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HomeMy WebLinkAboutStaff Report 5940 City of Palo Alto (ID # 5940) Finance Committee Staff Report Report Type: Action Items Meeting Date: 9/22/2015 City of Palo Alto Page 1 Summary Title: Approval of Fiscal Year 2015 Reappropriation Requests to be Carried Forward into Fiscal Year 2016 Title: Approval of Fiscal Year 2015 Reappropriation Requests to be Carried Forward Into Fiscal Year 2016 From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the Finance Committee approve the Fiscal Year 2015 reappropriations to be carried forward into Fiscal Year 2016 and direct staff to forward the Finance Committee’s recommendation to the City Council. Background As a part of the fiscal year-end process, staff reviews the City’s unencumbered and unspent appropriations of the fiscal year just ended, along with the City’s spending plans. Encumbered amounts are those subject to the legal claims of other parties due to contractual obligations (for example, commitments made through purchase orders), which are carried forward from one fiscal year to the next. However, each year there are a small number of important projects which staff was not able to complete or encumber funds for. The reappropriation process allows staff to bring forward funding recommendations to the Finance Committee and City Council to continue these projects. On September 22, 2014, the City Council approved a recommendation to amend Chapter 2.28, Section 2.28.090 of the Municipal Code, reducing the previous two-step reappropriations process (preliminary and final reappropriation authorization) to one step as long as the Administrative Services Director certifies that sufficient unencumbered and unexpended funds are available in the current Fiscal Year to be carried forward to the subsequent Fiscal Year. Additionally, the City Council amended the Municipal Code to eliminate the provision allowing for the automatic reappropriation of capital project funds. Previously, the Municipal Code stated that appropriations of capital project funds should continue until the project was completed or no funds had been expended for two years. Effective Fiscal Year 2016, the City of Palo Alto Page 2 Finance Committee reviewed and the Council approved a capital budget which includes all active projects. Since capital projects may be delayed for various reasons, unexpended funds are carried forward in two ways from the outgoing to the new fiscal year. As part of the approval of the Fiscal Year 2016 budget, based on estimates, the majority of unexpended and unencumbered funds were carried forward from Fiscal Year 2015 to Fiscal Year 2016. Now that the Fiscal Year 2015 has closed and staff has processed necessary accounting transactions any unexpended and unencumbered funds for each capital project are reviewed one more time. Based on that review, staff recommends that for some projects in various funds remaining Fiscal Year 2015 capital dollars are reappropriated to Fiscal Year 2016. Also, as part of this review, staff realized that for some projects too much funding was recommended for reappropriation as expenditures occurred in Fiscal Year 2015. Therefore, this staff report also recommends reversing a portion of previously authorized reappropriations. Discussion As noted above, the changes to the Municipal Code from last year allow for the reappropriation of unencumbered and unexpended funds in advance of the normal year-end closing ordinance as long as the Administrative Services Director certifies that sufficient unencumbered and unexpended funds are available in Fiscal Year 2015 to be carried forward to Fiscal Year 2016. Attachment A identifies those operating budget reappropriation requests that staff recommends for approval, while Attachment B lists recommended capital project reappropriations. With the submission of this report for Finance Committee consideration, the Administrative Services Director certifies sufficient unencumbered and unexpended funds are available in Fiscal Year 2015 to be carried forward to Fiscal Year 2016. The projects for which operating budget reappropriations are recommended can generally be grouped into the following categories:  Timing and Workload Delays: Certain projects were delayed due to competing workload demands, appropriation of funds late in the fiscal year, or other unanticipated delays. Examples of projects in this category include Document Scanning and Management Services ($66,000), Temporary Staffing for the Purchasing division ($51,000), Business Registry Program ($99,050), Police Utilization Study ($70,000), Airport On-Call Consultant ($40,987), Storm Water Rebates ($55,710) and Santa Clara Valley Water District MOU ($400,000).  Technology Services: Funding was approved in Fiscal Year 2015 for a number of technology system evaluation and upgrade projects but contracts were not awarded by the end of the fiscal year. Projects in this category include Geographic Information Systems (GIS) Evaluation of the City’s GIS solutions ($82,500), Palo Alto 3-1-1 implementation ($40,000), Mobile Device Management Solution ($75,000), and Police Interview Recording System ($40,000). City of Palo Alto Page 3  Residential Housing In-Lieu Fund: Due to the timing of Council’s action approving loans and staffing constraints, transactions with Palo Alto Housing Corporation (PAHC) were not completed in Fiscal Year 2015 for some projects. Continuation of the housing transactions will require reappropriation of Residential Housing In-Lieu Funds for the following properties: loan for PAHC purchase of 2811-2825 Alma Street ($600,000), loan for PAHC renovation of Stevenson House at 435 E. Charleston Road ($1,000,000), and loan for PAHC rehabilitation and deed restriction of Pine Street property at 110-130 El Dorado ($375,000). Staff expects to be able to execute and conclude the agreements with PAHC for these projects in Fiscal Year 2016.  