CITY COUNCIL: Resolution Approving Transfer from Reserve to General Fund for Trolley Service

Meeting Date: November 3, 2009
Prepared by: Joyce Giuffre, Admin Services Director

City Council
Agenda Item Summary

Name: Consideration of a Resolution approving a transfer of $32,000 from the General Operating Reserve to the General Fund for trolley service expenditures in fiscal year 2009/10 until grant funds are received.

Description: On October 6, 2009, the City Council approved Resolution 2009-70, approving the AB2766 grant application to the Monterey Bay Unified Air Pollution Control District (MBUAPCD) for trolley service. Carmel-by-the-Sea’s application requested $132,194 in grant funding. On September 16, 2009, MBUAPCD awarded the City a grant of $85,000.

The grant agreement with MBUAPCD stipulates that grant reimbursements will be processed after expenditures are made. There is no funding in the current fiscal year budget to cover expenditures for scheduled trolley service dates from December 2009 through June 2010. The $12,600 that was included in the FY 2009/10 budget only covered weekend amounts between July 4th and Labor Day 2009.

For the remainder of the 2009/10 fiscal year, daily trolley service is scheduled for two periods: a) December 26, 2009 through January 3, 2010 and b) May 31, 2010 through June 30, 2010. The estimated cost for these periods of service is $32,000. To cover trolley service expenditures until grant monies are received, staff recommends a transfer be made from the General Operating Reserve to the General Fund. Once the grant monies are received, a transfer of $32,000 will be made back to the General Operating Reserve.

Overall Cost: City Funds: $32,000 from the General Operating Reserve

Staff Recommendation: Approve the transfer of $32,000 from the General Operating Reserve to the General Fund to cover trolley service expenditures for the remainder of the current fiscal year. The transfer can be considered a temporary transfer as the money will be transferred back to the General Operating Reserve once grant funds are received. The General Operating Reserve balance is currently $2,296,841.

Important Considerations: Upfront trolley service expenditures for fiscal year 2010/11 will be addressed during the next Triennial Budget process.

Decision Record: Resolution 2009-70, dated October 6, 2009 approving the AB2766 grant application to MBUAPCD.

Reviewed by:

______________________________ _________________
Rich Guillen, City Administrator Date

CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION 2009-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA APPROVING A TRANSFER OF $32,000 FROM THE GENERAL OPERATING RESERVE TO THE GENERAL FUND FOR TROLLEY SERVICE EXPENDITURES IN FISCAL YEAR 2009/10 UNTIL
GRANT FUNDS ARE RECEIVED
__________________________________________________________________
WHEREAS, on October 6, 2009, the City Council approved Resolution 2009-70
approving the AB2766 grant application to the Monterey Bay Unified Air Pollution Control District (MBUAPCD) for Carmel-by-the-Sea trolley service; and

WHEREAS, the Monterey Bay Unified Air Pollution Control District (MBUAPCD)
awarded Carmel-by-the-Sea an AB2766 grant of $85,000 for the trolley service; and

WHEREAS, MBUAPCD will reimburse grant-eligible expenditures incurred by the
City after the expenditures have been made; and

WHEREAS, trolley service General Fund expenditures for scheduled dates between December 2009 and June 2010 are estimated at $32,000; and

WHEREAS, $32,000 can be transferred from the City’s General Operating Reserve to the General Fund to cover the trolley service expenditures in December 2009 through June 2010 until grant proceeds are received.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:

1. Approve a transfer of $32,000 from the General Operating Reserve to the General Fund for trolley service expenditures in fiscal year 2009/10 until grant funds are received.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 3rd day of November 2009, by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED,

___________________________
SUE McCLOUD, MAYOR

ATTEST:

________________________________
Heidi Burch, City Clerk