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Home My WebLink About2001-03-06 City Council (3)City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL ATTN:FINANCE COMMITTEE FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE:MARCH 6, 2001 CMR: 149:01 SUBJECT:2000-2001 ADJUSTED BUDGET - MID-YEAR AMENDMENTS AND CAPITAL IMPROVEMENT PROGRAM STATUS RECOMMENDATION Staff recommends that the City Council adopt Attachment 1, a Budget Amendment Ordinance (BAO) supported by three exhibits: 2000-2001 Adjusted Budget - Midyear Amendments and Capital Improvement Program Status Report (Exhibit A); a Capital Improvement Program (CIP) project funding-request to propose upgrade to existing traffic signals to increase safety and reliability (Exhibit B); and a CIP project funding request to repair and replace certain components of the City’s existing storm drainage system (Exhibit C). BACKGROUND Staff has analyzed the financial results for the first six months of the fiscal year 2000-01 and. has updated full fiscal year budget projections, including reserve balances, for the General Fund, Enterprise Funds and Capital Improvement Program (CIP) projects. As approved by the Finance Committee, midyear reporting of key plans and impact measures (last year’s CMR: 173:00) has been discontinued. Following the direction of the Finance Committee, 2000-01 midyear reporting is simpler, focusing on the’specific changes to the current year budget, rather than on broad, trend and financial position analysis. The presentation of the budget schedules has been improved to show clearly how operating results affect reserves. As discussed with the Finance Committee, staff intends to focus its analytical efforts on the yearend status report, which will add more comparative information to other cities, discuss program accomplishments in more detail and continue to improve the desktop publishing quality. CMR: 149:01 Page 1 of 3 DISCUSSION The overall financial position of the City is healthy, particularly in the General Fund where revenues continue to exceed original projections. Some Enterprise Funds, particularly Electric and Gas, continue to struggle with the dramatic increases in prices for commodity supplies arising from the deregulated market. Please see the attached 2000-2001 Adjusted Budget - Midyear Amendments and Capital Improvement Program Status Report (Exhibit A of the Midyear BAO) for additional discussion. RESOURCE IMPACT Adoption of the attached ordinance will allow for certain adjfistments to the fiscal year 2000- 01. Budget, based upon updated projections and the establishment of a new General Fund CIP project. With the approval of this proposed BAO, the projected ending Budget Stabilization Reserve for the General Fund increases $1.6 million from its current adjusted budget level of $20.2 million to the Council approved maximum of $21.8 million. The General Fund Infrastructure Reserve increases $1.3 million in the midyear budget to a projected balance of $13.9 million at yearend. The projected ending Rate Stabilization Reserve total for all Enterprise Funds combined increases by $1.7 million from its current adjusted budget level of $49.1 million to $50.8 million in the midyear adjusted budget. POLICY IMPLICATIONS This recommendation does not represent any change to existing City policies. ENVIRONMENTAL ASSESSMENT This is not a project for purposes of the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment 1: Exhibit A Exhibit B Exhibit C Budget Amendment Ordinance (BAO) Approving Midyear Adjustments 2000-2001 Adjusted Budget - Midyear Amendments and Capital Improvement Program Status report Traffic Signals Upgrade, CIP 8930 Collection Systems Improvements, CIP (8870) PREPARED BY: Stanley Arend, Acco)m/~ng Manager’(Report Coordinator) CMR: 149:01 Page 2 of 3 DEPARTMENT HEAD APPROVAL: CARL YEAT’, Director,inistrative Services CITY MANAGER APPROVAL: ~Y HARRISON Assistant City Manager CMR: 149:01 Page 3 of 3 Attachment ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2000-01 TO ADJUST BUDGETED REVENUES AND EXPENDITURES IN ACCORDANCE WITH THE RECOMMENDATIONS IN THE MIDYEAR REPORT WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 19, 2000 did adopt a budget for fiscal year 2000-01; and WHEREAS, after reviewing the current budgeted revenues and expenditures for fiscal year 2000-01, adjustments to the budget are recommended to more accurately reflect year-end projections; and WHEREAS, the adjustments include an additional position of Deputy .Public Communications Officer and a position reclassification from Public Communications Officer to Public Communication Manager, both of which require an amendment to the Table of Organization. WHEREAS, City Council authorization is needed to amend the 2000-01 budget as hereinafter set forth. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION i. The sum of One Million, Five Hundred Eighty Four Thousand, Nine Hundred Ninety Four Dollars ($1,584,994) is hereby added to the General Fund. Budget Stabilization Reserve Fund, as described in Exhibit A, which is incorporated herein by this reference. As a result of this change, the Budget Stabilization Reserve will increase from $20,171,000 to $21,755,994. SECTION 2. The sum of One Million, Three Hundred Fifty Nine Thousand Dollars ($i,359,.000) is hereby added to the Reserve for Infrastructure Improvements, as described in Exhibit A. SECTION 3. The sum of Six Hundred Eighty One Thousand, Four Hundred Dollars ($681,400) is hereby appropriated to Capital Improvement Project No. 8930, Traffic Signals Upgrade Project, as described in Exhibit B which is incorporated herein by this reference. Revenue in the Electric Fund is increased by the sum of $224,700 to reflect reimbursement from the State of California for a portion of the work. The remaining funding for CIP 8930 will come from the Public Benefits Reserve Fund within the Electric Fund, which is hereby decreased by $456,700. SECTION 4. The sum of Two Hundred Thousand Dollars ($200,000) is hereby appropriated to Capital Improvement Project No. 8870, Collection System Improvements, as described in Exhibit C which is incorporated herein by this reference. Funding is provided by proceeds and interest income from the 1995 Series A, Utility Revenue Bonds. SECTION 5. The sum of Three Hundred Ninety Eight Thousand, Five Hundred Twelve Dollars ($398,512) is hereby added to the Distribution Rate Stabilization Reserve in the Electric Fund to refiect additional revenue in the Electric Fund as are described in Exhibit A. SECTION 6. The sum of Four Hundred Thousand Dollars ($400,000) is hereby added to the Reappropriation Reserve in the Electric Fund to reflect reduced expenditure in the Electric Fund as are described in Exhibit A. SECTION 7.. The sum of Nine Hundred Thousand Dollars ($900,000) is hereby reduced from the Public Benefits Reserve in the Electric Fund to reflect additional expenditure as are described in Exhibit A. SECTION 8. The sum of Five Hundred Sixty Thousand, Five Hundred Fifty One Dollars ($560,551) is hereby reduced from the Distribution Rate Stabilization Reserve in the Gas Fund to reflect reduced revenues in the Gas Fund as are described in Exhibit A. SECTION 9. The sum of Nine Hundred Seventy Two Thousand Dollars ($972,000) is hereby added to the Supply Rate Stabilization Reserve in the Gas Fund to reflect additional revenues in the-Gas Fund as are described in Exhibit A. SECTION i0. The sum of Three Hundred Eleven Thousand, Seventy Eight Dollars ($311,078) is. hereby reduced from the Rate Stabilization Reserve in the Water Fund to reflect additional expenditure in the Water Fund as are described in Exhibit A. SECTION ii. The sum of One Million, Three Hundred Fifty Thousand Dollars ($1,350,000) is hereby added to the Rate Stabilization Reserve in the Refuse Fund to reflect additional revenues in the Refuse Fund as are described in Exhibit A. SECTION 12. The sum of One Hundred Forty Five Thousand, Eight Hundred Five Dollars ($145,805) is hereby reduced from the Rate Stabilization Reserve in the Wastewater Collection Fund to reflect reduced revenues in the Wastewater Collection Fund as are described in Exhibit A. SECTION 13. The Table of Organization as amended to reflect changes shown in the attached Exhibit D is hereby approved. SECTION 14. As specified in Section Alto Municipal Code, a two-thirds vote required to adopt this ordinance. 