HomeMy WebLinkAbout1998-12-14 City Council (23)City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: UTILITIES
13
DATE:
SUBJECT:
DECEMBER 14, 1998 CMR:455:98
REQUEST FOR APPROVAL OF A BUDGET AMENDMENT
ORDINANCE IN THE AMOUNT OF $200,000 FOR STANFORD
WEST UNDERGROUND EXTENSION CIP PROJECT 9901
RECOMMENDATION
Staff recommends that Council adopt the attached Budget Amendment Ordinance (BAO) in
the amount of $200,000 for the Stanford West Underground Extension Project, Capital
Improvement Program Project 9901 and increase revenues in Customer Design and
Connection Services functional area by $160,000.
DISCUSSION
The Electric Fund Capital Improvement Project includes the electric system rebuilding and
expansion for the construction of the Stanford West Project. The system expansion will
include the connection of new buildings, adding new distribution facilities in the public right
of way, and rerouting of existing facilities. In 1999-00, Quarry Road will be widenedand
the electrical facilities will need to be relocated to accommodate the road widening.
Construction for the electrical system for the apartment buildings and the Senior Housing
Project will begin in 2000-01.
During the preliminary stages of the Stanford West Project, the Electric Utility anticipated
spending $100,000 in 1998/99 and $400,000 in 1999/00. Since the time of the budget
submittal, the impacts on existing electric facilities and the required expansion of the electric
system have been more clearly defined.
In 1998/99, a total of approximately $300,000 will be required to meet the construction
schedule as proposed by SMC. This funding will be used for a temporary pole line relocation
on Sandhill Road ($50,000), and the underground utilities relocation for the Stanford
Shopping Center Parking Structure ($250,000). To meet this requirement the Stanford West
CMR:455:98 Page 1 of 2
Underground Extension Project (CIP’9901) will need an additional $200,000 above the
current budget of $100,000. The Electric Utility will be reimbursed for approximately 80
percent of the cost by SMC. The remaining 20 percent of the cost will fund system electrical
equipment such as transformers and switches which are provided by the Electric Utility.
The attached amendment will increase this year’s funds from $100,000 to $300,000.
RESOURCE IMPACT
The $200,000 requested will be taken from the Electric Distribution Rate Stabilization
Reserve and be added to the Electric Fund, Stanford West Underground Extension Project,
Capital Improvement Program project (CIP-9901). Approximately 80 percent of the cost
of this budget amendment will be reimbursed by SMC. The remaining funds for this project
will be included in the F¥ 1998-99, and in the proposed 1999-00 Electric CIP Budget.
POLICY IMPLICATIONS
This report does not represent any change to existing City.policies.
ENVIRONMENTAL REVIEW
This Underground Extension Project is exempt from the California Environmental Quality
Act (CEQA). However, this project is being done in furtherance of the Stanford Sandhill
Coordinating Project, for which the City Council certified an Environmental Impact Report
on June 30, 1997.
ATTACHMENTS
Budget Amendment Ordinance
PREPARED BY: Sager Farraj, Senior Power Engineer
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
JUNE FLEMING
City Manager
CMR:455:98 Page 2 of 2
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1998-99 TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $200,000 FOR THE
STANFORD WEST UNDERGROUND EXTENSION CAPITAL PROJECT
NIJMBER 9901
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June
22, 1998 did adopt a budget for fiscal year 1998-99; and
WHEREAS, the Stanford West Underground Extension Capital
Project 9901 was established to fund the electric system rebuilding
and expansion for the construction of the Stanford West Project; and
WHEREAS, the Electric Utility funded $i00,000 for fiscal year
1998-99 to cover the cost of the Stanford West Underground Extension
Project; and
WHEREAS, an additional $200,000 will be required to meet the
construction schedule as proposed by the Stanford Management Company
(SMC); and
WHEREAS, SMC will reimburse the Electric Utility $160,000 of
the additional cost; and
WHEREAS, City Council authorization is needed to amend the
1998-99 budget as hereinafter set forth.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION i. The sum of Two Hundred Thousand Dollars ($200,000)
is hereby appropriated to Capital Improvement Project Number 9901,
Stanford West Underground Extension.
SECTION 2. Revenue in the Electric Fund is increased by the sum
of $160,000 to reflect reimbursement from Stanford Management
Company for a portion of the work.
SECTION 3. The remaining funding of $40,000 will come from a
reduction in the Electric Distribution Rate Stabilization Reserve
of $40,000.
SECTION 4. This transaction will reduce the Electric
Distribution Rate Stabilization Reserve from $8,012,000 to
$7,972,000.
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 underground extension project itself is exempt
from the provisions of the California Environmental Quality Act
(CEQA). However, this project is being done in furtherance of the
stanford Sand Hill Corridor projects, for which the City Council
certified an Environmental Impact Report on June 30, 1997.
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:
NOES:
ABSTENTIONS:
ABSENT :
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:City Manager
Senior Asst. City Attorney Director of
Services
Administrative
Director of Utilities