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HomeMy WebLinkAboutStaff Report 11376 City of Palo Alto (ID # 11376) City Council Staff Report Report Type: Action Items Meeting Date: 5/26/2020 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: FY 2021 Proposed Operating and Capital Budget Wrap-Up & Municipal Code Change Title: City Manager's Fiscal Year 2021 Proposed Operating and Capital Budget and Municipal Fee Schedule Wrap-up, and Adoption of an Ordinance Amending Section 2.04.360 of the Palo Alto Municipal Code to Allow Council Members a Salary Waiver Option From: City Manager Lead Department: Administrative Services Recommended Motion 1) The City Council review, discuss, and provide final direction to staff in regard to the City Manager’s Fiscal Year 2021 Proposed Operating and Capital Budgets and Fiscal Years 2021 Municipal Fee Schedule including the following amendments detailed below for staff to return on June 22, 2020 with the final FY 2021 budgets for City Council adoption. a) Direction on use of remaining fund balance in the City’s General Fund of $839,000 including the resolution of outstanding items currently in the “short-term parking lot;” b) Recommend staff return with the formal adoption of the City Manager’s FY 2021 Proposed Operating and Capital Budgets as amended by the actions outlined in Attachment A, Exhibit 1 and Exhibit 2; c) Recommend staff return with the formal adoption of the FY 2021 Municipal Fee Schedule (CMR # 11190) (https://www.cityofpaloalto.org/civicax/filebank/documents/76562) d) Recommend staff return with the formal adoption of the Table of Organization (Pages 339 – 356 in the FY 2021 Proposed Operating Budget) as amended by the above actions; e) Recommend staff return with the formal approval of the FY 2021 – FY 2025 Capital Improvement Plan as revised through Attachment A, Exhibit 2; 2) The City Council adopt the Ordinance (Attachment C) Amending Section 2.04.360 of the Palo Alto Municipal Code to Allow Council Members a Salary Waiver Option. A regular City of Palo Alto Page 2 majority vote is required to approve this ordinance which becomes effective 30 days after the second reading and final adoption. Executive Summary This memorandum summarizes changes to the City Manager’s Fiscal Year 2021 Proposed Budget through Budget Hearings with the City Council, includes additional information regarding the Fiscal Year 2021 Proposed budget, brings forth refined actions to revise the Fiscal Year 2021 Proposed Budget (replacing actions described in CMR 11322), and responds to questions raised by the City Council during the budget hearings. The report is organized by the following sections: 1. Proposed Operating Budget Revisions (Attachment A, Exhibit 1) 2. Proposed Capital Budget revisions (Attachment A, Exhibit 2) 3. City Council Parking Lot Items including short term parking lot items for Council consideration and direction and items recommended in the rebalancing strategy 4. Additional information about the proposed budgets including the public safety building, public online survey results, and management contributions 5. Municipal Fee Schedule revisions 6. Recommended Ordinance: Councilmember Salary Waiver (Attachment C) 7. Summary of City Council Review of the FY 2020-2021 Proposed Budget (actions, reference and future potential referrals) 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 last week, the City Council reviewed the FY 2021 Proposed Operating Budget along with City Manager’s Report #11322 and other materials and provided tentative approvals, changes, and areas for further follow up. Staff has compiled all the feedback gained, and through this staff report has refined the City’s budget balancing strategy including reduction proposals. Overall, the City’s General Fund is recommended to have $196.8 million in revenues and $195.9 million in expenses, leaving a surplus of $839,000. 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. Through this recommended balancing strategy, the City has been forced to prioritize essential services and pare back discretionary services. However, the recommended balancing strategy 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. City of Palo Alto Page 3 Based on refined review, the City Council discussion and guidance, as well as additional time for staff to solidify recommended actions, additional adjustments are included in this recommended strategy. Most significantly, these recommendations include recognition of over $3.0 million in expense savings because of recommended compensation reductions for Management /Professional employees, review of cost-recovery and partial restorations of services, additional costs for expected responses to the COVID-19 emergency and starting to reserve funds for outstanding liabilities. Specifically, the City Council directed certain service restorations including staffing in Planning and Development Services, the Police Department, and Community Services Department. The Council also placed several items in the short-term parking lot for review and further information as part of this wrap-up. This recommended balancing strategy includes both Council directed changes and some of the short-term parking lot items such as restoration of hours at the College Terrace Library, increased cost recovery and restoration of teen services, Arts Center, and Children's Theater activities, and staffing to align building inspections with the business community needs. All restorations are focused on how to provide resources economically and effectively to the community while observing the limitations of the current COVID-19 pandemic imposes. As a result, 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 revised proposed Capital Improvement Fund reflects a 56 percent reduction in General Fund support or $18.4 million in FY 2021 alone. These reductions maximize the availability of operating funds to retain services by reducing the General Fund Transfer and the General Capital Infrastructure Fund has been balanced to $1.5 million in fund balance over the five-year period. Since last week’s budget hearings, the City Manager and Director of Public Works have reviewed all General Fund projects in the proposed CIP, and confirmed that with the reduced 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. 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 first of those required readings.  City of Palo Alto Page 4 1) FY 2021 PROPOSED OPERATING BUDGET REVISIONS (ATTACHMENT A, EXHIBIT 1) The City Council reviewed in detail the FY 2021 Operating Budget considering the May 4 direction from the City Council to assume a more conservative revenue estimate reflecting a loss of $39 million in General Fund tax revenues in FY 2021. The City Council reviewed the FY 2021 Proposed Operating Budget along with City Manager’s Report #11322 and other at places materials over the course of public budget hearings that took place May 11 through May 13 and provided tentative approvals, changes, and areas for further follow up. Staff has compiled all the feedback from these proceedings, refined costings for reduction proposals, and certain additional revisions in this staff report. This report serves as the summary of all recommended changes from the FY 2021 Proposed Operating Budget as released on April 20, 2020 for Council review on May 26, 2020. These adjustments are outlined in detail in Attachment A, Exhibit 1. Recommended adjustments include aligning the Community Development Block Grant (CDBG) Fund with anticipated CARES revenue, recognizing savings associated with proposed reductions in compensation for the Management and Professional Group, and prioritized service restorations as directed through the budget hearings. Each of these is discussed below and organized by fund type. 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)(38,793) (38,793) - - - Other Economically Sensitive Departmental Revenue (5,000) (5,000) - - - $197,716 238,801$ 573.68 81.31 712,053$ 818,869$ 1,033.85 106.32 Adjustments by Service Area Neighborhood, Community & Library Services (297) (4,896) (16.10) (21.02) (297) (4,896) (16.10) (21.02) Public Safety 1,482 (7,257) (32.27) (2.28) 1,482 (7,271) (32.40) (2.28) Planning & Transportation (2,127) (3,267) (7.30) (1.44) (1,833) (2,973) (7.30) (1.44) Infrastructure & Environment - (2,795) (0.20) - (26,120) (19,239) (8.05) (0.48) Internal Services/Strategic Support - (2,875) (5.90) (0.96) (2,736) (5,472) (10.40) (0.96) Citywide Balancing Solutions - (21,776) - - (63,997) (25,189) - - (44,735) (42,866) (61.77) (25.70) (93,501) (65,040) (74.25) (26.18) -18.5%-18.0%-10.8%-31.6%-12.4%-7.9%-7.2%-24.6% 196,774$ 195,935$ 511.91 55.61 $618,552 $753,829 959.60 80.14 Net Surplus/(Deficit)839$ General Fund All Funds (w/ Internal Service Funds) SUBTOTAL CHANGES FROM FY 2021 PROPOSED BUDGET Citywide Revenue and Expenses (as of May 26th CC Discussion) Overall, this balancing strategy would reduce the City’s staffing by 74.3 full-time positions from the FY 2021 Proposed Operating Budget level of 1,033 and 26.2 FTE of part-time staffing. In the General Fund, full-time staffing is recommended to be reduced by 61.8 positions and part-time staffing by 25.7 FTE positions. Across all funds, after the public budget hearings last week, staff has diligently worked to refine the anticipated cost/savings estimates associated with the recommended balancing strategy proposals. These have been revised and are included in Attachment A. All changes tentatively approved by the City Council through the initial budget hearings as well as the refined costings for reduction proposals to best inform conversations about service delivery impacts are detailed in Attachment A. As such, Attachment A refines and replaces the actions described in City of Palo Alto Page 5 Exhibits 1 and 2 of Attachment A to CMR 11322, which is now out-of-date based on the additional activity and work of the past week. General Fund Overall, the City’s General Fund is recommended to have $196.8 million in revenues and $195.9 million in expenses, leaving a surplus of $839,000. 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 surplus of $839,000 may be allocated as the Council sees fit; funding could be used to offset any recommended changes or restorations of services not in the balancing strategy or could be allocated to assist in the rebuilding of the Budget Stabilization Reserve (BSR). The recommended balancing strategy 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. There is no illusion that there are significant service impacts outlined in the balancing strategy. We recognize that times are unprecedented, and the details contained in this staff report are tough choices that we would prefer not to be outlining. The City has been forced to prioritize essential services and pare back discretionary services. The City acknowledges that many of these discretionary services have contributed to the unique character of the Palo Alto community. From a citywide standpoint, these service level reduction options include creative strategies, changes in how we approach City services and different staffing models, and efficiencies, where possible. However, service impacts are unavoidable when more than 60% of the City’s General Fund budget is attributed to the outstanding workforce delivering the City’s services every day. During Budget Hearings on May 12 and May 13, the City Council took tentative actions that impacted the FY 2021 Proposed Operating Budget by majority vote. They also moved by 3 votes to place certain follow-up items in a “short-term” or “long-term” parking lot. Both are outlined later in this memorandum. A brief discussion of those tentative actions that amended the strategies outlined by staff are included here; detailed information on the transactions can be found in Attachment A (Revisions to FY 2021 Proposed Operating and Capital Budget). At the beginning of the Budget Hearings, it was anticipated that there would be approximately $930,000 in savings in the General Fund that the City Council could guide the allocation of. In this revised strategy, there is $839,000 remaining for City Council deliberation and further direction. City of Palo Alto Page 6 Changes Tentatively Approved by the City Council On May 12, 2020 the City Council voted to eliminate the remaining FY 2021 City Council Contingency ($95,000) and the Innovation and Special Events Contingency ($50,000). These yielded net savings of $145,000. (The City Council Contingency was adjusted from $125,000 to $95,000 in CMR # 11322). The City Council also voted to reduce the General Fund Transfer to the Capital Improvement Fund from $7.6 million to $6.0 million, and to contribute that saved $1.6 million to the Section 115 Pension Trust (PARS) Fund. The actions taken in the Capital Improvement Fund to generate these savings are shown below in Staff Recommended Changes to the Capital Improvement Budget. On May 13, 2020, the City Council voted to delay the opening of the Junior Museum and Zoo from October 2020 to March 2021 and to charge an $18 entrance fee, expected to save $224,000. They also voted to restore the Long-Range Planning and Housing Program, which would cost $273,823. The City Council directed staff to find another $1.0 million in one-time Capital Improvement Program savings in FY 2021, with the intent to further lower the transfer from the General Fund to the Capital Improvement Fund. On May 13, 2020 the City Council directed staff to explore the restoration of $1.0 million in services for Police and CSD, using 60% and 40%, respectively, of that $1.0 million. The actions taken in the Capital Improvement Fund to generate these savings are shown below in Staff Recommended Changes to the Capital Improvement Budget. At the end of the Budget Hearings, approximately $1.0 million in savings was anticipated in the General Fund, which could be used to modify the service delivery levels contemplated in the FY 2021 Proposed Operating and Capital Budgets most likely to be addressed through the outstanding items in the “short-term parking lot.” The transactions described above, including some restoration of items in the “short-term parking lot,” are detailed in Attachment A – Revisions to FY 2021 Proposed Operating and Capital Budgets, which replaces CMR 11322 as the authoritative source of modifications to the Proposed Budgets. This reflects the overall revised surplus of $839,000. Additional Changes Recommended Based on refined review, the City Council discussion and guidance, as well as additional time for staff to solidify recommended actions, several additional adjustments are included in this recommended FY 2021 balancing strategy. Most significantly, this strategy includes recognition of over $3.0 million in expense savings because of recommended compensation reductions for Management /Professional employees, review of cost-recovery and partial restorations for various Community Services and Library Department programs, additional costs for expected responses to the COVID-19 emergency and starting to reserve funds for outstanding liabilities. The section below outlines the significant changes based on staff and City Council feedback. City of Palo Alto Page 7 Compensation Reductions for Management/Professionals Group This action recognizes savings associated with compensation reductions for the Management and Professionals Group, an unrepresented bargaining unit with employees across the organization. This 15 percent compensation reduction is anticipated to generate $3.5 million in savings in the General Fund and approximately $5.4 million in all funds. The City continues to work with its represented bargaining groups to proactively address and mitigate potential service delivery impacts and adverse personnel impacts. Details on this proposed change are provided in section 4, “Additional Information” later in this report. Service/Funding Restorations Through the City Council Budget Hearings, certain service restorations were directed by the City Council either through action or through inclusion in the short-term parking lot. Some of these (including Community Services and Library’s College Terrace as well as Building and Fire Inspections) are discussed in the ‘short-term parking lot’ section elsewhere in this memorandum. The City Council also directed that $1.0 million be spent on service restorations in the Police Department ($600,000) and the Community Services Department ($400,000). Based on this City Council guidance, as well as additional staff work in anticipation of the recovery efforts because of COVID-19, the following service restorations are included in the recommended balancing strategy: • Police: Service restorations prioritize efficiently reinstating resources to ensure sworn officers can be focused on patrol and other collateral duties while all administrative procedures are completed more cost effectively by civilian staffing. As such, it is recommended