FUNDS CAPITAL FUNDS SUBTOTAL Attachment A, Exhibit 4 page 7 ATTACHMENT A, EXHIBIT 4 Management (MGMT) Labor Concessions Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET Storm Drainage Fund 528 Salary and Benefits Adjustment $ - $ (51,646)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Utilities Administration Fund 521 Salary and Benefits Adjustment $ - $ (124,380)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Wastewater Treatment Fund 526 Salary and Benefits Adjustment $ - $ (239,062)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Wastewater Collection Fund 527 Salary and Benefits Adjustment $ - $ (553)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Water Fund 522 Salary and Benefits Adjustment $ - $ (1,107)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. $ - $ (570,155) Information Technology Fund 682 Salary and Benefits Adjustment $ - $ (453,765)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Printing & Mailing Fund 683 Salary and Benefits Adjustment $ - $ (1,676)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Vehicle Maintenance & Replacement Fund 681 Salary and Benefits Adjustment $ - $ (47,357)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Workers' Compensation Fund 688 Salary and Benefits Adjustment $ - $ (13,635)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. $ - $ (516,433) California Avenue Fund 237 Salary and Benefits Adjustment $ - $ (3,782)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Public Art Fund 207 Salary and Benefits Adjustment $ - $ (12,774)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. Residential Parking Permit (RPP) Fund 239 Salary and Benefits Adjustment $ - $ (11,662)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. University Avenue Fund 236 Salary and Benefits Adjustment $ - $ (7,608)Adjustment to salary and benefits to align with Management labor concessions in FY 2021. $ - $ (35,827) TOTAL ADJUSTMENT $ - $ (3,549,416) ENTERPRISE FUNDS SUBTOTAL INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS SUBTOTAL SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS SUBTOTAL Attachment A, Exhibit 4 page 8 ATTACHMENT A, EXHIBIT 4: Technology Fund Department/ Fund Title Revenue Expense Comments General Fund Administrative Services Information Technology Adjustment $ - $ (67,928) Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund City Attorney Information Technology Adjustment $ - $ (18,817)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund City Auditor Information Technology Adjustment $ - $ (8,187)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund City Clerk Information Technology Adjustment $ - $ (10,624)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund City Council Information Technology Adjustment $ - $ (1,877)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund City Manager Information Technology Adjustment $ - $ (23,184)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund Community Services Information Technology Adjustment $ - $ (169,964)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund Fire Information Technology Adjustment $ - $ (241,227)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund Human Resources Information Technology Adjustment $ - $ (22,786)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund Library Information Technology Adjustment $ - $ (143,043)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund Office of Emergency Services Information Technology Adjustment $ - $ (24,502)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund Office of Transportation Information Technology Adjustment $ - $ (9,719)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund Planning and Development Services Information Technology Adjustment $ - $ (117,444)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund Police Information Technology Adjustment $ - $ (294,149)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. General Fund Public Works Information Technology Adjustment $ - $ (166,485)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. $ - $ (1,319,936) Airport Enterprise Fund 530 Information Technology Adjustment $ - $ (7,914)Adjustment to allocated charges for technology services to align with service reductions in FY 2021Refuse Fund 525 Information Technology Adjustment $ - $ (52,703)Adjustment to allocated charges for technology services to align with service reductions in FY 2021 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET GENERAL FUND GENERAL FUND SUBTOTAL ENTERPRISE FUNDS Attachment A, Exhibit 4 page 9 ATTACHMENT A, EXHIBIT 4: Technology Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET Stormwater Management Fund 528 Information Technology Adjustment $ - $ (37,461)Adjustment to allocated charges for technology services to align with service reductions in FY 2021Utilities Administration Fund 521 Information Technology Adjustment $ - $ (707,568)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. Wastewater Treatment Fund 526 Information Technology Adjustment $ - $ (208,829)Adjustment to allocated charges for technology services to align with service reductions in FY 2021 $ - $ (1,014,475) Printing & Mailing Services Fund 683 Information Technology Adjustment $ - $ (8,816)Adjustment to allocated charges for technology services to align with service reductions in FY 2021.Vehicle Replacement & Maintenance Fund 681 Information Technology Adjustment $ - $ (53,023)Adjustment to allocated charges for technology services to align with service reductions in FY 2021. $ - $ (61,839) TOTAL ADJUSTMENT $ - $ (2,396,250) ENTERPRISE FUNDS SUBTOTAL INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS SUBTOTAL Attachment A, Exhibit 4 page 10 ATTACHMENT A, EXHIBIT 4: Print & Mail Fund Department/ Fund Title Revenue Expense Comments General Fund Administrative Services Printing Services Reductions $ - $ (5,602) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund City Attorney Printing Services Reductions $ - $ (617) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund City Auditor Printing Services Reductions $ - $ (904) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund City Clerk Printing Services Reductions $ - $ (9,030) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund City Manager Printing Services Reductions $ - $ (1,785) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund Community Services Printing Services Reductions $ - $ (18,207) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund Fire Printing Services Reductions $ - $ (1,215) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund Human Resources Printing Services Reductions $ - $ (1,583) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund Library Printing Services Reductions $ - $ (3,765) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund Office of Emergency Services Printing Services Reductions $ - $ (809) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund Office of Transportation Printing Services Reductions $ - $ (654) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund Planning and Development Services Printing Services Reductions $ - $ (29,174) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund Police Printing Services Reductions $ - $ (9,684) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. General Fund Public Works Printing Services Reductions $ - $ (4,758) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. Stores Inventory Non- Departmental Printing Services Reductions $ - $ (374) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. $ - $ (88,161) Airport Enterprise Fund 530 Printing Services Reductions $ - $ (541) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. Electric Fund 513 & 523 Printing Services Reductions $ - $ (3,486) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET GENERAL FUND GENERAL FUND SUBTOTAL Attachment A, Exhibit 4 page 11 ATTACHMENT A, EXHIBIT 4: Print & Mail Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET Gas Fund 514 & 524 Printing Services Reductions $ - $ (2,101) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. Refuse Fund 525 Printing Services Reductions $ - $ (1,199) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. Stormwater Management Fund 528 Printing Services Reductions $ - $ (1,112) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. Utilities Administration Fund 521 Printing Services Reductions $ - $ (6,211) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. Wastewater Collection Fund 527 Printing Services Reductions $ - $ (250) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. Wastewater Treatment Fund 526 Printing Services Reductions $ - $ (2,614) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. Water Fund 522 Printing Services Reductions $ - $ (2,075) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. $ - $ (19,588) Information Technology Fund 682 Printing Services Reductions $ - $ (506) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. $ - $ (506) Residential Parking Permit Program 239 Printing Services Reductions $ - $ (297) Adjustment to allocated charges for printing services to align with service reductions in FY 2021. $ - $ (297) TOTAL ADJUSTMENT $ - $ (108,552) ENTERPRISE FUNDS SUBTOTAL INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS SUBTOTAL SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS SUBTOTAL Attachment A, Exhibit 4 page 12 ATTACHMENT A, EXHIBIT 4: Utilities Fund Department/ Fund Title Revenue Expense Comments General Fund Community Services Utilities Allocated Charges $- $ (155,400) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. General Fund Fire Utilities Allocated Charges $- $ (7,685) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. General Fund Library Utilities Allocated Charges $- $ (26,502) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. General Fund Planning and Development Services Utilities Allocated Charges $- $ (364) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. General Fund Police Utilities Allocated Charges $- $(5) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. General Fund Public Works Utilities Allocated Charges $- $ (63,762) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. $- $ (253,718) Capital Improvement Fund 471 Utilities Allocated Charges $- $ (12) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. $- $ (12) Airport Enterprise Fund 530 Utilities Allocated Charges $- $ (6,500) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. Electric Supply Fund 513 & 523 Utilities Allocated Charges $- $ (1,065) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. Gas Fund 514 & 524 Utilities Allocated Charges $- $ (48) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. Refuse Fund 525 Utilities Allocated Charges $- $ (1,865) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. Stormwater Management Fund 528 Utilities Allocated Charges $- $ (5,348) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. Utilities Administration Fund 521 Utilities Allocated Charges $- $ (7,589) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. Wastewater Collection Fund 527 Utilities Allocated Charges $- $ (87) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. Wastewater Treatment Fund 526 Utilities Allocated Charges $- $ (159,106) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. Water Fund 522 Utilities Allocated Charges $- $ (40,448) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. $- $ (222,057)ENTERPRISE FUNDS SUBTOTAL ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET GENERAL FUND GENERAL FUND SUBTOTAL CAPITAL FUNDS CAPITAL FUNDS SUBTOTAL Attachment A, Exhibit 4 page 13 ATTACHMENT A, EXHIBIT 4: Utilities Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET Information Technology Fund 682 Utilities Allocated Charges $- $ (997) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. Vehicle Replacement & Maintenance 681 Utilities Allocated Charges $- $ (7,529) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. $- $ (8,526) California Avenue Parking Permits 237 Utilities Allocated Charges $- $ (3,042) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. University Avenue Parking Permits 236 Utilities Allocated Charges $- $ (15,062) Adjustment to allocated charges for utilities in alignment with rates reductions in FY 2021. $- $ (18,104) TOTAL ADJUSTMENT $- $ (502,418) INTERNAL SERVICE FUNDS SUBTOTAL SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS SUBTOTAL Attachment A, Exhibit 4 page 14 INTERNAL SERVICE FUNDS ATTACHMENT A, EXHIBIT 4: Vehicle Fund Department/ Fund Title Revenue Expense Comments General Fund Administrative Services Vehicle Replacement Program Reductions $- $ (14,684) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. General Fund Community Services Vehicle Replacement Program Reductions $- $ (120,728) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. General Fund Planning and Development Services Vehicle Replacement Program Reductions $- $ (98,094) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. General Fund Fire Vehicle Replacement Program Reductions $- $ (627,587) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. General Fund Library Vehicle Replacement Program Reductions $- $ (758) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. General Fund Office of Emergency Services Vehicle Replacement Program Reductions $- $ (6,568) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. General Fund Police Vehicle Replacement Program Reductions $- $ (216,807) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. General Fund Public Works Vehicle Replacement Program Reductions $- $ (190,266) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. $- $ (1,275,491) Electric Fund 513 & 523 Vehicle Replacement Program Reductions $ (227,930) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021.Gas Fund 514 & 524 Vehicle Replacement Program Reductions $- $ (179,410) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. Refuse Fund 525 Vehicle Replacement Program Reductions $- $ (58,691) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. Stormwater Management Fund 528 Vehicle Replacement Program Reductions $- $ (89,839) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. Wastewater Collection Fund 527 Vehicle Replacement Program Reductions $- $ (117,130) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. Wastewater Treatment Fund 526 Vehicle Replacement Program Reductions $- $ (43,378) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. Water Fund 522 Vehicle Replacement Program Reductions $- $ (144,852) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. $- $ (861,230)ENTERPRISE FUNDS SUBTOTAL CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET GENERAL FUND GENERAL FUND SUBTOTAL ENTERPRISE FUNDS Attachment A, Exhibit 4 page 15 ATTACHMENT A, EXHIBIT 4: Vehicle Fund Department/ Fund Title Revenue Expense Comments CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2021 BUDGET Residential Parking Permit Program 239 Vehicle Replacement Program Reductions $- $ (1,307) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. $- $ (1,307) TOTAL ADJUSTMENT $- $ (2,142,660) SPECIAL REVENUE FUNDS SUBTOTAL Attachment A, Exhibit 4 page 16 Information Technology Fund 682 Vehicle Replacement Program Reductions $- $ (4,632) Adjustment to allocated charges for vehicle replacements to align with program reductions in FY 2021. $- $ (4,632) INTERNAL SERVICE FUNDS INTERNAL SERVICE FUNDS SUBTOTAL SPECIAL REVENUE FUNDS TABLE OF ORGANIZATION 1 TABLE OF ORGANIZATIONTable of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % General Fund Administrative Services Account Specialist 4.88 4.63 4.63 3.13 -1.50 (32.40)% Account Specialist (Freeze)0.00 0.00 0.00 1.50 1.50 0.00% Account Specialist-Lead 3.05 3.45 3.45 3.45 0.00 0.00% Accountant 3.00 3.00 3.00 3.00 0.00 0.00% Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate II 1.00 1.00 1.00 0.50 -0.50 (50.00)% Administrative Associate II (Freeze)0.00 0.00 0.00 0.50 0.50 0.00% Administrative Associate III 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Administrative Services 1.65 1.65 1.65 1.65 0.00 0.00% Buyer 1.00 1.00 1.00 1.00 0.00 0.00% Chief Procurement Officer 1.00 1.00 1.00 1.00 0.00 0.00% Contracts Administrator 2.70 2.70 2.70 2.30 -0.40 (14.81)% Contracts