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Home My WebLink About0369.093, . , - ~;." ... " "' . " }. ~ .... . . June 23, 199 THE HONOR/l.BUE CITY cm.JNCIIJ Palo Alto, California 1 ' ... ~j BAg to Provide .a.dditionaJ. Funding for 't.h? "Tater M':!ters elP U!Q],.ll Members ot the Council: R""port in Brief This staff report requests the City Council to approve a Budget Amendment Ordinance (BAO) to cover $15, ODD. overexpenditur.as in tlle Water Meters Capital Improvement Project ,CIP-S01S). Funds are available to cover this expense in the w"ater Fund system Improvement Reserve. Increased product i vi ty # due to a reorganizatiol"'. in the Wat!:!r Meter Section, resulted in a 40 perc..,nt increase in water meter exchanges which led to this over expenditure. The accelerated activities in the ;Ir1.ete.r exchange program 'Were influenced by the reorganization of the metering/backflow section in July of 1992. Meter ~eplacement efforts were focused on intermediate water m&ters (1 1/2 u and 2") which were past their life cycle and whose accuracy was suspect. In the past, staff has iden->;.ified that -slow; or stuck water 1:1sters. con'tribute to lost rev.enues tt ..... ough unaccou:ilted-[or ..... ater losses. Interm~diate size meters, according to AWWA, standards sl"wuld be exchanged ever)'" ten years to ensure accuracy. The escalated meter exchanges are bringing us to~ard this industry standard. Du~ to this expanded W'ork productivity, exchang~s have increased by over 40 percent from 500 meters per year to 900 mete.rs per year. Discussion: Alth.ough it ""as believed that the r;;.:eorgcmization would increase pl"oductivit'l, an increase of this level was unexpected so soon after the reorganization. In previous years only half of the money allocated in the CIP project ~as spentt so it was anticipated that there -would be ample funds to cover the necessary work for the CKR~36':'3 1 • ~ , 1 1 t - .... -. remainder ot fiscal year 1992-93 as ~pII as FY 1993-94. A midyear re'lie~ of the st3tt..:S of the project revealed sufficien~ funds based or. past productiv.ity levels. THe overexpendit'..lre ",-as disco\o'ered with the tinanicjal reports fer the close of April 1993. This is a highly successful progra~ r~n by energetic and enthusiastic staff. The program is cost effective and results in savings for the Water Fund. Nevertheless, the overexpenditure resulted from rnanageroent staffls failure to mcnitot" expenditures as clQs-ely as requjred. Tr.is is a serious ovoe.rsight , and utilities management staff acknowledges and takes full r02s~onsibility for this error. A comprehensive monitoring progr~m has been implemented. Additionall}', thE Interim Director has taken appropriate disciplinary steps for responsible staff and directed the staff to halt all activities in the meter exchange program immediately. staff will monitor budgets tor this program or: at least a hi-weekly basis and report to the Interim Director on the status. The requested $15,000 ~ill cover the expenses tc date. staft recommends that council approve the attached Budget Amendment ord.inance increasing the funds available in the Water M~ter Capital Improvment projects by $15~OOa for FY 1992-93. Funds are aVailable in the Water Fund System Improvement Re~erve. Respectfull}' submitted~ ~*, f#;r:-~;?' ROBERT A. CO %'ER Assistant Direct r of utilities :2J{~~2 Interim Director of Utilities FLEM!N~ J CM.R:.369:93 L ,.:.: - ORDINi\NCE NO. ORDINANCE OF TH.E COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BuDGET fOR 1'HE FISCAL YEAR 1992-93 TO PROVIDE ...... DDITICNAL FUNDING FOR THE ~ATER METERS CAPITAL lMPROVEMENT PROJeCT (8815) WHEREJI,S , pursuant to the pro...-isions of Section 12 of Article III of the charter of the city of Palo Alto~ the Council on ~une 22, 1992 did adopt a budget for fiscal year 1992-93; and WHEREAS I funding for the capital Improvernent project 8015, Water Meters , ~as appropriated in the 1992-93 budget processi and WHEREAS, irtcrea.seCl. productivity by water Fun.d empV:J)!'ees has led to a greater-than expected number of 'Water meter replace?!'.ents; and WHEREAS, capital ImproveIDent Project SOlS is therefore currently overexpended by $15,COO; NOW, THEREFORE. the Council of the city of Pale Alto does ORDAIN as follows: SECTJON 1. The sum of" Fifteen Thousand Dollars {$15,OOO) is hereby appropriated to the Capital Improvement Program PrCJject 8015, Water Meters, and the Water system Improvement Reserve is correspondingly reduced. SECTION ~. This transaction -will reduce the Water system Improvement Reserve from $353/794 to $338,794 as of June 7, 199). SECTION::.!. The Council of the city of P2;10 Alto hareb:t finds that the enactment of this ordinance is ~ot a pro~ect under the California E!'wironme.ntal Quality Act and, therefore I no environD1en tal i~pact assessment is necessary. SECTION 4. Municipal Code, adoption. As provided in Section 2.0~.375 of the Palo Alta this ordinance shall become effective upon INTRODUCED AND PISSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: City Clerk APPROVED AS TO FORM: Sr. Asst. Clty Attorney APPROVED: Cl.ty Manager Director of Finance DtrectJr of UtilitIes 92·3.3: -"