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HomeMy WebLinkAbout2026-05-05 Finance Committee Agenda PacketFINANCE COMMITTEE Special Meeting Tuesday, May 05, 2026 Community Meeting Room & Hybrid 9:00 AM Page Numbers Added Budget Books are Available at: https://www.paloalto.gov/budget (C: Capital Budget Book, O: Operating Budget Book)   Finance Committee meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/99227307235) Meeting ID: 992 2730 7235 Phone: 1(669)900-6833   PUBLIC COMMENTS General Public Comment for items not on the agenda will be accepted in person for up to three minutes or an amount of time determind by the Chair. General public comment will be heard for 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. Public comments for agendized items will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. Requests to speak will be taken until 5 minutes after the staff’s presentation or as determind by the Chair. Written public comments can be submitted in advance to city.council@PaloAlto.gov and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. Multiple individuals who wish to speak on the same item may designate a spokesperson. Spokespersons must be representing five or more verified individuals who are present either in person or via zoom. Spokespeople will be allowed up to 10 minutes, at the discretion of the presiding officer. Speaking time may be reduced if the presiding officer reduces the speaking time for individual speakers. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@PaloAlto.gov at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other types of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting.  1 May 05, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. CALL TO ORDER   PUBLIC COMMENT Members of the public may speak in-person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.   ACTION ITEMS   1.Fiscal Year 2027 Budget Overview & Strategies (9:00 AM - 10:15 AM) At Places Memo 2.Infrastructure and Environment: Capital Improvement Program, Capital Fund Projects (10:15 AM - 11:15 AM) a) Capital Improvement Fund (C:79-367) b) Cubberley Property Infrastructure Fund (C: 369-389) 3.Citywide Internal Support and Administration (11:15 AM – 12:00 PM) a) City Attorney’s Office (O:147-156) b) City Auditor’s Office (O:157-162) c) City Clerk’s Office (O:163-173) d) City Manager’s Office (Including Non-Profit Workplan Phase 1 Grants) (O:179- 193) e) City Council (O:175-178) f) Non-Departmental (O:517-523) LUNCH BREAK (12:00 PM - 1:00 PM)   3.Citywide Internal Support and Administration (continued) (1:00 PM - 1:45 PM) g) Administrative Services (including Printing & Mailing Fund) (O:195-217) i) General Liabilities Insurance Program (O:273-278) ii) Section 115 Trust iii) Debt Service Funds (O:135-144, C:71-76) h) Information Technology (O:285-298) i) Human Resources (O:259-284) i) General Fund (O:265-272) ii) Workers Compensation Fund (O:279-284) iii) General Benefits Fund (O:527-534) iv) Retiree Health Benefit Fund (O:535-560) 4.  2 May 05, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. Community and Library Services (1:45 PM – 3:30 PM) a) Community Services (O:219-243) b) Library (O:299-311) 5.Infrastructure and Environment - Operating (3:30 PM – 5:00 PM) a) Public Works: Operating (O:369-444) i) General Fund (O:377-390) ii) Airport Fund (O:391-399) iii) Refuse Fund (O:401-410) iv) Stormwater Management Fund (O:411-421) v) Vehicle Replacement and Maintenance Fund (O:423-432) vi) Wastewater Treatment Fund (O:433-444) b) Utilities: Operating (O:445-515) i) Electric Fund (O:453-467) ii) Fiber Optics Fund (O:469-476) iii) Gas Fund (O:477-490) iv) Wastewater Collection Fund (O:491-501) v) Water Fund (O:503-515) FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s)   ADJOURNMENT 1.Fiscal Year 2027 Budget Overview & Strategies (9:00 AM - 10:15 AM)    3 May 05, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@PaloAlto.gov. 2.For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3.Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. ◦You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. ◦You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. ◦When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. ◦When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4.Spoken public comments for agendized items using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 992-2730-7235 Phone: 1-669-900-6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329-2550 (voice) or by emailing ada@PaloAlto.gov. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.  4 May 05, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.  