CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report

March 21, 2018

ORDERS OF BUSINESS

TO: Honorable Mayor and City Council Members

SUBMITTED BY: Robert Harary, Public Works Director and Sharon Friedrichsen, Director of Budget and
Contracts
APPROVED BY: Chip Rerig, City Administrator

Receive a presentation on the proposed Fiscal Year 2018-2019 capital improvement program
SUBJECT:
and provide direction to staff

RECOMMENDATION:

Receive a presentation on the proposed Fiscal Year 2018-2019 capital improvement program and provide
direction to staff.
BACKGROUND/SUMMARY:

The purpose of this report is twofold: (1) to update Council on the status of existing capital improvement
projects funded in Fiscal Year (FY) 2017-2018 and (2) to present capital improvement projects and funding
options for FY 2018-2019. Specifically, as development of the FY 2018-2019 budget is underway, staff seeks
Council guidance regarding prioritization of projects and funding parameters. After receiving direction from
Council, staff will return with a draft Capital Improvement Plan for Council's final review.

FISCAL YEAR 2017-2018 PROJECTS

Completed Projects
Rebuilding the foundation, including repairs of critical infrastructure, enhancements to customer service, and
investments in information technology and financial systems, all provide the backdrop to the current FY 2017-
2018 capital and operational budget. Twelve (12) projects, totalling nearly $1,300,000, were completed, or will
be substantially complete by June 30, 2018 including:

Improvements to Efficiencies, Governance, Transparency, and Communication: We implemented a new

agenda and records management system, migrated to a new telephone system, made additional
improvements to the Council Chamber’s audio/visual system, and will soon launch the City’s new website.
In addition, the City migrated to a new, cloud-based financial system that includes enhanced analysis for
expenditures, reporting, and purchasing.

Enhancements to the health and safety of employees, residents, and visitors: We replaced and upgraded
the vehicle exhaust ventilation system in the fire station, purchased a new patrol car, and installed a license
 plate recognition system to assist with parking enforcement.

Repairs of critical infrastructure: We reconstructed or resurfaced 11 mostly residential streets,

reconstructed weather-related damage to the Junipero Avenue and Fifth Avenue storm drain, repaired
segments of damaged sidewalks, and installed the irrigation connection at 4th Avenue allowing recycled
water to be used to irrigate the adjacent pathway.

Projects In Progress and On Track

Thirteen (13) FY 2017-2018 projects are underway and are anticipated to be completed early in FY 2018-2019.
Staff will return to Council once the current fiscal year closes on June 30, 2018 to request re-allocation
(“carryovers”) of remaining funds to complete these projects. No additional funding are anticipated for these
projects, which include:

Police Department Renovation Design ($250,000)

Main and Park Branch Libraries’ HVAC Systems (2 bundled projects, $121,000)
ADA Transition Plan ($100,000)
Encryption Radios ($63,000)
Wireless Indoor Internet Access ($32,000)
Ocean Avenue Median Lighting ($30,000)
Pavement Management Program Update ($20,000)
Mission Trail Nature Preserve Improvements ($25,000 Monterey Peninsula Regional Park District grant)
Fifth Avenue Storm Drain ($576,000 budget, see discussion under Table 1 below)
FY 2017-2018 Citywide Pavement Rehabilitation Project, which includes paving, sidewalk, drainage and
Lincoln and 3rd cul-de-sac project (Contract for $2,180,000)

In Progress and Likely to Need Additional Funding

Six (6) FY 2017-2018 capital projects are currently underway; however, staff anticipates that these projects will
require additional funding in order to be completed. If Council approves these projects, it is likely that Measure
D Reserves will be the source of the supplemental funding. While the amount of additional funding that will be
needed is an estimate at this time, any supplemental funding will utilize funding that would otherwise be available
for new FY 2018-2019 projects.

As shown in Table 1 (Attachment 1), Project Supplemental Appropriation Requests , Council authorized a
transfer of up to $850,000 in Measure D Reserves for the City-wide Pavement Rehabilitation Project on March
6, 2018. Once other restricted funds, such as State gas taxes, for street projects are used, the actual amount of
Measure D Reserves is now estimated to be closer to $755,000. If an additional $345,000 is used to
supplement budgets for existing capital projects, Measure D reserves available for FY 2018-2019 will be
approximately $1.4 million.

