HomeMy WebLinkAbout2000-12-18 Ordinance 4671ORDINANCE NO. 4671
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 $1,026,642 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 fifty percent
since the December 1999 forecast due to several factors relating to
supply and demand; and
WHEREAS, the Council on July 17, 2000 did adopt a fifteen-
percent retail gas rate increase effective August I, 2000 generating
$2.3 million in gas supply revenueSi and
WHEREAS, an estimated $1,026,642 beyond the adjusted amount
budgeted is required for gas commodity purchases; and
WHEREAS, a twenty-five percent rate increase effective January
I, 2001 will generate an additional $2.1 million in gas sales
revenue in fiscal 2000-01, fully offset increasing gas commodity
costs and partially replenish reserve fund levels; and
WHEREAS, as a result of lower revised sales volume subsequent
to adoption of the budget, the aforementioned additional revenue in
gas distribution sales must be reduced by $1.6 million, resulting
in net increasing sales revenues of $500,000 for the Gas Fund; and
WHEREAS,
below Council
transfer from
to achieve an
the Gas Fund Supply Rate Stabilization Reserve is
recommended guidelines and requires a $3.2 million
the Gas Fund Distribution Rate Stabilization Reserve
adequate funding level; 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 Twenty-Six Thousand Six
Hundred Forty-Two Dollars ($1,026,642) 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. 'rhe sum of Three Million Two Hundred Thousand
Dollars ($3,200,000) 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
increase the Gas Fund Supply Rate Stabilization Reserve from
($735,307) to $1,438,051 and reduce the Gas Fund Distribution Rate
Stabilization Reserve from $5,655,000 to $2,874,999 for a net
balance of $4,313,050 in the Gas Fund.
SECTION 4. Gas Fund revenues are hereby increased by a net of
Five Hundred Thousand Dollars ($500,000).
SECTION 5. 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 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: December 18, 2000
AYES: Beecham, Burch, Eakins, Fazzino, Kleinberg, Kniss, Lytle, Mossar,··
Ojakian
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
k7t~ Cify Clerk ~
APPROVED AS TO FORM:
~LJ,~
~. City Attorney
THrs DOCUMENT IS CERTII=IED TO BE AN
ORDINANCE DULY PASSED BY THE COUNCIL
OF THE CITY OF PALO ALTO AND .
TW:R!:.-Ai-iER POSTED ~(r.fE COUNCIL
CH'ArnERS ON ' h «-PD ( (WITHIN t8
DAYS or-ITS PASSAGE) .
"I certify (or decl8re) under penalty
of perjury ~hat the foregoing is true
and correct."
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APPROVED:
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