HomeMy WebLinkAboutStaff Report 14728
City of Palo Alto (ID # 14728)
City Council Staff Report
Meeting Date: 10/24/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of Fiscal Year 2022 Reappropriation Requests to be Carried
Forward Into Fiscal Year 2023 and Budget Amendments in Various Funds
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that the City Council amend the Fiscal Year 2023 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).
Executive Summary
This report and the appropriation adjustments recommended within reflect a part of the annual
fiscal year-end process. Annually, when the City transitions between fiscal years on June 30
and begins a new fiscal year on July 1, staff reviews the City’s unencumbered and unspent
appropriations of the fiscal year just ended with the City’s spending plans. This report reflects
the true-up of active projects, both operating and capital, reconciling what was estimated to
occur in FY 2022 when developing the FY 2023 Adopted Budget and what actually did occur. All
projects, programs, and corresponding funding contained within this report were previously
approved by the City Council for FY 2022. If approved, this report simply realigns funding
between fiscal years to align with the status of projects and programs.
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 the City Council to continue these projects into the next
fiscal year. In a couple of instances, there was not enough funding remaining in the prior year to
reappropriate to the current year; however, the projects that were not completed are still
needed so staff is recommending appropriating funding in the current year.
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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. There remains a need to
reappropriate funds for capital projects in some instances, capital projects may still be delayed
or deferred for various reasons. This reappropriation is completed through a review of the
status of projects as part of the annual budget process and is built into the annual adopted
budget. As staff work to close Fiscal Year 2022 staff process necessary accounting transactions,
expended and encumbered funds for each capital project have been reviewed a final time.
Based on that review, staff recommends capital dollars remaining for some projects in various
funds through Fiscal Year 2022 be reappropriated to Fiscal Year 2023. For some projects too
much funding was recommended for reappropriation as additional expenditures occurred in
Fiscal Year 2022. Therefore, this staff report recommends reversing a portion of previously
authorized reappropriations. In a few capital projects, the expenditure in FY 2022 was greater
than the total amount recommended for reappropriation to FY 2023. In these projects, staff
recommends reversing the full reappropriation, as well as a technical clean-up action to reduce
funds appropriated in FY 2023. This will keep the total project budget the same over the life of
the project and allow for an adjustment to the project budget in FY 2022 as part of the FY 2022
Year-End clean-up process, currently scheduled for review by the Finance Committee in
November 2022.
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 2022 to be reappropriated to Fiscal Year
2023. This staff report is being brought forward prior to the FY 2022 Annual Comprehensive
Financial Report (ACFR), scheduled to be considered by the Finance Committee in November, in
order to support the continuity of business for these ongoing projects and initiatives.
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 2022 and funding is recommended to be reappropriated to FY 2023 to
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complete the work. Examples of projects in this category include: Utility Litigation Reserve
($12.4 million), Rent Forgiveness Program ($0.7 million), Advancing Racial Equity ($0.5
million), COVID-19 Recovery ($0.5 million), Transition Reserve ($0.2 million), Administrative
Support Reserve ($0.2 million), and Homeless Outreach Case Manager ($0.1 million). A
number of these initiatives were delayed due to the continued effects of the pandemic
beyond initial estimated timeframes, including staffing and recruiting issues across the City.
• 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: Information Technology Risk Framework Management ($0.2 million), Urban Forest
Master Plan (Tree Inventory) data and analysis ($0.1 million), Aerial Truck Rental Buyout
($0.1 million), and Enterprise Software Maintenance – GIS ($0.1 million).
• 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 Loan for Affordable Workforce
Housing at 231 Grant Avenue ($3.0 million), Alta Housing Loan for Affordable Housing at
Wilton Court ($1.8 million), Direct Cost Recovery Projects in the Planning and Development
Services Department ($0.3 million), and Information Technology On-Call Professional
Services Contracts ($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 2022, so the remaining balance
of $40,000 is recommended to be reappropriated to FY 2023.
• 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 75 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 2023 to ensure sufficient resources are available
to continue providing quality teen services to the community and develop a long‐term
approach to maintain delivery of these services.
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• 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 2023 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 and security. The City is working on partnering with local resources such as
Stanford University to engage in training to support the development of key skills for
employees.
New Operating Budget Appropriation Recommendations for Continuing Projects
Sufficient savings was unavailable in FY 2022 to support reappropriation of funds to FY 2023
due to overall Salary and Benefit expenses exceeding non-salary savings in the department.
However, since these projects are related to Council priorities and are still necessary to be
completed, staff is recommending appropriation of funds for these projects to be continued in
FY 2023.
• FireMed Marketing: This action appropriates $50,000 in the Fire Department for
marketing related to the City’s ambulance subscription program (FireMed). During FY 2022,
the Fire Department began coordination with the Utilities Department to establish a
workflow for the program’s online billing. Additional work with the City’s communications
team on website design, frequently asked questions, program logo, and a mailer were
completed. Staff also began educating fire fighters on the specifics of the program to be
able to respond to community questions while in the field. This funding will continue the full
implementation of the program and its marketing component during FY 2023.
• Equity Hiring Initiative: This action appropriates $50,000 in the Fire Department for
work related to equity hiring initiatives. Due to the logistical requirements of the SAFER
grant and lower Fire management staffing, the Department was unable to focus on this
work in FY 2022. The Deputy Chief position restored in FY 2023 will be responsible for
departmental recruitment, hiring and retention, and managing the equity hiring initiative
work with the support of this funding.
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 2023 Adopted
Budget included $83.6 million in reappropriated expenditure funds, partially offset by $41.9
million in reappropriated revenue, across all City funds based on estimates of anticipated
spending and revenue collections in FY 2022. Since the adoption of the capital budget, some
adjustments and refinements to project reappropriations are required since FY 2022 year-end
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project revenues and costs have been updated to reflect actual experience. These primarily
reflect either increases or decreases to assumed reappropriations in the FY 2023 Adopted
Budget:
• Additional reappropriations are recommended when project expenditures originally
anticipated to occur before the end of FY 2022 will now instead occur in FY 2023. Similarly,
revenue anticipated to be collected in FY 2022 will be reappropriated to FY 2023 to align
with actual collections.
• Downward adjustments to reappropriations are recommended when expenses are no
longer anticipated to occur in FY 2023 and funding was previously reappropriated in the
budget document to FY 2023. If expenses were realized in FY 2022, an adjustment to reduce
the project budget is needed as the activity no longer needs funding in FY 2023. The
downward adjustment of estimated revenue is treated similarly; an adjustment to reduce
the estimated 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 2022 adjustment amounts represent the final step in the City Council-approved
change to the reappropriation process. There are sufficient expenditure savings in Fiscal Year
2022 to support all recommended adjustments.
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 all unspent capital funding at the end of a fiscal year, and better reflects the
needs of the various capital projects and the overall capital programs.
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 62 ($1,355,000) $11,536,000
Cubberley Infrastructure Fund 3 - ($64,000)
Airport Fund 4 $2,829,000 $693,000
Electric Fund 14 - $2,364,000
Fiber Fund 2 - $179,000
Gas Fund 3 - ($119,000)
Stormwater Management Fund 6 - $250,000
Wastewater Collection Fund 3 - ($355,000)
Wastewater Treatment Fund 7 $5,040,000 $846,000
Water Fund 6 - ($39,000)
Technology Fund 5 - $159,000
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Vehicle Replacement and
Maintenance Fund 4 - ($1,345,000)
Total All Funds 119 $6,514,000 $14,105,000
Technical Clean-up Actions
As detailed in Attachment C, the Rinconada Park Improvements (PE-08011) project was
overspent in the Capital Improvement Fund in FY 2022 by a total of $109,000. In order to fund
the overage for this project in FY 2022 and keep the overall project budget at $10.7 million, a
technical clean-up action is recommended to reduce the funds appropriated in FY 2023 to shift
the funding back into FY 2022. A corresponding adjustment will be done in FY 2022 as part of
the FY 2022 Year-End clean-up process, currently scheduled for review by the Finance
Committee in November 2022. These actions will align the project budget by year with the
actual expenses by year.
For the Electric System Improvements (EL-98003) project, Council approved a three-year
contract on March 21, 2022 (CMR 13953) to support undergrounding work in multiple projects:
Foothills Rebuild (EL-21001); Electric Customer Connections (EL-89028); Fiber Optic Customer
Connections (FO-10000); and Fiber Optic System Improvement (FO-10001). However, the total
contract amount for all the projects in all three years was entirely encumbered in EL-98003 in
FY 2022 and carried into FY 2023. This action will align funding in FY 2023 with planned work in
this project by reducing the budget from $9.5 million to $4.1 million for the anticipated first
year amount of the contract needed for this project.
Resource Impact
All projects, programs, and corresponding funding contained within this report were previously
approved by the City Council for FY 2022. 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 2022 Operating Budget adjustments
(Attachment A), and Capital Budget adjustments (Attachment B and Attachment C). For
Operating reappropriations, staff recommends expense reappropriations of $15.6 million,
partially offset by $0.3 million in revenue in the General Fund; $4.8 million in Special Revenue
Funds; $0.1 million in Enterprise Funds; and $0.7 million in Internal Service Funds.