Administrator (Freeze)0.00 0.00 0.00 0.40 0.40 0.00% Director Administrative Services/CFO 0.80 0.80 0.80 0.80 0.00 0.00% Director Office of Management and Budget 1.00 1.00 1.00 0.00 -1.00 (100.00)% Director Office of Management and Budget (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Management Analyst 0.00 1.00 2.00 2.00 0.00 0.00% Manager Accounting 1.00 0.00 0.00 0.00 0.00 0.00% Manager Budget 1.00 2.00 2.00 2.00 0.00 0.00% Manager Real Property 1.00 1.00 1.00 1.00 0.00 0.00% Manager Revenue Collections 0.62 0.62 0.62 0.62 0.00 0.00% Manager Treasury, Debt & Investments 0.60 0.60 0.60 0.60 0.00 0.00% Manager, Finance 0.00 1.00 1.00 1.00 0.00 0.00% Payroll Analyst 2.00 2.00 2.00 2.00 0.00 0.00% Performance Auditor II (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Principal Management Analyst 0.00 0.00 0.00 0.00 0.00 0.00% Senior Accountant 3.00 3.00 3.00 3.00 0.00 0.00% Senior Buyer 1.00 1.00 1.00 1.00 0.00 0.00% Senior Management Analyst 4.90 2.30 2.30 2.30 0.00 0.00% Storekeeper 1.00 1.00 1.00 1.00 0.00 0.00% Storekeeper-Lead 0.20 0.20 0.20 0.20 0.00 0.00% Warehouse Supervisor 0.20 0.20 0.20 0.20 0.00 0.00% Total Administrative Services 38.60 38.15 39.15 40.15 1.00 2.55% City Attorney Assistant City Attorney 3.00 3.00 3.00 3.00 0.00 0.00% ATTACHMENT A, EXHIBIT 5 TABLE OF ORGANIZATION 2 Chief Assistant City Attorney 1.00 1.00 1.00 1.00 0.00 0.00% City Attorney 1.00 1.00 1.00 1.00 0.00 0.00% Claims Investigator 1.00 1.00 1.00 1.00 0.00 0.00% Deputy City Attorney 1.00 1.00 1.00 1.00 0.00 0.00% Legal Fellow 1.00 1.00 1.00 0.50 -0.50 (50.00)% Legal Fellow (Freeze)0.00 0.00 0.00 0.50 0.50 0.00% Principal Attorney 0.00 0.00 0.00 0.00 0.00 0.00% Secretary to City Attorney 1.00 1.00 1.00 1.00 0.00 0.00% Senior Assistant City Attorney 0.00 0.00 0.00 0.00 0.00 0.00% Senior Deputy City Attorney 0.00 0.00 0.00 0.00 0.00 0.00% Senior Legal Secretary 1.00 0.00 0.00 0.00 0.00 0.00% Senior Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Total City Attorney 11.00 10.00 10.00 10.00 0.00 0.00% City Auditor Administrative Assistant 0.00 0.00 0.00 0.00 0.00 0.00% City Auditor 1.00 1.00 1.00 1.00 0.00 0.00% Performance Auditor I 1.00 1.00 0.00 0.00 0.00 0.00% Performance Auditor II 1.00 1.00 2.00 0.00 -2.00 (100.00)% Senior Performance Auditor 2.00 1.00 1.00 2.00 1.00 100.00% Total City Auditor 5.00 4.00 4.00 3.00 -1.00 (25.00)% City Clerk Administrative Associate III 2.00 2.00 2.00 2.00 0.00 0.00% Assistant City Clerk 1.00 1.00 1.00 1.00 0.00 0.00% City Clerk 1.00 1.00 1.00 1.00 0.00 0.00% Deputy City Clerk 1.00 1.00 1.00 1.00 0.00 0.00% Hearing Officer 0.75 0.00 0.00 0.00 0.00 0.00% Total City Clerk 5.75 5.00 5.00 5.00 0.00 0.00% City Manager Administrative Assistant 1.00 1.00 2.00 2.00 0.00 0.00% Administrative Associate III 1.00 1.00 0.00 0.00 0.00 0.00% Assistant City Manager 0.00 0.00 1.00 1.00 0.00 0.00% Assistant City Manager/Utilities General Manager 0.25 0.25 0.00 0.00 0.00 0.00% Assistant to the City Manager 2.00 2.00 2.00 1.00 -1.00 (50.00)% Assistant to the City Manager (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Chief Communications Officer 1.00 1.00 1.00 1.00 0.00 0.00% Chief Sustainability Officer 1.00 1.00 0.00 0.00 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 3 City Manager 1.00 1.00 1.00 1.00 0.00 0.00% Deputy City Manager 2.00 2.00 1.00 1.00 0.00 0.00% Executive Assistant to the City Manager 1.00 1.00 1.00 1.00 0.00 0.00% Management Analyst 0.00 0.75 0.75 0.00 -0.75 (100.00)% Manager Communications 1.00 1.00 1.00 1.00 0.00 0.00% Manager Economic Development 0.00 0.00 0.00 0.00 0.00 0.00% Total City Manager 11.25 12.00 10.75 10.00 -0.75 (6.98)% Community Services Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate III 1.00 1.00 1.00 0.00 -1.00 (100.00)% Administrative Associate III (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Assistant Director Community Services 2.00 2.00 2.00 1.00 -1.00 (50.00)% Assistant Director Community Services (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Building Serviceperson 2.00 1.25 1.25 1.00 -0.25 (20.00)% Building Serviceperson-Lead 2.00 0.60 0.60 0.60 0.00 0.00% Coordinator Recreation Programs 4.00 3.00 4.00 4.00 0.00 0.00% Director Community Services 1.00 1.00 1.00 1.00 0.00 0.00% Division Manager Open Space, Parks and Golf 1.00 1.00 1.00 0.00 -1.00 (100.00)% Heavy Equipment Operator 0.07 0.07 0.07 0.07 0.00 0.00% Inspector, Field Services 2.00 2.00 2.00 2.00 0.00 0.00% Junior Museum & Zoo Educator 3.60 3.60 3.60 3.25 -0.35 (9.72)% Junior Museum & Zoo Educator (Freeze)0.00 0.00 0.00 0.35 0.35 0.00% Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Management Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Manager Community Services 5.00 5.00 5.00 4.00 -1.00 (20.00)% Manager Community Services (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Manager Community Services Senior Program 4.00 4.00 4.00 4.00 0.00 0.00% Manager Human Services 1.00 1.00 1.00 1.00 0.00 0.00% Park Maintenance Person 6.00 6.00 6.00 6.00 0.00 0.00% Park Maintenance-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Park Ranger 5.00 5.00 5.00 5.00 0.00 0.00% Parks/Golf Crew-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Producer Arts/Science Program 11.00 11.00 11.00 9.25 -1.75 (15.91)% Producer Arts/Science Program (Freeze)0.00 0.00 0.00 1.75 1.75 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 4 Producer Arts/Science Programs 0.00 0.00 0.00 1.00 1.00 0.00% Program Assistant I 8.00 8.00 8.00 3.00 -5.00 (62.50)% Program Assistant I (Freeze)0.00 0.00 0.00 4.00 4.00 0.00% Program Assistant II 4.00 4.00 3.00 4.00 1.00 33.33% Project Manager 0.10 0.10 0.10 0.10 0.00 0.00% Senior Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Sprinkler System Representative 4.00 4.00 4.00 4.00 0.00 0.00% Superintendent Community Services 2.00 2.00 2.00 2.00 0.00 0.00% Superintendent Recreation 1.00 1.00 1.00 0.00 -1.00 (100.00)% Superintendent Recreation (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Theater Specialist 2.00 2.00 2.00 2.00 0.00 0.00% Total Community Services 78.77 75.62 75.62 75.37 -0.25 (0.33)% Fire 40-Hour Training Battalion Chief 1.00 1.00 1.00 1.00 0.00 0.00% 40-Hour Training Captain 1.00 1.00 1.00 0.00 -1.00 (100.00)% 40-Hour Training Captain (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate II 2.00 2.20 2.20 1.20 -1.00 (45.45)% Administrative Associate II (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Battalion Chief 3.00 3.00 3.00 3.00 0.00 0.00% Business Analyst 0.80 0.80 0.80 0.80 0.00 0.00% Deputy Chief/Fire Marshal 0.05 0.05 0.05 0.05 0.00 0.00% Deputy Director Technical Services Division 0.20 0.20 0.20 0.00 -0.20 (100.00)% Deputy Director Technical Services Division (Freeze)0.00 0.00 0.00 0.20 0.20 0.00% Deputy Fire Chief 2.00 2.00 2.00 2.00 0.00 0.00% Emergency Medical Service Director 1.00 1.00 1.00 1.00 0.00 0.00% Emergency Medical Services Data Specialist 1.00 1.00 1.00 1.00 0.00 0.00% Fire Apparatus Operator 30.00 26.00 26.00 26.00 0.00 0.00% Fire Captain 21.00 21.00 21.00 21.00 0.00 0.00% Fire Chief 1.00 1.00 1.00 1.00 0.00 0.00% Fire Fighter 41.00 34.00 34.00 29.00 -5.00 (14.71)% Fire Fighter (Freeze)0.00 0.00 0.00 5.00 5.00 0.00% Fire Inspector 0.80 0.80 0.80 0.40 -0.40 (50.00)% Fire Inspector (Freeze)0.00 0.00 0.00 0.40 0.40 0.00% Geographic Information System Specialist 0.50 0.50 0.50 0.50 0.00 0.00% Hazardous Materials Inspector 0.30 0.30 0.30 0.30 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 5 Police Chief 0.00 0.00 0.00 0.00 0.00 0.00% Senior Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Total Fire 108.65 97.85 97.85 97.85 0.00 0.00% Human Resources Administrative Assistant 0.00 0.00 0.00 0.00 0.00 0.00% Assistant Director Human Resources 1.00 1.00 1.00 1.00 0.00 0.00% Director Human Resources/CPO 1.00 1.00 1.00 1.00 0.00 0.00% Human Resources Representative 3.00 3.00 3.00 2.50 -0.50 (16.67)% Human Resources Representative (Freeze)0.00 0.00 0.00 0.50 0.50 0.00% Human Resources Technician 4.00 4.00 4.00 3.50 -0.50 (12.50)% Human Resources Technician (Freeze)0.00 0.00 0.00 0.50 0.50 0.00% Manager Employee Benefits 1.00 1.00 1.00 1.00 0.00 0.00% Manager Employee Relations 1.00 1.00 1.00 1.00 0.00 0.00% Senior Human Resources Administrator 3.00 3.00 3.00 3.00 0.00 0.00% Senior Management Analyst 2.00 2.00 2.00 2.00 0.00 0.00% Total Human Resources 16.00 16.00 16.00 16.00 0.00 0.00% Library Administrative Associate III 1.00 1.00 1.00 0.00 -1.00 (100.00)% Administrative Associate III (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Assistant Director Library Services 1.00 1.00 1.00 0.00 -1.00 (100.00)% Assistant Director Library Services (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Business Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Coordinator Library Programs 1.00 1.00 1.00 1.00 0.00 0.00% Director Libraries 1.00 1.00 1.00 1.00 0.00 0.00% Division Head Library Services 1.00 1.00 1.00 1.00 0.00 0.00% Librarian 7.00 7.00 6.00 6.00 0.00 0.00% Library Associate 7.00 7.00 7.00 6.00 -1.00 (14.29)% Library Associate (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Library Specialist 12.50 11.50 11.50 10.50 -1.00 (8.70)% Library Specialist (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Manager Library Services 4.00 4.00 3.00 3.00 0.00 0.00% Senior Librarian 9.00 9.00 8.00 6.00 -2.00 (25.00)% Senior Librarian (Freeze)0.00 0.00 0.00 2.00 2.00 0.00% Supervising Librarian 2.00 2.00 4.00 4.00 0.00 0.00% Total Library 48.50 47.50 46.50 46.50 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 6 Office of Emergency Services Director Office of Emergency Services 1.00 1.00 1.00 1.00 0.00 0.00% Office of Emergency Services Coordinator 1.00 1.00 1.00 1.00 0.00 0.00% Program Assistant II 1.00 1.00 1.00 0.00 -1.00 (100.00)% Program Assistant II (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Total Office of Emergency Services 3.00 3.00 3.00 3.00 0.00 0.00% Office of Transportationb Administrative Assistant 0.00 0.00 0.50 0.50 0.00 0.00% Associate Engineer 0.00 0.00 0.30 0.30 0.00 0.00% Associate Planner 0.00 0.00 0.30 0.45 0.15 50.00% Chief Transportation Official 0.00 0.00 0.70 0.70 0.00 0.00% Coordinator Transportation Systems Management 0.00 0.00 1.25 1.25 0.00 0.00% Management Analyst 0.00 0.00 0.50 0.50 0.00 0.00% Project Engineer 0.00 0.00 0.45 0.45 0.00 0.00% Senior Engineer 0.00 0.00 0.20 0.20 0.00 0.00% Senior Planner 0.00 0.00 0.50 0.50 0.00 0.00% Traffic Engineering-Lead 0.00 0.00 0.35 0.35 0.00 0.00% Transportation Planning Manager 0.00 0.00 1.15 1.15 0.00 0.00% Total Office of Transportation 0.00 0.00 6.20 6.35 0.15 2.42% Planning and Community Environmentc Administrative Assistant 2.00 2.00 1.00 1.00 0.00 0.00% Administrative Associate I 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate II 3.00 2.80 2.80 2.80 0.00 0.00% Administrative Associate III 4.00 3.59 4.00 4.00 0.00 0.00% Assistant Chief Building Official 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director PCE 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Public Works 0.00 0.00 0.00 0.00 0.00 0.00% Associate Engineer 0.75 0.67 0.22 0.20 -0.02 (9.09)% Associate Planner 1.00 3.27 3.15 3.00 -0.15 (4.76)% Building Inspector Specialist 4.00 4.00 4.00 6.00 2.00 50.00% Building/Planning Technician 3.00 3.00 3.00 2.00 -1.00 (33.33)% Building/Planning Technician (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Business Analyst 1.00 1.00 0.00 0.00 0.00 0.00% Chief Building Official 1.00 1.00 1.00 1.00 0.00 0.00% Chief Planning Official 1.00 1.00 1.00 1.00 0.00 0.00% Chief Transportation Official 0.43 0.64 0.00 0.00 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 7 Code Enforcement Officer 2.00 2.00 2.00 0.00 -2.00 (100.00)% Code Enforcement Officer (Freeze)0.00 0.00 0.00 2.00 2.00 0.00% Code Enforcement-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Coordinator Transportation Systems Management 0.88 0.74 0.00 0.00 0.00 0.00% Deputy Chief/Fire Marshal 0.80 0.80 0.80 0.80 0.00 0.00% Development Project Coordinator II 2.00 2.00 2.00 2.00 0.00 0.00% Development Project Coordinator III 3.00 3.00 3.00 3.00 0.00 0.00% Development Services Director 1.00 1.00 0.00 0.00 0.00 0.00% Director Planning/Community Environment 1.00 1.00 1.00 1.00 0.00 0.00% Engineer 0.64 0.64 0.64 0.52 -0.12 (18.75)% Engineering Technician III 1.78 1.78 1.78 1.50 -0.28 (15.73)% Fire Inspector 3.20 3.20 3.20 1.60 -1.60 (50.00)% Fire Inspector (Freeze)0.00 0.00 0.00 1.60 1.60 0.00% Hazardous Materials Inspector 1.60 1.60 1.60 1.60 0.00 0.00% Industrial Waste Inspector 0.01 0.01 0.01 0.00 -0.01 (100.00)% Industrial Waste Investigator 0.35 0.35 0.35 0.35 0.00 0.00% Inspector, Field Services 0.68 0.68 0.68 0.68 0.00 0.00% Landscape Architect Park Planner 0.00 0.50 0.50 0.50 0.00 0.00% Management Analyst 1.99 1.81 0.01 0.00 -0.01 (100.00)% Manager Development Center 1.00 1.00 0.00 0.00 0.00 0.00% Manager Environmental Control Program 0.10 0.10 0.10 0.00 -0.10 (100.00)% Manager Planning 4.00 3.00 5.00 4.00 -1.00 (20.00)% Manager Urban Forestry 0.04 0.04 0.04 0.00 -0.04 (100.00)% Parking Operations-Lead 0.00 0.10 0.00 0.00 0.00 0.00% Planner 4.00 4.00 4.00 4.00 0.00 0.00% Planning Arborist 0.29 0.00 0.00 0.00 0.00 0.00% Planning Division Manager 0.00 1.00 0.00 0.00 0.00 0.00% Principal Management Analyst 0.00 0.00 1.00 0.00 -1.00 (100.00)% Principal Planner 0.00 1.00 2.00 1.00 -1.00 (50.00)% Principal Planner (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Program Assistant I 1.00 1.00 1.00 0.00 -1.00 (100.00)% Program Assistant I (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Program Assistant II 0.60 0.00 0.00 0.00 0.00 0.00% Project Engineer 0.53 0.83 0.13 0.10 -0.03 (23.08)% Senior Business Analyst 0.00 0.00 1.00 1.00 0.00 0.00% Senior Engineer 0.46 0.46 0.46 0.40 -0.06 (13.04)% Senior Industrial Waste Investigator 0.01 0.01 0.01 0.00 -0.01 (100.00)% Senior Management Analyst 2.00 1.88 2.00 2.00 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 8 Senior Planner 6.75 3.88 3.60 2.60 -1.00 (27.78)% Senior Planner (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Supervisor Inspection and Surveying 0.27 0.27 0.27 0.25 -0.02 (7.41)% Traffic Engineering-Lead 0.38 0.65 0.10 0.10 0.00 0.00% Transportation Planning Manager 0.20 0.41 0.00 0.00 0.00 0.00% Total Planning and Community Environment 66.74 66.71 62.45 61.60 -0.85 -1.36% Police Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate II 3.00 3.00 3.00 2.00 -1.00 (33.33)% Administrative Associate II (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Animal Control Officer 3.00 3.00 3.00 2.00 -1.00 (33.33)% Animal Control Officer (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Animal Control Officer-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Animal Services Specialist II 2.00 2.00 0.00 0.00 0.00 0.00% Assistant Police Chief 1.00 1.00 1.00 1.00 0.00 0.00% Business Analyst 1.20 1.20 1.20 1.20 0.00 0.00% Code Enforcement Officer 1.00 1.00 1.00 1.00 0.00 0.00% Communications Manager 1.00 1.00 1.00 0.00 -1.00 (100.00)% Communications Manager (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Communications Technician 1.00 1.00 1.00 0.00 -1.00 (100.00)% Communications Technician (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Community Service Officer 7.50 7.50 7.50 5.63 -1.87 (24.93)% Community Service Officer (Freeze)0.00 0.00 0.00 1.87 1.87 0.00% Court Liaison Officer 1.00 1.00 1.00 1.00 0.00 0.00% Crime Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Deputy Director Technical Services Division 0.80 0.80 0.80 0.00 -0.80 (100.00)% Deputy Director Technical Services Division (Freeze)0.00 0.00 0.00 0.80 0.80 0.00% Geographic Information System Specialist 0.50 0.50 0.50 0.50 0.00 0.00% Police Agent 19.00 19.00 19.00 19.00 0.00 0.00% Police Captain 2.00 2.00 2.00 2.00 0.00 0.00% Police Chief 1.00 1.00 1.00 1.00 0.00 0.00% Police Lieutenant 5.00 5.00 5.00 4.00 -1.00 (20.00)% Police Lieutenant (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Police Officer 50.00 50.00 50.00 39.00 -11.00 (22.00)% Police Officer (Freeze)0.00 0.00 0.00 11.00 11.00 0.00% Police Records Specialist II 6.00 6.00 6.00 6.00 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 9 Police Records Specialist-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Police Sergeant 14.00 14.00 14.00 14.00 0.00 0.00% Program