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RPVCCA_SR_2010_04_06_04_EIR_Zone_2CITY OF RANCHO PALOS VERDES MEMORANDUM &CITY COUNCIL MEMBERS WIVI.lYIUNITY DEVELOPMENT DATE: SUBJECT: HONORABLE MAYO JOEL ROJAS, DIRECTOR APRIL 6,2010 'APPROVAL OF A BUDGET ADJUSTMENT FOR THE PREPARATION OF AN ENVIRONMENTAL IMPACT REPORT (EIR)FOR THE ZONE 2 LANDSLIDE MORATORIUM ORDINANCE REVISION (PLANNING CASE NO.ZON2009-00409) REVIEWED:CAROLYN LEHR,CITY MANAGER ~ Project Manager:Kit Fox,AICP,Associate Planner@J RECOMMENDATION TO: FROM: Adopt Resolution No.2010-_,a resolution of the City Council of the City of Rancho Palos Verdes,amending Resolution No.2009-40,the Budget Appropriation for FY 2009-10,to pay for the cost of the EIR preparation from the City's General Fund. EXECUTIVE SUMMARY On March 16,2010,the City Council rejected Staff's recommendation to enter into a contract with PCR Services Corporation (PCR)for the preparation of the Zone 2 Landslide Moratorium Ordinance Revision Environmental Impact Report (EIR),and directed Staff to enter instead into a contract with Rincon Consultants,Inc.(Rincon)to prepare this EIR. Since Rincon's proposed budget was $47,209 less than PCR's,it was necessary to revise the draft resolution to adjust the City's FY 2009-1 0 budget to cover the costs of preparing this EIR.Therefore,a revised resolution has been prepared for the City Council's adoption. DISCUSSION The attached draft resolution has been revised to reflect the $139,826 project budget proposed by Rincon.This cost will be borne by the City's General Fund. 4-1 MEMORANDUM:Zone 2 EIR Budget Adjustment April 6,2010 Page 2 As mentioned at the March 16,2010,City Council meeting,Staff was not familiar with Rincon's proposed geotechnical subconsultant,LGC Valley,Inc.Consequently,Staff consulted the City's geotechnical consultant and contacted several of LGC Valley's references.Staff found that LGC Valley has recent and relevant experience dealing with development in active and ancient landslide conditions elsewhere in Los Angeles and Ventura counties.As such,Staff is satisfied that the geotechnical review component of Rincon's proposal will be competently addressed. CONCLUSION In conclusion,Staff recommends that the City Council adopt Resolution No.2010-_,a resolution of the City Council of the City of Rancho Palos Verdes,amending Resolution No.2009-40,the Budget Appropriation for FY 2009-10,to pay for the cost of the EIR preparation from the City's General Fund. FISCAL IMPACT The recommended action will result in a City expenditure of $139,826.Since this expenditure is not budgeted in the City's current FY09-10 budget,a budget adjustment is necessary.The proposed budget adjustment would allocate $139,826 from the City's General Fund to the Planning ProfessionallTechnical Services program within the Community Development Department's budget.Project funding is summarized in Table 1. Table 1:Project Expenditures $2,000 N/A N/A General Fund $139,826 $3,183,314 The FY09-10 Statement of Estimated General Fund Reserves is attached. 4-2 MEMORANDUM:Zone 2 EIR Budget Adjustment April 6,2010 Page 3 Attachments: •Draft Resolution No.2010- •FY09-10 Statement of Estimated General Fund Reserves M:\Projects\zON2009-00409 (Zone 2 Moratorium Revisions)\20100406_StaffRpt_CC.doc 4-3 RESOLUTION NO.2010-_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES,AMENDING RESOLUTION NO.2009-40,THE BUDGET APPROPRIA- TION FOR FISCAL YEAR 2009-10,FOR A BUDGET ADJUSTMENT TO THE CITY'S GENERAL FUND. WHEREAS,Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council;and WHEREAS,on June 30,2009,the City Council of the City of Rancho Palos Verdes adopted Resolution 2009-40,approving a spending plan and authorizing a budget appropriation for the 2009- 2010 fiscal year;and WHEREAS,it is necessary for the City to retain the services of a consultant,Rincon Consultants,Inc.(Rincon),for the preparation of an Environmental Impact Report (EIR)associated with proposed revisions to the City's Landslide Moratorium Ordinance (Planning Case No.ZON2009-00409)to assess the individual and cumulative environmental effects of permitting the future development of up to forty-seven (47)new,single-family residences on vacant lots in Zone 2 of the Landslide Moratorium Area;and, WHEREAS,a budget increase in the Planning Program of the General Fund is necessary to pay for the costs of Rincon's services. NOW BE IT,THEREFORE,RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES: The following adjustment(s)be made to the following fund(s): GENERAL FUND: Planning -ProfessionallTechnical Services 101-4001-441-32-00 $139,826 PASSED,APPROVED,AND ADOPTED THIS 6th DAY OF APRIL 2010. Mayor ATTEST: City Clerk State of California ) County of Los Angeles )ss City of Rancho Palos Verdes ) I,CARLA MORREALE,City Clerk of the City of Rancho Palos Verdes,hereby certify that the above Resolution No.2010-_was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on April 6,2010. City Clerk M:\Projects\ZON2009-00409 (Zone 2 Moratorium Revisions)\20100406_Reso_CC.doc 4-4 FY09-10 Statement of Estimated General Fund Reserves Attachment A Ending Reserves Adjustments: Evaluate Citywide Sewer Fee 11/17/2009 (55,000) Retirement Health Savings Retroactive Contribution 11/17/2009 (94,125) Lower Hesse Park and Grandview Park Conceptual Design 11/17/2009 (50,000) Geotechnical Review of Monks Plaintiffs' Landslide Moratorium Exception Applications 12/15/2009 (24,000) FY08-09 Results 1/19/2010 1,265,382 Terranea TOT 3/2/2010 1,800,000 Midyear Adjustments -Other 3/2/2010 (205,499)329,400 (91,000) Column Heading Definitions Action Date is the date City Council adopted the budget or approved an adjustment to the budget. Beginning Reserves are the budgeted 7/1/09 General fund reserves at the time of budget adoption. Revenues include the originally adopted revenue budget and subsequent adjustments.When staff becomes aware that revenues are expected to significantly deviate from the adopted budget,an adjustment is presented to the City Council for approval. Expenditures include the originally adopted expenditure budget and subsequent adjustments.When staff becomes aware that expenditures of a program are expected to significantly deviate from the adopted budget,an adjustment is presented to the City Council for approval. Net Transfers include both operating transfers from and to the General fund.Originally budgeted Net Transfers are adjusted when staff becomes aware that an additional operating transfer is needed to satisfy an unanticipated shortfall within another fund;and that shortfall must be funded with General fund monies. Ending Reserves are the estimated 6/30/10 General fund reserves at the time of budget adoption.Adjusted Ending Reserves is a calculation based on subse uent ad'ustments to Be innin Reserves,Revenues,Ex enditures and Net Transfers. 4-5