Additionally, staff recommends appropriating $0.1 million in the Fire Department in the General
Fund for programs that need to continue in FY 2023 but did not have savings in FY 2022 to
allow for reappropriations. This funding will be appropriated from the Budget Stabilization
Reserve.
For capital projects, in addition to the amounts reappropriated as part of the FY 2023 Adopted
Capital Budget, staff recommends $11.5 million in expenses be reappropriated to FY 2023 in the
Capital Improvement Funds, in addition to a reduction of $1.4 million in revenue
reappropriations. Also recommended is $2.0 million in additional expenses reappropriated in
various Enterprise Funds, and a reduction of $1.2 million in expenditures in the Internal Service
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Funds. The cumulative reappropriation, including amounts approved in the FY 2023 Adopted
Capital Budget, will be $45.5 million in expenses, partially offset by $7.7 million in revenue in
the Capital Improvement Fund projects; $46.5 million in expenses, partially offset by $40.7
million in revenue in the Enterprise Fund projects; and $5.7 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:
• Attachment A - FY22 to FY23 Reappropriation Requests_Operating
• Attachment B - FY 2022 Reappropriations (Adopted & Final YE) to FY 2023
• Attachment C - FY23 Technical Clean-up Actions
FY 2022 TO FY 2023 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
General Fund Community Services Bryant St. Revenue ‐ 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 75 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 $216,000, 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.
$‐ $ 216,000
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) including kilns, wheels, and several other large
pieces of equipment. At the close of FY 2022, the unspent balance is
projected to be $30,000 and recommended to be reappropriated to FY
2023.
$‐ $30,000
General Fund Community Services Foothills Nature Preserve Fee
Collection Services
This action reappropriates $20,000 for the purchase and installation of an
automated ticket sales machine at Foothills Nature Preserve, including
software services, training, technical support, and on‐site machine
servicing. This funding was appropriated in the FY 2021 Midyear Budget
Review (CMR 11872) with the opening of Foothills Park to the general
public and the creation of a ticketed entry fee.
$‐ $20,000
General Fund Community Services Child Care Trust Funds for Palo Alto
Advisory Commission on Early Care
and Education (PAACECE) Work
Plan
This action reappropriates $17,000 of the $30,000 that was transferred
from the Child Care Trust Fund for a pilot Child Care Mini Grant Program to
fund educational and professional services costs of child care providers. As
a pilot program, the development of the policies and procedures took
longer than anticipated, with the first grants being awarded in the latter
half of FY 2022. Initial results have been promising, and Staff would like
the remainder of FY 2023 to complete the pilot program and expend the
remainder of the funding, as well as evaluate its impact on the community.
$‐ $17,000
Page 1 of 7
FY 2022 TO FY 2023 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
General Fund Community Services Homeless Outreach Case Manager This action reappropriates $115,000 that was allocated for the homeless
outreach case manager. Delays related to the request for proposals were
experienced as the proposal received in June 2022 did not meet
departmental requirements. Staff is planning on re‐bidding this project in
FY 2023 and will potentially supplement this funding with grant funding
and changes in scope in order to encourage more adequate responses.
$‐ $ 115,000
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 systematic inequities. Since the workplan
was not completed in FY 2022, these funds are recommended to be
reappropriated to FY 2023 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 to FY 2023 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. Staff needs additional
time to evaluate the information collected from tenants and amend
agreements in order to complete the program.
$‐ $ 744,000
General Fund Non‐Departmental COVID‐19 Funding This action reappropriates $500,000 of COVID‐19 Recovery Funds to
continue COVID‐19 recovery related work in FY 2023. This total amount is
comprised of remaining funding set‐aside for three separate activities:
$100,000 for Contact Tracing; $200,000 for Workplace Restoration; and
$200,000 for Business and Communication Support. The City remained in
reductive modes longer than originally anticipated and expenses for
COVID‐19 Recovery activities were not fully spent in FY 2022. These funds
are anticipated to be needed in FY 2023 to support economic recovery
through a continually evolving endemic state.
$‐ $ 500,000
General Fund Non‐Departmental Administrative Support Reserve This action reappropriates $175,000 to provide funding for unforeseen
resource needs in FY 2023. Funding was appropriated in this reserve as
part of the FY 2022 Adopted Budget to be used for administrative support
costs that were anticipated to materialize in various departments across
the City as a result of service restoration and the City continuing to recover
from effects of the COVID‐19 pandemic. Funds are anticipated to be
needed in FY 2023 to continue to support these efforts.