Library Donation and Grant: This action reappropriates $339,845 in revenue and offsetting expenses as a result of donations and grants received by the Library. In early Fiscal Year 2015 the Library was awarded two grants from the Pacific Library Partnership (PLP): one in the amount of $4,485 to offset delivery costs for LINK+, an interlibrary loan program for participating organizations; and a $15,000 grant for the Maker+: A Summer Maker Program to support STEAM (Science, Technology, Engineering, Art & Math) learning and to foster interdisciplinary exploration among sciences, art, and social sciences. In addition, in June 2015, the City received a $320,000 donation from the Palo Alto Library Foundation. The Library intends to use $100,000 for the purchase of additional technology, such as tablets, e-readers, and other devices for staff development and customer instruction; $112,100 for databases and digital services, such as Learning Express, Mango Languages, and online video, magazines, and music; and $107,900 on contractual services to improve workflow efficiency, provide staff training, and customer service improvements for the new facilities and new products.  Teen Services Programs: At the June 2, 2014 City Council meeting, the City Council approved a recommendation from the Policy and Services Committee to use a portion of the net revenue collected from 455 Bryant Street in Fiscal Years 2009 through 2013 to fund Teen Programs for Fiscal Year 2015 (CMR #4776). Staff was to return to the City Council with another plan six months after the opening of the Mitchell Park Community Center where the Teen Center is located to discuss the best use of the facility and programming for Teen Services at the Teen Center and elsewhere throughout the City utilizing the Bryant Street funds. Staff is expecting to return to the City Council in the fall of 2015 with a funding plan for Fiscal Year 2016 and beyond. Teen Services programming includes but is not limited to: makeX, Project Enybody, Click PA, Ghost Bike, and Ceramics class drop-ins. As a result, this action will reappropriate $331,046 to continue supporting these programs as well as a sustainable, long-term approach for Teen Services utilizing Bryant Street funds.  Management and Professional Development funds: A number of City employees, as part of their compensation plan, are eligible for certain self-improvement activities. These funds are available to certain employees for civic and professional association memberships, conference participation and travel, educational programs, certain tuition City of Palo Alto Page 4 costs, and professional and trade journal subscriptions. Unspent funds are recommended to be carried over to Fiscal Year 2016 to improve and supplement the job and professional skills of employees ($145,000).  Establish Contingency Account – Planning, Community & Environment Department: To establish a contingency account for the Planning and Community Environment Department to set aside funds related to planning, parking, and transportation related funding needs ($500,000). In accordance with the Palo Alto Municipal Code, the use of contingency funding requires the approval of the City Manager.  Capital Reappropriations: As discussed in the Background section of this report, starting with the Fiscal Year 2016 capital budget, all capital project reappropriations require City Council approval. The Adopted Budget included approximately $51.1 million in reappropriated funds, across all City funds based on estimates of anticipated spending in Fiscal Year 2015. Since the adoption of the capital budget, some adjustments and refinements to project reappropriations are required since Fiscal Year 2015 year end actuals and projects costs have been updated. For some projects, additional reappropriations are recommended, as project expenditures originally anticipated to occur before the end of Fiscal Year 2015 will now likely occur in Fiscal Year 2016. Additionally, some expenditures not anticipated to occur until Fiscal Year 2016 and therefore reappropriated in the budget document to Fiscal Year 2016 have been realized in Fiscal Year 2015, requiring downward adjustments for Fiscal Year 2016. The table on the following page summarizes the recommended net reappropriation adjustments as detailed in Attachment B. These Fiscal Year 2016 adjustments represent the final step in the City Council approved change to the reappropriation process. There are sufficient expenditure savings in Fiscal Year 2015 to support all recommended reappropriation adjustments. It should be noted that as a result of this revised process and active review of all project reappropriations, a reduced level of carryforward from one year to the next is recommended than by automatically carrying forward all unspent capital funding. As part of the detailed review of capital projects which started with the development of the Fiscal Year 2016 Capital Budget and is concluding with the recommendations contained in this CMR, a total of $10.8 million is being returned to reserves across several funds that otherwise