HomeMy WebLinkAboutStaff Report 2307-17693.Approval of FY 2023 Reappropriations Requests and Amendments to the FY 2024 Budget
Appropriation. CEQA Status: Not a Project
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: October 23, 2023
Report #:2307-1769
TITLE
Approval of FY 2023 Reappropriations Requests and Amendments to the FY 2024 Budget
Appropriation. CEQA Status: Not a Project
RECOMMENDATION
Staff recommends that the City Council amend the Fiscal Year 2024 Budget Appropriation for
various funds as identified in Attachment A, and various capital projects as identified in
Attachment B.
EXECUTIVE SUMMARY
As a part of the fiscal year-end process, staff reviews the City’s unencumbered and unspent
appropriations of the fiscal year just ended (FY 2023), 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 without the need for Council approval. Each year there
are a small number of important projects which staff was unable to complete or encumber
funds for in the year that just ended. The reappropriation process allows staff to bring forward
funding recommendations to City Council to continue these projects into the next fiscal year (FY
2024) without impacting funding programmed for services in FY 2024. All funding adjustments
align with prior Council appropriations at a department level and adjust for timing between
fiscal years.
BACKGROUND
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 (FY 2023)
to be carried forward to the subsequent Fiscal Year (FY 2024).
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 is built into the annual adopted
budget. As FY 2023 has closed and staff has processed necessary accounting transactions,
unexpended and unencumbered 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 FY 2023 be reappropriated to FY 2024. Also, as part of this review, staff realized
that for some projects too much funding was recommended for reappropriation as additional
expenditures occurred in FY 2023. Therefore, this staff report also recommends reversing a
portion of previously authorized reappropriations.
ANALYSIS
Attachment A identifies those operating budget reappropriation requests that staff recommends
for approval, while Attachment B lists recommended capital project reappropriation requests.
With the submission of this report for City Council consideration, the ASD Director/CFO certifies
that sufficient unencumbered and unexpended funds are available from FY 2023 to fund the
requested reappropriations to FY 2024. This report is being brought forward prior to the FY 2023
Annual Comprehensive Financial Report (ACFR), scheduled to be considered by the Finance
Committee in November, 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: Items in this category are related to citywide
priority needs previously identified by the Council, as part of the FY 2023 priority setting
in January 2023, that could not be completed in FY 2023 and funding is recommended to
be reappropriated to FY 2024 to complete the work. Examples of projects in this category
include: Utility Litigation Reserve ($17.5 million), Downtown Housing Plan ($1.0 million),
Advancing Racial Equity ($0.3 million), Labor Negotiations ($0.2 million), Think Fund Teen
Services ($0.2 million), and Seismic Upgrade ($0.1 million).
•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 staffing constraints, procurement timing, and supply chain impacts.
Examples of projects in this category include: Information Technology Professional
Services Contracts and Software Application Maintenance ($0.7 million), Heat Pump
Water Heater Marketing ($0.3 million), Management Training Program ($0.3 million), Fire
Academy Costs and Equity Hiring Initiatives for New Hires ($0.2 million), Backflow
Prevention Device Testing ($0.1 million), JMZ Ticketing System ($0.1 million), and Library
Automated Materials Handling Maintenance ($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 Housing
at Wilton Court ($1.8 million), Mental Health Services Grant ($1.0 million), Palo Alto Link
Services ($0.5 million), Information Technology Fees for Planning and Development
Services Technology Replacement ($0.4 million), and Direct Cost Recovery Projects in the
Planning and Development Services Department ($0.1 million).
Operating Reappropriations Previously Approved
FY 2024 Adopted Operating Budget
As part of the FY 2024 Budget review process, early reappropriation of anticipated savings in the
General Fund in FY 2023 was recommended and approved by the Council to fund actions in FY
2024. The total approved amount of $15.0 million consisted of the $14.0 million Uncertainty
Reserve and $1.0 million of Homekey operations savings.
The Uncertainty Reserve was established as part of the FY 2023 Mid-Year Review to proactively
set aside funding to address estimated deficits in FY 2024 and FY 2025. The full Uncertainty
Reserve was reappropriated to FY 2024 as part of the budget process and $3.9 million was used
to balance FY 2024, leaving $10.1 million for future needs.
As part of the FY 2023 Adopted Budget, the Council approved $1.0 million of funding annually for
seven years to support operating costs for housing and homeless services at the Homekey
Facility. This facility was not completed in FY 2023, and the capital costs to complete the Homekey
Facilities project (PE-24005) increased. The operating funding savings were reappropriated to FY
2024 as part of the FY 2024 Adopted Budget to support the completion of PE-24005.