to reinstate staffing in the Information Management, Animal Services, and Investigations divisions. With this funding, regular lobby hours and the processing of requests for data or reports will resume, animal control services will comply with contractual obligations to other jurisdictions, and property and evidence services (including lost/found property follow-up) will be maintained by civilian staffing. These potential gaps in service will no longer be filled by Police Officers on an ad hoc basis so they can stay focused on emergency response. potential gaps in service will no longer be filled by Police Officers on an ad hoc basis so they can stay focused on emergency response. • Community Services Department: Service restorations focus on resources that will provide the highest value the community for the duration of the COVID-19 pandemic, outdoor recreation and open space preserves. These resources are immensely popular with our community, hosting approximately 845,000 visits in FY 2019, and safe outdoor recreation will remain in high demand as we continue to follow social distancing protocols. Originally in CMR # 11322 staff proposed eliminating funding for contracted rangers that patrol, empty trash receptacles, and close open spaces to the public at night. In response to Council’s motion to restore services staff proposes retaining approximately 25% of contracted ranger services, which will be leveraged to maintain these services in part. Other service restorations include approximately $250,000 of the City of Palo Alto Page 8 park maintenance contract, which represents a 25% reduction, as opposed to the 50% originally brought forward in CMR # 11322. A 25% reduction in this contract will moderately reduce aesthetic maintenance such as clearing of weeds, while continuing to prioritize safety-focused maintenance. • Library Department: Staff recommends all five (5) Library branches remain open, however, with reduced operating hours at each location. This contrasts with the prior proposal which reduced hours and operations at select libraries. This action recommends three of the five libraries operate as “neighborhood” libraries (open 3 days a week) and two of the five libraries operate as “full-service” libraries (open 6 days a week). Staff is also prepared to discuss with the City Council an alternative method of increasing neighborhood access to library materials beyond limited branch hours. • Preparations for COVID-19 Recovery and Return: In light of the changing landscape of this public health emergency and the guidelines set out by the State of California and Santa Clara County, staff is recommending funding of $1.2 million in FY 2021 to support continued responses to these efforts. Funding will assist in providing the continued daily updates and coordination with residents and the business community; partial funding for the current unfunded request for contact tracing employees; and workplace alterations to address new social distancing and physical environment requirements. Lastly, to ensure our teams are equipped to address the expected changes in services delivery, it is recommended that we retain the current replacement cycle for computers, since they are used by most employees daily, instead of extending it to 5+years and that staffing be restored in the City Clerk’s Office, which remains critical to running virtual public meetings for the organization. The virtual meetings are a key component to our public work. • Reserve for Liabilities: Establishment of a litigation reserve of $1.25 million is included in keeping with the City's practice of proactively setting aside funds for dispute resolution. Enterprise Funds Changes Tentatively approved by the City Council 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 • 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) City of Palo Alto Page 9 • 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 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% 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% 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% increase for Gas to enable continuation of the cross-bore safety inspection program and PVC gas main replacement project. Other 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). 2) FY 2021 PROPOSED CAPITAL BUDGET REVISIONS (ATTACHMENT A, EXHIBIT 2) General Capital Improvement Fund Since last week’s budget hearings, the City Manager and Director of Public Works have 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. City of Palo Alto Page 10 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. To generate these savings in the Capital Improvement Fund a number of projects are recommended to be reduced as shown in the table below. Project Fiscal Year Funding Adjustment Downtown Parking Garage (PE-15007) expense reduction Cancellation of current design contract FY 2020 ($1.0 M) Sidewalk Repairs (PO-89003) expense reduction Current year estimated savings to reduce reappropriation to FY 2021 FY 2021 ($0.7 M) Byxbee Park Completion (PE-18006) expense reduction Current year estimated savings to reduce reappropriation to FY 2021 FY 2021 ($0.3 M) Off-Road Pathway & Repairs (OS-09001) expense reduction Current year estimated savings to reduce reappropriation to FY 2021 FY 2021 ($0.2 M) Americans with Disabilities Act Compliance (PF-93009) expense reduction Current year estimated savings to reduce reappropriation to FY 2021 FY 2021 ($0.2 M) Dog Park Installation & Restoration (PG-18001) revenue increase Recognize impact fees to align with project expenses FY 2021 ($0.2 M) Total Adjustments ($2.6 M) Various Capital Improvement Funds 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 the following funds: City of Palo Alto Page 11 Fund Recommended Additional Reappropriation from FY 2020 to FY 2021 Capital Improvement Fund $1,118,216 Electric Fund $3,407,815 Fiber Fund $775,000 Gas Fund ($250,001) Stormwater Management Fund $5,000 Technology Fund ($35,463) Wastewater Collection Fund $1,057,424 Wastewater Treatment Fund $13,366,025 Water Fund $4,244,357 Total All Funds $23,688,373 In total, reappropriations of an estimated $88.0 million are above those assumed in the FY 2020 Adopted Capital Budget of $71.4 million. These adjustments, as 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. The General Capital Improvement Fund Revised 2021-2025 CIP Source and Use is also included as Attachment B to display all of the changes to the Capital Improvement Fund from the FY 2021 Proposed Capital Budget. 3) CITY COUNCIL BUDGET PROCESS ‘PARKING LOT’ SUMMARY Throughout the Budget discussions, the City Council has requested certain items be placed in the “short-term parking lot.” These are items for which the Council either wished to revisit funding levels or asked for additional information. Several items were already responded to as part of the budget deliberations and provided in various at places memorandum. The remaining outstanding items have been outlined below. They are organized by the areas that are already included in the overall balancing strategy discussed earlier in this report and by the items that still need City Council review, deliberation, and potential action. City of Palo Alto Page 12 Short Term Parking Lot Items for Council Consideration and Direction During the City Council budget hearings, the City Council voted to place items in the “short- term parking lot” for staff to return with additional information or to revisit as part of the final balancing. Staff has outlined these items with additional information or a reminder of the action the City Council took for further deliberation. Should the City Council wish to restore or adjust the funding levels of any of these items, a majority vote from the Council would be necessary. Strategy to manage attrition in Police and Fire 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). 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 a majority vote from the City Council to be added. Revisit funding for the Transportation Management Association (TMA) On May 13, 2020 the City Council moved that the Transportation Management Association (TMA) annual funding of $750,000, funded by the University Avenue Parking Fund, be revisited as part of the “short-term parking lot.” Annually the City contracts with the TMA and this budget continues current funding levels from FY 2020 to FY 2021. Regardless of the funding set aside, the City manages funding of the TMA through the contract with the TMA which would require an amendment, approved by the City Council, for this coming fiscal year. As part of the contractual agreement with TMA, an annual report must be provided. The most recent annual report has been released as an information item to the City Council in City Manager’s Report 11307 This funding was included in the FY 2021 Baseline Budget and remains included, subject to further discussion and direction from the City Council. At the time of the printing of this report, the TMA is reviewing its funding request and has indicated it will be reducing its requested funding considering the current financial circumstances the City faces in the wake of COVID-19. City of Palo Alto Page 13 Revisit funding for City Council minutes transcription ($35,000) On May 13, 2020 the City Council moved to revisit funding for City Council minutes transcription to the “short-term parking lot.” This funding was reduced through the actions detailed in City Manager’s Report #11322 as part of the overall balancing strategy and remains included as a reduction in Attachment A pending further discussion and direction from the City Council. It would require a majority vote from the City Council to be restored. Revisit funding for cost of printing City Council materials ($35,000) On May 13, 2020 the City Council moved to revisit funding for printing City Council materials to the “short-term parking lot.” This funding was eliminated through the actions detailed in City Manager’s Report #11322 as part of the overall balancing strategy and remains included as a reduction in Attachment A pending further discussion and direction from the City Council. It would require a majority vote from the City Council to be restored. Revisit funding for YCS Youth Connectedness Initiative ($50,000) On May 13, 2020 the City Council moved to revisit funding for the YCS Youth Connectedness Initiative to the “short-term parking lot.” This funding was scheduled for elimination beginning FY 2021 through the actions City Council approved in the FY 2020 Adopted Budget and actions reviewed in City Manager’s Report #11322 as part of the overall balancing strategy but because of Council’s interest in continuing to support this program, staff have brought back a proposal to provide $25,000 in funding. It would require a majority vote from the City Council to be fully restored at an additional cost of $25,000. Short Term Parking Lot Items Included in the Recommended Balancing Strategy (outlined in Attachment A) During the City Council budget hearings, the City Council voted to place certain items in the “short-term parking lot” for staff to return with revised strategies for reinstatement of some services. Based on the City Council discussion and guidance as well as staff’s review of resources and service delivery models, the below items were reviewed and restored as part of the recommended balancing strategy and are included in Attachment A. Should the City Council wish to adjust these service levels, a majority vote from the Council would be necessary, however, if the City Council agrees with these changes in service, no action is necessary. Revisit funding through additional cost recovery and/or partial funding for teen services ($400,000), Art Center ($400,000), College Terrace Library ($168,000), Baylands Interpretive Center ($22,000), and Children’s Theater (includes restoration and/or rebalancing of library hours) On May 13, 2020 the City Council moved that staff revisit funding through additional cost recovery and/or partial funding teen services, Art Center and Children’s Theater, College Terrace Library and Baylands Interpretive Center as part of the “short-term parking lot”. Staff have developed a plan to address each of the items included in this motion, which is briefly discussed below. These program restorations have been included as part of the recommended City of Palo Alto Page 14 balancing actions as detailed in Attachment A. The Council need not take specific action on these items if in agreement, only if they wish to change the restorations outlined below. • Teen Services: Staff proposes increasing cost recovery and recognize approximately $43,000 in new revenue from participation and membership fees (such as a $10 monthly membership fee for The Drop teen center at Mitchell Park) and $30,000 in new donations to support teen services, this is offset by adding $200,000 in programming expenses. The services proposed to continue are: Teen Advisory Board, Palo Alto Youth Council, Recreation Counselor in Training (CIT) Program, MakeX, Art Center Teen Leadership Group, Teen Arts Council, Think Fund, and re-opening The Drop teen center in January 2021. This action includes retaining programming funded by Bryant Street Garage lease revenues. • Art Center/Children’s Theater: Staff proposes to increase cost recovery at the Art Center and recognize new revenue from participation fees for workshops and programs and entry fees for an annual juried exhibition. This proposal maintains partial capacity for exhibitions, school programming support, and visual arts, and still maintains classes and camps for youth and adults and studio classes. Staff proposes limited expense restorations for Children’s Theater that would allow two core productions and up to nine smaller productions per year. This proposal continues to contemplate reduced ticket sales, class, and camp revenue due to social distancing protocols limiting group sizes. revenue due to social distancing protocols limiting group sizes. • Baylands Interpretive Center: Staff proposes restoration of approximately 50% of public open hours and $7,000 in commensurate expenses. Staff are also actively reaching out to community and non-profit partners to leverage public support to fully restore operating hours. • College Terrace Library: Staff proposes keeping all five (5) Library branches open, however, with reduced operating hours at each location. This is in contrast to the prior proposal which reduced hours and opening at select libraries. This action reduces: o Neighborhood Libraries – Children’s, College Terrace, Downtown –to operating three (3) days per week; and o Full-Service Libraries – Mitchell Park, Rinconada –to six (6) days per week, with Rinconada Library closing at 6pm every day. This will result in Children’s Library transitioning from a Full-Service library to providing Neighborhood Libraries level of service, which includes fewer programs and special events, such as service levels at the Downtown Library. Library staff will rotate through branches ensuring adequate coverage and support. City of Palo Alto Page 15 Revisit funding for Building Inspection and Fire Inspection Budget Adjustments On May 13, 2020 the City Council moved to revisit adjustments to the Building and Fire Inspection Budget proposal as part of the “short-term parking lot.” In City Manager’s Report #11322, staff recommended a reduction in consultant inspection services by 50 percent and staffing resources in the Fire Inspection division that would result in longer wait times and an inability to provide next day inspection services. In this report, staff recommends supplementing the existing proposal with the elimination of 1.0 Planning Manager and addition of 2.0 Building Inspector Specialists (1.0 on a one-year limited term). The additional inspection staff will reduce the impact to customer service and development progress. The duties of the eliminated Planning Manager will be consolidated with existing management staff within the department. Short Term Parking Lot Items Already Addressed by the Council and/or Staff During the City Council budget hearings, the City Council voted to place certain items in the “short-term parking lot.” The list below is reflective of short-term parking lot items that have already been addressed throughout the Budget Hearings. These materials have all been posted on the City’s budget website and can be found at www.cityofpaloalto.org/budget • Summary of Cubberley lease finances • List of current City leases and the $/sq. ft • Revised General Fund budget reconciliations • Detailed funding for the new Public Safety Building (revenues and expenses) • Updated Library Statistics • Additional information regarding teen services • Revisit CIP reductions (the City Council took an action to request staff find an additional $1M in General Fund dollars as outlined above in this report) 4) ADDITIONAL INFORMATION PERTAINING TO THE FY 2021 PROPOSED BUDGET During the City Council budget hearings, requests for additional information were made by the City Council. This section addresses the City Council’s requests regarding the Fiscal Year 2021 Proposed Budget as well as additional information that may be of assistance to Council in their decision-making process. Public Safety Building Capital Project The COVID-19 emergency informs the context of staff’s recommendation to proceed with the Public Safety Building (PSB) project. This is a volatile time for the construction market, and staff is positioning the PSB project to leverage the market conditions should it be advantageous. The three principal variables to consider are shovel-readiness, bidding strategy, and financing strategy. City of Palo Alto Page 16 Shovel-readiness: It is important to complete the remaining pre-bid work on the project so that it is “shovel-ready” and can be bid at the most opportune time. The design team is currently addressing plan review comments from the second round of plan review and expects the bid documents to be complete by mid-June. The design team is currently addressing plan review comments from the second round of plan review and expects the bid documents to be complete by mid-June. Bidding strategy: Construction market impacts in the current economy may provide an opportunity for lower bids on the PSB project. It is important that bids are received from contractors who have the experience and capability to successfully deliver the project. A prequalification process completed in early 2020 resulted in prequalification of two contractors. Staff is considering reopening the prequalification with a goal of receiving additional prequalification packages from other contractors who meet qualifications but were uninterested in participating during the earlier process. These contractors may now have fewer upcoming opportunities and decide to participate in the PSB bidding process. Staff is monitoring the construction cost environment to determine when to bid the PSB project. It is not possible to predict when costs will be at their lowest, but staff will monitor regional trends and bid prices received on other projects. It is also possible to “test the market” with bids and use the bids received as a decision point. Financing strategy: PSB construction in the proposed FY 2021 capital budget is funded through Certificates of Participation (COPs). Debt service on the PSB COPs is budgeted to begin in FY 2022, and to be funded by Transient Occupancy Tax (TOT) revenues. Current TOT revenue estimates in the proposed budget are sufficient to fully support the combined debt service for the PSB and the California Avenue Parking Garage by FY 2023, but staff acknowledges the risk in relying on future TOT revenues to support debt service at this time. Staff may also consider capitalized interest as part of the debt issuance which would delay the start of debt service payments to FY 2024 if necessary. Lower than forecasted TOT revenues could require future reprioritizing of the CIP. Additionally, staff needs to do further evaluation of the current economic climate on the market for COPs. This will include taking the proposed COPs to the rating agencies to obtain updated information on financing costs that will inform the decision of whether to proceed or to delay bidding, and the City Council will have the opportunity to determine whether to proceed. In summary, staff is aware of the factors involved in proceeding with the PSB and is developing a strategy that involves bringing the project to the “shovel-ready” point very soon, while analyzing the construction market and financing implications to determine the best timing for bidding the project. City of Palo Alto Page 17 Public Survey Results The City launched an online survey to gain community feedback on the City’s budget discussions underway. Open from May 5 to May 13, the online survey had several goals including informing the community on the City’s budget discussions underway, gaining input on City Service Area priorities as the Council weighed service level reductions and requesting additional feedback on City services important to the community overall. Over that period, the City received 1369 visits to the online survey portal with over 990 specific responses. The chart below provides the input received, reflecting the top three City Service Areas as Public Safety, Neighborhood, Community and Library Services and Infrastructure and Environment. Go here for the full report including all community comments received. Management Contributions For unrepresented Management and Professional employees, the City Manager is recommending a reduction equivalent to 15% compensation. The reduction includes 26 furlough closure days (one furlough closure day every two weeks), for a total of 208 furlough hours for the year.1 Management and Professional salaries will also be frozen, which means cost of living increases, merit awards, and in-range adjustments will not be granted. Management and Professional employees will also contribute $1,250 (equivalent to approximately 0.5% of salary) from their flexible management benefit, which is an IRS Section 125-complaint allowance. This benefit provides reimbursement for dependent care assistance for children under age 13 or other dependents incapable of self-care, medical flex spending for non-covered medical expenses, 457 savings accounts, job-related professional development expenses or health and wellness activities. 1 Due to layoffs, the elimination of hourly support staff and service changes due to COVID-exposure adjustments, it will be necessary to close non-emergency facilities for scheduled furlough closure days. Given the minimal staffing levels, it is not feasible to absorb furlough hours in a manner that ensures the health and safety of services to the community, unless service hours are reduced. City of Palo Alto Page 18 As announced at the City Council meeting on May 18, City Manager Ed Shikada voluntarily offered a reduction of 20% in his compensation as a contribution towards addressing the City’s fiscal challenge for next fiscal year. The reduction includes 26 days of furlough, which is equivalent to 10% compensation, a salary freeze (valued at 4.5% based on historical adjustments of City Manager pay), and a contribution of $1,250 (equivalent to approximately 0.5% of salary) from his management flexible spending account. In addition to the furlough, salary freeze and flex spending contribution, the City Manager is donating 100 hours from his leave balance (equivalent to 5% of his salary). The City Manager’s leave will be converted to a donation bank for employees who do not have leave hours. City Attorney Molly Stump has voluntarily offered a reduction of 15% in compensation, including 26-days of furlough, a voluntary salary freeze, and a reduction of $1,250 from her management flex spending account. Restated Department Reconciliation Tables for General Fund During the City Council’s May 13th hearing on the FY 2021 Budget, the City Council directed staff to restate the General Fund department budget reconciliations as they appear in the FY 2021 Proposed Operating Budget book. That provided these at the May 13th Council meeting. However, in the spirit of the request, staff has once again updated these tables and attached a version current to the actions recommended in this memorandum. These revised ‘Budget Reconciliations’ are Attachment D. It is anticipated that they will help clarify the additional actions after the FY 2021 Proposed Budget. It is critical to note that these reconciliations exclude certain central items, such as but not limited to reductions for Internal Service Funds, contributions to the section 115 Pension Trust Fund, and lower OPEB costs, which will ultimately be distributed across various departments through the budget process. Nonetheless, the revised reconciliations attached are for presentation and information only and present the information transmitted in the FY 2021 Proposed Budget and in this staff report in one place for ease of reference as the Council continues conversations about the FY 2021 Budget. 5) FY 2021 MUNICIPAL FEE SCHEDULE REVISIONS 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 here are the summary of all changes recommended in addition to those outlined in the FY 2021 Proposed Municipal Fee Schedule presented in CMR #11190. The additional fee revisions can be found in the Community Services Department as follows. City of Palo Alto Page 19 NEW FEES: Department Fee Title FY 2021 Proposed Fee Cost Recovery Level Community Services Teen Center Monthly Membership Fee $10.00 each Low Community Services Ticketed Admission Fee (JMZ) $2.00 - $24.00 per person High (est. 85%) Community Services Family Membership (JMZ) $150.00 - $430.00 each High (est. 76%) To provide some cost recovery of teen programming, a new fee is recommended for membership to the Teen Center, The Drop, at Mitchell Park: $10 monthly membership fee. Note, The Drop is currently anticipated to be closed through December 2020 due to COVID-19. The Drop is currently anticipated to be closed through December 2020 due to COVID-19. In anticipation of the opening of the new Junior Museum and Zoo (JMZ) staff expects to implement both admission fees as well as membership fees. The above new fees provide ranges and articulate the estimated cost recovery level of the JMZ at these prices. It is expected that these fee ranges will enable both a resident and a non-resident rate for these charges as well as other rate offerings as outlined in the JMZ staff report and presentation made on May 12, 2020. Currently the JMZ is not expected to reopen until March 2021. CHANGED FEES: To increase cost recovery levels and restore some programs most specifically at the Palo Alto Art Center, administration fee per registration is recommended to be increased from $0-$29 each to $0-$50 each. This fee will be used for teen workshop and leadership program fees (estimated at $50) and juried exhibition entry fee (estimated at $35) which is assessed when participants enter a piece in an art competition hosted by the city. teen workshop and leadership program fees (estimated at $50) and juried exhibition entry fee (estimated at $35) which is assessed when participants enter a piece in an art competition hosted by the city. Fee Title FY 2020 Adopted FY 2021 Proposed % Change Justification Administration Fee Per Registration $0.00 - $29.00 each $0.00 - $50.00 each 72.41 % Staff recommendation City of Palo Alto Page 20 6) 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 C 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. 7) SUMMARY OF CITY COUNCIL REVIEW OF FY 2021 PROPOSED BUDGET (ACTIONS, REFERENCE, AND FUTURE POTENTIAL REFERRALS) City Council Tentative Motions and Materials Distributed (Actions and Reference Materials) Action minutes to the City Council budget hearings are not yet available at the time of this memorandum’s printing. It is anticipated that Action Minutes will be transmitted At Places for the May 26th Wrap-Up Meeting. Through the City Council Budget Hearings, various memoranda were distributed At Places to respond to inquiries made by the Council, provide additional pertinent information at staff’s behest, or recommend amendments to the FY 2021 Proposed Budget. In addition, presentations were provided at each hearing providing high level overviews of each item. Specific meetings and reference links to materials from those meetings are outlined below. May 11, 2020 City Council Meeting – Overview Presentations: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=72973.7&BlobID=76618 Video: https://youtu.be/_QHKjfshr08?t=11887 At Places and Other Relevant Memorandum: − CMR 11322 https://www.cityofpaloalto.org/civicax/filebank/documents/76585 − Procedural Guidelines for City Council Consideration https://www.cityofpaloalto.org/civicax/filebank/documents/76600 May 12, 2020 City Council Budget Hearings – Overview, General Fund Capital Budget, Public Safety, and Community Services Presentations: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=64205.87&BlobID=76664 Video: https://www.youtube.com/watch?v=f3ay8sryy2k At Places Memorandum: − Junior Museum and Zoo Adjustments for Municipal Fees (https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=48356.58&BlobID=76623) City of Palo Alto Page 21 May 13, 2020 City Council Budget Hearings – Continuation of May 12, Municipal Fee Amendments, Planning and Transportation, Infrastructure and Environment, and Government and Administration/Internal Service Departments Presentations: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=61002.64&BlobID=76659 Video: https://www.youtube.com/watch?v=WOfjH1sLreM At Places and Other Relevant Memoranda: − Additional Information: City’s List of Lease Information, Cubberley Information, Library Statistics and Bryant Street Garage and Teen Programming https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=60199.74&BlobID=76655 − Municipal Fees CMR #11190 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=59261.4&BlobID=76562 − Office of Transportation, Residential Preferential Parking Program (RPP) Revisions https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=57732.97&BlobID=76652 − Public Safety Building Capital Project Funding and Revised General Fund Reconciliations https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=85277.09&BlobID=76680 Future Follow-Up (Potential Referrals) 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 potential referral items from the Budget Hearings; if the City Council so chooses, these may be formalized as referrals for additional work from staff throughout FY 2021, as approved by a majority vote. It should be noted that these additional 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 2. Add to prior Council referral to Finance Committee regarding the ROTH building; evaluate the ability to fund the ROTH Building renovations through the General Fund (not to exceed $1 million) or impact fees, with the preference for impact fees. 3. A report or item on the JMZ and what it would look like to eliminate the General Fund Subsidy through a fully cost recoverable program. 4. Discussion of price changes and increases for employee permits in all garages and lots in the California Ave. district to be consistent citywide. Next Steps & Stakeholder Engagement The City Council will review a final proposed balancing strategy, on May 26 with final adoption of the FY 2021 Budget scheduled for June 22, 2020. The community is encouraged to continue to engage with the budget process through the scheduled public meetings. Meeting materials and other budget information can be found on our dedicated webpage at www.cityofpaloalto.org/budget City of Palo Alto Page 22 Environmental Review This is not a project under Section 21065 for purposes of the California Environmental Quality Act (CEQA). Attachments: • Attachment A: Exhibit 1 (FY 2021 Proposed Operating Budget Recommended Adjustments) • Attachment A: Exhibit 2 (FY 2021 Proposed Capital Budget Recommended Adjustments) • Attachment B: FY 2021 Proposed Operating Budget Recommended General Capital Improvement Fund Source and Use • Attachment C: Ordinance Amending Section 2.04.360 of the Palo Alto Municipal Code to Allow Council Members a Salary Waiver Option • Attachment D: FY 2021 Proposed Budget & CMR 11376 Revised General Fund Dept Reconciliations CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts Administrative Services Suspend City's Annual Performance Report This action reduces 1.0 Performance Auditor II position recently transferred from the City Auditor's Office to the Office of Management and Budget. This will require that the production of City's annual Performance Report be suspended. Office of Management and Budget - (169,343) (1.00) - - (169,343) (1.00) - Administrative Services Staff Reorganization and Service Reduction This action reduces resources in the procurement division by reducing 0.5 Administrative Associate and 0.4 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. This also recognizes savings associated with reducing the Budget Director, which is anticipated to be underfilled with a Budget Manager. This will somewhat diminish the ability of the Office of Management and Budget to perform comprehensive analysis and contribute to strategic initiatives for the organization. Purchasing - (185,582) (0.90) - - (185,582) (0.90) - 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 Accounting Specialists will be reduced as a result of this action. Accounting and Financial Reporting & Revenue Collection - (147,786) (1.50) - - (200,538) (2.00) - Administrative Services Printing Services This action restructures the City's printing services through a reduction in costs by approximately $110,000. Staff is evaluating adjustments to the City's copier leases. The General Fund portion