HomeMy WebLinkAboutStaff report 12397
City of Palo Alto (ID # 12397)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 10/18/2021
City of Palo Alto Page 1
Title: Approval of Fiscal Year 2021 Reappropriation Requests to be Carried
Forward Into Fiscal Year 2022 and Budget Amendments in Various Funds
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that the City Council amend the Fiscal Year 2022 Budget Appropriation
Ordinance for various funds as identified in Attachment A, and various capital projects as
identified in Attachment B and Attachment C (requires a supermajority approval).
Background
As a part of the fiscal year-end process, staff reviews the City’s unencumbered and unspent
appropriations of the fiscal year just ended, along with the City’s spending plans. Encumbered
amounts are those subject to the legal claims of other parties due to contractual obligations
(for example, commitments made through purchase orders), which are carried forward from
one fiscal year to the next. Each year there are a small number of important projects which staff
was not able to complete or encumber funds. The reappropriation process allows staff to bring
forward funding recommendations to City Council to continue these projects into the next fiscal
year.
On September 22, 2014, the City Council approved a recommendation to amend Chapter 2.28,
Section 2.28.090 of the Municipal Code, reducing the previous two-step reappropriations
process (preliminary and final reappropriation authorization) to one step as long as the
Administrative Services Department (ASD) Director/Chief Financial Officer (CFO) certifies that
sufficient unencumbered and unexpended funds are available in the Fiscal Year that just ended
to be carried forward to the subsequent Fiscal Year.
Additionally, the City Council amended the Municipal Code to eliminate the provision allowing
for the automatic reappropriation of capital project funds. However, capital projects may still
be delayed or deferred for various reasons. Therefore, there remains a need to reappropriate
funds for capital projects in some instances. This reappropriation is completed through a review
of the status of projects as part of the annual budget process and built into the annual adopted
budget. Now that Fiscal Year 2021 has closed and staff has processed necessary accounting
transactions, unexpended and unencumbered funds for each capital project have been
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reviewed one final time. Based on that review, staff recommends capital dollars remaining for
some projects in various funds through Fiscal Year 2021 are reappropriated to Fiscal Year 2022.
Also, as part of this review, staff realized that for some projects too much funding was
recommended for reappropriation as additional expenditures occurred in Fiscal Year 2021.
Therefore, this staff report also recommends reversing a portion of previously authorized
reappropriations. In a few capital projects, more funding was spent in FY 2021 than was
recommended for reappropriation. In these projects, staff is recommending technical clean-up
actions to reduce the funds appropriated in FY 2022 to increase the funding appropriated in FY
2021 while maintaining the overall total project budget.
Discussion
Attachment A identifies those operating budget requests that staff recommends for approval,
while Attachment B lists recommended capital project requests. Attachment C includes the
recommended technical clean-up items for a few capital projects. With the submission of this
report for City Council consideration, the ASD Director/CFO certifies sufficient unencumbered
and unexpended funds are available from Fiscal Year 2021 to be reappropriated to Fiscal Year
2022. This report is being brough prior to the preliminary Q1 financial status updated
scheduled to be considered by the full Council on October 25th in order to support the
continuity of business for these ongoing projects and initiatives. Adjustments to FY 2022
budget, even as recommended to be revised in this report, and a report out on the preliminary
FY 2021 year end result will be included in the October 25th preliminary Q1 FY 2022 agenda
item.
Operating Budget Reappropriations
The projects recommended for budget reappropriations are outlined in more detail in
Attachment A and can generally be grouped into the following categories:
• Funding for Citywide Council Priorities and Recovery: Items in this category are related
to citywide priority and recovery needs previously identified by the Council that could
not be completed in FY 2021 and funding is recommended to be reappropriated to FY
2022 to complete the work. Examples of projects in this category include: Litigation
Settlement ($1.25 million), Other Post-Employment Benefits (OPEB) Payment to Trust
Fund ($1.4 million), COVID-19 Recovery ($0.9 million), Transition Reserve ($0.8 million),
Rent Forgiveness Program ($0.7 million), and Advancing Racial Equity ($0.5 million). A
number of these initiatives were delayed due the continued shelter-in-place orders
beyond initial estimated timeframes changing the reactivation efforts to being in
summer 2021.
• Timing and Workload Delays: Projects in this category were delayed due to competing
workload demands, appropriation of funds late in the fiscal year, or other unanticipated
delays, including COVID-19 and related impacts. Examples of projects in this category
include: Low Carbon Fuel Standard (LCFS) Program ($1.2 million), Fiber Community
Engagement ($0.2 million), Urban Forest Master Plan (LiDAR) data and analysis ($0.1
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million), Sustainability and Climate Action Plan (S/CAP) Affordability Study and
Electrification Modeling ($0.1 million), Stormdrain Pump Rehabilitation ($0.1 million),
Elwell Court Office Improvements ($0.1 million), and the Foothills Park Ticket Machine
($20,000).
• Multi-year Funding Agreements: Projects in this category include approved donations,
grants, loans, and other funding agreements that are anticipated to continue in the
coming year. Examples in this category include: Alta Housing (formerly Palo Alto Housing
Corporation) Loan for Affordable Housing at Wilton Court ($1.8 million), Direct Cost
Recovery Projects in the Planning and Development Services Department ($0.4 million),
Gas Heat Pump Retrofit Pilot Program ($0.3 million), Various Grants for the Community
Service and Library Departments ($0.1 million), and the SB2 Grant to streamline
affordable housing ($0.1 million).
• Human Services Resource Allocation Process (HSRAP) Reserve: As part of the FY 2015
Adopted Budget, the City Council established a one-time reserve of $50,000 for HSRAP
funding requests. In FY 2019, $10,000 was allocated to Heart and Home Collaborative, a
non-profit organization that provides shelter and services to unhoused women in Palo
Alto. No additional funds were allocated from this reserve in FY 2021, so the remaining
balance of $40,000 is recommended to be reappropriated to FY 2022.