5 May 05, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. FINANCE COMMITTEE MEETING _______ [X] Placed Before Meeting [ ] Received at Meeting #1 City of Palo Alto MEMORANDUM To: Finance Committee Date: May 5, 2026 SUBJECT: Agenda Item #1: Additional Information Staff would like to provide the Finance Committee with additional information for the May 5 and May 6 FY 2027 Budget Hearing meetings. This material is supplemental in nature and does not reflect any recommended changes, it is for information and reference only. Information to Assist the Finance Committee During the Budget Review Process In previous years, the City Council has made a variety of requests to provide context and/or additional data points of reference to aid in budget deliberations. Staff has compiled these items to assist the Finance Committee’s review of the FY 2027 Proposed Budget documents. Capital Fund Reappropriation List City Council authorization is required for Capital funds to be carried forward from one fiscal year to the next (Palo Alto Municipal Code 2.28.090, amended September 2014). There are several opportunities for departments to request funds to be carried over from one fiscal year to the next. First, is the proposed budget process that the Finance Committee is reviewing. Departments may request funds to be carried over from one year to the next through the budget process. By estimating lower than budgeted expenditures in the current year (FY 2026), funds not anticipated to be spent in the current year but still required for the completion of the project are reflected in the first year (FY 2027) of the five-year CIP. The Fund Narrative for each fund indicates the total amount of reappropriations included in this budget. Second, refinements to reappropriation assumptions may be brought forward as part of the budget adoption by the City Council (scheduled June 15, 2026). Lastly, as part of the year-end closing actions anticipated to be brought forward for City Council approval in the Fall, all projects will be reviewed to determine if additional adjustments to reappropriations are required. Attachment A shows the reappropriated amounts by fund and by capital project estimated not to be spent in FY 2026 that are included in the proposed budget, the first opportunity listed above. These amounts are recommended to be reappropriated to FY 2027 to continue work on the projects and keep the total project budgets intact over the five-year CIP and are reflected in the FY 2027 Proposed Capital Budget. Docusign Envelope ID: 522FEF1E-3D99-4F69-85D8-51CAC72D450C Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 1  Packet Pg. 6 of 17  2 Additional Staffing Information – Vacancies, Recruitment, & Retention: Vacancy rates have decreased significantly, from a high of 17% in FY 2020, the peak of the global pandemic, to a current (March 2026) low of 10.67%, as adjusted by final stage recruitment full-time- equivalents (“FTE”). This decrease in vacancy rate can be attributed to several factors including the City’s focus on recruitment and being an employer of choice – ensuring a positive work environment as well as resetting target salaries and benefits for flexibility – that has positively impacted employee retention. Other meaningful factors include an improved methodology to adjust for positions in the final stages of recruitment, such as those with offers of employment accepted, which are now more accurately reported as filled. However, the pipeline continues to be highly competitive within specialized markets and industries, such as Engineers and Water Treatment Plant positions in which the City competes for staff with the abilities to meet Palo Alto’s high expectations. Vacancy Report: A list of full-time (benefitted) positions that are vacant throughout the City is detailed in Attachment B. This attachment includes the position title, hiring status, and the distribution of the position allocation by fund. Summary Comparison of Vacancies Citywide April 2023 - March 2026 Vacancies Adjusted Vacancies Adjusted Vacancies Adjusted 2026 Adjusted 64.68 557.56 77.14 587.06 56 602,57 59 613.97 66.45 371.58 52.10 380.58 53 391,43 53.5 396.88 12.12 94.46 8.76 96.46 14 98.10 13 99.50 Citywide Vacancy Rate 14.0% 13.0% 11.13% 11.30% Recruitment Final Stage* w/ recruitment * As indicated in Attachment B “status”, 7 FTE current vacancies are in the final stages of recruitment and can be considered filled. Assuming these positions are filled as anticipated, the citywide vacancy rate would be 10.67%. Factors Impacting Vacancy Rate (Turnover, New Positions, Promotions): The citywide vacancy rate is impacted by three key components (1) total number of positions, (2) total number of separations, including promotions, (3) total number of new hires. Each of these dynamic factors impact the vacancy rate. The City continued to invest in services in FY 2026, which necessitated the addition of new positions. While new positions add to the overall vacancy rate