2.28.080(a) of the Palo ~ of the City Council is SECTION 15. The Council of the City of Palo Alto hereby finds that this midyear adjustment is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. However, projects described in this ordinance will be assessed individually as appropriate. SECTION 16. As provided in Section 2.04.350 of the Palo Alt0 Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor City Manager APPROVED AS TO FORM: Senior Asst. City Attorney Director of Administrative Services ATTACHMENT 1 Exhibit B PROJECT DESCRIPTION This project upgrades existing traffic signals to increase safety and reliability, and to meet current standards. It also replaces existing obsolete intersection controllers. It will fund replacement of incandescent lighting with high efficiency light emitting diode lamps. PROJECT JUSTIFICATION Traffic signals upgrade is essential to respond to traffic safety and traffic flow issues, thus reducing traffic accidents, travel time, energy consumption and air pollution. The existing controllers are no longer manufactured or serviceable and the central computer is over ten years old. Due to the age of the current traffic signal system and the City’s need to anticipate emergencies and collect data, it is essential to upgrade and/or replace the traffic signal system infrastructure. Controller replacements will be phased in through 2004-05. Replacement of traffic signal lamps with high efficiency Light Emitting Diode (LED) type will provide energy savings of approximately 1.4 million kWh, demand savings of 161 kW, and a reduction of energy costs of over $120,000 annually. Labor costs will also be saved when the present replacement cycle of 7 months for incandescent lamps is extended to 7 years for the longer lasting LED lamps. The City of Palo Alto was approved for grant funding from the California Energy Commission (CEC) for LED retrofit. Lamp replacement will be completed by June 2001. FUTURE FINANCIAL REQUIREMENTS FISCAL YEAR PY Budget 2000-01 2001-02 2002-03 2003-04 2004-05 AMOUNT Ongoing $681,400 $175,000 $180,000 $185,000 $190,000 COMPONENTS Upgrade signals and replace controllers and lamps Upgrade signals and replace controllers Upgrade signals and replace controllers Upgrade signals and replace controllers Upgrade signals and replace controllers Sources of Funding: Electric Fund with $224,700 reimbursement from California Energy Commission traffic signal LED retrofit grant. IMPACT AND SUPPORT ANALYSIS ¯Environmental: ¯Design Elements: ¯Operating: ¯Telecommunications: Categorically exempt under section 15201 of CEQA, minor change to an existing facility Installation of new or larger traffic signal control cabinets are reviewed by the Archi- tectural Review Board Replacement of obsolete controllers will reduce maintenance expenses. Addition of signalized intersections increases maintenance. Increases in costs are recovered through Rate Schedule E-16. This project will require intercounection with broadband or fiber optic system. COMPREHENSIVE PLAN This project furthers Program L-81 and N-63 of the Comprehensive Plan. ATTACHMENT 1 ExhibitC PROJECT DESCRIPTION This ongoing project provides needed improvements to the City’s existing storm drain system by repairing or replacing deteriorated curb, gutter and other drainage infrastructure or by augmenting the drainage capacity of the system. The project scope is being modified in order to address the most critical drainage needs and to utilize limited remaining funds in a cost-effective manner. Funding is provided through remaining proceeds and interest from a prior bond issuance. PROJECT JUSTIFICATION Repair/replacement of deteriorated drainage infrastructure and drainage system capacity upgrades are needed to minimize street ponding during storm events. Curb and gutter, an important component of the City’s storm drainage system, conveys rainfall runoff from streets and properties to storm drain inlets. Replacement of broken, miasing, raised, or sunken sections of curb and gutter will reduce street ponding during storm events. FUTURE FINANCIAL REQUIREMENTS FISCAL YEAR PY Budget 2000-01 2001-02 2002-03 2003-04 2004-05 AMOUNT $200,000 COMPONENTS Airport storm water pump station modifications; storm drain rehabilita- tion and minor modifications to address chronic street ponding; curb and