• Think Fund Teen Services Programs (formerly Bryant Street Garage Teen Program): In
2001, the City Council voted to lease out a garage property located at 455 Bryant Street.
Since this site was formerly the location of the Bryant Street Teen Center, a stipulation
in the lease required that seventy five percent of the rental revenues would be used to
fund programs specifically for Palo Alto youth and teens. In prior years, Staff has
returned to the Policy and Services Committee and City Council for guidance on
community engagement and potential uses of this funding (CMR 4776, CMR 8887). Teen
Services programs include but are not limited to: Think Fund grants, ClickPA website,
Teen Arts Council, MakeX, Art Center, Think Fund Gala, and the Buoyancy Teen Festival.
The unspent balance of $0.2 million is recommended to be reappropriated to FY 2022 to
ensure resources are available to continue providing quality teen services to the
community and develop a long‐term approach to maintain delivery of these services.
• Management Training Program: The Management Training Program provides $1,000
per eligible employee under the terms outlined in the MGMT and PAPMA labor
agreements. The purpose of this program is to provide employees with resources to
improve and supplement their job and professional skills. In total, $0.3 million in unused
funding is requested to be reappropriated to FY 2022 for various training programs,
including: ethics, civics and citizen engagement, leadership and management, budget,
finance, procurement, interpersonal communication, presentation skills, business
writing, time management, project management, change management, online based
education, and safety & security.
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Capital Budget Reappropriations
As discussed in the Background section of this report, starting with the Fiscal Year 2016 capital
budget, all capital project reappropriations require City Council approval. The FY 2022 Adopted
Budget included $76.6 million in reappropriated expenditure funds, partially offset by $35.7
million in reappropriated revenue, across all City funds based on estimates of anticipated
spending and revenue collections in FY 2021. Since the adoption of the capital budget, some
adjustments and refinements to project reappropriations are required since FY 2021 year-end
actuals and projects costs have been updated to reflect actual experience. These primarily
reflect either increases or decreases to assumed reappropriations in the FY 2022 Adopted
Budget:
• Additional reappropriations are recommended when project expenditures originally
anticipated to occur before the end of FY 2021 will now instead occur in FY 2022.
Similarly, revenue anticipated to be collected in FY 2021 will be reappropriated to FY
2022 to align with actual collections.
• Downward adjustments to reappropriations are recommended when expenses are no
longer anticipated to occur in FY 2022 and funding was previously reappropriated in the
budget document to FY 2022. If expenses were realized in FY 2021, an adjustment to
reduce the budgeted reappropriation is needed as the activity no longer needs funding
in FY 2022. The downward reappropriation of revenue is treated similarly; an
adjustment to reduce the reappropriated revenue is needed to align collections in the
appropriate fiscal year.
Table 1 summarizes the recommended net adjustments as detailed in Attachment B. These
Fiscal Year 2021 adjustment amounts represent the final step in the City Council-approved
change to the reappropriation process. There are sufficient expenditure savings in Fiscal Year
2021 to support all recommended adjustments.
It should be noted the revised process and active review of all project reappropriations results
in a reduced level of reappropriated funding from one year to the next, compared to the
process of automatically reappropriating unspent capital funding, and better reflects the needs
of the various capital projects and of the overall program.
Table 1: Year-End Capital Project Reappropriation Summary – By Fund
Fund
Number of
Projects
Recommended
Revenue
Reappropriation
Adjustment
Recommended Expense
Reappropriation
Adjustment
Capital Improvement Fund 54 $14,427,825 $46,556,468
Cubberley Infrastructure Fund 3 $0 $1,025,808
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Airport Fund 2 $11,430,390 $517,735
Electric Fund 18 $0 $8,559,958
Gas Fund 1 $0 $376,919
Stormwater Management Fund 3 $0 $3,476,319
Wastewater Collection Fund 3 $0 $708,945
Wastewater Treatment Fund 6 $28,638,308 $17,572,480
Water Fund 4 $0 $4,410,284
Technology Fund 4 $0 $1,074,894
Vehicle Replacement and
Maintenance Fund 3 $0 $1,826,364
Total All Funds 101 $54,496,523 $86,106,174
Technical Clean-up Actions
As detailed in Attachment C, the Charleston/Arastradero Corridor (PE-13011) and Street
Maintenance (PE-86070) projects were overspent in the Capital Improvement Fund in FY 2021
by a total of $4,400,814. In order to fund the overage for these projects in FY 2021, staff is
recommending a technical clean-up action to reduce the funds appropriated in FY 2022 in order
to shift the funding back into FY 2021 for $3,171,040 in PE-13011 and $1,229,774 in PE-86070.
A corresponding adjustment will be done in FY 2021 as part of the FY 2021 Year-End clean-up
process, currently scheduled for review by the Finance Committee in November 2021. This will
align the budget by year with the actual expenses by year.
Resource Impact
All projects, programs and corresponding funding contained within this report were previously
approved by the City Council for FY 2021, this report simply realigns funding between fiscal
years to align with the status of projects and programs. The ASD Director/CFO certified that
sufficient funds exist for the recommended Fiscal Year 2021 Operating Budget adjustments
(Attachment A), and Capital Budget adjustments (Attachment B and Attachment C). For
Operating reappropriations, staff recommends expense reappropriations of $5.5 million in the
General Fund, $1.8 million in Special Revenue Funds, $2.0 million in Enterprise Funds, and $1.5
million in Internal Service Funds. Additionally, staff recommends revenue reappropriations of
$0.9 million in the General Fund and $0.2 million in Enterprise Funds.