until positions can be recruited and filled, the vacancy rate has stabilized by slowing down the turnover rate and overall, improving the City’s recruitment and retention strategy. The increase in the number of department HR Liaisons (HRLs) assisting with recruiting, streamlining the pre-onboarding process, and hiring a Recruitment Manager to improve oversight and responsiveness for hiring decisions has resulted in this positive outcome to attract and retain top talent. Docusign Envelope ID: 522FEF1E-3D99-4F69-85D8-51CAC72D450C Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 2  Packet Pg. 7 of 17  3 Recruitment & Retention Activities Underway: Looking forward, City management will continue to closely manage vacancies seeking efficiencies where possible. In FY 2027 the City will continue to invest in advancing organizational resilience by continuing to implement a multiyear workforce recruitment strategic plan which includes continuing HRL and staff training, and further system integrations between the City’s applicant tracking system, onboarding system, and Enterprise Resource Planning system. This complements the City's positive work environment initiatives in the areas of professional development, career advancement/continuity planning, wellness and belonging. These initiatives build upon the success in improving employee retention, resulting in the reduction of year-over-year turnover rates, which aids in lowering the vacancy rate. The table below reflects the decrease in turnover during the past five years. General Fund Vacancy Rates and Savings: The vacancy rate for the General Fund as of March 2026 is 9.60% (59 vacancies to 613.97 FTE) or 8.63% when adjusted for final stage recruitments. Vacancy savings from Public Safety positions are typically exhausted by uses such as backfill, hire ahead programs, and overtime. Adjusting for Public Safety and final stage recruitments, the General Fund has a vacancy rate of 6.48% and budgeted vacancy savings of approximately 5%. Throughout the year vacancy savings are utilized by operating departments to deliver services and/or complete projects. Some illustrative examples of vacancy savings use include filling staffing gaps by contracting for professional services, hiring ahead for technical positions to allow overlap and smooth transitions, and supporting a robust summer internship program. It is important to consider that even if positions are vacant, there are still associated costs. For example, the City contributes to proactive retirement funding and is responsible for the Unfunded Accrued Liability (UAL) allocated to that position regardless of whether the position is filled. At the direction of the Council these costs are administratively allocated by position, which means that even if the position is vacant, the full budgeted cost will not result in savings to the City. Docusign Envelope ID: 522FEF1E-3D99-4F69-85D8-51CAC72D450C Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 3  Packet Pg. 8 of 17  4 Service Provider Spend Report for FY 2023, FY 2024, FY 2025 and Year-to-Date FY 2026 Attachment C is a list of service providers where the City spent more than $1 million between FY 2023 through FY 2026 (year-to-date). Lauren Lai Ed Shikada Docusign Envelope ID: 522FEF1E-3D99-4F69-85D8-51CAC72D450C Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 4  Packet Pg. 9 of 17  Attachment A: Capital Improvement Plan FY 2026 Reappropriations to FY 2027 Fund Project Title Proj. No. Reappropriation 471 - Capital Improvement Fund Americans With Disabilities Act Compliance PF-93009 450,000 Animal Shelter Renovation PE-19002 2,145,239 Art In Public Spaces AC-86017 1,745,398 Baylands Comprehensive Conservation Plan PG-17000 43,000 Baylands Levee Repair for Public Safety Access OS-09002 29,210 Bicycle and Pedestrian Transportation Plan Implementation PL-04010 435,000 86,300 Building Systems Improvements PF-01003 246,030 California Avenue Streetscape Update PL-23000 241,000 Churchill Avenue Enhanced Bikeway PL-14000 256,000 1,878,328 Civic Center Electrical Upgrade & EV Charger Installation PE-17010 1,351,085 174,000 Civic Center Fire Life Safety Upgrades PE-18016 324,997 Civic Center Waterproofing Study and Repairs PE-15020 941,037 Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equip.PL-15002 32,898 Electric Charger Infrastructure Installation PF-23000 436,857 Electrification of City Facilities PE-24001 626,179 Fire Station 4 Replacement PE-18004 2,349,248 Fire Training Facility Replacement FD-24000 49,988 Foothills Nature Preserve Dam Seepage Investigation and Repairs PE-20000 100,144 Foothills Nature Preserve Improvements PE-21000 494,646 Johnson Park Renovation PE-21002 25,000 Library Automated Material Handling LB-21000 329,248 Lucie Stern Community Theater Mechanical Equipment Replacement