Assistant II 1.00 1.00 1.00 1.00 0.00 0.00% Property Evidence Technician 2.00 2.00 2.00 2.00 0.00 0.00% Public Safety Communications Manager 1.00 1.00 1.00 0.00 -1.00 (100.00)% Public Safety Communications Manager (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Public Safety Dispatcher 16.00 16.00 16.00 12.00 -4.00 (25.00)% Public Safety Dispatcher (Freeze)0.00 0.00 0.00 4.00 4.00 0.00% Public Safety Dispatcher-Lead 4.00 4.00 4.00 4.00 0.00 0.00% Public Safety Program Manager 2.00 2.00 2.00 2.00 0.00 0.00% Senior Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Superintendent Animal Services 1.00 1.00 0.00 0.00 0.00 0.00% Veterinarian 1.00 1.00 0.00 0.00 0.00 0.00% Veterinarian Technician 2.00 2.00 0.00 0.00 0.00 0.00% Total Police 155.00 155.00 149.00 149.00 0.00 0.00% Public Works Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate I 0.60 0.60 0.10 0.10 0.00 0.00% Administrative Associate II 2.65 2.65 2.65 2.65 0.00 0.00% Administrative Associate III 0.01 0.01 0.01 0.01 0.00 0.00% Assistant Director Public Works 0.87 0.87 0.73 0.73 0.00 0.00% Associate Engineer 0.30 0.30 0.00 0.00 0.00 0.00% Building Serviceperson 1.00 0.00 0.00 0.00 0.00 0.00% Building Serviceperson-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Cement Finisher 3.00 2.00 2.00 2.00 0.00 0.00% Cement Finisher-Lead 0.26 0.26 0.26 0.26 0.00 0.00% Coordinator Public Works Projects 1.50 1.50 1.50 1.50 0.00 0.00% Director Public Works/City Engineer 1.00 1.00 1.00 1.00 0.00 0.00% Electrician 0.80 0.80 0.80 0.80 0.00 0.00% Engineer 0.66 0.66 0.36 0.48 0.12 33.33% Engineering Technician III 1.47 1.47 1.47 1.75 0.28 19.05% Equipment Operator 3.46 2.46 2.46 2.46 0.00 0.00% Facilities Carpenter 1.00 1.00 1.00 1.00 0.00 0.00% Facilities Maintenance-Lead 1.85 1.85 1.85 1.85 0.00 0.00% Facilities Painter 1.75 1.75 1.75 1.75 0.00 0.00% Facilities Technician 4.05 4.05 4.05 4.05 0.00 0.00% Heavy Equipment Operator 2.33 2.33 2.33 2.33 0.00 0.00% Heavy Equipment Operator-Lead 0.85 0.85 0.85 0.85 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 10 Inspector, Field Services 0.11 0.11 0.11 0.11 0.00 0.00% Landscape Architect Park Planner 0.10 0.60 0.60 0.60 0.00 0.00% Management Analyst 0.70 0.70 0.70 1.45 0.75 107.14% Manager Facilities 0.90 0.90 0.90 0.90 0.00 0.00% Manager Maintenance Operations 1.20 1.20 1.20 1.20 0.00 0.00% Manager Urban Forestry 0.96 0.96 0.96 1.00 0.04 4.17% Manager Watershed Protection 0.05 0.05 0.05 0.05 0.00 0.00% Planning Arborist 0.71 0.00 0.00 0.00 0.00 0.00% Project Engineer 0.50 0.50 0.00 0.00 0.00 0.00% Project Manager 2.65 2.65 2.65 2.00 -0.65 (24.53)% Project Manager (Freeze)0.00 0.00 0.00 0.65 0.65 0.00% Senior Engineer 0.79 0.79 0.59 0.60 0.01 1.69% Senior Management Analyst 1.11 1.11 1.11 1.11 0.00 0.00% Senior Project Manager 0.10 0.10 0.00 0.00 0.00 0.00% Supervisor Inspection and Surveying 0.10 0.10 0.10 0.10 0.00 0.00% Surveyor, Public Works 0.33 0.33 0.33 0.33 0.00 0.00% Traffic Controller Maintainer I 1.94 1.94 1.94 1.94 0.00 0.00% Traffic Controller Maintainer II 2.00 2.00 2.00 2.00 0.00 0.00% Tree Maintenance Person 1.00 1.00 1.00 1.00 0.00 0.00% Tree Trim/Line Clear 7.00 7.00 7.00 7.00 0.00 0.00% Tree Trim/Line Clear-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Total Public Works 54.66 51.45 49.41 50.61 1.20 2.43% Total General Fund 602.92 582.28 574.93 574.43 -0.50 -0.09% Enterprise Fund Public Works Account Specialist 0.30 0.30 0.30 0.30 0.00 0.00% Accountant 0.40 0.40 0.40 0.40 0.00 0.00% Administrative Associate I 0.10 0.10 0.10 0.10 0.00 0.00% Administrative Associate II 2.15 2.15 2.15 2.15 0.00 0.00% Administrative Associate III 0.10 0.10 0.10 0.10 0.00 0.00% Assistant Director Public Works 1.30 1.30 1.30 1.30 0.00 0.00% Assistant Manager WQCP 2.00 2.00 2.00 2.00 0.00 0.00% Associate Engineer 2.99 2.99 2.99 3.00 0.01 0.33% Chemist 3.00 3.00 3.00 3.00 0.00 0.00% Deputy Chief/Fire Marshal 0.07 0.07 0.07 0.07 0.00 0.00% Electrician 3.00 3.00 3.00 3.00 0.00 0.00% Electrician-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Engineer 0.90 0.90 0.90 0.90 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 11 Engineering Technician III 0.25 0.25 0.25 0.25 0.00 0.00% Environmental Specialist 2.00 2.00 2.00 2.00 0.00 0.00% Equipment Operator 0.54 0.54 0.54 0.54 0.00 0.00% Facilities Maintenance Lead 1.00 1.00 1.00 1.00 0.00 0.00% Facilities Technician 1.50 1.50 1.50 1.50 0.00 0.00% Hazardous Materials Inspector 0.04 0.04 0.04 0.04 0.00 0.00% Heavy Equipment Operator 0.90 0.90 0.90 0.90 0.00 0.00% Heavy Equipment Operator-Lead 1.15 1.15 1.15 1.15 0.00 0.00% Industrial Waste Inspector 2.99 2.99 2.99 3.00 0.01 0.33% Industrial Waste Investigator 1.15 1.15 1.15 1.15 0.00 0.00% Laboratory Technician WQC 3.00 3.00 3.00 3.00 0.00 0.00% Landfill Technician 1.00 1.00 1.00 1.00 0.00 0.00% Management Analyst 2.30 2.30 2.30 2.30 0.00 0.00% Manager Airport 1.00 1.00 1.00 1.00 0.00 0.00% Manager Environmental Control Program 4.90 4.90 4.90 5.00 0.10 2.04% Manager Laboratory Services 1.00 1.00 1.00 1.00 0.00 0.00% Manager Maintenance Operations 1.96 1.96 1.96 1.96 0.00 0.00% Manager Solid Waste 1.00 1.00 1.00 1.00 0.00 0.00% Manager Water Quality Control Plant 1.00 1.00 1.00 1.00 0.00 0.00% Manager Watershed Protection 0.95 0.95 0.95 0.95 0.00 0.00% Plant Mechanic 7.00 7.00 7.00 7.00 0.00 0.00% Program Assistant I 1.00 1.00 1.00 1.00 0.00 0.00% Program Assistant II 2.00 2.00 2.00 2.00 0.00 0.00% Project Engineer 1.83 1.83 1.83 1.83 0.00 0.00% Project Manager 1.35 1.35 1.35 1.35 0.00 0.00% Senior Accountant 0.30 0.30 0.30 0.30 0.00 0.00% Senior Buyer 1.00 1.00 1.00 1.00 0.00 0.00% Senior Chemist 1.00 1.00 1.00 1.00 0.00 0.00% Senior Engineer 3.76 3.76 3.76 3.76 0.00 0.00% Senior Industrial Waste Investigator 0.99 0.99 0.99 1.00 0.01 1.01% Senior Management Analyst 0.21 0.21 0.21 0.21 0.00 0.00% Senior Mechanic 1.00 1.00 1.00 1.00 0.00 0.00% Senior Operator WQC 6.00 6.00 6.00 6.00 0.00 0.00% Senior Technologist 1.00 1.00 1.00 1.00 0.00 0.00% Storekeeper 1.00 1.00 1.00 1.00 0.00 0.00% Street Maintenance Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Street Sweeper Operator 1.63 1.63 1.63 1.63 0.00 0.00% Supervisor WQCP Operations 3.00 3.00 3.00 3.00 0.00 0.00% Surveyor, Public Works 0.12 0.12 0.12 0.12 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 12 Technologist 1.00 1.00 1.00 1.00 0.00 0.00% Traffic Controller Maintainer I 0.06 0.06 0.06 0.06 0.00 0.00% WQC Plant Operator II 16.00 16.00 16.00 16.00 0.00 0.00% Zero Waste Coordinator 1.00 1.00 1.00 1.00 0.00 0.00% Total Public Works 101.19 101.19 101.19 101.32 0.13 0.13% Utilities Account Specialist 1.70 1.70 1.70 1.70 0.00 0.00% Accountant 0.60 0.60 0.60 0.60 0.00 0.00% Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Administrative Associate II 7.00 7.00 6.00 6.00 0.00 0.00% Assistant City Manager/Utilities General Manager 0.75 0.75 0.00 0.00 0.00 0.00% Assistant Director Administrative Services 0.25 0.25 0.25 0.25 0.00 0.00% Assistant Director Utilities Customer Support Services 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Utilities Engineering 1.00 1.00 1.00 0.00 -1.00 (100.00)% Assistant Director Utilities Engineering (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Assistant Director Utilities Operations 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Utilities/Resource Management 1.00 1.00 1.00 1.00 0.00 0.00% Business Analyst 7.00 6.00 6.00 5.00 -1.00 (16.67)% Business Analyst (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Cathodic Protection Technician Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Cathodic Technician 1.00 1.00 1.00 1.00 0.00 0.00% Cement Finisher 2.00 2.00 2.00 2.00 0.00 0.00% Contracts Administrator 0.70 0.70 0.70 0.70 0.00 0.00% Coordinator Utilities Projects 6.00 6.00 6.00 6.00 0.00 0.00% Customer Service Representative 7.00 7.00 7.00 7.00 0.00 0.00% Customer Service Specialist 2.00 2.00 2.00 2.00 0.00 0.00% Customer Service Specialist-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Deputy Chief/Fire Marshal 0.08 0.08 0.08 0.08 0.00 0.00% Deputy City Attorney 1.00 1.00 1.00 1.00 0.00 0.00% Director Administrative Services/CFO 0.20 0.20 0.20 0.20 0.00 0.00% Electric Heavy Equipment Operator 0.00 0.00 0.00 2.00 2.00 0.00% Electric Project Engineer 2.00 2.00 4.00 4.00 0.00 0.00% Electric Underground Inspector 2.00 2.00 2.00 2.00 0.00 0.00% Electric Underground Inspector-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Electrical Equipment Technician 1.00 1.00 1.00 1.00 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 13 Electrician Assistant I 3.00 3.00 3.00 3.00 0.00 0.00% Engineer 4.00 4.00 4.00 4.00 0.00 0.00% Engineering Manager - Electric 1.00 1.00 1.00 1.00 0.00 0.00% Engineering Manager - WGW 1.00 1.00 1.00 1.00 0.00 0.00% Engineering Technician III 3.00 3.00 3.00 3.00 0.00 0.00% Gas and Water Meter Measurement and Control Technician 4.00 4.00 4.00 4.00 0.00 0.00% Gas and Water Meter Measurement and Control Technician - Lead 1.00 1.00 1.00 1.00 0.00 0.00% Hazardous Materials Inspector 0.06 0.06 0.06 0.06 0.00 0.00% Heavy Equipment Operator 6.70 6.70 6.70 0.00 -6.70 (100.00)% Heavy Equipment Operator - Install/ Repair 4.00 4.00 4.00 4.00 0.00 0.00% Industrial Waste Investigator 0.50 0.50 0.50 0.50 0.00 0.00% Inspector, Field Services 5.00 5.00 5.00 5.00 0.00 0.00% Lineperson/Cable Specialist 11.00 11.00 11.00 10.00 -1.00 (9.09)% Lineperson/Cable Specialist-Lead 4.00 4.00 4.00 4.00 0.00 0.00% Maintenance Mechanic-Welding 2.00 2.00 2.00 2.00 0.00 0.00% Manager Communications 1.00 1.00 1.00 1.00 0.00 0.00% Manager Customer Service 1.00 1.00 1.00 1.00 0.00 0.00% Manager Electric Operations 1.00 1.00 1.00 1.00 0.00 0.00% Manager Treasury, Debt & Investments 0.40 0.40 0.40 0.40 0.00 0.00% Manager Utilities Compliance 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Credit & Collection 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Operations WGW 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Program Services 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Strategic Business 1.00 1.00 1.00 1.00 0.00 0.00% Manager Utilities Telecommunications 1.00 1.00 1.00 1.00 0.00 0.00% Meter Reader 6.00 6.00 6.00 6.00 0.00 0.00% Meter Reader-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Metering Technician 3.00 3.00 3.00 3.00 0.00 0.00% Metering Technician-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Offset Equipment Operator 0.48 0.48 0.48 0.48 0.00 0.00% Overhead Underground Troubleman 2.00 2.00 2.00 2.00 0.00 0.00% Power Engineer 3.00 3.00 1.00 1.00 0.00 0.00% Principal Business Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Program Assistant I 1.50 1.50 1.50 1.50 0.00 0.00% Program Assistant II 0.00 0.00 1.00 1.00 0.00 0.00% Project Engineer 5.00 5.00 5.00 5.00 0.00 0.00% Project Manager 0.75 0.75 0.75 0.75 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 14 Resource Planner 6.00 6.00 5.00 5.00 0.00 0.00% Restoration Lead 1.00 1.00 1.00 1.00 0.00 0.00% SCADA Technologist 2.00 2.00 2.00 2.00 0.00 0.00% Senior Accountant 0.70 0.70 0.70 0.70 0.00 0.00% Senior Business Analyst 2.00 3.00 3.00 3.00 0.00 0.00% Senior Electrical Engineer 4.00 4.00 4.00 4.00 0.00 0.00% Senior Engineer 5.00 5.00 5.00 5.00 0.00 0.00% Senior Management Analyst 0.70 0.70 0.70 0.70 0.00 0.00% Senior Mechanic 1.00 1.00 1.00 1.00 0.00 0.00% Senior Performance Auditor 1.00 1.00 1.00 1.00 0.00 0.00% Senior Resource Planner 6.00 6.00 6.50 6.50 0.00 0.00% Senior Utilities Field Service Representative 1.00 1.00 1.00 1.00 0.00 0.00% Senior Water Systems Operator 2.00 2.00 2.00 2.00 0.00 0.00% Storekeeper 1.00 1.00 1.00 1.00 0.00 0.00% Storekeeper-Lead 0.80 0.80 0.80 0.80 0.00 0.00% Street Light, Traffic Signal & Fiber Technician 5.00 5.00 5.00 5.00 0.00 0.00% Street Light, Traffic Signal & Fiber-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Substation Electrician 6.00 6.00 6.00 5.00 -1.00 (16.67)% Substation Electrician (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Substation Electrician-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Supervising Electric Project Engineer 1.00 1.00 1.00 1.00 0.00 0.00% Tree Maintenance Person 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Chief Operating Officer 1.00 1.00 1.00 0.00 -1.00 (100.00)% Utilities Chief Operating Officer (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Utilities Compliance Technician 2.00 2.00 2.00 3.00 1.00 50.00% Utilities Compliance Technician-Lead 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Credit/Collection Specialist 2.00 2.00 2.00 2.00 0.00 0.00% Utilities Director 0.00 0.00 1.00 1.00 0.00 0.00% Utilities Engineer Estimator 5.00 5.00 5.00 5.00 0.00 0.00% Utilities Field Services Representative 5.00 5.00 5.00 5.00 0.00 0.00% Utilities Install Repair-Lead-Welding Certified 2.00 2.00 2.00 2.00 0.00 0.00% Utilities Install Repair-Welding Certified 3.00 3.00 3.00 3.00 0.00 0.00% Utilities Install/Repair 10.00 10.00 10.00 10.00 0.00 0.00% Utilities Install/Repair Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Install/Repair-Lead 5.00 5.00 5.00 5.00 0.00 0.00% Utilities Key Account Representative 3.00 3.00 3.00 3.00 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 15 Utilities Locator 3.00 3.00 3.00 3.00 0.00 0.00% Utilities Marketing Program Administrator 3.00 3.00 4.00 4.00 0.00 0.00% Utilities Safety Officer 1.00 1.00 1.00 1.00 0.00 0.00% Utilities Supervisor 12.00 12.00 12.00 11.00 -1.00 (8.33)% Utilities Supervisor (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Utilities System Operator 5.00 5.00 5.00 5.00 0.00 0.00% Utility Engineering Estimator - Lead 1.00 1.00 1.00 1.00 0.00 0.00% Warehouse Supervisor 0.80 0.80 0.80 0.80 0.00 0.00% Water System Operator II 4.00 4.00 4.00 4.00 0.00 0.00% WGW Heavy Equipment Operator 0.00 0.00 0.00 4.70 4.70 0.00% Total Utilities 256.67 256.67 257.42 257.42 0.00 0.00% Total Enterprise Fund 357.86 357.86 358.61 358.74 0.13 0.04% Other Funds Capital Project Fund Administrative Assistant 0.00 0.00 0.15 0.15 0.00 0.00% Administrative Associate I 0.80 0.80 0.80 0.80 0.00 0.00% Administrative Associate III 0.89 1.09 0.89 0.89 0.00 0.00% Assistant Director Public Works 0.58 0.58 0.72 0.72 0.00 0.00% Associate Engineer 2.96 3.04 2.50 1.50 -1.00 (40.00)% Associate Engineer (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Associate Planner 0.00 0.31 0.30 0.30 0.00 0.00% Building Serviceperson 0.00 0.75 0.75 1.00 0.25 33.33% Building Serviceperson-Lead 0.00 1.40 1.40 1.40 0.00 0.00% Cement Finisher-Lead 0.74 0.74 0.74 0.74 0.00 0.00% Chief Transportation Official 0.52 0.36 0.30 0.30 0.00 0.00% Contracts Administrator 0.60 0.60 0.60 0.60 0.00 0.00% Coordinator Public Works Projects 1.30 1.30 1.30 1.30 0.00 0.00% Coordinator Transportation Systems Management 0.62 0.76 0.75 0.75 0.00 0.00% Engineer 2.80 2.80 3.10 2.10 -1.00 (32.26)% Engineer (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Engineering Technician III 0.50 0.50 0.50 0.50 0.00 0.00% Facilities Technician 1.50 1.50 1.50 1.50 0.00 0.00% Inspector, Field Services 1.21 1.21 1.21 1.21 0.00 0.00% Landscape Architect Park Planner 0.90 0.90 0.90 0.90 0.00 0.00% Management Analyst 0.79 0.82 0.94 0.95 0.01 1.06% Manager Facilities 0.10 0.10 0.10 0.10 0.00 0.00% Manager Maintenance Operations 0.65 0.65 0.65 0.65 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 16 Parking Operations-Lead 1.00 0.35 0.40 0.40 0.00 0.00% Program Assistant II 0.40 0.00 0.00 0.00 0.00 0.00% Project Engineer 7.14 6.84 7.59 7.62 0.03 0.40% Project Manager 1.15 1.15 1.15 0.80 -0.35 (30.43)% Project Manager (Freeze)0.00 0.00 0.00 0.35 0.35 0.00% Senior Engineer 1.99 1.99 2.99 4.04 1.05 35.12% Senior Management Analyst 0.60 0.72 0.60 0.60 0.00 0.00% Senior Planner 0.85 0.72 0.50 0.50 0.00 0.00% Senior Project Manager 0.90 0.90 1.00 0.00 -1.00 (100.00)% Supervisor Inspection and Surveying 0.63 0.63 0.63 0.65 0.02 3.17% Surveyor, Public Works 0.55 0.55 0.55 0.55 0.00 0.00% Traffic Engineering-Lead 0.62 0.35 0.55 0.55 0.00 0.00% Transportation Planning Manager 0.50 0.35 0.35 0.35 0.00 0.00% Total Capital Project Fund 33.79 34.76 36.40 36.77 0.37 1.02% Printing and Mailing Services Manager Revenue Collections 0.10 0.10 0.10 0.10 0.00 0.00% Offset Equipment Operator 1.52 1.52 1.52 1.52 0.00 0.00% Total Printing and Mailing Services 1.62 1.62 1.62 1.62 0.00 0.00% Special Revenue Funds Account Specialist 1.62 1.87 1.87 1.37 -0.50 (26.74)% Account Specialist (Freeze)0.00 0.00 0.00 0.50 0.50 0.00% Account Specialist-Lead 0.95 0.55 0.55 0.55 0.00 0.00% Administrative Assistant 0.00 0.00 0.35 0.35 0.00 0.00% Administrative Associate II 0.20 0.20 0.20 0.20 0.00 0.00% Administrative Associate III 0.00 0.21 0.00 0.00 0.00 0.00% Associate Planner 0.00 0.42 0.25 0.25 0.00 0.00% Chief Transportation Official 0.05 0.00 0.00 0.00 0.00 0.00% Community Service Officer 0.50 0.50 0.50 0.37 -0.13 (26.00)% Community Service Officer (Freeze)0.00 0.00 0.00 0.13 0.13 0.00% Coordinator Public Works Projects 0.20 0.20 0.20 0.20 0.00 0.00% Electrician 0.20 0.20 0.20 0.20 0.00 0.00% Facilities Maintenance-Lead 0.15 0.15 0.15 0.15 0.00 0.00% Facilities Painter 0.25 0.25 0.25 0.25 0.00 0.00% Facilities Technician 0.45 0.45 0.45 0.45 0.00 0.00% Management Analyst 0.02 0.17 0.35 0.35 0.00 0.00% Manager Community Services Senior Program 1.00 1.00 1.00 1.00 0.00 0.00% Manager Maintenance Operations 0.19 0.19 0.19 0.19 0.