FY 2024 Staff Reports Early Reappropriations
As part of the August 7, 2023 Council Meeting, two staff reports were brought forward by the
Planning and Development Services Department, and Council approved early reappropriation of
funding to continue projects from FY 2023 into FY 2024. The first report (CMR 2305-14061)
reappropriated $0.2 million in the General Fund to complete financial feasibility studies for the
Housing Element based on adjusted development standards. The second report (CMR
1 8/7/2023 City Council, Approval of a FY 2024 Budget Amendment in the General Fund;
https://cityofpaloalto.primegov.com/Portal/viewer?id=2137&type=0
2306-17242) reappropriated $3.0 million in the Residential Housing In-Lieu Fund for a loan to
Santa Clara County for the development of an affordable workforce housing project located at
231 Grant Avenue.
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 2024 Adopted
Budget included $163.9 million in reappropriated expenditure funds, partially offset by $66.3
million in reappropriated revenue, across all City funds based on estimates of anticipated
spending and revenue collections in FY 2023. Since the adoption of the capital budget, some
adjustments and refinements to project reappropriations are required since FY 2023 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 2024 Adopted Budget:
•Additional reappropriations are recommended when project expenditures originally
anticipated to occur before the end of FY 2023 will now instead occur in FY 2024. Similarly,
revenue anticipated to be collected in FY 2023 will be reappropriated to FY 2024 to align
with actual collections.
•Downward adjustments to reappropriations are recommended when expenses are no
longer anticipated to occur in FY 2024 and funding was previously reappropriated in the
budget document to FY 2024. If expenses were realized in FY 2023, an adjustment to
reduce the budgeted reappropriation is needed as the activity no longer needs funding in
FY 2024. 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 2024 adjustment amounts represent the final step in the City Council-approved change to
the reappropriation process. There are sufficient expenditure savings in Fiscal Year 2023 to
support all recommended adjustments.
Table 1: Year-End Capital Project Reappropriation Summary – By Fund
Fund
# of
Projects
Recommended Revenue
Reappropriation Adj.
Recommended Expense
Reappropriation Adj.
Capital Improvement Fund 35 $3,457,976 $15,783,112
Cubberley Infrastructure Fund 3 -$539,809
Airport Fund 5 $831,152 $2,044,078
Electric Fund 10 -$713,174
2 8/7/2023, City Council, Approval of FY 2024 Budget Amendment in the Residential Housing In-Lieu Fund;
https://cityofpaloalto.primegov.com/Portal/viewer?id=2644&type=0
Fund
# of
Projects
Recommended Revenue
Reappropriation Adj.
Recommended Expense
Reappropriation Adj.
Gas Fund 2 -$107,643
Stormwater Management
Fund 6 $161,837 $594,599
Wastewater Collection Fund 3 -$8,642,833
Wastewater Treatment Fund 9 $199,010,377 $8,543,215
Water Fund 6 -$631,763
Technology Fund 3 -$51,835
Vehicle Replacement and
Maintenance Fund 2 -($1,429,022)
Total All Funds 84 $203,461,342 $36,223,039
It should be noted that 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. In total, $200.1 million will be
reappropriated for capital projects, offset by $269.8 million in revenue for the projects. The
Capital Improvement Fund encompasses 44% of the total recommended expense
reappropriation adjustment amount of $36.2 million because it accounts for 35 of the 84 projects
with final reappropriations. However, 98% of the total recommended revenue reappropriation
adjustment amount of $203.5 million comes from the Wastewater Treatment Fund because
there is substantial lag time in reimbursement of funds from the State Revolving Fund (SRF) loans
that support Wastewater Treatment projects.
FISCAL/RESOURCE IMPACT
All projects, programs, and corresponding funding contained within this report were previously
approved by the City Council for FY 2023. 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 in FY 2023 for the recommended Fiscal Year 2024 Operating Budget adjustments
(Attachment A), and Capital Budget adjustments (Attachment B).
For Operating reappropriations, staff recommends expense reappropriations of $22.0 million in
the General Fund, $1.8 million in Special Revenue Funds, $0.3 million in Enterprise Funds, and
$1.1 million in Internal Service Funds. Staff also recommends revenue reappropriations of $6.0
million in the General Fund.
For capital projects, in addition to the amounts reappropriated as part of the FY 2024 Adopted
Capital Budget, staff recommends $16.3 million in expenses be reappropriated to FY 2024 in the
Capital Improvement Funds, in addition to $3.5 million in revenue reappropriations. Also
recommended is $21.3 million in additional expenses reappropriated in various Enterprise Funds,
and a reduction of $1.4 million in expenditures in the Internal Service Funds. The cumulative
reappropriation, including amounts approved in the FY 2024 Adopted Capital Budget, will be
$81.8 million in expenses, partially offset by $32.2 million in revenue in the Capital Improvement
Fund projects; $113.4 million in expenses in the Enterprise Fund projects; and $4.9 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.
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 departments
requesting the reappropriated funds.
ENVIRONMENTAL REVIEW
The action recommended is not a project for the purposes of the California Environmental
Quality Act. (CEQA Guidelines 15378(b)(2),(4) and (5).)