of these savings is anticipated to be approximately $88,000 based on the allocation of printing costs across the City. Printing and Mailing Services - (87,787) - - (110,000) (213,789) - - Attorney Position Reductions This action reduces 0.50 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. Consultation & Advisory; Litigation & Dispute Resolution - (81,171) (0.50) - - (81,171) (0.50) - Attorney Travel, Training, and Supply Expense Reductions This action reduces the department's travel, training, and office supply budget from $89,000. This will reduce the department's capacity to maintain best practices, training, and pursue professional development opportunities, limit flexibility to take on new administrative projects and duties, and reduce resources available for office work. Business Operations - (47,342) - - - (47,342) - - GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Attachment A, Exhibit 1 Page 1 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Auditor Reduction in the City Auditor's Office 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. Performance Audits - (165,000) - - - (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. The reduction associated with printed packet materials is still included pending action of that item after it was placed in the 'short-term parking lot' by the City Council. Business Operations - (45,000) - - - (45,000) - - Clerk Contract Services Reductions This action reduces the department's contracts budget from $254,346. Contracts being reduced include those for advertising board and commission recruitments, public noticing, radio broadcasting of public meetings, and administrative hearing officers. The reduction associated with meeting minutes is still included pending action of that item after it was placed in the 'short-term parking lot' by the City Council. Various - (90,385) - - - (90,385) - - 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. City Council Services - (48,955) - - - (48,955) - - City Manager's Office Position Reductions 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. Various - (218,750) (1.00) - - (218,750) (1.00) - City Manager's Office Travel, Training, and Supply Expense Reductions This action reduces the department's travel, training, and office supply budget from $98,000. This will reduce the department's capacity to travel for city business such as regulatory and legislative advocacy and interagency coordination, limit flexibility to take on new administrative projects and duties, and reduce resources available for office work. Business Operations - (32,000) - - - (32,000) - - Attachment A, Exhibit 1 Page 2 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Community Services Position Reductions 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. Various - (585,750) (3.00) (0.48) - (585,750) (3.00) (0.48) Community Services Junior Museum and Zoo 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. 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 and acquiring new animals 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. (46,000) (224,990) - - (46,000) (224,990) - - Community Services Reduce Theater Programming and Support This action reduces programming at the Children's Theatre and reduces support for community theater productions. This action also reduces 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. Community Theater; Children's Theater (283,643) (721,254) (1.00) (5.09) (283,643) (721,254) (1.00) (5.09) Attachment A, Exhibit 1 Page 3 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET 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. Teen Services (50,000) (201,590) (1.00) (1.44) (50,000) (201,590) (1.00) (1.44) Community Services Art Center Programming Reductions This action reduces programming at the Palo Alto Art Center such as the scope of frequency of exhibitions, visual arts programming, and educational outreach, while retaining studio programs and classes for youth and adults. This action also recognizes additional revenue, which will be generated in the form of 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. Art Center (4,623) (452,084) (2.10) (2.16) (4,623) (452,084) (2.10) (2.16) Community Services Community Center Reductions This action reduces operating hours by one day per week at Mitchell Park Community Center, Lucie Stern Community Center, Cubberley Community Center, and the Palo Alto Art Center. This will result in diminished services across a wide range of activities including responding to customer inquiries, scheduling facility rentals, providing class and camp programming, oversight of invoice payment, and managing custodial needs. This action reduces 2.0 Program Assistant I and 1.27 of part-time FTE staff resources. Facility Management/ Recreation - (282,695) (2.00) (1.27) - (282,695) (2.00) (1.27) 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. Parks, Athletic Fields, & Courts Management; Recreation - (274,844) - - - (274,844) - - Attachment A, Exhibit 1 Page 4 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Community Services Community Program and Event Reductions This action will reduce funding for the Know Your Neighbors Grant (KYNG) program and special events such as May Fete and Chili Cook-Off. The KYNG provides grants up to $1,000 to dozens of community members annually for events that support community connections, such as block parties. Staff assigned to the management of these programs will be reassigned to other critical work in the department. Special Events (13,542) (154,404) - - (13,542) (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 0.39 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 it's a feature of the curriculum of Palo Alto Unified and Ravenswood School Districts. In FY 2019 Palo Alto's Open Space Preserves received approximately 845,000 visits. This action will result in fewer ranger patrols, delayed response to maintenance such as trail and campsite repairs, decreased capacity for litter removal and group rental site reservation support, and reduced support for science educational opportunities. Open Space; Recreation - (243,905) (1.00) (0.17) - (243,905) (1.00) (0.17) Community Services Human Services Funding Reductions This action eliminates the funding provided to the Santa Clara County Reentry Resource Center and decreases funding provided to Youth Community Services' Youth Connectedness Initiative by 50%. Human services funding remains available through the Human Services Resource Allocation Process (HSRAP) which is maintained at the funding level detailed in the FY 2021 Operating Budget. Human Services - (100,000) - - - (100,000) - - Community Services Middle School Athletics and Adult Sports Leagues Revenue Adjustments This action increases the participation fees for Middle School Athletics and Adult Sports Leagues by approximately 25%, from $260 to $325 and from $730 to $913, respectively. If participation remains steady, this action will generate revenue approximately commensurate with City expenses. Corresponding adjustments in the Municipal Fee Schedule are not required as both new values fall within FY 2020 adopted ranges and will remain consistent with levels in the FY 2021 Proposed Municipal Fee Schedule. Recreation 100,521 - - - 100,521 - - - 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 proposal reduces 0.40 FTE Fire Inspector in the Fire Department with a corresponding reduction in the Planning and Development Services Department. Inspections (PDS) - (93,297) (0.40) - - (93,297) (0.40) - Attachment A, Exhibit 1 Page 5 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Fire First Responder and Ambulance Subscriptions Fee The First Responder Fee would be charged for all EMS calls regardless of transport and would cover cost for initial response for first due engine. This fee would be assessed on insurance companies. The Ambulance Subscription Program is an optional fee for residents and businesses to secure co-pay free ambulance transport. Ambulance Transport Services & Emergency First Response 1,855,000 - - - 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. Emergency First Response (202,100) (831,555) (5.00) - (202,100) (831,555) (5.00) - 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 proposal assumes the elimination of 1.0 Administrative Associate II and freezes 1.0 Training Captain. In addition 0.2 FTE Deputy Director Technical Services that is shared with the Police Department will be frozen. Business Operations - (412,030) (2.20) - - (412,030) (2.20) - Human Resources Position 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. Business Operations - (236,001) (1.00) (0.96) - (236,001) (1.00) (0.96) 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. Technology Admin Services/ Software, Tech, Equip Maintenance - (533,630) - - (952,902) (1,905,804) (4.00) - Information Technology Reduction in Software and Equipment Support This action reduces the Citywide allocation for software replacement and may result in use of reserves or a resource impact to a department where replacement costs have not fully amortized. This reduction also contains costs that are no longer needed due to the City moving to an alternative platform, equipment being taken out of service, or alternative service delivery models being utilized. Application Maintenance and Replacement - (265,060) - - (473,325) (946,650) - - Attachment A, Exhibit 1 Page 6 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET 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. Technology Admin Services/ Software, Desktop Replacement - (521,244) - - (840,386) (885,986) Library Position Reductions This action reduces staffing for administrative support, information technology, and customer service. This action will decrease availability of Library staff and services such as reference services, readers advisory, public programs, and book clubs; decrease administrative support; increase time for re-circulating materials and responding to customer service inquiries; decrease coverage at Service Desks from two to one staff member; and adversely impact the Library's ability to manage special projects. 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. Various - (718,410) (3.00) (4.14) - (718,410) (3.00) (4.14) Library Reduced Library Hours & 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. Various - (694,616) (3.00) (6.27) - (694,616) (3.00) (6.27) Attachment A, Exhibit 1 Page 7 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Library Travel, Training, and Materials Expense Reductions This action reduces the department's travel and training budget and contracts from approximately $90,000 to $8,000 and reduces the department's new material (books) acquisition budget from $700,000 to $550,000 for two years. This will reduce the department's capacity to attend conferences and pursue other professional development opportunities, decrease the number of new books that can be purchased in response to patron or commission requests, and increase wait time customers experience for new books. Physical book circulation has been trending downward since 2018 while electronic resource utilization is trending upward. Access to Collections; Business Operations - (241,500) - - - (241,500) - - Office of Emergency Services Position 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. Emergency Services & Project Safety Net - (98,204) (1.00) - - (98,204) (1.00) - Office of Emergency Services Intrusion Detection Systems (IDS) Reduction This action reduces funding for IDS camera systems along the Caltrain corridor from $440,000 to $380,000; maintaining fiber and monitoring services, and reducing maintenance to essential needs. Emergency Services & Project Safety Net - (60,000) - - - (60,000) - - Office of Transportation Position 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. Business Operations - (29,678) - (0.48) - (29,678) - (0.48) Office of Transportation Free Shuttle Service Elimination This action eliminates the free Crosstown and Embarcadero Shuttles. Staff previously assigned to the shuttle program will be reassigned to other key transportation projects. The shuttles connected the University Avenue/Downtown to South Palo Alto at Charleston Road and provided peak hour service between the University Avenue Caltrain Station and the Baylands Business Parks east of Highway 101/Embarcadero. This action will reduce free alternative transportation options to residents of and visitors to Palo Alto, including senior citizens and local students. The Crosstown and Embarcadero shuttles provided 104,929 rides in FY 2019. Shuttle - (538,333) - - - (538,333) - - Attachment A, Exhibit 1 Page 8 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Planning and Development Services Administration and Program Assistance 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. Administration - (450,691) (2.00) (0.48) - (450,691) (2.00) (0.48) Planning and Development Services Current Planning and Development Services Front Counter 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 Current Planning (486,607) (736,897) (2.00) - (486,607) (736,897) (2.00) - Planning and Development Services Code Enforcement This action reduces 2.0 Code Enforcement Officer positions, resulting in limited responses to the highest priority health and safety-related cases and slower response times. Implementation of the Code Enforcement Audit recommendations will be de-prioritized. Code Enforcement - (264,546) (2.00) - - (264,546) (2.00) - Planning and Development Services Building Inspection and Plan Review 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. Building Inspection and Plan Review (1,335,306) (401,295) 1.00 - (1,335,306) (401,295) 1.00 - Planning and Development Services Fire Inspection and Plan Review This action reduces a total of 2.0 Fire Inspector positions in the Fire Prevention Bureau (0.40 allocated to the Fire Department), which will delay fire inspections, increase wait times and impact customer service overall. A corresponding reduction is recommended for associated fee revenue. Fire Inspection and Plan Review (529,424) (531,561) (1.60) (0.48) (529,424) (531,561) (1.60) (0.48) Planning and Development Services Green Building This action reduces consulting services for green building programs, energy programs, and customer support. Progress towards these programs are anticipated to slow as a result. A corresponding reduction is recommended for associated fee revenue. Green Building (68,985) (105,548) - - (68,985) (105,548) - - Attachment A, Exhibit 1 Page 9 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Planning and Development Services Development Services Public Works Alignment This action reduces $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. Public Works - Urban Forestry and Engineering (207,162) (208,853) (0.70) - (207,162) (208,853) (0.70) - Planning and Development Services Development Services Reserve Fund (DSRF) This action reduces the DSRF from $1.1M to $0.6M to partially offset operating costs in FY 2021. The DSRF was established in 2018 upon the completion of the most recent fee study and recommended to build and maintain unrestricted funds that could be used to cover unforeseen shortfalls (CMR 8539). Reserves 500,000 - - - 500,000 - - - 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 adjustment of $757 is recommended to align expenditures that were inadvertently misstated in the Proposed Budget. Special Revenue Funds - - - - 294,909 294,152 - - 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. Administration/ Business Operations - (196,465) (1.00) - - (196,465) (1.00) - 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. Administration/ Business Operations - (296,190) - - - (296,190) - - Police Patrol Operations This action reduces 6.0 Police Officer positions, 2.0 Community Service Officers, 1.0 Administrative Associate II position, and reduces overtime expense by $500,000 in Police patrol operations. Patrol’s ability to positively impact crime rates, address traffic safety issues, and meet key performance measures for proposed response times to urgent and emergency calls for service will be reduced. Urgent and emergency calls will remain the priority for timely police response to ensure safety during potentially life threatening or higher danger crimes in progress. Patrols response to non-emergency calls for service, directed patrol checks, generalized traffic enforcement activities, and special community engagement events will be eliminated or significantly reduced. Other sworn police personnel will be re-assigned to backfill patrol vacancies as they arise to cover staffing shortages. Patrol Services - (1,822,497) (8.87) - - (1,836,528) (9.00) - Attachment A, Exhibit 1 Page 10 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Police Technical Services Support This action reduces 1.0 Deputy Director Technical Services (0.20 allocated to Fire Department) and 1.0 Communications