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HomeMy WebLinkAbout2000-11-13 City Council (31)City of Palo Alto City Manager’s Report TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: PUBLIC WORKS11 DATE:NOVEMBER 13, 2000 CMR:387:00 SUBJECT:ACCEPTANCE OF A TRANSFER IN THE AMOUNT OF $156,000 FROM THE ELECTRIC FUND PUBLIC BENEFIT PROGRAM AND APPROVAL OF TWO BUDGET AMENDMENT ORDINANCES IN THE AMOUNTS OF $156,000 AND $255,000 TO PROVIDE ADDITIONAL APPROPRIATIONS FOR CIP 10020, OFFICE SPACE RENOVATION PROJECT RECOMMENDATION Staff recommends that Council: Approve a Budget Amendment Ordinance (BAO) in the amount of $255,000 from the General Fund Budget Stabilization Reserve to provide an additional appropriation for Capital Improvement Program (CIP) project 10020. Approve a Budget Amendment Ordinance (BAO) in the amount of $156,000 from the Utilities Public Benefit Program to provide an additional appropriation for CIP project 10020. o Accept a transfer of $156,000 from the Utilities Public Benefit Program in order to install energy efficient heating, ventilating, and air conditioning (HVAC) equipment in the Civic Center building. BACKGROUND In July 1998, staff presented its fmdings to the City Council regarding severe overcrowding in City Hall and other City facilities (CMR:307:98). Subsequently, Council adopted the Office Space Renovation Project (CIP 10020) which outlined the plan to renovate various areas of the Civic Center, Lucie Stem Community Center and Cubberley Community Center in order to alleviate staff overcrowding. DISCUSSION Office Space Renovation CIP 10020 includes the renovation of the eighth floor for the City Attorney’s Office. At the inception of this CIP project, the eighth floor was designated for the Attorney’s office, but the scope of work was not fully determined.. Because design work for the eighth floor was CMR:387:00 Page 1 of 3 scheduled for a later phase of the project and therefore not completed, the work on the eighth floor was originally funded in the amount of $40,000 with the understanding that staff would return with a revised cost estimate once the design work was completed. The City contracted for preparation of design development and construction documents using the same finn that successfully handled the third and fifth floor projects. The proposed design includes a restored law library/conference room, paralegal work area, and extensive file storage space. The design also provides enclosed offices for staff attorneys in order to meet the confidentiality and security needs of a law office. The renovation will include required electrical, mechanical, floor finishes, paint and new furniture and will result in an additional $255,000 in renovation and furniture costs. Energy Efficiency Improvements The eighth floor project also creates an opportunity to improve the energy efficiency of the eighth floor heating and cooling in conjunction with the interior renovation. As part of the Utilities Department Public Benefits Program to save energy and water resources, a comprehensive building analysis of the Civic Center was completed. The analysis identified energy savings from eliminating the four separate package units now serving that floor, and creating a connection to the central boiler and chiller. The cost of the heating, ventilating and air conditioning (HVAC) work, estimated at $156,000, will be funded by Utilities as an efficiency demonstration project. This efficiency project will be distributed as a case study to commercial and industrial customers considering building renovations. In addition to this- demonstration project, an overall energy and water efficiency plan for City facilities is being prepared by Utilities which will address future infrastructure investments and sustainability initiatives. RESOURCE IMPACT The two attached Budget Amendment Ordinances request a total increase in expenditures for office space renovation (CIP project 10020) totaling $411,000. Of this amount, $255,000 will be funded from the General Fund Budget Stabilization Reserve and $156,000 will come from the Utilities Public Benefit Program. This is a one-time expense and there are no future year resource needs anticipated as a result of this BAO. Attachment C summarizes the BAO’s approved to date in 2000-01 that impact the Budget Stabilization Reserve (BSR) and also demonstrates the impact that both Budget Amendment Ordinances will have on the BSR if approved. POLICY IMPLICATIONS This report does not represent any change to existing City policies. ENVIRONMENTAL REVIEW This project is categorically exempt from California Environmental Quality Act