ATTACHMENTS
Attachment A: FY 2023 to FY 2024 Operating Budget Reappropriation Requests
Attachment B: FY 2023 to FY 2024 Capital Budget Reappropriation Requests
APPROVED BY:
Kiely Nose, Assistant City Manager
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
Fund Name
General Fund
Department Title Description
Administrative Services Development Impact Fee Nexus
Study
This action reappropriates funds to hire a consultant to prepare a nexus
study for the Public Safety Facilities and General Government Facilities
Development Impact Fees in FY 2024. The State Assembly Bill AB602
requires that nexus studies related to development impact fees must be
updated by Jan. 1, 2030. However, the City Attorney’s Office recommends,
as a best practice, that these studies be updated every 8 years, which
could be earlier than 2030 for some fees. ASD presented and Council
approved the last nexus studies for the Public Safety Facilities and General
Government Facilities impact fees in 2015 (CMR 5396).
$‐$35,000
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 2023, the unspent balance is
projected to be $21,000 and recommended to be reappropriated to FY
2024.
$‐$21,000
General Fund
General Fund
Community Services
Community Services
Backflow Prevention Device
Testing
On June 19, 2023, Council approved CMR 2303‐1226 which allocated
$56,000 in both Community Services and Public Works for backflow
prevention device testing. The contract began on July 1, 2023 and the
inspections started in July; however, the June 19th approval date did not
allow the funds to be encumbered and carried forward into FY 2024, so a
reappropriation is recommended.
$
$
‐
‐
$
$
56,000
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
216,000
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.
Page 1 of 8
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Fund Name
General Fund
Department Title Description Expense
Appropriation
$ 100,000Community Services JMZ Ticketing System This action reappropriates funding for a new ticketing system to support
the City’s Economic Recovery by increasing the number of people that
purchase tickets for the Junior Museum and Zoo. Attendees have cited
that the current system is a barrier to attendance. $50,000 was
appropriated in FY 2023 for this purchase; however, preliminary bids have
indicated that this system will cost $100,000, so additional savings of
$50,000 in the Community Services Department in FY 2023 is
$‐
recommended to be reappropriated to support this purchase. The new
system will streamline ticket sales for general admissions and membership
and provide new tools to spread attendance out throughout the day,
capabilities that the current system lacks.
General Fund
General Fund
Community Services
Community Services
Palo Alto Community Child Care
(PACCC) Quarterly Payment
PACCC did not receive a second quarter payment in FY 2022. Funding for
this payment was carried forward into FY 2023 for this payment; however,
due to staff turnover, the unpaid invoice went unnoticed until PACCC staff
inquired in August 2023. Savings is available in the Community Services
Department in FY 2023 to reappropriate to FY 2024 in order to true up
funding owed to PACCC.
$
$
‐
‐
$132,000
Twilight Concert Series This action requests to reappropriate $30,000 to allow the City to host 6
concerts in Summer 2023 and 2024. Council previously expanded the
number of summer concerts from four to six. Given the timing of
expenditures between two fiscal years to hold the summer concert series,
staff recommends reappropriating $30,000 to FY 2024 for the remaining
concerts in Summer 2023. This adjustment will help ensure that the City
can host six concerts in both Summers 2023 and 2024.
$
$
30,000
50,000General Fund Fire Equity Hiring Initiative This action reappropriates $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 or FY 2023. 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.
$‐
General Fund Fire Fire Academy Costs for New Hires As part of the FY 2023 Mid‐Year Review, $330,000 was appropriated to the
Fire Department for new hire costs related to the Fire Academy and
Personal Protective Equipment (PPE). Due to contracting and purchasing
time frames, $115,000 of the costs are recommended to be
$‐$115,000
reappropriated to FY 2024, because the Fire Academy and training spans
FY 2023 and FY 2024.
Page 2 of 8
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
Fund Name
General Fund
Department Title Description
Fire FireMed Marketing This action reappropriates $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. In FY 2023, 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 2024.
$‐$50,000
General Fund Human Resources Labor Negotiations The City's Labor Negotiations team has successfully reached agreements
with all of the City's bargaining groups. Although these successful
negotiations have been settled, the department recognizes the ongoing
need for legal guidance from the firm that helped reach agreements,
throughout the duration of these contracts. As a strategic measure to
proactively address anticipated expenditures, the Department is
requesting reappropriation of funds. This proactive financial adjustment
will ensure the availability of resources to cover anticipated legal expenses
associated with the continuing counsel required for the enforcement of
the negotiated contracts.
$‐$230,000
General Fund Library Automated Materials Handling
Maintenance
This action reappropriates funding for maintenance service of the
Automated Materials Handling (AMH) machines located at the Mitchell
Park and Rinconada library branches. Funding for these services was
unable to be encumbered at the end of FY 2023, so it is recommended to
be reappropriated to FY 2024. The machines were installed in FY 2015 and
are reaching end of life, so they do need regular maintenance. This will
fund the last maintenance contract for this service for these machines as
the Library Department will start an RFP process to replace the AMH
machines at these branch locations.
