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HomeMy WebLinkAboutItem MAGENDA REPORT� 0/y Qv DATE: May 13, 2002 TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: Doug Dancs P.E. Director of Public Works /City Engineer SUBJECT: Budget Amendments k��Y SUMMARY OF REOUEST: Staff requests City Council approve the additional structural work for the CAL -Air mechanical retrofit and energy management project and approve additional financing with budget Amendment No. 02 -26. BACKGROUND: The Engineering Department is requesting a resolution authorizing revising the lease with option to purchase with Municipal Finance Corporation (the Corporation) for additional structural work for the Cal -Air mechanical retrofit and energy management project (the project). The amount of financing for the additional structural work is $30,783. Total financing for the Cal -Air project will be $1,091,955. Annual lease payment to Municipal Finance Corporation will increase $3,395 making the total annual payment $22,062. FISCAL IMPACT: The additional cost of this structural repair due to the installation of new Heating and Air Conditioning equipment will be pro -rated over a period of twelve years at a fixed annual cost of $3,395. The current undesignated fund balance is $3,380,026. The increase in expenditures will decrease the General fund undesignated fund balance to $3,376,631. Staff recommends Council approve a resolution to do the additional structural work for the installation of the new heating and air conditioning equipment. Staff also recommends Council adopt budget Amendment No. 02 -26 increasing annual lease payments. Agenda Item Prepared by: eor a R. Bernard Public Works Assistant Reviewed by: 04i YL Mark r. Vukovejic Assistant City Engineer Noted and Approved by: hn B. Baborski City Manager Rev' oug as A. s, P.E. Director Public Works/City Engineer