PE-24002 1,949,713 Lucie Stern Community Theatre Fire Curtain AC-24001 200,000 Mitchell Park Community Center Audio Visual Equipment AC-26000 340,000 Municipal Service Center Lighting, Mechanical, and Electrical Improvements PF-16006 6,165,504 New California Avenue Area Parking Garage PE-18000 997,012 New Downtown Parking Garage PE-15007 12,896,981 12,896,981 New Public Safety Building PE-15001 978,087 Newell Road/San Francisquito Creek Bridge Replacement PE-12011 976,810 10,268,732 Off-Road Pathway Resurfacing And Repair OS-09001 170,000 Park and Open Space Emergency Repairs PG-09002 43,779 Park Restroom Installation PG-19000 319,704 319,704 Parking District Implementation PL-15003 193,900 Performing Arts Venues Seat Replacement AC-18000 108,023 Railroad Grade Separation and Safety Improvements PL-17001 1,999,819 2,093,843 Rinconada Park Improvements PE-08001 101,150 Rinconada Pool Family Changing Room PE-24004 1,158,326 Robles Park Improvements PE-18015 891,958 Roofing Replacement PF-00006 300,000 San Francisquito Creek Joint Powers Authority Ongoing Creek Projects PE-22000 54,521 Traffic Signal and Intelligent Transportation Systems PL-05030 1,350,000 800,000 University Avenue Parking Improvements PF-14003 103,527 University Avenue Streetscape Update PE-21004 1,946,000 Mitchell Park Library Repair PE-24006 50,000 Palo Alto Art Center Ceramics Equipment AC-28003 68,527 Fire Equipment Replacement FD-25000 279,908 262,557 California Avenue Parking District Parking Improvements PF-25000 50,000 50,000 Baylands Interpretive Signage Program OS-24001 34,163 34,163 Meadow Drive and Charleston Road Rail Grade Separation and Safety Improvements PL-24000 1,593,463 1,197,619 Charleston Road/Alma Street Railroad Crossing Safety Improvements PL-25002 682,400 713,248 Churchill Avenue Rail Grade Separation and Safety Improvements PL-24001 658,835 2,000,000 Children's Theatre Facility Upgrade/Repair AC-28002 125,000 Charging Stations Repair and Maintenance PF-26001 92,349 Ramona Street Streetscape Update PE-26002 139,328 PAAC Auditorium Audio Visual Equipment and Facility Public Announcement System AC-26001 165,506 Parking Infrastructure Improvements PL-12000 200,000 Congestion Relief Projects PL-25001 400,000 400,000 Emergency Gate at Foothill and Miranda PE-26003 50,000 471 - Capital Improvement Fund Total 50,486,497 33,175,475 472 - Cubberley Property Infrastructure Fund Cubberley Community Center Redevelopment CB-26000 305,061 Cubberley Repairs CB-17001 100,000 472 - Cubberley Property Infrastructure Fund Total 405,061 523 - Electric Fund Grid Modernization for Electrification EL-24000 12,762,653 39,240,000 Inter-substation Line Protection Relay EL-17005 645,333 Smart Grid Technology Installation EL-11014 268,098 Substation Facility Improvements EL-89044 974,866 Underground System Rebuild EL-16001 612,910 Hanover Substation Upgrade Project EL-24001 2,957,140 Colorado 60kV Bus Rebuild EL-17002 3,498,849 Colorado Transformer #3 Replacement EL-19001 3,780,000 523 - Electric Fund Total 25,499,849 39,240,000 533 - Fiber Optics Fund Fiber Optics Network - System Improvements FO-10001 43,310 Fiber Optics Network - System Rebuild FO-16000 2,948,211 Fiber-to-the-Premises (FTTP)FO-24000 7,501,748 533 - Fiber Optics Fund Total 10,493,269 524 - Gas Fund Gas Distribution System Improvements GS-11002 758,910 Gas Main Replacement - Project 25 GS-15000 5,138,088 7,500,000 Gas Main Replacement - Project 26 GS-16000 2,002,190 Docusign Envelope ID: 522FEF1E-3D99-4F69-85D8-51CAC72D450C Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 5  Packet Pg. 10 of 17  Attachment A: Capital Improvement Plan FY 2026 Reappropriations to FY 2027 Fund Project Title Proj. No. Expense Reappropriation GS-80019 198,910 Gas Line Repair at Arastradero Creek GS-25001 143,916 524 - Gas Fund Total 8,242,014 7,500,000 528 - Stormwater Management Fund Corporation Way System Upgrades and Pump Station SD-21000 201,333 Green Stormwater Infrastructure SD-22001 1,030,250 1,030,250 Storm Drainage System Replacement And Rehabilitation SD-06101 882,265 West Bayshore Road Trunk Line Improvements SD-23000 19,236 Center Drive Capacity Upgrades SD-26001 65,200 Hamilton Avenue System Upgrades SD-25000 98,292 528 - Stormwater Management Fund Total 2,296,576 1,030,250 527 - Wastewater Collection Fund Sewer Lateral/Manhole Rehabilitation and Replacement WC-99013 927,852 Wastewater Collection System Rehabilitation/Augmentation Project 32 WC-20000 334,530 527 - Wastewater Collection Fund Total 1,262,382 526 - Wastewater Treatment Fund Headworks Facility Replacement WQ-16002 2,988,974 2,988,974 New Laboratory And Environmental Services Building WQ-14002 15,166,602 15,166,602 Outfall Line Construction WQ-19000 10,593,300 10,582,800 Secondary Treatment Upgrades WQ-19001 1,112,320 1,112,320 Local Advanced Water