$‐$82,000
General Fund Non‐Departmental Advancing Racial Equity This action reappropriates the remaining funds of the original $0.5 million
appropriated for the advancement of racial equity and the associated
workplan. The City is continuing efforts to educate and train staff, Council,
and Boards and Commission members on Diversity, Equity, and Inclusion
(DEI) topics. The City Manager's Office is also in the process of hiring an
Equity and Inclusion Program Manager to lead the City's DEI initiatives for
its community, stakeholders, and staff.
$‐$315,000
Page 3 of 8
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
Fund Name
General Fund
Department
Non‐Departmental
Title Description
Mental Health Services Grant On April 3, 2023 (CMR 2303‐1179) the City accepted a $2.0 million grant
awarded by the Department of Health and Human Services Substance
Abuse and Mental Health Services Administration (SAMHSA) for assistance
related to North County TRUST (Trusted Response Urgent Support Team).
TRUST is focused on responding to individuals in crisis, providing follow‐up
and referrals, as needed, and de‐escalating high stress situations. This
program is in addition to the City’s Psychiatric Emergency Response Team
(PERT) and the County’s Mobile Crisis Response Teams (MCRT) programs.
Half of the grant funds were encumbered in FY 2023, this action
reappropriates the remaining funds as well as the full revenue
reimbursement to FY 2024.
$2,000,000 $1,000,000
General Fund Non‐Departmental
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 2024 for
future HSRAP use.
$‐
‐
$40,000
General Fund Utility Transfer Litigation Reserve This action reappropriates $17.5 million for the financial impacts of a
lawsuit, Green v. City of Palo Alto (Santa Clara Superior Court, Case No.
1‐16‐CV‐300760). This case was a class action lawsuit filed on October 6,
2016, that claimed the City’s gas rates were taxes that exceeded the cost
of providing service, absent voter approval, because the rates funded
annual transfers from the utilities to the City’s general fund. The lawsuit
sought a refund of three years of alleged overpayments by gas ratepayers.
The financial settlement was not completed in FY 2023, so the reserve is
recommended to be reappropriated to FY 2024.
$$17,500,000
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
$‐$250,000
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.
Page 4 of 8
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Fund Name
General Fund
Department Title Description Expense
Appropriation
3,077,000 $ 475,000Office of Transportation Palo Alto Link Services On December 12, 2022 (CMR 14959) approved a contract for the Palo Alto
On‐Demand Transit Service (PA Link) and appropriated grant funding from
the Santa Clara County Valley Transit Authority (VTA) to fund the program.
Additional funding and revenue from Stanford was appropriated on April
10, 2023 (CMR2303‐1128) to expand the service to the Stanford Research
Park. Most of the funding for PA Link was encumbered in FY 2023;
however, $475,000 is recommended to be reappropriated to be able to
fully fund the service in FY 2024. The grant revenue and revenue from
Stanford are also recommended for reappropriation to FY 2024 to ensure
reimbursement.
$
General Fund Planning and Development
Services
ADU Handbook and CEQA Training The Planning & Transportation Committee recommended Accessory
Dwelling Unit (ADU) and Junior ADU (JADU) zoning code changes to the
City Council in December 2022. These updates reflect changes in state law
and direction from the California Department of Housing and Community
Development that went into effect in 2023. The City's Summary Guide to
ADUs and JADUs, for builders and homeowners, needs updating to reflect
these and other changes. In addition, Planning and Development Services
Department staff will host a training to inform residents and developers
about the changes. Funds were unable to be encumbered for these
services in FY 2023, so they are recommended to be reappropriated to FY
2024.
$‐$55,000
General Fund
General Fund
Planning and Development
Services
Direct Cost Recovery Project
Budget
This is a cost neutral action to reappropriate the remaining revenue and
expense funding 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. All
costs will be reimbursed by the applicant.
$
$
43,000
62,000
$
$
43,000
62,000Planning and Development
Services
Direct Cost Recovery Project
Budget
This is a cost neutral action to reappropriate remaining revenue and
expense funding related to deposit‐based cost recovery projects at
multiple sites. These are fully cost recoverable projects that are tracked
separately using deposit accounts. The funds do not comingle with other
contract service budgets and funds are only accessible for this purpose. All
costs will be reimbursed by the applicant.
