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HomeMy WebLinkAbout0137.094February 10, 1994 THE HONORAllLl! CITY comlelL palo Alto, California --: ... "". :;,';d""-:'¥o,',· .". :'~:~''; . 13 ~g.t Amendment for Water Keter Capital Improvement Project Mezbers of the Council: Report in Brie! This staff report requests the city council approve a Budget Amendment Ordinance (BAO) appropriating $35,000 to the Water Meters Capital Improvement Project {CIF-S01SJ. Funds are available for this appropriation in the Water SYlStem Improvemt!nt Reserve.. An increase in the meter exchange rate f~om 1200 to 1820 meters per year, increased testing of removed meters, a: change in meter setting &tandards and increased customer requests for new and/or large meter services are the reasons ~or this BAO request. Background The water utility meter shop was reorqanized in July of 1992 and combined with the cross connection control section.. The reorganiza.ticn of these two sections under one supervisor-led to an increc..se in the productivity of this new combint!d sect,ion. Staff originally planned to increase the ~eter replace~ent ~ate from 400 to 900 meters per year in FY92-93, from 900 to 1200 meters per year Ln FY93-94, and from 1200 to 1820 meters per year in PY94-9S. Due to productivity increases in the water meter shOp sInce July 1992, the meter replacement rate has acclerated to near the FY94-95 level in this fiscal year.. The increased rate of meter exchanges brings the City's meter exchange program within the American Water Works Association (AWWA) recommended guidelines. This action increased the requirement to budqet additional funds for meters, but has the overall effect of increasing system revenue by reducing the sY$tea's unaccounted water volume. CKIl:l37: 94 ,......, - . ' Increased frequency of t~sting replaced meters has sho~n that older meters with higher flows should be receiving higher priority in the utility's meter maintt,mance exchange proqram. These meters are now tested and maintained on a yearly basis. ThE'. increased cost of aaintaininq and replacinq deficient larger meters has caused additional expenses in this elP. The Council approved the water Utility Standards in December of 1992. These Stanoards incluaed additional strainers that are installed on all neW three inch and larqer services. The strainers are beinq installed to protect the delicate internal parts of the meter from large p!IIrticles and sedi1lent in the lIo'ater distribution system. The strainers 'Will extend the useful life o! the meters currently beinq installed. Detector meters on fire services are also beinq replaced as part of the meter exchange program. The additional expense for these parts and ~ters has increased budgeted costs for the Water Meter elP. More cUstOlDer requests have been processed this fiscal year for irriqation and large water services. Separate W'a't.er meters are no ... required by state. laW' .fer larqe landscaping projects. Some developers request individual meters for their condominium developments, in orde~ to control use of water at the site. The trend t"or larqer services will continue, as Palo Alto is bei:l9 redevelope~ with higher density housing and new indu&trial/co~ercial customers relocate in the City. The increased meter exchange program is cost effective and will result in increased revenues for the wat~r fund. Metered water systems are the best known way of equitably spreadinq th~ cost of water service to all vater system customers, but unless all meters are maintained at a high uniform level of efficiency, inequities aay result for the customer or the water utility. Funding An additional $35 /000 is being requested in order to meet the neeQs of the Water ~eter CIP for the remainder of this fiscal year. The cost ot the Watar Meter elP 'Was expected to increase after the water meter shop was reorganized and its workload was restructured. The increased costs for more. meters, new standard parts and additional labor were not expected to impact the Wate~ Meter CIP until FY 94-95~ Increased fundinq for the Water Meter CIP has been included in the 1994-99 CIP requests. CXR.=.137194 , E&£pJUliendation Staff recommends that council approve the attached BAO increasing the runds available in the Water Meter Capital Improvement project by $35,000 for FY93-94. Funds are available in the Water System Improvement Reserve. Res~ctfully Submitted, ~>-.-' C<.'· c2t4:r:t:. W. CWIAK 9 neerinq Manaqer w' r Gas and wastewater Director of Utilities -Ju.r1.-L ~l..un,r:.J' JUNE FLEKDfG City Manaqer Attachments: Budget Amendment Ordinance CllRI137 "4 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE 8l~ET FOR THE FISCAL y~~ 1993-94 TO PROVIDE AN ADDITIONAL APPROPRIATION FOR CAPITAL IMPROVEMENT PROJECT NL"KIIER 8015. ·WATER METERS'" WHEREAS, pursuant to the pr~visions of Section 12 of ~-ticle III ot the Charter of the City ot Palo Alto, the Council on June 21, 1993 did ~dopt a budget tor fiscal Ye4r 1993-94; and WHEkEAS, funding of $57,000 for capital Improvement Project (CIPJ No~ 1015, ·Water Meters,· was appropriated in the 1993-94 budget process; and WHElltAS, increaeed product.ivity due to a reorqanization in the Watl:tr utility Meter Shop ha.s led to a greater t.t)an expected number of water .etar replacements and increased testing of larger meters; ancI NIiEREAS , additional funding of $35,000 is required to continue the current level of work; NOW" THEREFORE, the council ot the city of Palo i\lt:o does ORDAIN as follows: ~QILl. The SWI of Thirty Five Tho\.1sand Dollars ($35,000) is hereby appropriated to capital IlIIprovement. Program Project e015,. ·Water Meters~· and the water System Improvement ~eserve is <:orrespondinqly reduced. SECTION 2. This transaction will reduce the Water System I:.provement Reserve from $6,041,996 to $6,006,996 as of February 2, 1994. SEalOR 3. As specified in Section 2.28.080(.a) ot the f"alo Alto Kunicipal Code I a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 4. Tbe council of the City of Palo Alto hereby finds that the enactment of this ordinance is not a project under the california Envircmae.ntal Quality Act and r therefore, no envirornaen­ ta 1 iapact assessment is necQssary. SECTION 5. Municipal Code, adoption. As provided in section 2.04.375 of tha Palo Alto this ordinance. shall become effective upon IIITRODUCED AND PASSEl): AYES: 1I0ES: AllSTEWrIONS: AlISEII'T: ATTEST: cIty cI&rk • APPROVED AS TO FORM: Sr. Asst. cIty Attorney APPROVED: Cl.ty Hanaqer DIrector of Finance DIrector of Util1ties ;u>PROVEll: Ma.yor