$‐ $ 175,000
Page 2 of 7
FY 2022 TO FY 2023 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 2023 for
future HSRAP use.
$40,000
General Fund Non‐Departmental Transition Costs Reserve This action reappropriates $210,000 to address one‐time funding needs for
the transition and implementation of various service delivery changes
approved in the FY 2022 operating budget. A number of costs related to
recruitment and changes in service delivery are likely to incur one‐time
transition costs. These funds will continue to assist in aiding these
transitions in FY 2023.
$‐ $ 210,000
General Fund Non‐Departmental Utility Transfer Litigation Reserve This action reappropriates $12.4 million to plan for the potential financial
impacts of an ongoing lawsuit, Green v. City of Palo Alto (Santa Clara
Superior Court, Case No. 1‐16‐CV‐300760). This case is a class action
lawsuit filed on October 6, 2016, which claimed that the City’s gas and
electric rates are taxes that exceed the cost of providing service, absent
voter approval, because the rates fund annual transfers from the utilities
to the City’s general fund. The lawsuit sought a refund of three years of
alleged overpayments by gas and electric ratepayers and an injunction
prohibiting further overpayments. This action will bring the reserve to
$17.5 million in FY 2023 for potential prior year overpayments.
$‐ $ 12,400,000
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 and compensation plans with the Management and
Professional group and the Palo Alto Police Management Association. For
retention strategies and workforce development, this action is
recommended for training opportunities that may include the following
program topics: ethics, civics and citizen engagement, leadership and
management, budget, finance, procurement, interpersonal
communication, presentation skills, business writing, time management,
project management, change management, and safety and security.
$‐ $ 287,000
General Fund Planning and Development
Services
Direct Cost Recovery Project
Budget, 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.
$70,000 $70,000
Page 3 of 7
FY 2022 TO FY 2023 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 Project
Budget
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.
$ 225,000 $ 225,000
General Fund Public Works Urban Forest Master Plan (Tree
Inventory)
This action reappropriates $97,000 for the tree inventory update related
to the Urban Forest Master Plan (UFMP). The City is currently entering
year 8 of the 12‐year implementation of the UFMP, and a tree inventory
update and tree benefits and inventory analysis was called for in year 8
(5.A.ii, FY23). The City maintains more than 38,000 public trees along City
streets, in City parks, and around City‐owned buildings. The last street tree
inventory update was completed in 2010 and over time the inventory data
can become out of alignment with the actual tree field conditions. As trees
are a living green asset that changes over time, periodic updates are part
of industry best practices for tree inventories.
$ ‐ $ 97,000
295,000$ 15,646,000$ Total General Fund Reappropriation
Page 4 of 7
FY 2022 TO FY 2023 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
Housing In‐Lieu Fund:
Residential
Planning and Development
Services
231 Grant Avenue Affordable
Housing Project
This action reappropriates $3 million for a loan to Santa Clara County for
the development of an affordable workforce housing project located at
231 Grant Avenue. This development will be primarily for teachers and
other school district employees from participating school districts in Santa
Clara and San Mateo Counties. This loan from the Residential Housing In‐
Lieu Fund was initially approved by the City Council at the February 7, 2022
meeting (CMR 13741). At the close of FY 2022 this funding remains
unspent and is recommended to be reappropriated to FY 2023.
$‐ $ 3,000,000
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 $1.8 million for an agreement with Alta Housing
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 2022, 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 2023.
$‐ $ 1,767,000
‐$ 4,767,000$
Electric Fund Utilities Aerial Truck Rental Buyout This action reappropriates $120,000 in the Electric Fund to purchase a
rented aerial bucket truck. Consistent with recommendations Council
approved in 2016 (CMR 6736), inventory for these aerial trucks are
provided through a lease‐to‐purchase model. Buying the rented truck will
enable staff to sell the vehicle to help offset the cost to enter into a new
lease‐to‐purchase agreement. Funds for this purchase were set aside in FY
2022 but delays caused for the purchase to roll into FY 2023.
$‐ $ 120,000
$‐ $ 120,000
Total Special Revenue Fund Reappropriation
Total Enterprise Fund Reappropriation
Page 5 of 7
FY 2022 TO FY 2023 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
Technology Fund Information Technology On‐Call Professional Services
Contracts
This action reappropriates $100,000 to assist with on‐call professional
services contracts in the Information Technology Department that were
not completed in FY 2022. These projects consists of RFP/vendor
selection/implementation of large applications throughout the City,
spanning multiple departments as well as desktop replacements and
mobile device management projects. Current IT Project Managers are
working on several other projects, and these funds will help to assign
some of the pending projects to on‐call staff (project managers) to help
fulfill the projects requested.