Page 5 of 8
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Fund Name
General Fund
Department Title Description Expense
Appropriation
800,000 $ 950,000Planning and Development
Services
Downtown Housing Plan This action reappropriates budget for the award of $800,000 from the
Metropolitan Transportation Commission and reappropriates $950,000 for
project management and analytical consultant support for the City to
prepare a Downtown Housing Plan. The Housing Plan will focus on housing
production in the Downtown, including affordable housing, and will
implement policies from the City’s Comprehensive Plan. Community
engagement will be key to the success of the planning effort, as will
technical, design, and planning work by qualified consultants funded by
the grant. An RFP was released and responses were received late in FY
2023, with insufficient time to complete contractor selection and obtain
Council's contract approval prior to the end of fiscal year. Negotiations are
underway with respondents, so this reappropriation is recommended to
bring the contract(s) to Council in FY 2024.
$
General Fund Planning and Development
Services
Seismic Upgrade On November 13, 2017 (CMR 8586) presented work done by Development
Services and Rutherford & Chekene to look at seismically sensitive
structures in Palo Alto and suggest ordinance changes. Funding of
$150,000 was appropriated as part of the FY 2023 Adopted Budget for
additional work to further this project, including further identification of
hazardous buildings which will have structural risks during the next
earthquake, working with stakeholders, drafting a new ordinance, and
business and economic implications of implementing a new program
(municipal code updates). The result of this work would be a City program
to encourage citywide seismic upgrades and a plan for implementation. A
reappropriation is recommended to FY 2024 to continue work on the RFP
and scope of this project.
$‐$150,000
General Fund Public Works Backflow Prevention Device
Testing
On June 19, 2023, Council approved CMR 2303‐1226 which allocated
$56,000 in both Community Services and Public Works for backflow
prevention device testing. The contract began on July 1, 2023 and the
inspections started in July; however, the June 19th approval date did not
allow the funds to be encumbered and carried forward into FY 2024, so a
reappropriation is recommended.
$‐$56,000
Total General Fund Reappropriation $5,982,000 $22,013,000
Page 6 of 8
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Recommended
Fund Name Department Title Description Expense
Appropriation Appropriation
Housing In‐Lieu Fund:
Commercial/
Planning and Development
Services
Alta Housing Affordable Housing This action reappropriates $1.8 million for an agreement with Alta Housing
Loan Agreement: 3705 El Camino to develop and construct a 100 percent affordable housing project at 3705
$‐$1,767,000
Residential Housing
Impact Fund
Real (Wilton Court)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 2023, approximately $1.8 million
of funding remained ($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 2024.
Total Special Revenue Fund Reappropriation $‐$1,767,000
Electric Fund Utilities Heat Pump Water Heater Program This action reappropriates funding for marketing ($65,000) and customer
rebates ($188,000) related to the Heat Pump Water Heater program. Due
to staffing changes and general project logistics, the heat pump water
heater marketing program took longer than expected to launch due to
extended time needed to get a consultant onboard. As the program
continues to be implemented and more heat pump water heaters are
installed, Utilities will continue to receive applications for rebates
throughout FY 2024. Reappropriation is needed to continue to fund the
marketing and rebate portions of this program.
$‐$253,000
Total Enterprise Fund Reappropriation $‐$253,000
Page 7 of 8
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Fund Name Department Title
Contract Services
Description Expense
Appropriation
320,000Technology Fund Information Technology Due to competing priorities and fiscal year end cut‐off dates, the
Information Technology (IT) Department was not able to bring forward
contracts for Council approval before the end of FY 2023. Reappropriation
is recommended to support contracts in FY 2024 to address
$‐$
recommendations/findings from the Baker Tilly Risk audit. This includes
contracts for incident retainers, endpoint protection, and cybersecurity
assessments ($146,000). Funding will also be used to start working on the
City's SharePoint sites ($174,000). Without this reappropriation IT will not
be able to work on other highly specialized projects of this magnitude.
Technology Fund
Technology Fund
Information Technology
Information Technology
Software Application Maintenance This action reappropriates funding for maintenance for several software
applications used by the City including Oracle ($135,000), Advanced
Metering Infrastructure (AMI) and SAP ($100,000), and web services
($171,000). Funding for these maintenance contracts was unable to be
encumbered before the end of FY 2023 so reappropriation is
recommended to FY 2024 to ensure there is enough funding for these
services.
$
$
‐
‐
$
$
406,000
415,000Planning and Development
Services Technology Fee
This action reappropriates $415,000 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 2023,
$415,000 remains unspent and will be used for planned projects in FY
2024.
