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HomeMy WebLinkAbout1999-05-27 City Council (3)TO: ATTENTION: BUDGET ’99 ’ ’01 HONORABLE CITY COUNCIL FINANCE COMMITTEE City of Palo Alto City Manager’s Report This report was submitted to the Finance Committee at its meeting on May 25, 1999. FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE: SUBJECT: MAY 27, 1999 CMR:266:99 RESPONSES TO FINANCE COMMITTEE QUESTIONS DURING REVIEW OF THE PROPOSED 1999-01 BUDGET AND RECOMMENDED CHANGES TO THE PROPOSED 1999-01 BUDGET RECOMMENDATION Staff recommends that the Finance Committee approve the Proposed 1999-01 Budget, detailed in Attachments A through F. changes to the BACKGROUND This report responds to the questions raised by the Finance Committee during its review of the Proposed 1999-01 Budget. It also contains the changes made by the Finance Committee to the Proposed Budget and those changes proposed by staff for items that have come up since the Proposed Budget document was printed. DISCUSSION Finance Committee Questions and Requests for Information Why is there a difference between the 1999-00 Proposed Budget for the Street Improvement Fund ($3.5 million, Page 513, Vol. I) and the Street Improvement Fund expenditures ($.9 million, Page 415, Vol. I)? The $3.5 million represents the total amount budgeted for transfer to the Capital Improvement Fund (CIP) from the Street Improvement Fund (SIF). Of this $3.5 million, $2.6 million (page 420) goes to support the Streets Maintenance CIP (9630) and $.9 million supports the remaining SIF CIP projects (page 415 and page 422). CMR:266:99 Page 1 of 8 o What is the decrease in landfill rent according to the plan that extended and lowered the landfill rent and in what year does the landfill rent go down? This plan was established a couple of years ago. The schedule below identifies the appraised value of the rent for the landfill each year and projects this value into the future using a three-percent inflation factor. The second column below identifies the steady stream of rental payments that the Refuse Fund is currently paying. In 2005-06, the rent charges revert to a level consistent with the projected appraised valuation. It should be noted that the level payment stream has ’been extended from eight years to ten years. When the final phase of the landfill is closed, the Refuse Fund will owe the General Fund $3.7 million, which is identified as the payment in 2012-13. This plan has changed from the original projections because the phase of the landfill that will be closed in 2000-01 has been decreased from 34 acres to 23 acres. Rent is therefore higher than was originally anticipated. Staff may recommend that the rental payments be~ adjusted in the future to smooth out the payments. The effect would be to extend the payments into future years beyond 2012-13 while maintaining the payments at a consistent level. This could benefit both the General Fund and the Refuse Fund. Year Land rental Even payments Difference 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 appraisal inflation $5,177,176 $5,177,176 $5,177,176 $5,482,287 $5,482,287 $3,789,270 $3,902,949 $4,020,037 $4,140,638 $4,264,857 $4,392,803 $4,524,587 $4,660,325 $4,800,134 $4,944,138 $5,092,463 $5,245,237 $o with for 10 years $4,288,747 $4,288,747 $4,288,747 $4,288,747 $4,288,747 $4,288,747 $4,288,747 $4,288,747 $4,288,747 $4,288,747 $4,392,803 $4,524,587 $4,660,325 $4,800,134 $4,944,138 $5,092,463 $5,245,237 $3,726,383 rent inflation ($888,429) ($888,429) ($888,429) ($1,193,540) ($1,193,540) $499,477 $385,798 $268,710 $148,109 $23,890 $o $o $o $o $o $o $o $3,726,383 from with Total $80,273,540 $80,273,540 ($0) CMR:266:99 Page 2 of 8 3. How much has been saved by adding contract managers? The cost savings generated by the Purchasing Section as a result of the addition of contract managers totaled $478,658 in 1997-98 and $498,808 for the first three quarters of 1998-99. These savings have been realized through price reductions achieved from seeking competitive bids, aggressive sourcing, contract negotiations, and the elimination of poorly drafted specifications. Source of Savings 3rd Quarter 1998-99 Actual $167,837 $143,576 S95,436 1997-98 Actual Competitive Bids $329,911 Negotiation $114,957 Specification or Source $12,784 Change Process Change $9,138 $5,000 Other $82,821 $16,006 TOTAL SAVINGS $498,808 $478,658 TOTAL PURCHASES $38,898,578 $52,584,218 PERCENTAGE OF 1.3%1% PURCHASES SAVED o Purchasing will continue to monitor the cost savings generated by these positions through an impact measure, which was established in the 1997-98 Budget, "Save 5 percent of annual purchase volume through effective purchasing techniques." What items contributed to the savings indicated in the impact measure for the Consulting and Special Studies Major Activity (Page 131, ¥ol. I) for 1997-98 actuals? The 1997-98 savings resulted from working with departments to pursue alternative funding mechanisms for new programs and the identification of savings opportunities through analytical studies. These efforts resulted in savings of $110,000 as indicated in the table below. Source of Savings Identified opportunities to payments to PASCO Golf Course debt issuance TOTAL SAVINGS decrease Amount Saved $32,000 $78,000 $110,000 CMR:266:99 Page 3 of 8 5.Describe the activities that are planned for the Electric Utility Centennial Celebration. January 2000 is the anniversary of the founding of the City of Palo Alto Utilities’ publicly owned electric utility and marks its first 100 years of operation. To commemorate this important milestone, the foresight of its municipal utility founders, and the continual support of the Palo Alto community, the Utilities Department plans celebratory and educational activities during the year 2000. To inaugurate the Centennial Celebration and advance public awareness, the Utilities will be one of the co-sponsors for the City of Palo Alto Millennium Party. Sponsorship activities under evaluation include installation of electric lighting archways over street intersections similar to the historical archways, which existed near the turn of the century. Another possibility could be co- sponsorship of transportation alternatives to and/or from the event. With the sponsorship of such events, the Utilities will leverage the opportunity to promote brand awareness, signify the Centennial milestone, and remind citizens of the benefits of their community-owned utility system. The showcase event of the Electric Utility Centennial Celebration will be a three-month historical exhibit at the American Heritage Museum featuring the impact of the Utilities in the community. An opening reception at the Museum will kick-off the Centennial exhibit which will feature hands-on interactive demonstrations, antique utility equipment, educational graphic displays, and educational tours and videos. Additional events and outreach activities throughout the year may include: a booklet chronicling the history of the City of Palo Alto Utilities, a Civic Center lobby display about the history of the Utilities during Energy Awareness Month in October, the production of commemorative souvenirs with the City of Palo Alto Utilities logo for visitors to public events, and an educational campaign about the utilities which would include facility tours, schools presentations, bill inserts, newspaper ads, etc. The commemorative history booklet and interactive models are intended to be used beyond 2000 to highlight the City of Palo Alto Utilities at public speaking engagements, classroom presentations, utility industry conferences and legislative rallies. 