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 17 Manager Revenue Collections 0.28 0.28 0.28 0.28 0.00 0.00% Parking Operations-Lead 0.00 0.55 0.60 0.60 0.00 0.00% Senior Planner 0.40 0.40 0.40 0.40 0.00 0.00% Street Maintenance Assistant 2.00 2.00 2.00 2.00 0.00 0.00% Street Sweeper Operator 0.37 0.37 0.37 0.37 0.00 0.00% Transportation Planning Manager 0.30 0.24 0.50 0.50 0.00 0.00% Total Special Revenue Funds 9.13 10.20 10.66 10.66 0.00 0.00% Technology Fund Administrative Assistant 1.00 1.00 1.00 1.00 0.00 0.00% Assistant Director Administrative Services 0.10 0.10 0.10 0.10 0.00 0.00% Business Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Desktop Technician 6.00 6.00 6.00 6.00 0.00 0.00% Director Information Technology/CIO 1.00 1.00 1.00 0.00 -1.00 (100.00)% Director Information Technology/CIO (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Manager Information Technology 4.00 3.00 3.00 3.00 0.00 0.00% Manager Information Technology Security 1.00 1.00 1.00 1.00 0.00 0.00% Principal Business Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Senior Business Analyst 2.00 2.00 2.00 2.00 0.00 0.00% Senior Management Analyst 1.00 1.00 1.00 1.00 0.00 0.00% Senior Technologist 17.00 18.00 18.00 16.00 -2.00 (11.11)% Senior Technologist (Freeze)0.00 0.00 0.00 2.00 2.00 0.00% Technologist 1.00 1.00 1.00 0.00 -1.00 (100.00)% Technologist (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Total Technology Fund 36.10 36.10 36.10 36.10 0.00 0.00% Vehicle Replacement and Maintenance Fund Administrative Associate III 1.00 1.00 0.00 0.00 0.00 0.00% Assistant Director Public Works 0.25 0.25 0.25 0.25 0.00 0.00% Assistant Fleet Manager 1.00 1.00 1.00 1.00 0.00 0.00% Equipment Maintenance Service Person 2.00 2.00 2.00 2.00 0.00 0.00% Fleet Services Coordinator 2.00 2.00 1.00 1.00 0.00 0.00% Management Analyst 0.20 0.20 0.20 0.20 0.00 0.00% Management Assistant 0.00 0.00 1.00 1.00 0.00 0.00% Manager Fleet 1.00 1.00 1.00 1.00 0.00 0.00% Motor Equipment Mechanic II 6.00 6.00 6.00 5.00 -1.00 (16.67)% Motor Equipment Mechanic II (Freeze)0.00 0.00 0.00 1.00 1.00 0.00% Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % TABLE OF ORGANIZATION 18 Motor Equipment Mechanic-Lead 2.00 2.00 2.00 2.00 0.00 0.00% Project Manager 1.00 1.00 1.00 1.00 0.00 0.00% Senior Management Analyst 0.08 0.08 0.08 0.08 0.00 0.00% Total Vehicle Replacement and Maintenance Fund 16.53 16.53 15.53 15.53 0.00 0.00% Workers’ Compensation Program Fund Senior Human Resources Administrator 1.00 1.00 1.00 1.00 0.00 0.00% Total Workers’ Compensation Program Fund 1.00 1.00 1.00 1.00 0.00 0.00% Total Other Funds 98.17 100.21 101.31 101.68 0.37 0.37% Total Citywide Positions 1,058.95 1,040.35 1,034.85 1,034.85 0.00 0.00% a. The Table of Organization includes position freezes recommended in the FY 2021 Adopted Oper- ating Budget memo (CMR 11330). These positions have been de-funded in FY 2021 and are identified in the Table of Organization with “(Freeze)” following the job classification title. Job classifications im- pacted by freezes are summarized in two rows, one to reflect the total FTE authorized (less freezes), and one to reflect the total FTE freezes. b. The Office of Transportation was created within the City Manager’s Office in FY 2020 through the reallocation of staff and resources from the Planning and Development Services Department (previ- ously the Planning and Community Environment Department). For demonstrative purposes, prior years in the Office of Transportation have been restated to include Transportation staff. c. The Planning and Development Services Department was established in FY 2020 through the merg- ing of the Development Services Department and the Planning and Community Environment Depart- ment and the reallocation of resources to create a dedicated Office of Transportation within the City Manager’s Office. For demonstrative purposes, prior years have been restated to include staffing of the prior Development Services Department and the Planning and Community Environment Depart- ment. Table of Organizationa FY 2018 Actuals FY 2019 Actuals FY 2020 Adopted Budget FY 2021 Adopted Budget FY 2021 Change FTE FY 2021 Change % Attachment A, Exhibit 6 Municipal Fee Changes for FY 2021 New Fees New Fees Department Fee Title Justification Cost Recovery  Level Community Services Deworming $20.00 per pet High Community Services Rescue Group (Non‐Profit) ‐ Dog Spay/Neuter (under 50 lbs) $75.00 per pet High Community Services Rescue Group (Non‐Profit) ‐ Dog Spay/Neuter (over 50 lbs) $100.00 per pet High Community Services Ticketed Admission Fee $2.00 ‐ $24.00 per person High  Community Services Family Membership $150.00 ‐ $430.00 each High Community Services Teen Center Membership Fee $10.00 per month Low Community Services Dawn Redwood Courtyard Resident Fee: $250.00 per hour; Non‐Resident Fee: $325.00 per hour High Community Services Multi‐use Room Resident Fee: $120.00 per hour; Non‐Resident Fee: $180.00 per hour High Community Services Indoor Classroom Resident Fee: $96.00 per hour; Non‐Resident Fee: $105.00 per hour High Community Services Outdoor Classroom Resident Fee: $120.00 per hour; Non‐Resident Fee: $180.00 per hour High Community Services Art Studio Short Term Resident Fee: $89.00 per week; Non‐Resident Fee: $99.00 per week High Community Services Package Rental ‐ Adobe North Tech Lab and South Meeting Room Resident Fee: $209.00 per hour; Non‐Resident Fee: $312.00 per hour High Library Mitchell Park Library Community Room ‐ Full Day Rental Resident Fee: $324.00 per day; Non‐Resident Fee: $485.00 per day High Library Rinconada Library Community Room ‐ Full Day Rental Resident Fee: $469.00 per day; Non‐Resident Fee: $702.00 per day High Library Room Cleaning & Damage Deposit $300.00 ‐ $3,000.00 per deposit High Library Room Cleaning Fee ‐ Add on $80.00 ‐ $500.00 per event High Library Room Rental Furniture damage Cost of repair or replacement per item High Library Photography/Filming ‐Space rental fee $100.00 ‐ $2,000.00 per session High Public Works Home Improvement Exception ‐ Trees $737.00 per application High Page 1 of 4 Attachment A, Exhibit 6 Municipal Fee Changes for FY 2021 Deleted Fees Deleted Fees Department Fee Title Justification Community Services Rescue Group (Non‐Profit) ‐ Dog Spay/Neuter This service is no longer provided.  Community Services Dance Parties This service is no longer provided. Community Services Card Replacement Fee This service is no longer provided. Community Services Open Space & Parks Special Use Permit This service is no longer provided.  Community Services Science Lab 2 This service is no longer provided. Community Services Science Lab Rental This service is no longer provided. Community Services Other Rooms This service is no longer provided. Community Services Zoo This service is no longer provided. Community Services Package Rental ‐ Weddings (Saturday & Sunday) This service is no longer provided.  Community Services Upright Piano This service is no longer provided . Community Services A. Art Studio Short Term, Quarter Studio This service is no longer provided. Community Services B. Art Studio Short Term, Half Studio This service is no longer provided. Community Services C. Art Studio Short Term, Whole Studio This service is no longer provided. Community Services Teen Center This service is no longer provided. Community Services Cleaning Package ‐ Add On (Mitchell Park Only) This service is no longer provided. Library Overdue Materials ‐ Adult Fines for adult overdue materials will no longer be collected.  Planning and Development Services Construction/Maintenance Vehicles Parking Space Permit Duplicate fee; Loss of Parking Space fee is available for the same  purpose. Public Works Grease Waste Disposal This service is no longer provided. Page 2 of 4 Attachment A, Exhibit 6 Municipal Fee Changes for FY 2021 Changed Fees Administrative Services Department Fee Title FY 2020 Adopted FY 2021 Proposed % Change Justification Revenue Collection‐Documents and Photocopies: Mailing (Certified) $3.50 each $3.55 each 1.43% Changed to align with postal rate Community Services Department Fee Title FY 2020 Adopted FY 2021 Proposed % Change Justification Rabbits $10.00 per pet $40.00 per pet 300.00% Rescue Group (Non‐Profit) ‐ Cat Spay/Neuter $55.00 per pet $50.00 per pet ‐9.09% JMZ ‐ Science School and Group Programs Resident Fee: $132.00 ‐ $349.00 per program; Non‐ Resident Fee: Fee plus up to 50% Resident Fee: $147.00 ‐ $390.00 per program; Non‐ Resident Fee: Fee plus up to 50% 11.50% JMZ ‐ Science Child and Family Programs Resident Fee: $28.00 ‐ $389.00 per program; Non‐Resident  Fee: Fee plus up to 50% Resident Fee: $28.00 ‐ $660.00 per program; Non‐Resident  Fee: Fee plus up to 50% 34.83% JMZ ‐ Group Admission $5.00 per child $2.00 ‐ $10.00 per person Range Package Rental ‐ All Available Space Resident Fee: $582.00 per hour; Non‐Resident Fee:  $873.00 per hour Resident Fee: $750.00 per hour; Non‐Resident Fee:  $1,125.00 per hour 28.87% Exhibit Hall Rental Resident Fee: $233.00 per hour; Non‐Resident Fee:  $350.00 per hour Resident Fee: $295.00 per hour; Non‐Resident Fee:  $442.00 per hour 26.45% Administration Fee Per Registration $0.00 ‐ $29.00 each $0.00 ‐ $50.00 each 72.40%Council‐approved May 26, 2020 (CMR  11376) Library Department Fee Title FY 2020 Adopted FY 2021 Proposed % Change Justification Mitchell Park Library Community Room Resident Fee: $94.00 per hour; Non‐Resident Fee: $140.00  per hour Resident Fee: $65.00 per hour; Non‐Resident Fee: $97.00  per hour ‐30.78% Rinconada Library Community Room Resident Fee: $140.00 per hour; Non‐Resident Fee:  $210.00 per hour Resident Fee: $94.00 per hour; Non‐Resident Fee: $140.00  per hour ‐33.10% Office of Transportation Fee Title FY 2020 Adopted FY 2021 Proposed % Change Justification Downtown RPP ‐ Annual Resident Parking Permit $50.00 each, first permit free $50.00 each 0.00% Evergreen Park ‐ Mayfield RPP ‐ Annual Resident Parking Permit $50.00 each, first permit free $50.00 each 0.00% Southgate RPP ‐ Annual Residential Parking Permit $50.00 each, first permit free* $50.00 each 0.00% Evergreen Park ‐ Mayfield RPP Reduced‐Price Employee Parking  Permit $25.00 each $50.00 each 100.00% Evergreen Park ‐ Mayfield RPP Full Price Employee Parking Permit $201.00 each $310.00 each 54.23% Southgate RPP ‐ Full Price Employee Parking Permit $201.00 each $310.00 each 54.23% California Avenue Area All Garages and Lots Annual Parking Permit $403.00 per year $620.00 per year 53.85% Shelter operator recommendation Department recommendation to align with  the proposal to reopen the JMZ in Fiscal  Year 2021 Aligned with CSD's El Palo Alto room per sq  foot cost, General Rate of Increase also  applied Standardizing prices of all employee  permits offered by the City Council‐approved change in policy on May  13, 2020  *This was part of a pilot program at the  time the FY20 Adopted book was printed Page 3 of 4 Attachment A, Exhibit 6 Municipal Fee Changes for FY 2021 Changed Fees Planning and Development Services Fee Title FY 2020 Adopted FY 2021 Proposed % Change Justification A. 101 ‐ 1,000 cubic yards $213.00 for the first 100 cubic yards, plus $213.00 for each  additional 100 cubic yards or fraction thereof $218.00 for the first 100 cubic yards, plus $218.00 for each  additional 100 cubic yards or fraction thereof 2.35% B. 1,001 ‐ 10,000 cubic yards $2,130.00 for the first 1,000 cubic yards plus $199.00 for  each additional 1,000 cubic yards or fraction thereof $2,180.00 for the first 1,000 cubic yards plus $205.00 for  each additional 1,000 cubic yards or fraction thereof 2.35% C. 10,001 or more cubic yards $4,120.00 for the first 10,000 cubic yards plus $771.00 for  each additional 10,000 cubic yard or fraction thereof $4,230.00 for the first 10,000 cubic yards plus $798.00 for  each additional 10,000 cubic yard or fraction thereof 2.67% Tree Inspection for Private Development $162.00 per inspection $161.00 per inspection ‐0.62% A. Dumpster, Container $331.00 each $344.00 each 3.93% B. Non‐Residential ‐ Single Day $1,339.00 each $1,385.00 each 3.44% C. Non‐Residential Short‐Term (Less than 5 days) $1,570.00 each $1,619.00 each 3.12% D. Non‐Residential Long‐Term (More than 5 days) $2,177.00 each $2,226.00 each 2.25% Wet Season Construction Site Stormwater Inspection $308.00 per inspection plus $101.00 per hour thereafter,  charged monthly October thru April. $309.00 per inspection plus $101.00 per hour thereafter,  charged monthly October thru April. 0.32% Architectural Review ‐ Minor Project Trees (ARB Review) $1,223.00 per application $1,189.00 per application ‐2.78% Architectural Review ‐ Minor Project Trees (Staff Review) $244.00 per hour $229.00 per hour ‐6.15% 1. Temporary Discharge to Storm Drain from Non‐Exclusionary  Construction Site Dewatering $15,593.00 each $15,710.00 each 0.75% 2. Additional Temporary Discharge to Storm Drain from Non‐ Exclusionary Construction Site Dewatering $341.00 per week for the duration of dewatering activities $345.00 per week for the duration of dewatering activities 1.17% A. Construction in Public Right‐of‐Way ($1.00 ‐ $5,999) $751.00 per occurrence $721.00 per occurrence ‐3.99% B. Construction in Public Right‐of‐Way ($6,000 ‐ $25,999) $751.00 + 9.4% of value greater than $6,000.00 $741.00 + 9.3% of value greater than $6,000.00 ‐1.33% C. Construction in Public Right‐of‐Way ($26,000 ‐ $100,999) $2,631.00 + 11.5% of value greater than $26,000.00 $2,581.00 + 11.8% of value greater than $26,000.00 ‐1.90% D. Construction in Public Right‐of‐Way ($101,000 +) $11,265.00 + 9.6% of value greater than $100,000.00 $11,431.00 + 9.3% of value greater than $100,000.00 1.47% Right of Way Closure Management $87.00 each $89.00 each 2.30% Storm Drain Plan Check Fee $1,017.00 each $1,043.00 each 2.56% Public Works fees were analyzed, and  proposed fees reflect the maintainenance  of cost‐recovery levels. Page 4 of 4 CITY OF PALO ALTO RETIREE HEALTHCARE PLAN June 30, 2019 Actuarial Valuation Contributions for 2020/21 & 2021/22 Final Results Prepared by Mary Beth Redding, Vice President & Actuary Deanna Van Valer, Assistant Vice President & Actuary Joseph Herm, Actuarial Analyst Michelle Shen, Actuarial Analyst Bartel Associates, LLC June 12, 2020 CONTENTS O:\Clients\City of Palo Alto\Projects\OPEB\2019 Val\Reports\BA PaloAltoCi 20-06-12 OPEB 6-30-19 Final Results.docx Topic Page Benefit Summary 1 Implied Subsidy 7 Participant Statistics 9 Actuarial Assumptions Highlights 15 Actuarial Methods 19 Assets 21 Results 23 Results - Details 37 Sensitivity Analysis 46 Actuarial Certification 51 Exhibits 53 Attachment B June 12, 2020 1 BENEFIT SUMMARY  Eligibility  Retire directly from the City under CalPERS (age 501 and 5 years of CalPERS service or disability)  Medical Provider  CalPERS health plans (PEMHCA)  CalPERS administrative fees paid by City  Retiree Medical Benefit for Current Retirees: Hired < 1/1/04 (1/1/05 SEIU, 1/1/06 PAPOA) & Did Not Elect into Group 4  GROUP 1: Retired < 1/1/07 (3/1/09 for PAPOA) • Benefit = Full premium up to family coverage  GROUP 2: Retired after GROUP 1 and before 5/1/11 (12/1/11 IAFF/FCA, 6/1/12 PMA, 4/1/15 POA) • Benefit = Same as above but premium limited to 2nd most expensive Basic (non-Medicare) medical plan in the Bay Area Region/Region 1 (Anthem Traditional in 2019, PERSCare in 2020)  GROUP 3: Retired after GROUP 2 • Benefit = same amount as active employees, which may change from time to time and in the future as bargaining agreements change (valuation assumes no future changes to active benefits) 1 Age 52 for Miscellaneous New Hires under PEPRA June 12, 2020 2 BENEFIT SUMMARY  Retiree Medical Benefit for Current Actives: Hired < 1/1/04 (1/1/05 SEIU, 1/1/06 PAPOA) & Did Not Elect into Group 4  GROUP 3: Currently active and did not elect into Group 4 • No active Group 3 POA, PMA, IAFF or FCA • Only remaining Group 3 actives in MGMT, SEIU, UMPAPA • Benefit = up to full premium, but limited to flat dollar caps same as active contribution Mgmt/Conf UMPAPA SEIU All Groups 2019 2019 2019 2020 Single $ 837 $ 840 $ 804 $ 840 2-Party 1,671 1,680 1,606 1,680 Family 2,172 2,180 2,088 2,180 For SEIU only, the 2021 cap will be increased at 50% of the average of increase to Kaiser and PERS Choice June 12, 2020 3 BENEFIT SUMMARY  Retiree Medical Benefit for those: Hired ≥ 1/1/04 (1/1/05 SEIU, 1/1/06 PAPOA) & Employees Hired Before These Dates Electing into Group 42  GROUP 4: Government Code §22893 “Vesting Schedule” (based on all CalPERS Service)3: Years of Service % Years of Service % < 10 0% 13 65% 10 50% 14 70% 11 55% ↓ ↓ 12 60% > 20 100%  100% vesting for disability retirements  Vesting applies to 100/90 formula amounts, which are the maximum amounts payable by the City (retirees pay any difference between these amounts and actual premiums): 2018 2019 2020 Single $ 725 $ 734 $ 767 2-Party 1,377 1,398 1,461 Family 1,766 1,788 1,868  If have 20 years City service do not need to retire directly from City 2 All currently active POA/PMA, IAFF/FCA are Group 4. Some Mgmt/Conf and some SEIU remained in Group 3, and some elected into Group 4. 