would have been reappropriated under the prior model, including $4.7 million in the Capital Improvement Fund. City of Palo Alto Page 5 Fund Number of Projects Recommended Reappropriation Adjustment Capital Improvement Fund* 61 $5,099,421 Airport Fund 1 $34,359 Electric Fund 26 $703,741 Fiber Optics Fund 2 $35,319 Gas Fund 5 ($245,727) Storm Drainage Fund 4 ($40,606) Wastewater Collection Fund 6 $370,570 Wastewater Treatment Fund 3 ($2,387,156) Water Fund 13 $5,995,001 Technology Fund 11 $641,422 Vehicle Replacement and Maintenance Fund 4 $1,074,511 Total All Funds 136 $11,280,855 *Includes an increase of $32,692 for the Monroe Park Improvements project (PG-11002) due to higher than anticipated costs, as outlined in CMR 6025, to be considered by the City Council on 9/21/2015. Resource Impact The majority of requested items have been previously reviewed and approved by City Council as part of annual budget processes. The Director of Administrative Services has certified that sufficient funds exist for the recommended Fiscal Year 2015 Operating Budget reappropriations (Attachment A) and Capital Budget reappropriations (Attachment B). For Fiscal Year 2016, staff recommends $1.7 million in carryover funds in the General Fund, $0.5 million in Enterprise Funds, $0.2 in Internal Service Funds and $2.0 million in Special Revenue Funds. For capital projects staff recommends $5.1 million to be reappropriated in the Capital Improvement Fund, net $4.5 million in the various Enterprise Funds, and $1.7 million in the Internal Service Funds. Policy Implications This recommendation is consistent with adopted Council policy. Environmental Review (If Applicable) The action recommended is not a project for the purposes of the California Environmental Quality Act. Attachments:  Attachment A - Operating Reapprop FY15 to FY16 (PDF)  Attachment B- Capital Reappropriations (XLSX)  Attachment C - BAO XXXX - FY15 to FY16 Reappropriation (PDF) Attachment A Fiscal Year 2015 Reappropriations 1 Finance Committee September 22, 2016 General Fund Department Fund Amount Recommended Reappropriation Justification Administrative Services Department General Fund $66,000 Document Scanning and Retrieval Services: In 2014, the Administrative Services Department (ASD) started on a pilot to scan existing documents and store them electronically. The pilot was successfully completed with the Purchasing and Accounts Payable sections. Based on the experience from the pilot, the City issued a citywide Request for Proposal for scanning paper documents and storing them electronically ASD, Planning and Community Environment, Utilities, and Public Works-Engineering. With reappropriating $66,000 ASD will be able to continue its efforts to easily retrieve scanned documents, especially for Information requests, free up limited office space, and have an organized cloud retrieval structure. ASD’s scanning for FY 2015 and FY 2016 is scheduled to be completed in FY 2016 with 253,000 total number of scanned images with an average cost per scan of $0.26. Administrative Services Department General Fund $51,000 Temporary Staffing: The Purchasing Division of the Administrative Services Department (ASD) is undergoing rapid change due to the eProcurement initiative. With this initiative, there is a parallel, heavy workload for the Division’s contract administrators. Temporarily adding a Management Specialist hourly position will help to balance the demands of the eProcurement process implementation and the workload of regular staff. Community Services Department General Fund $331,046 Teen Programs / Bryant Street Garage Rent Revenue: At the June 2, 2014 City Council meeting, the City Council approved a recommendation from the Policy and Services Committee to use a portion of the net revenue collected from 455 Bryant Street in Fiscal Years 2009 through 2013 to fund Teen Programs for Fiscal Year 2015 (CMR #4776). Staff was to return to the City Council with another plan six months after the opening of the Mitchell Park Community Center where the Teen Center is located to discuss the best use of the facility and programming for Teen Services at the Teen Center and elsewhere throughout the City utilizing the Bryant Street funds. Staff is expecting to return to the City Council in the fall of 2015 with a funding plan for Fiscal Year 2016 and beyond. Teen Services programming includes but is not limited to: makeX, Project Enybody, Click PA, Ghost Bike, and Ceramics class drop-ins. As a result, this action will reappropriate $331,046 to continue supporting these programs as well as a sustainable, long-term approach for Teen Services utilizing Bryant Street funds. Community Services Department General Fund $50,000 Human Services Resource Allocation Program (HSRAP) Reserve: At the June 9, 2014 City Council meeting, the Council established a $50,000 reserve for the Human Services Resource Allocation Process as part of the Budget Adoption for Fiscal Year 2015. Since the reserve was funded as a one-time appropriation and remains unspent, this action will reappropriate the reserve balance of $50,000 into Fiscal Year 2016. Development Services Department General Fund $99,050 Business Registry: As part of Council directive, the Development Service Department in coordination with the City Manager’s Officer began working on a two phase project to implement an online Business Registry Certificate program. To implement the program, the City Council authorized initial funding of $250,000 (CMR #5146) and a Fiscal Year 2015 