$‐ $ 100,000
Technology Fund Information Technology Enterprise Software Maintenance ‐
GIS
This action reappropriates $125,000 for enterprise software maintenance
in the Information Technology Department. With recent reinvestments
related to geographic information system (GIS) staffing and infrastructure,
staff plan to complete GIS projects in progress that were not able to be
finished in FY 2022 in order to begin new enterprise GIS enhancements
slated for FY 2023. Below are some of the projects that this funding will
help with completing: continue work on SQL server, map styling and
symbology, AMI‐related GIS interface requirements (with SAP, WOMs,
MDMS, and RNI), SAP‐ and GIS‐related integration tasks, and OMS and GIS
integration tasks.
$‐ $ 125,000
Technology Fund Information Technology Risk Framework Management
Request For Proposals
This action reappropriates $200,000 for the risk framework management
requests for proposals (RFP) in the Information Technology Department. In
March 2020, Baker Tilly indicated in their audit that the City does not
currently have formal IT risk management practices. In general, day‐to‐day
operational controls are in place to mitigate IT risks, but gaps may still
exist for unidentified IT risks. An RFP was issued to address this in FY 2022,
but a vendor was not chosen so the funds could not be encumbered. This
action will allow the Department to complete the RFP and begin work on
developing, implementing, and operationalizing the City’s new IT Risk
Management Process.
$‐ $ 200,000
Technology Fund Information Technology Planning and Development
Services Technology Fee
This action reappropriates $321,000 for various technology projects in the
Planning and Development Services (PDS) Department. As part of the
Adopted Municipal Fee Schedule, a surcharge up to three percent is
included in some of the PDS fees to recover funding for technology
projects. These projects include ongoing technical support of the City's
Geographic Information System (GIS) and the new ESRI platform,
implementing an online permitting system, expanding Accela capabilities,
and digitizing and storing plans and records. At the close of FY 2022,
$321,000 of the approximate $330,000 collected remains unspent and will
be used for planned projects in FY 2023.
$‐ $ 321,000
‐$ 746,000$
Total All Funds Reappropriation 295,000$ 21,279,000$
Total Internal Service Fund Reappropriation
Page 6 of 7
FY 2022 TO FY 2023 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Fund Name Department Title Description
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
FY 2023 New Funding Appropriation for Continuing Projects
General Fund Fire FireMed Marketing This action appropriates $50,000 for marketing related to the City's
ambulance subscription program, known as the FireMed Program. The
Program was approved in October 2021 (CMR 13618) and launched in April
2022. During FY 2022, the Fire Department began coordination with the
Utilities Department to establish a workflow for the Program’s online
billing. Additional work with the City’s Communications Team on website
design, frequently asked questions, program logo, and mailer were
completed. Staff also began educating sworn fire personnel on the
specifics of the program to be able to respond to community questions
while in the field. This funding will continue to support the full
implementation of the Program, including the marketing component
during FY 2023.
$‐ $50,000
General Fund Fire Equity Hiring Initiative This action appropriates $50,000 for equity hiring initiatives in the Fire
Department. Funding for contract services for research and
implementation of initiatives was approved during the FY 2022 budget
process; however, logistical requirements for the SAFER grant and lower
Fire management staffing did not allow the Department to focus on equity
hiring initiatives in FY 2022. The Deputy Chief position restored in FY 2023
will be responsible for departmental recruitment, hiring and retention,
and managing the equity hiring initiative work with the support of this
funding.
$‐ $50,000
General Fund Non‐Departmental Budget Stabilization Reserve This action adjusts the fund balance to offset adjustments recommended
in this report.