3 Minimum 5 years City Service. June 12, 2020 4 BENEFIT SUMMARY  Dental, Vision & Medicare Part B  None  Surviving Spouse Benefit  100% of retiree benefit continues to surviving spouse if retiree elects CalPERS pension survivor allowance  Waived Re- election  Waived retirees/beneficiaries may re-elect coverage at a future date  Summary of Changes Since the Prior Valuation  Updates for 2019 and 2020 to the active contribution amounts, which affect the GROUP 3 benefits (current actives and current retirees). • Changes to flat dollar amounts, amounts for 2019 differ slightly by bargaining unit • Prior UMPAPA benefit: 90% of premium up to 90% of Group 2 cap • Updated UMPAPA benefit: flat dollar caps similar to SEIU and Mgmt/Conf June 12, 2020 5 BENEFIT SUMMARY  Pay-As-You- Go ($000s) Fiscal Year Cash Implied Subsidy Total 2018/19 $ 9,960 $ 2,197 $ 12,157 2017/18 9,660 2,444 12,104 2016/17 9,713 2,203 11,916 2015/16 9,681 1,960 11,641 2014/15 8,995 1,916 10,911 2013/14 7,317 - 7,317 2012/13 8,766 - 8,766 2011/12 8,165 - 8,165 2010/11 6,216 - 6,216 2009/10 5,519 - 5,519 June 12, 2020 6 BENEFIT SUMMARY Monthly Benefit Cap Amounts 2019 2020 Group Single 2-Party Family Single 2-Party Family Group 14 $1,131.68 $2,263.36 $2,942.37 $1,184.84 $2,369.68 $3,080.58 Group 2 1,111.13 2,222.26 2,888.94 1,133.14 2,266.28 2,946.16 Group 3 SEIU 804.00 1,606.00 2,088.00 804.00 1,680.00 2,180.00 Group 3 MGMT 837.00 1,671.00 2,172.00 804.00 1,680.00 2,180.00 Group 3 UMPAPA 840.00 1,680.00 2,180.00 804.00 1,680.00 2,180.00 Group 4 (100% vest) 734.00 1,398.00 1,788.00 767.00 1,461.00 1,868.00 % Decrease from Group 1 (assumes Group 1 is in most expensive plan) Group 2 2% 2% 2% 4% 4% 4% Group 3 SEIU 29% 29% 29% 32% 29% 29% Group 3 MGMT 26% 26% 26% 32% 29% 29% Group 3 UMPAPA 26% 26% 26% 32% 29% 29% Group 4 35% 38% 39% 35% 38% 39% 4 No cap for Group 1. Amount shown is most expensive Non-Medicare Bay Area/Region 1 premium. June 12, 2020 7 IMPLIED SUBSIDY  For PEMHCA, employer cost for allowing retirees to participate at active rates. • Kaiser 2020 Region 1 plan:  The City included the implied subsidy beginning with the June 30, 2013 valuation. 25 30 35 40 45 50 55 60 64 65 70 75 80 85 Premium 768 768 768 768 768 768 768 768 768 339 339 339 339 339 Male Cost by Age 281 310 358 423 512 642 849 1,071 1,194 308 328 345 362 396 Female Cost by Age 492 555 607 670 745 839 988 1,122 1,198 309 327 344 361 395 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 June 12, 2020 8 IMPLIED SUBSIDY This page intentionally blank June 12, 2020 9 PARTICIPANT STATISTICS Participant Statistics 5 Includes 68 waived retirees over 65. 6 Excludes all waived retirees over 65; includes 38 waived under 65 retirees. 7 Excludes all waived retirees, regardless of age. 8 All retirements included. Disability retirement data unreliable. 6/30/11 6/30/13 6/30/15 6/30/17 6/30/19  Actives • Count 923 948 955 967 930 • Average Age 44.7 45.2 45.3 45.6 44.8 • Average City Service 10.8 10.8 10.8 10.9 10.8 • Average PERS Service 13.7 11.7 11.9 11.9 11.7 • Average Salary $86,007 $86,271 $91,714 $90,739 $110,969 • Total Salary (000’s) $79,384 $81,785 $87,586 $87,745 $103,201  Retirees: • Count 860 968 1,0075 9596 9747 • Average Age 67.0 68.2 68.9 68.9 70.0 • Average Retirement Age o Service 55.58 57.8 57.7 57.7 58.0 o Disability n/a 45.3 45.6 45.9 46.1 June 12, 2020 10 PARTICIPANT STATISTICS Historical Active and Retiree Counts9 9 Retiree count is subscribers: retirees and surviving spouses 6/30/09 6/30/11 6/30/13 6/30/15 6/30/17 6/30/19 Active 955 923 948 955 967 930 Retired 710 860 968 1,007 959 974 43%48% 50% 51% 50%51% 57%52% 50% 49% 50%49% - 500 1,000 1,500 2,000 2,500 June 12, 2020 11 PARTICIPANT STATISTICS Participant Statistics June 30, 2019 10 Actual 2018/19 PERSable compensation. 11 Excludes retirees who have waived coverage, regardless of age. Group 1 Group 2 Group 3 Group 4 Total  Actives • Count n/a n/a 92 838 930 • Average Age n/a n/a 54.2 43.8 44.8 • Average Entry Age n/a n/a 32.7 35.9 34.5 • Average City Service n/a n/a 21.4 9.7 10.8 • Average PERS Service n/a n/a 21.9 10.6 11.7 • Average Salary n/a n/a $108,291 $111,263 $110,969 • Total Salary (000’s)10 n/a n/a $9,963 $93,238 $103,201  Benefitting Retirees11: • Count 458 292 128 96 974 • Average Age 76.3 66.7 62.4 60.3 70.0 • Avg Service Ret Age 57.6 57.8 58.8 59.2 58.0 • Avg Disability Ret Age 45.5 47.0 51.2 47.1 46.1 June 12, 2020 12 PARTICIPANT STATISTICS Participant Statistics June 30, 2017 12 Includes 38 retirees who have waived coverage and are under age 65. Excludes waived retirees over age 65. Group 1 Group 2 Group 3 Group 4 Total  Actives • Count n/a n/a 133 834 967 • Average Age n/a n/a 53.1 44.4 45.6 • Average Entry Age n/a n/a 32.8 33.9 33.7 • Average City Service n/a n/a 20.0 9.4 10.9 • Average PERS Service n/a n/a 20.3 10.6 11.9 • Average Salary n/a n/a $90,623 $90,757 $90,739 • Total Salary (000’s) n/a n/a $12,053 $75,692 $87,745  Retirees12: • Count 500 302 117 40 959 • Average Age 74.5 64.6 60.3 57.1 68.9 • Avg Service Ret Age 57.6 57.8 58.2 56.9 57.7 • Avg Disability Ret Age 45.6 46.4 49.1 44.3 45.9 June 12, 2020 13 PARTICIPANT STATISTICS Data Reconciliation 6/30/2017 to 6/30/2019 Actives Retirees Disabled Benefic. Total  June 30, 2017 967 716 171 72 1,926 • New Hires/Rehires 157 - - - 157 • Disabled (1) - 1 - - • Terminated13 (93) - - - (93) • Died with Benefic.14 - (5) (1)6 - • Died, no Beneficiary - (18) (11) (7) (36) • Retired/covered (90) 90 - - - • Retired/waived (10) - - - (10) • Waived Retiree15 - (31) (10) (4) (45) • Adjustment/Other - 2 1 2 5  June 30, 2019 930 754 151 69 1,904 13 All actives in June 30, 2017 valuation and not in June 30, 2019 valuation assumed terminated. 14 Retirees in the June 30, 2017 valuation not in the June 30, 2019 valuation assumed deceased. 15 Retiree count as of June 30, 2017 valuation included waived retirees <65. June 12, 2020 14 PARTICIPANT STATISTICS This page intentionally blank June 12, 2020 15 ACTUARIAL ASSUMPTIONS HIGHLIGHTS June 30, 2017 Valuation June 30, 2019 Valuation  Valuation Date  June 30, 2017  ADC for Fiscal Years 2018/19 & 2019/20 (end of year)  1 year lag  June 30, 2019  ADC for Fiscal Years 2020/21 & 2021/22 (end of year)  1 year lag  Funding Policy  Full Pre-funding through CalPERS trust (CERBT) Strategy #1  Same  Discount Rate  6.75%, net of expenses based on CERBT Strategy #1  Same  Medical Trend  Non-Medicare: 7.5% for 2019, decreasing to an ultimate rate of 4.0% in 2076  Medicare: 6.5% for 2019, decreasing to an ultimate rate of 4.0% in 2076  Non-Medicare: 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076  Medicare: 6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076 June 12, 2020 16 ACTUARIAL ASSUMPTIONS HIGHLIGHTS June 30, 2017 Valuation June 30, 2019 Valuation  Increase to Group 3 Flat Dollar Caps  ½ of Medical Trend, not less than assumed inflation (2.75%)16  Same  Participation at Retirement  Groups 3 & 4: 90%  Based on Plan experience  Group 3: 98%  Group 4: if eligible for City contribution: 95%; if not: 0%  Based on Plan experience17 16 Increase is for purposes of financial projection only and does not imply any obligation to increase the cap in the future. 17 Actual participation percentage for Group 3 since 6/30/17 is 100% Miscellaneous. Note there are no active Safety members in Group 3. Actual participation percentages for Group 4 since 6/30/17 are 83% Miscellaneous and 92% Safety, or 84% overall. Actual participation for Group 3 and Group 4 since 6/30/17 is 88% overall. Group 4 still has limited actual experience. We recommend continued monitoring for Group 4. June 12, 2020 17 ACTUARIAL ASSUMPTIONS HIGHLIGHTS June 30, 2017 Valuation June 30, 2019 Valuation  Retirement, Mortality, Termination, Disability  CalPERS 1997-2015 Experience Study for all but Mortality  Mortality – CalPERS 1997- 2011 Experience Study, and Society of Actuaries mortality improvement scale MP-17  CalPERS 1997-2015 Experience Study  Update to most recent Society of Actuaries mortality improvement scale MP-19  ACA Excise Tax  Estimate by 2% load on cash subsidy  Remove load due to December 2019 repeal of Excise Tax18 18 Note for GASBS 75 purposes, the Total OPEB Liability as of Measurement Date (MD) 6/30/19 will include a 2% load, as legislation passed after the MD may not be taken into account. June 12, 2020 18 ACTUARIAL ASSUMPTIONS HIGHLIGHTS June 30, 2017 Valuation June 30, 2019 Valuation  Basis for Assumptions (6/30/19 Valuation)  No experience study performed for this Plan  CalPERS December 2017 experience study covering 1997 to 2015 experience was used  Mortality improvement: most recent Society of Actuaries scale  Inflation based on the Plan’s very long time horizon  Short-term medical trend developed in consultation with Axene Health Partners’ healthcare actuaries. Long-term medical trend developed using Society of Actuaries’ Getzen Model of Long-Run Medical Cost Trends  Age-based claims are based on factors developed by Axene Health Partners’ healthcare actuaries and demographic data from CalPERS.  Participation and coverage based in part on Plan experience  Capital market assumptions for the recommended discount rate are based on our study of investment advisor 10-year 2017 capital market assumptions adjusted in some cases to reflect anticipated long-term trends June 12, 2020 19 ACTUARIAL METHODS Method June 30, 2017 Valuation June 30, 2019 Valuation  Cost Method  Entry Age Normal Level % of Pay  Same  Unfunded Liability Amortization  26 years closed period  Level % of pay (3% annual escalation)  Sensitivity analysis: 24 & 20 years  24 years closed period  Level % of pay (3% annual escalation)  Sensitivity analysis: 22 & 20 years  Actuarial Asset Value  Market Value of Assets19  Same  Future New Entrants  Closed group – no new participants  Implied Subsidy  Implied subsidy valued  Plan Continuance  For purposes of financial projections, the plan and benefits are assumed to continue unchanged. The calculation of this obligation does not imply that there is any legal liability to provide or continue providing the benefits valued. 19 Using Market Value of Assets to determine the ADC will result in more volatile future ADCs than if a smoothed Market Value were used. June 12, 2020 20 ACTUARIAL METHODS This page intentionally blank June 12, 2020 21 ASSETS Market Value of Plan Assets – CERBT #1 (Amounts in 000’s) Audited 2015/16 Audited 2016/17 2017/1820 2018/19 Proj 2019/2021  MVA (Beg. of Year) $ 78,578 $ 79,843 $ 91,170 $ 107,846 $ 118,497 • Audit Adjustment22 (1,972) - - - • Contributions 2,351 2,823 9,212 5,723 16,482 • Benefit Payments23 - - - (1,883) (12,642) • Admin. Expenses (37) (44) (50) (53) (62) • Investment Return24 924 8,628 7,513 6,864 12,535  MVA (End of Year) 79,843 91,250 107,846 118,497 134,810  Approx. Annual Return 1.1% 10.4% 7.8% 6.3% 10.5% 20 Taken from CERBT quarterly statements. Audited asset balances at 6/30/18 and 6/30/19 are $107,809,741 and $118,478,415 respectively. 21 Projected from actual 12/31/2019 CERBT balance (unaudited) using assumed rate of return for last half of fiscal year. 22 Backs out accrued contribution in July 2015 for $2,047,517 and $75,658 for adjustments made by CalPERS auditors. 23 Benefit Payments made outside of trust by City for years before 2018/19. Refer to Slide 5 for fiscal year amounts. 24 Net of investment expenses. June 12, 2020 22 ASSETS Historical Returns25 25 Projected return for 2019/20 uses actual investment return (unaudited) for first half of fiscal year and assumed rate of return for last half of fiscal year 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 Proj 19/20 MVA -22.5% 15.1% 24.4% 0.1% 11.2% 18.2% -0.2% 1.1% 10.4% 7.8% 6.3% 10.5% Expected Return 7.75% 7.75% 7.75% 7.75% 7.75% 7.75% 7.61% 7.25% 7.25% 6.75% 6.75% 6.75% (30%) (20%) (10%) 0% 10% 20% 30% June 12, 2020 23 RESULTS Actuarial Obligations (Amounts in 000’s) 6/30/17 Valuation 6/30/19 Valuation 6/30/17 Proj 6/30/18 6/30/19 Proj.6/30/20  Discount Rate 6.75%6.75%  Present Value of Benefits • Actives (future retirees) $ 141,887 $ 141,423 • Retirees 160,927 159,156 • Total 302,814 300,579  Actuarial Accrued Liability • Actives (future retirees) 83,832 82,313 • Retirees 160,927 159,156 • Total 244,759 $ 255,795 241,469 $ 251,389  Actuarial Value of Assets(MV) 91,250 111,869 118,497 134,810  Unfunded AAL 153,509 143,926 122,972 116,579  Funded Ratio 37% 44% 49% 54%  Normal Cost26 7,081 6,978  Pay-As-You-Go Cost (Cash)10,274 10,859  Pay-As-You-Go Cost (IS)2,197 2,346 26 Includes Administration fees. June 12, 2020 24 RESULTS Historical Funded Status (Amounts in 000’s) 24%27% 29% 33%37% 49% $0 $50,000 $100,000 $150,000 $200,000 $250,000 1/1/11 6/30/11 6/30/13 6/30/15 6/30/17 6/30/19 Retiree pay-go Retiree AAL less pay-go Active AAL MVA (xx% Funded Ratio) June 12, 2020 25 RESULTS Actuarial Gain/Loss (Amounts in $000’s) AAL (MVA) UAAL  Actual 6/30/17 projected to 6/30/18 $ 255,795 $ (111,869) $ 143,926  Expected 6/30/20 279,189 (133,878) 145,311  Assumption Changes • CalPERS 97-15 Experience Study mortality and updated mortality improvement scale to MP-19 1,241 1,241 • Medical Plan election percentages and spouse, family, and employee participation assumption changes 6,395 6,395 • Removal of ACA Excise Tax (repealed 12/2019) (4,208) (4,208)  Contribution and Benefit Payment Loss 4,534 4,534  Investment (Gain) (5,466) (5,466)  Plan Changes (Group 3 Caps) 1,050 1,050  Experience (Gains)/Losses • Premiums/Caps lower than expected (23,400) (23,400) • Demographic (mainly Medicare eligibility) (8,877) - (8,877)  Total (Gain)/Loss (27,800) (932) (28,732)  Projected 6/30/20 251,389 (134,810) 116,579 June 12, 2020 26 RESULTS Actuarially Determined Contribution (ADC) (Amounts in 000’s) 6/30/17 Valuation 6/30/19 Valuation 2018/19 2019/20 2020/21 2021/22  Discount Rate 6.75% 6.75%  ADC - $ • Normal Cost $ 7,081 $ 7,299 $ 6,888 $ 7,099 • Administrative Expenses27 - - 90 98 • UAAL Amortization 8,916 9,183 7,588 7,816 • Total 15,997 16,482 14,566 15,013  Projected Payroll 90,377 93,089 109,486 112,771  ADC - %Pay • Normal Cost 7.8% 7.8% 6.3% 6.3% • Administrative Expenses - - 0.1% 0.1% • UAAL Amortization 9.9% 9.9% 6.9% 6.9% • Total 17.7% 17.7% 13.3% 13.3% 27 PEMHCA and CERBT administration fees included after fiscal year 2020/21. PEMHCA admin fee included in Normal Cost for years 2018/19 and 2019/20. June 12, 2020 27 RESULTS Historical Recommended Funding Contributions (Amounts in 000’s) 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 