HomeMy WebLinkAbout1999-12-13 City Council (26)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL 11
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:DECEMBER 13, 1999 CMR:450:99
SUBJECT:REQUEST FOR APPROVAL OF A BUDGET AMENDMENT
ORDINANCE IN THE AMOUNT OF $600,000 FOR STANFORD
WEST UNDERGROUND EXTENSION CIP PROJECT 9901
RECOMMENDATION
Saff recommends that Council adopt the attached Budget Amendment Ordinance (BAO) in
ti~? amount of $600,000 for the Stanford West Underground Extension project (Capital
Improvement Program project 9901), 80 percent of which is to be reimbursed by Stanford
Management Company.
BACKGROUND
The Electric Fund Capital Improvement Program (CIP) includes project 9901 for the electric
system rebuilding and expansion required for the construction of the Stanford West Project.
The system expansion will include the connection of new buildings, new distribution
facilities in the public right of way, and the rerouting of existing facilities. During the
preliminary stages of the Stanford West Project, staff anticipated the budget for the project
to be $300,000 in FY 1998-99, $500,000 in FY 1999-00, and $600,000 in FY 2000-01.
DISCUSSION
Work planned in the 1998-99 budget (temporary pole line relocation on Sand Hill Road and
underground Utilities relocation for the Stanford Shopping Center Parking Structure) has
been completed as budgeted. Since the budget submittal, staff has had the opportunity to
meet further with the Stanford Management Company (SMC) to define the requirements of
the construction schedule for 1999-00 and 2000-01.
In 1999-00, a total of approximately $1,100,000 will be required to meet the construction
schedule as proposed by (SMC). Included in this estimate are the following projects:
CMR:450:99 Page 1 of 3
¯Relocation of the electrical and communication facilities in Quarry Road to accommodate
road widening ($300,000), - completed October 1999;
¯Electric line extension from Quarry Substation to Sand Hill Road ($230,000), - completed
in October 1999;
¯Relocation of the underground electrical facilities in Pasteur Drive ($109,000) an addition
to the original scope, scheduled to start in March 2000; and
¯Completion of the electrical distribution system within the apartment buildings
($470,000), originally planned for fiscal year 2000-2001.
Since only $500,000 was budgeted in 1999-2000 for (CIP-9901) an additional $600,000 is
required this fiscal year. Due to the acceleration of the electrical system work within the
apartments originally budgeted for 2000-2001 $300,000 will not be required.
RESOURCE IMPACT
The $600,000 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). Funding for FY 2000-01 will be reduced
by $300,000. Approximately 80 percent of the cost ($480,000) will be reimbursed by SMC.
The remaining funds for this project are included in the FY 1999-00, and in the proposed
2000-01 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 Sand Hill
Coordinating Project, for which the City Council certified an Environmental Impact Report
on June 30, 1997.
CMR:450:99 Page 2 of 3
ATTACHMENTS .
Attachment A: Budget Amendment Ordinance
Attachment B: Budget Amendment Ordinance Impacting Utility Fund Reserves
to Date in 1999-00
PREPARED BY: Sager Farraj, Senior Power Engineer
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
Director of Utilities
E- II Y I-amusoN
Assistant City Manager
CMR:450:99 Page 3 of 3
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 $600,000 FOR THE
STANFORD WEST UNDERGROUND EXTENSION CAPITAL PROJECT
NUMBER 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 28,
1999 did adopt a budget for fiscal year 1999-00; 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 $500,000 for fiscal year
1999-00 to cover the cost of the Stanford West Underground Extension
Project; and
WHEREAS, an additional $600,000 will be required to meet the
construction schedule as proposed by the Stanford Management Company
(SMC); and
WHEREAS, SMC will reimburse the Electric Utility $480,000 of
the additional cost; and
WHEREAS, City Council authorization is needed to amend the
1999-00 budget as hereinafter set forth.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION i. The sum of Six Hundred Thousand Dollars ($600,000)
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 $480,000 to reflect reimbursement from Stanford Management
Company for a portion of the work.