For capital projects, in addition to the amounts reappropriated as part of the FY 2022 Adopted
Capital Budget, staff recommends $3.8 million in expenses be reappropriated to FY 2022 in the
Capital Improvement Funds, offset by $1.7 million in revenue reappropriations. Also
recommended is $5.6 million in additional expenses reappropriated in various Enterprise Funds,
offset by $17.2 million in revenues (due to timing of anticipated reimbursements from federal
grants in the Airport Fund), and a net reduction of $0.9 million in expenditures in the Internal
Service Funds. The cumulative reappropriation, including amounts approved in the FY 2022
Adopted Capital Budget, will be $47.6 million in expenses, partially offset by $14.4 million in
revenue in the Capital Improvement Fund projects; $35.6 million in expenses, partially offset by
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$40.1 million in revenue in the Enterprise Fund projects; and $2.9 million in expenses, in the
Internal Service Fund projects. The results of the reappropriations and technical clean-up
actions will have a net zero impact to the total projects’ budgets over the life of the projects.
Policy Implications
This recommendation is consistent with adopted Council policy.
Stakeholder Engagement
Review and reconciliation of the funding available for both the Operating reappropriations and
the reappropriations for individual Capital projects was coordinated between ASD divisions of
the Office of Management and Budget and Accounting as well as with the impacted
departments.
Environmental Review
The action recommended is not a project for the purposes of the California Environmental
Quality Act.
Attachments:
• Attachment10.a: Attachment A: FY21 to FY22 Reappropriation Requests_Operating
• Attachment10.b: Attachment B: FY21 to FY22 Reappropriation Requests_Capital
• Attachment10.c: Attachment C: Technical Clean-up Actions
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FY 2021 TO FY 2022 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description Recommended
Revenue Appropriation
Recommended
Expense
Appropriation
General Fund Community Services Art Center Ceramics Studio Bequest This action reappropriates a bequest from the Sherrie Innis Estate. On June
19, 2017, the City Council approved a bequest of $54,350 from the Sherrie
Innis Estate to maintain and upgrade the ceramic studio at the Palo Alto Art
Center (CMR 8187). The ceramics studio maintains kilns, wheels, and
several other large pieces of equipment that will need repair or
replacement in the near future. The program does not have funding
appropriated for major repairs and replacements and uses the bequest for
these needs. At the close of FY 2021, $30,000 remained unspent and is
recommended to be reappropriated for repair and replacement needs in FY
2022.
$ - $ 30,000
General Fund Community Services Bryant Street Garage Revenue for
Teen Services
This action reappropriates funds for teen services from revenue generated
by the rental of the Bryant Street Garage. In 2001, the City Council voted to
lease out a garage property located at 455 Bryant Street. Since this site was
formerly the location of the Bryant Street Teen Center, a stipulation in the
lease required that seventy five percent of the rental revenues would be
used to fund programs specifically for Palo Alto youth and teens. In prior
years, Staff has returned to the Policy and Services Committee and City
Council for guidance on community engagement and potential uses of this
funding (CMR 4776, CMR 8887). Teen services programs include but are not
limited to: Think Fund grants, ClickPA website, Teen Arts Council, MakeX,
Art Center, Think Fund Gala and the Buoyancy Teen Festival. This action will
reappropriate $201,000, the remaining value, to ensure resources are
available to continue providing quality teen services to the community and
develop a long‐term approach to maintain delivery of these services.
$ - $ 201,000
General Fund Community Services Foothills Park Ticket Machine This action reappropriates $20,000 for the purchase and installation of an
automated ticket sales machine at Foothills Park. This funding was initially
appropriated in the FY 2021 Midyear Budget Review (CMR 11872). The
machine was not able to be purchased in FY 2021, therefore the funding is
recommended to be reappropriated. This will allow collection of entry fees
full-time.
$ - $ 20,000
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FY 2021 TO FY 2022 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description Recommended
Revenue Appropriation
Recommended
Expense
Appropriation
General Fund Community Services Institute of Museum and Library
Services (IMLS) Cares Grant
This action reappropriates grant revenue and expense received by the
Library and Community Services Departments from the federal IMLS
Coronavirus Aid, Relief, and Economic Security (CARES) Grant program. As
part of the nation’s response to the pandemic through the CARES Act, IMLS
funded direct grants to respond quickly, efficiently, and with significant
impact to the national emergency. The goal of this grant program is to
support the role of museums and libraries in responding to the coronavirus
pandemic in ways that meet the immediate and future COVID-19 needs of
the communities and audiences they serve. The CARES Act provided funds
to the IMLS “to prevent, prepare for, and respond to coronavirus…to
expand digital network access, purchase internet accessible devices, and
provide technical support services” for the benefit of communities
impacted by the public health emergency. On October 19, 2020 City Council
approved the recognition of this grant of $128,286 (CMR 11676). Work on
the grant programming was delayed and will continue into FY 2022 so
remaining expenses and revenues are recommended to be reappropriated.
$ 59,300 $ 59,300
General Fund Library IMLS Cares Grant This action reappropriates grant revenue and expense received by the
Library and Community Services Departments from the federal IMLS
Coronavirus Aid, Relief, and Economic Security (CARES) Grant program. As
part of the nation’s response to the pandemic through the CARES Act, IMLS
funded direct grants to respond quickly, efficiently, and with significant
impact to the national emergency. The goal of this grant program is to
support the role of museums and libraries in responding to the coronavirus
pandemic in ways that meet the immediate and future COVID-19 needs of
the communities and audiences they serve. The CARES Act provided funds
to the IMLS “to prevent, prepare for, and respond to coronavirus…to
expand digital network access, purchase internet accessible devices, and
provide technical support services” for the benefit of communities
impacted by the public health emergency. On October 19, 2020 City Council
approved the recognition of this grant of $128,286 (CMR 11676). Work on
the grant programming was delayed and will continue into FY 2022 so
remaining expenses and revenues are recommended to be reappropriated.