Normal Cost 4,782 5,091 5,256 5,674 5,880 6,340 6,587 7,081 7,299 6,978 7,197 Amortization 7,802 7,665 7,779 8,607 8,887 10,025 10,351 8,916 9,183 7,588 7,816 ADC 12,584 12,756 13,035 14,282 14,767 16,365 16,938 15,997 16,482 14,566 15,013 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 June 12, 2020 28 RESULTS Amortization Bases & Payments (Amounts in 000’s) 6/30/17 Valuation 6/30/19 Valuation 6/30/18 6/30/19 6/30/20 6/30/21  UAAL Balance $ 143,926 $ 144,725 $ 116,579 $ 116,859  Amortization Payment 8,916 9,183 7,588 7,816  Amortization Period 26 25 24 23 June 12, 2020 29 RESULTS Unfunded Actuarial Accrued Liability (UAAL) – % of Payroll (Amounts in 000’s) 6/30/11 6/30/13 6/30/15 6/30/17 6/30/19  UAAL/Payroll for year beginning on valuation date • Miscellaneous 147% 158% 152% 149% 99% • Safety 168% 228% 276% 269% 171% • Total 153% 176% 178% 175% 116% June 12, 2020 30 RESULTS 10 Year Contribution Projection (Amounts in 000’s) FYE ADC28 Contribution Payroll ADC % of Pay Fund % Cash Ben Pymt Implied Subsidy BP Trust Pre- Funding Total UAAL, Beg. Of FY 2020 $ 16,482 $ 10,928 $ 2,384 $ 3,170 $ 16,482 $ 93,089 17.7% $ 144,725 46% 2021 14,566 10,859 2,347 1,360 14,566 109,486 13.3% 116,579 54% 2022 15,013 11,622 2,619 772 15,013 112,771 13.3% 116,421 56% 2023 15,486 12,327 2,826 333 15,486 116,154 13.3% 115,990 57% 2024 15,964 12,968 2,976 20 15,964 119,638 13.3% 115,266 59% 2025 16,457 13,601 3,112 (256) 16,457 123,227 13.4% 114,225 61% 2026 16,965 14,171 3,176 (382) 16,965 126,924 13.4% 112,840 63% 2027 17,486 14,740 3,252 (506) 17,486 130,732 13.4% 111,083 65% 2028 18,023 15,282 3,211 (470) 18,023 134,654 13.4% 108,923 66% 2029 18,576 15,905 3,290 (619) 18,576 138,694 13.4% 106,329 68% 2030 19,146 16,569 3,433 (856) 19,146 142,854 13.4% 103,256 70% 28 Actuarially Determined Contribution June 12, 2020 31 RESULTS -$15 -$10 -$5 $0 $5 $10 $15 $20 $25 $30 $ M i l l i o n s Net Trust Payment/Reimbursement Benefit Payments Total ADC ADC, Benefit and Trust Payment/Reimbursement Projection (6.75% Discount Rate, 24 years level % of pay amortization) June 12, 2020 32 RESULTS 0% 20% 40% 60% 80% 100% 120% $0 $20 $40 $60 $80 $100 $120 $140 Fu n d e d R a t i o UA A L ( $ M i l l i o n s ) UAAL Funded Ratio UAAL and Funded Ratio Projection (6.75% Discount Rate, 24 years amortization) June 12, 2020 33 RESULTS % of Total Actuarial Accrued Liability for Actives and Retirees Miscellaneous 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6/30/2009 6/30/2011 6/30/2013 6/30/2015 6/30/2017 6/30/2019 Actives Retirees June 12, 2020 34 RESULTS % of Total Actuarial Accrued Liability for Actives and Retirees Safety 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 6/30/2009 6/30/2011 6/30/2013 6/30/2015 6/30/2017 6/30/2019 Actives Retirees June 12, 2020 35 RESULTS This chart excludes the Implied Subsidy and is provided for informational purposes only (Amounts in 000’s) Cash Benefit  Present Value of Benefits $ 250,941  Funded Status 6/30/19 • Actuarial Accrued Liability 201,521 • Actuarial Value of Assets 118,497 • Unfunded AAL 83,024  Funded Ratio 58.8%  ADC 2020/21 • Normal Cost 5,765 • Administrative Expenses 90 • UAAL Amortization 4,885 • Total 10,740 • ADC % of Payroll 9.8% June 12, 2020 36 RESULTS This page intentionally blank June 12, 2020 37 RESULTS - DETAILS Actuarial Obligations June 30, 2019 (Amounts in 000’s) Benefits < Age 65 Benefits > Age 65 Total  Present Value of Benefits • Actives (future retirees) $ 75,855 $ 65,568 $ 141,423 • Retirees 47,969 111,187 159,156 • Total 123,824 176,756 300,579  Actuarial Accrued Liability • Actives (future retirees) 42,395 39,918 82,313 • Retirees 47,969 111,187 159,156 • Total 90,364 151,106 241,469  Normal Cost 2020/2129 3,806 3,172 6,978 29 Includes Administration fees. June 12, 2020 38 RESULTS - DETAILS Actuarial Obligations June 30, 2019 (Amounts in 000’s) Group 1 Group 2 Group 3 Group 4 Total  Present Value of Benefits • Actives (future retirees) $ - $ - $ 17,310 $ 124,113 $ 141,423 • Retirees 49,303 56,784 30,652 22,417 159,156 • Total 49,303 56,784 47,962 146,530 300,579  Actuarial Accrued Liability • Actives (future retirees) - - 14,375 67,938 82,313 • Retirees 49,303 56,784 30,652 22,417 159,156 • Total 49,303 56,784 45,027 90,355 241,469  Normal Cost 2020/2130 - - 515 6,463 6,978  NC as % of Payroll n/a n/a 5.5% 6.5% 6.4%  Active Count n/a n/a 92 838 930  Projected Payroll (000’s) n/a n/a 9,417 100,069 109,486 30 Includes Administration fees. June 12, 2020 39 RESULTS - DETAILS Cash/Implied Subsidy – Actuarial Obligations – June 30, 2019 (Amounts in 000’s) Cash Subsidy Implied Subsidy Total  Present Value of Benefits • Actives (future retirees) $ 117,228 $ 24,195 $ 141,423 • Retirees 133,713 25,443 159,156 • Total 250,941 49,638 300,579  Actuarial Accrued Liability • Actives (future retirees) 67,808 14,506 82,313 • Retirees 133,713 25,443 159,156 • Total 201,521 39,949 241,469  Market Value of Assets31 98,893 19,604 118,497  Unfunded AAL 102,628 20,345 122,972  Normal Cost 2020/2132 5,855 1,122 6,978  Pay-As-You-Go Cost 2020/21 10,859 2,346 13,206 31 Allocated in proportion to AAL for illustrative purposes. 32 Includes Administration fees. June 12, 2020 40 RESULTS - DETAILS Cash/Implied Subsidy – Actuarially Determined Contribution – 2020/21 FY (Amounts in 000’s) Cash Subsidy Implied Subsidy Total  ADC - $ • Normal Cost $ 5,765 $ 1,122 $ 6,888 • Administrative Expenses 90 - 90 • UAAL Amortization 6,335 1,254 7,588 • ADC 12,190 2,376 14,566  Projected Payroll 109,486 109,486 109,486  ADC - % • Normal Cost 5.3% 1.0% 6.3% • Administrative Expenses 0.1% 0.0% 0.1% • UAAL Amortization 5.8% 1.1% 6.9% • ADC 11.1% 2.2% 13.3% June 12, 2020 41 RESULTS - DETAILS Actuarial Obligations June 30, 2019 (Amounts in 000’s) Misc Safety Total  Present Value of Benefits • Actives (future retirees) $101,340 $ 40,083 $141,423 • Retirees 98,746 60,410 159,156 • Total 200,086 100,493 300,579  Actuarial Accrued Liability • Actives (future retirees) 61,391 20,922 82,313 • Retirees 98,746 60,410 159,156 • Total 160,137 81,332 241,469  Market Value of Assets33 78,585 39,912 118,497  Unfunded AAL 81,552 41,420 122,972  Normal Cost 2020/2134 4,929 2,048 6,978  Pay-As-You-Go Cost 2020/21 8,569 4,637 13,206 33 Allocated in proportion to the Actuarial Accrued Liability. 34 Includes Administration fees. June 12, 2020 42 RESULTS - DETAILS Actuarially Determined Contribution (ADC) 2020/21 Fiscal Year (Amounts in 000’s) Misc Safety Total  ADC - $ • Normal Cost $ 4,865 $ 2,022 $ 6,888 • Administrative Expenses 64 26 90 • UAAL Amortization35 5,048 2,541 7,588 • ADC 9,977 4,589 14,566  Projected Payroll 84,490 24,996 109,486  ADC - % • Normal Cost 5.8% 8.1% 6.3% • Administrative Expenses 0.1% 0.1% 0.1% • UAAL Amortization 6.0% 10.2% 6.9% • ADC 11.8% 18.4% 13.3% 35 Allocated in proportion to the Actuarial Accrued Liability. June 12, 2020 43 RESULTS - DETAILS Actuarial Obligations – By Bargaining Unit June 30, 2019 (Amounts in 000’s) FCA IAFF M/C PAPOA PMA SEIU UMPAPA Total  PVB • Actives $ 1,328 $ 19,563 $ 29,005 $ 16,122 $ 1,958 $ 64,581 $ 8,867 $ 141,423 • Retirees 1,983 29,741 46,519 19,507 3,093 54,527 3,787 159,156 • Total 3,311 49,304 75,524 35,629 5,051 119,108 12,654 300,579  AAL • Actives 895 10,647 17,085 7,268 1,307 38,325 6,786 82,313 • Retirees 1,983 29,741 46,519 19,507 3,093 54,527 3,787 159,156 • Total 2,878 40,388 63,604 26,775 4,400 92,852 10,573 241,469  MVA36 1,412 19,820 31,213 13,139 2,159 45,566 5,189 118,497  UAAL 1,466 20,568 32,391 13,636 2,241 47,286 5,384 122,972  NC 20/21 51 887 1,514 987 85 3,131 323 6,978  Pay-Go 158 2,398 3,789 1,443 176 4,811 429 13,206 36 Allocated in proportion to the Actuarial Accrued Liability. June 12, 2020 44 RESULTS - DETAILS Actuarially Determined Contribution (ADC) – By Bargaining Unit 2020/21 Fiscal Year (Amounts in 000’s) FCA IAFF M/C PAPOA PMA SEIU UMPAPA Total  ADC - $ • Normal Cost $ 50 $ 876 $ 1,494 $ 974 $ 84 $ 3,090 $ 319 $ 6,888 • Admin. Exp. 1 11 20 13 1 41 4 90 • UAAL Amort37 90 1,256 1,978 846 139 2,940 338 7,588 • ADC 140 2,143 3,491 1,833 224 6,072 661 14,566  Proj. Payroll 935 10,993 29,899 10,481 1,584 46,935 8,660 109,486  ADC - % • Normal Cost 5.3% 8.0% 5.0% 9.3% 5.3% 6.6% 3.7% 6.3% • Admin. Exp. 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0% 0.1% • UAAL Amort 9.6% 11.4% 6.6% 8.1% 8.8% 6.3%3.9% 6.9% • ADC 19.5% 11.7% 17.5% 14.1% 12.9% 7.6% 7.6% 13.3% 37 Allocated in proportion to the Actuarial Accrued Liability. June 12, 2020 45 RESULTS - DETAILS Actuarially Determined Contribution (ADC) – By Bargaining Unit 2021/22 Fiscal Year (Amounts in 000’s) FCA IAFF M/C PAPOA PMA SEIU UMPAPA Total  ADC - $ • Normal Cost $ 51 $ 890 $ 1,550 $ 991 $ 85 $ 3,201 $ 331 $ 7,099 • Admin. Exp. 1 12 21 14 1 44 4 98 • UAAL Amort38 92 1,293 2,038 872 143 3,029 349 7,816 • ADC 144 2,196 3,609 1,876 230 6,273 684 15,013  Proj. Payroll 963 11,323 30,796 10,795 1,631 48,343 8,920 112,771  ADC - % • Normal Cost 5.3% 7.9% 5.0% 9.2% 5.2% 6.6% 3.7% 6.3% • Admin. Exp. 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.0% 0.1% • UAAL Amort 9.6% 11.4% 6.6% 8.1% 8.8% 6.3%3.9% 6.9% • ADC 15.0% 19.4% 11.7% 17.4% 14.1% 13.0% 7.7% 13.3% 38 Allocated in proportion to the Actuarial Accrued Liability. June 12, 2020 46 SENSITIVITY ANALYSIS Asset Projection Sensitivity – 6.75% Discount Rate (Amounts in 000’s)  Asset Projection to 6/30/20 Methodology “Current” 12/31/19 Balance projected @ 6.75% “Option 1” 6/30/19 Balance projected @ 6.75% “Option 2” 3/23/20 Balance projected @ 6.75%  Funded Status Projected to 6/30/20 • Actuarial Accrued Liability $ 251,389 $ 251,389 $ 251,389 • Actuarial Value of Assets 134,810 130,335 104,473 • Unfunded AAL 116,579 121,054 146,916 • Projected Funded Ratio at 6/30/20 54% 52% 42%  Total Projected Payroll 2020/21 109,486 109,486 109,486  ADC 2020/21 • Normal Cost $ 6,888 $ 6,888 $ 6,888 • Administrative Expenses 90 87 83 • UAAL Amortization (24 year) 7,588 7,880 9,563 • Total 14,566 14,855 16,534 • ADC % of Payroll 13.3% 13.6% 15.1% June 12, 2020 47 SENSITIVITY ANALYSIS CERBT Investment Options  Updated Target asset allocations (approved by CalPERS Board October 2018) Asset Classifications Option 1 Option 2 Option 3 Global Equity 59% 40% 22% Fixed Income 25% 43% 49% REIT's 8% 8% 8% TIPS 5% 5% 16% Commodities 3% 4% 5% Total 100% 100% 100%  Bartel Associates expected returns, 50th percentile: Option 1 Option 2 Option 3 Expected Real Rate of Return39 4.14% 3.54% 2.83% Inflation Assumption 2.75% 2.75% 2.75% Expenses (Admin. & Invest.) (0.05%) (0.05%) (0.05%) Nominal Rate of Return 6.84% 6.24% 5.53% Rounded to nearest 0.25% 6.75% 6.25% 5.50% 39 Includes investment expenses June 12, 2020 48 SENSITIVITY ANALYSIS Discount Rate Sensitivity (Amounts in 000’s) CERBT Strategy #1 (Current) #2 #3  Discount Rate 6.75% 6.25% 5.50%  Present Value of Benefits $ 300,579 $ 325,064 $ 368,416  Funded Status 6/30/19 • Actuarial Accrued Liability 241,469 256,328 281,591 • Actuarial Value of Assets 118,497 118,497 118,497 • Unfunded AAL 122,972 137,831 163,094  Funded Ratio 49.1% 46.2% 42.1%  ADC 2020/21 • Normal Cost $ 6,888 $ 7,674 $ 9,054 • Administrative Expenses 90 90 90 • UAAL Amortization40 7,588 8,160 9,030 • Total 14,566 15,924 18,173 • ADC % of Payroll 13.3% 14.5% 16.6% 40 UAAL projected using the same “Current” projected assets for all scenarios. UAAL amortized over 24 years for all scenarios. June 12, 2020 49 SENSITIVITY ANALYSIS Amortization Period Sensitivity Discount Rate – 6.75% (Amounts in 000’s)  Amortization Period Current 24 Years 2241 Years 20 Years  Funded Status Projected to 6/30/20 • Actuarial Accrued Liability $ 251,389 $ 251,389 $ 251,389 • Actuarial Value of Assets42 134,810 134,810 134,810 • Unfunded AAL 116,579 116,579 116,579  Total Projected Payroll 2020/21 109,486 109,486 109,486  ADC 2020/21 • Normal Cost $ 6,888 $ 6,888 $ 6,888 • Administrative Expenses 90 90 90 • UAAL Amortization 7,588 8,026 8,557 • Total 14,566 15,004 15,535 • ADC % of Payroll 13.3% 13.7% 14.2% 41 The longest amortization period where the payment is large enough to cover all the interest (6.75%) on the UAAL balance. 42 “Current” asset projection basis, from 12/31/2019. June 12, 2020 50 SENSITIVITY ANALYSIS Amortization Period Sensitivity Discount Rate – 6.25% (Amounts in 000’s)  Amortization Period Current 24 Years 2243 Years 20 Years  Funded Status Projected to 6/30/20 • Actuarial Accrued Liability $ 266,756 $ 266,756 $ 266,756 • Actuarial Value of Assets44 134,810 134,810 134,810 • Unfunded AAL 131,946 131,946 131,946  Total Projected Payroll 2020/21 109,486 109,486 109,486  ADC 2020/21 • Normal Cost $ 7,674 $ 7,674 $ 7,674 • Administrative Expenses 90 90 90 • UAAL Amortization 8,160 8,661 9,267 • Total 15,924 16,425 17,031 • ADC % of Payroll 14.5% 15.0% 15.6% 43 The longest amortization period where the payment is large enough to cover all the interest (6.75%) on the UAAL balance. 44 “Current” asset projection basis, from 12/31/2019. June 12, 2020 51 ACTUARIAL CERTIFICATION This report presents the City of Palo Alto Retiree Healthcare Plan (“Plan”) June 30, 2019 actuarial valuation. The purpose of this valuation is to:  Determine the June 30, 2019 Benefit Obligations,  Determine the Plan’s June 30, 2019 Funded Status, and  Calculate the 2020/21 and 2021/22 Actuarially Determined Contributions. The report provides information intended for plan funding, but may not be appropriate for other purposes. Information provided in this report may be useful to the City for the Plan’s financial management. Future valuations may differ significantly if the Plan’s experience differs from our assumptions or if there are changes in Plan design, actuarial methods or actuarial assumptions. The project scope did not include an analysis of this potential variation. The valuation is based on Plan provisions, participant data, and asset information provided by the City as summarized in this report, which we relied on and did not audit. We reviewed the participant data for reasonableness. To the best of our knowledge, this report is complete and accurate and has been conducted using generally accepted actuarial principles and practices. As members of the American Academy of Actuaries meeting the Academy Qualification Standards, we certify the actuarial results and opinions herein. Respectfully submitted, Mary Elizabeth Redding, FSA, MAAA, EA Vice President Bartel Associates, LLC June 12, 2020 Deanna Van Valer, ASA, MAAA, EA, FCA Assistant Vice President Bartel Associates, LLC June 12, 2020 June 12, 2020 52 ACTUARIAL CERTIFICATION This page intentionally blank June 12, 2020 53 EXHIBITS Topic Page Premiums E- 1 Data Summary E- 4 Actuarial Assumptions E-26 Results by Fund E-37 Results by GF Department E-39 Definitions E-41 June 12, 2020 E-1 PREMIUMS 2019 PEMHCA Monthly Premiums Bay Area Non-Medicare Eligible Medicare Eligible Medical Plan Single 2-Party Family Single 2-Party Family Anthem Select $831.44 $1,662.88 $2,161.74 n/a n/a n/a Anthem Traditional 1,111.13 2,222.26 2,888.94 $357.44 $714.88 $1,072.32 Blue Shield Access+ 970.90 1,941.80 2,524.34 n/a n/a n/a Health Net SmartCare 901.55 1,803.10 2,344.03 n/a n/a n/a Kaiser 768.25 1,536.50 1,997.45 323.74 647.48 971.22 UnitedHealthcare n/a n/a n/a 299.37 598.74 898.11 Western Health Advantage 767.01 1,534.02 1,994.23 n/a n/a n/a PERS Choice 866.27 1,732.54 2,252.30 360.41 720.82 1,081.23 PERS Select 543.19 1,086.38 1,412.29 360.41 720.82 1,081.23 PERSCare 1,131.68 2,263.36 2,942.37 394.83 789.66 1,184.49 PORAC 774.00 1,623.00 2,076.00 513.00 1,022.00 1,635.00 June 12, 2020 E-2 PREMIUMS 2020 PEMHCA Monthly Premiums Region 1 Non-Medicare Eligible Medicare Eligible Medical Plan Single 2-Party Family Single 2-Party Family Anthem Select $868.98 $1,737.96 $2,259.35 $388.15 $776.30 $1,164.45 Anthem Traditional 1,184.84 2,369.68 3,080.58 388.15 776.30 1,164.45 Blue Shield Access+ 1,127.77 2,255.54 2,932.20 n/a n/a n/a Health Net SmartCare 1,000.52 2,001.04 2,601.35 n/a n/a n/a Kaiser 768.49 1,536.98 1,998.07 339.43 678.86 1,018.29 UnitedHealthcare 899.94 1,799.88 2,339.84 327.03 654.06 981.09 Western Health Advantage 731.96 1,463.92 1,903.10 n/a n/a n/a PERS Choice 861.18 1,722.36 2,239.07 351.39 702.78 1,054.17 PERS Select 520.29 1,040.58 1,352.75 351.39 702.78 1,054.17 PERSCare 1,133.14 2,266.28 2,946.16 384.78 769.56 1,154.34 PORAC 774.00 1,699.00 2,199.00 513.00 1,022.00 1,635.00 June 12, 2020 E-3 PREMIUMS PEMHCA Monthly Premium Increases/(Decreases) Bay Area/Region 1 Non-Medicare Eligible Medicare Eligible Medical Plan 2018 2019 2020 2018 2019 2020 Anthem Select 9.3% (2.9%) 4.5% n/a n/a n/a Anthem Traditional (6.5%) 20.1% 6.6% n/a (3.5%) 8.6% Blue Shield (13.3%) 9.2% 16.2% n/a n/a n/a Blue Shield NetValue 17.8% n/a n/a n/a n/a n/a Health Net SmartCare 6.3% 4.4% 11.0% n/a n/a n/a Kaiser 29.1% (1.5%) 0.0% 5.3% 2.3% 4.8% UnitedHealthCare 9.3% n/a n/a 2.0% (9.5%) 9.2% PERS Choice (3.6%) 8.2% (0.6%) (2.2%) 4.2% (2.5%) PERS Select (2.5%) (24.3%) (4.2%) (2.2%) 4.2% (2.5%) PERSCare (5.4%) 28.2% 0.1% (1.9%) 3.3% (2.5%) PORAC 5.0% 5.4% 0.0% 5.0% 5.3% 0.0% June 12, 2020 E-4 DATA SUMMARY Participant Statistics by Bargaining Unit June 30, 2019 FCA IAFF M/C PAPOA PMA SEIU UMPAPA Total  Actives • Count 5 85 207 69 7 508 49 930 • Avg Age 43.9 42.3 47.2 40.2 44.7 44.4 50.4 44.8 • Avg City Svc 17.9 12.4 10.2 9.7 17.8 10.1 18.3 10.8 • Avg PERS Svc 17.9 12.9 11.7 11.0 18.6 10.7 19.2 11.7 • Avg Salary $176,198 $121,901 $136,149 $143,180 $213,236 $87,088 $166,590 $110,969 • Total Salary45 $881 $10,362 $28,183 $9,879 $1,493 $44,241 $8,163 $103,201  Retirees46: • Count 6 143 298 90 6 418 13 974 • Avg Age 63.1 70.6 70.7 66.3 55.0 70.8 60.2 70.0 • Avg Service Ret Age 56.8 54.6 58.2 52.0 50.5 59.5 57.1 58.0 • Avg Disab Ret Age 50.1 48.4 50.5 41.4 n/a 48.2 n/a 46.1 45 Amount in 000’s. Actual 2018/19 PERSable compensations. 