Policy Discussion: While staff recommends continuing these projects, Council may provide direction to staff to cease
current efforts and/or reduce the scope of these projects to stay within their original FY 2017-2018 adopted budgets.

Other Existing Projects and Considerations

Nine (9) projects funded in the current FY 2017-2018 warrant re-programming or cancellation, as listed in Table
2 (Attachment 2), Project Re-Programming Requests. First, Public Works is utilizing in-house staff to make
most of the needed beach stair repairs, resulting in a significant project cost reduction of $100,000, now
available for other projects. Staff also recommends that the current funding for three (3) separate Scenic
Pathway-related projects be consolidated into a new project, called the Scenic Pathway Restoration Project, to
complete the design of the entire Pathway for future reconstruction in a consolidated and cost-effective, rather
than in a piecemeal, manner.
The Larsen Field Bikeway project is at an appropriate stopping point. Continuing with this project will entail
complex regulatory challenges and an environmental review process with high risk and limited benefit. As such,
staff recommends that the project be terminated and unspent funds be re-programmed. Similarly, exploration of
providing wireless access to the downtown area has indicated that the tree canopy would render wireless access
unreliable and costly to implement. Staff recommends that these funds also be reprogrammed into other priority
projects that address critical infrastructure needs, such as the IT Server Expansion.

In consultation with Sunset Center representatives, staff recommends re-programming $60,000 for two (2)
existing Sunset Center projects, namely the awning and railing projects, to fund repairs for a more urgent
potential safety issue, the stage rigging system. If funds remain after completion of the rigging project, the
balance could be earmarked for pedestrian ramp lighting. Although these are proposed FY 2018-2019 projects,
staff believes these needs can be addressed by utilizing, and re-programming, existing project funds.

For the FY 2018-2019 budget, staff is making a concentrated effort to distinguish between ongoing
maintenance activities, which should be included within the operating budget, and capital projects. The existing
Sunset Center Facilities Project was essentially developed as a contingency account without a defined scope.
Staff recommends that these funds be returned to fund balance to be used for other capital projects.

FISCAL YEAR 2018-2019 PROJECTS

Theme
The FY 2018-2019 projects demonstrate the theme of rebuilding the foundation, including maintaining critical
infrastructure and exploring facility improvements. Several projects continue existing efforts to protect and
restore the Village's unique and special natural habitats while other projects address public health and safety
needs.

Definition
While reviewing the proposed capital projects, it is helpful to have a common understanding of what constitutes
a “Capital Project.” The Government Accounting Standard Board uses the term “capital assets” to “include land,
improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, historical
treasures, infrastructure, and other tangible or intangible assets that are used in operations and that have initial
useful lives extending beyond a single reporting period.”

For the City of Carmel-by-the-Sea, staff recommends consistently defining a Capital Project, or a Capital Outlay
as:

A fixed asset with any single component or piece of equipment that costs more than $10,000 and has an
expected useful life exceeding ten (10) years

New Projects

Twenty-Six (26) Proposed Projects, valued at $3,943,650:

Table 3 (Attachment 3), Proposed Projects for FY 2018-2019, shows projects totaling nearly $4 million. These
projects include a combination of vehicle and equipment purchases; facility renovations including $1.5 million for
the Police Department Renovation and Expansion Project; urban forest, beach and park enhancements, and
drainage, sidewalks, and street rehabilitation projects. The proposed projects are further categorized by type
within the report with a brief description.
Seven (7) Proposed Vehicles and Equipment Purchases, valued at $303,650:
Replacement of the oldest vehicle in our active fleet, a 1994 pickup truck used by Public Works Facility
Maintenance Division.
Replacement of pavement striping equipment used by Public Works Streets Division that has exceeded it
useful life.
An additional, electric motorcycle for the Police Department for in-town patrol. The existing motorcycle is
10 years old, but will continue to be used for specific needs, such as county traffic enforcement and
special events. An electric motorcycle will save on fuel costs, reduce air emissions, and extend the life of
the existing gas motorcycle.
New portable vehicle barriers to stop vehicles from entering public events held in streets. These barriers
would be in lieu of fixed location bollards and would in most cases eliminate the need for special event
organizers to provide such safety equipment for their events.
Replacement body cameras for the Police Department as the current cameras are 2 years old and nearing
the end of their expected life. This is part of a proposed 5 year agreement for cameras and cloud-based
evidence storage, including new server and DVD printer.
Additional server and components to ensure data capture in a disaster situation.
New dispatch console equipment to upgrade the 50 year old Police Department Dispatch Center and
augment new dispatch equipment funded by a State grant.

