HomeMy WebLinkAbout1997-01-09 City CouncilCity of Palo Alto
......................................................................................................................... CityM anagerls Report
TO:HONORABLE CITY COUNCIL
FROM:
DATE:
SUBJECT:
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
JANUARY 9, 1997 CMR:104:97
RESPONSES TO FINANCE COMMITTEE QUESTIONS
CONCERNING ACCELERATION OF BUILDINGS AND
FACILITIES INFRASTRUCTURE IMPROVEMENTS
REQUEST
This is an informational report responding to questions raised during the Finance
Committee’s review of the "Module 1 Buildings and Facilities" report (CMR:466:96) of the
City’s Infrastructure Plan..
EXECUTIVE SUMMARY
During the November 19, 1996 Finance Committee discussion of Module I of the City’s
Infrastructure Plan: Buildings and Facilities (CMR:466:96), staff was asked to explore the
implications of accelerating building and facility improvements. Specifically, staff was
asked to return with a feasible level of funding using Certificates of Participation as a
financing mechanism and to provide general information on staffing levels needed to
implement any funded infrastructure improvements. In the longer term, staff was asked to
explore creation of an Infrastructure Sinking Fund.
Funding Through Certificates of Participation
The Buildings and Facilities Report identified $30 million of improvements over the next ten
years. In a first phase funding of infrastructure work, staff recommends raising an estimated
$10 million through the use of Certificates of Participation. This funding would be used over
a three-year period tO implement prioritized improvements. Debt financing $10 million
worth of capital workwould add about $0.85 million per year to General Fund debt service
obligations.
CMR:104:97 Page 1 of 2
Buildings that may be targeted for work in the first phase include the Children’s and College
Terrace Libraries, and the Junior Museum. Already scheduled for seismic improvements,
these buildings would also be scheduled for mechanical and electrical upgrades, roof
replacement, ADA corrections and other improvements identified in the City’s Infrastructure
Management Study.
Guidelines for Staffing Levels for Proposed Infrastructure Work
Currently, the Public Works Department has a backlog of capital project work, which is
being partially addressed through prioritization and efficiency measures. An accelerated
building infrastructure program will require additional staffing in the Public Works
Department, if current workload and priorities are to be maintained. The amount of staffing
required will depend on the type and size of the projects to be approved from this
combination of sources, a review of priorities, and a workload analysis. These issues will
be discussed in detail in the 1997-98 operating budget.
Infrastructure Sinking Fund
Staff will return to Council during its 1997-98 Budget Issues Session with proposed policy
guidelines for establishing an Int~astructure Sinking Fund. As preliminarily envisioned, the
sinking Fund would be funded as the financial health of the General Fund permits and would
be used for projects that would not be as feasible to finance with debt.
PREPARED BY:John Carlson, Acting Assistant Director of Public Works
Joe Saccio, Senior Financial Analyst, Administrative Services
Department
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
CC: n/a
Harrison
Deputy City Manager,
CMR:104:9"/Page 2 of 2