HomeMy WebLinkAbout2001-05-21 Ordinance 4699ORDINANCE NO. 4699
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 $1,577,000 FOR GAS
FUND COMMODITY PURCHASE COSTS
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 Gas utility's adopted budget for fiscal year
2000-01 is based on historically normal gas price forecasts as of
December 1999; and
WHEREAS, gas prices have increased more than two hundred fifty
percent since the May 2000 forecast due to several factors relating
to supply and demand; and
WHEREAS, the Council has adopted three previous rate increases
during fiscal year 2000-01, totaling sixty-five percent or $10.3
million in gas fund revenues over the adopted budget; and
WHEREAS, an estimated additional $1,577,000 beyond budget
amount adjusted by these rate increases is required for gas
commodity purchases; and
WHEREAS, an additional sixty-seven percent rate increase,
effective June 1, 2001 will generate an additional $536,000 in gas
sales revenue for the remainder of fiscal 2000-01, partially
offsetting increasing gas commodity costs; and
WHEREAS, the Gas Fund Supply Rate Stabilization Reserve is
below Council recommended guidelines and a $600,000 transfer from
the Gas Fund Conservation Loan Reserve is proposed to achieve an
adequate funding level for commodity purchases; 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 One Million Five Hundred Seventy-Seven
Thousand Dollars ($1,577,000) is hereby appropriated to commodity
purchases expense in the Supply Resource Management Functional Area
in the Gas Fund, and the Supply Rate Stabilization Reserve is
correspondingly reduced.
SECTION 2. The sum of Six Hundred Thousand Dollars ($600,000)
is hereby transferred from the Gas Fund Conservation Loan Reserve
to the Gas Fund Supply Rate Stabilization Reserve.
SECTION 3. The transactions authorized by Section 1 and 2 will
reduce the Gas Fund Supply Rate Stabilization Reserve by a net
$441,000 from $2,410,051 to $1,969,051.
SECTION 4. Gas Fund revenues are hereby increased by a net of
Five Hundred Thirty-Six Thousand Dollars ($536,000) to reflect the
rate increase.
SECTION 5. As specified in Section 2.2B.OBO(a) of the Palo
Alto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 6. The Council of the City of Palo Alto hereby finds
that this is not a project under the California Environmental
Quality Act and, therefore, no environmental impact assessment is
necessary.
SECTION 7. As provided in Section 2.04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED:
AYES: Beecham, Burch,
Ojakian
NOES:
ABSTENTIONS:
ABSENT: Wheeler
May 21, 2001
Eakins, Fazzino, Kleinberg,
ATTEST: APPROVED:
Jlkw.c;.~ City Clerk
APPROVED.AS TO FORM:
~ .. c;J, C-tL~-<-
~. City Attorney
THIS DOCUMENT IS CERTIFIED TO ElE AN
ORDINANCE DULY PASSED BYTHE COUNCil
OF THE CITY OF PALO ALTO AND
THEREAHER POSTED mn1EflOIJNCIl. ....
CHAMBERS ON V __ (WI fHhI11~,
DAVSOF ITS PASSAGE)'
'" certify (or declare) under penalty
of perjury that the foregoing is true
end correct,"
teJ~Q{ Paba~
Date Place
Lytle, Mossar,