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HomeMy WebLinkAbout2006-07-10 Ordinance 4910ORDINANCE NO 4910 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 PF-07011, ROTH BUILDING MAINTENANCE AND TO PROVIDE AN APPROPRIATION IN THE AMOUNT OF $ 415, 000 FROM THE GENERAL FUND BUDGET STABILIZATION RESERVE 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 07i and B. In April 2000, the City Council approved the purchase of Roth Building for potential development use as a public facility or alternative use if a public facility is not feasible; and C. In acquiring the Roth Building, the City of Palo Alto entered into a development agreement with the Palo Alto Medical Foundation, which among other conditions, stipulates that the City must complete demolition of the non-historic Roth Building wings by July 19,2003; and D. In the 2002-03 Adopted Budget, the City Council approved the creation of CIP PE-03004 (formerly CIP 10304), Roth Building Wings Demolition and appropriated $930,000 for the Project. Subsequently, during the fiscal year 2003-04, the City Council, through Budget Amendment Ordinance Numbers 4790 and 4785, appropriated additional amounts of $275,000 and $30,350, respectively, bringing the total appropriation to $1,235,350; and E. The scope of CIP PE-03004 included design, asbestos abatement, building demolition of non-historic wings, structural bracing and enclosure of the spine, and dirt backfill of the hole left by the removal of the wings, and all proj ect work were completed in the summer of 2004; and F. In May 2002, the City Council directed City staff to solicit proposals for the lease of the Roth Building. A proposal from the Palo Alto Historical Association (PAHA) was accepted in March 2004. A draft "Option to Lease and Lease Agreement" (Lease Agreement) was submitted to PAHA, and among the changes that PAHA proposed was the requirement that City maintain and secure the building in water tight condition during the three-year period of the lease option; and G. Before the City can proceed with the negotiations with PARA, City staff has concerns about the present condition of the building due to heavy rains over the past two seasons. The Roth Building has been impacted by water leakage and moisture, and the removal of the wings and retention of the spine exacerbated the condition of the building. The loss of the building's electrical and mechanical system resulted to the absence of heat and ventilation which contributed to the moisture build-up in the building interior; and H. Improvements to the building are necessary to protect the building from further deterioration, and until PARA takes over the site. Improvements to the building would include installation of electrical services, new basement water proofing, window sealing and roof repair; and I. The estimated cost of the improvements is $415,000 and a new CIP project will need to be created for the Roth Building maintenance; and J. If General Fund ongoing costs will be incurred, they will be included in the operating budget; and K. City Council authorization is needed to amend the 2006-07 budget as hereinafter set forth. SECTION 2. Capital Improvement Project (CIP) PF-07011, Roth Building Maintenance, is hereby created. SECTION 3. The sum of Four Hundred Fifteen Thousand Dollars ($415,000) is hereby appropriated to Capital Improvement Project Number PF-07011. SECTION 4. Revenue in CIP Project Number PF-07011 is hereby recognized by a transfer from the General Fund Stabilization Reserve in the amount of Four Hundred Fifteen Thousand Dollars ($415,000). SECTION 5. The General Fund Budget Stabilization Reserve balance is hereby reduced by Four Hundred Fifteen Thousand Dollars ($415,000) to Twenty Two Million One Hundred Ninety Five Thousand Four Hundred Eighty One Dollars ($22,195,481) as shown in Exhibit A. 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 proposed improvements constitute a minor change to an existing facility and are exempt from the California Environmental Quality Act (CEQA). SECTION 8. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: July 10, 2006 AYES: Barton, Beecham, Cordell, Drekmeier, Klein, Kleinberg, Morton NOES: Mossar ABSTENTIONS: ABSENT: Kishimoto ATTEST: APPROVED: ~~City Clerk APPROVED AS TO FORM: City Manager Public Works