HomeMy WebLinkAboutStaff Report 297-10TO:
ATTENTION:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
CITY MANAGER
JULY 6, 2010
DEP ARTMENT: ADMINISTRATIVE
SERVICES
CMR: 297:10
Request to Preliminarily Approve Fiscal Year 2010 Reappropriations
Requests to Be Carried }<'orward into Fiscal Year 2011
RECOMMENDATION
Staff recommends that the Finance Committee recommend that the Council preliminarily
approve the Fiscal Year 2010 reappropriations be carried forward into Fiscal Year
20 II (Attachment A).
BACKGROUND
As a part of the fiscal year-end process, staff reviews the City's unencumbered and unspent
appropriations of the fiscal year just ended along with the City's spending plans. Encumbered
amounts are those subject to the legal claims of other parties due to contractual obligations (for
example, commitments made through purchase orders). The City has a process for carrying
forward encumbrances.
However, eaeh year there are a small number of important projects we carry forward into the
next year with Ullencum bered funds. The reappropriations process is used for these projects.
The Council must provide a preliminary approval at this time to allow the reappropriations to
move forward, although the Municipal Code also requires that the Council provide final approval
at mid-year, onec the accounting books are closed. Because projects may need funding in the
first part of the fiscal year, the Municipal Code was amended in 1995 to allow the Council to
preliminarily approve the reappropriations (Chapter 2.28, Section 2.28.090).
DISCUSSION
As noted above, the Municipal Code allows the "preliminary" approval of reappropriations as
long as tinal approval is included with the normal year-end closing ordinance. The preliminary
reappropriation action allows for an early review of uncommitted funds in a just-concluded fiscal
year. Attachmcnt A identifies those reappropriation requests that staff recommends for
preliminary approval.
CMR:297:10 Page lof2
RESOURCE IMPACT
Staff has determined that sufficient uncommitted budgeted funds exist to allow for the
preliminary approval of the attached Fiscal Year 2010 reappropriations list (Attachment A).
General .Fund proposed reappropriations total $185,QOO. Enterprise Fund proposed
reappropriutions total $3,443,418. Internal Service Fund proposed reappropriations total
$194,000.
POLICY IMPLICATIONS
'This recommendation is consistent with adopted Couneil policy.
ENVIRONMENTAL REVIEW
The action recommended is not a project for the purposes of the California Environmental
Quality Act.
PREPARED BY:
DALEWONG Y
. Senior Financial ~yst
DEPAR'fMENT HEAD APPROVAL:
LAL
Director, AdtninistJ:ative Services
f
CITY MANAGER APPROVAl;:
ATTACHMENT
Attachment A: Fiscal Year 2010 Reappropriations List
CMR:297:10 Page 2 of2
Attachment A
FY2010 REAPPROPRIATION
$ COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2010 STATUS
City Manager's Office
$55,000 High Speed Rail Project This reappropriation is being requested for Recommended $55,000. There is
staffing costs related to the High Speed Rail sufficient balance in the Fiscal Year
Project. Per CMR 267: 10, Council approved 2010 budget that can be
the appropriation of$55,000 from the FY 2010 reappropriated.
Council contingency to fund these costs.
Planning Department
$40,000 High Speed Rail This reappropriation is being requested for Recommended $40,000. There is
Project contract services related to the High Speed Rail sufficient balance in the Fiscal Year
Project which is a multi-year project that does 2010 budget that can be
not have an identified source offunding. In reappropriated.
FY 2010, this project was funded by the
Council contingency and was also absorbed by
the P lalUling Department budget. There is
remaining budget from the Destination Palo
Alto contract in FY 2010. Part of this
remaining amount is being proposed to be
reappropriated to the High Speed Rail Pro;ect.
$40,000 . Development Center This reappropriation is being requested for Recommended $40,000. There is
RestrucUiring Project contract serviees related to the restructuring at sufficient balanee in the Fiscal Year
the Development Center. Although it was 2010 budget that can be
mandated by the City Council, this project does reappropriated.
not have a designated budget. There is
remain ing budget from the Destination Palo
!
Alto contract in FY 2010. Part ofthis
remaining amount is being proposed to be
reappropriated to help complete this project.
Page 1 of 4
$ COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2010 STATUS
4dministrative Services
$50,000 Special Studies This reappropriation is being requested for the Recommended $50,000. There is
funding 0 f special studies that arise related to sufficient balance in the Fiscal Year
the Stanford Expansion, Palo Alto Airport, 20!O budget that can be
Cable Franchising, or other projects as reappropriated.
necessary. The budget for contract services in .