Total Internal Service Fund Reappropriation $
Total All Funds Reappropriation $
‐$
$
1,141,000
25,174,0005,982,000
Page 8 of 8
FY 2023 TO FY 2024 CAPITAL BUDGET REAPPROPRIAITONS ATTACHMENT B
Expenses Revenues
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
Animal Shelter Renovation
Art In Public Spaces
PF‐93009
PE‐19002
AC‐86017
PG‐06001
FD‐21000
PG‐17000
PG‐06003
PL‐04010
PE‐17005
PF‐01003
PE‐17004
PL‐23000
PG‐14002
PE‐13011
PL‐14000
PL‐20000
PE‐20001
PE‐20002
PE‐09003
PE‐19000
PE‐17010
PE‐15020
PO‐12001
PG‐18001
PL‐15002
PF‐23000
PL‐19000
FD‐22000
PF‐02022
PE‐15003
PE‐18004
OS‐18000
PE‐20000
PE‐21000
PG‐18000
PG‐13003
PE‐11011
AC‐18001
LB‐21000
PE‐21003
PF‐17000
PF‐16006
PE‐18000
PE‐15007
PE‐15001
PE‐12011
OS‐09001
OS‐00002
PG‐09002
PG‐19000
PL‐15003
500,000
917,700
1,452,337
259,584
332,551
195,273
9,144
‐
832,551
1,112,973
1,461,481
259,584
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐Athletic Courts Resurfacing
Automated External Defibrillator Replacement
Baylands Comprehensive Conservation Plan
Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities
Bicycle and Pedestrian Transportation Plan Implementation
Boulware Park Improvements
Building Systems Improvements
California Avenue District Gateway Signs
California Avenue Streetscape Update
Cameron Park Improvements
Charleston/Arastradero Corridor Project
Churchill Avenue Enhanced Bikeway
Churchill Avenue/Alma Street Railroad Crossing Safety Improvements
City Bridge Improvements
City Facilities Assessment
38,000 38,000
43,100
189,370
‐
‐
‐
43,100
189,370
3,291,685
4,943,367
784,716
123,382
56,118
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐3,291,685
4,943,367
‐
‐188,979 188,979
784,716
124,476
49,092
95,813
‐
‐
‐
‐
‐
‐
‐
‐
(1,094)
7,026
(9,363)86,450
4,834 4,834
2,776,100
1,494,266
416,461
30,000
199,000
571,373
735,399
179,779
118,623
144,500
2,419,102
280,000
26,000
‐
‐
‐
‐
2,776,100
1,494,266
416,461
30,000
201,880
571,373
735,399
179,779
118,623
144,500
161,677
280,000
‐
79,513
494,800
1,000
160,034
210,000
25,066
442,000
770,000
168,000
87,105
‐‐‐
3,845,900 18,906 3,864,806
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
City Facility Parking Lot Maintenance
City Hall Space Planning
Civic Center Electrical Upgrade & EV Charger Installation
Civic Center Waterproofing Study and Repairs
Curb and Gutter Repairs
2,880
‐
‐
‐
‐
174,000 174,000
‐
‐
‐
‐
‐
‐
‐
‐
Dog Park Installation and Renovation ‐144,500 144,500
Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equip.
Electric Charger Infrastructure Installation
Emergency Vehicle Traffic Signal Preemption System Pilot
Extrication Tool Replacement
Facility Interior Finishes Replacement
Fire Station 3 Replacement
(2,257,425)‐‐
‐280,000 280,000
(26,000)
79,513
200,000
1,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐20,845 20,845
294,800
‐
160,034
210,000
25,066
442,000
770,000
168,000
‐
918,536
763,198
85,935
256,876
5,866,100
786,684
5,448,600
4,059,173
8,800,000
142,236
38,069
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Fire Station 4 Replacement ‐
‐
‐
‐
‐
‐
Foothills Nature Preserve Boronda Lake Dock Replacement
Foothills Nature Preserve Dam Seepage Investigation and Repairs
Foothills Nature Preserve Improvements
Golf Course Net and Artificial Turf Replacement
Golf Reconfiguration & Baylands Athletic Center Improvements
Highway 101 Pedestrian/Bicycle Overpass Project
JMZ Renovation
87,105
(18,701)
‐‐
899,835
763,198
85,935
76,844 76,844
540,000Library Automated Material Handling ‐
‐
540,000 ‐
‐
‐
‐
‐
‐
‐
Magical Bridge Playground Rubber and Synthetic Turf Resurfacing
Municipal Service Center A, B, & C Roof Replacement
Municipal Service Center Lighting, Mechanical, and Electrical Improvements
New California Avenue Area Parking Garage
New Downtown Parking Garage
‐
‐
‐
‐
‐
‐
‐
‐
(34,044)222,832
5,866,100
786,684
5,448,600