reappropriation request of $35,000 (CMR #5647) for phase I of the Business Registry Program which included initial start-up costs for Accela integration, staffing, and outreach. Because the work on phase I is continuing, this action will reappropriate $99,050 for staffing and continued community outreach efforts. Human Resources Department General Fund $145,000 Management Development and Training: Funding will be used to continue the citywide management training program that began in Fiscal Year 2015. Training programs will focus on the following areas: Ethics, Civics and Citizen Engagement, Leadership and Management, Budget, Finance, Procurement, Interpersonal Communication, Presentation Skills, Business Writing, Time Management, Project Management, Change Management, SkillSoft (online based education), and Safety & Security. Approval of this action also requires approval of the Fiscal Year 2015 Year-End Budget Amendment Ordinance (scheduled for a November Finance Committee meeting), which recommends consolidating General Fund savings for training across various departments into the Human Resources (HR) Department in Fiscal Year 2015 in order to reappropriate the full amount into HR in Fiscal Year 2016. Library Department General Fund $339,985 Library Foundation Donation & Pacific Library Partnership Grant: This action reappropriates $339,845 in revenue and $339,845 in expenses as a result of donations and grants received by the Library. In early Fiscal Year 2015 the Library was awarded two grants from the Pacific Library Partnership (PLP): one to be used for a summer 2015 program with expenses incurred in Fiscal Year 2016, and one in the amount of $4,485 to offset delivery costs for LINK+, an interlibrary loan program for participating organizations. LINK+ is a union catalog of contributed holdings from participating libraries in California and Nevada. Patrons from member libraries electronically request an item not available in their own library and the item is delivered to the requested library for check‐out. A $15,000 grant was received from PLP for the Maker+: A Summer Maker Program to support STEAM (Science, Technology, Engineering, Art & Math) learning and to foster interdisciplinary exploration among sciences, art, and social sciences. By participating in the program, students will discover solutions for today's social issues through technology. The program includes opportunities for people of all ages to participate in a week long structured programming at the Rinconada and Mitchell Park libraries. In addition, in June 2015, the City received a $320,000 donation from the Palo Alto Library Foundation. The Library intends to use $100,000 for the purchase of additional technology, such as tablets, e-readers, and other devices for staff development and customer instruction; $112,100 for databases and digital services, such as Learning Express, Mango Languages, and online video, magazines, and music; and $107,900 on contractual services to improve workflow efficiency, provide staff training, and customer service improvements for the new facilities and new products. Planning and Community Environment Department General Fund $500,000 Establish Planning & Community Environment Contingent Account: This action reappropriates $500,000 of the $1,000,000 million shuttle reserve from the Fiscal Year 2015 Non-Departmental budget to be used as a contingency account for unanticipated expenses as a result additional City Council direction related to planning, parking, or transportation. Police Department General Fund $78,000 Police Utilization Study: In Fiscal Year 2013, funding was allocated for the Police Department to hire a consultant to conduct a utilization study of overall police operations; however, the study was not completed due to competing workload demands. The funds were reappropriated to Fiscal Year 2014 and Fiscal Year 2015; however, the Department was unable to conduct the utilization study due to other projects that took precedence (Tri-City Computer Aided Dispatch, Records Management System, Patrol Vehicle Mobile Audio Video, etc.). Reappropriation of these funds will allow Police Department staff to determine the scope of the study, integrate it into their workload, and hire a consultant to conduct the study. Police Department General Fund $40,000 Police Interview Recording System: The Interview Recording System that provides cameras, audio equipment and storage for interviewing suspects, witness and victims unexpectedly failed in Fiscal Year 2015 and needs to be replaced. The existing system has failed repeatedly and the Department attempted to replace it as quickly as possible in May and June 2015. The Department completed a Request for Proposal and no responses were received. Therefore, with thsi funding, the Department will issue a new RFP and increase its vendor outreach efforts with the hope of receiving viable proposals for the replacement of the system. $1,700,081 Total General Fund Reappropriations Attachment A Fiscal Year 2015 Reappropriations 2 Finance Committee September 22, 2016 Enterprise Funds Department Fund Amount Recommended Reappropriation Justification Public Works Department Airport Fund 530 $40,987 Airport On-Call Planning & Environmental Consultants: In October 2014 Council approved two on-call consultant contracts for airport related work: one for design and construction administration services and one for planning and environmental services. At the end of June three purchase requests submitted for the airports on-call planning and environmental consultant were inadvertently cancelled. Therefore, staff requests to reappropriate the funds so that the following projects can continue: 1. Development of an Extraordinary Circumstance Information Submittal (CATEX) for review by the Federal Aviation Administration’s (FAA) San Francisco Airport District Office (SF-ADO). The CATEX is being prepared for approval under the National Environmental Policy Act (NEPA) relative to a potential future apron rehabilitation project at Palo Alto Airport with possible future reimbursement under the FAA grant.2. Development of DBE goals for the airport as required by the FAA for inclusion in grant application submittals. 