Purification System WQ-19003 1,000,000 1,000,000 526 - Wastewater Treatment Fund Total 30,861,196 30,850,696 522 - Water Fund Water Distribution System Improvements WS-11003 96,300 Water Main Replacement - Project 30 WS-16001 4,366,839 Water Meters WS-80015 154,630 Water Service and Hydrant Replacement WS-80014 50,000 Water System Supply Improvements WS-11004 1,061,540 Water Tank Seismic Upgrade and Rehabilitation WS-09000 100,000 522 - Water Fund Total 5,829,309 682 - Technology Fund City Council Chambers Upgrade TE-19001 1,641,440 Computer Aided Dispatch (CAD) Upgrade TE-23000 126,841 Enterprise Resource Planning Upgrade TE-19000 894,907 Infrastructure Management System TE-13004 365,281 IT Data Center Upgrade TE-25000 980,000 682 - Technology Fund Total 4,008,469 681 - Vehicle Replacement & Maintenance Fund Scheduled Vehicle and Equipment Replacement - Fiscal Year 2024 VR-24000 1,987,783 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2025 VR-25000 625,812 681 - Vehicle Replacement & Maintenance Fund Total 2,613,595 Docusign Envelope ID: 522FEF1E-3D99-4F69-85D8-51CAC72D450C Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 6  Packet Pg. 11 of 17  Department Name Position Name Enterprise Funds General Funds Other Funds Total Recruitment Status Administrative Services Department Account Specialist 1 1 Posted Administrative Services Department Accountant 1 1 Filled Administrative Services Department Senior Buyer 1 1 To Be Determined Administrative Services Department Manager Treasury, Debt & Investments 1 1 Hiring Review in Progress Administrative Services Department Management Analyst 1 1 Hiring Review in Progress Administrative Services Department Manager Revenue Collections 1 1 Proposed for Elimination Administrative Services Department Accounting Specialist-Lead 1 1 Posted Administrative Services Department Accounting Specialist 0.50 0.50 To Be Determined Administrative Services Department Senior Management Analyst 1 1 Posting in progress Administrative Services Department Management Analyst 1 1 Proposed for Elimination City Manager's Office Executive Assistant to the City Manager 1 1 Filled Community Services Department Prd Arts/Sci Prgm 1 1 Filled Community Services Department Parks Mainentance Lead 1 1 Proposed for Elimination Community Services Department Program Assistant II 1 1 Proposed for Elimination Community Services Department Coord Rec Prog 1 1 Posting in progress Fire Department EMS Manager 1 1 Proposed Frozen Position Fire Department Single Role EMT (non-sworn)1 1 Hiring Review in Progress Fire Department Single Role EMT (non-sworn)1 1 Hiring Review in Progress Fire Department Single Role Paramedic (non-sworn)1 1 Hiring Review in Progress Fire Department Deputy Fire Chief-EMT 1 1 Posted Fire Department Administrative Associate III 1 1 Interview in progress Fire Department Fire Fighter Hazmat EMT Shft 1 1 To Be Determined Fire Department Fire Fighter Trainee 1 1 Proposed for Elimination Fire Department Fire Fighter Trainee 1 1 Proposed for Elimination Fire Department Fire Inspector EMT 1 1 Posting in progress Fire Department Hazardous Materials Inspector EMT 1 1 Posting in progress Human Resources Department Human Resources Technician 1 1 Proposed for Elimination Human Resources Department Human Resources Technician 1 1 Filled Information Technology Department Manager of Information Technol 1 1 Proposed for Elimination Information Technology Department Manager of Information Technol 1 1 Proposed Frozen Position Information Technology Department Sr Technologist 1 1 To Be Determined Library Services Department Management Analyst 1 1 Offer in progress Library Services Department Sr. Business Analyst 1 1 Posting in progress Library Services Department Sr Librarian 1 1 Posting in progress Library Services Department Library Associate 1 1 Proposed for Elimination Library Services Department Library Associate 1 1 Interview in progress Library Services Department Sr Librarian 1 1 Posting in progress Library Services Department Sr Librarian 1 1 Proposed for Elimination Office of Transportation Project Engineer 1 1 Filled Office of Transportation Administrative Assistant 1 1 Interview in progress Office of Transportation Associate Engineer 1 1 Offer in progress Office of Transportation Senior Planner 1 1 Interview in progress Office of Transportation Assoc Planner 1 1 Interview in progress Planning and Development Services Technologist 1 1 Interview in progress Planning and Development Services Administrative Associate III 1 1 Offer in progress Planning and Development Services Planner 1 1 Proposed for Elimination Planning and Development Services Planner 1 1 Proposed for Elimination Planning and Development Services Senior Planner 1 1 Proposed for Elimination Planning and Development Services Principal Planner 1 1 Posted Police Department Police Officer-Inter 1 1 Posted Police Department Police Sergeant/Advance 1 1 Hiring Review in Progress Police Department Police Officer-Inter 1 1 Posted Police Department Police Officer-Inter 1 1 Filled Police Department Police Officer-Inter 1 1 Posted Police Department Police Officer-Inter 1 1 Posted Police Department Public Safety Dispatcher - II 1 1 Posted Police Department Public Safety Dispatcher - II 1 1 Posted Police Department Police Officer-Adv Bilingual 1 1 Posted Police Department Police Officer 1 1 Posted Police Department Community Service Officer 1 1 Proposed for Elimination Police Department Police Officer-Inter 1 1 Posted Police Department Police Officer-Inter 1 1 Posted Public Works Department Administrative Assistant 1 1 Hiring Review in Progress Public Works Department Administrative Associate II 1 1 Proposed for Elimination Police Department City Manager's Office Community Services Department Fire Department Human Resources Department Information Technology Department Library Services Department Office of Transportation Planning and Development Services Public Works Department Attachment B: Vacancy Report as of March 2026 Docusign Envelope ID: 522FEF1E-3D99-4F69-85D8-51CAC72D450C Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 7  Packet Pg. 12 of 17  Department Name Position Name Enterprise Funds General Funds Other Funds Total Recruitment Status Public Works Department Architect/Pk Planner 1 1 Interview in progress Public Works Department Assitant Fleet Manager 1 1 Interview in progress Public Works Department Assitant Manager WQCP 1 1 Offer in progress Public Works Department Electrician 1 1 Posting in progress Public Works Department Electrician 1 1 Posting in progress Public Works Department Electrician 1 1 Posting in progress Public Works Department Engineer 1 1 Proposed for Elimination Public Works Department Equipment Maintenance Svcs Per 1 1 Hiring Review in Progress Public Works Department Ind Waste Invtgtr 1 1 Hiring Review in Progress Public Works Department Inspector, Field Svc 1 1 Hiring Review in Progress Public Works Department Instrumentation Electrician 1 1 To Be Determined Public Works Department Management Assistant 1 1 Interview in progress Public Works Department Mgr Maint Ops 1 1 Proposed for Elimination Public Works Department Motor Equip Mech - II 1 1 Hiring Review in Progress Public Works Department Sr Chemist 1 1 Filled Public Works Department Sr Operator WQC 1 1 Interview in progress Public Works Department Sr Operator WQC 1 1 Interview in progress Public Works Department St Maint Asst 1 1 Hiring Review in Progress Public Works Department St. Maint. Asst 1 1 Hiring Review in Progress Public Works Department Tree Trim/Ln Clr 1 1 Proposed for Elimination Public Works Department Tree Trim/Ln Clr-L 1 1 Posting in progress Public Works Department WQC Plant Operator II 1 1 Posting in progress Public Works Department WQC Plt Oper II 1 1 Posting in progress Utilities Department Mgr Util Telecommunications 1 1 Proposed Frozen Position Utilities Department Asst Dir Util Customer Support Svcs 1 1 Proposed Frozen Position Utilities Department Utility Marketing Program Administrator 1 1 Interview in progress Utilities Department Utilities Marketing Program Admin 1 1 Hiring Review in Progress Utilities Department Utilities Marketing Program Admin 1 1 Interview in progress Utilities Department Administrative Associate II 1 1 To Be Determined Utilities Department Sr Mkt Analyst 1 1 Hiring Review in progress Utilities Department Project Engineer 1 1 Posted Utilities Department Project Engineer 1 1 Offer in progress Utilities Department Util Engr Estimator 1 1 Offer in progress Utilities Department Sr. Resource Planner 1 1 Interview in progress Utilities Department Assistant Director Utilities Operations 1 1 Posting in progress Utilities Department OH UG Troubleman 1 1 To Be Determined Utilities Department OH UG Troubleman 1 1 To Be Determined Utilities Department Substation Electrician 1 1 To Be Determined Utilities Department Util Comp Tech-L 1 1 To Be Determined Utilities Department Lineper/Cable Spl-L 1 1 Filled via Promotion Utilities Department Electric Heavy Equip Oper 1 1 Posted Utilities Department Elec Util Compliance Technicia 1 1 Posted Utilities Department Util Fld Svcs Rep 1 1 Filled via Promotion Utilities Department Lineper/Cable Spl 1 1 Interview in progress Utilities Department Lineper/Cable Spl 1 1 Interview in progress Utilities Department Lineper/Cable Spl-L 1 1 To Be Determined Utilities Department Util Comp Tech 1 1 Hiring Review in progress Utilities Department Maintenance Mechanic Welding 1 1 Posting in progress Utilities Department Maintenance Mechanic Welding 1 1 Offer in progress Utilities Department Cement Finisher 1 1 Posting in progress Utilities Department Equipment