46 Excludes retirees who have waived coverage. June 12, 2020 E-5 DATA SUMMARY Participant Statistics by Bargaining Unit June 30, 2017 FCA IAFF M/C PAPOA PMA SEIU UMPAPA Total  Actives • Count 5 83 210 75 8 540 46 967 • Avg Age 46.6 43.5 48.1 38.8 44.8 45.5 51.1 45.6 • Avg City Svc 17.9 13.6 9.8 8.8 17.9 10.4 18.3 10.9 • Avg PERS Svc 18.0 14.5 11.7 9.9 18.9 11.1 18.8 11.9 • Avg Salary $151,335 $97,392 $115,469 $106,732 $178,663 $73,049 $125,547 $90,739 • Total Salary47 $757 $8,084 $24,248 $8,005 $1,429 $39,447 $5,775 $87,745  Retirees48: • Count 5 139 290 103 5 408 9 959 • Avg Age 61.8 69.7 69.6 65.1 53.5 69.7 59.1 68.9 • Avg Service Ret Age 56.4 54.5 57.9 52.4 50.4 59.0 56.3 57.7 • Avg Disab Ret Age 50.1 48.6 50.4 40.9 n/a 48.0 n/a 45.9 47 Pay is annualized. Amount in 000’s. 48 Includes retirees under age 65 who have waived coverage. June 12, 2020 E-6 DATA SUMMARY Participant Statistics by CalPERS Pension Category June 30, 2019 49 Actual 2018/19 PERSable compensations. 50 Excludes retirees who have waived coverage. Miscellaneous Police Fire Total  Actives • Count 761 76 93 930 • Average Age 45.5 41.2 42.5 44.8 • Average City Service 10.6 10.8 12.8 10.8 • Average PERS Service 11.5 12.1 13.3 11.7 • Average Salary $104,652 $153,105 $128,224 $110,969 • Total Salary (000’s)49 $79,640 $11,636 $11,925 $103,201  Retirees50: • Count 707 107 160 974 • Average Age 70.7 65.8 70.1 70.0 • Avg Service Ret Age 59.1 51.8 54.5 58.0 • Avg Disability Ret Age 48.2 41.5 48.5 46.1 June 12, 2020 E-7 DATA SUMMARY Participant Statistics by CalPERS Pension Category June 30, 2017 51 Pay is annualized. 52 Includes retirees under age 65who have waived coverage. Miscellaneous Police Fire Total  Actives • Count 795 80 92 967 • Average Age 46.4 39.8 43.9 45.6 • Average City Service 10.6 10.0 13.9 10.9 • Average PERS Service 11.6 11.2 14.7 11.9 • Average Salary $86,643 $116,012 $104,155 $90,739 • Total Salary (000’s)51 $68,881 $9,281 $9,582 $87,745  Retirees52: • Count 686 118 155 959 • Average Age 69.6 64.4 69.5 68.9 • Avg Service Ret Age 58.7 51.9 54.4 57.7 • Avg Disability Ret Age 48.0 41.0 48.7 45.9 June 12, 2020 E-8 DATA SUMMARY Medical Plan Participation – June 30, 2019 All Retirees Medical Plan Actives < 65 ≥ 65 Total Miscellaneous/Safety M S M S M S M S Anthem Select 6% 4% 5%1% 1% 1% 2% 1% Anthem Traditional 9% 1% 16%13% 3% 2% 7% 7% Blue Shield 1% 1% 3%6% 0% 0% 1% 3% Health Net SmartCare 2% 1% 1%0% 0% 0% 1% 0% Kaiser 62% 50% 33%20% 29% 25% 30% 23% UnitedHealthcare 0% 0% 0%2% 20% 12% 14% 7% Western Health Advantage 0% 1% 0%0% 0% 0% 0% 0% PERS Choice 17% 2% 31%5% 19% 15% 23% 11% PERS Select 2% 0% 1%0% 0% 0% 1% 0% PERSCare 1% 1% 7%12% 26% 36% 21% 25% PORAC 0% 40% 1%42% 1% 8% 1% 23% Total 100% 100% 100%100% 100% 100% 100% 100% June 12, 2020 E-9 DATA SUMMARY Medical Plan Participation – June 30, 2019 Recent Retirees53 Medical Plan Actives < 65 ≥ 65 Total Miscellaneous/Safety M S M S M S M S Anthem Select 6% 4% 5% 3% 2% 2% 3% 2% Anthem Traditional 9% 1% 13% 13% 6% 4% 8% 8% Blue Shield 1% 1% 2% 5% 1% 0% 1% 2% Health Net SmartCare 2% 1% 2% 0% 0% 0% 1% 0% Kaiser 62% 50% 37% 33% 33% 22% 34% 27% UnitedHealthcare 0% 0% 0% 0% 16% 4% 10% 2% Western Health Advantage 0% 1% 0% 0% 0% 0% 0% 0% PERS Choice 17% 2% 30% 0% 24% 7% 26% 3% PERS Select 2% 0% 2% 0% 1% 0% 1% 0% PERSCare 1% 1% 8% 3% 18% 43% 14% 24% PORAC 0% 40% 1% 45% 1% 17% 1% 30% Total 100% 100% 100% 100% 100% 100% 100% 100% 53 Under 65 only includes employees who retired on or after June 30, 2012; over 65 only includes retirees up to age 72. See page E-8 for participation percentages for all retirees. June 12, 2020 E-10 DATA SUMMARY Medical Plan Participation – June 30, 2017 Recent Retirees54 Medical Plan55 Actives < 65 ≥ 65 Total Miscellaneous/Safety M S M S M S M S Anthem Select 7% 3% 1%0% 0% 0% 0% 0% Anthem Traditional 14% 4% 12%12% 0% 0% 6% 7% Anthem EPO 0% 0% 1%0% 0% 0% 0% 0% Blue Shield 4% 2% 14%8% 1% 0% 0% 5% Health Net SmartCare 2% 0% 0%0% 0% 0% 0% 0% Kaiser 56% 44% 26%23% 35% 25% 31% 24% UnitedHealthcare 1% 3% 7%4% 28% 12% 18% 7% PERS Choice 13% 1% 29%1% 22% 5% 26% 3% PERS Select 1% 0% 2%0% 0% 0% 1% 0% PERSCare 2% 1% 7%3% 13% 39% 10% 16% PORAC 0% 42% 1%49% 1% 19% 1% 38% Total 100% 100% 100%100% 100% 100% 100% 100% 54 Under 65 only includes employees who retired on or after June 30, 2008; over 65 only includes retirees up to age 72. 55 All Blue Shield pre-Medicare retirees are assumed to switch to UnitedHealthcare when they are eligible for Medicare. June 12, 2020 E-11 DATA SUMMARY Active Medical Coverage – Miscellaneous Medical Plan Single 2-Party Family Waived Total Anthem Select 14 6 19 - 39 Anthem Traditional 25 12 24 - 61 Blue Shield 1 2 2 - 5 Health Net SmartCare 3 3 4 - 10 Kaiser 140 103 171 - 414 UnitedHealthcare - - - - - Western Health Advantage - - 1 - 1 PERS Choice 25 33 58 - 116 PERS Select 4 4 2 - 10 PERSCare 1 2 3 - 6 PORAC - 1 - - 1 Waived - - - 98 98 Total 213 166 284 98 761 % as of June 30, 2019 28% 22% 37% 13% 100% % as of June 30, 2017 27% 22% 39% 12% 100% June 12, 2020 E-12 DATA SUMMARY Active Medical Coverage – Safety Medical Plan Single 2-Party Family Waived Total Anthem Select 1 2 3 - 6 Anthem Traditional 1 1 - - 2 Blue Shield - - 1 - 1 Health Net SmartCare - - 2 - 2 Kaiser 21 11 48 - 80 UnitedHealthCare - - - - - Western Health Advantage - - 1 - 1 PERS Choice 1 1 1 - 3 PERS Select - - - - - PERSCare - - 1 - 1 PORAC 10 8 45 - 63 Waived - - - 10 10 Total 34 23 102 10 169 % as of June 30, 2019 20% 14% 60% 6% 100% % as of June 30, 2017 21% 13% 60% 6% 100% June 12, 2020 E-13 DATA SUMMARY Retiree Medical Coverage56 - Miscellaneous Medical Plan Single 2-Party Family Total <65 65+ <65 65+ <65 65+ Anthem Select 4 3 3 2 3 - 15 Anthem Traditional 14 3 14 8 5 5 49 Blue Shield 3 - 3 1 1 - 8 Health Net SmartCare 1 2 2 - - - 5 Kaiser 25 80 31 61 12 6 215 UnitedHealthcare - 64 - 34 - - 98 PERS Choice 30 51 23 42 11 3 160 PERS Select 3 - - 1 - - 4 PERSCare 8 74 6 58 1 1 148 PORAC 1 1 1 2 - - 5 Total 89 278 83 209 33 15 707 % as of June 30, 2019 13% 39% 12% 30% 5% 2% 100% % as of June 30, 2017 13% 37% 12% 27% 4% 2% 100% 56 Approximately 68% of retirees have coverage in a Bay Area region plan. The rest are in other state regions or out of state. June 12, 2020 E-14 DATA SUMMARY Retiree Medical Coverage57 - Safety Medical Plan Single 2-Party Family Total <65 65+ <65 65+ <65 65+ Anthem Select - 1 - 1 1 - 3 Anthem Traditional 2 - 6 2 7 1 18 Blue Shield 1 - 2 - 4 - 7 Health Net SmartCare - - - - - - 0 Kaiser 2 15 7 21 15 1 61 UnitedHealthcare - 12 1 6 1 - 20 PERS Choice 2 8 2 15 2 - 29 PERS Select - - - - - - 0 PERSCare 7 29 2 23 5 2 68 PORAC 7 3 17 9 25 - 61 Total 21 68 37 77 60 4 267 % as of June 30, 2019 8% 25% 14% 29% 22% 1% 100% % as of June 30, 2017 11% 25% 13% 26% 21% 2% 100% 57 Approximately 69% of retirees have coverage in a Bay Area region plan. The rest are in other state regions or out of state. June 12, 2020 E-15 DATA SUMMARY Retirees Medical Coverage by Age – Miscellaneous Age Single 2-Party Family Total Under 50 - - 1 1 50-54 5 4 1 10 55-59 33 25 13 71 60-64 51 54 18 123 65-69 76 61 7 144 70-74 67 65 7 139 75-79 70 38 1 109 80-84 38 24 - 62 85 & Over 27 21 - 48 Total 367 292 48 707 Average Age 71.7 70.6 62.8 70.7 June 12, 2020 E-16 DATA SUMMARY Retirees Medical Coverage by Age – Police Age Single 2-Party Family Total Under 50 2 1 3 6 50-54 1 1 7 9 55-59 4 5 9 18 60-64 7 9 7 23 65-69 9 8 1 18 70-74 4 8 - 12 75-79 5 4 - 9 80-84 4 1 - 5 85 & Over 5 2 - 7 Total 41 39 27 107 Average Age 70.0 67.7 56.8 65.8 June 12, 2020 E-17 DATA SUMMARY Retirees Medical Coverage by Age – Fire Age Single 2-Party Family Total Under 50 - 1 2 3 50-54 2 2 6 10 55-59 2 8 15 25 60-64 3 10 11 24 65-69 4 9 1 14 70-74 5 13 - 18 75-79 12 15 2 29 80-84 13 11 - 24 85 & Over 7 6 - 13 Total 48 75 37 160 Average Age 76.1 71.8 58.6 70.1 June 12, 2020 E-18 DATA SUMMARY Retirees Medical Coverage by Age – Total Age Single 2-Party Family Total Under 50 2 2 6 10 50-54 8 7 14 29 55-59 39 38 37 114 60-64 61 73 36 170 65-69 89 78 9 176 70-74 76 86 7 169 75-79 87 57 3 147 80-84 55 36 - 91 85 & Over 39 29 - 68 Total 456 406 112 974 Average Age 72.0 70.5 60.0 70.0 June 12, 2020 E-19 DATA SUMMARY 0 20 40 60 80 100 120 140 160 180 200 <50 50-54 55-59 60-64 65-69 70-74 75-79 80-84 ≥85 Nu m b e r Age Retiree Age Distribution Total 6/30/17 Valuation 6/30/19 Valuation June 12, 2020 E-20 DATA SUMMARY Actives by Age and Service – Miscellaneous City Service Age < 1 1-4 5-9 10-14 15-19 20-24 ≥ 25 Total < 25 4 3 - - - - - 7 25-29 23 42 6 - - - - 71 30-34 19 50 22 1 - - - 92 35-39 10 31 27 23 5 1 - 97 40-44 1 31 21 19 27 5 - 104 45-49 1 20 18 17 23 13 3 95 50-54 2 14 21 15 26 19 12 109 55-59 3 15 11 25 19 20 23 116 60-64 1 5 8 17 4 8 7 50 ≥ 65 - 1 2 2 4 3 8 20 Total 64 212 136 119 108 69 53 761 June 12, 2020 E-21 DATA SUMMARY Actives by Age and Service – Police City Service Age < 1 1-4 5-9 10-14 15-19 20-24 ≥ 25 Total < 25 - - - - - - - - 25-29 - 7 - - - - - 7 30-34 - 6 1 1 - - - 8 35-39 1 2 7 11 - - - 21 40-44 - 2 5 4 4 3 - 18 45-49 - - 1 3 2 2 1 9 50-54 - 1 1 - 2 1 2 7 55-59 - 2 - - 1 1 - 4 60-64 - - - 1 1 - - 2 ≥ 65 - - - - - - - - Total 1 20 15 20 10 7 3 76 June 12, 2020 E-22 DATA SUMMARY Actives by Age and Service – Fire City Service Age < 1 1-4 5-9 10-14 15-19 20-24 ≥ 25 Total < 25 3 - - - - - - 3 25-29 2 2 2 - - - - 6 30-34 3 6 7 1 - - - 17 35-39 - 1 5 5 - - - 11 40-44 - 2 3 4 2 - - 11 45-49 - 1 2 4 6 8 - 21 50-54 - - - 1 6 8 3 18 55-59 - - - - 3 2 - 5 60-64 - - - - - - - - ≥ 65 - - - - - - 1 1 Total 8 12 19 15 17 18 4 93 June 12, 2020 E-23 DATA SUMMARY Actives by Age and Service – Total City Service Age < 1 1-4 5-9 10-14 15-19 20-24 ≥ 25 Total < 25 7 3 - - - - - 10 25-29 25 51 8 - - - - 84 30-34 22 62 30 3 - - - 117 35-39 11 34 39 39 5 1 - 129 40-44 1 35 29 27 33 8 - 133 45-49 1 21 21 24 31 23 4 125 50-54 2 15 22 16 34 28 17 134 55-59 3 17 11 25 23 23 23 125 60-64 1 5 8 18 5 8 7 52 ≥ 65 - 1 2 2 4 3 9 21 Total 73 244 170 154 135 94 60 930 June 12, 2020 E-24 DATA SUMMARY 0 20 40 60 80 100 120 140 160 180 <25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 ≥65 Nu m b e r Age Active Age Distribution Total 6/30/17 Valuation 6/30/19 Valuation June 12, 2020 E-25 DATA SUMMARY 0 50 100 150 200 250 300 350 0-4 5-9 10-14 15-19 20-24 >25 Nu m b e r Service Active Service Distribution Total 6/30/17 Valuation 6/30/19 Valuation June 12, 2020 E-26 ACTUARIAL ASSUMPTIONS June 30, 2017 Valuation June 30, 2019 Valuation  Valuation Date  June 30, 2017  ADC58 for Fiscal Years 2018/19 & 2019/20. (end of year)  1 year lag  June 30, 2019  ADC for Fiscal Years 2020/21 & 2021/22. (end of year)  1 year lag  Funding Policy  Full Pre-funding through CalPERS trust (CERBT) Strategy #1  Same  General Inflation  2.75%  Same  Discount Rate  6.75%, net of expenses, based on CERBT Strategy #1  Same  Payroll Increases  Aggregate Increases – 3.00%  Merit Increases – CalPERS 1997-2015 Experience Study  Same 58 Actuarially Determined Contribution June 12, 2020 E-27 ACTUARIAL ASSUMPTIONS June 30, 2017 Valuation June 30, 2019 Valuation  Increase to Group 3 Flat Dollar Caps  ½ of Medical Trend, not less than assumed inflation (2.75%)59  Same  ACA Excise Tax  Estimate by 2% load on cash subsidy  Remove load due to December 2019 repeal of Excise Tax60  Mortality, Termination, Disability  CalPERS 1997-2015 Experience Study  Mortality: CalPERS 1997- 2011 Experience Study  Mortality improvement Society of Actuaries Scale MP-17  Same  Mortality: CalPERS 1997- 2015 Experience Study  Mortality improvement Society of Actuaries Scale MP-19 59 Increase is for purposes of financial projection only and does not imply any obligation to increase the cap in the future. 60 Note for GASBS 75 purposes, the Total OPEB Liability as of Measurement Date (MD) 6/30/19 will include a 2% load, as legislation passed after the MD may not be taken into account. June 12, 2020 E-28 ACTUARIAL ASSUMPTIONS June 30, 2017 Valuation June 30, 2019 Valuation  Retirement  CalPERS 1997-2015 Experience Study Misc Fire & Police Tier 1 2.7%@55 3%@50 Exp. RA 60.4 54.4 & 56.3 Tier 2 2%@60 3%@55 Exp. RA 60.8 56.0 & 57.3 PEPRA 2.5%@67 2.7%@57 Exp. RA 62.6 56.8 & 57.1  CalPERS 1997-2015 Experience Study Misc Fire & Police Tier 1 2.7%@55 3%@50 Exp. RA 60.3 56.4 & 55.2 Tier 2 2%@60 3%@55 Exp. RA 60.7 57.4 & 56.6 PEPRA 2.5%@67 2.7%@57 Exp. RA 62.4 57.3 & 57.0 June 12, 2020 E-29 ACTUARIAL ASSUMPTIONS June 30, 2017 Valuation June 30, 2019 Valuation  Medical Trend Increase from Prior Year Year Non-Medicare Medicare 2017-18 Actual Premiums/Claims 2019 7.50% 6.50% 2020 7.50% 6.50% 2021 7.25% 6.30% 2022 7.00% 6.10% 2023 6.75% 5.90% 2024 6.50% 5.70% 2025 6.25% 5.50% 2026 6.00% 5.30% 2027 5.80% 5.15% 2028 5.60% 5.00% 2029 5.40% 4.85% 2030 5.20% 4.70% 2031-35 5.05% 4.60% 2036-45 4.90% 4.50% 2046-55 4.75% 4.45% 2056-65 4.60% 4.40% 2066-75 4.30% 4.20% 2076+ 4.00% 4.00% Increase from Prior Year Year Non-Medicare Medicare 2019-20 Actual Premiums/Claims 2021 7.25% 6.30% 2022 7.00% 6.10% 2023 6.75% 5.90% 2024 6.50% 5.70% 2025 6.25% 5.50% 2026 6.00% 5.30% 2027 5.80% 5.15% 2028 5.60% 5.00% 2029 5.40% 4.85% 2030 5.20% 4.70% 2031-35 5.05% 4.60% 2036-45 4.90% 4.50% 2046-55 4.75% 4.45% 2056-65 4.60% 4.40% 2066-75 4.30% 4.20% 2076+ 4.00% 4.00% June 12, 2020 E-30 ACTUARIAL ASSUMPTIONS June 30, 2017 Valuation June 30, 2019 Valuation  Medical Plan at Retirement & Retirees Attaining age 65  Miscellaneous:<65 65+ Anthem Tradition 10% 0% Blue Shield 15% 0% Kaiser 30% 35% PERS Choice 30% 20% PERSCare 5% 15% United HC 10% 30%  Safety: <65 65+ Anthem Tradition 15% 0% Blue Shield 10% 0% Kaiser 20% 25% PERS Choice 0% 5% PERSCare 0% 40% PORAC 50% 20% United HC 5% 10%  Based on Plan experience  Miscellaneous: <65 65+ Anthem Tradition 20% 10% Blue Shield 0% 0% Kaiser 40% 35% PERS Choice 30% 25% PERSCare 10% 15% United HC 0% 15%  Safety: <65 65+ Anthem Tradition 15% 5% Blue Shield 5% 0% Kaiser 35% 25% PERS Choice 0% 5% PERSCare 0% 45% PORAC 45% 15% United HC 0% 5%  Based on Plan experience June 12, 2020 E-31 ACTUARIAL ASSUMPTIONS June 30, 2017 Valuation June 30, 2019 Valuation  Participation at Retirement  Groups 3 & 4: 90%  Based on Plan experience  Group 3: 98%  Group 4: if eligible for City contribution: 95%; if not: 0%  Based on Plan experience61  Spousal Coverage at Retirement  Currently covered: based on current elections  Currently waived: 80%  70% assumed to cover spouses  Based on Plan experience 61 Actual participation percentage for Group 3 since 6/30/17 is 100% Miscellaneous. Note there are no active Safety members in Group 3. Actual participation percentages for Group 4 since 6/30/17 are 83% Miscellaneous and 92% Safety, or 84% overall. Actual participation for Group 3 and Group 4 since 6/30/17 is 88% overall. Group 4 still has limited actual experience. We recommend continued monitoring for Group 4. June 12, 2020 E-32 ACTUARIAL ASSUMPTIONS June 30, 2017 Valuation June 30, 