3. Planning, implementing and facilitation of a charrette with key community stakeholders to discuss a vision and goals for the Airport; share potential strategies to integrate sustainability into the Airport’s management, planning, operation, maintenance, and development; and generate/prioritize potential sustainability initiative ideas to be considered by the City. Public Works Department Storm Drainage Fund 528 $55,710 Storm Water Rebates: In April 2005, the majority of Palo Alto property owners voted to increase the Storm Drainage Fee (CMR 244:05). In addition to the seven proposed CIP projects to be completed by 2017, the fee increase provided an annual innovative projects budget. These funds have been utilized since Fall 2008 to fund a Stormwater Rebate Program that offers financial incentives to residents and businesses for the installation of measures that reduce stormwater runoff, including rain barrels, cisterns, permeable pavement, and green roofs. Staff proposes that these funds be reappropriated because they have been specifically earmarked for funding of innovative storm drain projects per the terms of the 2005 Storm Drainage Fee ballot measure approved by Palo Alto property owners. As the rebate program has not generated sufficient demand to spend the budgeted funds, we are researching alternatives that may garner the desired environmental result. Utilities Water Fund 522 $400,000 Santa Clara Valley Water District MOU: On February 10, 2015, Council approved a Budget Amendment Ordinance to appropriate $400,000 from the Water Fund Reserve to increase the 2014-2016 Memorandum of Understanding with the Santa Clara Valley Water District for the Administration and Funding of Water Conservation Programs (the “2014-2016 MOU”) to increase the City of Palo Alto’s (City) three-year $735,915 total cost obligation by $500,000 to $1,235,915. Inadvertently, the approved funds were not encumbered before the end of the year. Therefore, it is recommended to carry forward the funding to fiscal year 2016 in order to fund the contract. $496,697 Total Enterprise Funds Reappropriations Attachment A Fiscal Year 2015 Reappropriations 3 Finance Committee September 22, 2016 Internal Services Funds Department Fund Amount Recommended Reappropriation Justification Information Technology Department Technology Fund 682 $82,500 Geographic Information System Evaluation: The Geographic Information System (GIS) Evaluation Project was approved as part of the Fiscal Year 2015 Budget to contract with a consultant to perform an analysis of the City's current GIS environment and determine how updated GIS solutions align with the City's needs and goals. The City's current GIS solution has been in place for over 20 years and needs to be evaluated and updated to reduce IT application and infrastructure support costs, improve flexibility and offer GIS mobile services for field and remote staff. The IT Department planned to award the assessment to a vendor prior to the end of Fiscal Year 2015; however, a vendor was not selected before the June 30 deadline. Information Technology Department Technology Fund 682 $40,000 Palo Alto 3-1-1: The Palo Alto 3-1-1 Project was approved as part of the Fiscal Year 2015 Budget to route all 3-1-1 calls to the City's telephone system. The 3-1-1 service will allow the City to be more responsive to the needs of the residents, business owners, and visitors, and these groups will only need to know two numbers to access all City of Palo Alto services: 9-1-1 for emergencies and 3-1-1 for all non-emergency and other City services. The IT Department planned to award the project prior to the end of Fiscal Year 2015; however, a vendor was not selected before the June 30 deadline. Information Technology Department Technology Fund 682 $75,000 Mobile Device Management Security Solution: The Mobile Device Management (MDM) Security Solution Project was approved as part of the Fiscal Year 2015 Budget to secure, monitor, manage, and support mobile devices used by City staff. MDM software protects these devices from cyber security threats and allows designated staff to remotely erase data from a mobile device in the event it is lost or stolen. The Department planned to select a solution prior to the end of Fiscal Year 2015; however, a solution is still being evaluated and the deadline was not met. $154,000 was originally appropriated for this project in Fiscal Year 2015, however, after further evaluation by the IT Department, only $75,000 will be needed to award the project, and the remaining funding will be returned to the Technology Surcharge Reserve for future technology enhancement projects. $197,500 Total Internal Service Funds Reappropriations Attachment A Fiscal Year 2015 Reappropriations 4 Finance Committee September 22, 2016 Special Revenue Funds