Ten (10) Proposed Facility Projects valued at $1,935,000:

Construction and renovation of the Police Department building. The project is currently in schematic
design and the estimated construction cost is $1.5 million.
Design for subsequent replacement of the boiler at the Sunset Center as it has surpassed its useful life.
Repair of the Sunset Center stage rigging system to safely provide stage operations.
Replacements of deteriorated windows at the Sunset Center.
New lightning along the ramp between upper and lower parking lots at Sunset Center.
Upgraded replacement speakers at the Sunset Center to enhance performances.
Initial implementation of ADA upgrades to address forthcoming items identified in the upcoming ADA
Transition Plan.

Three (3) facility projects may proceed should funding become available from donations and/or other non-City
funds:
Design of meeting space and lobby improvements at the Harrison Memorial Library by the Carmel Public
Library Foundation.
Possible relocation of the concession stand at Forest Theater.
Restoration of the WWI Memorial, as proposed by outside entities.

Five (5) Proposed Forest, Parks, and Beach Projects valued at $285,000:
Planting new trees with enhanced efforts to streamline the installation and care of future new trees, with a
new Task Force guidance as recommended by the Forest and Beach Commission.
Continued tree removal, cable railing, plant propagation, and species monitoring at the North Dunes
Habitat Restoration area.
Removal of dead and diseased trees within the Mission Trail Nature Preserve.
Removal of safety concerns, including an elevated, abandoned tank and a water well located within the
Mission Trail Nature Preserve.
Sea-Level Rise Analysis Report to ascertain impacts of climate change on the beach and shoreline and
methods to mitigate the impacts.
Four (4) Proposed Infrastructure Projects valued at $1,400,000:
Per Council direction during last year’s budget discussions, a preliminary design was completed on the
Lincoln Street Drainage Project between 1st and 2nd Avenues. This project is 30% co-located within the
County and requires County, or other source funds, to proceed into final design and construction.
A Drainage Master Plan is needed to provide: a condition assessment of existing network bottlenecks,
proposed improvements on a City-wide basis, development impacts and mitigation requirements, and
identification of potential surface water reuse projects. The Master Plan should be completed before any
new drainage projects are proposed.
Some 46 street segments have been identified for slurry seal treatment as part of the annual Pavement
Rehabilitation Program. The City is required to commit $560,000 in FY 2018-2019 to meet our
“Maintenance of Effort” level of funding to receive state funds. In addition to the $600,000 requested, this
project will be augmented by approximately $300,000 from State gas tax, vehicle fees, and Measure X,
the local sales tax transportation initiative.
Sidewalk repairs, predominantly caused by tree root uplifts, continue to be of concern. Funding for
sidewalk repairs has gradually increased each year since its initial allocation of $75,000 in FY 2014-2015.

Policy Discussion: Provide direction regarding the inclusion of additional projects, the potential removal or
deferral of proposed projects, and prioritization of projects in light of financial constraints.

Funding Sources

Measure D
Carmel-by-the-Sea residents approved Measure D, a one percent local sales tax initiative, on November 6,
2012:

"Shall Carmel-by-the-Sea increase transaction and use tax (sales tax) by 1% for 10 years, with an annual
independent audit, to maintain essential services including fire, ambulance and police response times; fund
capital needs including streets, beach, parks, forest and trails; increase code compliance; maintain libraries,
Sunset Center and other public facilities; address CalPERS pension liabilities and other debt; and provide
other general City services?"

In accordance with the ballot language above, the City has utilized annual Measure D revenues to fund capital
projects, pay debt service on the pension obligation bond, and fund direct services, including ambulance
services.

Chart 1 (Attachment 4) , Measure D Expenditures, below, illustrates the actual use of Measure D from FY
2013-2014 to FY 2016-2017 in the categories of capital projects, debt service, and direct services. FY 2017-
2018 shows projected Measure D expenditures for the current fiscal year which has not yet closed. This
projection includes the Council-approved use of Measure D Reserves for the Citywide Pavement Rehabilitation
Project and assumes the FY 2017-2018 supplemental appropriation requests of $345,00, as detailed in Table
1, are funded.