$‐ $ (100,000)
Page 7 of 7
CAPITAL IMPROVEMENT PLAN FY 2022 REAPPROPRIATIONS TO FY 2023 ATTACHMENT B
Fund Number and Name Project Title Proj. No.Adopted Reapp Final Reapp Total Reapp Adopted Reapp Final Reapp Total Reapp
471 ‐ Capital Improvement Fund Americans With Disabilities Act Compliance PF‐93009 438,000 162,000 600,000
Animal Shelter Renovation PE‐19002 917,700 ‐ 917,700
Art In Public Spaces AC‐86017 1,477,200 67,000 1,544,200
Athletic Courts Resurfacing PG‐06001 75,800 ‐ 75,800
Automated External Defibrillator Replacement FD‐21000 ‐ ‐ 38,000 38,000
Baylands Boardwalk Improvements PE‐14018 ‐ 6,000 6,000
Baylands Comprehensive Conservation Plan PG‐17000 7,100 36,000 43,100
Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities PG‐06003 43,000 43,000
Bicycle and Pedestrian Transportation Plan Implementation PL‐04010 568,000 568,000
Boulware Park Improvements PE‐17005 3,124,000 ‐ 3,124,000 1,500,000 (1,100,000) 400,000
Building Systems Improvements PF‐01003 100,000 444,000 544,000 ‐ ‐
Byxbee Park Completion PE‐18006 ‐ ‐ ‐ ‐ (1,300,000) (1,300,000)
California Avenue District Gateway Signs PE‐17004 127,000 127,000
Cameron Park Improvements PG‐14002 101,500 ‐ 101,500
Churchill Avenue Enhanced Bikeway PL‐14000 2,776,100 2,776,100
Churchill Avenue/Alma Street Railroad Crossing Safety Improvements PL‐20000 3,845,900 150,000 3,995,900 3,845,900 90,000 3,935,900
City Bridge Improvements PE‐20001 70,000 ‐ 70,000
City Facilities Assessment PE‐20002 30,000 30,000
City Facility Parking Lot Maintenance PE‐09003 199,000 ‐ 199,000
City Hall Space Planning PE‐19000 575,000 575,000
Civic Center Electrical Upgrade & EV Charger Installation PE‐17010 485,400 ‐ 485,400 240,000 (66,000) 174,000
Civic Center Fire Life Safety Upgrades PE‐18016 205,100 ‐ 205,100
Civic Center Waterproofing Study and Repairs PE‐15020 301,000 (72,000) 229,000
Curb and Gutter Repairs PO‐12001 11,600 ‐ 11,600
Dog Park Installation and Renovation PG‐18001 144,500 144,500 144,500 144,500
Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection EPL‐15002 2,419,100 ‐ 2,419,100
Emergency Vehicle Traffic Signal Preemption System Pilot PL‐19000 26,000 26,000
Extrication Tool Replacement FD‐22000 118,187 107,000 225,187 43,000 43,000
Facility Interior Finishes Replacement PF‐02022 203,800 41,000 244,800
Fire Station 4 Replacement PE‐18004 195,000 ‐ 195,000
Foothills Nature Preserve Boronda Lake Dock Replacement OS‐18000 210,000 210,000
Golf Reconfiguration & Baylands Athletic Center Improvements PG‐13003 200,000 (32,000) 168,000
JMZ Renovation AC‐18001 1,279,200 (20,000) 1,259,200 140,000 140,000
Library Automated Material Handling LB‐21000 575,093 ‐ 575,093 350,000 350,000
Magical Bridge Playground Rubber and Synthetic Turf Resurfacing PE‐21003 163,000 163,000
Municipal Service Center A, B, & C Roof Replacement PF‐17000 131,000 131,000
Municipal Service Center Lighting, Mechanical, and Electrical Improvements PF‐16006 5,866,100 5,866,100 1,539,000 1,539,000
New California Avenue Area Parking Garage PE‐18000 814,400 (17,000) 797,400
New Downtown Parking Garage PE‐15007 10,600 10,600
New Public Safety Building PE‐15001 8,125,000 8,125,000
Newell Road/San Francisquito Creek Bridge Replacement PE‐12011 2,129,000 ‐ 2,129,000 300,000 300,000
Off‐Road Pathway Resurfacing And Repair OS‐09001 57,000 ‐ 57,000
Open Space Lakes And Pond Maintenance OS‐00002 29,000 29,000
Open Space Trails and Amenities OS‐00001 13,000 (13,000) ‐
Park and Open Space Emergency Repairs PG‐09002 83,300 83,300
Park Restroom Installation PG‐19000 326,300 ‐ 326,300 336,700 336,700
Parking Management and System Implementation PL‐16002 110,000 (110,000) ‐
Performing Arts Venues Seat Replacement AC‐18000 98,000 98,000
Police Video Recording Systems Replacement PD‐20000 15,000 15,000
Railroad Grade Separation and Safety Improvements PL‐17001 1,145,863 758,000 1,903,863
