HomeMy WebLinkAboutAGENDA REPORT 2017 1101 CCSA REG ITEM 10D ITEM 10.D.
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AGENDA REPORT 51r- lCTION:Li_l' 6 i7
TO: The Honorable City Council 1 AD/r7- 36 3 •
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FROM: Jessica Sandifer, Program Manag /'
DATE: October 18, 2017 (CC Meeting of 11/01/17)
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SUBJECT: Consider Resolution Amending the Fiscal Year 2017/18 Budget to
Fund Financial Advisory Services Related to Purchase of Streetlights
from Southern California Edison
BACKGROUND & DISCUSSION
In July 2017, the City Council authorized the City Manager to sign the Purchase and
Sale Agreements with Southern California Edison (SCE) for acquisition of the streetlight
system in the City of Moorpark, subject to the final language approval of the City
Manager. The Agreements are still being reviewed by SCE and have not been executed
yet. While we are awaiting conclusion of SCE's review process, staff has engaged the
firm of PFM Financial Advisors, LLC (PFM) to provide comprehensive analysis of the
cash flow associated with the electrical rate change that occurs upon ownership, and
any subsequent benefits associated with reduced consumption upon the transition to
LED technology, as well as providing the City different financing options for the
purchase. Once PFM has completed their analysis, assuming the analysis indicates
sufficient savings to continue with the purchase, staff will return to the City Council with
purchase and financing options for the acquisition.
FISCAL IMPACT
The total contract cost for PFM is $45,000 and is a not-to-exceed fee based on time and
materials. The initial analysis will not require the use of all the contract funds, however,
if the City Council should decide to move forward with a financing plan, then the entire
contract amount would be utilized for that scenario. Staff has also incurred some legal
fees for review of the agreements. Funds for financial advisory and legal services were
not budgeted in the FY 2017/18 budget. Staff is requesting a budget amendment of
$50,000 from the General Fund Reserve (1000) to fund these services.
STAFF RECOMMENDATION (ROLL CALL VOTE)
Adopt Resolution No. 2017- amending the FY 2017/18 budget to fund financial
advisory and legal services for the streetlight acquisition.
Attachment— Resolution No. 2017-
223
RESOLUTION NO. 2017-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR
2017/18 BUDGET TO APPROPRIATE $50,000.00 FROM THE
GENERAL FUND (1000) FOR FINANCIAL ADVISORY AND
LEGAL SERVICES FOR THE ACQUISITION OF THE
STREETLIGHT SYSTEM IN THE CITY OF MOORPARK (C0050)
WHEREAS, on June 21, 2017, the City Council adopted the Operating and
Capital Improvement Projects Budget for Fiscal Year 2017/18; and
WHEREAS, a staff report has been presented to the City Council requesting an
aggregate expenditure budget increase of $50,000.00 for financial advisory and legal
services from the General Fund (1000) for acquisition of the streetlight system in the
City of Moorpark (C0050); and
WHEREAS, Exhibit "A", attached hereto and made a part hereof, describes said
budget amendment and the resultant impact to the budget line items.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. An expenditure budget increase of$50,000.00 for financial advisory
and legal services from the. General Fund (1000) as more particularly described in
Exhibit"A", attached hereto, is hereby approved.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original Resolutions.
PASSED AND ADOPTED this 1st day of November, 2017.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
Exhibit A— Budget Amendment
224
EXHIBIT A
BUDGET AMENDMENT FOR
GENERAL FUND (1000)
FOR LEGAL AND FINANCIAL ADVISORY SERVICES RELATED TO ACQUISITION OF
THE STREETLIGHT SYSTEM IN THE CITY OF MOORPARK
FY 2017/18
FUND BALANCE ALLOCATION:
Fund Title Fund-Account Number Amount
GENERAL FUND 1000-000-00000-33990 $ 50,000.00
Total $ 50,000.00
EXPENDITURE APPROPRIATION:
Account Number Current Budget Revision Amended Budget
1000-310-C0050-51040 $ - $ 5,000.00 $ 5,000.00
1000-310-00050-51000 $ - $ 45,000.00 $ 45,000.00
1000-310-00050-55200 $ - $ - $ -
$ - $ - $ -
$ - $ - $ -
Total $ - $ 50,000.00 $ 50,000.00
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Finance Approval:
225