HomeMy WebLinkAbout2001-06-04 City Council (3)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
3
FROM: CITY MANAGER DEPARTMENT: UTILITIES
DATE:
SUBJECT:
JUNE 4, 2001 CMR:239:01
REQUEST FOR APPROVAL OF A BUDGET AMENDMENT
ORDINANCE IN THE AMOUNT OF $200,000 FOR CAPITAL
IMPROVEMENT PROJECT NUMBER 9802, DARK FIBER OPTICS
COMMERCIAL CUSTOMER DESIGN AND CONNECTION
SERVICES
RECOMMENDATION
Staff recommends that Council adopt the attached Budget Amendment Ordinance (BAO) in
the amount of $200,000 for the Fiber Optics Customer Design and Connection Services
Capital Improvement Program Project (CIP Number 9802).
BACKGROUND
The Fiber Optics Customer Design and Connection Services CIP provides capital funding
for the addition of new fiber optic plant for customer connections. The improvements
provided in this CIP include the installation of new conduits, fiber optic cables, splices, and,
enclosures. The City receives 100 percent cost reimbursement from customers for the
installation of new services,
DISCUSSION
The volume of requests for connections tothe City’s fiber optic network has accelerated over
the last year due to the increased customer requests for fiber optic service. The adjusted
budget for this CIP for fiscal year 2000-2001 was $489,303~ For fiscal year 2000-01,
approximately $434,154 has been expended in completing customer connections as of March
31,2001. Approximately $ 55,149 remains to fund customer connections, however this is not
sufficient funding to complete all the projects currently in process. Furthermore, the
telecommunications group now has marketing staff; therefore customer interest in the fiber
optic connections is expected to increase. Staff projects the need for an additional $200,000
in order to fund service connections through the end of the fiscal year. Each service
connection increases revenue through leasing of the fiber backbone, and all service
connection costs are fully reimbursed by the connected customers.
CMR:239:01 Page 1 of 2
RESOURCE IMPACT
The $200,000 increase requested will be offset by a $200,000 increase, in revenues from
customer connection payments. In addition, the additional connections will generate ongoing
revenue through the associated leasing of the fiber backbone. The attached BAO requests an
additional appropriation of expenses and has no impact on the Electric Distribution Rate
Stabilization Reserve and no future year ongoing costs are anticipated as a result of this
BAO.
POLICY IMPLICATIONS
This report does not represent any change to existing City policies.
ENVIRONMENTAL REVIEW
This project is categorically exempt from the provisions of the California Environmental
Quality Act (CEQA) pursuant to Section 15301 (existing facilities) of the CEQA guidelines.
ATTACHMENTS
A: Budget Amendment Ordinance
PREPARED BY:
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
.JOH~ "~~l~ector of Utilities
EM~EM~:" ’ILY HA~ SOLON
Assistant City Manager
CMR:239:01 Page 2 of 2
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 2000~01 TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $200,000 FOR THE
FIBER OPTIC CUSTOMER DESIGN AND CONNECTION SERVICES
CAPITAL IMPROVEMENT PROJECT NUMBER 9802
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June19,
2000 did adopt a budget for fiscal year 2000-01; and
WHEREAS, the Fiber Optics Customer Design and Connection
Services capital improvement project provides funding for the
addition of new fiber optics for customer connections, including ihe
installation of new conduits, fiber optic cables, splices, and
enclosures; and
WHEREAS, the volume of requests for connections to the City’s
fiber optic network has accelerated; and
WHEREAS, an additional appropriation of $200,000 is.needed to
fulfill the anticipated request for service connections through the
end of the fiscal year; and
WHEREAS, this cost will be fully reimbursed by customers; and
WHEREAS, the additional appropriation of funds is aone-time
cost and no future year ongoing costs are anticipated; and
WHEREAS, CityCouncil 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. Revenue in the Electric Fund is increased, by the.
sum of $200,000 to reflect reimbursement from customers for service
connections.
SECTION 2. The sum of Two Hundred Thousand Dollars ($200,000)
is hereby appropriated to Capital Improvement Program Project Number
9802, Customer Design and Connection Services.
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. This project is categorically exempt from the
.provisions of the California Environmental Quality Act (CEQA)
pursuant to Section 15301 (existing facilities) of the CEQA
guidelines.
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:City Manager
Senior Asst. City Attorney Director of
Services
Administrative
Director of Utilities
CITY OF PALO ALTO
MEMORANDUM
DATE:
TO:
SUBJECT:
May 21,2001
City Council Members
APPROVAL OF A BUDGET AMENDMENT ORDINANCE TO
CREATE CAPITAL IMPROVEMENT PROJECT 0121, NATURAL
GAS BACK UP GENERATOR PROJECT, IN THE AMOUNT OF
$4,612,739 AND APPROVAL OF CONTRACT WITH ENERGY
MASTERS INTERNATIONAL IN THE AMOUNT OF $4,512,739
FOR THE PROCUREMENT, INSTALLATION, AND START-UP OF
A 5 MEGAWATT BACK UP NATURAL GAS GENERATOR
SYSTEM
Some corrections needed to be made to the staff report for item No. 8. They are
as follows:
The sales tax on the equipment purchased had been omitted from the
budget numbers and exhibits. The CMR, BAO and CONTRACT have all
been modified to include the amount of $259,200 in sales tax.
A Planergy International subsidiary, ENERGY MASTERS
INTERNATIONAL, needs to be the signatory on the contract due to
General Contractor licensing conditions. Energy Masters International is a
wholly owned subsidiary of Planergy International. The people signing the
contract and doing the work are unchanged. The CMR and Contract have
been modified to reflect the CONTRACTOR name substitution.
of City-ofPalo Alt~ Utilities E~~SON
Assistant City Manager