Department Fund Amount Recommended Reappropriation Justification Planning and Community Environment Department Residential Housing In-Lieu Fund 233 $600,000 Palo Alto Housing Corporation Loan for 2811 Alma: This action reappropriates $600,000 in the Residential Housing In-Lieu Fund for use by the Palo Alto Housing Corporation (PAHC) for a loan and promissory note for property located at 2811-2825 Alma Street (CMR #5197). In 2011, the Palo Alto Housing Corporation (PAHC) entered into negotiations with the owners of 2811-2825 Alma Street and submitted a $1.89 million offer for the purchase of these two parcels. The offer was accepted and escrow closed in December 2011. At that time, however, the City did not have sufficient fund balances in its housing funds to provide the $1.89 million loan, and was only able to provide $1.29 million. To make up the difference, the Opportunity Fund of Santa Clara County provided a two year, $600,000 short term loan for the project acquisition with the understanding that the City would repay the short term loan, which was set to expire in December 2014. With Council’s approval of this action, the City new $600,000 loan defeased the Opportunity Fund loan and the City is the sole lender on the project. However, due to staffing constraints, this transaction has not yet been executed. With this recommended action, staff expects to execute and conclude the agreement with PAHC in the fall of Fiscal Year 2016. Planning and Community Environment Department Residential Housing In-Lieu Fund 233 $1,000,000 Stevenson House Rehab Loan: Stevenson House, located at 435 E. Charleston Road, has been serving extremely low, very low, and low income Palo Alto seniors for 47 years. Built in 1968, Stevenson House consists of 120 studio and one bedroom units. In addition to providing affordable housing, it offers services, meals and social programs for its residents. This action reappropriates $1,000,000 in the Residential Housing In-Lieu Fund to effectuate the $1,000,000 City loan for the renovation of Stevenson House (CMR# 5526) and the consolidation of outstanding Community Development Block Grant (CDBG) loans consistent with the funding commitment previously approved by the City Council on November 5, 2012 (CMR #3176). However, due to staffing constraints, this transaction has not yet been executed. With this recommended action, staff expects to execute and conclude the agreement with PAHC in the fall of Fiscal Year 2016. Planning and Community Environment Department Residential Housing In-Lieu Fund 233 $375,000 Loan Associated with Pine Street Sale: This action reappropriates $375,000 in the Residential Housing In-Lieu Fund for use by the Palo Alto Housing Corporation (PAHC) to rehabilitate and deed restrict three units located at 110 - 130 El Dorado (CMR #5712). Due to the timing of Council’s action approving this activity and staffing constraints, this transaction has not yet been executed. With this recommended action, staff expects to execute and conclude the agreement with PAHC in the fall of Fiscal Year 2016. $1,975,000 Total Special Revenue Funds Reappropriations $4,369,278 Total - All Reappropriations Attachment B Capital Reappropriations Project ID Project Title Fund Reappropriation Adjustment AP-15003 Apron and Taxi Lane Repair Airport 34,359 PF-93009 Americans with Disabilities Capital Improvement Fund 200,853 AC-14000 Art Center Auditorium Audio, Visual, and Furnishings Capital Improvement Fund 19,802 AC-86017 Art in Public Places Capital Improvement Fund (55,550) OS-09002 Baylands Emergency A Capital Improvement Fund 602 PE-15029 Baylands Interpretive Center Improvements Capital Improvement Fund (26,859) PE-14018 Baylands Interpretive Center Improvements Capital Improvement Fund 2,205 PL-04010 Bicycle & Pedestrian Transportation Plan - Implementation Project Capital Improvement Fund (21,886) PE-13008 Bowden Park Capital Improvement Fund 1,053 PF-01003 Building Systems Improvements Capital Improvement Fund (129,236) PE-13020 Byxbee Park Trails Capital Improvement Fund 268,652 PL-11002 California Avenue Streetscape Improvements Capital Improvement Fund 183,613 PE-13011 Charleston Arastrade Capital Improvement Fund (33,391) PE-09003 City Facility Parking Capital Improvement Fund 286,310 PE-12017 City Hall 1st Floor Capital Improvement Fund 253,086 PE-13005 City Hall/King Plaza Capital Improvement Fund 7,020 PF-01002 Civic Center Infrastructure Capital Improvement Fund (434) PE-15020 Civic Center Waterproofing Study and Repairs Capital Improvement Fund (78,492) PF-14000 Cubberley Roof Replacements Capital Improvement Fund 1,442 PO-12001 Curb & Gutter Repair Capital Improvement Fund 186 PE-13017 EC Median Landscape Capital Improvement Fund (17,573) PE-13016 El Camino Park Expand Capital Improvement Fund 10,123 PL-14000 El Camino Real & Churchill Avenue Intersection Improvements - Design Capital Improvement Fund 8,652 PL-15001 Embarcadero Corridor Capital Improvement Fund 200,710 PF-15005 Emergency Facility Improvements Capital Improvement Fund (13,532) PF-02022 Facility Interior Finishes Replacement Capital Improvement Fund (27,828) PF-14002 Fire Station 1 Improvements Capital Improvement Fund 863 LB-11000 Furniture and Technology for Library Projects Capital Improvement Fund (5,711) PG-13003 Golf Reconfig & Bayland Athletics Center Capital Improvement Fund 34,954 PE-13010 Greer Park Renovatio Capital Improvement Fund 33,075 PE-11011 Highway 101 Pedestrian Capital Improvement Fund 943,638 PE-09010 Library & Community