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HomeMy WebLinkAbout2001-04-23 Ordinance 4694ORDINANCE NO. 4694 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2000-01 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $375,000 FOR THE SHORT-TERM RENTAL OF BACK-UP GENERATORS AND ASSOCIATED SERVICES; AND $150,000 FOR CAPITAL IMPROVEMENT PROJECT NUMBER 9803 WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 19, 2000 did adopt a budget for fiscal year 2000-01; and WHEREAS, the Utilities Department has identified the immediate need to mitigate the potential severity and frequency of rolling blackouts expected for summer 2001, as well as a long term need of unknown duration; and WHEREAS, staff conducted an extensive survey of available equipment and equipment suppliers and determined that a 5 megawatt back-up generator could mitigate the impact of rolling blackouts; and WHEREAS, the City can contract with Planergy International on an immediate, emergency basis for a short-term rental of 5 MW diesel back-up generation (4 units @ 1350 kW), and associated engineering, installation and maintenance services, and at a later date enter into a further contract for long term back-up generation; and WHEREAS, an additional appropriation of $375,000 is needed to cover the unforeseen expenses relating to the procurement and related contractual expenses of the short-term back-up generators; and WHEREAS, an additional appropriation to the System Reconstruction and Improvements capital project, number 9803, is needed to cover the City's expenses for electrical switch and connection equipment relating to this short-term back-up generator; and WHEREAS, the additional appropriation of funds will derive from the Electric Supply Rate Stabilization Reserve; and WHEREAS, the additional appropriation of funds for this emergency procurement is a one-time cost; funding for the long-term generator contract will be included in the proposed budget for 2001- 03, which will require future Council action; and no future year ongoing costs relating to this short-term contract are anticipated; and WHEREAS, City Council authorization is needed to amend the 2000-01 budget as hereinafter set forth. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. The sum of Three Hundred Seventy-Five Thousand Dollars ($375,000) is hereby appropriated to non-salary expenses in the Electric Distribution System Functional Area in the Utilities Department, and the Electric Supply Rate Stabilization Reserve is correspondingly reduced. SECTION 2. The sum of One Hundred Fifty Thousand Dollars ($150,000) is hereby appropriated to Capital Improvement Project Number 9S03, System Reconstruction and Improvements, and. the Electric Supply Rate Stabilization Reserve is correspondingly reduced. SECTION 3. The appropriation transfers approved in sections 1 and 2 will reduce the Electric Supply Rate Stabilization Reserve from $25,726,000 to $25,201,000. SECTION 4. As specified in Section 2.2S.0S0(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 5. This emergency project has been determined to be exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15269 of the CEQA Guidelines. Appropriate environmental assessment will be done with regard to the future long-term generator project. 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: April 23, 2001 AYES: Beecham, Burch, Eakins, Lytle, Mossar, Ojakian, Wheeler NOES: ABSTENTIONS: ABSENT: Fazzino, Kleinberg ATTEST: abu~<'~ City Clerk APPROVED AS TO FORM: i).1.A.~ oJ A ~ Senior Asst. City Attorney e6i ool1il'y(or di/)cll:lre) under pemllty (11 perjury that the foregoing is true IMd correct." ~lR~Dl2l1&'1tv APPROVED: