HomeMy WebLinkAbout1997-01-21 Ordinance 4396• •
ORDINANCE NO. 4396
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1996-97 TO
RECOGNIZE AND IMPLEMENT BOND FINANCING OF THE TERMINATION
PAYMENT FOR THE WASHINGTON WATER POWER CONTRACT
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June
24, 1996 did adopt a budget for fiscal year 1996-97; and
H
Northern California Power Agency (NCPA) has
executer an agreement to terminate the power supply contract with
Washington Water Power (WWP) , an electric power supplier to NCPA
agencies including the City of Palo Alto; and
WHEREAS, the agreement to terminate the power supply contract
with WWP will result in savings to the City of Palo Alto of $670,000
over five years; and
WHEREAS, the City of Palo Alto is required to make a contract
termirat' n payment to WWP through NCPA; and
WHEREAS, by using proceeds from tax exempt bonds instead of
using Electric Fund cash reserves, the City will preserve between
$50,000 to $85,000 in interest earnings; and
WHEREAS, City Council authorization is needed to transfer
budgeted funds from the utilities purchased for resale account; and
WHEREAS, City Council authorization is needed to amend the
1996-97 budget as hereinafter set forth.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION 1. The sum of One Hundred Seventy Thousand Dollars
($170,000) is hereby transferred from the Utility Purchases account
to the General Expense account in the Functional Area Resource
Management of the Electric Fund.
SECTION a. The sum of $67,000 is hereby reduced from the
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Electric Fund's Utility Purchases account and the Rate Stabilization
Reserve is correspondingly increased.
SECTION 3. This transaction will increase the Rate
Stabilization Reserve from $15,876,000 to $15.943,000.
SECTION 4. As specified in Section 2.28.080(c)(1) of the Palo
Alto Municipal Code, a majority vote of the City Council is required
to adopt this ordinance.
SECTION 5. The Council of the City of Palo Alto hereby finds
that the enactment of this ordinance is not a project under the
California Environmental Quality Act and, therefore, no
environmental impact assessment is necessary.
SECTION 6. As provided in Section 2,04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED: January 21, 1997
AYES: ANDERSEN, EAKINS, FAZZINO, HUBER, KNISS, MCCO+W'N, =JSENBAUM, SCHNEIDER,
WHEELER
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
We4.:liepteriet" Clerk
APPROVED AS TO FORM:
CAA -
Senior Asst. City Attorney
APPROVED:
C.' Manager
7
Deputy City Manager,
Administrative Services
Department