Staff Report Almond Grove Staff ReportOWN OF
SOS eAt�s COUNCIL AGENDA REPORT
DATE: OCTOBER 28, 2015
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
r
MEETING DATE: 11/3/15
ITEM NO:
l
SUBJECT: ADOPT A RESOLUTION ESTABLISHING A $12.2M ALMOND GROVE STREET
REHABILITATION RESERVE
RECOMMENDATION:
Adopt a resolution establishing a $12.2 million Almond Grove Street Rehabilitation Reserve.
BACKGROUND:
On October 20, 2015, the Town Council directed staff to establish a new reserve of $12.2 million for the
Almond Grove Street Rehabilitation project. Adoption of the proposed resolution (Attachment 1)
memorializes this action by Council. Estimated funding sources that will be used to establish the
reserve have been identified below:
PREPARED BY:
Director
Reviewed
N:Finance /Stephen/Rese e Amendment.doc
Y
Town Manager k lyTown Attorney
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ESTABLISHMENT OF AN ALMOND GROVE STREET REHABILITATION
RESEREVE
OCTOBER 28, 2015
ALMOND GROVE REHABILITATION RESERVE FUNDING SOURCES
Cash On Hand
Beginning
Balance
Fund
Amount to
Fund Reserve
Ending Fund
Balance
Existing Project Budget
$3,696,000
$3,696,000
$0
Excess ERAF
$330,000 $330,000
$0
Reserves
GF Reserve for Capital
$940,000
$940,000
$0
FY 2014/15 Year -End Excess
$2,000,000
$2,000,000
$0
GF Reserve (Excess Above 25 %)
$10,800,000
$2,020,178
$8,779,822
GFAR Fund Balance
$438,792
$438,792
$0
Post Retirement Medical
$400,000
$400,000
$0
Reserve for Productivity & Special
Studies
$590,000
$253,000
$337,000
Compensated Absences
$2,281,656
$589,316
$1,692,340
Open Space Reserve
$562,000
$562,000
Vasona Land Sale
$411,245
$411,245
Sustainability Initiatives
$140,553
$140,553
Internal Service Funds
Equipment Replacement
$3,488,687
$1,488,687
$2,000,000
ABAG Self Insurance
$974,063
$974,063
Worker's Comp Self Insurance
$666,785
$666,785
Management Information System
$2,488,868
$2,488,868
Office Stores
$90,768
$90,768
Vehicle Maintenance
$331,190
$331,190
Facilities Maintenance
$178,765
$178,765
Total
$30,809,372 $12,155,973 $18,653,399
DISCUSSION:
As per Council direction on October 20, 2015 staff has drafted a proposed resolution establishing a
$12.2 million reserve fund to be dedicated to the Almond Grove Street Rehabilitation capital project
(Attachment 1). Establishment of this reserve designates that funds in the reserve are only available for
the rehabilitation of streets in the Almond Grove District. Use of funds in this reserve for any purpose
other than the Almond Grove Street Rehabilitation project would only be permissible under Council
authority.
Adoption of the proposed resolution will provide staff with the authority to establish an Almond Grove
Street Rehabilitation designated reserve.
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: ESTABLISHMENT OF AN ALMOND GROVE STREET REHABILITATION
RESEREVE
OCTOBER 28, 2015
CONCLUSION/NEXT STEPS:
Upon approval by Town Council, the Town will have a designated Reserve for Almond Grove Street
Rehabilitation project in the amount of approximately $12.2 million.
Upon adoption of the proposed resolution establishing the Almond Grove Street Rehabilitation Reserve,
staff will reallocate funds and provide updated fund balance reserve amounts to the Council during the
mid -year budget update.
ALTERNATIVES:
1. Council could choose not to move the funding sources into a designated reserve. Project funds
are not required to be set up in a reserve for the project funding; however, designating them in a
specific reserve would require Council action to use the funds for other purposes.
COORDINATION:
This staff report has been coordinated with the Town Manager's Office and Department of Parks and
Public Works.
FISCAL IMPACT:
Establishing an Almond Grove Street Rehabilitation Reserve designates the use of funds to the Almond
Grove project. Designation of funds to this reserve will have future budget implications for the Town in
both the General Fund Operating Budget and Capital Improvement Program budget. Specifically, funds
that would have otherwise been available for programing into the FY 2016/17 - 2020/21 Capital Budget
are being predesignated to the Almond Grove Reserve. This will reduce the availability of funds to
address other Town wide infrastructure and Capital needs. In addition, designation of funds within the
Equipment Replacement Fund and Compensated Absences Fund will impact future General Fund
Operating Budgets.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Resolution establishing the Reserve for Almond Grove Street Rehabilitation
Distribution:
THIS PAGE
INTENTIONALLY
LEFT BLANK
RESOLUTION 2015 -XXX
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
ESTABLISHING A RESREVE OF $12.2 MILLION FOR THE ALMOND GROVE
STREET REHABILIATION PROJECT
WHEREAS, the Town Council has identified funding sources for the Almond Grove
Street Rehabilitation; and
WHEREAS, funds totaling approximately $12.2 million have been identified in the
Almond Grove Funding Plan and Funding Schedule; and
WHEREAS, the Town Council wishes to establish a designated reserve for the Almond
Grove Street Rehabilitation project.
NOW, THEREFORE, BE IT RESOLVED, that the Town Council hereby authorizes
establishment of a designated Reserve for the Almond Grove Street Rehabilitation Project in the
initial amount of approximately $12.2 million.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the third day of November, 2015 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
m
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTACHMENT 1