HomeMy WebLinkAbout2002-10-21 City Council (20)City of Palo Alto
TO:HONORABLE CITY COUNCIL 4
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
OCTOBER 21, 2002 CMR: 415:02
BUDGET AMENDMENT ORDINANCE NOT TO EXCEED $50,000
AS CITY CONTRIBUTION TO COST OF SOUND WALL FOR
TENNIS FACILITY AT 3005 MIDDLEFIELD ROAD
RECOMMENDATION
Staff recommends the Council approve the attached Budget Amendment Ordinance
(BAO) to appropriate $50,000 for the City’s. contribution to the cost of a sound wall for
the tennis facility at 3005 Middlefield Road.
BACKGROUND
On Mayl, 1995, Council granted an option to lease to Community Skating, Inc. (CSI)
for the development and operation of a tennis facility at 3005 Middlefield Road. On
August 15, 1996, the Zoning.Administrator approved a conditional use permit for the
project, which was then appealed by three neighbors of the site. On October 13, 1998,
Council approved the revised mitigated negative declaration and the conditional use
permit for the project, denied the three appeals, and directed staff to return with a Budget
Amendment Ordinance (BAO) not to exceed $50,000 to pay up to one-half the cost to
construct the sound walls. The Sound walls required by the use permit are 10-foot high,
airtight, acoustical sound walls along the western and northern edges of the site.
Following Council’s October 1998 approval, three lawsuits were filed by neighbors of
the project challenging the approval, and the project was put on hold. One lawsuit was
settled, and the other two were dismissed. On October 4, 1999, Council approved a BAO
appropriating $50,000 for the City’s contribution to the cost of a sound wall and a related
Amendment to the Option Agreement between the City and.CSI. On December 18, 2000,
Council approved Amendment No. 6 to the Option Agreement, which provided for CSI
to enter into the lease upon submission of an Architectural Review Board application for
the sound wall and operate the tennis facility under an existing conditional use permit.
On April 20, 2001, CSI exercised its option and entered into the lease.
CMR:415:02 Page 1 of 3
DISCUSSION
CSI is now close to completing construction of the sound wall and will soon be ready to
submit to the City the appropriate documentation for reimbursement for one-half the cost
of the wall, not to exceed $50,000. Original funding for this amount was appro.ved by
Council on September 27, 1999 (CMR:367:99). The subsequent project delay however,
resulted in these funds being returned to the Budget Stabilization Reserves in fiscal year
2000-01. Therefore, it is necessary to request new funding via Budget Amendment
Ordinance (BAO) in the amount of $50,000 for fiscal year 2002-03.
RESOURCE IMPACT
The attached BAO requests approval for an appropriation of $50,000 from the General
Fund Budget Stabilization Reserve to non-salary expenses in the Property Management
Functional Area in the Administrative Services Department budget. The appropriation is
a one-time expense and there are no future year resource needs anticipated as a result of
this BAO. Attachment B summarizes the 2002-03 BAO’s approved to date that impact
the General Fund Reserves. - .....
POLICY IMPLICATIONS
This recomrnendation is consistent with Council direction given on October 13, 1998 and
Council approval of the BAO on September 27, 1999. ,’:
ENVIRONMENTAL REVIEW -~-
A mitigated Negative Declaration for the project was approved by Council on October
13, 1998. No further environmental review for the project is necessary under the
requirements of the California Environmental Quality Act (C,EQA).
ATTACHMENTS
¯ Attachment A: Budget Amendment Ordinance
Attachment B: Budget Amendment Ordinances Impacting Gerieral Fund Reserves
PREPARED BY:
Janet Freeland
Senior Financial Analyst, Real Estate
CMR:415:02 Page 2 of 3
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
FRANK BENEST
City Manager
cc’ Community Skating Inc.
CMR:415:02 Page 3 of 3
ATTACHMENT A
0RD IN~A~CE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL. YEAR 2002-03 TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $50,000 FOR THE
CITY’S CONTRIBUTION TO THE COST OF A SOUND WALL FOR
THE TENNIS FACILITY AT 3005 MIDDLEFIELD ROAD
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June 17,
2002 did adopt a budget for fiscal year 2002-03; and
WHEREAS, on October 4, 1999, Council approved a BAO
appropriating $50,000.for the City’s contribution to the cost of the
sound wall and a related Amendment to the Option Agreement between
the City and CSI; and
WHEREAS, the $50,00~"~~originally budgeted in fiscal 1999-00
under the BAO 4591 approved by Council on October 4, 1999 was not
carried forward through the subsequent years; and was returned to.
the Budget Stabilization Reserve as of June 30, 2001; and
WHEREAS, City Council authorization is needed to amend the
2002-03 budget to make an additional appropriation of $50,000 as
hereinafter set forth; and
WHEREAS, the additional appropriation of funds from the General
Fund Budget Stabilization Reserve is a one-time cost and no future
year General Fund ongoing costs are anticipated from the
construction of this Sound Wall.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION i. The sum of Fifty Thousand Dollars ($50,000)) is
hereby appropriated to non-salary expenses in the Property
Management Functional Area in the Administrative Services
Department, and the Budget Stabilization Reserve is correspondingly
reduced.
SECTION 2. This transaction will reduce the
Stabilization Reserve from $22,680,000 to $22,630,000.
Budget
SECTION 3. 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 4. A mitigated Negative Declaration for the project was
approved by Council on October 13, 1998. No further environmental
review for the project is necessary under the requirements of the
California Environmental Quality Act (CEQA).
SECTION 5. As provided in Section 2.04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
Senior Asst. City Attorney
City Manager
Director of Administrative
Services
City of Palo Alto
A’FI’ACHMENT B
Budget Amendment Ordinances Impacting General Fund Reserves Approved-To-Date in 2002-03
Balance
Adopted Budget Projected Changes to BSR
City’s Contribution to the Cost of the Sound Wall for the Tennis
Facility at 3005 Middlefield Road
$22,740,000
($60,000)($60,000)
($50,000)($50,000)
BSR Balance After BAO’s t $22,6~0,000
9/26/2002