HomeMy WebLinkAboutStaff Report 5692
City of Palo Alto (ID # 5692)
Finance Committee Staff Report
Report Type: Action Items Meeting Date: 6/16/2015
City of Palo Alto Page 1
Summary Title: City Council Budget and Table of Organization Amendment
Approval
Title: Amendment of Municipal Code Section 2.28.080 regarding City Council
Budget and Table of Organization Amendment Approvals
From: City Manager
Lead Department: Administrative Services
Recommendation
Staff recommends that the Finance Committee recommend to the City Council to amend
Municipal Code Section 2.28.080 titled Amendments after Adoption which would change the
City Council budget and table of organization amendment approval from an ordinance to a
motion.
Recommended Motion
The Finance Committee recommends to the City Council to amend Municipal Code Section
2.28.080 titled Amendments after Adoption which would change the City Council budget and
Table of Organization amendment approval from an ordinance to a motion.
Executive Summary
Annually the City Council adopts the City’s budget and the Table of Organization. Throughout
the fiscal year, primarily due to unforeseen circumstances, staff requests that the budget for
various funds be amended. Less frequently, the Table of Organization is amended. Palo Alto
Municipal Code section 2.28.050, titled amendments after adoption, states, in part, that during
the fiscal year the City Council may amend the City’s budget and the Table of Organization by
ordinance through approval of budget amendment ordinances.
Staff recommends that the City Council approve budget and table of organization amendments
by motion versus ordinance. This change would avoid duplicative work and add the specific
budget and Table of Organization amendment recommendations to the recommendation
language of the staff report. In instances where a multitude of amendments are
recommended, such as the Midyear Budget Review, amendments would be detailed in an
attachment referenced in the motion.
City of Palo Alto Page 2
Background
Annually the City Council adopts the City’s budget and the Table of Organization. Throughout
the fiscal year, primarily due to unforeseen circumstances, staff requests that the budget for
various funds be amended. Less frequently, the Table of Organization is amended. Reasons for
budget amendments include the acceptance of grants and the related expenditure, requests for
funding to support Council initiatives, insufficient funding of capital projects due to higher
construction costs, or corrections to the approved budget. In Fiscal Year 2015, the Table of
Organization was amended as part of outsourcing the street sweeping service, the addition of a
Principal Attorney position as part of approval of the Fiscal Year 2015 Midyear Budget review,
and technical adjustments as part of approval of the Management and Professional
Compensation Plan.
Palo Alto Municipal Code section 2.28.050 titled Amendments after Adoption states in part that
during the fiscal year, the City Council may amend the City’s budget and the Table or
Organization by ordinance.
Discussion
When staff brings forward a report with a recommendation to amend the budget or the Table
of Organization, a separate Budget Amendment Ordinance (BAO) is prepared and attached to
the report. The separate budget amendment ordinance is required, since Palo Alto Municipal
Code Section 2.28.050 states in part that the City Council is required to amend the budget or
Table of Organization by ordinance. After approval, the BAO is assigned a number by the
Clerk’s Office and routed for signature to the Mayor, the City Manager, the City Attorney’s
Office, the Administrative Services Director, and to the department director whose budget was
amended. Unlike most ordinances, a BAO becomes effective upon adoption and does not
require a second reading.
The BAO contains the same information in summary form as the staff report, such as the
background, discussion of the staff report, and a California Environmental Quality Act
statement. The recommended budgetary transactions or specific Table of Organization
changes are the only additional information provided in the BAO. In order to ensure
consistency between the staff report and the BAO, staff spends significant time to write the
BAO. In general, the Office of Management and Budget spends about an hour for preparation,
coordination, review, and final processing for each BAO.
In order to increase efficiencies in the preparation of staff reports which include budget and
Table of Organization amendment recommendations, staff proposes that the Council adopt
budget and Table of Organization amendment recommendations by motion instead of by
ordinance. The attached draft ordinance identifies the recommended Municipal Code changes
(Attachment A).
If these changes in the Municipal Code are recommended for approval by the Finance
Committee and approved by the Council, staff will include the specific budget and Table of
City of Palo Alto Page 3
Organization amendment recommendations in the recommendation language of the staff
report, versus creating a separate BAO or Table of Organization Ordinance. Further, this
change would streamline the staff report preparation process and save staff time. Attachment
B provides an example (first page only) of a recently approved staff report (CMR #5558,
Approval of a Residential Curbside Compostable Collection Program) and attached BAO with
the relevant budget amendment section highlighted in the BAO. Attachment C exemplifies how
the recommendation language for the same staff report would be written, if Finance
Committee approves staff recommendation to adopt budget amendments by motion. As
another step to provide relevant budgetary information, staff will include available reserve
balances in the Recommendation and Resource Impact sections of the staff report. This will
occur after the issuance of the Fiscal Year 2015 Comprehensive Annual Financial Report (CAFR),
as the audited financial statements provide staff with the Fiscal Year 2015 ending fund balances
for all funds, which become the Fiscal Year 2016 beginning fund balances. Once the actual fund
balances are known, staff can determine available fund balances and the impact of
recommended actions on these fund balances.
