HomeMy WebLinkAbout0492.093, ~.
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Sep~ernber 16, 199)
THE HONORABLE C1TY COUNCIL
Palo Alto, California
Members of the Council:
Rtport in Brief
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At 3n emergency council neeting held on Augus~ 26 r 19~3, Council
granted the City Manager the authority to spend up to $50.000 in
cit~~ staff resources to assist Palo Alto Community Child Care
(PACCe) in addressing its short-te:rll1 financial crisis and its long
term financial solvency. This report requests Council approval of
an ordinance amending the budget for fiscal year 1993-94 to r-eflect
this decision.
Background
The City currently maintains a monthly contract .... ith Palo Alto
Community Child Care to provide SUbsidized child care services to
low-income Pale Alto residents. PACCC's 1993-94 contract with the
City provides funding in the amount of $345,500. $275,500 is tor
direct SUbsidized child care provision and t.he remaining $"15,000 is
utilized [or administration of the subsidy program. MonthljY
allocation of thes~ funds provides PACCC ~ith up to $28.792: direct
services of up to $22,542 and $6,250 for administrative support_
Staff has; begun working ""'ith PACCC administrator.3 to perform a
financial analysis of PACCC and to identify the resources necessary
for PACCC to continue to manage the central office to support the
agen~y's fourteen child care programs.
DiscusS:.iQ...n
During August 1993, PACCC's Acting Executive Director identified a
shortfall in PACCC's revenues and I"equested an advance on its
contract so that it would be able to meet its payroll. At this
time, PACCC identified as a major problem a seasonal redUction in
PACCC's tui ticn revenue. due to low school-age enrollment during
the months of July and August.
PACCC "has been unable to complete its 1993-94 budget due to
problems wi"Lh its financial management s),sten. There have been
siqnificant problems with reconstructiYlg financial information~
including bank reconciliations and fundamental accounting records,
due to the loss of key management staff at PACCC. P1>o..CCC has
requested the Cityf s a:c;.sistance in bringing stability to their
financial operations.
CMR:492:93
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Staff recommends that the City Council adopt the attached Budget
A."l'oendrnent Ordinance to provide the City Manager with t.he authority
to spend up to $50,000 in City resources to assist PACCC ~ith its
financial recovery~
Attachment: Budget Amendrr,e!'lt Ordinance
CHR:492:93
ORDINANCE NO.
ORDUJANCE OF THE COl'NCIL OF THE CITY OF PALO ALTO
AMENDING THE B"DGET FOR THE FISCAL YEAR 1993-94
TO PROVIDF. AN ADDITIONAL APPROPRIATION FOR
ACCOUNTING AND FINANCIAL PLANNING ASSISTANCE
TO PALO ALTO COMMUNITY CHILO CARE
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the city of Palo Alto, the council on June
21, 1993 did adopt a b~dget for fiscal year 1993-94; and
WHEREAS, the city of Palo Alto maintains a contract with Palo
Alto Community Child Care (PACCC) to provide subsidizeQ child ca~e
services to low-income Palo Alto residents; and
WHEREAS, PACCC has been unable to complete its 1993-94 budqet
due to problems with its financial management system and has had
di~ticulties in reconstructing fundamental accounting information
due to the loss of key management staff; and
WHEREAS, City Council held an emergency meeting on August 26,
1993 to discuss PACCC's financial problems and PACCC's request for
City assistance 'With its financial systems;
WHEREAS, City Council authorized the city Manager to spend up
to $50,000 in City resources to assist PACCC in developing its
financial management systems and to bring stability to PACCC's
rinancial operations;
NOW, THEREFORE, the council of the city of Palo Alto does
OROAIN as follows:
SECTION 1. The SU:tl of Fifty Thousand Dollars {$SO, OOO} is
he't'eby appropriated to Contract services in tho:! Administration
Division of the Department of Finance, and the Budget Stabilization
ReservQ is correspondingly reduced.
~S~E~CT.L~I~O~NL-~2~. This transaction will reduce the BUdget
Stabilization Reserve from $10,985,665 to $10,935,865 as of June
30, 1993.
SECTION 3. The Council of the City of Palo Alto hereby finds
that the enactment of this ordinance is not a project under the
California Environmental Quality Act and~ therefore, no environmen
tal impact assessment is necessary.
SECTION 4.
MuniCipal Code.
adoption~
As provided in Section 2.04.375 of the Palo Alto
this ordinance shall become effective upon
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
AT'I'EST:
city Clerk
APPROVED AS TO FORM:
Sr. Asst. city Attorney
APPROVED:
c, ty Manager
Director of Financ3
Oirector of community
Services
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APPROVED:
Mayor