HomeMy WebLinkAbout1996-03-11 City Council (14)C ty
City of Palo
Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: Planning and
Community Environment
AGENDA DATE:
SUBJECT:
March 11, 1996 CMR: 167:96
Approval of Additional Funding for Planning Full Cost Recovery
Program (FY 1995-96) and Budget Amendment Ordinance
REQUEST
The Council is requested to approve the attached Budget Amendment Ordinance, providing
an additional $100,000 to the Planning Department to fund the continued use of contract
planners for the remainder of the 1995-96 fiscal year. The increased expense would be offset
by an equivalent increase in the Planning Division revenues.
RECOMMENDATIONS
Staff recommends that the Council approve the attached Budget Amendment Ordinance in
the amount of $100,000 to fund contract planners.
POLICY IMPLICATIONS
The Planning Division Full Cost Recovery Fee program was adopted by Council in 1992.
This Budget Amendment Ordinance allows the continuation of that program.
EXECUTIVE SUMMARY
Under the Planning Division’s Full Cost Recovery Program, applicants for five different
types of planning entitlements are assessed fees based on the full cost of processing the
application. This program allows the Division to utilize additional planning staff on a
contractual basis to process some of these applications. The cost of the contract planners is
offset by the cost recovery fees.
For 1995-96, the Division operating budget included $90,000 for the use of contract planners
to work on applications subject to full cost recovery (an additional $48,700 is available in a
carryover encumbrance from fiscal year 94-95, for a total of $138,700). This amount was
based on staffs estimates of the number of applications that might be processed this year.
However, application activity has been significantly higher than expected, primarily due to
CMR:167:96 Page 1 of 3
the extended time line and subsequent fast tracking of the Palo Alto Medical Foundation
project; and as a result, 80 percent of the available funds have already been expended.
Current cost recovery projects being processed include the Palo Alto Medical Foundation
relocation, the related Stanford proposals in the Sand Hill Corridor, the Hyatt Cabana
redevelopment, a residential subdivision at 315 Everett Street and redevelopment of 483
University Avenue.
In order to complete processing of these current applications, as well as anticipated
applications, an additional $100,000 is requested. Planning Division revenues will be raised
by an equivalent amount to offset the increase. Currently, Division revenues received during
the first six months of the fiscal year are ahead of projections, as indicated below.
Current Budget 6-Month
Budget After BAO Actual
Total Division $584,880 $684,880 $500,970
Revenue
Cost Recovery
Revenue Only
132,100 232,100 227,960
Cost Recovery
Planner Expenses
138,700 238,700 113,100
FISCAL IMPACT
The increased expenditures will be offset by increased revenues, so no negative fiscal impact
is expected to result.
ENVIRONMENTAL ASSESSMENT
No environmental assessment is necessary.
ATTACHMENT
Budget Amendment Ordinance
CMR:167:96 Page 2 of 3
PREPARED BY: Lori Topley
DEPARTMENT HEAD REVIEW:
KENNETH R. SCHREIBER
Director of Planning and
Community Environment
CITY MANAGER APPROVAL:
CMR: 167:96 Page 3 of 3
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1995-96 TO
PROVIDE AN ADDITIONAL APPROPRIATION FOR THE DEPARTMENT OF
PLANNING AND COMMKINITY ENVIRONMENT FOR THE HIRING OF
CONTRACT PLANNERS.
WHEREAS, pursuant to the provisions of Section 12 of
Article III of the Chapter of the City of Pa!o Alto, the
Council on June 19, 1995 did adopt a budget for fiscal year
1995-96; and
WHEREAS, the Planning Department regularly provides timely and
responsive permit processing to its customers; and
WHEREAS, several major application projects are in progress;
and
WHEREAS, use of temporary professional planners assures the
maintenance of current customer service levels for all permit
applicants; and
Whereas, the estimated funding need for contract planning
services is $!00,000; and
WHEREAS, funding for the temporary planner(s) would be covered
by application fee revenues; and
WHEREAS, City Council authorization is needed to amend the
1995-96 budget as hereinafter set forth.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION I. The sum of One Hundred Thousand Dollars ($I00,000)
is hereby appropriated to non-salary expenses in the Advance
Planning Functional Area in the Planning Department, to be funded
from user fees; accordingly, Service Fee Revenue in the Planning
Department is increased One-Hundred Thousand Dollars ($i00,000).
SECTION 2. 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 4. The Council of the City of Palo Alto hereby finds
that the enactment of this ordinance is not a project under the
California Environmental Quality Act and, therefore, no
environmental impact assessment is necessary.
SECTION 5. 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 Deputy City Manager
Director of Planning
Community Development
and
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