Ramos Park Improvements PG‐14000 8,900 ‐ 8,900
Roofing Replacement PF‐00006 100,000 452,000 552,000
Safe Routes To School PL‐00026 700,000 83,000 783,000
Sidewalk Repairs PO‐89003 65,000 65,000
Sign Reflectivity Upgrade PO‐11000 47,000 41,000 88,000
Street Lights Improvements PO‐05054 38,000 38,000
Street Maintenance PE‐86070 314,000 (314,000) ‐ 500,000 500,000
Expenses Revenues
Page 1 of 3
Capital Improvement Plan FY 2022 Reappropriations to FY 2023 ATTACHMENT B
Fund Number and Name Project Title Proj. No.Adopted Reapp Final Reapp Total Reapp Adopted Reapp Final Reapp Total Reapp
Expenses Revenues
471 ‐ Capital Improvement Fund Thermoplastic Lane Marking and Striping PO‐11001 78,000 78,000
Traffic Signal and Intelligent Transportation Systems PL‐05030 ‐ 588,000 588,000 ‐ ‐ ‐
Transportation and Parking Improvements PL‐12000 934,903 (339,000) 595,903 500,000 500,000
University Avenue Parking Improvements PF‐14003 100,000 57,000 157,000
Water, Gas, Wastewater Office Remodel PE‐19001 ‐ 377,000 377,000 570,000 570,000
471 ‐ Capital Improvement Fund Total 33,267,646 11,536,000 44,803,646 9,026,100 (1,355,000) 7,671,100
472 ‐ Cubberley Property Infrastructure Fund Cubberley Field Restroom CB‐17002 262,600 (41,000) 221,600
Cubberley Repairs CB‐17001 387,000 ‐ 387,000
Cubberley Roof Replacements CB‐16002 145,600 (23,000) 122,600
472 ‐ Cubberley Property Infrastructure Fund Total 795,200 (64,000) 731,200
530 ‐ Airport Enterprise Fund Airport Apron Reconstruction AP‐16000 532,000 685,000 1,217,000 ‐ 2,617,000 2,617,000
Airport Layout Plan AP‐21000 305,000 10,000 315,000 274,500 212,000 486,500
Airport Temporary Office Buildings AP‐22001 61,000 (2,000) 59,000
Automated Weather Observation System (AWOS)AP‐19000 88,000 88,000 79,200 79,200
530 ‐ Airport Enterprise Fund Total 986,000 693,000 1,679,000 353,700 2,829,000 3,182,700
523 ‐ Electric Fund Capacitor Bank Installation EL‐16002 146,000 125,000 271,000
Coleridge/Cowper/Tennyson 4/12kV Conversion EL‐14000 1,250,000 1,250,000
Colorado Distribution Feeder Outlet Replacement EL‐22002 400,000 400,000
Colorado Substation Site Improvements EL‐19002 650,000 650,000
East Meadow Circles 4/12kV Conversion EL‐17001 240,000 ‐ 240,000
Electric Utility Geographic Information System EL‐02011 160,000 ‐ 160,000
Foothills Rebuild (Fire Mitigation)EL‐21001 1,500,000 707,000 2,207,000
Inter‐substation Line Protection Relay EL‐17005 150,000 150,000
Rebuild Underground District 15 EL‐11003 ‐ 1,250,000 1,250,000
Rebuild Underground District 24 EL‐10006 282,000 282,000
Rebuild Underground District 26 EL‐16000 183,000 ‐ 183,000
SCADA System Upgrades EL‐02010 120,000 ‐ 120,000
Substation Breaker Replacement EL‐17002 ‐ ‐ ‐
Substation Physical Security EL‐16003 2,200,000 ‐ 2,200,000
523 ‐ Electric Fund Total 6,999,000 2,364,000 9,363,000
533 ‐ Fiber Optics Fund Fiber Optics Customer Connections FO‐10000 100,000 100,000
Fiber Optics Network ‐ System Improvements FO‐10001 79,000 79,000
533 ‐ Fiber Optics Fund Total 179,000 179,000
524 ‐ Gas Fund Gas Distribution System Improvements GS‐11002 250,000 250,000
Gas Main Replacement ‐ Project 23 GS‐13001 93,694 (94,000) (306)
Gas Main Replacement ‐ Project 24 GS‐14003 1,980,000 (25,000) 1,955,000
524 ‐ Gas Fund Total 2,323,694 (119,000) 2,204,694
528 ‐ Stormwater Management Fund Corporation Way System Upgrades and Pump Station SD‐21000 2,964,200 155,000 3,119,200
Green Stormwater Infrastructure SD‐22001 500,000 500,000
Storm Drainage System Replacement And Rehabilitation SD‐06101 653,100 ‐ 653,100
Trash Capture Device Installation SD‐22002 506,000 95,000 601,000 613,000 613,000
West Bayshore Road Pump Station SD‐20000 350,000 350,000
West Bayshore Road Trunk Line Improvements SD‐23000 5,800 5,800
528 ‐ Stormwater Management Fund Total 4,979,100 250,000 5,229,100 613,000 613,000
527 ‐ Wastewater Collection Fund Wastewater Collection System Rehabilitation/Augmentation Project 29 WC‐16001 ‐ ‐
