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Juoe 14. 1990
HONORABLE (ITY (QUKCll
PalQ Alto~ Califorlli
REFUS£ fUND: PAnlfllTS TO TI*: PALO AlT!! SANITATION (0111'00 IPASC_Q)
Members of tne touncil:
26
Staff req~est5 Caunell approval of t~e ittacned Budget Amendme~t Ordinance for
the Refuse fund" approprhting an additional '5850,000 to the P~yme':lts to tfle Palo
Alto Sanitation Company (PASCO] account in order for the (itf to JI'leet its
(ontf"actual obl igations to PASCO for refus.e collection services. $ufffcieRt
-funds exist ill the P.efuse SysteTJ rmprQ'oIelJ'lent Reserve.
Baclcsround
The CitJ and PASCO entered lftto the present contract 1~ ~arch 1987 (Contract
46B8)~ Tbe contract provides fDr refyse <o11ection ser~ices~ operation of the
Recyciing Center, operat;an of the curbside recycl10g program. and the e~pt110g
and lI1aimtenance €If tns.f!; receptacles. located fa the (it". includ'ing downtown and
He Califo·rlia Avenue business districts. This contract, wbic:lI extends through
1992, stipulates that the Cit, reimburse PASCO for s.enices rendered throuq'h He
payment of iI certa;. percent of collection revenues tfle (11.1 receives fr-.lTl the
utilitl bill> for.ll ehs .. , of billing' except biAS. That percentage is 47.31
percent for fiscal,ear ]989-90. fo," bins. the contract specifies that the (it1
pay PASCO 95 percent Qf bia revenues. collected.
Although l1onUtl), payments have heef:l accurate". made to PASCO based upon tne
percentage formula as stipulated t~ the contract. these payments have increased
b~YDnd the amount budgeted at tne beginning of the fi~al year. As a result,
s~fficient f~nds are not available to complete pa)~nts to PASCO for the balance
of tne fis.cal year. The amount budgeted for payments flas not been sufficient for
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two reilsons. Hrst t the 36 percent rate increilse for 1989-90 'has brought fa more
re'-lenu~ tha.r. budgeted, 1tE'~~;~9 the dollu ;:~)'mer:ts te-PASC'O, biS;o.~ un ttle
specified 41.31 ~ercent for the curre~t year. are ~lso higher. Seco"d~ due to
an error. the b~dget did not l~,lude funds (or the bjQ payments to PAS(O. 1ils
~.s been corrected ;. the re,;sed Refuse Fund budget for 1990·91 and 1991·31 •
.... 11 monies !live been properl, canetted, but the combif'laticn of the two factors
above requires t'hat iddflional fund~ be appropriated to pa)' PASCO tl1e amount due
them. The funds are i'f'illable 11 the Refus.e Fund System Improvement Reserve,
whic' bas il balance of approximatel, $6.27 million as of ~arch 31, 1990 .
RecQ!Ilt!f:ndatfon
Staff recommends t~at Council approve the attached Budget Amendment Ordjnance
transferring $B~IOOO (rQ~ the Refuse System Impro~ement Resefve to tne Payments
to PASCO account.
Respectf.lly suboitted,
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6i.I'ISTEHE
Budget Analyst
f:i~~~ 1{<fA'!~" ~.
EM ILYVHARRI SOlI
Director af Finance
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ORDINANCE NO.
ORDINANCE OF THE COUNCIL Of THE CITY OF PALO ALTO
AMENDING TIlE BUDGET FOR THE FISCAL YEAR 1989-90 TO PROVIDE
AN ADDITIONAL APPROPIUATION FOR PAYMENTS TO PASCO IN THE
RE ~·US E FUND
WHEREAS ... pursuant to the p=ovislons of section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June
26 .. 1969 did aQop,t a budget for fis:cal year 1939-90; and
WH:ERE.AS. the city has a contract 'With the Palo Al to Sanitation
company (PASCO) for refuse collection services; and
WHEREAS... that contract contains provisions to pay PASCO a
share of regular refuse billings as well as a share of bin rental
billings appearing on the City's utility bills; and
WHEREAS, insufficient funds have been budgeted in the Refuse
Fund to meet the City's contractual Obligations to PASCO for bin
rentals; and
WHF~EAS, funds exist in the Refuse System Improvement Reserve
(SIR) ;
NOW, THEREFORE, the council of the City of Palo Alto does
ORDAlN as follows:.
SECTION 1. The sum of Eigbt Hundred Fifty Thousand Dollars
($85,0,000) is hereb~~ appropriated to Payments to PASCO in t'ha
Refuse Fund .. and the System Imp,rovement Reserve in the Refuse Fund
is correspondingly decreased.
SECTIQ~. This transaction ~ill reduce the RefUse SIR from
$6,270 .. 0:0'0 to $5".420 .. 000 as of March 31" 1990.
§ECTION l. The Council of the City of Palo Alto hereby finds
that toe enactment of the ordinance is not a project under the
Cal i fornia EnvirOl"..n'Iental Quality Act and .. therefore, no environmen
tal impact assessment is necessary.
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Municipal Coda,
adoption.
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As provided in S~ction 2.04.315 of the Palo Alto
this ordinance shall become effective upon
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INTRODOCED AND PASSED:
AYES:
NOES:
ABSTEl'lTIO!,S:
ABSENT:
ATTEST:
city Clerk Mayor
APPROVED AS TO FOR/'!:
Asst~ City Attorney
APPROVED:
City Manager
Directo·r of Finance
DIrector cf Public Works 89-0.42
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