Technician who support technical functions. Administrative and personnel management will be significantly delayed or not occur for this division. Resources that manage radio repairs, inventories, and replacement schedules will no longer be available and potentially need to be outsourced to an outside consultant. Technical Services Support - (391,139) (1.80) - - (391,139) (1.80) - 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. Communication s/ Dispatch (131,000) (1,323,353) (5.00) (0.49) (131,000) (1,323,353) (5.00) (0.49) 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. Information Management (Records) - (24,129) - (0.29) - (24,129) - (0.29) 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. Investigations - (345,649) (2.00) (0.08) - (345,649) (2.00) (0.08) 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. Special Events & Reserves - (75,449) - (0.72) - (75,449) - (0.72) Police Suspend Traffic Program This action reduces 3.0 Police Officer positions and suspends the specialized traffic program. Traffic - (539,134) (3.00) - - (539,134) (3.00) - Police Suspend Parent Project This action eliminates the Parent Project program. As a result, staff anticipates increased calls for service at homes with domestic disturbances and runaways as families will no longer be referred to the program. Investigations - (60,000) - - - (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 18-month recruiting and training cycle. Hiring and Retention - (443,819) (1.00) (0.22) - (443,819) (1.00) (0.22) Attachment A, Exhibit 1 Page 11 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Police Reduce Training This action reduces training from the current 78 total designated hours down to only the mandatory 32 hours of training. Firearm training and qualification will be reduced by 50 percent. Personnel Training - (103,901) - - - (103,901) - - Police Animal Control Program This action reduces 1.0 Animal Control Officer and 0.48 FTE in part-time staffing resources 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 losses. Animal Control (40,372) (139,863) (1.00) (0.48) (40,372) (139,863) (1.00) (0.48) 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. Sidewalks; Capital Projects- GF Streets and Sidewalks - (700,000) - - (700,000) (1,583,610) (1.00) (0.48) 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 for the City of Palo Alto's membership fee with the San Francisquito Creek Joint Powers Authority (SFJPA) which allows the City to participate in the decision-making process for a series of projects to provide flood protection for local residents. The SFJPA is an independent regional government agency founded by three cities and two countywide agencies divided by San Francisquito Creek and united by its watershed and floodplain. This joint agency leads projects along the creek and S.F. Bay to reduce flood threat, enhance ecosystems and recreational opportunities, and connect communities. Engineering Services - 118,750 - - - 118,750 - - Public Works Public Works Development Services Alignment This action recognizes the reallocation of staffing from the Planning and Development Services Department's Public Works division to the Public Works department. This reallocation of staff will align the position with the anticipated workload for the position. Engineering Services - 80,109 0.45 - - 134,853 0.70 - Attachment A, Exhibit 1 Page 12 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Public Works Urban Forestry This action will reduce contractual funding for tree trimming services citywide by 50%. Although this reduction will significantly reduce the number of trees trimmed in FY 2021 and FY 2022, it is not anticipated to adversely impact the City's goal of a 7-year average tree trimming cycle. This is because the City is currently ahead of schedule. If the reduction is continued for more than two years, it would impact the cycle time over the medium and long-terms. Management of the contract to maximize tree trimming may result in deferral of other activities such as stump grindings and plantings of replacement trees. Urban Forestry - (654,399) - - - (654,399) - - 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 the Vehicle Replacement Capital Projects are detailed in expenses reported in the Capital information of Attachment A, Exhibit 2. Capital Projects- Vehicle Replacement & Maintenance (VRM) Vehicle & Equipment Replacement - (1,275,492) - - (2,142,660) (4,055,727) (1.00) - Public Works Buildings & Facilities Reductions This action reduces 1.0 Project Manager for FY 2021 & FY 2022 commensurate with the funding reductions in capital projects. This will realign work capacity to ensure management of the citywide Custodial contract and sufficient staff time to manage the remaining CIPs. Custodial; Capital Projects- GF Buildings & Facilities - (110,642) (0.65) - - (170,219) (1.00) - 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. Capital Projects- GF Buildings and Facilities - - - - - (160,994) (1.00) - Utilities Electric rates at 0% and staffing resource reduction for fiscal year 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 2. Business Operations - Electric - (124,557) - - (18,203,817) (9,684,171) (1.85) - Attachment A, Exhibit 1 Page 13 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Utilities Electrification Deferments This action will provide cost savings of $0.3M to the Electric Fund by reducing efforts of building electrification. However, the City will continue to support other Sustainability and Climate Action Plan (S/CAP) initiatives. The electric vehicle programs will continue under an alternative funding source from a state-funded low carbon fuel standards (LCFS) program. The City is also re-evaluating the carbon neutral plan including purchases and sales of Renewable Energy Credits (RECs) which can provide new funding for future local decarbonization efforts Business Operations - Electric - - - - - (300,000) - - Utilities Gas rate increase of 2% and staffing resource reduction for Fiscal Year 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. Business Operations - Gas - (27,783) - - (2,173,363) (840,622) (1.15) - Utilities Wastewater rates at 0% and staffing resource reduction for Fiscal Year 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. Business Operations - Wastewater - (5,694) - - (878,106) (974,618) (0.60) - Attachment A, Exhibit 1 Page 14 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Utilities Water rates at 0% and staffing resource reduction for Fiscal Year 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. Business Operations - Water - (95,683) - - (2,022,429) (1,067,810) (1.15) - Non- Departmental Cubberley Lease Adjustment The City leases 27 acres from the Palo Alto Unified School District (PAUSD) and offers various services and resources through those facilities including short term and long-term rentals, fields, gyms, and theater, as well as an auditorium. This would require the City and PAUSD to renegotiate the lease and reduce the City’s payments and corresponding use of some of these facilities. The City has already begun initial conversations with PAUSD. Currently the balancing strategy is assuming a net savings of $2.5 million, however this is subject to conversations and final agreement between the two parties. Cubberley - (2,500,000) - - - (2,500,000) - - Non- Departmental City Council Contingency This action eliminates the City Council Contingency for one year. Contingency - (125,000) - - - (125,000) - - Non- Departmental Innovation & Special Event Contingency This action reduces the Innovation & Special Event Contingency for one year. Contingency - (50,000) - - - (50,000) - - Non- Departmental Human Resources Contingency This action eliminates the Human Resources Contingency. Contingency - (50,000) - - - (50,000) - - 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. General Fund Transfer - (9,950,000) - - (9,950,000) (9,950,000) - - Non- Departmental Reduce TOT Transfer to Capital Consistent with recommendations to Council on May 4, 2020, Transient Occupancy Tax (TOT) Transfer to Capital will be reduced. General Fund Transfer - (8,455,000) - - (8,455,000) (8,455,000) - - Attachment A, Exhibit 1 Page 15 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET Non- Departmental RPP Parking Administrative Program Revisions This action will require significant program changes phasing the administration of this program to allow for License Plate Recognition (LPR), virtual permits, and other modifications to allow for cost control. Staff will provide greater detail on the program changes including revised financial impacts through continued discussion of potential parking program changes. This General Fund savings reflects the elimination of the current General Fund subsidy to ensure the RPP Fund remains financially solvent. General Fund Transfer - (185,000) - - (185,000) (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. General Fund Revenues (38,793,700) - - - (38,793,700) - - - Non-Departmental Economically Sensitive Department RevenueConsistent with the direction given by the City Council on May 4, 2020, this action reflects a decrease in various departments' revenues associated with economically sensitive cost-recovery activities for FY 2021 compared to the FY 2021 Proposed Operating Budget. General Fund Revenues (5,000,000) - - - (5,000,000) - - - Non- Departmental Internal Service Fund Allocated Charges This action reduces allocated charges throughout the organization to Internal Services Funds, including the Workers' Compensation Fund and the General Liability Fund. These reductions in allocated charges will generate savings throughout the organization in FY 2021, offset by corresponding decreases in accumulated fund balance in the Internal Service Funds. These uses of accumulated fund balance will increase the associated risk in the respective Internal Service Funds. Staff will continue to proactively analyze and monitor this risk throughout the budget process and FY 2021 to ensure it remains within acceptable levels. Internal Service Fund Allocated Charges - (486,322) - - (750,000) (750,000) - - Non- Departmental Other Post-Employment Benefit (OPEB) Alignment This action aligns charges allocated from the Retiree Healthcare Fund to the organization with the most recent actuarial valuation performed by Bartel Associates. Consistent with the direction approved by the Finance Committee on May 5, 2020, the allocated charges are being aligned with funding contributions necessary using a 6.2 percent discount rate to calculate the retiree healthcare liability. This results in savings of $900,000 from the FY 2021 Proposed Operating Budget, which was based on a prior valuation report. Internal Service Fund Allocated Charges - (527,112) (863,000) (1,689,000) Non- Departmental Management and Professionals Unrepresented Group Compensation This action recognizes the proposal of a 15% compensation 'give-back' for the unrepresented Management and Professionals group, generating $3.5 million in savings in the General Fund and $5.5 million in savings across the organization. This is achieved through a wage freeze, furlough, and a reduction in the flexible management benefit. Salary and Benefits - (3,473,000) - - - (5,460,000) Attachment A, Exhibit 1 Page 16 of 17 CMR 11376 - ATTACHMENT A, EXHIBIT 1 Revenue Expense Full-Time Part-Time Revenue Expense Full-Time Part-Time Department Budget Adjustment Actions Program Adjustments Adjustments FTE Impacts FTE Impacts Adjustments Adjustments FTE Impacts FTE Impacts GENERAL FUND ALL FUNDS CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED BUDGET 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. Business Operations - 450,000 - - - 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. Business Operations - 150,000 - - - 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. Business Operatoins - 350,000 - - - 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. Business Operations - 1,000,000 - - - 1,000,000 - - Non- Departmental Implementation Costs Associated with Balancing Strategy This action appropriates $2.1 million in FY 2021 since some actions cannot be fully implemented immediately, especially it is expected that employee separations will cotninue into the first quarter of FY 2021. This funding represents the estimated cost of transition for non-sworn staffing. Business Operations - 2,075,000 - - - 2,075,000 - - TOTAL ($44,736,943)($42,866,980)(61.77)(25.70)($93,142,022)($65,039,860)(74.25)(26.18) Attachment A, Exhibit 1 Page 17 of 17 ATTACHMENT A, EXHIBIT 2 Project Project Revenue Expense Revenue Expense Revenue Expense Number Title Adjustments Adjustments Adjustments Adjustments Funding Funding 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 $ - $ (66,000) $ - $ (564,000) $ - $ 12,219,866 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 PE-13017 El Camino Median Landscape Improvements $ - $ (108,300) $ - $ (1,009,800) $ - $ - 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 CAPITAL IMPROVEMENT FUND Attachment A, Exhibit 2 Page 1 of 6 ATTACHMENT A, EXHIBIT 2 Project Project Revenue Expense Revenue Expense Revenue Expense Number Title Adjustments Adjustments Adjustments Adjustments Funding Funding CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised PL-15001 Embarcadero Road at El Camino Improvements $ - $ - $ - $ (7,426,600) $ - $ - 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 PF-00006 Roofing Replacement $ - $ (684,002) $ - $ (684,002) $ - $ 2,240,091 Attachment A, Exhibit 2 Page 2 of 6 ATTACHMENT A, EXHIBIT 2 Project Project Revenue Expense Revenue Expense Revenue Expense Number Title Adjustments Adjustments Adjustments Adjustments Funding Funding CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised 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 $ - $ 491,843 $ - $ (508,157) $ 16,378,450 $ 24,945,243 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) $ - $ - $ 3,591,529 $ (2,775,398) $ 3,989,529 $ (35,545,858) $ 150,107,689 $ 214,670,287 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 EL-17007 Facility Relocation for Caltrain Modernization Project $ - $ 2,723,631 $ - $ 2,723,631 $ - $ 2,723,631 ELECTRIC FUND TOTAL CAPITAL IMPROVEMENT FUND PROJECT ADJUSTMENTS Attachment A, Exhibit 2 Page 3 of 6 ATTACHMENT A, EXHIBIT 2 Project Project Revenue Expense Revenue Expense Revenue Expense Number Title Adjustments Adjustments Adjustments Adjustments Funding Funding CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised 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 $ - $ (1,545,500) $ - $ (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 $ - $ 1,831,815 $ - $ 1,831,815 $ 750,000 $ 26,850,893 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 FIBER FUND Attachment A, Exhibit 2 Page 4 of 6 ATTACHMENT A, EXHIBIT 2 Project Project Revenue Expense Revenue Expense Revenue Expense Number Title Adjustments Adjustments Adjustments Adjustments Funding Funding CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised 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 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 TOTAL VEHICLE REPLACEMENT FUND PROJECT ADJUSTMENTS VEHICLE REPLACEMENT FUND STORMWATER MANAGEMENT FUND GAS FUND TECHNOLOGY FUND TOTAL TECHNOLOGY FUND PROJECT ADJUSTMENTS Attachment A, Exhibit 2 Page 5 of 6 ATTACHMENT A, EXHIBIT 2 Project Project Revenue Expense Revenue Expense Revenue Expense Number Title Adjustments Adjustments Adjustments Adjustments Funding Funding CITY OF PALO ALTO AMENDMENTS TO THE CITY MANAGER'S FY 2021 PROPOSED CAPITAL IMPROVEMENT PROGRAM FY 2021 Funding 5-yr CIP Funding 5-Yr CIP Revised WC-80020 Sewer System, Customer Connections $ 600,000 $ - $ 600,000 $ - $ 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 $ 600,000 $ 316,424 $ 600,000 $ 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 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 $ - $ 575,000 $ - $ 7,558,154 $ 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 $ 290,666 $ 436,000 $ 290,666 $ 436,000 $ 1,953,687 $ 2,930,528 $ 865,666 $ 5,293,357 $ 865,666 $ 5,293,357 $ 9,511,841 $ 32,137,041 $ 24,219,195 $ 11,018,759 $ 24,663,195 $ (21,415,701) $ 268,687,530 $ 430,402,097 TOTAL WATER FUND PROJECT ADJUSTMENTS TOTAL ALL FUNDS WASTEWATER COLLECTION FUND TOTAL WASTEWATER COLLECTION FUND PROJECT ADJUSTMENTS WASTEWATER TREATMENT FUND TOTAL WASTEWATER TREATMENT FUND PROJECT ADJUSTMENTS WATER FUND Attachment A, Exhibit 2 Page 6 of 6 CAPITAL IMPROVEMENT FUND Summary of Capital Activity CAPITAL IMPROVEMENT FUND Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Source of Funds Beginning Fund Balance Infrastructure Reserve - Beginning Fund Balance 51,533,218 51,456,186 46,798,098 14,823,152 8,464,857 3,639,597 2,205,730 46,798,098 Reserve: Roth Building & Sea Scout Building TDRs 4,687,468 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 Reserve: Library Bond Proceeds 638,000 588,000 588,000 