Timeline
If the Finance Committee approves this change in the Municipal Code, staff will bring forward
the recommendation to the City Council in August 2015.
Resource Impact
If approved by the City Council, this change in the budget amendment process will allow staff to
spend its time on higher value activities.
Environmental Review
This is not a project under the California Environmental Impact Report.
Attachments:
Attachment A: Draft Ordinance Amending Section 2.28.080 of Chapter 2 Fiscal
Procedures (PDF)
Attachment B: CMR 5558, Approval of Residential Curbside Compostable Collection
Program (first page only) and Budget Amendment Ordinance (PDF)
Attachment C: New Budget Amendment Recommendation Language for CMR 5558
(PDF)
NOT YET APPROVED
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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Section 2.28.080
(Amendments after Adoption) of Chapter 2.28 (Fiscal Procedures) of the Palo
Alto Municipal Code to __________________
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Section 2.28.080 Amendments after Adoption of Chapter 2.28 (Fiscal
Procedures) of the Palo Alto Municipal Code is amended to read as follows:
2.28.080 Amendments after adoption.
During the fiscal year, the city manager shall amend the budgetary accounts of the city to
reflect the following:
(a) Additional Appropriations. By a two‐thirds vote, the council may make additional
appropriations of receipts that are in excess of the total estimated receipts and appropriations
contained in the adopted budget.
(b) Additional Positions. By a majority vote, the council may add positions to the table of
organization.
(c) Transfer of Appropriations.
(1) By a majority vote, the council may transfer part or all of the unencumbered balance of
any appropriation from one fund, department, office, or capital project to another;
(2) By written authorization, the city manager may direct the redistribution, within any
department or office, of the unencumbered balance of appropriations within the departments
or offices, provided that he or she shall not make transfers from the classification of utilities
purchased for resale to any other object or make transfers between funds or transfers between
departments without the affirmative vote of a majority of the council;
(3) By written authorization, the city manager may authorize a transfer of appropriation from
the unallocated balance of the contingent account to any department, office or capital project.
Funds shall not be transferred between the general fund and the enterprise funds, nor between
operating and capital funds.
(d) Transfer of Positions. By written authorization, the city manager may transfer positions or
assign personnel from any department or office under the control of the city manager to
another in accordance with Article IV, Section 6(n) of the Charter.
(e) Inter‐fund Transactions. In the event that appropriations and equivalent offsetting credits
for allocated inter‐fund services or transfers are affected by amendments to appropriations for
Deleted: by ordinance
Deleted: by ordinance
Deleted: by ordinance
ATTACHMENT A
NOT YET APPROVED
150325 jb 0131328 2
direct expenditures or estimated revenue, the city manager may make corresponding
adjustments to the inter‐fund accounts so affected.
(f) Salaries and Benefits. Amendments to the Employee Classification and Compensation Plan
adopted by the council pursuant to Article III, Sections 12, 18 and 21 of the Charter.
(g) Prior year Encumbrances. Appropriations that were encumbered by properly executed,
but uncompleted, purchase orders or contracts at the close of the previous fiscal year may be
carried forward and incorporated with appropriations of the current year.
(h) Municipal Fee Schedule. By a majority vote, the council may, by ordinance, add or change
fees in the municipal fee schedule.
SECTION 2. The City Council finds that this ordinance is exempt from the
provisions of the California Environmental Quality Act pursuant to Section 15061(b)(3) of the
California Environmental Quality Act Guidelines, because it can be seen with certainty that
there is no possibility of significant environmental effects occurring as a result of the adoption
of this ordinance.
SECTION 3. This ordinance shall become effective upon the commencement
of the thirty‐first day after the date of its adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
___________________________ _____________________________
Senior Asst. City Attorney City Manager
____________________________
Director of Administrative Services
ATTACHMENT A
City of Palo Alto (ID # 5558)
City Council Staff Report
Report Type: Action Items Meeting Date: 3/23/2015
City of Palo Alto Page 1
Council Priority: Environmental Sustainability
Summary Title: Approval of a Residential Curbside Compostable Collection
Program
Title: Approval of a Residential Curbside Compost Collection Program and
Adopting a Budget Amendment Ordinance for $387,000 for the Purchase of
Kitchen Buckets and New Outreach Materials
From: City Manager
Lead Department: Public Works
Recommendation
Staff recommends that Council:
1.Approve a new residential curbside collection and composting program of
food scraps commingled with yard trimmings in the green carts, effective
July 1, 2015; and
2.Adopt the attached Budget Amendment Ordinance in the amount of
$387,000 to fund the purchase of kitchen buckets and outreach materials
that are needed as part of the implementation of the new residential
curbside compost collection program.
Executive Summary
The implementation of the GreenWaste Contract in 2009 added several zero
waste programs that boosted the City’s diversion rate (from landfills) from 62% in
2008 to approximately 78% in 2013. While this diversion rate is one of the
highest in the state, it has not increased as desired over the past few years to help
the City meet its Zero Waste Goal by 2021. The next big step in the City’s efforts
to attain its zero waste goals is getting food scraps out of the landfill, as they
make up 50% of residential garbage – over 5,000 tons landfilled annually.
ATTACHMENT B
1
Revised December 08, 2014
5238/eb
Ordinance No. XXXX
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING
THE BUDGET FOR FISCAL YEAR 2015 TO PROVIDE ADDITIONAL
APPROPRIATION OF $387,000 IN THE REFUSE FUND FOR THE
RESIDENTIAL FOOD SCRAPS PROGRAM.
The Council of the City of Palo Alto does ordain as follows:
SECTION 1.
A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of
Palo Alto, the Council on June 16, 2014 did adopt a budget for Fiscal Year 2015; and
B. Staff is recommending a new residential food scraps collection and composting
program that would be implemented July 1, 2015 as part of the City’s efforts to meet its
goal of zero waste to landfills by 2021; and
C. Food scraps comprise nearly fifty percent of the material found in single-family
residential garbage in Palo Alto. Currently, these food scraps can only be disposed in
garbage cans. Other residents send food scraps down the drain, which is not
recommended due to additional water usage and the potential for sewer blockages.
Neither of these methods is appropriate for meat, cheeses, eggs, or other foods high in
protein or oil; and
D. In April 2013, the City implemented a year-long Two Cart Pilot Program in the
Green Meadow neighborhood that eliminated garbage carts completely and redirected
food scraps to compostable bags and into the yard trimming cart. Residents in the pilot
were asked to bag any remaining garbage and place it in the recycling carts; and
E. While the Two Cart Pilot Program did increase diversion of food scraps and
additional recyclables from the landfills, staff is not recommending a citywide roll-out of
the two-cart collection system at this time, as many participants felt that the program
was too complicated. City intends to continue the pilot for calendar year 2015; and
F. Under the new program, the city-wide collection of residential food scraps would
be commingled with yard trimmings. There are several regional composting facilities
that are permitting compost being commingled with food scraps and yard trimmings.
The food scraps collection program will likely divert and recover over half of the food
scraps in the residential garbage, which is equivalent to a four percent increase in the
City’s overall diversion rate; and
G. An initial investment of $387,000 will be needed to purchase kitchen pails and
provide the outreach and training materials needed for implementation. Outreach and
training materials will include cart tags, program brochures, stickers for collection carts,
stickers for the kitchen pails, how-to-video, and informational postcards with program
ATTACHMENT B
2
Revised December 08, 2014
5238/eb
information. The annual net costs associated with the new residential food scraps
collection and composting program are currently anticipated to be $532,000, and are
expected to be recovered through an increase in the single-family residential refuse rate
pending City Council approval as part of the Fiscal Year 2016 budget process.
SECTION 2. Therefore, the sum of Three Hundred Eighty Seven Thousand Dollars
($387,000) is hereby appropriated in the Refuse Fund for the residential food scraps
program, offset by a corresponding reduction to the ending fund balance ($387,000).
SECTION 3. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this
ordinance shall become effective upon adoption.
SECTION 4. 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.
INTRODUCED AND PASSED: Enter Date Here
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Senior Assistant City Attorney City Manager
____________________________
Director of Administrative Services
____________________________
Director of Public Works
ATTACHMENT B
Recommendation
Staff recommends that Council:
1. Approve a new residential curbside collection and composting program of
food scraps commingled with yard trimmings in the green carts, effective
July 1, 2015; and
2. Approve an amendment to the Fiscal Year 2015 Adopted Budget for the
Refuse Fund by:
a. Increasing the budget by $387,000 to fund the purchase of kitchen
buckets and outreach materials that are needed as part of the
implementation of the new residential curbside compost collection
program; and
b. Decreasing the Rate Stabilization Reserve by $387,000.
Executive Summary
The implementation of the GreenWaste Contract in 2009 added several zero
waste programs that boosted the City’s diversion rate (from landfills) from 62% in
2008 to approximately 78% in 2013. While this diversion rate is one of the
highest in the state, it has not increased as desired over the past few years to help
the City meet its Zero Waste Goal by 2021. The next big step in the City’s efforts
to attain its zero waste goals is getting food scraps out of the landfill, as they
make up 50% of residential garbage – over 5,000 tons landfilled annually.
Staff proposes to start residential curbside compost (e.g., food scraps and food
soiled paper) collection in July 2015. The new program will allow residents to
place loose food scraps and food soiled paper directly into the ‘green’, yard
trimmings cart. Residents will also be given a kitchen bucket to store a few days’
worth of food scraps in the house before depositing it in the green cart. This
program will reduce community greenhouse gas emissions by over 1,140 metric
tons of CO2 equivalent each year. The program will incur annual (net) cost
increases of approximately $532,000 to compost and/or anaerobically digest food
scraps commingled with yard trimmings. The resulting increase in costs to
residents would be approximately 6.1% (about a $2.63 per month increase for a
32 gallon‐sized garbage service). Staff is also requesting a one‐time Budget
Amendment Ordinance (BAO) for $387,000 to fund the purchase of the kitchen
buckets and print new program outreach materials.
ATTACHMENT C