HomeMy WebLinkAbout1996-08-05 Ordinance 4363. . • •
ORDINANCE NO. 4363
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
I>.MENDING THE BUDGET FOR THE FISCAL YEAR 1996-97 TO CREATE
AND FUND A TELECOMMUNICATIONS PROGRA.~ INCLUDING THE
CREATION OF A CAPITAL IMPROVEMENT PROJECT, AND EXTENDING
A LOAN FROM THE ELECTRIC FUND FOR THE PROGRAM
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
NHEREAS, the Electric Ut.i.lity has been involved in the
development of a plan directed towards promoting the formation of
a competitive market for commercial telecommunications activities
in Palo Alto; and
WHEREAS, to participate in tn1.s market, a fiber optic ring is
proposed to be developed around Palo Alto; which is co-located in
conduits and on poles with e;-=isting communications lines; and
WHEREAS, to fund the creation of this fiber optic ring .. a loan
is proposed to be made from the Electric Re.te Stabilization Reserve
to the proposed telecommunications program; and
WHERF..AS, the proposed telecom..rnunications program will be a
subfund of the Electric Fund but the assets of the program will not
be included in the assets that are used for the calculation of the
equity transfer from the Electric Fund to the General Fund; and
WHEREAS, the telecommunications program will require creation
of a capital improvement project Fiber Optic Desi~~ and Construction
(CIP 19716), funded in the amount of $1,995,400 and will also
require operating budget expenses in the amount of $101,600; and
WHEREAS, some of the needed funds will be reallocated within
the Ele~tric lJtility to the telecommunications program; and
vffiEREAS, the Electric Utility has already invested $194,000 in
the development of the telecommunications program, which will be
repaid as the program begins to generate revenues; and
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WHEREAS, additional appropriations are needed to fund the
project; and
WHEREAS~ City Council authorization is required to amend the
1996-97 budget as hereinafter set forth.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTIO~ l. Capital Improv~~ent Project (CIP) 19716, ~Fiber
Optic Design and Construct.ionR is hereby created.
SECTIQH 2.. The su..."'t\ of One Million Nine Hundred Ninety Five
Thousand and Four Hundred Dollars { $1 ( 995, 400) is hereby
appropriated to Capital Improvement. Project (CIP) 19716, "Fiber
Optic Design and Construction,~ This appropriation shall be funded
as follows:
a. The sum of One Million ~~ine Hundred Eighty Six Thousand and
Six Hundred Dollars ( $1,986, 600) is hereby· transfe";.'"red from the
Electric Rate Stabilization Reserve to the appropriation for CIP
19716: and
b. The sum of Eight Thousand Eigbt Hundred Dollars {$8,800) is
hereby reallocated within the Eleccric Fund to CIP 19716.
SECTION 3. The sum of One Hundred One Thousand and Six Hundred
Dollars ($101,600) is h~reby appropriated to the functional area
Co~~ercial Telecommunicaticns in the Telecommunications Program.
This appropriation includes a $17,600 appropriation to salaries, a
$75,000 appropriation to non-salaries, and a $9~000 appropriation
to allocated charges. This appropriation shall be. funded as
follows:
a. The sum of Seventy Five Thousalld Dollars($75,000) is hereby
transferred from the Electric Rate Stabilization Reserve to the
appropriation for the functional area Commercial Telecommunications;
and
b. The sum of Twenty Six Thousand Six Htrr!dred Dollars ($26,600)
is hereby reallocated within the Electric Fund to the functional
area Conunercial Telecou\municat.ions.
SECTION 4. The transactions described in section 2 and 3 will
reduce the Electric Rate Stabilization Reserve from $16,943,200 to
$14,881,600.
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SECTION S. The sum of Two Million Two Hundred Ninety One
Thousand Dollars ($2,291,000) is hereby reserved in the retained
earnings of the Electric Fund for the Telecommunications Progr~~-
SECTION 6. As specified in Section 2 .. 28.080 (a) of the Palo
Alto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 7. The Council finds that the appropriation of fund1,;
does not constitute a project under the California Environmental
Quality Act. Environmental review for the Capital Improvement
Project has not been completed at this time. This Council action
makes expenditure of funds expressly contingent upon completion of
an environmental review.
SE-CTION. B._. As provided in Section 2.04..350 cf the Palo Alt.o
Municipal Code, this ordinance shall become effective upon adopt.ion.
INTR8DUCED AND PASSED: August 5 ~ 1996
AYES: ANDERSEN 1 FAZZINO 10 HUBER, KNISS~ HCCO~'N, ROSENBAUM, SIMI TIAN, WHEELER
NOES:
ABSTENTIONS:
ABS&"'l'T: SCHNEIDER
APPROVED AS TO FORM:
~4.2:-(!.).~A R
Senior Asst. City Attorney
APPROVED: