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AGENDA ITEM REVIEW FORM |
5.C.
Regular City Council Meeting
- Meeting Date:
- 02/23/2022
- Department Head:
- Eulogio Vera
- Submitted By:
- Liliana Evangelista, Administrative Coordinator, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding a budget transfer for the Water Division to fund emergent cost increases associated with day-to-day operations and maintenance and repair activities. (Eulogio Vera, Director of Public Works)
SUMMARY:
The Water Division is in immediate need of a budget transfer to address insufficient funding in two accounts: 300-302-60035, Minor Tools/Equipment Supplies, and 300-302-70025, Maintenance/Other, to ensure continuity of operations and maintenance and repair activities through June 30, 2022.
The Division’s Minor Tools/Equipment Supplies account (that is already “over-executed” by nearly $11,000) requires $75,000 in additional funding. The additional funding is required to support both a large number of additional new water meters and MXUs that are needed to support residential and commercial growth city-wide and the anticipated escalating costs of the new equipment.
Regarding the Maintenance/Other account, although funding is currently available in this account, an additional $151,000 is required to support unexpected additional costs (both those that have already been incurred and those that must be incurred during the remainder of the fiscal year) associated with water system operation and maintenance and repair activities. $40,000 of the $151,000 is required for the repair of well #10, purchase of MTU parts for all well sites, maintenance of emergency generators, and additional lab testing. The remaining $111,000 of the $151,000 in additional requirements for this account (that must also be executed this fiscal year) includes $36,000 for the upgrade of manganese treatment unit programmable logical controllers (PLCs) at well sites #4 and #6, $25,000 for installation of a pressure reducing valve, and $50,000 for lowering water main on 4th Avenue (in support of a roadway reconfiguration. It should be noted that actual funding for the Water Division’s Maintenance/Other Account was nearly $16,000 higher in the fiscal year 2021 ($328,962.47 in the fiscal year 2021, versus $303,000 in the fiscal year 2022).
To address the budget shortfalls in these two Water Division Accounts, the Public Works Department is requesting Council approval of the budget transfer from Capital Outlay-Improvements Program (CIP) account 300-302-90015 totaling $226,000. $2,012,500 is currently available in the Water CIP account. It will not be possible to fully execute that account during the current fiscal year due to unexpected delays in planning/executing some of the CIP requirements (such as water tank rehabilitation. In prior fiscal years, Departments had the prerogative of seeking Finance Department approval for budget transfers out of CIP accounts. However, beginning in the current fiscal year, Council Approval is now required for such transfers.
The Division’s Minor Tools/Equipment Supplies account (that is already “over-executed” by nearly $11,000) requires $75,000 in additional funding. The additional funding is required to support both a large number of additional new water meters and MXUs that are needed to support residential and commercial growth city-wide and the anticipated escalating costs of the new equipment.
Regarding the Maintenance/Other account, although funding is currently available in this account, an additional $151,000 is required to support unexpected additional costs (both those that have already been incurred and those that must be incurred during the remainder of the fiscal year) associated with water system operation and maintenance and repair activities. $40,000 of the $151,000 is required for the repair of well #10, purchase of MTU parts for all well sites, maintenance of emergency generators, and additional lab testing. The remaining $111,000 of the $151,000 in additional requirements for this account (that must also be executed this fiscal year) includes $36,000 for the upgrade of manganese treatment unit programmable logical controllers (PLCs) at well sites #4 and #6, $25,000 for installation of a pressure reducing valve, and $50,000 for lowering water main on 4th Avenue (in support of a roadway reconfiguration. It should be noted that actual funding for the Water Division’s Maintenance/Other Account was nearly $16,000 higher in the fiscal year 2021 ($328,962.47 in the fiscal year 2021, versus $303,000 in the fiscal year 2022).
To address the budget shortfalls in these two Water Division Accounts, the Public Works Department is requesting Council approval of the budget transfer from Capital Outlay-Improvements Program (CIP) account 300-302-90015 totaling $226,000. $2,012,500 is currently available in the Water CIP account. It will not be possible to fully execute that account during the current fiscal year due to unexpected delays in planning/executing some of the CIP requirements (such as water tank rehabilitation. In prior fiscal years, Departments had the prerogative of seeking Finance Department approval for budget transfers out of CIP accounts. However, beginning in the current fiscal year, Council Approval is now required for such transfers.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE A BUDGET TRANSFER OF $226,000.00 FROM THE WATER CAPITAL OUTLAY-IMPROVEMENT ACCOUNT TO THE WATER MINOR TOOLS/EQUIPMENT SUPPLY ACCOUNT ($75,000.00) AND THE WATER MAINTENANCE OTHER ACCOUNT ($151,000.00) FOR THE REASONS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY
- TOTAL:
- $75,000.00 and $151,000.00
- BUDGETED AMOUNT:
- $226,000.00 and $303,000.00
- AVAILABLE AMOUNT TO TRANSFER:
- $75,000.00 and $40,000.00
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- 300-302-60035 and 300-302-70025
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The Water Division is in immediate need of a budget transfer to address insufficient funding in two accounts: 300-302-60035, Minor Tools/Equipment Supplies, and 300-302-70025, Maintenance/Other, to ensure continuity of operations and maintenance and repair activities through June 30, 2022.
The Public Works Department requests Council approval of a budget transfer of $226,000.00 from the 300-302-90015 Water Capital Outlay-Improvement account to the 300-302-60035 Water Minor Tools/Equipment Supplies account ($75,000.00) and the 300-302-70025 Water Maintenance/Other account ($151,000.00).
$2,012,500 is currently available in the Water CIP account, and it will not be possible to fully execute that account during the current fiscal year, due to unexpected delays in planning/executing some of the CIP requirements (such as water tank rehabilitation. In prior fiscal years, Departments had the prerogative of seeking Finance Department approval for budget transfers out of CIP accounts. However, beginning in the current fiscal year, Council Approval is now required for such transfers.
The Public Works Department requests Council approval of a budget transfer of $226,000.00 from the 300-302-90015 Water Capital Outlay-Improvement account to the 300-302-60035 Water Minor Tools/Equipment Supplies account ($75,000.00) and the 300-302-70025 Water Maintenance/Other account ($151,000.00).
$2,012,500 is currently available in the Water CIP account, and it will not be possible to fully execute that account during the current fiscal year, due to unexpected delays in planning/executing some of the CIP requirements (such as water tank rehabilitation. In prior fiscal years, Departments had the prerogative of seeking Finance Department approval for budget transfers out of CIP accounts. However, beginning in the current fiscal year, Council Approval is now required for such transfers.