gutter replacment Sources of Funding: Storm Drainage Fund (bond funding) IMPACT AND SUPPORT ANALYSIS ¯Environmental:Categorically exempt under Section 15302 of CEQA, modifications to existing facil- ¯Design Elements: ¯Operating: ¯Telecommunications: ities. None. Public Works Department, Storm Drainage: reduced maintenance as repairs and modifications are made. None. COMPREHENSIVE PLAN This project furthers Policy N-24 of the Comprehensive Plan. Exhibit D TABLE OF ORGANIZATION - GENERAL FUND 1999-00 2000-01 2000-01 Adjusted Adopted 2000-01 Adjusted Budget Budget Changes Budget City Manager ? Administrative Secretary-Confidential Administrative Assistant Assistant. City Manager City Manager Deputy City Manager-Special Projects Deputy Public Communications Officer Executive Secretary-Confidential Management Assistant Manager, Economic Resources Office Specialist Public Communication Manager Public Communication Officer Senior Executive Assistant Staff Assistant to City Manager 1.00 0.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 1.00 0.00 1.00 1.00 1.00 1.00 1.50 2.50 1.00 1.00 1.00 1.00 0.00 1.00 Totals 0.00 1.00 1.00 1.00 0.00 1.00 1.00 0.00 1.00 1.00 2.50 1.00 1.00 -1.00 0.00 1.00 1.00 Police Department Administrative Assistant Administrator, Police Animal Control Officer Animal Services Specialist Assistant Chief of Police Business Analyst Chief Communication Technician Code Enfomement Officer Communication Technician Community Service Officer Coordinator, Police Technical Services Coordinator, Communications Court Liaison Officer Crime Analyst Executive Secretary Office Specialist Parking Enforcement Officer Parking Examiner Police Agent Police Agent/Advance Police Captain Police Chief Police Lieutenant Police Officer 10.50 10.50 1.00 11.50 0.00 1 ~00 1.00 1.00 4.00 4.00 2.00 ¯ 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 5.00 5.00 0.00 1.00 1.00 0.00 1.00 1.00 1.00 1.00 1.00 0.00 1.50 1.50 6.00 6.00 0.50 0.50 19.00 19.00 1.00 1.00 2.00 2.00 1.00 1.00 6.00 6.00 52.00 52.00 1.00 1.00 4.00 2.00 1.00 1.00 1.00 1.00 2.00 5.00 1.00 0.00 1.00 1.00 0.00 1.50 6.00 0.50 19.00 1.00 2.00 1.00 6.00 52.00 1999-00 Adjusted Budget 2000-01 Adopted Budget 2000-01 Changes 2000-01 Adjusted Budget Police Records Specialist Police Sergeant * Program Assistant Property and Evidence Technician Public Safety Dispatcher Public Safety Dispatcher-Chief Staff Secretary Superintendent, Animal Services Supervisor, Animal Services Supervisor, Police Service Veterinarian Veterinarian Technician Volunteer Coordinator 10.00 10.00 14.00~14.00 1.00 1.00 2.00 2.00 16.00 16.00 5.00 5.00 5.00 5.00 1.00 1.00 1.00 1.00 3.00 3.00 1.00 1.00 2.00 2.00 1.00 1.00 -1.00 1.00 10.00 15.00 1.00 2.00 16.00 4.00 5.00 1.00 .......... 1.00 4.00 1.00 2.00 1.00 Totals 173.00 173.00 0.00 174.00 * The additional 1 FTE position will be eliminated through attrition once the associated funding ends (this position was previously added in 00-01 (CMR:390:00) for a total of 15.00 FTE). RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE COMPENSATION PLAN FOR MANAGEMENT AND CONFIDENTIAL PERSONNEL AND COUNCIL APPOINTED OFFICERS ADOPTEDBY RESOLUTION NO. 8000 AND AMENDED BY RESOLUTION NO. 8027 TO DELETE THE CLASSIFICATION OF ~ PUBLIC COMMUNICATIONS OFFICER AND ADD THE CLASSIFICATIONS OF PUBLIC COMMUNICATIONS MANAGER AND DEPUTY PUBLIC COMMUNICATIONS OFFICER The Council of the City of Palo Alto does RESOLVE as follows: SECTION i. Pursuant to the provisions of section 12 of Article III of the Charter of the City of Palo Alto, the Management Compensation Plan, adopted by Resolution No. 8000 and amended by Resolution No. 8027 is hereby amended by deleting the classification of Public Communications Officer and adding the~ classifications of Public Communications Manager and Deputy Public Communications Officer, as shown in Exhibit "A", attached hereto and incorporated herein by reference. SECTION 2. The Director of Administrative Services is authorized to implement the amended classifications as set forth in Section i. // // // // // // // // // 010327 cl 0032438 1 SECTION 3. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney Mayor City Manager Director of Human Resources Director of Administrative Services 010327 cl 0032438 2