4,059,173
12,165,799
144,733
38,069
‐
‐
‐
‐
5,448,600 5,448,600
New Public Safety Building ‐‐
Newell Road/San Francisquito Creek Bridge Replacement
Off‐Road Pathway Resurfacing And Repair
Open Space Lakes And Pond Maintenance
Park and Open Space Emergency Repairs
Park Restroom Installation
3,365,799 8,800,000 3,820,236 12,620,236
2,497 ‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
18,845
20,228
163,900
18,845
20,228
163,900Parking District Implementation
Page 1 of 3
FY 2023 TO FY 2024 CAPITAL BUDGET REAPPROPRIAITONS ATTACHMENT B
Parking Management and System Implementation
Performing Arts Venues Seat Replacement
Police Video Recording Systems Replacement
Railroad Grade Separation and Safety Improvements
Ramos Park Improvements
Rinconada Park Improvements
Robles Park Improvements
Roofing Replacement
Roth Building Rehabilitation Phase 1
Safe Routes To School
San Francisquito Creek Joint Powers Authority Ongoing Creek Projects
Sidewalk Repairs
Sign Reflectivity Upgrade
Street Lights Condition Assessment
Street Lights Improvements
Street Maintenance
PL‐16002
AC‐18000
PD‐20000
PL‐17001
PG‐14000
PE‐08001
PE‐18015
PF‐00006
PF‐23001
PL‐00026
PE‐22000
PO‐89003
PO‐11000
PE‐13014
PO‐05054
PE‐86070
PO‐11001
PL‐05030
PL‐12000
PF‐14003
1,988
83,910
119,999
‐
8,898
16,367
366,748
1,710,629
11,348,825
819,817
5,914
(1,988)
(51,872)
11,449
3,995,937
‐
‐
32,038
131,448
3,995,937
8,898
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
935,333 935,333
‐‐‐
‐16,367 16,367 30,000 46,367
275,500
5,055
482,548
10,934
‐
642,248
1,715,684
11,831,373
830,751
5,914
1,080,907
136,037
220,000
125,000
2,173,646
153,000
1,110,754
913,584
149,318
78,689,186
‐
1,074,698
2,042,730
3,117,427
1,614,461
186,918
358,800
319,199
98,200
2,577,578
250,000
50,000
1,000,000
379,109
800,000
990,000
50,000
644,264
500,000
135,382
1,402,618
290,000
282,000
533,000
5,026,643
1,090,000
800,000
3,784,152
18,007,168
536,750
8,422,203
8,958,952
3,376,558
‐
‐
‐
‐
‐
‐
6,781,825 (1,650,000)5,131,825
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
1,080,907
26,037
‐300,000 300,000
110,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
220,000
125,000
2,173,646
153,000
750,000
500,000
149,318
62,906,074
368,222
198,796
2,010,600
2,577,618
‐
‐
‐
‐Thermoplastic Lane Marking and Striping
Traffic Signal and Intelligent Transportation Systems
Transportation and Parking Improvements
University Avenue Parking Improvements
471‐Capital Improvement Fund TOTAL
‐
750,000
250,000
‐
27,157,192
‐
‐
300,000
500,000
‐
30,615,168
‐
360,754
413,584
‐
(450,000)
250,000
‐
15,783,112
(368,222)
875,902
32,130
539,809
1,614,461
186,918
37,300
195,199
10,200
2,044,078
‐
3,457,976
472‐Cubberley Fund Cubberley Field Restroom
Cubberley Repairs
Cubberley Roof Replacement
CB‐17002
CB‐17001
CB‐16002
‐
‐
‐
‐
‐‐
1,552,600
1,552,600
1,552,600
1,552,600472‐Cubberley Fund TOTAL
530‐Airport Fund Airport Apron Reconstruction Phase 1
Airport Layout Plan
Airport Temporary Office Buildings
Airport Zero Emission Vehicle Fleet Replacement
Automated Weather Observation System
AP‐16000
AP‐21000
AP‐22001
AP‐23000
AP‐19000
‐673,452
157,700
673,452
321,500
124,000
88,000
533,500
250,000
‐
1,000,000
300,000
800,000
990,000
‐
124,000
79,200
203,200
281,700
79,200
1,034,352530‐Airport Fund TOTAL
523‐Electric Fund
831,152
230 kV Electric Inte
Capacitor Bank Installation
EL‐06001
EL‐16002
EL‐14000
EL‐22002
EL‐19001
EL‐19002
EL‐89031
EL‐17001
EL‐98003
EL‐02011
EL‐21001
EL‐17005
EL‐10006
EL‐16000
EL‐11014
EL‐17002
EL‐89044
EL‐16003
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
50,000
Coleridge/Cowper/Tennyson 4/12kV Conversion
Colorado Distribution Feeder Outlet Replacement
Colorado Power Station Equipment Upgrade
Colorado Substation Improvements
Communications System Improvements
East Meadow Circles 4/12kV Conversion
Electric System Improvements
