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HomeMy WebLinkAboutStaff Report 3021 City of Palo Alto (ID # 3021) City Council Staff Report Report Type: Consent Calendar Meeting Date: 7/16/2012 July 16, 2012 Page 1 of 2 (ID # 3021) Summary Title: Reappropriations to Council Title: Approval of Fiscal Year 2012 Reappropriation Requests to be Carried Forward into Fiscal Year 2013 From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the Council approve the Fiscal Year 2012 reappropriations to be carried forward into Fiscal Year 2013 (Attachment A). When the Fiscal Year 2012 audit is complete, as we always do, staff will return to Council in December 2012 with the Comprehensive Annual Financial Report (CAFR) for confirmation of these reappropriations. 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, each year there are a small number of important projects the City carries forward into the next year with unencumbered funds. The reappropriations process is used for these projects. Although the Municipal Code also requires that the Council provide final approval at mid-year, once the accounting books are closed, the Council must provide a preliminary approval at this time to allow the reappropriations to move forward,. In 1995, the Municipal Code was amended to allow the Council to preliminarily approve the reappropriations (Chapter 2.28, Section 2.28.090) because projects may need funding in the first part of the fiscal year. The Municipal Code also states that unless amended by Council, the appropriations of capital improvement funds for project expenditures shall continue in full force and effect until the purpose for which each was made has been accomplished or abandoned. The purpose of any capital appropriation is deemed abandoned if two years pass without any expenditure from the appropriation. July 16, 2012 Page 2 of 2 (ID # 3021) Discussion As noted above, the Municipal Code allows the “preliminary” approval of reappropriations as long as final 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. Attachment A identifies those reappropriation requests that staff recommends for preliminary approval. Included are capital projects that have had no expenditures within the last two years. Resource Impact The requested items have been previously reviewed and approved by City Council as part of the Fiscal Year 2012 budget process. Staff has determined that sufficient funds exist to allow for the approval of the attached Fiscal Year 2012 reappropriations list (Attachment A). General Fund proposed operating budget reappropriations total $1,017,394. Enterprise Fund proposed operating budget reappropriations total $1,926,688 and Internal Service Fund proposed operating budget reappropriations total $343,064. Reappropriations for capital projects total $8,936,212. Policy Implications This recommendation is consistent with adopted Council policy. Environmental Review The action recommended is not a project for the purposes of the California Environmental Quality Act. Attachments: Attachment A: Reappropriations attachment (DOC) Attachments: Attachment A: Reappropriations attachment (DOC) Prepared By: Sherry Nikzat, Senior Financial Anlyst Department Head: Lalo Perez, Chief Financial Officer City Manager Approval: ____________________________________ James Keene, City Manager Page 1 of 7 FY 2012 REAPPROPRIATION REQUESTS SUMMARY OF REQUESTS Total Requests Total Recommended GENERAL FUND $1,017,394 $1,017,394 ENTERPRISE FUND $1,926,688 $1,926,688 INTERNAL SERVICE FUND $343,064 $343,064 CAPITAL IMPROVEMENT PROJECTS $5,649,066 $5,649,066 TOTAL $8,936,212 $8,936,212 $ AMOUNT INTENDED USE COMMENTS/REASONS FOR NOT COMPLETING IN FY 2012 STATUS City Manager’s Office $162,300 Office/space reconfigurations in City Hall This reappropriation is requested to carry over unused Fiscal Year 2012 City Manager contingency to the City Manager’s Fiscal Year 2013 contingency. The request will be used to continue needed space/office planning and office reconfigurations to improve public counter, general operations and meeting spaces in City Hall. Recommended $162,300: This request is funded by unused Fiscal Year 2012 City Manager Contingency Funds and there is sufficient balance that can be reappropriated. Administrative Services $59,545 Cost of services study This reappropriation is being requested to continue the cost of services study initiated in Fiscal Year 2012. A consultant was hired to update the cost allocation plan, municipal fee schedule, and development impact fees. Part of that work is now complete, some still remains to be completed. Recommended $59,545. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Community Services $8,491 Children’s Theater This reappropriation is requested to carry forward the remaining, unused portion of a donation. Recommended $8,491. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Library $3,250 Parenting Program This reappropriation is requested to carry forward the remaining, unused portion of a federal grant. The grant funds the Parenting Program Series at the Palo Alto City Library. Funds will be spent on speaker fees and supplies for lectures and workshops given by parenting experts. Recommended $3,250. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated Attachment A Page 2 of 7 $ AMOUNT INTENDED USE COMMENTS/REASONS FOR NOT COMPLETING IN FY 2012 STATUS $100,000 Mitchell Park This reappropriation is requested to carry forward the unused portion of a gift from the Palo Alto Library Foundation for the purchase of library collection materials (Staff Report 2258; BAO 5137). Materials will be purchased close to the time of the library opening, providing customers with the most current productions and publications. Recommended $100,000. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated Planning and Community Environment $105,373 Development Center Blueprint Process This reappropriation is being requested for furnishings for implementation of the Development Center Blueprint Process. In FY 2012, Staff Report 2364 and BAO 5134 increased the budget for the Blueprint Process by $155,639 for workstations, carpeting, and furniture moving. Shortly thereafter, the approval of Staff Report 2389 authorized the rent of the second floor of the Development Center. To maximize purchasing power and end up with more cohesive functionality, furnishing and carpeting was delayed until second floor plans could be made. Reappropriations of these funds will be combined with an expected request for funding to complete furnishing the second floor. Recommended $105,373. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Public Safety $88,435 Fire - Uniforms and protective gear This reappropriation is requested for uniforms and protective gear for the new staff hires. Upon review of the Fire budget, the Office of Management and Budget did not recommend Fire’s request for a midyear budget amendment in Fiscal Year 2012 and requested that Fire instead release budget from an over-budgeted contract. Because the contract budgeting was released too late in the Fiscal Year to encumber, this budget needs to be reappropriated. Recommended $88,435. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. $490,000 Office of Emergency Services This reappropriation is to reappropriate unused budget from Fiscal Year 2012 approved for the establishment of an Office of Emergency Services (OES). The Director of OES was hired halfway through Fiscal Year 2012, allowing only six months to staff the office and undertake program plans. Recruitment is currently underway to provide capacity for project management. Projects are expected to include: sustainable power for generator; backup data links; solar powered WiFi links; emergency management software and systems; voice and data systems in support of PAPD communications and regional projects; GIS entry of infrastructure and key resources; new computer systems; vulnerability assessment. Recommended $490,000. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated Public Works Department- Storm Drainage Fund Page 3 of 7 $ AMOUNT INTENDED USE COMMENTS/REASONS FOR NOT COMPLETING IN FY 2012 STATUS $40,631 Storm Drain Innovative Improvements This reappropriation is being requested for innovative storm drain improvements. These funds must be reappropriated because they were specifically earmarked for innovative storm drain improvements per the 2005 Storm Drainage ballot measure approved by Palo Alto property owners. These funds have been budgeted for a stormwater rebate program that offers incentives to residents and businesses to reduce stormwater runoff. Recommended $40,631. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Utilities Department- Electric Fund $1,886,057 Electric Efficiency loans Council approved a multi-year program to be funded from the Calaveras Reserve (CMR 430:09). Beginning in Fiscal Year 2011, this program was to be used for four years to provide no interest loans to Palo Alto businesses that are implementing electric energy efficiency projects. The program continues in Fiscal Year 2013. Recommended $1,886,057. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated Information Technology $140,879 Server replacement and network monitoring The reappropriation is being requested for server replacement and a network monitoring application. Due to some unanticipated problems, these funds did not get encumbered in a timely manner to be able to move forward into the next Fiscal Year. Recent server problems have caused significant delays to city operations underscoring the critical nature of this need. Recommended $140,879. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. $97,674 Wireless connectivity This is the remaining balance of the $104,000 amount granted midyear for wireless access points. Due to timing, this project was not completed in Fiscal Year 2012. Recommended $97,674. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. $104,511 Public Safety Mobile Systems This reappropriation is requested to cover: the costs of moving to a new wireless provider with a more secure platform in order to meet the requirements of the U.S. Department of Justice for public safety mobile systems; installing monitors for Councilmembers in Council Chambers; the purchase of a Project Management application for the reporting, diagnostics, and managing of various projects; and, 10 Track-It software licenses and Change Management module for the tracking of work orders and inventory. These activities were not completed in Fiscal Year 2012 due to workload issues. Recommended $104,511. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Page 4 of 7 CAPITAL IMPROVEMENT PROJECTS (CIP) CIP $ AMOUNT INTENDED USE COMMENTS /REASONS FOR NOT COMPLETING IN FY 2012 STATUS Police Department- Technology Fund TE-11002 $305,535 Police Mobile In-Car Video System Replacement This reappropriation is being requested for the replacement of the mobile in-car video system deployed in all of the police patrol cars. The current system is over five years old and is at the end of its lifecycle. Newer technology with better resolution and enhanced storage and retrieval capabilities is available. The system was not replaced during FY 2012 because staff was managing competing priorities and multiple projects. The initial product evaluation process has been started and several demonstrations have been evaluated in the vehicles. Recommended $305,535. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Public Works Department- Capital Projects Fund PF-09000 $100,000 Children’s Theater Improvements This reappropriation is being requested to replace or upgrade mechanical and electrical systems, and replace building finishes at the Children’s Theater. The project was not completed in FY 2012 due to staff workload constraints. A consultant will be hired to design the improvements in Summer 2012. Recommended $100,000. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Community Services Department- Capital Projects Fund OS-09002 $175,000 Baylands Emergency Access Levee Repair This reappropriation is being requested to restore the width and height of the earthen flood levee between Harbor Road near the Baylands Nature Center and the perimeter levee of the airport to 6 inches above its original height. This project was delayed to coincide with the San Francisquito Creek Joint Powers Authority’s flood control project. However, as the timing of the JPA’s project is still undetermined, staff will move forward with the Baylands levee repair in FY 2013 separately. Recommended $175,000. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. PG-11002 $250,000 Monroe Park Improvements This reappropriation is being requested to provide necessary upgrades to pathways, benches, trash and recycling receptacles and play equipment at Monroe Park. Due to various unforeseen emergency repair projects in FY 2012, this project was not completed. Improvements will include the renovation of existing playground to comply with ADA standards. Recommended $250,000. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Page 5 of 7 CAPITAL IMPROVEMENT PROJECTS (CIP) CIP $ AMOUNT INTENDED USE COMMENTS /REASONS FOR NOT COMPLETING IN FY 2012 STATUS AC- 09001 $100,000 Replacement of Children’s Theater Audio and Visual Monitoring Systems This reappropriation is being requested to replace the non-functioning Children Theater audio and visual monitoring systems, and expand the monitoring systems to the Wang Library/Rehearsal Hall and the Magic Castle Stage. The project will include an audio and video monitoring system, paging system, and intercom system. This project was not completed in FY 2012 due to staffing shortages. The project is now expected to be completed by January 2013. Recommended $100,000. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. AC- 09002 $200,000 New Sound System for Lucie Stern Community Theater This reappropriation is being requested to provide a new sound system that includes sound mixer, house speakers (including a new center luster), audio snake system to connect the booth and the right back-of-house, amplifiers, audio patch for microphones and speakers, hard drive audio editing/storage unit and CD recorder/player, and monitor speakers in the costume shop and rehearsal hall. This project was not completed in FY 2012 due to scheduling conflicts and staffing shortages. The project is now expected to be completed by November 2012. Recommended $200,000. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Information Technology Department- Technology Fund TE-07006 $95,694 SAP Continuous Improvement This reappropriation is being requested to support a comprehensive security assessment and to implement the City Auditor’s recommendations related to the security of the City’s information systems. Staff worked on security audit recommendations in FY 2012, and additional work to be performed in FY 2013 requires the attention of the newly hired Information Security Manager. Recommended $95,694. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. TE-01012 $578,337 IT Disaster Recovery Plan This reappropriation is being requested to provide the means to promptly resume mission critical and business operations should a natural disaster occur that renders the City’s primary computer system infrastructure inoperable. The project was not addressed in FY 2012 due to a lack of resources and other competing priorities. With the hiring of the Information Security Manager, the project will be initiated in FY 2013 and is expected to be a multi-year project. Recommended $578,337. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Page 6 of 7 CAPITAL IMPROVEMENT PROJECTS (CIP) CIP $ AMOUNT INTENDED USE COMMENTS /REASONS FOR NOT COMPLETING IN FY 2012 STATUS Administrative Services Department- Capital Projects Fund AS-10001 $100,000 Sustainability Contingency This reappropriation is being requested to provide funding for elements of General Fund CIP projects that meet the criteria for Sustainability. This project will be used for specific measures that are either cost-effective, resource- efficient projects or sustainability measures identified under nationally recognized standards. Funding will be transferred out from this project into the qualifying project. Recommended $100,000. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Utilities Department- Water Fund WS- 11001 $275,000 Vacuum Excavation Equipment This reappropriation is being requested for the purchase of a new vacuum excavation machine for new water service installations. This purchase will include all auxiliary equipment to provide keyhole excavation and minimize pavement disruption associated with service line installations. The equipment purchase requires specifications from Fleet staff acceptance by WGW Operations, and review by the Fleet Review Committee. These processes are expected to occur in FY 2013. Recommended $275,000. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Utilities Department- Wastewater Collection Fund WC- 11000 $3,119,500 Wastewater Collection Rehabilitation / Augmentation Project 24 This reappropriation is being requested to implement high priority rehabilitation, augmentation, and lateral replacement work, which reduces inflow of rainfall and ground water into the collection system. This project was delayed due to the cross-bore inspection project which took priority over wastewater CIP projects. Recommended $3,119,500. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Utilities Department- Technology Fund TE-11003 $150,000 Recurring Credit Card Payments This reappropriation is being requested to implement recurring credit card payments in the Utilities online customer service program. Resources were not available to implement the project in FY 2012. The recurring credit card feature will lower transaction fees for credit card processing. Recommended $150,000. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated. Page 7 of 7 CAPITAL IMPROVEMENT PROJECTS (CIP) CIP $ AMOUNT INTENDED USE COMMENTS /REASONS FOR NOT COMPLETING IN FY 2012 STATUS TE-11005 $200,000 Implementation of New Utility Rate Structures This reappropriation is being requested to reconfigure Pitney Bowes bill print software to allow new rate structures and time differentiated pricing. The project also includes the development of a customized bill design for time-of-use customers. Resources were not available to implement the project in FY 2012. Recommended $200,000. There is sufficient balance in the Fiscal Year 2012 budget that can be reappropriated.