The projected Measure D revenue for FY 2018-2019 is estimated at $2,500,000. Staff recommends setting
aside $700,000 for the pension obligation bond and $650,000 for ambulance services, leaving $1,150,000
available for new capital projects.
Measure D Reserve
As shown in Table 1, the projected Measure D Reserve, after accounting for the pavement project and other
anticipated supplemental appropriation requests, is $1,400,000. Council has the option to use all, some, or none
of these remaining funds for FY 2018-2019 capital projects. Reserves are a one-time sources, meaning once
the reserves are depleted, they are not available to be used for other projects, services, or other liabilities. The
ability to replenish the reserves will be based on overall citywide revenues outpacing expenditures, which is
unlikely given the escalating costs of services, including pension obligations, and the long-term volatility of
revenues.

Vehicle and Equipment Fund (VEF)

In the FY 2015-2016 budget, Council approved the creation of a vehicle and equipment fund to (1) fund the
purchase of vehicles and equipment, and (2) build a reserve for future acquisitions and establish depreciation
schedules. Currently there is $420,000 in this fund. While this fund may be used for proposed new vehicle and
equipment projects, its short-term use should be balanced with longer-term objectives, particularly related to
funding future vehicle acquisitions.

For example, if $200,000 is used from this fund in FY 2018-2019, the remaining balance of $200,000 would not
be enough to pay for a large vehicle purchase, such as an ambulance. If the VEF fund drops below a
reasonable reserve, future vehicle purchases will compete with other capital projects each year for funding. The
latter option may, in turn, result in greater maintenance and repair costs and/or hamper the efficiencies of
operations that use unreliable vehicles and equipment.

Other Sources of Funds

Several projects proposed above may be funded by donations from external groups, including the design of the
Harrison Memorial Library to provide meeting space and improved lobby functions; relocation of the concession
stand at Forest Theater, and restoration of the WWI Memorial.

In addition, the Forest and Beach Commission requested the use of the Urban Forest Restoration Fund to
launch a tree planting initiative. This fund consists of public donations, mitigation in lieu of planting fees, and
collected penalties for illegal removal of trees.

Funding Parameters
While all of the proposed FY 2018-2019 projects are worthy of funding, operating within the financial framework
described below only allows for some projects to be funded at this time. As there are nearly $4,000,000 in
capital needs just for FY 2018-2019, it is not financially feasible to fund all of the requested projects at this time.
While capital needs clearly outweigh revenues available, the FY 2018-2019 discussion is more challenging
because the construction cost of one large project, the Police Department Renovation and Expansion, is
estimated at $1,500,000. Funding of this one project will require the entire Measure D capital project funding of
$1,150,000 plus other sources. Staff is therefore seeking direction regarding prioritization of projects and
overarching funding parameters to guide development of the capital budget.

Staff Recommendation
Staff recommends that Council appropriate $1,150,000 of new Measure D revenue to capital projects, which
provides funds to cover the pension obligation bond debt service of $700,000 and $650,000 to help offset the
cost of providing ambulance service.

Council has the option to change the amount of Measure D revenue allocated to capital projects. However, staff
cautions against this approach as the General Fund operating budget for Citywide services would need to be
redirected to cover the debt payment. In addition, either ambulance services would need to be curtailed or other
City services would be reduced to shift savings to ambulance services.
Staff also recommends that $100,000 of the Vehicle and Equipment Fund be allocated toward FY 2018-2019
projects, leaving $320,000 within the fund for future vehicle and equipment acquisitions. Staff does not
recommend the use of VEF reserves at this time. This scenario provides $1,250,000 in capital funding and is
depicted in Table 4 as Option #1 (Attachment 5).

Option #2 (Table 4) depicts the impact of using the Vehicle and Equipment Fund for FY 2018-2019 capital, keeping
the amount of Measure D constant. Depending on the amount of VEF used, capital funding ranges from $1,150,000
(no VEF used) to $1,570,000, which depletes the fund.

Option #3 (Table 4) illustrates the financial impact of keeping Measure D revenues for capital projects intact, but
utilizing all of the available Vehicle and Equipment Fund and Measure D Reserves. Together, this approach generates
$2,970,000 for capital projects in FY 2018-2019.