Operator 1 1 Hiring Review in progress Utilities Department Util Install/Rep-L 1 1 Posting In progress Utilities Department HEO/Installer Repairer 1 1 Offer in progress Utilities Department Util Install/Rep - Welding 1 1 Posting in progress Utilities Department HEO/Installer Repairer 1 1 Posting in progress Utilities Department Util Install/Rep 1 1 Offer in Progress Utilities Department Meter Reader 1 1 Proposed for Elimination Utilities Department Meter Reader-Lead 1 1 Proposed for Elimination Utilities Department Meter Reader 1 1 Proposed for Elimination Utilities Department Meter Reader 1 1 Proposed for Elimination Utilities Department Senior Electrical Engineer 1 1 Posting in progress Utilities Department Senior Engineer - U 1 1 Filled via Promotion Grand Total 53.5 59 13 125.50 Utilities Department Attachment B: Vacancy Report as of March 2026 Docusign Envelope ID: 522FEF1E-3D99-4F69-85D8-51CAC72D450C Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 8  Packet Pg. 13 of 17  Largest Vendor Payments by Fiscal Year (All Funds) Includes Check, ACH, and most related wire payments (excludes top dollar for commodity purchases). Excludes payroll garnishments and P-card payments. *Data as of April 22, 2026 VENDOR NAME FY 2023 FY 2024 FY 2025 FY 2026*TOTAL ANDERSON PACIFIC ENGINEERING 12,482,352$ 63,681,977$ 42,331,135$ 42,520,179$ 161,015,643$ SWINERTON BUILDERS 34,858,530 14,807,454 4,236,589 1,221,660 55,124,233 AUTHORITY FOR CA CITIES EXCESS LIABILITY 3,731,516 4,505,690 5,002,011 6,679,037 19,918,254 CRATUS INC 3,281,899 10,672,679 3,840,800 - 17,795,379 O'GRADY PAVING INC 4,653,097 3,840,945 5,296,691 3,887,284 17,678,018 MP NEXLEVEL OF CALIFORNIA INC 2,612,140 3,825,663 4,138,041 3,382,430 13,958,275 SENSUS USA INC 2,400,610 5,826,794 4,656,897 715,339 13,599,641 VIP POWERLINE CORP - 1,756,961 6,335,455 5,471,900 13,564,316 PALO ALTO UNIFIED SCHOOL DISTRICT 3,063,609 3,623,060 3,299,619 2,413,412 12,399,700 THE DAVEY TREE SURGERY COMPANY 3,573,774 3,492,802 4,486,411 819,656 12,372,644 C. OVERAA & CO 6,090,607 3,921,656 2,019,673 - 12,031,936 THOMAS J BRANDI - - 12,000,000 - 12,000,000 OB SPORTS GOLF MANAGEMENT (BAYLANDS) LLC 3,184,540 3,068,513 3,237,725 2,501,143 11,991,921 CAROLLO ENGINEERS INC 699,653 2,282,348 4,460,950 4,379,195 11,822,147 SWA SERVICES GROUP INC 2,365,966 2,851,251 3,180,687 2,908,538 11,306,443 SAK CONSTRUCTION LLC - - 3,311,030 7,554,939 10,865,968 DALEO INC 2,443,532 2,083,985 5,578,212 399,274 10,505,003 PALO ALTO HISTORY MUSEUM - 4,777,772 3,920,991 500,000 9,198,763 STATE WATER RESOURCES CONTROL BOARD 2,486,524 2,512,076 2,519,293 1,623,988 9,141,882 CHICAGO TITLE - - - 8,246,918 8,246,918 BRIGHTVIEW LANDSCAPE SERVICES INC 1,320,835 1,963,288 2,136,411 2,130,476 7,551,011 RANGER PIPELINES INC 7,306,584 123,778 - - 7,430,363 WEST COAST ARBORISTS INC 1,206,142 1,347,977 1,327,379 1,517,973 5,399,470 ONESOURCE SUPPLY SOLUTIONS LLC/ONESOURCE DISTRIBUTORS LLC 894,025 902,398 2,555,335 1,027,744 5,379,503 SCA OF CA LLC 1,043,522 1,498,540 1,467,100 1,244,401 5,253,564 GRANITE CONSTRUCTION CO INC - - - 93,266 4,723,839 HOT LINE CONSTRUCTION INC 3,008,291 1,665,130 - - 4,673,421 OBS ENGINEERING INC - 1,755,208 2,669,348 234,631 4,659,188 TEICHERT CONSTRUCTION 3,666,969 894,133 - - 4,561,101 PETS IN NEED 636,902 1,428,633 1,376,850 1,072,239 4,514,623 BENINK & SLAVENS LLC - 1,444,759 2,889,519 - 4,334,278 COUNTY OF SANTA CLARA, VARIOUS DEPTS 857,686 842,347 1,126,177 1,485,357 4,311,567 ALLIANT INSURANCE SERVICES INC 724,583 1,103,113 1,136,550 1,265,087 4,229,333 COOPER POWER SYSTEMS LLC - - 1,164,138 3,054,518 4,218,657 NOMAD TRANSIT LLC 310,133 1,826,266 1,306,059 729,023 4,171,482 LYSTEK INTERNATIONAL LIMITED 877,906 712,595 1,299,212 1,001,214 3,890,927 SYNAGRO WWT INC 460,000 520,592 1,455,695 1,324,382 3,760,668 PARKING GUIDANCE SYSTEMS LLC - 954,388 2,356,262 441,151 3,751,801 STATE OF CALIFORNIA, VARIOUS DEPTS 814,232 900,881 1,218,425 1,318,682 4,252,220 INSIGHT PUBLIC SECTOR INC 750,418 784,542 919,427 643,527 3,611,769 EMANUEL LAW GROUP, A PROFESSIONAL CORP - - 3,600,000 - 3,600,000 EAGLE SYSTEMS INTERNATIONAL INC 95,008 1,284,238 1,525,660 597,667 3,502,573 G BORTOLOTTO & COMPANY INC - - - 3,250,595 3,250,595 MCCANDLESS LIMITED LLC 820,353 833,131 871,387 678,810 3,203,681 NAPA AUTO PARTS 625,466 776,427 814,585 984,244 3,200,722 4LEAF INC 981,891 856,908 745,027 527,663 3,111,489 BADGER METER INC 224,190 2,654,901 195,521 9,695 3,084,306 FIELDTURF USA INC - - - 3,031,770 3,031,770 LIFEMOVES 123,820 2,237,009 412,033 242,329 3,015,191 TECHLINK SYSTEMS INC 693,112 1,021,054 1,085,330 136,648 2,936,143 PRISM 544,155 663,436 786,563 868,518 2,862,672 VALLEY OIL COMPANY 802,220 791,304 656,301 611,684 2,861,509 WOODARD & CURRAN INC 618,898 814,162 767,713 599,552 2,800,325 LIFE INSURANCE OF NORTH AMERICA 