Electric Utility GIS
79,109
‐
‐
50,000
(13,102)
500,000
50,382
(37,382)
‐
657,366
‐
85,000
Foothills Rebuild
HCB Pilot Wire Relay Replacement
Rebuild UG Dist 24
1,440,000
290,000
282,000
500,000
5,280,089
1,090,000
800,000
3,529,539
17,293,994
505,796
8,345,513
8,851,309
3,119,195
‐
Rebuild UG District 26 33,000
(253,446)
‐
Smart Grid Technology Installation
Substation 60kV Breakers Replacement
Substation Facility Improvements
Substation Security
‐
254,613
713,174
30,954
76,690
107,643
257,363
523‐Electric Fund TOTAL
524‐Gas Fund Gas System Improvements
GMR‐ Project 24
GS‐11002
GS‐14003
524‐Gas Fund TOTAL
528‐Stormwater Fund Corporation Way System Upgrades SD‐21000
Page 2 of 3
FY 2023 TO FY 2024 CAPITAL BUDGET REAPPROPRIAITONS ATTACHMENT B
Green Stormwater Infrastructure
Storm Drain Pump Station to Adobe Creek
Storm Drain System Repl & Rehab
SD‐22001
SD‐20000
SD‐06101
SD‐22002
SD‐23000
1,866,351
1,069,995
578,924
‐
819,400
7,453,865
‐
130,050
100,790
28,061
6,613
71,721
594,599
147,859
‐
1,996,401
1,170,785
606,985
6,613
891,121
8,048,464
147,859
599,501
58,941
1,216,351 1,216,351
Trash Capture Device Installation 161,837 161,837
W Bayshore Rd Trunk Line Improvements
528‐Stormwater Fund TOTAL 1,216,351 161,837 1,378,188
527‐Wastewater Collection Fund Sewer Manhole Rehab/Replacement
Wastewater System Improvements
WC Fusion & Gen Equipment/Tools
WC Reh/Aug Proj 30
WC‐99013
WC‐15002
WC‐13002
WC‐17001
WC‐19001
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
599,501
58,941 ‐
‐
‐
80,000
8,414,974
8,642,833
129,891
10,300
38,867
2,578,200
23,000
315,115
870,278
1,888,152
2,689,411
8,543,215
‐
17,946
‐
500,499
(560)
232,000
(86,883)
(31,239)
631,763
‐
80,000
WC Reh/Aug Proj 31 8,414,974
9,301,275
17,093,787
4,767,300
242,340
2,578,200
10,605,800
315,115
7,322,920
4,516,152
6,511,905
53,953,520
6,578,007
274,982
351,529
846,720
3,271,340
232,000
473,387
563,361
12,591,326
1,770,910
650,000
1,004,620
144,310
259,900
222,082
4,051,822
30,000
527‐Wastewater Collection Fund TOTAL
526‐Wastewater Treatment Fund
658,442
16,963,896
4,757,000
203,473
‐
Advanced Water Purification Facility
Headworks Facility Replacement
Horizontal Levee Pilot
Laboratory & Environmental Svcs Bldg
Outfall Line Construction
WQ‐19003
WQ‐16002
WQ‐22001
WQ‐14002
WQ‐19000
WQ‐10001
WQ‐19002
WQ‐14003
WQ‐19001
16,963,896
4,757,000
1,646,240 18,610,136
4,757,000
‐
‐
‐‐
2,510,000 2,510,000
10,582,80010,582,800
‐
10,582,800
Plant Master Plan ‐
‐
‐
‐
‐
‐
‐Plant Repair, Retrofit & Eqpt Replacement
Primary Sedimentation Tank Rehabilitation
Secondary Treatment Upgrades
6,452,642
2,628,000
3,822,494
45,410,305
6,578,007
257,036
351,529
346,221
3,271,900
‐
560,270
594,600
11,959,563
1,770,910
650,000
989,000
144,360
259,900
185,817
3,999,987
30,000
9,284,020
185,570,117
199,010,377
9,284,020
189,392,611
235,136,567
3,822,494
36,126,190526‐Wastewater Treatment Fund TOTAL
522‐Water Fund Seismic Water System Upgrade
Turnouts Regulator Station Improvement
Water Distribution System Improvement
Water Meters
Water Supply System Improvement
W‐G‐W Utility GIS Data
WS‐09000
WS‐07000
WS‐11003
WS‐80015
WS‐11004
WS‐02014
WS‐14001
WS‐15002
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
WMR‐Project 28
WMR‐Project 29
522‐Water Fund TOTAL
682‐Technology Fund City Council Chamber
Computer Aided Dispatch
Enterprise Resource
Infrastructure Management
Radio Infrastructure
TE‐19001
TE‐23000
TE‐19000
TE‐13004
TE‐05000
TE‐10001
‐
15,620
(50)
‐
Utilities Customer Billing 36,265
51,835
‐
682‐Technology Fund TOTAL
681‐Vehicle Fund Vehicle Replacement
Vehicle Replacement
Vehicle Replacement
Vehicle Replacement
VR‐20000
VR‐21000
VR‐22000
VR‐23000
20,000 ‐20,000
100,000
2,091,434
2,241,434
163,886,091
(100,000)
(1,329,022)
(1,429,022)
‐
762,412
812,412681‐Vehicle Fund TOTAL
GRAND TOTAL 36,223,039 200,109,130 66,255,533 203,461,342 269,716,875
Page 3 of 3