HomeMy WebLinkAbout2007-04-16 Ordinance 4944ORDINANCE NO. 4944
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR FISCAL YEAR 2006-07 TO ESTABLISH
CAPITAL IMPROVEMENT PROGRAM PROJECT NUMBER WS-07001,
RECYCLED WATER DISTRIBUTION SYSTEM EXTENSION AND TO
PROVIDE AN APPROPRIATION IN THE AMOUNT OF $250,000
The Council of the City of Palo Alto does ORDAIN as
follows:
SECTION 1. The City Council of the City of Palo Alto
finds and determines as follows:
A. Pursuant to the provisions of Section 12 of Article III of
the Charter of the City of Palo Alto, the Council on June 12, 2006
did adopt a budget for fiscal year 2006-07; and
B. The City of Palo Alto (City) currently uses water produced
(recycled water) at the Palo Alto Regional Water Quality Control
Plant (RWQCP) to irrigate the municipal golf course and Greer Park,
maintain the duck pond, enhance the Emily Renzel Marsh and provide
for certain processes at the RWQCP. All existing recycled water uses
are at City-owned facilitiesi and
C. The City and the partners/owners of the RWQCP examined the
feasibility of expanding the use of recycled water to serve
additional city and commercial customers in the RWQCP service area.
The examination was concluded with the publication of the April 1992
report "Water Reclamation Master Plan for the Regional Water quality
Control" (Master Plan); and
D. In April 1995, the City Council certified the Program
Environmental Impact Report (EIR) for the projects identified in the
Master Plan. At that time, the City Council decided not to proceed
with the new projects as they were not cost-effective. The City
Council advised City staff to reevaluate the projects in case of
changes of conditions occur such as changes in the RWQCP discharge
permit requirements, increase of mass loading to the RWQCP, requests
by partner agencies, availability of federal and other grants, and
supply-side issues, which may lead to increases in the value of
recycled water; and
E. Since April 1995, a segment of that project, an extension of
the RWQCP's recycled water system to Mountain View and Moffett
Field is moving toward construction. In addition, the costs of
wholesale water from the San Francisco Public Utilities commission
(SFPUC), the City's primary water supplier, are projected to
increase dramatically due to the completion of the upgrades of
SFPUC's regional water system. In response to these changes, the
City completed in July 2006 a Recycled Water Market Survey to update
the 1992 Master Plan and re-examine the feasibility of extending the
recycled water system to deliver water to end users in Palo Alto.
The survey identified a potential demand of recycled water; and
F. A new CIP project will need to be created for the Recycled
Water Distribution System Extension (Project). The estimated cost of
planning and environmental review work of the Project is $250,000.
Funding will be provided by the water Fund rate stabilization
reserve of $85,000 and by a transfer of the operating budget to the
capital budget of $165,000. A grant of $75,000 from the State Water
Resources Control Board, projected to be received in fiscal year
2007-08, will reimburse the drawdown from the Water Fund rate
stabilization reservei and
G. City Council authorization is needed to amend the 2006-07
budget as hereinafter set forth.
SECTION 2. Capital Improvement Project (CIP) WS 07001,
Recycled Water Distribution System Extension is hereby created.
SECTION 3. The sum of Two Hundred Fifty Thousand Dol
($250,000) is hereby appropriated to Capital Improvement Project
Number WS-07001.
SECTION 4. Revenue in CIP Project Number WS-07001 is increased
by a transfer from the Water Fund operating budget in the amount of
One Hundred Sixty Five Thousand Dollars ($165,000).
SECTION 5. Revenue in CIP Project Number WS-07001 is increased
by a transfer the Water Fund rate stabilization reserve in the
amount of Eighty Five Thousand Dollars ($85,000).
SECTION 6. The Water Fund rate stabilization reserve is reduced
by $85,000 to $3,541,000.
SECTION 7. 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.
=~:...:=-:~~8. This project is Exempt from CEQA. Environmental
review conducted in connection with the facility plan.
SECTION 9. As provided in Section 2.04.330 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED: April 16, 2007
AYES:
NOES:
BARTON, BEECHAM. CORDELL, DREKMEIER, KISHIMOTO,
KLEIN, KLEINBERG, MORTON, MOSSAR
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
City Clerk
APPROVED AS TO FORM:
City Manager
Utilities
City torney D ment
Administrative
Services