588,000 588,000 588,000 588,000 588,000 Reserve: Infrastructure Plan 25,537,577 58,812,390 0 0 0 0 0 0 Reserve: Debt Service 0 0 0 0 0 0 2,500,000 0 Total Beginning Fund Balance 82,396,263 115,776,358 52,305,880 20,330,934 13,972,639 9,147,379 10,213,512 52,305,880 General Fund Contributions Annual General Fund Capital Transfer 16,958,000 15,323,000 5,048,500 7,840,500 12,604,750 16,875,000 17,288,000 59,656,750 Transfer from General Fund - TOT Funding 8,691,712 7,155,906 6,555,900 8,850,300 10,250,700 11,294,800 12,806,400 49,758,100 Interest Income 1,279,833 1,178,500 1,189,600 1,189,600 1,189,600 1,189,600 1,189,600 5,948,000 Total General Fund Contributions 26,929,545 23,657,406 12,794,000 17,880,400 24,045,050 29,359,400 31,284,000 115,362,850 Project Reimbursements & Fund Transfers Transfer from California Avenue Parking District Fund PL-16002 Parking Management and System Implementation 0 138,000 0 0 0 0 0 0 Total Transfer 0 138,000 0 0 0 0 0 0 Transfer from Charleston/Arastradero Fund PE-13011 Charleston/Arastradero Corridor Project 0 18,000 0 0 0 0 0 0 Total Transfer 0 18,000 0 0 0 0 0 0 Transfer from Community Center Impact Fee Fund AC-18001 JMZ Renovation 1,025,717 1,671,860 0 0 0 0 0 0 PE-08001 Rinconada Park Improvements 0 0 2,399,529 0 0 0 0 2,399,529 Total Transfer 1,025,717 1,671,860 2,399,529 0 0 0 0 2,399,529 Transfer from Gas Tax Fund PE-13011 Charleston/Arastradero Corridor Project 1,170,237 0 0 0 0 0 0 0 PL-00026 Safe Routes To School 100,000 100,000 100,000 100,000 100,000 100,000 100,000 500,000 PE-86070 Street Maintenance 1,300,000 2,453,997 2,610,690 2,610,690 2,610,690 2,610,690 2,610,690 13,053,450 Total Transfer 2,570,237 2,553,997 2,710,690 2,710,690 2,710,690 2,710,690 2,710,690 13,553,450 Attachment B 1 CAPITAL IMPROVEMENT FUND Transfer from Library Impact Fee Fund LB-21000 Library Automated Material Handling 0 0 260,000 180,000 190,000 0 0 630,000 Total Transfer 0 0 260,000 180,000 190,000 0 0 630,000 Transfer from New Public Safety Facilities Impact Fee Fund PE-15001 New Public Safety Building 0 0 350,000 0 0 0 0 350,000 Total Transfer 0 0 350,000 0 0 0 0 350,000 Transfer from Parks Dedication Fee Fund PE-14018 Baylands Boardwalk Improvements 470,000 0 0 0 0 0 0 0 PE-19003 Birch Street Improvements 0 0 0 1,100,000 0 0 0 1,100,000 PE-18006 Byxbee Park Completion 0 0 2,400,000 0 0 0 0 2,400,000 PG-18002 Turf Management Plan 100,000 0 0 0 0 0 0 0 Total Transfer 570,000 0 2,400,000 1,100,000 0 0 0 3,500,000 Transfer from Parks Development Impact Fee Fund PE-19003 Birch Street Improvements 0 2,720,000 0 400,000 0 0 0 400,000 PG-18001 Dog Park Installation and Renovation 0 0 150,000 0 150,000 0 150,000 450,000 PG-19001 Baylands Athletic Center 10.5 Acre Expansion Plan 100,000 0 0 0 0 0 0 0 PG-19000 Park Restroom Installation 0 0 350,000 350,000 0 350,000 0 1,050,000 Total Transfer 100,000 2,720,000 500,000 750,000 150,000 350,000 150,000 1,900,000 Transfer from Refuse Fund PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 9,500 10,250 0 0 0 0 10,250 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 27,000 27,000 0 0 0 0 27,000 Total Transfer 0 36,500 37,250 0 0 0 0 37,250 Transfer from Residential Parking Permits Program Fund PL-16002 Parking Management and System Implementation 0 255,000 0 0 0 0 0 0 Total Transfer 0 255,000 0 0 0 0 0 0 Transfer from San Antonio/West Bayshore Fund PL-05030 Traffic Signal and Intelligent Transportation System Upgrades 0 1,283,400 0 0 0 0 0 0 Total Transfer 0 1,283,400 0 0 0 0 0 0 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Attachment B 2 CAPITAL IMPROVEMENT FUND Transfer from Stanford University Medical Center Development Agreement Fund PL-04010 Bicycle and Pedestrian Plan-Implementation Project 0 0 1,200,000 1,200,000 0 0 0 2,400,000 PL-19000 Emergency Vehicle Traffic Signal Preemption System Pilot 11,200 0 0 0 0 0 0 0 PE-18004 Fire Station 4 Replacement 0 0 750,000 4,075,000 4,075,000 0 0 8,900,000 PE-15001 New Public Safety Building 0 900,000 800,000 0 0 0 0 800,000 PL-16000 Quarry Road Improvements 0 200,000 0 1,493,513 0 0 0 1,493,513 Pl-17001 Railroad Grade Separation 0 0 500,000 500,000 0 0 0 1,000,000 Total Transfer 11,200 1,100,000 3,250,000 7,268,513 4,075,000 0 0 14,593,513 Transfer from Storm Drainage Fund PE-13011 Charleston/Arastradero Corrider Project 330,000 0 0 0 0 0 0 0 Total Transfer 330,000 0 0 0 0 0 0 0 Transfer from Traffic Impact Fee Fund PL-05030 Traffic Signal and Intelligent Transportation System Upgrades 506,475 0 400,000 395,000 395,000 395,000 395,000 1,980,000 Total Transfer 506,475 0 400,000 395,000 395,000 395,000 395,000 1,980,000 Transfer from University Avenue Parking District Fund PL-15004 Downtown Parking Wayfinding 280,015 40,000 0 0 0 0 0 0 PL-16002 Parking Management & System Implementation 0 752,220 0 0 0 0 0 0 PE-18002 High and Bryant Street Garages Waterproofing and Repairs 300,000 0 0 0 0 0 0 0 PF-18000 Parking Lot J Elevator Modernization 50,000 0 0 0 0 0 0 0 PF-14003 University Avenue Parking Improvements 63,517 343,000 100,000 115,000 75,000 65,000 0 355,000 Total Transfer 693,532 1,135,220 100,000 115,000 75,000 65,000 0 355,000 Transfer from University Avenue Parking In Lieu Fund PE-15007 New Downtown Parking Garage 0 0 0 5,541,000 0 0 0 5,541,000 Total Transfer 0 0 0 5,541,000 0 0 0 5,541,000 Transfer from Utilities Administration Fund PE-09003 City Facility Parking Lot Maintenance 0 0 0 0 100,000 0 0 100,000 PF-02022 Facility Interior Finishes Replacement 370,000 0 169,000 176,000 0 0 0 345,000 PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 342,000 369,000 0 0 0 0 369,000 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 972,000 972,000 0 0 0 0 972,000 PE-19001 Water, Gas, Wastewater Office Remodel 70,000 654,000 0 0 0 0 0 0 Total Transfer 440,000 1,968,000 1,510,000 176,000 100,000 0 0 1,786,000 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Attachment B 3 CAPITAL IMPROVEMENT FUND Transfer from Vehicle Maintenance Fund PF-02022 Facility Interior Finishes Replacement 0 0 0 0 68,000 0 0 68,000 PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 190,000 205,000 0 0 0 0 205,000 PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 0 540,000 540,000 0 0 0 0 540,000 Total Transfer 0 730,000 745,000 0 68,000 0 0 813,000 Grants/Other Revenue AC-86017 Art in Public Spaces: Federal Grant and Private Donations 175,000 0 0 0 0 0 0 0 FD-21000 Automated External Defibrillator Replacement: Stanford 0 0 38,000 0 0 0 0 38,000 FD-20000 Cardiac Monitor Replacement: Stanford 0 135,000 7,000 0 0 0 0 7,000 PE-13011 Charleston/Arastradero Corridor Project: VTA Grant 315,929 206,290 1,303,710 0 0 0 0 1,303,710 PL-20000 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements: CalTrans Section 130 0 500,000 4,000,000 0 0 0 0 4,000,000 PE-17010 Civic Center Electrical Upgrade & EV Charger Installation: BAAQMD Grant 0 243,000 0 0 0 0 0 0 PL-18000 El Camino Real Pedestrian Safety and Streetscape Project: VTA Grant 0 0 2,000,000 2,000,000 1,138,750 0 0 5,138,750 FD-22000 Extrication Tool Replacement: Stanford 0 0 0 42,700 0 0 0 42,700 FD-14002 Fire Ringdown System Replacement: Stanford 0 40,000 5,000 0 0 0 0 5,000 PE-19003 Birch Street Improvements 41,995,000 0 0 0 0 0 0 0 PG-13003 Golf Reconfiguration & Baylands Athletic Center Improvements: SF Creek Joint Powers and Certificates of Participation 0 2,250,000 0 0 0 0 0 0 PE-11011 Highway 101 Pedestrian/Bicycle Overpass Project: Santa Clara County & OBAG Grants and Google Reimbursement 0 9,350,000 1,500,000 0 0 0 0 1,500,000 AC-18001 JMZ Renovation: IMLS Grant 18,956 240,200 0 0 0 0 0 0 PE-15001 New Public Safety Building: Certificates of Participation 0 0 102,000,000 0 0 0 0 102,000,000 PE-12011 Newell Road/San Francisquito Creek Bridge Replacement: Caltrans & Silicon Valley Water 56,797 1,949,600 5,075,000 5,775,000 0 0 0 10,850,000 PL-17001 Railroad Grade Separation: Measure B 0 2,000,000 500,000 500,000 1,000,000 1,000,000 1,000,000 4,000,000 PL-00026 Safe Routes To School: VTA Grant 0 0 459,677 459,677 0 0 0 919,354 FD-20001 Self-Contanied Breathing Apparatus (SCBA) Air Compressor Replacement: Stanford 0 0 16,300 0 0 0 0 16,300 FD-18000 Self-Contained Breathing Apparatus (SCBA) Replacement: Stanford 5,958 3,700 0 0 0 0 0 0 PE-86070 Street Maintenance: State Grant 505,463 2,172,200 965,000 965,000 465,000 465,000 465,000 3,325,000 PL-12000 Transportation and Parking Improvements 8,060 0 0 0 0 0 0 FD-20002 Thermal Imaging Cameras Replacement: Stanford 0 8,500 0 0 0 0 0 0 PL-05030 Traffic Signal and Intelligent Transportation System Upgrades: Measure B 52,552 700,000 300,000 300,000 300,000 300,000 300,000 1,500,000 Total Grants/Other Revenue 43,133,715 19,798,490 118,169,687 10,042,377 2,903,750 1,765,000 1,765,000 134,645,814 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Attachment B 4 CAPITAL IMPROVEMENT FUND Total Revenue 76,310,421 57,065,873 145,626,156 46,158,980 34,712,490 34,645,090 36,304,690 297,447,406 Total Sources 158,706,684 172,842,231 197,932,036 66,489,914 48,685,129 43,792,469 46,518,202 349,753,286 Use of Funds Buildings & Facilities PF-93009 Americans With Disabilities Act Compliance 227,637 200,000 471,826 342,800 369,000 447,400 530,000 2,161,026 PE-19002 Animal Shelter Renovation 270,962 2,939,971 582,657 0 0 0 0 582,657 PE-14018 Baylands Boardwalk Improvements 1,417,456 164,657 110,519 0 0 0 0 110,519 PE-17006 Baylands Flood Protection Levee Improvements 133,333 0 0 0 0 0 0 0 AC-14001 Baylands Nature Interpretive Center Exhibit Improvements 15,200 0 0 0 0 0 0 0 PE-15029 Baylands Nature Interpretive Center Facility Improvements 0 2,008 0 0 0 0 0 0 PF-01003 Building Systems Improvements 26,223 250,008 415,883 239,954 237,400 258,200 282,200 1,433,637 PE-20001 City Bridge Improvements 0 0 94,400 137,900 348,600 185,200 198,600 964,700 PE-20002 City Facilities Assessment and Record Plan Management System 0 150,000 164,800 0 0 0 0 164,800 PE-09003 City Facility Parking Lot Maintenance 27,831 319,725 419,941 233,500 489,200 0 0 1,142,641 PE-12017 City Hall First Floor Renovations 14,959 188,402 0 0 0 0 0 0 PE-17002 City Hall Floor 3 Remodel 22,355 0 0 0 0 0 0 0 PE-17008 City Hall Floor 4 Remodel 466,360 7,500 0 0 0 0 0 0 PE-17009 City Hall Floor 5 Remodel 432,096 32,002 0 0 0 0 0 0 PE-19000 City Hall Space Planning 0 0 631,700 0 0 0 0 631,700 PE-17010 Civic Center Electrical Upgrade & EV Charger Installation 18,360 243,000 679,800 0 0 0 0 679,800 PE-18016 Civic Center Fire Life Safety and Electrical Upgrades 14,088 269,104 356,956 0 0 0 0 356,956 PE-15020 Civic Center Waterproofing Study and Repairs 968 49,800 617,255 0 0 0 0 617,255 PF-15005 Emergency Facilities Improvement 0 14,370 0 0 0 0 0 0 PF-02022 Facility Interior Finishes Replacement 75,238 564,100 560,626 261,331 365,414 270,146 315,700 1,773,217 FD-14002 Fire Ringdown System Replacement 244,144 140,000 16,000 0 0 0 0 16,000 PF-14002 Fire Station 1 Improvements 15,242 84,800 0 0 0 0 0 0 PE-15003 Fire Station 3 Replacement 3,878,007 2,423,274 0 0 0 0 0 0 PE-18004 Fire Station 4 Replacement 0 350,000 700,000 4,575,000 4,575,000 0 0 9,850,000 PE-18002 High and Bryant Street Garages Waterproofing and Repairs 26,472 213,454 210,446 0 0 0 0 210,446 PD-14000 Internal Alarm System Replacement 50,759 26,800 0 0 0 0 0 0 AC-18001 JMZ Renovation 474,155 1,202,060 2,231,551 0 0 0 0 2,231,551 LB-21000 Library Automated Material Handling 0 0 316,400 230,900 256,600 0 0 803,900 PE-14015 Lucie Stern Buildings Mechanical and Electrical Upgrades 2,420,500 505,455 0 0 0 0 0 0 PF-17000 Municipal Service Center A, B, & C Roof Replacement 0 0 2,169,800 0 0 0 0 2,169,800 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Attachment B 5 CAPITAL IMPROVEMENT FUND PF-16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements 69,649 257,000 6,038,732 0 0 0 0 6,038,732 PE-18000 New California Avenue Area Parking Garage 5,044,555 43,587,279 0 0 0 0 0 0 PE-15007 New Downtown Parking Garage 510,437 73,121 0 5,103,000 0 0 0 5,103,000 PE-15001 New Public Safety Building 1,563,200 7,000,000 102,800,000 3,400,000 400,000 0 0 106,600,000 PF-18000 Parking Lot J Elevator Modernization 413,998 286,001 0 0 0 0 0 0 AC-18000 Performing Arts Venue Seat Replacement 0 0 439,400 0 0 0 0 439,400 PF-00006 Roofing Replacement 770,934 184,435 183,600 474,900 285,629 674,076 621,886 2,240,091 PF-07011 Roth Building Maintenance 1,420 10,000 31,973 0 0 0 0 31,973 PF-14003 University Avenue Parking Improvements 48,116 0 462,400 160,500 133,300 137,200 0 893,400 PE-15011 Ventura Buildings Improvements 143,871 25,000 0 0 0 0 0 0 PE-19001 Water, Gas, Wastewater Office Remodel 5,996 90,765 692,035 0 0 0 0 692,035 Total Building & Facilities 18,844,521 61,854,091 121,398,700 15,159,785 7,460,143 1,972,222 1,948,386 147,939,236 Department Technology Upgrades and Improvements FD-21000 Automated External Defibrillator Replacement 0 0 219,700 0 0 0 0 219,700 FD-20000 Cardiac Monitor Replacement 0 808,000 42,000 0 0 0 0 42,000 FD-22000 Extrication Tool Replacement 0 0 0 283,400 0 0 0 283,400 PD-20000 Police Video Recording Systems Replacement 0 48,000 114,400 182,700 0 0 0 297,100 FD-20001 Self-Contanied Breathing Apparatus (SCBA) Air Compressor Replacement 0 0 94,500 0 0 0 0 94,500 FD-18000 Self-Contained Breathing Apparatus (SCBA) Replacement 31,356 20,000 0 0 0 0 0 0 FD-20002 Thermal Imaging Cameras Replacement 0 65,000 0 0 0 0 0 0 Total Department Technology Upgrades and Improvements 31,356 941,000 470,600 466,100 0 0 0 936,700 Parks & Open Space AC-86017 Art In Public Spaces 208,945 1,239,055 1,738,194 280,700 190,800 225,372 245,900 2,680,966 PG-06001 Athletic Courts Resurfacing 55,378 811,225 327,735 216,640 286,600 303,700 323,300 1,457,975 PG-19001 Baylands Athletic Center 10.5 Acre Expansion Plan 10,402 0 0 0 0 0 0 0 PG-17000 Baylands Comprehensive Conservation Plan 205,089 90,000 7,100 0 0 0 0 7,100 OS-09002 Baylands Levee Repair for Public Safety Access 0 0 0 0 0 375,202 0 375,202 PG-06003 Benches, Signage, Walkways, Perimeter Landscaping 420,374 126,901 271,019 223,300 236,900 251,700 268,700 1,251,619 PE-19003 Birch Park Improvements 0 2,720,000 0 2,400,000 0 0 0 2,400,000 PE-16000 Bol Park Improvements 0 0 0 0 0 685,100 0 685,100 PE-17005 Boulware Park Improvements 23,830 20,102 442,499 0 0 0 0 442,499 PE-18006 Byxbee Park Completion 187,251 16,074 2,881,146 0 0 0 0 2,881,146 PG-14002 Cameron Park Improvements 0 0 217,800 0 0 0 0 217,800 PG-18001 Dog Park Installation and Renovation 15,746 0 164,800 0 200,000 0 225,600 590,400 OS-18000 Foothills Park Boronda Lake Dock Replacement 0 0 230,700 0 0 0 0 230,700 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Attachment B 6 CAPITAL IMPROVEMENT FUND PE-20000 Foothills Park Dam Seepage Investigation & Repairs 0 30,000 0 0 0 0 0 0 PE-21000 Foothills Park Improvement Project 0 0 0 0 83,300 397,200 0 480,500 PG-17001 Foothills Park, Pearson Arastradero Preserve, and Esther Clark Park Comprehensive Conservation Plan 0 0 0 0 0 0 0 0 PG-18000 Golf Course Net and Artificial Turf Replacement 0 0 0 0 970,000 0 0 970,000 PG-13003 Golf Course Reconfiguration & Baylands Athletic Center Improvements 2,455 10,000 200,000 0 0 0 0 200,000 PE-17000 Mitchell Park Adboe Creek Bridge Replacement 306,499 0 0 0 0 0 0 0 PG-21000 Heritage Park Site Amenities Replacement 0 0 0 0 0 0 195,500 195,500 PE-18012 Hoover Park Improvements 0 0 0 0 0 0 1,255,700 1,255,700 PE-21002 Johnson Park Renovation 0 0 0 0 0 474,800 1,573,900 2,048,700 PE-21003 Magical Bridge Playground Rubber and Synthetic Turf Resurfacing 0 0 404,050 463,250 0 0 0 867,300 PE-18010 Mitchell Park Improvements 0 0 0 0 374,000 1,059,895 0 1,433,895 OS-09001 Off-Road Pathway Resurfacing And Repair 0 173,000 124,000 136,900 147,300 158,600 171,500 738,300 OS-00002 Open Space Lakes And Pond Maintenance 14,406 71,350 113,350 59,900 64,200 68,700 74,000 380,150 OS-00001 Open Space Trails and Amenities 286,674 355,175 192,300 220,400 233,300 247,200 263,200 1,156,400 PG-09002 Parks and Open Space Emergency Repairs 177,434 17,866 233,855 201,500 266,100 306,900 325,000 1,333,355 PG-19000 Park Restroom Installation 0 0 350,000 440,900 0 494,400 0 1,285,300 PE-13003 Parks,Trails, Open Space, & Recreation Master Plan 3,637 0 0 0 0 0 0 0 PE-21001 Pearson Arastradero Improvement Project 0 0 0 0 70,800 306,700 0 377,500 OS-18001 Pearson Arastradero Preserve Parking Lot Improvement 0 0 170,300 0 0 0 0 170,300 PG-14001 Peers Park Improvements 0 0 0 0 0 289,600 0 289,600 PG-14000 Ramos Park Improvements 0 20,000 209,000 0 0 0 0 209,000 PE-08001 Rinconada Park Improvements 232,671 365,000 2,495,229 0 538,300 0 3,073,800 6,107,329 PE-12003 Rinconada Park Master Plan and Design 8,938 0 0 0 0 0 0 0 PE-18015 Robles Park Improvements 0 0 0 0 0 953,500 0 953,500 PG-14003 Seale Park Improvements 0 0 0 0 0 0 427,800 427,800 PG-22000 Werry Park Playground Improvements 0 0 0 0 0 126,000 0 126,000 Total Parks & Open Space 2,159,729 6,065,748 10,773,077 4,643,490 3,661,600 6,724,569 8,423,900 34,226,636 Streets and Sidewalks PE-17004 