$ 14,500 $ 14,500
General Fund Library PLP Grant and CopyCat Grant This action reappropriates remaining revenue and expense from two grants
awarded in FY 2021, the California State Library's Library Services and
Technology Act (LSTA) CopyCat grant and the Pacific Library Partnership's
(PLP) Innovation and Technology Opportunity grant. On February 22, 2021
City Council approved the recognition of these grants (CMR 11872). Work
on the grants programming was delayed and will continue into FY 2022 so
remaining expenses and revenues are recommended to be reappropriated.
$ 10,000 $ 20,000
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FY 2021 TO FY 2022 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description Recommended
Revenue Appropriation
Recommended
Expense
Appropriation
General Fund Non-Departmental Human Services Resource
Allocation Program (HSRAP)
Reserve
This action reappropriates the remaining balance in the Human Services
Resource Allocation Program (HSRAP) Reserve. As part of the FY 2015
Adopted Budget, the City Council established a one‐time reserve of $50,000
for HSRAP funding requests. In FY 2019, $10,000 was allocated to Heart and
Home Collaborative, a non‐profit organization that provides shelter and
services to unhoused women in Palo Alto. The remaining balance of
$40,000 is recommended to be reappropriated to FY 2022 for future HSRAP
use.
$ - $ 40,000
General Fund Non-Departmental Management Development Funds This action reappropriates funding for management training and
professional development. The Management Training Program provides
$1,000 per eligible employee under the terms outlined in the labor
agreements with the Management and Professional group and the Palo
Alto Police Management Association. The purpose of this program is to
provide employees with resources to improve and supplement their job
and professional skills. This action is recommended for the continuation of
the program and will include the following training programs: ethics, civics
and citizen engagement, leadership and management, budget, finance,
procurement, interpersonal communication, presentation skills, business
writing, time management, project management, change management,
online-based education, and safety & security.
$ - $ 287,000
General Fund Non-Departmental Advancing Racial Equity An allocation of $500,000 for the advancement of racial equity was
approved in FY 2020 (CMR 11328). In light of the national and local racial
equity movement, this funding was set aside to help fund a resolution and
associated workplan to address system inequities. Since the workplan was
not completed in FY 2021, these funds are recommended to be
reappropriated to FY 2022 to support initiatives related to advancing racial
equity, as directed by the City Council.
$ - $ 500,000
General Fund Non-Departmental Rent Forgiveness Program This action reappropriates funding for the rent forgiveness program that
Council approved on June 7, 2021 (CMR 12234) to forgive three months of
rent for active non-profit tenants. As mentioned in CMR 12234, Staff was
not able to evaluate all applications from tenants to determine eligibility
before the end of FY 2021, so this funding is recommended to be
reappropriated to FY 2022 in order to complete the evaluation and
complete the program.
$ - $ 744,000
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FY 2021 TO FY 2022 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description Recommended
Revenue Appropriation
Recommended
Expense
Appropriation
General Fund Non-Departmental COVID-19 Recovery This action reappropriates $850,000 of COVID-19 Recovery Funds to
continue COVID-19 recovery related work in FY 2022. This total amount is
comprised of remaining funding set-aside for three separate activities:
$400,000 for Contact Tracing; $275,000 for Workplace Restoration; and
$175,000 for Business and Communications Support. The City remained in
reductive modes longer than originally anticipated and expenses for COVID-
19 Recovery activities were not fully spent in FY 2021. With the Governor's
June 15th reopening and the City's continued reactivation of the workplace,
these funds are anticipated to be needed in FY 2022 to support reopening
efforts and economic recovery through the continually evolving pandemic.
$ - $ 850,000
General Fund Non-Departmental Reserve: Transition Costs This action reappropriates $0.8 million to address one-time funding needs
for the transition and implementation of various service delivery changes
approved in both the FY 2021 and FY 2022 operating budgets. A number of
costs related to recruitment and changes in service delivery are likely to
incur one-time transition costs. These funds will assist in aiding these
transitions and could be allocated as part of the quarterly budget reviews in
FY 2022.
$ - $ 845,000
General Fund Non-Departmental Litigation Settlement (Staats Case)This action reappropriates $1.3 million for a litigation settlement related to
the Staats Case. This funding was set aside in FY 2021 as a litigation reserve
to proactively plan for a potential dispute resolution as the Staats case was
still under review. Now that the case has been settled, this funding is
recommended to be reappropriated to FY 2022 to fund various costs
related to the settlement.
$ - $ 1,250,000
General Fund Planning and Development
Services
Direct Cost Recovery Project: 3225
El Camino Real
This action reappropriates remaining revenue and expense related to the
deposit based cost recovery project at 3225 El Camino Real. This is a fully
cost recoverable project that is tracked separately using deposit accounts.
The funds do not comingle with other contract service budgets and funds
are only accessible for this purpose. This is a cost-neutral action for a
specific cost recovery project. All costs will be reimbursed by the applicant.
$ 76,800 $ 72,500
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FY 2021 TO FY 2022 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description Recommended
Revenue Appropriation
Recommended
Expense
Appropriation
General Fund Planning and Development
Services
Direct Cost Recovery Projects This action reappropriates remaining revenue and expense related to
various deposit-based direct cost recovery projects. These are fully cost
recoverable and are tracked separately using deposit accounts. The funds
do not comingle with other contract service budgets and funds are only
accessible for this purpose. This is a cost neutral action. On November 9,
2020 the City Council approved $500,000 in contract services funding to
support consultant services and a corresponding increase of $500,000 to
the revenue budget, resulting in a net zero impact to the General Fund.
These contracts are paid by deposit based fees and the applicant is invoiced
or refunded when the entire cost of the project is finalized. Annually the
City receives about fifty direct cost recovery projects per year. These
projects vary from single family dwellings, to mixed use projects, to new
hotels being developed in Palo Alto.
$ 370,300 $ 370,300
General Fund Planning and Development
Services
SB2 Grant This action reappropriates remaining reimbursable grant revenue and
expense funding from the California Department of Housing and
Community Development (HCD) to implement process improvements that
accelerate housing production and streamline affordable housing
approvals.
