HomeMy WebLinkAboutStaff Report 298-07~O
TO:HONOIL~BLE CITY COUNCIL 10
FROM: CITY MANAGER DEPARTMENT: COMMUNITY SERVICES
DATE:JULY 9, 2007 CMR: 298:07
SUBJECT:ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 2007-08 TO
ACCEPT A DONATION FROM THE FRIENDS OF HERITAGE
PARK, LLC IN THE AMOUNT OF $192,572 AND TO PROVIDE AN
ADDITIONAL CORRESPONDING APPROPRIATION
RECOMMENDATION
Staff recommends flaat the City Council approve the attached Budget Amendment
Ordinance to accept and expend a $192,572 matching donation from the Friends of
Heritage Park, LLC, for the benefit of playground equipment, amenities and new
recreational structures at Heritage Park.
BACKGROUND
On June 18, 2007, Council approved an agreement between the Friends of Heritage Park,
LLC, for the design, construction and installation of playground facilities and other
improvements at Heritage Park (CMR:230:07) as part of Capital hnprovement Project
PG-07000. This a~eement provides a mechanism for the City to establish a trust account
for the funds that wilt be used for this public!private parmership. The City has transfen’ed
$75,000 in Park Development Impact Fees that were previously approved by the Council
into this jointly managed project account. Now that the final costs of the projects have
been identified, the City expects to receive the donations from the Friends of Heritage
Park, LLC, to provide the full funding for this project. The proposed Budget Amendlnent
Ordinance provides the necessary authorization from Council to amend the budget to
reflect the anticipated revenues and expenses.
DISCUSSION
Staff worked cooperatively with the Friends to develop an agreement and right-of-entry
to provide the Heritage Park, LLC exclusive access to that portion of the park undergoing
construction. The Council-approved agreement specifies policy and procedural
CMR: 298:07 Page 1 of 3
guidelines for the Heritage Park, LLC to follow regarding design, consttn,lction, safety,
liability, as well as payment details. The agreement follows similar public/private
partnership agreements that provide for authorized non-profits to manage the
improvement of City facilities.
As part of the agreement that was approved by Council on June 18, 2007, the Friends
provided a detailed budget that corresponds to a phased consmlction plan that
demonstrates that all expenses for the project have been anticipated and adequately
provided for. The budget also includes a contingency amount to cover unforeseen
construction or design expenses. The timeline and associated budget have been reviewed
by staff to ensure that the project is viable and that the project can be successfully
completed with minimal disruption to the park or neighbors.
Under the terms of the agreement, the Friends will provide accumulated donation funds
to the City to be deposited into a City-managed mast account. The Friends will be able to
order the equipment, supplies and materials necessary for this project. \Vhen invoices for
materials or contracts need to be paid, the Friends will present their reviewed and
authorized invoices to the City for processing of payment. This method of jointly
reviewed payments ensures that a!l expenses are completely covered for the project.
RESOURCE IMPACT
The attached BAO requests an appropriation of expenses which is offset by the donation
revenue and consequently has no impact on the Budget Stabilization Reserve. The f~mds
necessary to match the donation ($75,000) have been budgeted in the Capital
Improvement Project (CIP PG-07000) budget for 2007-2008. CMR 230:07 discussed the
on-going $6,000 annual costs that are anticipated for the maintenance and inspection of
the Heritage Park playground.
POLICY IMPLICATIONS
This report does not represent any change to existing City policies.
TIMELINE
Funds wit1 be expended in the 2007-2008 Budget.
ENVIRONMENTAL REVIEW
The program is not a project as defined by the California Environmental Quality Act and
is not subject to CEQA requirements.
ATTACHMENTS
Attachment A:
Attachment B:
Budget Amendrnent Ordinance
CIP PG-07000
CMR: 298:07 Page 2 of 3
PREPARED BY:
Open Space and Parks Division Manager
DEPARTMENT HEAD:
RICHARD JAM~S"//
Director, Community Se~Tices
CITY MANAGER APPROVAL"
Assistant City Manager
CMR: 298:07 Page 3 of 3
Attachment A
ORDiNaNCE NO.