Center Capital Improvement Fund 2,277 PE-14015 Lucie Stern Building Capital Improvement Fund 7,130 PE-12013 Magical Bridge Playg Capital Improvement Fund 100,888 PE-11000 Main Library New Construction Capital Improvement Fund (14,079) PL-14001 Matadero Creek Trail Capital Improvement Fund 14,204 PE-09006 Mitchell Park Library Capital Improvement Fund 2,483,343 PG-11002 Monroe Park Improvements Capital Improvement Fund 270,996 OS-09001 Off-Road Pathway Resurfacing and Repair Capital Improvement Fund 1,033 OS-00001 Open Space Trails & Amenities Capital Improvement Fund (14,991) PE-15022 Palo Alto Community Gardens Irrigation System Capital Improvement Fund (47,296) PG-09003 Park Maintenance Sho Capital Improvement Fund 84,419 PE-13003 Parks Master Plan Capital Improvement Fund 6,725 PE-08001 Rinconada Park Improvements Capital Improvement Fund 1,271 PE-12003 Rinconada Park Master Capital Improvement Fund 4,833 PF-15000 Rinconada Pool Locker Capital Improvement Fund (23,068) PF-00006 Roofing Replacement Capital Improvement Fund (198,002) PF-07011 Roth Building Maintenance Capital Improvement Fund 3,201 PL-00026 Safe Routes to School Capital Improvement Fund (49,092) PG-12004 Sarah Wallis Park Improvements Capital Improvement Fund 65,000 PO-89003 Sidewalk Repairs Capital Improvement Fund (132,345) PO-11000 Sign Reflectivity Upgrade Capital Improvement Fund (40,542) PG-13001 Stanford / PA Soccer Turf Replacement Capital Improvement Fund 722,740 PG-12001 Stanford/Palo Alto P Capital Improvement Fund 47,198 PO-05054 Street Lights Improvements Capital Improvement Fund 21,841 PE-86070 Street Maintenance Capital Improvement Fund (471,182) PE-13014 Streetlights Conditi Capital Improvement Fund 78 PE-13012 Structural Assessment Capital Improvement Fund 1,143 PE-11012 Temporary Main Library Capital Improvement Fund 83,438 PO-11001 Thermoplastic Lane Marking and Striping Capital Improvement Fund (12,000) PL-05030 Traffic Signal and ITS Upgrades Capital Improvement Fund (30,043) PL-12000 Transportation and Parking Improvements Capital Improvement Fund 163,956 EL-02010 SCADA System Upgrades Electric (17,015) EL-02011 Electric Utility GIS Electric 75,000 EL-04012 Utility Site Securit Electric 33,719 EL-05000 El Camino Undergroun Electric (200,000) EL-06001 230 kV Electric Inte Electric (3,441) EL-06002 UG District 45 Electric 59,271 Attachment B Capital Reappropriations EL-09000 Middlefield Undergro Electric (282,906) EL-10006 Rebuild UG Dist 24 Electric 53,968 EL-10009 Street Light System Electric (23,259) EL-11003 Rebuild UG Dist 15 Electric (1,133) EL-11006 Rebuild UG Dist 18 Electric 164,587 EL-11008 Rebuild UG Dist 19 Electric 3,926 EL-11010 UG District 47 - Mid Electric (601,553) EL-11014 Smart Grid Technolog Electric 1,395 EL-12000 Rebuild UG Dist 12 Electric 9,028 EL-12001 UG District 46 - Cha Electric (976) EL-13006 Sand Hill / Quarry 1 Electric (25,028) EL-13008 Upgrade Estimating S Electric (20,000) EL-14004 Maybell 1&2 4/12kV C Electric (121,029) EL-14005 Reconfigure Quarry F Electric (61,119) EL-15001 Substation Battery R Electric 69,251 EL-89028 Electric Customer Co Electric 402,508 EL-89031 Communications Syste Electric (60,307) EL-89038 Substation Protectio Electric 18,713 EL-89044 Substation Facility Electric (55,640) EL-98003 Electric System Imp Electric 1,285,781 FO-10000 Fiber Optic Customer Fiber Optic (48,703) FO-10001 Fiber Optic Network Fiber Optic 84,022 GS-03009 Sys Extensions Operations - Unreimbursed Gas 726 GS-11002 Gas System Improvement Gas (67,511) GS-12001 Gas Main Replacement - Project 22 Gas (199,920) GS-13002 Gas Equipment and Tools Gas 17,869 GS-80019 Gas Meters and Regulators Gas 3,109 SD-06102 San Francisquito Creek Storm Water Pump Station Storm (631) SD-06101 Storm Drain System Replacement and Rehabilitation Storm 58,190 SD-13003 Matadero Creek Storm Water Pump Station and Trunk Lines Improvements Storm (110,762) SD-11101 Channing/Lincoln Storm Drain Improvements Storm 12,597 TE-00010 Telephone System Repair Technology (38) TE-01012 IT Disaster Recovery Technology 43,479 TE-05000 Radio Infrastructure Technology 1,000,000 TE-06001 Library RFID Implementation Technology 4,369 TE-09000 Public Safety Computer-Aided Dispatch Replacement Technology (292,044) TE-10001 Utilities Customer Bill System Improvements Technology 502 TE-11001 Library Computer System Software Technology (64,019) TE-12001 Development Center Blueprint Technology Enhancement Technology (117,312) TE-13004 Infrastructure Management Syste Technology 80,431 TE-14002 Library Virtual Branch Technology (20,000) TE-95016 Permit Information Tracking System Technology 6,054 VR-14000 Schedule Vehicle and Equipment Replacement - Fiscal Year 2014 Vehicle (30,395) VR-13000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2013 Vehicle 22,770 VR-15001 Emergency Repair and Replacement Vehicle 47,347 VR-15000 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2015 Vehicle 1,034,789 WC-10002 Wastewater Collection System Rehabilitation/Augmentation Project 23 Wastewater Collection 758,010 WC-11000 Wastewater Collection System Rehabilitation/Augmentation Project 24 Wastewater Collection (90,474) WC-12001 Wastewater Collection System Rehabilitation/Augmentation Project 25 Wastewater Collection (80,641) WC-13001 Wastewater Collection System Rehabilitation/Augmentation Project 26 Wastewater Collection (66,657) WC-14001 Wastewater Collection System Rehabilitation/Augmentation Project 27 Wastewater Collection (51,716) WC-80020 Sewer System, Customer Connections