693,420 775,164 680,866 556,483 2,705,933 ALL CITY MANAGEMENT SERVICES INC 593,133 684,804 778,292 647,834 2,704,064 BAKER TILLY US LLP/BAKER TILLY ADVISORY GROUP LP 658,178 292,080 1,213,788 479,034 2,643,080 MAGELLAN ADVISORS LLC 833,866 1,226,712 519,863 - 2,580,441 285 HAMILTON LLC 622,786 686,536 741,813 519,379 2,570,514 NOVA PARTNERS INC 1,101,704 969,876 387,164 - 2,458,744 EPI-USE LABS LLC 746,834 621,237 615,957 465,489 2,449,517 DASHER TECHNOLOGIES INC 603,681 365,240 670,634 765,700 2,405,254 GRAHAM CONTRACTORS INC - - 1,463,071 - 2,395,654 SAFEBUILT LLC 740,421 760,983 441,266 388,099 2,330,769 Attachment C Docusign Envelope ID: 522FEF1E-3D99-4F69-85D8-51CAC72D450C Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 9  Packet Pg. 14 of 17  VENDOR NAME FY 2023 FY 2024 FY 2025 FY 2026*TOTAL JJR CONSTRUCTION INC - - 1,595,400 735,081 2,330,482 PALO ALTO COMMUNITY CHILD CARE 546,472 707,392 594,353 451,540 2,299,757 CLEARESULT CONSULTING INC 299,771 688,660 779,050 478,388 2,245,869 AVENIDAS 443,144 632,462 613,277 549,312 2,238,195 TMT ENTERPRISES INC 566,151 555,993 763,199 288,242 2,173,584 ANIXTER INC 557,446 490,864 775,524 336,465 2,160,298 SAN FRANCISQUITO CREEK JOINT POWERS 395,926 472,763 350,935 933,097 2,152,722 CARAHSOFT TECHNOLOGY CORP 138,892 246,875 397,785 1,184,949 1,968,501 CASEY CONSTRUCTION INC 660,216 1,039,111 267,007 - 1,966,334 COMMUNITY TREE SERVICE LLC - - - 1,886,884 1,886,884 GOLDEN BAY CONSTRUCTION INC 486,345 921,060 469,287 - 1,876,692 RINCON CONSULTANTS INC 600,694 527,820 406,753 336,665 1,871,932 BROWN AND CALDWELL 594,542 518,444 385,157 296,805 1,794,948 BLACK & VEATCH CORPORATION 526,685 222,907 487,705 513,148 1,750,445 THE PELOTON ALLIANCE 391,532 539,744 443,552 358,434 1,733,262 ACCURATE STRUCTURAL INC 511,879 961,206 208,379 21,784 1,703,249 MOMENTUM FOR HEALTH - 620,033 1,050,511 - 1,670,544 LAZ KARP ASSOCIATES LLC 298,093 462,270 701,193 145,143 1,606,699 BKF ENGINEERS 210,280 340,872 745,353 296,058 1,592,563 DENALI WATER SOLUTIONS LLC 733,229 703,754 150,781 - 1,587,763 GRANITE ROCK COMPANY 181,061 422,382 542,632 402,650 1,548,725 C&S ENGINEERS INC 695,848 695,677 138,252 15,553 1,545,330 BAY AREA WATER SUPPLY 386,305 390,004 423,251 322,551 1,522,110 1900 EMBARCADERO PROPERTY OWNER LP 342,920 366,322 424,715 378,310 1,512,267 CITY OF MENLO PARK 540,673 373,665 336,321 224,475 1,475,133 GOLDEN GATE SYSTEMS LLC 110,798 357,061 436,196 559,574 1,463,629 NATIONAL AUTO FLEET GROUP 486,355 646,720 59,308 269,004 1,461,386 STANFORD UNIVERSITY 148,959 616,882 410,134 278,847 1,454,822 MONTEREY MECHANICAL 260,377 536,701 15,513 635,238 1,447,829 TRB AND ASSOCIATES INC 241,028 409,185 593,860 137,026 1,381,098 THE OKONITE COMPANY 113,926 521,418 672,886 60,875 1,369,104 EMERALD TRANSFORMER 2,725 7,332 1,143,702 206,965 1,360,723 ACCELA INC 206,379 362,739 380,876 399,919 1,349,913 HITACHI ENERGY USA INC - 298,130 1,050,755 - 1,348,884 HARRIS COMPUTER SYSTEMS 368,009 405,408 321,928 232,493 1,327,838 GRAND TOTAL 144,426,920$ 202,579,027$ 196,516,741$ 147,657,514$ 697,257,213$ Attachment C Docusign Envelope ID: 522FEF1E-3D99-4F69-85D8-51CAC72D450C Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 10  Packet Pg. 15 of 17  Certificate Of Completion Envelope Id: 522FEF1E-3D99-4F69-85D8-51CAC72D450C Status: Completed Subject: Complete with Docusign: 5-5-26 FC At Place Memo.pdf Source Envelope: Document Pages: 10 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Alyssa Ching AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 alyssa.ching@paloalto.gov IP Address: 2600:1702:75f1: Record Tracking Status: Original 5/4/2026 5:01:28 PM Holder: Alyssa Ching alyssa.ching@paloalto.gov Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Signer Events Signature Timestamp Lauren Lai Lauren.Lai@paloalto.gov Director Administrative Services/CFO COPA Security Level: Email, Account Authentication (None) Signature Adoption: Drawn on Device Using IP Address: 170.85.54.117 Sent: 5/4/2026 5:02:11 PM Viewed: 5/4/2026 5:07:50 PM Signed: 5/4/2026 5:08:39 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Ed Shikada ed.shikada@paloalto.gov City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 170.85.54.89 Sent: 5/4/2026 5:08:43 PM Viewed: 5/4/2026 5:10:26 PM Signed: 5/4/2026 5:14:57 PM Electronic Record and Signature Disclosure: Not Offered via Docusign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 5/4/2026 5:02:11 PM Certified Delivered Security Checked 5/4/2026 5:10:26 PM Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 11  Packet Pg. 16 of 17  Envelope Summary Events Status Timestamps Signing Complete Security Checked 5/4/2026 5:14:57 PM Completed Security Checked 5/4/2026 5:14:57 PM Payment Events Status Timestamps Item 1 Item 1 At Places Memo        Item 1: Staff Report Pg. 12  Packet Pg. 17 of 17