SECTION 3. The remaining funding will come frQm the Electric
Distribution Rate Stabilization Reserve, which is hereby decreased
by $120,000.
SECTION 4. This transaction will reduce the Electric
Distribution Rate Stabilization Reserve from $6,579,455 to
$6,459,455.
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 Projeci 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 Hil! 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
Municipa! 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
Attachment B
~
Budget Amendment ~)rdinances Impacting Utilities Rate Stabilization Reserves Approved To Date in 1999-00
12/08/99
Electric Fund
Estimated Electric Distribution Rate Stabilization Reserve
(RSR) Balance
Customer Information System (CIP 9357)
IT Strategic Plan
Stanford West Underground Extension Project (CIP 9901)
Total BAOs
$6,837,000
($255,000)($255,000)
($2,545)($2,545)
($120,000)($120,000)
RSR Balance After BAO’s
($377,545)$0 ($377,545)
Electric Fund
Estimated Electric Supply Rate Stabilization Reserve (RSR
Balance
IT Strategic Plan
$6,459,455
Total BAOs
RSR Balance After BAO’s
Gas Fund
$12,190,000
($31,207)($31,207)
($31,207)$0 ($31,207)
$12,158,793
Estimated Gas Distribution Rate Stabilization Reserve
(RSR) Balance
Customer Information System (CIP 9357)
IT Strategic Plan
Total BAOs
RSR Balance After BAO’s
Gas Fund
$4,534,000
($63,750)($63,750)
($9,838)($9,838)
($73,588)$0.($73,588)
$4,460,412
Estimated Gas Supply Rate Stabilization Reserve (RSR)
Balance
IT Strategic Plan
Total BAOs
RSR Balance After BAO’s
($7,137).
($7,137)$0
$3,556,000
($7,137)
($7,137)
$3,548,863
($4,213)
($4,213)
($51,666)
($51,666)
($16,284)
($16,284)
($11,812)
($11,812)
Attachment B
Budget Amendment (~rdinances Impacting Utilities Rate Stabilization Reserves Approved To Date "~:"1999-00
12/08/99.
Refuse Fund
Estimated Refuse Rate Stabilization Reserve (RSR)
Balance
Customer Information System (CIP 9357)
IT Strategic Plan
$4,782,000
($42,500)($42,500)
($2,796)($2,796)($4,689)
Total BAOs
RSR Balance After BAO’s
Wastewater Collection Fund
Estimated WWC Rate Stabilization Reserve (RSR) Balance
Customer Information System (CIP 9357)
IT Strategic Plan ¯
Total BAOs
RSR Balance After BAO’s
Wastewater Treatment Fund
Estimated WWT Rate Stabilization Reserve (RSR) Balance
IT Strategic Plan
Total BAOs
RSR Balance After BAO’s
($45,296)$0 ($45,296)($4,689)
$4,736,704
$7,154,000
($21,250)($21,250)
($6,719)($6,719)
($27,969)$0 ($27,969)
($5,157)
($5,157)$0
$7,126,031
$3~.41,000
($5,157)
($5,157)
$3,235,843
($11,111)
($11,111)
($8,649)
($8,649)
Water Fund
Estimated Water Rate Stabilization Reserve (RSR) Balance
Customer Information System (CIP 9357)
IT Strategic Plan
Total BAOs
RSR Balance After BA O’s
($42,500)
($11,722)
($54,222)$0
$6,432,000
($42,500)
($11,722)
($54,222)
$6,377,778
($19,387)
($19,387)
Vehicle Equipment Fund
Estimated Retained Earnings
IT Strategic Plan
Total BAOs
Retained Earnings Balance After BA O’s
($3,206)
($3,206)$0
$9,697,830
($3,206)
($3,206)
$9,694,624
($5,379)
($5,3?9)