6. Provide the Finance Committee with additional information regarding placeholders. As in previous years, there are a few placeholders included in the City Manager’s 1999-01 Proposed Budget. These items are identified on page 22 of CMR:266:99 Page 4 of 8 Volume One of the Proposed Budget in the section titled "Non-Departmental Expenditures". These placeholders are proposed for programs whose implementation plans were not fully developed at the time the Proposed Budget was finalized, but are likely to occur during the fiscal year. By establishing placeholders outside of departmental budgets, the City Manager is able to closely control the use of these funds. The Municipal Code does not allow these funds to be released without authorization of the City Manager. In addition, if there are any proposed staffing changes they must be returned to the City Council for approval. These placeholders allow for prudent fiscal planning by allocating funds for i~nticipated programs within the proposed budget under the direct control of the City Manager. The following placeholders are proposed in the 1999-01 Proposed Budget: $300,000 - Staffing needs that may be identified and are related to the Infrastructure Master Plan (IMP); The original plan estimated yearly staffing needs of approximately $500,000. This placeholder is intended to address the first few years of needs, contingent on Council approval of the recommendation contained in the IMP staffing study. $200,000 - Implementation of the first phase of the Information Technology Strategic Plan; This funding will be utilized contingent on Council approval of the recommendations in the Information Technology Strategic Plan. $150,000 - Presently unidentified future needs for Historic Preservation; At this time staff anticipates recommending the addition of a Historic Preservation Officer for ongoing Historic Preservation work in lieu of continued ongoing use of contract resources. This funding would support this position and include associated costs for the ongoing work. $50,000 - Millennium Celebration. $50,000 - To address workload and staffing issues within the Children’s Theatre. o Open Space impact measure 3 on page 196 needs a clear definition of the "A-I" standard that is referred to. Staff should also explain how trail maintenance standards are, or will be, developed. Staff recommends replacing "Systematically clear brush and maintain trail tread according to "A-I" standards on 90 percent of open space trails" with: "Maintain trails within open space areas to assure that 90 percent of the designated trails are open and accessible to hikers year round with no seasonal closures." CMR:266:99 Page 5 of 8 The goal of this impact measure is to ensure that trails are maintained in a safe condition and can be used by visitors all year. Drainage will be checked, brush trimmed back, poison oak controlled, and ruts filled. The 90 percent measurement refers to the percentage of open space trail miles that will be kept clear and passable year round. Staff will implement a process to develop written standards for the maintenance and construction of trails within open space areas. These standards should be easy to understand, practical, well grounded in environmental protection, and unique to Palo Alto’s open space goals. They should take into consideration the protection and maintenance of the natural environment and the safety, needs, and enjoyment of the varied user groups that frequent open space trails. The process would include: The creation of a review committee representing environmental concerns to assess current trail conditions, safety issues, erosion, and other maintenance needs. The identification of practical and realistic measures to minimize or avoid impact upon sensitive resources. Additionally, staff will seek assistance from the Native Plant Society to survey and index rare or endangered plant species. The compilation of trail maintenance and construction standards that have been developed by other agencies and jurisdictions, and to the extent they are useful, the incorporation of new trail maintenance standards and techniques. An analysis of how these standards were developed and how safety and environmental issues were addressed. With input from the review committee, the development of standards for open space trails that incorporate the above considerations and ensure a safe and pleasurable experience for all visitors. Once trail standards are developed, a written set of guidelines for the maintenance and construction of trails within open space will be developed. Trails will be inspected regularly and an annual maintenance schedule will be established and made accessible to the public. Items Proposed to be included in the Budget Adoption staff report There are few items that have recently been identified by staff, or discussed by the Council after the 1999-01 Proposed Budget was prepared. These items are listed CMR:266:99 Page 6 of 8 below and staff proposes adding them to the package that is forwarded to Council for adoption of the 1999-01 budget. These include: Changes to the table of organization and a new CIP Project to support the Fiber to the Home project recently approved by Council. Costs are expected to be $190,000, which include salary and benefits of $125,000 for a Senior Telecommunications Engineer, $40,000 for consultant support during RFP analysis, and $25,000 for office equipment and a new vehicle for the new engineer. Parking assessment engineering and Proposition 218 balloting services in support of the new Downtown parking structures ($80,000). Temporary Community Service Officer (0.5 FTE) for Valet parking monitoring activities ($22,000). Staff is evaluating the program for possible cost recovery opportunities. Updated General Fund and Utility Funds Summaries Attachments A and B include changes to the General Fund, Electric Fund, Refuse Fund, and CIP budgets recommended by staff. These changes are for items discussed during the Finance Committee budget hearing process or for items inadvertently omitted from the budget document. Attachments C and D include updated General Fund and Utility Fund Summaries, which have been updated to include the changes in Attachments A and B. In addition, a minor change has been included in the General Fund Summary to correctly reflect charges to City departments for use of space at Cubberley in the adjusted budget column. This provides a more accurate comparison with the proposed budget column. The Utility Fund Summary has been revised to recatagorize certain items so that the Fund Summary more closely matches the categories shown in the Fund Summary for each utility at the beginning of each chapter of Volume 2. Text Changes Suggested by the Finance Committee Identified in Attachment E are some text changes identified by the Finance Committee. These include two changes to CIP project descriptions. The major text changes are identified on this list. A more comprehensive list will be provided as part of the package that is forwarded to the Council for adoption of the budget. Recommended Changes to the Summary of Changes in Expenditures-Table Staff will recommend a new analysis of changes in revenue and expenses as part of the pages that will be forwarded to Council for final consideration of the 1999- CMR:266:99 Page 7 of 8 01 Proposed Budget. This new table will replace the table currently on Page 19, Volume I. RESOURCE IMPACT The impact of the changes to the Proposed 1999-01 Budget is provided at the end of each fund (Attachments A and B), and will be included in Exhibit B, which the full Council receives for Budget adoption. The impact on the General Fund Budget Stabilization Reserve as indicated in Attachment A is a combined decrease of $110,000 in 1999-01. Attachment C is a revised General Fund Summary reflecting the change~ in Attachment A. Attachment F reflects the "funding recommended by the Finance Committee in 1999-00 for the human service contract agencies. POLICY IMPLICATIONS These recommendations are consistent