and no further environmental review is necessary. CMR:387:00 Page 2 of 3 ATTACHMENTS Attachment A:Budget Amendment Ordinance in the amount of $255,000 Attachment B:Budget Amendment Ordinance in the amount of $156,000 Attachment C:Budget Amendment Ordinances Impacting the Budget Stabilization Reserve Approved to Date in 2000-01 PREPARED BY: DEPARTMENT HEAD: Karen Smith, Manager of Facilities Maintenance and Projects Tom Auzenne, Manager of Utility Marketing Services GLENN ROBERTS Director of Public Works DEPARTMENT HEAD: CITY ATTORNEY: CITY MANAGER APPROVAL: Director of Utilities CALONNE City Attorney ~UDREy SE~Oqq~ - Assistant to the City Manager CMR:387:00 Page 3 of 3 ORDINANCE NO. ATTACHMENT A ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2000-01 TO PROVIDE AN ADDITIONAL APPROPRIATION FOR CIP 10020, OFFICE SPACE RENOVATION PROJECT IN THE AMOUNT OF $255,000 WHEREAS, pursuant to the provisions ofSection 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, the Office Space and Renovation project (CIP #10020) was funded to provide for City office renovation and associated relocation expenses; and WHEREAS, the amount budgeted for renovation of the eighth floor ($40,000) was understood to be a preliminary figure, which would be revised based on completed design; and WHEREAS, the design has been completed, and the additional amount needed for the renovation and furnishings is $255,000; 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 to CIP project number 10020 are anticipated; and 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 Two Hundred Fifty- Five Dollars ($255,000) is hereby appropriated to Capital Improvement Project No. 10020 and the Budget Stabilization Reserve is correspondingly reduced. SECTION 2. This transaction will reduce the Stabilization Reserve from $14,324,753 to $14,069,753. 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. This project has been determined to be categorically exempt under Section 15302 of the California Environmental Quality Act. 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 Public Works ORDINANCE NO. ATTACHMENT B ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2000-01 TO PROVIDE AN ADDITIONAL APPROPRIATION FOR CIP 10020, OFFICE SPACE RENOVATION PROJECT IN THE AMOUNT OF $156,000 AND TO APPROVE A TRANSFER OF EQUAL AMOUNT FROM THE ELECTRIC FUND PUBLIC BENEFIT PROGRAM 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, the Office Space and Renovation project (CIP #10020) was funded to provide for City office renovation and associ&ted relocation expenses; and WHEREAS, as part of the Utilities Department public benefits program, an audit of the Civic Center indicated that significant energy savings could be achieved by connecting the eighth floor to the central chiller and boiler; and WHEREAS, the additional energy savings related work is eligible for funding from the Utilities Industrial Comprehensive Audit Program; and WHEREAS, the additional appropriation of funds from the Electric Fund Public Benefit Program to CIP project number 10020 is a one-time cost and no future year ongoing costs are anticipated; and 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 Hundred Fifty Six Thousand Dollars ($156,000) is hereby transferred from the Electric Fund public benefits functional area and appropriated to Capital Improvement Project Number 10020. SECTION 2. 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 3. This project has been determined to be categorically exempt under Section 15302 of the California Environmental Quality Act. SECTION 4. 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 Public Works Director of Utilities o!pJo ATTACHMENT C Budget Amendment Ordinances Impacting General Fund Reserves Approved-To-Date in 2000-01 BAO Description Cost Revenue Placeholders Already in the Impact on the Estimated General Fund Future Year2000-01 Adopted BSR Ongoing CostsBudget Estimated Beginning Budget Stabilization Reserve (BSR) Balance Adopted Budget Addition to BSR Public Safety Building - CIP 19820 Planning Transcription Services Office of Transportation Safety Grant Cubberley Theatre Chiller Replacement - CIP 10120 Arts Council Silicon Valley Grant Police Department Grants (1) Zoning Ordinance Update Office Space Renovation - CIP 10020 ($74,000) ($40,000) ($187,065)$187,065 ($22,000) ($5,192)$5,192 ($277,314)$277,314 $o $o $411,000 $156,000 $13,385,753 $1,075,000 ($74,000) ($40,000)$40,000 $0 $17,000 ($22,000) $0 $0 $0 $188,000 ($255,000) BSR Balance After BAO’s 1514,o69,7s3 ] - (1) Of this amount $121,259 will be deposited in the General Fund and $156,055 deposited in the Special Revenue Fund.