Although three primary options have been presented, that are a myriad of hybrid options that generate different
funding amounts. The purpose of this meeting is for Council to provide direction on the prioritization of projects
and funding parameters.

Council will need to decide:

(1) the amount of new Measure D revenue to allocate to capital projects;
(2) the amount of Vehicle and Equipment Fund to allocate toward FY 2018-2019 capital outlays, and
(3) the amount of one-time funding to use toward FY 2018-2019 capital projects.

Upon receiving such direction, staff will return to Council with a draft capital improvement plan so that Council
may review the document and then refer it to the Planning Commission to review for General Plan Consistency.
The capital improvement plan will then be incorporated into the Proposed FY 2018-2019 Budget, which will be
presented to Council on May 1, 2018.
FISCAL IMPACT:
The fiscal impact of funding the FY 2018-2019 capital projects is contingent upon the decisions made by
Council regarding capital projects to fund. Staff will return to Council with the known fiscal impact after receiving
direction from Council regarding project priorities and funding strategies.
PRIOR CITY COUNCIL ACTION:
None for Fiscal Year 2018/19.

ATTACHMENTS:

Attachment 1 - Table 1_ Project Supplemental Appropriation Requests

Attachment 2 - Table 2_ Project Re-Programming Requests
Attachment 3 - Table 3_ Proposed Projects for FY 2018-2019
Attachment 4 - Chart 1_Measure D Expenditures
Attachment 5 - Table 4_Funding Options
 Attachment 1

Table 1: Project Supplemental Appropriation Requests

Adopted Budget Amended

17-18 Adjustment Budget Status
Project
Budget Request (Estimated)
Per adopted MOU,
Offset by grant;
Radios $0 $20,000 $20,000
Anticipate approval
in April.
Decommission Fuel System 150,000 50,000 200,000 Project Bidding.
Proposals under
Security Pole Camera 80,000 30,000 110,000 review, potential
award in May.
HML Backup Generator 30,000 20,000 50,000 In Design.
**$250,000 used for
Guadalupe Drainage 576,000** 200,000 776,000 paving project; Bids
March 26.
Consultant selected;
GIS 17,000 25,000 42,000
contract executed.
Total Estimated Increased
345,000
Appropriations
Measure D Reserve Balance 2,500,000
Committed Use for City-wide
755,000
Pavement Project
Proposed Use for
345,000
Supplemental Requests
Estimated Use of Measure D
1,100,000
Reserves by 6/30/18
Estimated Measure D
Reserve Balance for Use in 1,400,000
FY 2018-19
 Attachment 2

Table 2: Project Re-Programming Requests

Adopted FY 18-19
Project FY 17-18 Budget Status
Budget Request
Beach Stair Maintenance $140,000 $40,000 Repairs performed by staff for less cost.
Concept plans previously developed;
Scenic Pathway 150,000 220,000
project requires design for bidding.
Landscape Barriers 55,000 0 Consolidate with Pathway design.
Continue with beach fire sign.
Waterfront Signage 24,000 0
Consolidate with Pathway design.
Projects FY 17-18 Project
369,000
Savings (Unspent Funds)
Projects FY 17-18 Project
369,000
Savings (Unspent Funds)

Projected Savings/Shortfall 109,000 Available for use

Costs for easement incurred; highly

Larsen Field 6,500 0
regulatory progress. Cancel project.
Sunset Center Facilities 50,250 0 Re-program to other projects.
Wireless Internet Implementation challenges and higher
32,000 0
Access Downtown cost. Re-program to IT Expansion.
Fund server from wireless project and
IT Server Expansion 50,000
other re-programmed funds.
Projects FY 17-18 Project
88,750
Savings (Unspent Funds)
Projects FY 17-18 Project
50,000
Savings (Unspent Funds)
Projected Savings/Shortfall 38,750 Available for use.
Sunset Center Awning 25,000 0 Re-program to stage rigging project.
Sunset Center Railing 35,000 0 Re-program to stage rigging project.
Sunset Center Stage Rigging 0 50,000 Fund stage rigging.
Sunset Center Pedestrian
0 10,000 Fund lights if no cost overrun on rigging.
Ramp Lighting
Projects FY 17-18 Project
60,000
Savings (Unspent Funds)
Projects FY 17-18 Project
50,000
Savings (Unspent Funds)
Projected Savings/Shortfall (10,000) Funds may be needed.
Total Projected
38,849 Available funds.
Savings/Shortfall

