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HomeMy WebLinkAbout2014-09-22 Ordinance 5271ORDINANCE NO. 5271 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE GENERAL FUND BUDGET FOR FISCAL YEAR 2015 TO INCREASE GOLF COURSE REVENUE ESTIMATES BY $708,495, PROVIDE AN ADDITIONAL APPROPRIATION OF $168,036 IN THE COMMUNITY SERVICES DEPARTMENT BUDGET FOR GOLF COURSE OPERATIONS, AND ESTABLISH AN FY 2016 GOLF COURSE OPERATING LOSS RESERVE FOR FUTURE GOLF COURSE OPERATIONS FROM THE NET REVENUE OF GOLF COURSE OPERATIONS IN THE AMOUNT OF $540,459. The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article Ill of the Charter of the City of Palo Alto, the Council on June 16, 2014 did adopt a budget for Fiscal Year 2015; and B. As part ofthe approval of the Fiscal Year 2014 Adopted Capital Budget, the City Council approved the Golf Course Reconfiguration Project; and C. The Fiscal Year 2015 Adopted Operating Budget assumed the closure ofthe Golf Course effective July 1, 2014; and D. In anticipation ofthe Golf Course Reconfiguration Project, the City applied for permits from the State Water Board; and E. Due to delays in receiving permit approval which has delayed construction as well as contractual obligations with the City's concessionaires at the Golf Course, in June 2014 the City Council authorized an additional appropriation of $324,800 offset by commensurate revenues to keep the Golf Course open for a two-month period to allow the State Water Board to issue regulatory permits; and F. Due to continued delays in receiving permit approval, staff has rejected all bids for the Golf Course Reconfiguration Project and will reissue a Request for Proposals (RFP) in the fall of 2014, for a projected construction start date of March 1, 2015; and G. Therefore, staff is requesting an additional appropriation to keep the Golf Course open through February 2015; and H. In anticipation of future needs due to the closure of the Golf Course, establish an FY 2016 Golf Course Operating Loss Reserve in the General Fund from the net revenue from Golf Course Operations. SECTION 2. The revenue estimate for Charges for Services in the Community Services Department for Golf Course operations is hereby increased by Seven Hundred Eight Thousand Four Hundred Ninety Five ($708,495). SECTION 3. The Community Services Department expenditure budget for Golf Course operations is hereby increased by One Hundred Sixty Eight Thousand Thirty Six ($168,036). SECTION 4. A Golf Course Operating Loss Reserve is hereby established in the General Fund in the amount of Five Hundred Forty Thousand Four Hundred Fifty Nine ($540,459). SECTION 5. 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 6. As provided in Section 2.04.330 ofthe Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 7. The actions taken in this ordinance do not constitute a project requiring environmental review under the California Environmental Quality Act (CEQA). II II II II II II II II II II II II II II II II II II II II \ INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATIEST: BERMAN, SHEPHERD September 22, 2014 BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID APPROVED: ~--fr-----t------ City Clerk APPROVED AS TO FORM: