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Home My WebLink About2017-05-18 Finance Committee Action Minutes FINANCE COMMITTEE ACTION MINUTES Page 1 of 5 Finance Committee Action Minutes May 9, 2017 Special Meeting Tuesday, May 18, 2017 Chairperson Filseth called the meeting to order at 2:04 P.M. in the Council Chambers, 250 Hamilton Avenue, Palo Alto, California. Present: Filseth (Chair), Fine, Holman, Tanaka arrived at 7:20 P.M. Absent: Action Items 1. May 9th Budget Hearing Continuation. NO ACTION TAKEN 2. Fiscal Year 2018 Proposed Municipal Fee Schedule. MOTION: Chair Filseth moved, seconded by Council Member Fine to recommend Council approve the Fiscal Year 2018 Proposed Municipal Fee Schedule, including the amendments outlined in the at places memos provided by Staff, and with the following changes: A. Amend the fee for Downtown Garage/Lot Permits and for full price Downtown RPP employee permits so they are set at $365 for 6 months and $730 for one year; and B. Amend the fee for Evergreen Park/Mayfield RPP full price employee permits and the California Avenue and Garage/Lot permits so they are set at $182.50 for 6 months and $365 for one year; and C. Standardize all residential RPP permit fees at $50 per year, including the Crescent Park No Overnight Parking program; and D. Ensure the revenue from the increased cost of Downtown Garage/Lot permits and full price employee RPP permits goes to fund the Transportation Management Association MOTION PASSED: 3-0 Tanaka absent ACTION MINUTES Page 2 of 5 Finance Committee Action Minutes May 18, 2017 3. General Fund Capital. a) Buildings and Facilities, Capital Budget (pp. 73-141) b) Parks and Open Space, Capital Budget (pp. 147-225) c) Streets and Sidewalks, Capital Budget (pp. 227-249) d) Traffic and Transportation, Capital Budget (pp. 251-289) e) Cubberley Infrastructure, Capital Budget (pp. 295-316) MOTION: Council Member Fine moved, seconded by Council Member Holman to tentatively approve the CIP Budget and ask Staff to return to Council with a list of projects that could be postponed or delayed, totaling an amount of $4.3 million. MOTION PASSED: 3-0 Tanaka absent MOTION: Council Member Fine moved, seconded by Chair Filseth to tentatively approve the Cubberley Infrastructure Capital Budget. MOTION PASSED: 3-0 Tanaka absent Finance Committee took a break at 4:23 P.M. and returned at 4:42 P.M. 4. Utilities Department. a) Electric Fund i. Operating Budget (pp. 411-425) ii. Capital Budget (pp. 343-427) b) Fiber Optics Fund i. Operating Budget (pp. 427-434) ii. Capital Budget (pp. 429-443) c) Gas Fund i. Operating Budget (pp. 435-447) ii. Capital Budget (pp. 445-479) d) Wastewater Collection Fund i. Operating Budget (pp.449-458) ii. Capital Budget (pp. 495-523) e) Water Fund i. Operating Budget (pp. 459-472) ii. Capital Budget (pp. 553-596) MOTION: Chair Filseth moved, seconded by Council Member Fine to tentatively approve the Electric Fund Operating and Capital Budgets; a Resolution Approving the Fiscal Year 2018 Electric Financial Plan; and a Resolution Increasing Electric Rates by Amending the E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU and E-14 Rate Schedules. ACTION MINUTES Page 3 of 5 Finance Committee Action Minutes May 18, 2017 MOTION PASSED: 3-0 Tanaka absent MOTION: Chair Filseth moved, seconded by Council Member Holman to tentatively approve the Fiber Optics Fund Operating and Capital Budgets. MOTION PASSED: 3-0 Tanaka absent MOTION: Chair Filseth moved, seconded by Council Member Holman to tentatively approve the Gas Fund Operating and Capital Budgets, and a Resolution approving the Fiscal Year 2018 Gas Utility Financial Plan with no changes to distribution rates. MOTION PASSED: 3-0 Tanaka absent MOTION: Chair Filseth moved, seconded by Council Member Holman to tentatively approve the Wastewater Collection Fund Operating and Capital Budgets. MOTION PASSED: 3-0 Tanaka absent MOTION: Council Member Holman moved, seconded by Council Member XX to tentatively approve the Water Fund Operating and Capital Budgets, with the exception of Capital Project WS07001. MOTION FAILED DUE TO THE LACK OF A SECOND MOTION: Council Member Fine moved, seconded by Chair Filseth to tentatively approve the Water Fund Operating and Capital Budgets. MOTION PASSED: 2-1 Holman no, Tanaka absent The Committee took a break from 5:50 P.M. until 6:26 P.M. 5. Utility Rate Review and Approval. (Includes Item Numbers 6-8) 6. Utilities Advisory Commission Recommendation That the City Council Adopt 1) a Resolution Approving the Fiscal Year 2018 Electric Financial Plan, and 2) a Resolution Increasing Electric Rates by Amending the E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU and E-14 Rate Schedules. ACTION MINUTES Page 4 of 5 Finance Committee Action Minutes May 18, 2017 7. Utilities Advisory Commission Recommendation That the City Council Adopt a Resolution Approving the Fiscal Year 2018 Gas Utility Financial Plan with no Changes to Distribution Rates. 8. Follow-up Information on Water Utility Rate Comparisons. 9. Wrap-Up. MOTION: Council Member Fine moved, seconded by Chair Filseth to tentatively approve the Staff recommended changes to the Fiscal Year 2018 Proposed Budget. MOTION PASSED: 3-0 Tanaka absent Council Member Tanaka arrived at 7:20 P.M. MOTION: Chair Filseth moved, seconded by Council Member Holman to tentatively approve the addition of $20,000 for the Auditor’s Office Code Enforcement Survey, $50,000 for YCS funding, reduce the Vehicle Maintenance and Replacement Fund by $50,000 and reduce the California Avenue fund by $75,000. MOTION PASSED: 3-0-1 Tanaka abstain MOTION: Chair Filseth moved, seconded by Council Member Holman approve the Tree Trimming funding with a seven year cycle and approve the Non-Departmental Operating Budget. MOTION PASSED: 3-0-1 Tanaka abstain MOTION: Council Member Fine moved, seconded by Council Member Filseth to tentatively approve the City Manager’s Operating Budget. MOTION FAILED: 2-2 Holman, Tanaka no MOTION: Chair Filseth moved, seconded by Council Member Fine to recommend the City Council approve the Fiscal Year 2018 Proposed Budget including the changes made tonight, as well as the 2-2 vote on the City Manager’s Operating Budget. MOTION PASSED: 3-1 Tanaka no ACTION MINUTES Page 5 of 5 Finance Committee Action Minutes May 18, 2017 MOTION: Council Member Holman moved, seconded by Council Member Fine to recommend the City Council direct Staff on the following: A. Return to the Finance Committee in August to review the citywide implications of: 1) structural revenue and expense growth ensuring expense growth remains at or below that of revenues; and 2) unfunded pension liability. Some specific areas to address include: i. Look first at current public safety growth rate of 10 to 12 percent in relation to citywide growth rate of 6 percent. Include a review of staffing levels and alternative models. ii. Review of the financial reporting of the unfunded pension liability B. Report to City Council on the plan and implications for power redundancy MOTION PASSED: 4-0 Future Meetings and Agendas Adjournment: The meeting was adjourned at 9:55 P.M.