ORDINANCE OF THE COU~C!L OF THE CITY OF PALO ALTO
~ENDING THE BUDGET FOR FISCAL YEAR 2007-08 TO ACCEPT A
DONATION IN THE ~OUNT OF $192,572 FROM THE FRIENDS OF
HERITAGE PARK, LLC ’AND PROVIDE ADDITIONAL APPROPRIATION
TO THE CAPITAL IMPROVEMENT PROGR~_M (CIP) PROJECT PG-
07000, HERITAGE PARK PLAYGROUND PUBLIC/PRIVATE
PARTNERSHIP PROJECT
The Council of the City of Palo Alto does ORDAIN as
follows:
SECTION !. The City Council of the City of Pa!o Alto
finds and determines as follows:
A. Pursuant to the provisions of Section 12 of Article iII of
the Charter of the City of Palo Alto, the Counci! on June ii, 2007
did adopt a budget for fisca! year 2007-08; and
B. in fi-scal year 2006-07, the City Council did adopt a budget
for CIP Project PG-07000, Heritage Park Playground Public/Private
Partnership Project (Project), with an initia! appropriation of
$75,000; and
C. On April 16, 2007, the City Council did adopt Park
Improvement Ordinance Number 4947 for im_mrovements located within
the dedicated parkland known as the Heritage Park, including:
remova! of a section of turf; installation of drainage
structures; installation of children’s playground equipment,
tables, benches and amenities; renovation of a section of the
irrigation system; and installation of safety fencing.
D. In June 18, 2007, the City Council did approve a limited-
term agreement with the Friends of Heritage Park, LLC (Friends) to
design, construct and instal! playground facilities and other
im_orovements at the Heritage Park; and
E. The total estimated cost of the Project is $267,572. Under
the terms of the agreement, Friends wil! collect donations and
deposit the accumulated donations for the Project into a City-
designated account. The City Counci! approved $75,000 from the
Park Development Impact Fees to match the donations of the Friends
to pay for the cost of the Project;
F. The appropriation of funds for CIP Project PG-07000,
Heritage Park Playground Public/Private Partnership Project is a
one-time event, and in future years maintenance and replacement
costs will be included in the Community Services Department’s
budget; and
G, City Counci! authorization is needed to amend the 2007-08
budget as hereinafter set forth.
SECTION 2. Donation revenue from the Friends of Heritage Park,
LLC of One Hundred Ninety Two Thousand Five Hundred Seventy Two
Dollars ($192,572) is hereby received and, is appropriated to CIP
Project Number PG-07000.
SECTION 3. The transactions above will have no impact on the
Genera! Fund Budget Stabilization Reserve.
SECTION 4. As specified in Section 2.28.080(a) of the Palo
Alto Hunicipa! Code, a two-thirds vote of the City Counci! is
required to adopt this ordinance.
SECTION 5. The Council of the City of Palo Alto hereby finds
that this is not a project under the California Environmenta!
Quality Act and, therefore, no envirorimental impact assessment is
necessary.
SECTION 6. As provided in Section 2.04.330 of the Palo Alto
Municipal Code, this ordinance shal! become effective upon
adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FOR}I:
City Attorney
Mayor
City Manager
Director, Community
Department
Services
Director of
Services
Administrative
CityWorks
Attachment B
Description:
This project is a public/partnership with the Heritage Park LLC to construct
a playground within Heritage Park. The City will provide the LLC with up
to $75,000 for construction purposes. The LLC is responsible for the
design and construction of the project.
,lustification:
This project is a public/private partnership approved by, City, Council and
will provide a healthy, recreational facility for the Pato Alto children.
C!P FACTS:
o Project Status: Other
o Timetine: FY 2006-2008
¯ Overall Project Completion: 0%
o Percent Spent: 0
o Managing Department: Community Ser~ ices
Department
¯ Comprehensive Plan: Policy C-24,C-26. C-32, and
Program C- 19
. Board/Cummission Review: PRC
IMPACT ANALYSIS:
- Environmentah Catego~cally exempt from CEQA
under Section 15301
¯ Design Elements: N/A
. Operating: Will increase maintenance and repair
costs by $6,000 annually
- Telecommunications: N/A
i Pre-Design Costs
Design Costs
Construction Costs
Other
Total Budget Request
$267,572
$267,572
Revenues:$267,572
Source of Funds:Park Development Impact Fees(S75,000); Friends of Heritage Park LLC ($192,572)
$75,000 $192,572
$75,000 ! $192,572
$75,000 $!92,572