$ 310,000 $ 79,800
General Fund Public Works Urban Forest Master Plan (LiDAR)This action reappropriates $144,000 for project planning and
implementation in Tree Administration for data and analysis related to the
Urban Forest Master Plan (UFMP). The City is currently entering year 7 of
the 12-year implementation of the UFMP. Urban Forestry initially planned
to utilize the IT Department's ESRI vendor pool contract to create a Canopy
Cover Tool for the UFMP; however, due to procurement delays and COVID-
19 impacts, work on the tool did not begin until mid-FY 2021. This data and
analysis is essential to complete several components of the UFMP
including: risk analysis for electric lines; parking lot shade analysis; species
composition and other tree attributes on private property; and inventory
data migration into GIS.
$ - $ 144,000
840,900$ 5,527,400$ Total General Fund Reappropriation
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FY 2021 TO FY 2022 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description Recommended
Revenue Appropriation
Recommended
Expense
Appropriation
Housing In-Lieu Fund:
Commercial/
Residential Housing
Impact Fund
Planning and Development
Services
Alta Housing Affordable Housing
Loan Agreement: 3705 El Camino
Real (Wilton Court)
This action reappropriates funding for an agreement with Alta Housing
(formerly the Palo Alto Housing Corporation (PAHC)) to develop and
construct a 100 percent affordable housing project at 3705 El Camino Real
(Wilton Court). In total, $20.5 million in City contributions have been
appropriated for this project. The City Council approved the initial
contribution of $10.0 million at the June 3, 2019 meeting (CMR 10143); $1.0
million from the Residential Housing Fund, and $9.0 million from the
Commercial Housing Fund. The City Council approved an additional
contribution of $10.5 million at the January 13, 2020 meeting (CMR 10928);
$7.2 million from the Residential Housing Fund, $2.7 million from the
Commercial Housing Fund, and $0.6 million from the Residential Housing
Impact Fund. At the close of FY 2021, approximately $1.8 million of funding
remains ($1.2 million in the Commercial Housing fund and $0.6 million in
the Residential Housing Fund), which is recommended to be reappropriated
to continue the project in FY 2022.
$ - $ 1,767,000
-$ 1,767,000$ Total Special Revenue Fund Reappropriation
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FY 2021 TO FY 2022 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description Recommended
Revenue Appropriation
Recommended
Expense
Appropriation
Utilities Administration
Fund
Utilities Elwell Court Office Improvements This action reappropriates $70,000 to cover the renovation and associated
moving costs for the Elwell Court Office renovations. Funding for this
project was previously reappropriated into FY 2021; however, the project
was delayed due to the lease renewal process and COVID-19. The lease
agreement was approved by Council on June 21, 2021 (CMR 12247) and
renovations are scheduled to begin Fall 2021. As part of the terms of the
lease renewals, the landlord agreed to cover up to $250,000 in tenant
improvements, reducing the City's costs to $70,000.
$ - $ 70,000
Electric Fund/
Gas Fund/
Water Fund
Utilities S/CAP Utility Affordability Study
and Electrification Modeling
This action reappropriates $132,700 in the Electric ($53,500), Gas ($53,500),
and Water ($25,700) funds for two projects: 1) utility affordability study;
and 2) modeling related to electrification emissions reductions necessary as
part of the S/CAP analysis conducted June 2020 through February 2021. The
utility affordability study is a precursor to evaluating the impact of
electrification incentives and will also support other utility rate analysis.
The S/CAP electrification emissions models need to be configured to
support this study. Funding was designated in the FY 2021 utilities budget
to complete this project in the summer of 2021, but staff was unable to put
a contract in place before June 30. This action ensures sufficient funding to
award a contract in FY 2022. S/CAP is Council priority #4. (Climate Change –
Protection and Adaptation) and these projects are necessary to address the
April 19, 2021 Council direction on S/CAP, specifically B.ix. of the Council
motion for Item 7 of the April 19 agenda to, “Evaluate income qualified
incentives to support low‐income households.”
$ - $ 132,700
Electric Fund Utilities Low Carbon Fuel Standards (LCFS)
Program
This action reappropriates approximately $1.2M in the Low Carbon Fuel
Standards (LCFS) program. Funds in this program are restricted and can only
be used for specific carbon reduction efforts. In order to maintain planned
programs, funding will be reappropriated to cover California Electric Vehicle
Infrastructure Project (CALeVIP) invoices, reimbursements to City-owned EV
chargers and Compressed Natural Gas (CNG) dispensed, estimated costs for
transformer upgrades at 101 Alma and Bryant Street garages, and rebates
for projects anticipated in the upcoming year.
$ - $ 1,225,000
Electric Fund Utilities Gas Heat Pump Retrofit Pilot
Program
This action reappropriates $329,000 in expenses and $150,400 in revenues
to continue the Gas Furnace to Heat Pump Retrofit Pilot Program. This
program is partially funded by the Bay Area Air Quality Management
District’s 2018 Climate Protection Grant Program to encourage owners to
retrofit existing in-unit gas wall furnaces with cleaner electric alternatives.
The purpose of the pilot program is to gain experience and validate the
costs and benefits of retrofitting existing in-unit gas wall furnaces with
energy efficient and clean electric space heating alternatives for affordable
multifamily properties within Palo Alto.
$ 150,400 $ 329,000
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FY 2021 TO FY 2022 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description Recommended
Revenue Appropriation
Recommended
Expense
Appropriation
Fiber Fund Utilities Fiber Community Engagement This action reappropriates $200,000 as part of the Council's Community and
Economic Recovery work plan to prioritize and accelerate community
education and engagement regarding the Fiber to the Home (FTTH)
initiative approved by Council on March 22. The contract for a detailed
engineering design of the City's fiber backbone and FTTH distribution
network was approved by the Council on June 21.