California Ave District Gateway Signs 729 142,886 0 0 0 0 0 0 PE-18001 CalTrain Corridor Video Management System Installation 749,178 99,232 0 0 0 0 0 0 PO-12001 Curb and Gutter Repairs 450,166 744,397 123,853 126,700 134,200 142,400 151,800 678,953 PE-12011 Newell Road/San Francisquito Creek Bridge Replacement 244,356 2,449,600 6,017,111 6,354,300 0 0 0 12,371,411 PO-89003 Sidewalk Repairs 1,658,872 1,541,417 448,363 595,500 1,400,900 1,406,500 1,410,600 5,261,863 PO-11000 Sign Reflectivity Upgrade 10,207 60,660 131,400 66,900 71,700 76,800 82,700 429,500 PE-13014 Street Lights Condition Assessment 0 0 0 0 242,000 0 0 242,000 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Attachment B 7 CAPITAL IMPROVEMENT FUND PO-05054 Street Lights Improvements 100,374 38,306 156,287 103,800 119,000 235,500 254,400 868,987 PE-86070 Street Maintenance 5,353,373 11,894,696 5,545,543 4,074,200 5,091,900 5,110,200 5,123,400 24,945,243 PO-11001 Thermoplastic Lane Marking and Striping 13,006 98,328 133,400 97,100 103,300 110,100 117,800 561,700 Total Streets and Sidewalks 8,580,261 17,069,522 12,555,957 11,418,500 7,163,000 7,081,500 7,140,700 45,359,657 Traffic and Transportation PL-04010 Bicycle and Pedestrian Plan-Implementation Project 2,367,931 402,385 1,273,595 2,000,000 1,950,000 2,100,000 0 7,323,595 PE-13011 Charleston/Arastradero Corridor Project 4,589,736 6,500,000 5,800,000 0 0 0 0 5,800,000 PL-20000 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements 0 400,000 4,636,200 0 0 0 0 4,636,200 PL-14000 Churchill Avenue Enhanced Bikeway 113 181,534 3,159,466 0 0 0 0 3,159,466 PL-15002 Downtown Automated Parking Guidance Systems, Access Controls, and Revenue Collection Equipment 2,359 448 2,726,860 0 0 0 0 2,726,860 PL-16001 Downtown Mobility and Safety Improvements 1,803,034 100,000 0 0 0 0 0 0 PL-15004 Downtown Parking Wayfinding 346,824 589,038 0 0 0 0 0 0 PL-18000 El Camino Real Pedestrian Safety and Streetscape Project 108,594 43,167 2,954,181 2,202,700 1,349,050 0 0 6,505,931 PL-15001 Embarcadero Road at El Camino Improvements 88,607 0 0 0 0 0 0 0 PL-19000 Emergency Vehicle Traffic Signal Preemption System Pilot 0 597,500 0 0 0 0 0 0 PE-11011 Highway 101 Pedestrian/Bicycle Overpass Project 1,084,589 17,792,509 0 0 0 0 0 0 PL-15003 Parking District Implementation 32,760 307,257 0 0 218,800 236,700 256,800 712,300 PL-16002 Parking Management & System Implementation 248 627,000 563,600 0 0 0 0 563,600 PL-16000 Quarry Road Improvements 555,425 6,000 928,400 1,353,900 2,748,000 0 0 5,030,300 PL-17001 Railroad Grade Separation 1,232,373 1,706,421 4,260,625 1,233,600 1,271,900 1,311,400 1,190,700 9,268,225 PL-00026 Safe Routes To School 89,373 218,800 661,177 677,477 241,200 266,500 260,600 2,106,954 PL-05030 Traffic Signal and Intelligent Transportation System 368,200 1,695,700 1,172,355 935,950 886,250 980,700 1,076,400 5,051,655 PL-12000 Transportation and Parking Improvements 290,303 330,811 471,342 487,000 518,600 552,900 619,200 2,649,042 Total Traffic and Transportation 12,960,469 31,498,570 28,607,801 8,890,627 9,183,800 5,448,200 3,403,700 55,534,128 Administration AS-10000 Capital Improvement Fund Administration 169,401 587,420 1,414,967 2,272,773 2,408,207 2,696,466 3,933,422 12,725,835 Total Administration 169,401 587,420 1,414,967 2,272,773 2,408,207 2,696,466 3,933,422 12,725,835 Total Project Expenses 42,745,737 118,016,351 175,221,102 42,851,275 29,876,750 23,922,957 24,850,108 296,722,192 Transfers to Other Funds Debt Service Fund (New California Avenue Parking Garage)0 2,335,000 2,380,000 2,380,000 2,375,000 2,370,000 2,365,000 11,870,000 General Benefits Funds 53,757 0 0 0 0 0 0 0 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Attachment B 8 CAPITAL IMPROVEMENT FUND PG-19001 Parks Development Impact Fee Fund - Baylands Athletic Center 10.5 Acre Expansion Plan 0 85,000 0 0 0 0 0 0 PG-18002 Parks Development Impact Fee Fund - Turf Management Plan 0 100,000 0 0 0 0 0 0 Total Transfers to Other Funds 53,757 2,520,000 2,380,000 2,380,000 2,375,000 2,370,000 2,365,000 11,870,000 Debt Service Certificates of Participation Debt Repayment (New Public Safety Building)0 0 0 7,286,000 7,286,000 7,286,000 7,286,000 29,144,000 Golf Course Certificates of Participation Bond Issuance 17,507 0 0 0 0 0 0 0 Total Debt Service 17,507 0 0 7,286,000 7,286,000 7,286,000 7,286,000 29,144,000 Total Expenses 42,817,001 120,536,351 177,601,102 52,517,275 39,537,750 33,578,957 34,501,108 337,736,192 Reserves Reserve: Roth Building & Sea Scout Building TDRs 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 4,919,782 Reserve: Library Bond Proceeds 588,000 588,000 588,000 588,000 588,000 588,000 588,000 588,000 Reserve: Infrastructure Plan 58,812,390 0 0 0 0 0 0 0 Reserve: Debt Service 0 0 0 0 0 2,500,000 5,000,000 5,000,000 Reserve: Future Capital Needs 0 0 0 0 0 0 0 0 Total Reserves 64,320,172 5,507,782 5,507,782 5,507,782 5,507,782 8,007,782 10,507,782 10,507,782 Total Ending Fund Balance (Infrastructure Reserve)51,569,511 46,798,098 14,823,152 8,464,857 3,639,597 2,205,730 1,509,312 1,509,312 Total Uses 158,706,684 172,842,231 197,932,036 66,489,914 48,685,129 43,792,469 46,518,202 349,753,286 Project Number Project Title FY 2019 Actuals FY 2020 Estimate FY 2021 Proposed FY 2022 FY 2023 FY 2024 FY 2025 5-Year Total Attachment B 9 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. CMR 11376 - Attachment C 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 CMR 11376 - Attachment C ADMINISTRATIVE SERVICES Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 40.61 8,519,330 1,825,580 6,693,750 One-Time Prior Year Budget Adjustments Administrative Services Staffing Vacancies — 277,547 — 277,547 One-Time Prior Year Budget Adjustments —277,547 —277,547 Adjustments to Costs of Ongoing Activities Salary and Benefits — 207,264 — 207,264 General Fund Cost Allocation Plan — — 288,872 (288,872) Tax and Fee Consulting Services (CMR 10493) — 59,700 — 59,700 Minimum Wage Compliance — 15,000 — 15,000 Business Registry Fee — — 3,592 (3,592) General Liability Insurance Allocated Charges — 12,473 — 12,473 Information Technology Allocated Charges — (14,073) — (14,073) Printing & Mailing Services Allocated Charges — 13,432 — 13,432 Vehicle Replacement & Maintenance Allocated Charges — (6,130) — (6,130) Workers' Compensation Allocated Charges — 6,952 — 6,952 Adjustments to Costs of Ongoing Activities —294,618 292,464 2,154 Total FY 2021 Base Budget 40.61 9,091,495 2,118,044 6,973,451 Budget Adjustments Reallocate 1.0 FTE Performance Auditor II from City Auditor's Office for Performance Report 1.00 195,011 — 195,011 Tax Compliance (Transfer from City Auditor's Office)— 50,000 150,000 (100,000) Real Estate Software — 38,500 38,500 — Total Budget Adjustments 1.00 283,511 188,500 95,011 Total FY 2021 Proposed Budget 41.61 9,375,006 2,306,544 7,068,462 Revisions to FY 2021 Proposed Budget Suspend City's Annual Performance Report (1.00) (169,343) — (169,343) Staff Reorganization and Service Reduction (0.90) (185,582) — (185,582) Accounting and Revenue Collections Reorganization (1.50) (147,786) — (147,786) Total FY 2021 Revised Proposed Budget 38.21 8,872,295 2,306,544 6,565,751 ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 1 CITY ATTORNEY Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 10.00 3,386,954 742,893 2,644,061 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 80,984 — 80,984 General Fund Cost Allocation Plan — — 874,375 (874,375) Contract Services — 256,349 — 256,349 Information Technology Allocated Charges — (8,574) — (8,574) Liability Insurance Allocated Charges — 5,920 — 5,920 Printing & Mailing Services Allocated Charges — 1,047 — 1,047 Workers' Compensation Allocated Charges — 2,469 — 2,469 Adjustments to Costs of Ongoing Activities —338,195 874,375 (536,181) Total FY 2021 Base Budget 10.00 3,725,149 1,617,268 2,107,880 Budget Adjustments 1 Shift City Attorney's Contingency Funds to City Attorney's Budget — 100,000 — 100,000 Total Budget Adjustments —100,000 —100,000 Total FY 2021 Proposed Budget 10.00 3,825,149 1,617,268 2,207,880 Revisions to FY 2021 Proposed Budget Position Reductions (0.50) (81,171) — (81,171) Travel, Training, and Supply Expense Reductions — (47,342) — (47,342) Total FY 2021 Revised Proposed Budget 9.50 3,696,636 1,617,268 2,079,367 ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 2 CITY AUDITOR Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 4.00 1,235,450 1,162,636 72,814 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 34,314 — 34,314 General Fund Cost Allocation Plan — — (46,752) 46,752 Contract Services — 4,000 — 4,000 Information Technology Allocated Charges — (5,228) — (5,228) Liability Insurance Allocated Charges — 2,372 — 2,372 Printing & Mailing Services Allocated Charges — (393) — (393) Workers' Compensation Allocated Charges — 982 — 982 Adjustments to Costs of Ongoing Activities —36,047 (46,752)82,799 Total FY 2021 Base Budget 4.00 1,271,497 1,115,884 155,613 Budget Adjustments 1 Reclassification of 1.0 FTE Performance Auditor II to 1.0 FTE Senior Performance Auditor — 57,555 — 57,555 2 Tax Compliance and National Citizens Survey (Transfer from City Auditor to Administrative Services and City Managers' Office) — (77,000) (150,000) 73,000 3 Reallocate 1.0 FTE Performance Auditor II to Administrative Services for Performance Report (1.00) (195,011) — (195,011) Total Budget Adjustments (1.00)(214,456)(150,000)(64,456) 3.00 1,057,041 965,884 91,157Total FY 2021 Proposed Budget Revisions to FY 2021 Proposed Budget Reduction in the City Auditor's Office — (165,000)— (165,000) Total FY 2021 Revised Proposed Budget 3.00 892,041 965,884 (73,843) ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 3 CITY CLERK Budget Reconciliation Positions Expenditures Revenues Net General Fund 5.00 1,345,822 676,735 669,087 — 30,611 —30,611 — 1,601 — 1,601 —— (24,157) 24,157 — (3,230)— (3,230) — 2,132 — 2,132 — (3,218)— (3,218) —883 —883 —28,779 (24,157)52,937 5.00 1,374,601 652,578 722,024 — (90,385)— (90,385) Prior Year Budget One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments Association Membership Fees General Fund Cost Allocation Plan Information Technology Allocated Charges Liability Insurance Allocated Charges Printing & Mailing Services Allocated Charges Workers' Compensation Allocated Charges Adjustments to Costs of Ongoing Activities Total FY 2021 Proposed Budget Revisions to FY 2021 Proposed Budget Contract Service Reductions Travel, Training, Supply, and Event Expense Reductions — (45,000)— (45,000) Total FY 2021 Revised Proposed Budget 5.00 1,239,216 652,578 586,639 ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 4 CITY COUNCIL Budget Reconciliation Positions Expenditures Revenues Net General Fund 7.00 498,261 94,791 403,470 — (23,940)— (23,940) ——60,774 (60,774) —521 —521 — (1,237)— (1,237) —216 —216 —(24,440)60,774 (85,214) 7.00 473,821 155,565 318,256 Prior Year Budget One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments General Fund Cost Allocation Plan Liability Insurance Allocated Charges Information Technology Allocated Charges Workers' Compensation Allocated Charges Adjustments to Costs of Ongoing Activities Total FY 2021 Proposed Budget Travel, Training, Supply and Event Expense Reductions —(48,955)—(48,955) Total FY 2021 Revised Proposed Budget Revisions to FY 2021 Proposed Budget Total FY 2021 Revised Proposed Budget 7.00 424,866 155,565 269,301 ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 5 CITY MANAGER Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 10.75 4,547,803 1,962,712 2,585,091 Base Adjustments One-Time Prior Year Budget Adjustments Recruitment and Retention Initiatives — (250,000) — (250,000) Contractural Funding for Office of Sustainability — (100,000) — (100,000) Economic Development Funding — (72,000) — (72,000) One-Time Prior Year Budget Adjustments —(422,000)—(422,000) Adjustments to Costs of Ongoing Activities Salaries and Benefits Adjustments — 473 — 473 Office of Sustainability Transition to Public Works (0.75) (263,994) (118,751) (145,243) Federal Transit Administration (FTA) Grant Completion — (260,000) (260,000) — Contract Services — (7,000) — (7,000) Transfer to Electric Fund for Canopy Contract — (2,039) — (2,039) General Fund Cost Allocation Plan — — (34,489) 34,489 City Manager Relocation Expense Reimbursement — 24,000 — 24,000 Information Technology Department Allocated Charges — (12,531) — (12,531) Liability Insurance Allocated Charges — 4,169 — 4,169 Printing & Mailing Allocated Charges — (10,033) — (10,033) Workers' Compensation Allocated Charges — 7,946 — 7,946 Adjustments to Costs of Ongoing Activities (0.75)(519,009)(413,240)(105,769) Total FY 2021 Base Budget 10.00 3,606,794 1,549,472 2,057,322 Budget Adjustments Tax Compliance and National Citizens Survey (Transfer from City Auditor to Administrative — 27,000 — 27,000 —27,000 —27,000 10.00 3,633,794 1,549,472 2,084,322 (1.00) (218,750)— (218,750) — (32,000)— (32,000) Services and City Managers' Office) Total Budget Adjustments Total FY 2021 Proposed Budget Position Reductions Travel, Training, and Supply Expense Reductions Total FY 2021 Revised Proposed Budget 9.00 3,383,044 1,549,472 1,833,572 Revisions to FY 2021 Proposed Budget ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 6 OFFICE OF TRANSPORTATION Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 6.68 2,312,134 141,332 2,170,802 One-Time Prior Year Budget Adjustments VMT Estimation Tool (one-time surcharge) — (14,000) — (14,000) One-Time Prior Year Budget Adjustments —(14,000)—(14,000) Adjustments to Costs of Ongoing Activities Salary and Benefits 0.15 10,823 — 10,823 Shuttle Service Contract Funding Alignment — 25,000 — 25,000 Information Technology Allocated Charges — 63,594 — 63,594 Liability Insurance Allocated Charges — 23,630 — 23,630 Printing & Mailing Services Allocated Charges — 7,354 — 7,354 Workers' Compensation Allocated Charges — 7,097 — 7,097 Adjustments to Costs of Ongoing Activities 0.15 137,498 —137,498 Total FY 2021 Proposed Budget 6.83 2,435,632 141,332 2,294,300 Revisions to FY 2021 Proposed Budget Position Reduction (0.48) (29,678) — — Free Shuttle Service Elimination — (538,333) — — Total FY 2021 Revised Proposed Budget 6.35 1,867,621 141,332 2,294,300 ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 7 COMMUNITY SERVICES Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 124.91 30,920,184 9,721,945 21,198,239 One-Time Prior Year Budget Adjustments Impact Fee Nexus Study — (60,000) — (60,000) One-Time Prior Year Budget Adjustments —(60,000)—(60,000) Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 255,892 — 255,892 Project Safety Net Transition (Year 2) (0.45) (196,790) — (196,790) Realignment of Animal Control Staffing to Police Department (0.48) (60,663) — (60,663) Youth Community Services Funding Expiration — (50,000) — (50,000) Realignment of Cubberley Staffing to Cubberley Fund (CMR #9925, approved by the City Council on December 17, 2018) (0.25) (29,662) — (29,662) Eliminate Funding for Downtown Streets Team Park Maintenance — (29,124) — (29,124) General Contract Adjustments — (12,701) — (12,701) Animal Services Shelter Transition from Police Department to Community Services Department with Pets-In-Need (CMR #9822 Approved by the City Council on November 26, 2018) (Year 2) — (6,840) — (6,840) Transfer to Electric Fund for Canopy Contract — (6,990) — (6,990) Arastradero Stewardship Consumer Price Index Adjustment — 2,030 — 2,030 Technical Clean-Up for Arts & Sciences Professional — 5,369 — 5,369 Supplies and Materials Adjustments — 9,000 9,000 — CSD Management Alignment (Year 2) (1.00) 33,942 — 33,942 Human Services Resource Allocation Program/ Avenidas/PACC (consumer price index)— 40,713 — 40,713 Golf Course Revenue and Expense (CMR #8848, approved by the City Council on April 6, 2018)— 41,280 1,440 39,840 Institute of Museum and Library Services Grant for Interns — 43,500 43,500 — Glyphosate Elimination at Road Medians Around 6 Schools — 67,000 — 67,000 Expansion of Special Interest Classes — 70,500 70,500 — Recreation Management System Software — 101,170 101,170 — ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 8 COMMUNITY SERVICES Communication Services Allocated Charges — 8,600 — 8,600 Information Technology Allocated Charges — (50,183)— (50,183) Landscape Maintenance Contract/Allocated Charges —— 5,126 (5,126) Liability Insurance Allocated Charges — 36,094 — 36,094 Printing & Mailing Services Allocated Charges — 38,295 — 38,295 Refuse Allocated Charges — 14,236 — 14,236 Stormwater Management Allocated Charges — 1,102 — 1,102 Utilities Allocated Charges — 254,925 — 254,925 Vehicle Replacement & Maintenance Allocated Charges — 43,972 — 43,972 Workers' Compensation Allocated Charges — 14,003 — 14,003 Adjustments to Costs of Ongoing Activities (2.18)638,670 230,736 407,934 Total FY 2021 Base Budget 122.73 31,498,854 9,952,681 21,546,173 Budget Adjustments 1 New Junior Museum and Zoo Operating Plan 6.79 845,454 1,186,247 (340,793) 2 Therapeutics Staffing (Reclassification) — 5,982 — 5,982 3 Art Center Position Request & Contract Funding 0.20 40,205 40,205 — 4 Art Center and Public Art Installation Position 0.99 — — — 7.98 891,640 1,226,452 (334,811) 130.71 32,390,494 11,179,133 21,211,362 (3.48) (585,750)— (585,750) — (224,990) (46,000)— (6.09) (721,254) (283,643) (437,611) (2.44) (201,590) (50,000) (151,590) (4.26) (452,084) (4,623) (447,461) (3.27) (282,695)— (282,695) — (274,844)— (274,844) — (154,404) (13,542) (140,862) (1.17)(243,905)— (243,905) Requests Total FY 2021 Budget Adjustments Total FY 2021 Proposed Budget Position Reductions Junior Museum and Zoo Reduce Theater Programming and Support Teen Services Reduction Art Center Programming Reductions Community Center Reductions Parks Maintenance Contract Service Reductions Community Program and Event Reductions Open Space and Recreation Reductions Human Services Funding Reductions — (100,000)— (100,000) Budget Reconciliation Positions Expenditures Revenues Net General Fund Revisions to FY 2021 Proposed Budget Middle School Athletics and Adult Sports Leagues —— 100,521 (100,521) 110.00 29,148,978 10,881,846 18,446,123 Revenue Adjustments Total FY 2021 Revised Proposed Budget ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 9 FIRE Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 98.40 34,863,692 11,264,190 23,599,502 One-Time Prior Year Budget Adjustments Fire Staffing Adjustment — 352,511 — 352,511 Firefighter New Hire Costs — (80,625) — (80,625) Equipment Replacement — (48,000) — (48,000) One-Time Prior Year Budget Adjustments —223,886 —223,886 Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 762,325 — 762,325 Overtime Adjustments — 63,958 — 63,958 Stanford Emergency Fire Services Annual Revenue Alignment — — (260,787) 260,787 State Quality Assurance Fee Alignment — 5,000 5,000 — Communication Services Allocated Charges — 14,800 — 14,800 Industrial Waste Discharge Fee Allocated Charges — 2,910 — 2,910 Information Technology Allocated Charges — (33,841) — (33,841) Liability Insurance Allocated Charges — 37,381 — 37,381 Printing & Mailing Services Allocated Charges — 339 — 339 Refuse Allocated Charges — (621) — (621) Stormwater Management Allocated Charges — (194) — (194) Utilities Allocated Charges — 13,178 — 13,178 Vehicle Replacement & Maintenance Allocated Charges — 3,899 — 3,899 Workers' Compensation Allocated Charges — 44,897 — 44,897 Adjustments to Costs of Ongoing Activities —914,031 (255,787)1,169,818 Total FY 2021 Base Budget 98.40 36,001,609 11,008,403 24,993,206 Budget Adjustments Modified Staffing and Overtime Adjustment — 209,225 — 209,225 Total Budget Adjustments —209,225 —209,225 Total FY 2021 Proposed Budget 98.40 36,210,834 11,008,403 25,202,431 Revisions to FY 2021 Proposed Budget ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 10 FIRE Planning Inspection and Plan Review (0.40) (93,297)— (93,297) First Responder and Ambulance Subscriptions Fee —— 1,855,000 (1,855,000) Emergency Incident Response Services (5.00) (831,555) (202,100) (629,455) Fire Administrative and Support Services (2.20) (412,000)— (412,000) Total FY 2021 Revised Proposed Budget 90.80 34,873,982 12,661,303 22,212,679 Budget Reconciliation Positions Expenditures Revenues Net General Fund ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 11 HUMAN RESOURCES Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 16.96 3,945,119 1,856,860 2,088,259 One-Time Prior Year Budget Adjustments Candidate Screening Tools — (80,000) — (80,000) One-Time Prior Year Budget Adjustments —(80,000)—(80,000) Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 225,334 — 225,334 General Fund Cost Allocation Plan — — 57,799 (57,799) Liability Insurance Allocated Charges — 9,006 — 9,006 Information Technology Allocated Charges — (4,855) — (4,855) Printing & Mailing Services Allocated Charges — (9,767) — (9,767) Workers' Compensation Allocated Charges — 2,854 — 2,854 Adjustments to Costs of Ongoing Activities —222,572 57,799 164,773 Total FY 2021 Base Budget 16.96 4,087,691 1,914,659 2,173,032 Budget Adjustments Total Budget Adjustments Total FY 2021 Proposed Budget 16.96 4,087,691 1,914,659 2,173,032 Revisions to FY 2021 Proposed Budget Position Reductions (1.96)(236,001)— (236,001) Total FY 2021 Proposed Revised Budget 15.00 3,851,690 1,914,659 1,937,031 ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 12 LIBRARY Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 61.28 10,314,028 210,017 10,104,011 One-Time Prior Year Budget Adjustments Pacific Library Partnership (PLP) Grant Funds Distribution — (8,723) (8,723) — One-Time Prior Year Budget Adjustments —(8,723)(8,723)— Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 174,489 — 174,489 Library Equipment Maintenance Expenses Adjustment — 13,915 — 13,915 General Liability Insurance Allocated Charges — 13,292 — 13,292 Information Technology Allocated Charges — (55,443) — (55,443) Printing & Mailing Allocated Charges — (128) — (128) Refuse Allocated Charges — 10,868 — 10,868 Stormwater Management Allocated Charges — 60 — 60 Utilities Allocated Charges — (20,934) — (20,934) Vehicle Replacement & Maintenance Charges — 413 — 413 Workers Compensation Allocated Charges — 6,015 — 6,015 Adjustments to Costs of Ongoing Activities —142,548 —142,548 Total FY 2021 Base Budget 61.28 10,447,853 201,294 10,246,559 Budget Proposals Elimination of Library Late Fines for Overdue Adult Materials — — (85,178) 85,178 Budget Changes ——(85,178)85,178 Total FY 2021 Proposed Budget 61.28 10,447,853 116,116 10,331,737 Revisions to FY 2021 Proposed Budget Position Reductions (7.14) (718,410) — (718,410) Reduced Library Hours & Services (9.27) (694,616) — (694,616) Travel, Training, and Materials Expense Reductions — (241,500) — (241,500) Total FY 2021 Revised Proposed Budget 44.87 8,793,327 116,116 8,677,211 ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 13 OFFICE OF EMERGENCY SERVICES Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 3.48 1,728,080 295,589 1,432,491 One-Time Prior Year Budget Adjustments Mobile Solar Energy Generation and Storage Trailer — (200,000) (200,000) — One-Time Prior Year Budget Adjustments —(200,000)(200,000)— Adjustments to Costs of Ongoing Activities Salary and Benefits — 48,446 — 48,446 Contract Services Realignment (Shift to Communication Services and Utilities Allocation) — (100) — (100) Information Technology Allocated Charges — 423 — 423 Liability Insurance Allocated Charges — 2,046 — 2,046 Printing & Mailing Services Allocated Charges — 2,363 — 2,363 Vehicle Replacement & Maintenance Allocated Charges — 2,729 — 2,729 Workers' Compensation Allocated Charges — 1,827 — 1,827 Adjustments to Costs of Ongoing Activities —57,734 —57,734 Total FY 2021 Proposed Budget 3.48 1,585,814 95,589 1,490,225 Revisions to FY 2021 Proposed Budget Position Reduction (1.00)(98,204)— (98,204) Intrusion Detection Systems — (60,000)— (60,000) Total FY 2021 Revised Proposed Budget 2.48 1,427,610 95,589 1,332,021 ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 14 PLANNING AND DEVELOPMENT SERVICES 8 PLANNING AND DEVELOPMENT SERVICES • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 65.37 20,363,132 18,064,577 2,298,555 One-Time Prior Year Budget Adjustments Planning and Development Services Department Vacancies — 152,393 — 152,393 Planning and Development Services Department Staffing Reorganization (1.00) (267,683) — (267,683) One-Time Prior Year Budget Adjustments (1.00)(115,290)—(115,290) Adjustments to Costs of Ongoing Activities Salary and Benefits (0.15) 305,315 — 305,315 Rent and Lease Expenditure (office space lease at 526 Bryant St)— 115,269 — 115,269 On-Call Contracts Increase — 165,200 — 165,200 Revenue Adjustment (align with cost recovery levels)— — 397,354 (397,354) Utilities Transfer for Electric Services — (7,607) — (7,607) Communication Services Allocated Charges — 800 — 800 Information Technology Allocated Charges — (101,606) — (101,606) Liability Insurance Allocated Charges — 11,979 — 11,979 Printing & Mailing Services Allocated Charges — (67,119) — (67,119) Utilities Allocated Charges — (30,600) — (30,600) Vehicle Replacement & Maintenance Allocated Charges — 46,767 — 46,767 Workers' Compensation Allocated Charges — 3,393 — 3,393 Adjustments to Costs of Ongoing Activities (0.15)441,790 397,354 44,436 Total FY 2021 Base Budget 64.22 20,689,632 18,461,931 2,227,701 Budget Adjustments Planning and Development Services Fee Study — 110,000 — 110,000 Total Budget Adjustments —110,000 —110,000 Total FY 2021 Proposed Budget 64.22 20,799,632 18,461,931 2,337,701 Revisions to FY 2021 Proposed Budget Administration and Program Assistance (2.48) (450,691) — (450,691) Current Planning and Development Services Front Counter (2.00) (736,897) (486,607) (250,290) Code Enforcement (2.00) (264,546) — (264,546) Building Inspection and Plan Review 1.00 (401,295) (1,335,306) 934,011 ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 15 PLANNING AND DEVELOPMENT SERVICES Fire Inspection and Plan Review (2.08) (531,561) (529,424) (2,137) Green Building — (105,548) (68,985) (36,563) Development Services Public Works Alignment (0.70) (208,853) (207,162) (1,691) Development Services Reserve Fund (DSRF)—— 500,000 (500,000) Total FY 2021 Revised Proposed Budget 55.96 18,100,241 16,334,447 1,765,794 Budget Reconciliation Positions Expenditures Revenues Net General Fund ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 16 POLICE POLICE • CITY OF PALO ALTO FISCAL YEAR 2021 PROPOSED OPERATING BUDGET 7 Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 151.82 44,666,482 4,352,227 40,314,255 One-Time Prior Year Budget Adjustments CAD Reporting System Update — (45,000) — (45,000) One-Time Prior Year Budget Adjustments —(45,000)—(45,000) Adjustments to Costs of Ongoing Activities Salary and Benefits — 2,053,362 — 2,053,362 Overtime Adjustment — 51,537 — 51,537 Animal Services Revenue Alignments/Adjustments — — (369,157) 369,157 SVRIA Subscription Fee Adjustments — 197,550 46,300 151,250 Staffing Vacancies Alignment — 88,636 — 88,636 Animal Services Staffing Realignment 0.48 35,000 — 35,000 Contractual Increases — 15,400 — 15,400 Revenue Alignments — — (13,000) 13,000 Crossing Guards (CMR #8952 approved June 25, 2018)— 7,806 — 7,806 Stanford Emergency Communication Services Revenue — — 64,098 (64,098) Task Force Reimbursement — — 130,000 (130,000) Communication Services Allocated Charges — — 160,850 (160,850) Information Technology Allocated Charges — (97,090) — (97,090) Liability Insurance Allocated Charges — 86,247 — 86,247 Printing & Mailing Services Allocated Charges — 10,893 — 10,893 Utilities Allocated Charges — (3,743) — (3,743) Vehicle Replacement & Maintenance Allocated Charges — (2,966) — (2,966) Workers' Compensation Allocated Charges — 45,960 — 45,960 Adjustments to Costs of Ongoing Activities 0.48 2,488,592 19,091 2,469,501 Total FY 2021 Proposed Budget 152.30 47,110,074 4,371,318 42,738,756 Revisions to FY 2021 Proposed Budget Reduction in Police Relations (1.00) (196,465) — (196,465) Reallocate Position from Policy to City Manager's Office — (296,190) — (296,190) Patrol Operations (8.87) (1,822,497) — (1,822,497) Technical Services Support (1.80) (391,139) — (391,139) ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 17 POLICE Dispatch Services (5.49) (1,323,353) (131,000) (1,192,353) Information Management and Records (0.29) (24,129)— (24,129) Reduce Police Investigations (2.08) (345,649)— (345,649) Reduce Police Reserve Program (0.72) (75,449)— (75,449) Suspend Traffic Program (3.00) (539,134)— (539,134) Suspend Parent Project — (60,000)— (60,000) Recruitment (1.22) (443,819)— (443,819) Reduce Training — (103,901)— (103,901) Animal Control Program (1.48) (139,863) (40,372) (99,491) Total FY 2021 Revised Proposed Budget 126.35 41,348,486 4,199,946 37,148,540 Budget Reconciliation Positions Expenditures Revenues Net General Fund ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 18 PUBLIC WORKS Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget 50.45 19,188,318 3,275,539 15,912,779 One-Time Prior Year Budget Adjustments None One-Time Prior Year Budget Adjustments Adjustments to Costs of Ongoing Activities Salary and Benefits Adjustments — 272,245 — 272,245 OOS Transition — 261,767 (2,516) 264,283 Custodial Contract (Amendment #2) — 67,850 — 67,850 Custodial Contract (Year 4 & Contingency) — 60,455 — 60,455 Charges to Other Funds for Engineering Services — — (40,874) 40,874 San Francisquito Creek Joint Powers Authority (SFJPA) Annual Membership Fee — 9,250 — 9,250 Contract Services Alignment — 1,396 — 1,396 Urban Forestry Mitigation Fee for Tree Planting — (48,500) (48,500) — Vacancy Factor Adjustment — (45,155) — (45,155) Urban Forestry Contract Alignment — (104,345) — (104,345) Transfer to Electric Fund — (16,574) — (16,574) General Fund Cost Allocation Plan — — (130,717) 130,717 Communication Services Allocated Charges — 35,150 — 35,150 Liability Insurance Allocated Charges — 45,584 — 45,584 Information Technology Allocated Charges — (19,268) — (19,268) Printing & Mailing Services Allocated Charges — 10,759 — 10,759 Public Works Administration Allocated Charges — — (26,297) 26,297 Refuse Allocated Charges — (4,888) — (4,888) Stormwater Management Allocated Charges — 748 — 748 Utilities Allocated Charges — (132,335) — (132,335) Vehicle Replacement & Maintenance Allocated Charges — 101,282 — 101,282 Workers' Compensation Allocated Charges — 8,064 — 8,064 Adjustments to Costs of Ongoing Activities —503,485 (248,904)752,389 Total FY 2021 Proposed Budget 50.45 19,691,803 3,026,635 16,665,168 Revisions to FY 2021 Proposed Budget Streets & Sidewalks Program Reductions — (700,000) — (700,000) ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 19 PUBLIC WORKS San Fancisquito Creek Joint Powers Authority (SFCJPA) Membership — 118,750 — 118,750 Public Works Development Services Alignment 0.45 80,109 — 80,109 Urban Forestry — (654,399) — (654,399) Buildings and Facilities Reductions (0.65) (110,642) — (110,642) Total FY 2021 Revised Proposed Budget 50.25 18,425,621 3,026,635 15,398,986 Budget Reconciliation Positions Expenditures Revenues Net General Fund ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 20 NON-DEPARTMENTAL Budget Reconciliation Positions Expenditures Revenues Net General Fund Prior Year Budget —42,975,631 —42,975,631 One-Time Prior Year Budget Adjustments Reserve: Budget Operations Reserve — (1,125,899) — (1,125,899) Residential Parking Permit Program Operating Deficit Transfer to RPP Fund — (683,810) — (683,810) Reserve: Recruitment and Retention Initiatives — (500,000) — (500,000) Airplane Noise Funding — (100,000) — (100,000) Sea Level Rise Study Funding — (50,000) — (50,000) Transfer to Business Improvement District Funding — (17,000) — (17,000) One-Time Prior Year Budget Adjustments —(2,476,709)—(2,476,709) Adjustments to Costs of Ongoing Activities Transfer to Infrastructure — 3,610,524 — 3,610,524 Residential Parking Permit Program Operating Deficit Transfer to RPP Fund — 185,000 — 185,000 Traffic and Streetlight Electricity Costs Adjustment — 62,472 — 62,472 CPI Adjustment for El Camino Park Lease — 25,873 — 25,873 Transfer to University Avenue Parking Fund — 16,470 — 16,470 Property Tax Administration — 2,374 — 2,374 Transfer to Public Art Fund — 2 — 2 Transfer to Technology Fund (Technology Surcharge)— (34,477) — (34,477) Cubberley Lease Payments to PAUSD — (89,915) — (89,915) Sustainability Contingency — (100,000) — (100,000) Adjustments to Costs of Ongoing Activities —3,678,283 —3,678,283 Total FY 2020 Base Budget —44,177,205 —44,177,205 Budget Adjustments November 2020 Elections — 225,000 — 225,000 Shift City Attorney's Contingency Funds to City Attorney's Budget — (100,000) — (100,000) Total Budget Adjustments —125,000 —125,000 Total FY 2020 Proposed Budget —44,302,205 —44,302,205 Revisions to FY 2021 Proposed Budget Cubberley Lease Adjustment — (2,500,000) — (2,500,000) City Council Contingency — (125,000) — (125,000) ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 21 NON-DEPARTMENTAL Innovation and Special Events Contingency — (50,000)— (50,000) Human Resources Contingency — (50,000)— (50,000) Reduce General Fund Base Transfer to Capital — (9,950,000)— (9,950,000) Reduce TOT Transfer to Capital — (8,455,000)— (8,455,000) RPP Parking Administrative Program Revisions — (185,000)— (185,000) Management and Professionals Unrepresented Group Compensation — (3,473,000)— (3,473,000) COVID-19 Recovery: Contact Tracing — 450,000 — 450,000 — 150,000 — 150,000COVID-19 Recovery: Business & Comm. Support COVID-19 Recovery: Workplace Restoration — 350,000 — 350,000 Litigation Reserve —1,000,000 —1,000,000 Implementation Costs Associated with Balancing Strategy — 2,075,000 — 2,075,000 Total FY 2021 Revised Proposed Budget —23,539,205 —23,539,205 Budget Reconciliation Positions Expenditures Revenues Net General Fund ATTACHMENT D:Combined FY 2021 Proposed Budget & CMR 11376 (as of 5/26) 22