FY 2011 is entirely comprised of funding for
specific identified contracts, leaving no room
for unanticipated contracts. This
I
reappropriation allows for funding for
assistance on special projects related \0 the
City's finances,
Utilities Department-Electric Fum/
$2,000,000 Electric Efficiency . This reappropriation is being requested \0 fund Recommended $2,000,000. There is
Financing Program an electric efficiency financing program for sufilcient balance in the Fiscal Year
nonresidential customers through a third party 2010 budget that can be
contractor, On December 7, 2009, Council reappropriated,
approved using up to $2,000,000 from the
Calaveras Reserve to develop this four-year
pilot program (CMR 430:09), It was Council's
intent that these ftmds be used for a four-year
program and rolled over throughout the length
of the program, The contract is expected to be
signed by June 30, 2010, The program will
begin in Fall 2010,
$459,700 Customer rebates for This reappropriation is being requested \0 fund Recommended $459,700. There is
energy efficiency customer rebates for completion of energy sufficient balance in the Fiscal Year
projects efficiency projects, A very large number of 2010 budget that can be
energy efficiency projects are either committed reappropriated,
or projeeted to be completed, while only a
small percentage of projects have been
completed to date. Actual payment of rebates
will occur as the projects are completed in FY
2011. These energy efficiency projects support
Council's environmental sustainability
objectives,
Page 2 of4
$ COMMENTS/REASONS .
AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2010 STATUS
$300,000 Customer rebates for This reappropriation is being requested to fund Recommended $300,000. There is
solar electric customer rebates for the installation of sufficient balance in the Fiscal Year
(photovoltaic) systems photovoltaic systems. SB 1 requires California 20 I 0 budget that can be
electric utilities to ofter incentives for solar reappropriated.
electric systems installed on customer facilities
after January 1,2007. Because there is
uncertainty in knowing when a customer will
complete the solar installation, it is difficult to
match the rebate payments to each year's
program budget. The reason for this
reappropriation request is to carry forward
funds from FY 20 I 0 to FY 20 II to help cover
the large amount of pending rebates. Each year
$1,300,000 is budgeted for this program.
Between January 1,2007 and May 19, 2010,
over $3,600,000 in rebates has been paid. The
program has reserved an additional $2,700,000
for pending applications.
Utilities Department-Water Fund
$54,000 Customer rebate This reappropriation is being requested for the Recommended $54,000. There is
program for customer rebate program for water/energy sufficient balance in the Fiscal Year
water/energy reduction reduction projects. The Santa Clara Valley 2010 budget that ean be
projects Water District (SCVWD) currently offers reappropriated.
rebates for innovative water/energy reduction
projects through the existing Water Efficiency
Technology program. The goal of the program
is to encourage individuals to implement
innovative projects that will result in cost-
effective water/energy savings. 'Ibis
reapprorpriation is being requested to expand
the program in Palo Alto in coordination with
SCVWD.
Public Works Department-Storm Draittage Fund
$629,718 Storm Drain Innovative This reappropriation is being requested for Recommended $629,718. There is
Improvements innovative storm drain improvements. These sufficient balance in the Fiscal Year
funds must he reappropriated because they 2010 budget that can be
have been specifically earmarked for reappropriated.
innovative storm drain improvements per the
2005 Storm Drainage ballot measure approved
by the Palo Alto property owners. These funds
have been budgeted for a storm water rebate
program that offers incentives to residents and
businesses to reduce stormwater runoff.
However, the rebate program has not generated
sufficient demand to spend the funds. Staff
plans to utilize the unused funds in FY 20 II for
an innovative storm drain improvement project
in the Southgate neighborhood.
Page 3 of4
$ COMMENTS/REASONS
AMOUNT INTENDED USE FOR NOT COMPLETING IN FY 2010 STATUS
Administrative Services Departme1tt-Technology Fund
$94,000 Update of the City's This reapp~opriation is being requested for Recommended $94,000. There is
Information contract services related to the update of the sufficient balance in the Fiscal Year
Technology Strategic City's Information Technology Strategic Plan. 20 I 0 budget that can be
Plan This reappropriation is needed to supplement reappropriated.
the cost of the full project, which is to be
completed in FY 20 II.
$100,000 Infrastructure This reappropriation is being requested for Recommended $100,000. There is
Replacement infrastructure server equipment purchases and sufficient balance in the Fiscal Year
computer purchases. Not all of the 20 I 0 budget that can be
infrastructure server equipment could be reappropriated.
purchased in FY 20 I O. The FY 20 II budget is
not adequate to cover the cost of all the
necessary servers to adequately serve the
orll:anization.
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