$ - $ 200,000
Stormwater
Management Fund
Public Works Stormdrain Pump Rehabilitation This action reappropriates $77,000 for in-house repairs to cover the
removal, rehabilitation, and reinstallation of pump #3 at the Airport Pump
Station located at 1925 Embarcadero Way. Due to due to procurement
delays and COVID-19 impacts, the repairs could not be completed in FY
2021. This funding is allocated annually to cover a wide range of
operational maintenance and repairs that must be addressed as they come
up.
$ - $ 77,000
$ 150,400 $ 2,033,700
Technology Fund Information Technology Development Services Technology
Fee
This action reappropriates funding for various technology projects in the
Planning and Development Services Department. As part of the Adopted
Municipal Fee Schedule, a surcharge up to three percent is included in fees
to recover funding for technology projects. These projects include the
ongoing technical support of the City's Graphical Information System (GIS)
and the new ESRI platform, implementing an online permitting system
(reducing in-person transactions), expanding Accela capabilities, and
digitizing and storing plans and records. At the close of FY 2021, $158,900 of
the approximate $325,000 collected remains unspent and will be used for
planned projects in FY 2022.
$ - $ 158,900
Retiree Healthcare Fund Human Resources Retirement Trust Fund Payment This action reappropriates funding that was intended as an additional
contribution to the Retired Employee Trust Fund (Section 115 trust fund). In
developing the FY 2021 Budget, the City assumed a more conservative rate
of return in the trust fund account in order to increase the contribution
while keeping the same investment strategy. Although the approximate
$1.4 million in funding was built into the budget, the additional
contribution was not paid to the 115 trust fund in FY 2021. This action will
move the funding to FY 2022 in order to make the intended payment to the
trust fund along with the FY 2022 amount of approximately $2.2 million.
$ - $ 1,358,000
-$ 1,516,900$
Total All Funds 991,300$ 10,845,000$
Total Enterprise Fund Reappropriation
Total Internal Service Fund Reappropriation
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Attachment B: Capital Improvement Plan FY 2021 Reappropriations to FY 2022 (Final)
Fund Name Project Title Proj. No. Adopted Final Reapp Adopted Final Reapp
Capital Improvement Fund Americans With Disabilities Act Compliance PF‐93009 ‐‐‐372,076 (22,045) 350,031
Animal Shelter Renovation PE‐19002 ‐‐‐1,196,195 (162,602) 1,033,593
Art In Public Spaces AC‐86017 ‐‐‐1,287,607 195,910 1,483,517
Athletic Courts Resurfacing PG‐06001 ‐‐‐‐185,000 185,000
Automated External Defibrillator Replacement FD‐21000 ‐38,000 38,000 200,000 ‐200,000
Baylands Boardwalk Improvements PE‐14018 ‐‐‐8,630 ‐8,630
Baylands Comprehensive Conservation Plan PG‐17000 ‐‐‐‐7,100 7,100
Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities PG‐06003 ‐‐‐‐‐‐
Bicycle and Pedestrian Transportation Plan Implementation PL‐04010 ‐‐‐1,030,642 204,228 1,234,870
Boulware Park Improvements (merged with Birch Street Project PE‐19003)PE‐17005 ‐‐‐308,843 (79,810) 229,033
Building Systems Improvements PF‐01003 ‐‐‐558,037 ‐558,037
Byxbee Park Completion PE‐18006 2,400,000 ‐2,400,000 2,381,146 500,000 2,881,146
California Avenue District Gateway Signs PE‐17004 ‐‐‐141,238 (10,910) 130,328
CalTrain Corridor Video Management System Installation PE‐18001 ‐‐‐‐‐‐
Cameron Park Improvements PG‐14002 ‐‐‐160,000 (51,248) 108,752
Capital Improvement Fund Administration AS‐10000 ‐‐‐‐‐‐
Charleston/Arastradero Corridor Project PE‐13011 ‐‐‐4,600,000 (4,600,000) ‐
Churchill Avenue Enhanced Bikeway PL‐14000 ‐‐‐2,826,104 ‐2,826,104
Churchill Avenue/Alma Street Railroad Crossing Safety Improvements PL‐20000 3,996,000 ‐3,996,000 3,996,000 ‐3,996,000
City Bridge Improvements PE‐20001 ‐‐‐5,630 74,370 80,000
City Facilities Assessment and Record Plan Management System PE‐20002 ‐‐‐‐300,000 300,000
City Facility Parking Lot Maintenance PE‐09003 ‐‐‐‐73,920 73,920
City Hall First Floor Renovations PE‐12017 ‐‐‐‐‐‐
City Hall Space Planning PE‐19000 ‐‐‐575,000 ‐575,000
Civic Center Electrical Upgrade & EV Charger Installation PE‐17010 114,000 126,000 240,000 479,311 6,064 485,375
Civic Center Fire Life Safety Upgrades PE‐18016 ‐‐‐‐219,536 219,536
Civic Center Waterproofing Study and Repairs PE‐15020 ‐‐‐561,856 49,800 611,656
Curb and Gutter Repairs PO‐12001 ‐‐‐‐11,585 11,585
Dog Park Installation and Renovation PG‐18001 150,000 ‐150,000 150,000 ‐150,000
Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equip. PL‐15002 ‐‐‐‐2,517,119 2,517,119