with existing City policies. ENVIRONMENTAL REVIEW There is no environmental assessment required for this report. ATTACHMENTS Attachment A Attachment B Attachment C Attachment D Attachment E Attachment F Changes to the 1999-01 Proposed Budget (General Fund) Changes to the 1999-01 Proposed Budget (Utility Funds) 1999-01 General Fund Summary 1999-01 Utility Fund Summaries Text Changes 1999-00 Proposed Human Service Contracts PREPARED BY: . Steven Montano, Senior Financial Analyst . David Ramberg, Senior Financial Analyst DEPARTMENT HEAD APPROVAL BY: ~-/--~-- ~Zi~_ CARL YEAT;~/, Director CITY MANAGER APPROVAL: CC: n/a CMR:266:99 Page 8 of 8 Z ATTACHMENT C CITY OF PALO ALTO 1999-01 GENERAL FUND SUMMARY (O00’S) REVENUE 1998-99 :."/ 199900 1997-98 Adjusted Actuals Budget Sales Taxes 20,011 20,300 Property Ta~es 8,903 9,135 Utility Users Tax 5,780 5,950 Transient Occupancy Tax 5,846 6,350 Other taxes, fines & penalties 6,694 6,686 Service fees and permits 8,872 -8,589 Charges to Other Funds 7,554 8,455 Rental Income 10,022 9,993 Other Revenues 10,036 10,434 Total Revenues $83,718 $85,892 Plus Operating Transfers In 12,824 14,439 i:i; $ Change Proposed To 1998-99 % Adjusted Change 470 2.3%! 36~4.0% (175)(2.9%) 675 10.6% 386 5.8% 1,805 21.0% 464 5.5% (154)(1.5%). 27 0.3% $3,863 $4.5% (1,451)(10.0%) From Infrastructure Reserve 0 0 ’)~ ~11i6~"1,161 100.0% EXPENDITURES 19,917 (437)(2.8%) 137 0.7% (87)(0.6%) 488 8.0% 221 1.2% (1,198)(9.3%) 2,423 38.9% 213 $1,772 $1.9% 1,893 30.3% Administrative Departments 13,306 Community Services " 17,620 Fire 13,560 14,514 Planning 5,063 6,095 Police 16,794 17,792 Public Works 10,948 12,883 Non-Departmental 5,006 6,227 To Infrastructure Reserve Total Expenditures $82,297 $92,904 Operating Transfers Out [TOTAL USEOF FUNDS, 7,891 6,248 3,689:/ 3.7%~ (116) (9.8%) $97;180 Net Surplus/(Deficit)$ 6,354 $ 1,179 $ Change Proposed To 1999-00 % Proposed Change 401 1.9% 350 3.7% 115 2.0% 1,035 14.7% 200 2.8% 605 5.8% 229 2.6% 116 1.2% (238)(2.3%) $2,813 3.1% (89)(0.7%) (5) (0.4%) 31 0.2% 76 0.4% 0 0.0% (316)(4.8%) 10 0.1% (55)(0.5%) 2,391 27.6% 367 $2,504 2.6 % (550) (6.8%) : : $ li931;",: : 1;9% $ 789 74.2% 1999-01 GENERAL FUND RESERVES (000’s) CHANGES AND BALANCES RESERVES Budget Stabilization Reserve Infrastructure * Reserve for Streets and Sidewalks Reserve for Emergencies Reserve for Encumbrances and Reappropriations Stores Inventory and Notes Receivable 1998-99 1998-99 1997-98 Adopted 1998-99 Midyear Projected Actual Changes BAO’s Adjustment 6/30/99 19,050 1,379 (3,259)1,830 19,000 12,588 1,208 13,796 263 (341)343 265 5,875 (228)(47)275 5,875 5,036 5,036 Projected 6/30/00 2,642 20,328 12,848 0 5,875 5036 2,642 2,642 ~ 2000~01 Projected, ~;Changes 2000-01 Projected 6/30/01 22,180 12,272 5,875 5O36 2,642 I * The use of the Infrastructure Reserve in 1999-200 and 2000-01 is not included in the sum of the projected changes because it is utilized as a source of funding for the fund summary above. ATTACHMENT D CITY OF PALO ALTO 1999-00 PROPOSED UTILITY FUNDS SUMMARY ($000) Wastewater Storm Electric Gas Collection Water Refuse Drainage Fund Fund Fund Fund Fund Fund Wastewater Treatment Fund REVENUES Net Sales Interest Income Other Income EXPENDITURES 57,401 15,873 9,587 13,287 ’18,624 2,124 12, 6,040 917 1,014 722 692 333 525 9,405 473 577 381 2,713 162 69 Utility Purchases 24,390 10,510 Treatment Plant Charges Refuse Collection Services Salaries and Benefits 7,019 2,504 Other Expenses 5,996 945 Allocated Charges 4,538 2,339 Debt Service 11,391 Subtotal 4,778 5,279 7,380 1,005 2,139 2,320 629 402 747 7,215 479 1,013 1,587 1,530 508 125 397 899 3,949 1,064 738 $ 53,334 $ 16,298 $ 7,323 $ 9,752 $ 18,842 $ 2,515 $ 11,148 Equity Transfer Rent Other Transfers Capital Improvement Program TOTAL USE OF FUNDS 7,316 2,475 2,044 2,174 163 88 825 4,289 73 199 113 138 38 11,629 3,136 5,263 3,045 27 $ 74,526 $ 22,271 $ 12,787 $15,804 $ 23,196 14 208 $ 2,737 0 0 9 1,660 