Staff Report
PREPARED BY: MATT MORLEY
Parks and Public Works Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 03/19/2019
ITEM NO: 6
DATE: MARCH 11, 2019
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: AUTHORIZE A BUDGET ADJUSTMENT IN THE AMOUNT OF $600,000 FROM
DEVELOPER FEES COLLECTED IN FISCAL YEAR 2017/18 FOR THE NORTH 40
PROJECT TO ALLOW FOR PROJECT REVIEW AND INSPECTION COSTS
RECOMMENDATION:
Authorize a budget adjustment in the amount of $600,000 from developer fees collected in Fiscal
Year (FY) 2017/18 for the North 40 project to allow for project review and inspection costs.
BACKGROUND:
In February 2018, the Town received payment of approximately $1.9M for fees associated with
the North 40 project. Fees are collected as a way to pay for Town services on development
projects. On April 17, 2018 the Town Council approved a contract with CSG Consultants in the
amount of $500,000 to augment staff work for plan review and inspection services on the North
40 project. Additional funding needs for other services such as special inspections, are also
anticipated up to an additional $100,000.
DISCUSSION:
This action will allocate funds in the FY 2018/19 budget allowing staff to encumber funds for the
consultant agreement to CSG Consultant Services as approved. At the time of approval funds
were not encumbered nor set up as a carryover budget item from the prior year. The additional
funds will allow for ongoing testing, especially related to improvements in the right of way to
ensure the Town receives a quality project.
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SUBJECT: AUTHORIZE A BUDGET ADJUSTMENT IN THE AMOUNT OF $600,000 FROM
DEVELOPER FEES COLLECTED IN FISCAL YEAR 2017/18 FOR THE NORTH 40
PROJECT TO ALLOW FOR PROJECT REVIEW AND INSPECTION COSTS
DATE: MARCH 11, 2019
S:\COUNCIL REPORTS\2019\03-19-19\06 N40 Fee Collection Budget Adjustment\Staff Report.FINAL.docx 3/14/2019 8:38 AM MM
CONCLUSION:
Staff recommends that Town Council authorize a budget adjustment of $600,000 in FY 2018/19
from fees collected in February 2018 to support delivery of the North 40 project.
COORDINATION:
This project has been coordinated with the Finance Department.
FISCAL IMPACT:
Fees collected in FY 2017/18 were closed at the end of the fiscal year and are reflected in the FY
2018/19 beginning fund balance. The recommended source of this budget adjustment will be
taken from available FY 2018/19 beginning fund balance from the General Fund Reserve for
Special and Capital Projects.
ENVIRONMENTAL ASSESSMENT:
The fiscal action and associated agreement are not a project defined under CEQA and no further
action is required.