Wastewater Collection System Rehabilitation/Augmentation Project 30 WC‐17001 879,688 (464,000) 415,688
Wastewater General Equipment and Tools WC‐13002 109,000 109,000
Wastewater System Improvements WC‐15002 100,000 100,000
527 ‐ Wastewater Collection Fund Total 979,688 (355,000) 624,688
526 ‐ Wastewater Treatment Fund Advanced Water Purification Facility WQ‐19003 194,000 (46,000) 148,000 1,691,000 40,000 1,731,000
Horizontal Levee Pilot WQ‐22001 42,900 25,000 67,900
New Laboratory And Environmental Services Building WQ‐14002 2,572,600 ‐ 2,572,600 2,510,000 2,510,000
Outfall Line Construction WQ‐19000 10,582,800 10,582,800 10,582,800 10,582,800
Plant Repair, Retrofit, and Equipment Replacement WQ‐19002 6,985,100 867,000 7,852,100
Primary Sedimentation Tank Rehabilitation WQ‐14003 2,628,000 ‐ 2,628,000 12,632,000 5,000,000 17,632,000
Secondary Treatment Upgrades WQ‐19001 34,200 ‐ 34,200 4,462,000 ‐ 4,462,000
526 ‐ Wastewater Treatment Fund Total 23,039,600 846,000 23,885,600 31,877,800 5,040,000 36,917,800
Page 2 of 3
Capital Improvement Plan FY 2022 Reappropriations to FY 2023 ATTACHMENT B
Fund Number and Name Project Title Proj. No.Adopted Reapp Final Reapp Total Reapp Adopted Reapp Final Reapp Total Reapp
Expenses Revenues
522 ‐ Water Fund Water Distribution System Improvements WS‐11003 217,000 217,000
Water General Equipment/Tools WS‐13002 55,000 (25,000) 30,000
Water Main Replacement ‐ Project 28 WS‐14001 2,000,000 (200,000) 1,800,000
Water Main Replacement ‐ Project 29 WS‐15002 374,600 374,600
Water Meters WS‐80015 400,000 400,000
Water Regulation Station Improvements WS‐07000 548,150 (31,000) 517,150
522 ‐ Water Fund Total 3,377,750 (39,000) 3,338,750
682 ‐ Technology Fund City Council Chambers Upgrade TE‐19001 1,697,500 93,000 1,790,500
Development Center Blueprint Technology Enhancements TE‐12001 66,000 66,000
Enterprise Resource Planning Upgrade TE‐19000 2,029,000 2,029,000
Radio Infrastructure Replacement TE‐05000 259,900 259,900
Utilities Customer Bill System Improvements TE‐10001 130,000 130,000
682 ‐ Technology Fund Total 4,116,400 159,000 4,275,400 ‐ ‐
681 ‐ Vehicle Replacement & Maintenance Fun Emergency Repair and Replacement VR‐15001 65,000 65,000
Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2020 VR‐20000 1,413,700 (671,000) 742,700
Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2021 VR‐21000 271,700 (72,000) 199,700
Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2022 VR‐22000 1,069,000 (667,000) 402,000
681 ‐ Vehicle Replacement & Maintenance Fund Total 2,754,400 (1,345,000) 1,409,400
Grand Total 83,618,478 14,105,000 97,723,478 41,870,600 6,514,000 48,384,600
Page 3 of 3
CAPITAL IMPROVEMENT PLAN FY 2023 TECHNICAL CLEAN‐UP ACTIONS ATTACHMENT C
Fund Name Department Proj. No. Title Description Expense
Capital Improvement Fund Public Works PE‐08001 Rinconada Park Improvements This project was over‐expended in FY 2022 and the
budget increased by $109,000 as part of the FY
2022 Year‐End process. A corresponding decrease is
recommended in FY 2023 in order to maintain the
total project budget of $10.7 million over the life of
the project.
(109,000)
Electric Fund Utilities EL‐98003 Electric System Improvements Council approved a three‐year contract (CMR
13953) to support undergrounding work in multiple
projects: Foothills Rebuild (EL‐21001); Electric
Customer Connections (EL‐89028); Fiber Optic
Customer Connections (FO‐10000); and Fiber Optic
System Improvement (FO‐10001). However, the
total contract amount for all the projects in all
three years instead of the anticipated first year
amount of the contract needed for this project was
entirely encumbered in this project in FY 2022 and
carried into FY 2023. This action will align funding in
FY 2023 with planned work in this project by
reducing the budget from $9.5 million to $4.1
million.
(9,500,000)