CITY OF PALO ALTO 2000-01 PROPOSED UTILITY FUNDS SUMMARY ($000) Wastewater Storm Electric Gas Collection Water Refuse Drainage Fund Fund Fund Fund Fund Fund REVENUES Net Sales 57,202 15,945 10,779 14,889 18,624 4,995 Interest Income 6,040 917 1,014 722 692 37 Other Income 9,096 482 584 388 2,613 0 Wastewater Treatment Fund 13,244 575 70 EXPENDITURES Utility Purchases 24,142 10,520 0 0 0 Treatment Plant 0 0 5,018 5,517 0Charges Refuse Collection 0 0 0 0 7,380Services Salaries and Benefits 7,317 2,635 1,073 2,274 2,404 Other Expenses 5,908 898 398 741 7,382 Allocated Charges,4,618 2,378 1,024 1,613 1,557’ Debt Service 11,531 0 125 0 397 Subtotal $ 53,516 $ 16,432 $ 7,638 $ 10,145 $ 19,122 Equity Transfer 7,316 2,475 0 2,044 Rent 2,239 167 91 850 4,289 Other Transfers 59 39 15 28 19 Capital Improvement 9,008 3,584 5,420 3,211 1,500Program TOTAL USE OF FUNDS 0 0 795 390 514 936 $ 2,635 0 0 181 $ 72,139 $ 22,696 $ 13,164 $ 16,278 $ 24,930 $ 2,816 0 0 3,953 1,091 738 $11,431 1,560 $12,991 CITY OF PALO ALTO UTILITY FUNDS RESERVES SUMMARY ($000) ELECTRIC FUND Emergency Plant Replacement Distribution Rate Stabilization Reserve Supply Rate Stabilization Reserve Calaveras Public Benefit Program Central Valley Project O&M Shasta Rewind Loan Subtotal GAS FUND Emergency Plant Replacement Distribution Rate Stabilization Reserve Supply Rate Stabilization Reserve Subtotal 1999-00 PROPOSED CHANGES 498 2,130 (4,428) 67 0 0 *(1,6S0) 33 (2,907) (2,134) ,(5,008) 2000-01 PROPOSED CHANGES 53 1,633 3,135 (4,694) 72 0 0 $199 35 (3,253) (2,134) $(5,352) 1999-00 COUNCIL GUIDELINE 4,265 4,061- 8,122 6,927- 13,855 62,354 1,470 1,375- 2,749 1,817- 3,633 2000-01 COUNCIL GUIDELINE 4,265 4,113- 8,225 6,523- 13,045 62,354 1,470 1,381- 2,762 1,825- 3,650 WASTEWATER COLLECTION FUND Emergency Plant Replacement Rate Stabilization Reserve Subtotal WATER FUND Emergency Plant Replacement Rate Stabilization Reserve Subtotal REFUSE FUND Rate Stabilization Reserve Water Resources Board Subtotal STORM DRAIN FUND Rate Stabilization Reserve Subtotal 1999-00 PROPOSED CHANGES 16 (1,625) $(1,609) 25 (1,439) $(1,414) (1,167) 200041 PROPOSED CHANGES 28 (815) $(787) 25 (304) $(279) (3,001) 1999-00 COUNCIL GUIDELINE 1,007 2,691- 5,382 1,470 3,967- 7,935 2000-01 COUNCIL GUIDELINE 1,007 3,163- 6,326 1,585 4,521- 9,042 1,862- 3,725 0 $(1,167) (118) $(118) 0 $(3,001) 2,216 $2,216 WASTEWATER TREATMENT FUND Emergency Plant Replacement Rate Stabilization Reserve Subtotal Emergency Plant Replacement Rate Stabilization Reserve Calaveras Public Benefit Program Central Valley Project O&M Shasta Rewind Loan Water Resources Board 1999-00 PROPOSED CHANGES 2000-01 1999~0 2000-01 PROPOSED "~:":B~ANCEi~ COUNCIL COUNCIL CHANGES ~-:~’~;~:6/~0/01:~ GUIDELINE GUIDELINE 88 88 308 810 $396 $898 215 :f"?:~ 5,730-229 (6,454) "i i’I (1,713) (4,428) ~!:ii~ii:,.16. ~. ~.8_9 (’<4,694) 67 i’ ~ .~".’,. ’.’I,600:72 0 0 0 0 0 0 :,!$(i0’600);:> iI 1,421 1,421 1,893 -1,987 - 3,786 3,973 ATTACMENT E Recommended Changes to the Text of the 1999-01 Proposed Budget Cit~£ Auditor Change text in the Department Overview (Page 45, Vol. I) to include the Word "citywide" as follows: The a~dit staff will continue its focus toward operational auditing in the 1999-01 budget years and will report audit issues that result in potential citywide savings of at least 25 percent of the City Auditor’s annual budget on an annual basis. City Clerk Revise the mission statement regarding the Palo Alto Municipal Code as follows (Palo Alto Municipal Code Major Activity; Page 78, Vol. I): To manage the publication of all City ordinances in the Palo Alto Municipal Code (PAMC), provide public access to the PAMC via the Internet, and maintain the PAMC in accordance with State Laws. Administrative Services Department Question:What is the actual number of audit adjusting entries for 1997-98? Answer:This impact measure will be revised as follows (Financial Reports Major Activity; Page 116, Vol. I): Post no more than 10 adjusting journal entries after delivery of the unaudited financials to the external auditors. 