Emergency Vehicle Traffic Signal Preemption System Pilot PL‐19000 ‐‐‐26,400 ‐26,400
Facility Interior Finishes Replacement PF‐02022 169,000 ‐169,000 590,000 8,000 598,000
Fire Station 3 Replacement PE‐15003 ‐‐‐‐7,993 7,993
Fire Station 4 Replacement PE‐18004 750,000 ‐750,000 849,999 (175,412) 674,587
Foothills Park Boronda Lake Dock Replacement OS‐18000 ‐‐‐210,000 ‐210,000
Foothills Park Dam Seepage Investigation and Repairs PE‐20000 ‐‐‐‐‐‐
Golf Reconfiguration & Baylands Athletic Center Improvements PG‐13003 ‐‐‐‐199,998 199,998
High and Bryant Street Garages Waterproofing and Repairs PE‐18002 ‐‐‐‐‐‐
Highway 101 Pedestrian/Bicycle Overpass Project PE‐11011 1,958,023 449,625 2,407,648 97,556 (97,556) ‐
JMZ Renovation AC‐18001 ‐332,100 332,100 ‐1,650,583 1,650,583
Library Automated Material Handling LB‐21000 170,000 ‐170,000 170,000 310,000 480,000
Magical Bridge Playground Rubber and Synthetic Turf Resurfacing PE‐21003 ‐‐‐367,750 ‐367,750
Municipal Service Center A, B, & C Roof Replacement PF‐17000 ‐‐‐168,533 ‐168,533
Municipal Service Center Lighting, Mechanical, and Electrical Improvements PF‐16006 1,539,000 ‐1,539,000 5,976,326 ‐5,976,326
New California Avenue Area Parking Garage PE‐18000 ‐‐‐1,010,336 (123,278) 887,058
New Downtown Parking Garage PE‐15007 ‐‐‐10,600 ‐10,600
Revenues Expenses
Total Total
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Attachment B: Capital Improvement Plan FY 2021 Reappropriations to FY 2022 (Final)
Fund Name Project Title Proj. No. Adopted Final Reapp Adopted Final Reapp
Revenues Expenses
Total Total
Capital Improvement Fund New Public Safety Building PE‐15001 ‐‐‐5,636,041 804,697 6,440,738
Newell Road/San Francisquito Creek Bridge Replacement PE‐12011 ‐‐‐320,088 1,629,807 1,949,895
Off‐Road Pathway Resurfacing And Repair OS‐09001 ‐‐‐‐13,157 13,157
Park and Open Space Emergency Repairs PG‐09002 ‐‐‐‐‐‐
Park Restroom Installation PG‐19000 350,000 ‐350,000 343,439 (10,401) 333,038
Parking Management and System Implementation PL‐16002 ‐‐‐‐‐‐
Pearson Arastradero Preserve Parking Lot Improvement OS‐18001 ‐‐‐‐‐‐
Performing Arts Venues Seat Replacement AC‐18000 ‐‐‐340,000 7,030 347,030
Quarry Road Improvements and Transit Center Access PL‐16000 ‐‐‐‐‐‐
Railroad Grade Separation and Safety Improvements PL‐17001 ‐‐‐3,942,133 ‐3,942,133
Ramos Park Improvements PG‐14000 ‐‐‐137,000 (119,649) 17,351
Rinconada Park Improvements PE‐08001 ‐‐‐‐159,379 159,379
Roofing Replacement PF‐00006 ‐‐‐140,494 ‐140,494
Roth Building Maintenance PF‐07011 ‐‐‐‐‐‐
Safe Routes To School PL‐00026 459,677 ‐459,677 860,728 ‐860,728
Sidewalk Repairs PO‐89003 ‐‐‐‐‐‐
Sign Reflectivity Upgrade PO‐11000 ‐‐‐‐‐‐
Street Maintenance PE‐86070 ‐‐‐‐‐‐
Thermoplastic Lane Marking and Striping PO‐11001 ‐‐‐‐‐‐
Traffic Signal and Intelligent Transportation Systems PL‐05030 ‐700,000 700,000 ‐‐‐
Transportation and Parking Improvements PL‐12000 ‐‐‐75,000 50,000 125,000
University Avenue Parking Improvements PF‐14003 72,400 ‐72,400 72,400 ‐72,400
University Avenue Streetscape Update PE‐21004 ‐‐‐‐51,000 51,000
Water, Gas, Wastewater Office Remodel PE‐19001 654,000 ‐654,000 614,423 (24,458) 589,965
Capital Improvement Fund Total 12,782,100 1,645,725 14,427,825 42,797,561 3,758,907 46,556,468
Cubberley Property Infrastructure Fund Cubberley Field Restroom CB‐17002 ‐‐‐318,724 (16,183) 302,541
Cubberley Repairs CB‐17001 ‐‐‐236,747 50,000 286,747
Cubberley Roof Replacements CB‐16002 ‐‐‐436,520 ‐436,520
Cubberley Track and Field Replacement CB‐19000 ‐‐‐‐‐‐
Cubberley Property Infrastructure Fund Total ‐‐‐991,991 33,817 1,025,808
Airport Enterprise Fund Airport Apron Reconstruction AP‐16000 ‐11,430,390 11,430,390 441,940 ‐441,940
Airport Facilities Electrical Improvements AP‐20000 ‐‐‐75,795 ‐75,795
Airport Enterprise Fund Total ‐11,430,390 11,430,390 517,735 ‐517,735
Electric Fund 115 kV Electric Intertie EL‐06001 ‐‐‐128,481 ‐128,481
Capacitor Bank Installation EL‐16002 ‐‐‐345,616 (38,153) 307,463
Colorado Power Station Equipment Upgrades EL‐19001 ‐‐‐640,003 (7,531) 632,472
Colorado Substation Site Improvements EL‐19002 ‐‐‐588,570 ‐588,570
East Meadow Circles 4/12kV Conversion EL‐17001 ‐‐‐‐85,633 85,633
Electric Utility Geographic Information System EL‐02011 ‐‐‐222,100 (239) 221,861
Facility Relocation for Caltrain Modernization Project EL‐17007 ‐‐‐556,286 (18,660) 537,626
Foothills Rebuild (Fire Mitigation)EL‐21001 ‐‐‐1,878,351 (87,676) 1,790,675
Inter‐substation Line Protection Relay EL‐17005 ‐‐‐281,483 ‐281,483
Rebuild Underground District 15 EL‐11003 ‐‐‐50,000 ‐50,000
Rebuild Underground District 16 EL‐13003 ‐‐‐357,995 (111) 357,884
Rebuild Underground District 24 EL‐10006 ‐‐‐526,294 ‐526,294
Rebuild Underground District 26 EL‐16000 ‐‐‐281,890 (246) 281,644
