HomeMy WebLinkAbout2000-07-31 Ordinance 4652ORDINANCE NO. 4652
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 $6,607,307 FOR GAS
FUND COMMODITY PURCHASE AND TRANSMISSION 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 fifty percent
since the December 1999 forecast due to several factors relating to
supply and demand; and
WHEREAS, an estimated $6,607,307 beyond the amount budgeted is
required for gas commodity purchases; and
WHEREAS, a 15 percent rate increase effective August 1, 2000
will generate $2.3 million in gas sales revenue and offset a portion
of increasing gas commodity costs; and
WHEREAS, as a result of lower revised sales volume subsequent
to adoption of the budget, anticipated revenue in gas sales must be
reduced by $2.0 million; 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 Six Million Six Hundred Seven Thousand
Three Hundred Seven Dollars ($6,607,307) 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 One Million Seven Hundred Thousand
Dollars ($1,700,000) is hereby transferred from the Gas Fund
Distribution Rate Stabilization 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 from
$2,962,000 to ($1,605,307) and reduce the Gas Fund Distribution Rate
Stabilization Reserve from $3,509,000 to $1, S09, 000 for a net
balance of $203,693 in the Gas Fund.
SECTION 4. Gas Fund revenues are increasing by a net of Three
Hundred Forty Thousand Dollars ($340,000) as a result of thisBAO.
SECTION 5. As specified in Section 2.2S.0S0(a) of the Palo
Al to 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: July 31, 2000
AYES: BEECHAM, BURCH, EAKINS, FAZZINO, KLEINBERG, KNISS, LYTLE,
MOSSAR
NOES:
ABSTENTIONS:
ABSENT: OJAKIAN
ATTEST:
APPROVED AS TO FORM:
{2-lA.="4k1 c' vJ '. ~-~
tenior Asst. City Attorney
THIS OOCUIYIEm IS CERTIFIED TO BE AN
ORflINAfI,!C:: DULY PASSED BY THECQUNCIL or. TH~: C!TY OF PAolO ALTO AND
nn'::;!:~~-JER POSTSP 1).1 T'ir:. COUNCIL CI-ItL"'~I""SOI'J ,~.vQP , (WITHIN'S
DAY5 m ITS PASSAGE)
"I om'my (Ot decl£lre) under penalty
of pOl'jl!ry that the foregoing is true
and correct." ~~~I~:t';~':' ~;~ t a Plaat ~" Signaturo
APPROVED:
Administrative