Wastewater Collection (97,952) WQ-10001 Plant Master Plan Wastewater Treatment (66,000) WQ-14001 Dewatering and Loadout Facility Wastewater Treatment (2,301,219) WQ-04011 Facility Condition Assessment Wastewater Treatment (19,937) WS-02014 Water, Gas, Wastewater Utility GIS Data Water (9,500) WS-07000 Water Regulation System Improvements Water 785,585 WS-08001 Water Reservior Coating Improvements Water 2,160,306 WS-08002 Emergency Water Supply Project Water (6,919) WS-09000 Seismic Water System Upgrades Water 3,501,875 WS-11000 Water Main Replacement - Project 25 Water (282,944) WS-11003 Water Distribution System Improvements Water (49,710) WS-11004 Water System Supply Improvements Water (110,352) WS-12001 Water Main Replacement - Project 26 Water 27,995 WS-13004 Asset Management Mobile Deployment Water (1,652) WS-15004 Water System Master Plan Water (1,001) WS-80014 Water Service Hydrant Replacement Water 1,789 WS-80015 Water Meters Water (20,471) Total- All Funds 11,280,855 1 Ordinance No. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING THE REAPPROPRIATION OF FISCAL YEAR 2015 FUNDS TO FISCAL YEAR 2016 The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto and as set forth in Section 2.28.070 of the Palo Alto Municipal Code, the Council on June 16, 2014 did adopt a budget for Fiscal Year 2015; and B. Fiscal Year 2015 has ended and the financial results, although subject to audit adjustment, are now available. C. The Administrative Services Director certifies that sufficient funds are available in Fiscal Year 2015 in applicable funds to be reappropriated to Fiscal Year 2016. SECTION 2. The Council hereby re-appropriates Fiscal Year 2015 appropriations in certain departments and categories, as shown in Attachment A for the operating budget and Attachment B for the capital budget, which were not encumbered by purchase order or contract, into the Fiscal Year 2016 budget. SECTION 3. The Fiscal Year 2016 General Fund Budget Stabilization Reserve is hereby decreased by the sum of One Million Seven Hundred Thousand Eighty One Dollars ($1,700,081) as described in Attachment A. SECTION 4. The Fiscal Year 2016 Airport Reserve is hereby decreased by the sum of Forty Thousand Nine Hundred Eighty Seven Dollars ($40,987) as described in Attachment A and decreased by the sum of Thirty Four Thousand Three Hundred Fifty Nine ($34,359) as described in Attachment B. SECTION 5. The Fiscal Year 2016 Electric Distribution Rate Stabilization Reserve is hereby decreased by the sum of Seven Hundred Three Thousand Seven Hundred Forty One Dollars ($703,741) as described in Attachment B. SECTION 6. The Fiscal Year 2016 Residential Housing In-Lieu Fund is hereby decreased by the sum of One Million Nine Hundred Seventy Five Thousand Dollars ($1,975,000) as described in Attachment A. Attachment C 2 SECTION 7. The Fiscal Year 2016 Fiber Optics Rate Stabilization Reserve is hereby decreased by the sum of Thirty Five Thousand Three Hundred Nineteen Dollars ($35,319) as described in Attachment B. SECTION 8. The Fiscal Year 2016 Gas Distribution Rate Stabilization Reserve is hereby increased by the sum of Two Hundred Forty Five Thousand Seven Hundred Twenty Seven Dollars ($245,727) as described in Attachment B. SECTION 9. The Fiscal Year 2016 Storm Drainage Rate Stabilization Reserve is hereby decreased by the sum of Fifty Five Thousand Seven Hundred Ten Dollars ($55,710) as described in Attachment A and increased by the sum of Forty Thousand Six Hundred Six Dollars ($40,606) as described in Attachment B for a net decrease to the reserve of Fifteen Thousand One Hundred Four Dollars ($15,104). SECTION 10. The Fiscal Year 2016 Technology Fund is hereby decreased by the sum of One Hundred Ninety-seven Thousand Five Hundred Dollars ($197,500) as described in Attachment A and decreased by the sum of Six Hundred Forty One Thousand Four Hundred Twenty Two Dollars ($641,422) as describe by Attachment B. SECTION 11. The Fiscal Year 2016 Wastewater Collection Rate Stabilization Reserve is hereby decreased by the sum of Three Hundred Seventy Thousand Five Hundred Seventy Dollars ($370,570) as described in Attachment B. SECTION 12. The Fiscal Year 2016 Wastewater Treatment Rate Stabilization Reserve is hereby increased by the sum of Two Million Three Hundred Eighty Seven Thousand One Hundred Fifty Six Dollars ($2,387,156) as described in Attachment B. SECTION 13. The Fiscal Year 2016 Water Rate Stabilization Reserve is hereby decreased by the sum of Four Hundred Thousand Dollars ($400,000) as described in Attachment A and decreased by the sum of Five Million Nine Hundred Ninety Nine Thousand and One Dollars ($5,995,001) as described by Attachment B. SECTION 14. The Fiscal Year 2016 Vehicle Replacement and Maintenance Fund Reserve is hereby decreased by the sum of One Million Seventy Four Thousand Five Hundred Eleven Dollars ($1,074,511) as described in Attachment B. SECTION 15. The Capital Projects Fund Reserve is hereby decreased by the sum of Five Million, Ninety Nine Thousand Four Hundred Twenty One Dollars ($5,099,421) as described in Attachment B. SECTION 16. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 17. The Council of the City of Palo Alto hereby finds that this is not a Attachment C 3 project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: ________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ________________________ ____________________________ City Attorney City Manager ____________________________ Director of Administrative Service Attachment C