Reconfigure Quarry Feeders EL‐14005 ‐‐‐10,306 (955) 9,351
SCADA System Upgrades EL‐02010 ‐‐‐5,675 (5,675) ‐
Smart Grid Technology Installation EL‐11014 ‐‐‐‐‐‐
Substation 60kV Breaker Replacement EL‐17002 ‐‐‐608,066 (467,822) 140,244
Substation Physical Security EL‐16003 ‐‐‐1,153,447 (112,866) 1,040,581
Underground District 46 ‐ Charleston/El Camino Real EL‐12001 ‐‐‐235,000 (145,231) 89,769
Wood Pole Replacement EL‐19004 ‐‐‐1,489,927 ‐1,489,927
Electric Fund Total ‐‐‐9,359,490 (799,532) 8,559,958
Gas Fund Gas Main Replacement ‐ Project 23 GS‐13001 ‐‐‐460,996 (84,077) 376,919
Gas Fund Total ‐‐‐460,996 (84,077) 376,919
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Attachment B: Capital Improvement Plan FY 2021 Reappropriations to FY 2022 (Final)
Fund Name Project Title Proj. No. Adopted Final Reapp Adopted Final Reapp
Revenues Expenses
Total Total
Stormwater Management Fund Corporation Way System Upgrades and Pump Station SD‐21000 ‐‐‐1,476,012 ‐1,476,012
Storm Drainage System Replacement And Rehabilitation SD‐06101 ‐‐‐728,163 1,266,348 1,994,511
West Bayshore Road Trunk Line Improvements SD‐23000 ‐‐‐5,796 ‐5,796
Stormwater Management Fund Total ‐‐‐2,209,971 1,266,348 3,476,319
Technology Fund Development Center Blueprint Technology Enhancements TE‐12001 ‐‐‐292,228 ‐292,228
Infrastructure Management System TE‐13004 ‐‐‐29,960 ‐29,960
Public Safety Records Management System (RMS) Replacement TE‐21000 ‐‐‐339,400 153,382 492,782
Radio Infrastructure Replacement TE‐05000 ‐‐‐259,924 ‐259,924
Utilities Customer Bill System Improvements TE‐10001 ‐‐‐‐‐‐
Technology Fund Total ‐‐‐921,512 153,382 1,074,894
Vehicle Replacement & Maintenance Fund Emergency Repair and Replacement VR‐15001 ‐‐‐‐‐‐
Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2018 VR‐18000 ‐‐‐‐‐‐
Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2019 VR‐19000 ‐‐‐691,294 (26,779) 664,515
Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2020 VR‐20000 ‐‐‐1,513,636 (693,347) 820,289
Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2021 VR‐21000 ‐‐‐693,202 (351,642) 341,560
Vehicle Replacement & Maintenance Fund Total ‐‐‐2,898,132 (1,071,768) 1,826,364
Wastewater Collection Fund Wastewater Collection System Rehabilitation/Augmentation Project 29 WC‐16001 ‐‐‐350,000 ‐350,000
Wastewater Collection System Rehabilitation/Augmentation Project 30 WC‐17001 ‐‐‐130,000 158,945 288,945
Wastewater General Equipment and Tools WC‐13002 ‐‐‐70,000 ‐70,000
Wastewater Collection Fund Total ‐‐‐550,000 158,945 708,945
Wastewater Treatment Fund Advanced Water Purification Facility WQ‐19003 ‐2,776,308 2,776,308 ‐‐‐
New Laboratory And Environmental Services Building WQ‐14002 2,060,000 ‐2,060,000 2,119,872 2,692 2,122,564
Outfall Line Construction WQ‐19000 7,700,000 ‐7,700,000 7,700,000 ‐7,700,000
Plant Repair, Retrofit, and Equipment Replacement WQ‐19002 ‐‐‐5,412,411 ‐5,412,411
Primary Sedimentation Tank Rehabilitation WQ‐14003 13,102,000 ‐13,102,000 600,000 1,700,000 2,300,000
Secondary Treatment Upgrades WQ‐19001 37,555 2,962,445 3,000,000 37,555 (50)37,505
Wastewater Treatment Fund Total 22,899,555 5,738,753 28,638,308 15,869,838 1,702,642 17,572,480
Water Fund Water Main Replacement ‐ Project 27 WS‐13001 ‐‐‐‐2,769,379 2,769,379
Water Main Replacement ‐ Project 28 WS‐14001 ‐‐‐ 388,485 (70,504) 317,981
Water Regulation Station Improvements WS‐07000 ‐‐‐645,830 (18,220) 627,610
Water Tank Seismic Upgrade and Rehabilitation WS‐09000 ‐‐‐‐695,314 695,314
Water Fund Total ‐‐‐1,034,315 3,375,969 4,410,284
Grand Total 35,681,655 18,814,868 54,496,523 77,611,541 8,494,633 86,106,174
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Attachment C: Capital Improvement Plan FY 2022 Technical Clean‐up Actions
Fund Name Department Proj. No. Title Description Expense
Capital Improvement Fund Public Works PE‐13011 Charleston/Arastradero
Corridor Project
This 2014 Infrastructure Plan (IP) project was over expended in
FY 2021 and the budget increased by $3,171,040 as part of the
FY 2021 Year‐End process. A corresponding decrease is
recommended in FY 2022 in order to maintain the total project
budget of $20.8 million over the life of the project.
(3,171,040)
Capital Improvement Fund Public Works PE‐86070 Street Maintenance This recurring maintenance project was over expended in FY
2021 and the budget increased by $1,229,744 as part of the FY
2021 Year‐End process. Since expenses which were originally
anticipated to occur in FY 2022 were instead realized in FY
2021, a corresponding decrease is recommended in FY 2022 in
order to align with current funding needs.
(1,229,774)
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