*New Proposed FY 2018-2019 Requests

 Attachment 3

Table 3: Proposed Projects for FY 2018-2019

Project Type 26 New Projects Estimated Cost

Vehicles/Equipment Public Works Facility Maintenance Pickup Truck $ 45,000
Vehicles/Equipment Public Works Pavement Paint Striper 10,000
Vehicles/Equipment Police Department Electric Motorcycle 15,000
Vehicles/Equipment Portable Vehicle Barriers 75,000
Vehicles/Equipment Police Department Body Cameras (Year One) 18,650
Vehicles/Equipment Server Expansion 50,000
Vehicles/Equipment Police Department Dispatch Console Equipment 90,000
Facility Improvement Police Department Renovation- Construction 1,500,000
Facility Improvement Sunset Center Boiler Replacement Design 25,000
Facility Improvement Sunset Center Stage Rigging 50,000
Facility Improvement Sunset Center Windows 150,000
Facility Improvement Sunset Center Pedestrian Ramp Lighting 10,000
Facility Improvement Sunset Center Speakers 180,000
Facility Improvement ADA Upgrades per Transition Plan, Year 1 20,000
Facility Improvement HML Library Meeting Space Design 20,000
Facility Improvement Forest Theater Concession Stand Relocation Donations
Facility Improvement World War I Memorial Restoration Donations
Forestry & Parks Tree Planting Initiative 25,000
Forestry & Parks North Dunes Restoration Phase 2 60,000
Forestry & Parks MTNP Dead and Invasive Tree Removals 50,000
Forestry & Parks MTNP Tank Removal and Well Abandonment 75,000
Forestry & Parks Sea Level Rise Analysis Report 75,000
Critical Infrastructure Drainage Project along Lincoln Street (1st to 2nd) 300,000
Critical Infrastructure Drainage Master Plan and Water Reuse Study 150,000
Critical Infrastructure Streets - Multi-Year, FY 18-19- Slurry 46 Streets 600,000
Critical Infrastructure Sidewalk- Multi-Year, FY 18-19 350,000
Total New Projects ​$3,943,650
 Chart 1: Measure D Expenditures

Use of Measure D
$4,250,000

$3,750,000
$3,602,000
$3,250,000 $2,952,997
$2,750,000
$2,500,554
$2,250,000

$1,750,000 $1,790,702

$1,250,000
$997,864
$750,000

$250,000
FY 13-14 FY 14-15 FY 15-16 FY 16-17 17-18

Ambulance Capital Projects Debt General Fund Total

 Table 4: Funding Options Attachment 5

Option #1: Staff Recommendation

Vehicle/Equipment Measure D
Measure D CIP Available
Fund Reserve
Estimated Beginning Balance $2,500,000 $420,000 $1,400,000
less pension debt service (700,000)
less ambulance (650,000)
Remaining Balance 1,150,000
Capital Project Allocation (1,150,000) (100,000) 0
Estimated Balance 0 320,000 1,400,000
Option #1 - CIP Amount 1,150,000 100,000 0 1,250,000

Option #2: Use of Vehicle and Equipment Fund

Vehicle/Equipment Measure D
Measure D CIP Available
Fund Reserve
Estimated Beginning Balance $2,500,000 $420,000 $1,400,000
less pension debt service (700,000)
less ambulance (650,000)
Remaining Balance 1,150,000
Capital Project Allocation (1,150,000) (420,000) 0
Estimated Balance 0 0 1,400,000
Option #2 - CIP Amount 1,150,000 400,000 0 1,570,000

Option #3: Use of Measure D Reserve

Vehicle/Equipment Measure D
Measure D CIP Available
Fund Reserve
Estimated Beginning Balance $2,500,000 $420,000 $1,400,000
less pension debt service (700,000)
less ambulance (650,000)
Remaining Balance 1,150,000
Capital Project Allocation (1,150,000) (420,000) (1,400,000)
Estimated Balance 0 0 0
Option #3 - CIP Amount 1,150,000 420,000 0 2,970,000