2019 Valuation  Family Coverage at Retirement  Actives • Misc : 15% until age 65 • Safety : 40% until age 65  Retirees: based on current elections until age 65  Actives • Misc: 15% until age 65 5% age 65-75 • Safety: 50% until age 65 5% age 65-80  Based on Plan experience  Waived Retiree Re-election  0%  Same  Surviving Spouse Participation  100%  Same  CalPERS Service  Actual data  Same  Spouse Age  Actives – Males 3 years older than females  Retirees – Males 3 years older than females if spouse birth date not available  Same June 12, 2020 E-33 ACTUARIAL ASSUMPTIONS June 30, 2017 Valuation June 30, 2019 Valuation  Medicare Eligible Rate  Actives and retirees hired < 4/1/86: • Miscellaneous – 80% • Safety – 90%  Actives and retirees hired > 4/1/86: 100%  Retirees < 65 with unknown hire date: 90%  Everyone eligible for Medicare will elect Part B coverage  Same June 12, 2020 E-34 ACTUARIAL ASSUMPTIONS June 30, 2017 Valuation June 30, 2019 Valuation  Retirees Missing Fund  Assumed to have the same fund as the prior valuation  In the prior valuation, assumed to be based on (then) current active percentages: 75% GF, 15% Elec, and 10% UTL62  Same  Retirees Missing Bargaining Unit  Assumed to have the same BU as in the prior valuation if available; otherwise, assumed to be SEIU unless fund designates Police or Fire62  Actual bargaining units provided by the City for all covered retirees 62 Fewer than 10% of retirees have missing Bargaining Unit, Fund or Department. Does not affect results, but does affect internal cost allocations used by the City. June 12, 2020 E-35 ACTUARIAL ASSUMPTIONS June 30, 2017 Valuation June 30, 2019 Valuation  Retirees Missing Department  Assumed to have the same department as the prior valuation  In prior valuation, liability for retirees assumed to be 75% GF allocated proportionately across all Departments  Same  Future New Participants  None – Closed Group  Same June 12, 2020 E-36 ACTUARIAL ASSUMPTIONS June 30, 2017 Valuation June 30, 2019 Valuation  Sample Medical Claims Costs 2020  Sample estimated monthly claims costs: Bay Area – Non-Medicare Eligible Kaiser (HMO) PERS Choice (PPO) PORAC Age M F M F M F 55 $849 $988 $861 $1,001 $987 $1,154 60 1,071 1,122 1,105 1,149 1,256 1,317 65 1,214 1,215 1,264 1,254 1,429 1,431 70 1,292 1,287 1,351 1,334 1,525 1,519 75 1,358 1,353 1,423 1,405 1,605 1,599 80 1,427 1,422 1,499 1,480 1,689 1,682 85 1,560 1,554 1,645 1,624 1,851 1,843 Bay Area – Medicare Eligible Kaiser (HMO) PERS Choice (PPO) PORAC Age M F M F M F 65 $308 $309 $282 $344 $404 $489 70 328 327 307 376 439 533 75 345 344 322 394 461 560 80 362 361 337 413 483 588 85 396 395 368 451 527 642 June 12, 2020 E-37 RESULTS BY FUND Actuarial Obligations – June 30, 2019 (Amounts in 000’s) FUND AAL Assets63 UAAL  Airport $ 565 $ 277 $ 288  CIP 3,686 1,809 1,877  Elec64 27,327 13,411 13,916  Gas64 10,274 5,042 5,232  GF 162,240 79,616 82,624  ISF – Technology 4,231 2,076 2,155  ISF – Vehicle 1,900 932 968  ISF – Printing & Mailing 90 44 46  ISF – Workers Comp 110 54 56  PARKING 433 212 221  Refuse 4,591 2,253 2,338  Storm Drain 1,992 978 1,014  Water64 8,279 4,063 4,216  WWC64 3,629 1,781 1,848  WWT 12,122 5,949 6,173  Total 241,469 118,497 122,972 63 Assets allocated in proportion to AAL. 64 AAL for UTL employees allocated to Elec, Gas, Water, and WWC in proportion to each Fund’s AAL June 12, 2020 E-38 RESULTS BY FUND Actuarially Determined Contribution (ADC) (Amounts in 000’s) FUND 2020/21 2021/22  Airport $ 46 $ 48  CIP 292 302  Elec64 1,549 1,593  Gas64 662 700  GF 9,621 9,902  ISF – Technology 360 368  ISF – Vehicle 160 165  ISF – Printing & Mailing 3 3  ISF – Workers Comp 15 15  PARKING 59 60  Refuse 217 223  Storm Drain 124 132  Water64 493 508  WWC64 269 277  WWT 696 717  Total 14,566 15,013 June 12, 2020 E-39 RESULTS BY GF DEPARTMENT Actuarial Obligations – June 30, 2019 (Amounts in 000’s) GF Department AAL Assets65 UAAL  ASD $ 8,892 $ 4,363 $ 4,529  ATT 2,429 1,192 1,237  AUD 422 207 215  CLK 774 380 394  COU 1,208 593 615  CSD 16,209 7,955 8,254  DSD 2,431 1,193 1,238  FIR 48,185 23,647 24,538  HRD 2,803 1,375 1,428  LIB 6,224 3,054 3,170  MGR 2,431 1,193 1,238  PLA 6,537 3,208 3,329  POL 46,778 22,955 23,823  PWD 16,917 8,301 8,616  Total 162,240 79,616 82,624 65 Assets allocated in proportion to AAL. June 12, 2020 E-40 RESULTS BY GF DEPARTMENT Actuarially Determined Contribution (ADC) (Amounts in 000’s) GF Department 2020/21 2021/22  ASD $ 572 $ 589  ATT 147 152  AUD 35 36  CLK 45 46  COU 67 69  CSD 967 995  DSD 218 224  FIR 2,505 2,580  HRD 186 192  LIB 498 513  MGR 166 170  PLA 373 384  POL 2,881 2,964  PWD 961 988  Total 9,621 9,902 June 12, 2020 E-41 DEFINITIONS Present Value of Benefits June 12, 2020 E-42 DEFINITIONS  Actuarially Determined Contribution (ADC)  Contribution for the current period including: • Normal Cost • Administrative expenses • Amortization of:  Initial Unfunded AAL  AAL for plan, assumption, and method changes  Experience gains/losses (difference between expected and actual)  Contribution gains/losses (difference between ADC and actual) ATTACHMENT C Project Project Revenue Expense Number Title Reappropriated from FY20 Reappropriated from FY20 AC-18000 Performing Arts Venues Seat Replacement $ - $ 400,000 AC-18001 JMZ Renovation $ - $ 1,905,753 AC-86017 Art In Public Spaces $ - $ 400,445 FD-14002 Fire Ringdown System Replacement $ 5,000 $ 16,000 FD-20000 Cardiac Monitor Replacement $ 7,000 $ 42,000 FD-20001 Self-Contained Breathing Apparatus (SCBA) Air Compressor Replacement $ 16,300 $ 86,000 OS-00002 Open Space Lakes And Pond Maintenance $ - $ 62,650 OS-09001 Off-Road Pathway Resurfacing And Repair $ - $ 10,000 PD-20000 Police Video Recording Systems Replacement $ - $ 102,000 PE-08001 Rinconada Park Improvements $ 1,999,529 $ 1,944,629 PE-09003 City Facility Parking Lot Maintenance $ - $ 378,741 PE-12011 Newell Road/San Francisquito Creek Bridge Replacement $ 500,000 $ 887,911 PE-13011 Charleston/Arastradero Corridor Project $ 1,303,710 $ 5,600,000 PE-14018 Baylands Boardwalk Improvements $ - $ 100,619 PE-15020 Civic Center Waterproofing Study and Repairs $ - $ 561,855 PE-17005 Boulware Park Improvements $ - $ 402,799 PE-17010 Civic Center Electrical Upgrade & EV Charger Installation $ - $ 618,800 PE-18002 High and Bryant Street Garages Waterproofing and Repairs $ - $ 116,546 PE-18004 Fire Station 4 Replacement $ - $ 500,000 PE-18006 Byxbee Park Completion $ - $ 221,146 PE-18016 Civic Center Fire Life Safety Upgrades $ - $ 324,956 PE-19000 City Hall Space Planning $ - $ 75,000 PE-19001 Water, Gas, Wastewater Office Remodel $ - $ 629,935 PE-19002 Animal Shelter Renovation $ - $ 530,357 PE-20001 City Bridge Improvements $ - $ 15,000 CITY OF PALO ALTO DETAILS FOR REAPPROPRIATED FUNDS IN THE FY 2021 ADOPTED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding CAPITAL IMPROVEMENT FUND Attachment C Page 1 of 6 ATTACHMENT C Project Project Revenue Expense Number Title Reappropriated from FY20 Reappropriated from FY20 CITY OF PALO ALTO DETAILS FOR REAPPROPRIATED FUNDS IN THE FY 2021 ADOPTED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding PE-20002 City Facilities Assessment and Record Plan Management System $ - $ 150,000 PE-86070 Street Maintenance $ - $ 1,491,843 PF-01003 Building Systems Improvements $ - $ 69,983 PF-02022 Facility Interior Finishes Replacement $ - $ 213,886 PF-07011 Roth Building Maintenance $ - $ 29,073 PF-14003 University Avenue Parking Improvements $ - $ 345,100 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements $ 1,539,000 $ 5,496,632 PF-17000 Municipal Service Center A, B, & C Roof Replacement $ 541,500 $ 1,900,000 PF-93009 Americans With Disabilities Act Compliance $ - $ 186,626 PG-06001 Athletic Courts Resurfacing $ - $ 138,775 PG-06003 Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities $ - $ 77,719 PG-09002 Park and Open Space Emergency Repairs $ - $ 89,255 PG-13003 Golf Reconfiguration & Baylands Athletic Center Improvements $ - $ 200,000 PG-14000 Ramos Park Improvements $ - $ 209,000 PG-14002 Cameron Park Improvements $ - $ 200,000 PG-17000 Baylands Comprehensive Conservation Plan $ - $ 6,500 PG-18001 Dog Park Installation and Renovation $ 150,000 $ 150,000 PG-19000 Park Restroom Installation $ 350,000 $ 350,000 PL-00026 Safe Routes To School $ - $ 35,000 PL-04010 Bicycle and Pedestrian Transportation Plan Implementation $ - $ 1,273,595 PL-05030 Traffic Signal and Intelligent Transportation Systems $ - $ 868,455 PL-12000 Transportation and Parking Improvements $ - $ 53,842 PL-14000 Churchill Avenue Enhanced Bikeway $ - $ 2,875,866 PL-15002 Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equip. $ - $ 1,289,860 Attachment C Page 2 of 6 ATTACHMENT C Project Project Revenue Expense Number Title Reappropriated from FY20 Reappropriated from FY20 CITY OF PALO ALTO DETAILS FOR REAPPROPRIATED FUNDS IN THE FY 2021 ADOPTED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding PL-15003 Parking District Implementation $ - $ 2,974 PL-16000 Quarry Road Improvements and Transit Center Access $ - $ 494,000 PL-16002 Parking Management and System Implementation $ - $ 513,000 PL-17001 Railroad Grade Separation and Safety Improvements $ - $ 3,065,425 PL-18000 El Camino Real Pedestrian Safety and Streetscape Project $ - $ 760,281 PL-20000 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements $ - $ 100,000 PO-05054 Street Lights Improvements $ - $ 135,887 PO-11000 Sign Reflectivity Upgrade $ - $ 75,000 PO-11001 Thermoplastic Lane Marking and Striping $ - $ 50,000 PO-12001 Curb and Gutter Repairs $ - $ 13,753 PO-89003 Sidewalk Repairs $ - $ 59,163 $ 6,412,039 $ 38,903,635 CB-16002 Cubberley Roof Replacements $ - $ 143,042 CB-17001 Cubberley Repairs $ - $ 725,178 CB-17002 Cubberley Field Restroom $ - $ 79,684 CB-19001 Cubberley Building Management Systems $ - $ 30,000 $ - $ 977,904 EL-02011 Electric Utility Geographic Information System $ - $ 220,000 EL-06001 230 kV Electric Intertie $ - $ 177,481 EL-11003 Rebuild Underground District 15 $ - $ 50,000 EL-11010 Underground District 47-Middlefield, Homer, Webster, Addison $ - $ 120,000 TOTAL CAPITAL IMPROVEMENT FUND REAPPROPRIATED AMOUNTS CUBBERLEY PROPERTY FUND TOTAL CUBBERLEY PROPERTY FUND REAPPROPRIATED AMOUNTS ELECTRIC FUND Attachment C Page 3 of 6 ATTACHMENT C Project Project Revenue Expense Number Title Reappropriated from FY20 Reappropriated from FY20 CITY OF PALO ALTO DETAILS FOR REAPPROPRIATED FUNDS IN THE FY 2021 ADOPTED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding EL-12001 Underground District 46 - Charleston/El Camino Real $ - $ 1,021,531 EL-14000 Coleridge/Cowper/Tennyson 4/12kV Conversion $ - $ 50,000 EL-14005 Reconfigure Quarry Feeders $ - $ 50,000 EL-16002 Capacitor Bank Installation $ - $ 300,000 EL-16003 Substation Physical Security $ - $ 415,852 EL-17005 Inter-substation Line Protection Relay $ - $ 190,429 EL-17007 Facility Relocation for Caltrain Modernization Project $ - $ 2,723,631 EL-19002 Colorado Substation Site Improvements $ - $ 330,000 EL-19004 Wood Pole Replacement $ - $ 1,475,000 TOTAL ELECTRIC FUND REAPPROPRIATED AMOUNTS $ - $ 7,123,924 FO-16000 Fiber Optics Network - System Rebuild $ - $ 775,000 TOTAL FIBER FUND REAPPROPRIATED AMOUNTS $ - $ 775,000 GS-13001 Gas Main Replacement - Project 23 $ - $ 620,046 TOTAL GAS FUND REAPPROPRIATED AMOUNTS $ - $ 620,046 SD-06101 Storm Drainage System Replacement And Rehabilitation $ - $ 1,822,475 SD-23000 West Bayshore Road Trunk Line Improvements $ - $ 5,000 TOTAL STORMWATER MANAGEMENT FUND REAPPROPRIATED AMOUNTS $ - $ 1,827,475 FIBER FUND GAS FUND STORMWATER MANAGEMENT FUND Attachment C Page 4 of 6 ATTACHMENT C Project Project Revenue Expense Number Title Reappropriated from FY20 Reappropriated from FY20 CITY OF PALO ALTO DETAILS FOR REAPPROPRIATED FUNDS IN THE FY 2021 ADOPTED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding TE-05000 Radio Infrastructure Replacement $ - $ 199,137 TE-12001 Development Center Blueprint Technology Enhancements $ - $ 452,600 TE-13004 Infrastructure Management System $ - $ 46,800 TE-19000 Enterprise Resource Planning Upgrade $ - $ 2,029,000 $ - $ 2,727,537 VR-18000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2018 $ - $ 630,000 VR-19000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2019 $ - $ 1,338,000 VR-20000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2020 $ - $ 2,268,000 $ - $ 4,236,000 WC-15001 Wastewater Collection System Rehabilitation/Augmentation Project 28 $ - $ 500,000 WC-16001 Wastewater Collection System Rehabilitation/Augmentation Project 29 $ - $ 2,126,424 WC-17001 Wastewater Collection System Rehabilitation/Augmentation Project 30 $ - $ 221,000 $ - $ 2,847,424 VEHICLE REPLACEMENT FUND TOTAL VEHICLE REPLACEMENT FUND REAPPROPRIATED AMOUNTS WASTEWATER COLLECTION FUND TOTAL WASTEWATER COLLECTION FUND REAPPROPRIATED AMOUNTS TOTAL TECHNOLOGY FUND REAPPROPRIATED AMOUNTS TECHNOLOGY FUND Attachment C Page 5 of 6 ATTACHMENT C Project Project Revenue Expense Number Title Reappropriated from FY20 Reappropriated from FY20 CITY OF PALO ALTO DETAILS FOR REAPPROPRIATED FUNDS IN THE FY 2021 ADOPTED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding WQ-14002 New Laboratory And Environmental Services Building $ 1,910,000 $ 1,333,460 WQ-14003 Primary Sedimentation Tank Rehabilitation $ 8,302,000 $ 8,148,800 WQ-19000 Outfall Line Construction $ 3,850,000 $ 3,850,000 WQ-19001 Secondary Treatment Upgrades $ 2,300,000 $ 838,300 WQ-19002 Plant Repair, Retrofit, and Equipment Replacement $ - $ 3,937,834 WQ-19003 Advanced Water Purification Facility $ 3,000,000 $ 448,000 $ 19,362,000 $ 18,556,394 WS-02014 Water, Gas, Wastewater Utility GIS Data $ - $ 436,000 WS-07000 Water Regulation Station Improvements $ - $ 209,000 WS-07001 Water Recycling Facilities $ - $ 391,020 WS-09000 Water Tank Seismic Upgrade and Rehabilitation $ - $ 5,093,000 WS-13001 Water Main Replacement - Project 27 $ - $ 2,500,000 WS-14001 Water Main Replacement - Project 28 $ - $ 585,107 WS-19000 Mayfield Reservoir Subgrade and Venting Repair $ - $ 184,879 $ - $ 9,399,006 $ 25,774,039 $ 87,994,345 WATER FUND TOTAL WATER FUND REAPPROPRIATED AMOUNTS TOTAL ALL FUNDS WASTEWATER TREATMENT FUND TOTAL WASTEWATER TREATMENT FUND REAPPROPRIATED AMOUNTS Attachment C Page 6 of 6 NOT YET ADOPTED 1 20200507cab027001 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Section 2.04.360 (Salary of council members) of the Palo Alto Municipal Code to Provide Optional Salary Waiver The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. Article III, Section 17 of the Charter of the City of Palo Alto provides that compensation may be paid to council members in amounts not to exceed those provided by general law. B. Council member salaries were last set in 2015 by Ordinance No. 5304, mandating a salary of one thousand dollars ($1,000) per month. C. General law permits council members to voluntarily waive part or all of their permitted compensation. Palo Alto does not currently provide a salary waiver option for council members. D. The proposed amendment would clarify that council members may voluntarily waive part or all of their salary, with no change to the amount of salary authorized for council members. SECTION 2. Section 2.04.360 (Salary of council members) of Chapter 2.04 (Council Organization and Procedure) of Title 2 (Administrative Code) of the Palo Alto Municipal Code is hereby amended to read as follows: “Section 2.04.360 Salary of council members (a) The salary of the council members shall be $600.00 per month. Effective January 1, 2017, the salary of the council members shall be $1,000 per month. (b) A city council member may waive any or all of the compensation permitted by this section.” SECTION 3. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. Attachment E NOT YET ADOPTED 2 20200507cab027001 SECTION 4. This ordinance shall be effective on the thirty‐first day after the date of its adoption. SECTION 5. The Council of the City of Palo Alto hereby finds that this is not a Project under the California Environmental Quality Act pursuant to Section 15378 of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: _____________________________ _______________________________ Deputy City Attorney City Manager _______________________________ Director of Administrative Services Attachment E