1997-98 4 1998-98 Estimated Actuals 10 1999-00 Proposed Budget 10 2000-01 Proposed Budget 10 Public Works Add language as either a key plan or impact measure regarding the Development Center (Private Development Functional Area; Page 406, Vol. I): In 1999-01 implement the automated permit tracking system throughout the Development Center operation. Change key plans for Public Safety Building (Structures and Grounds Functional Area; Page 401, Vol. I) ¯Begin project development activities for the Public Safety Building including site and design approval, and environmental and architectural reviews and approval. ¯In 2000-01 develop and finalize design and construction documents for the Public Safety Building. Development Center Where appropriate the Development Center will be referenced with key plans and impact measures in the Fire and Utilities departments. Commute Coordinator The key plan associated with the Commute Coordinator will be moved from the Human Resources Department to the Planning Department Transportation Functional Area (Page 291, Vol. 1). Different position titles will be provided to the two commute coordinator positions to differentiate between the position that focuses on downtown employee commute issues and the position that manages the City commute alternatives program. Capital Improvement Program Provide more project information in the project description paragraph of the CIP 19812, Arastradero Gateway Preserve (Page 441, Vol. I). The project description is proposed to be replaced with the following text: This project phase will consist of finalizing construction plans and initiating construction of a public gateway facility at the Arastradero Preserve adjacent to the existing parking lot. The modular building, as conceptually envisioned, will consist of an office/work space with attached storage, restrooms, and a 432 square foot meeting room/classroom. The facility will be ADA accessible and will include trails to the building and landscaping. With the input of a community task force, the City Council referred the conceptual design plans for the proposed gateway facility to the Planning Commission for site and design review in October 1998. Once reviewed by the Planning Commission and the Architectural Review Board, the draft plans with recommendations will be returned to the City Council for review in 1999-00. This project phase will begin after City Council approval. Add the following language to the project description of CIP 10020, Office Space Renovation and Reallocation (Page 475, Vol. I): Work scheduled to be accomplished in 1999-00 includes the renovation and consolidation of Planning staff to the fifth floor, relocation of the City Attorney’s Office to the 8th Floor, and relocation of selected Administrative Services staff to the mezzanine level. Revise project description of Mitchell Park Facilities Improvements CIP 19803 (Page 471, Vol. I). Staff will bring to Council a revised project description on budget adoption night, June 28. Storm Drainage Fund Change the fourth key plan on page 269, Vol. II to read as follows: Work with participants of the San Francisquito Creek Joint Powers Authority (JPA), including neighboring cities, the Santa Clara Valley Water District and Coordinated Resource Management and Planning (CRMP) representatives to develop and implement short- and long-term actions to address flood and erosion control problems on San Francisquito Creek. (N-9) Utilities Language will be included in the Utility Funds Overview (Page 9, Vol. II) and the Electric Fund Overview (Page 21, Vol. II) regarding the Development Center and Fiber to the Home programs. ~ ~ 0 0 0 0 ~ ~ 0 ~ 0 0 ~~ ~ 0 ~ ~ 0 ~ ~ 0 ~ 0 0 0~q~q~qqqqq ~ ~ ~ 0 ~ ~ ~ ~ 0 ~ 0 ~ ~ ~ 00 ~ 00000000~ ~ 0 ~ ~ 0000000~ ~ 0 ~ ~ 0 ~ 00000 oo o