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Home My WebLink About78-02 RESOLUTION• RESOLUTION NO. 78-02 A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF ONE MILLION FIVE HUNDRED THOUSAND DOLLARS FROM A REIMBURSEMENT OF BOND PROCEEDS FROM THE WASTEWATER IMPROVEMENT PROJECT TO BE TRANSFERRED TO THE WATER AND SEWER FUND WHEREAS, the City Council Water and Sewer recommends that a budget adjustment from reimbursed funds from the bond proceeds of the Wastewater Improvement Project be transferred to the Water and Sewer Fund to be used for water main replacement. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves the budget adjustment attached as Exhibit "A" in the amount of $1,500,000.00 from a reimbursement of bond proceeds from the Wastewater System Improvement Project to the Water and Sewer Fund for water main replacement projects in the 2002 Capital Improvement Plan. PASSED and APPROVED this the 7th day of May, 2002 APPROVED: By: • 4 • • NAME OF FILE: CROSS REFERENCE: Resolution No. 78-02 • 05/07/02 Resolution No. 78-02 04/18/02 Copy of Budget Adjustment Form 04/18/02 Departmental Correspondence to Mayor Coody & Fayetteville City Council Members, from Greg Boettcher, Public Works Director, regarding Water and Sewer Division Accelerated Water Main Replacement 05/07/02 Staff Review Form 05/08/02 Memo to Greg Boettcher, Public Works Director, from Heather Woodruff, City Clerk NOTES: t i • Budget Year 2002 Department: Division: Program: City of Fayetteville, Arkansas Budget Adjustment Form Public Works Water & Sewer Maintenance Capital Water Mains s Date Requested 04/18/2002 Res. 78-02 Adjustment # Project or Item Requested: $1,500,000 is requested in Water & Sewer Fund to fund an accelerated water line replacement project. Project or Item Deleted: Funding proposed for this adjustment is from a reimbursement of bond proceeds for the WSIP. i Justification of this Increase: The item is requested to address the high failure line segments. Justification of this Decrease: Water & Sewer Fund has sufficient cash & investments to fund this request and comply with City policy. Increase Expen e (Decrease Revenue) Account Name Amount Waterline Improvements 1,500,000 Account Number Project Number 5400 5600 5808 00 02125 1 Decrease Expense (Increase Revenue) Account Name Amount Use of Fund Balance 1,500,000 Account Number 5400 0940 4999 99 Project Number Approval Signatures Reque ted B Date Bu get ?,anger Date Department Director Date Admin. Sery Mayor s Director Date Blue Copy: Budget & esearch / Yellow Copy: Requester Budget Office Use Only Type: A B Date of Approval C Posted to General Ledger Posted to Project Accounting Entered in Category Log E H.:IBUDGE7IPROJECTSIBUD ADJIBA_20021ACC WLR.WK4 • City of Fayetteville, Arkansas Budget Adjustment Form Res. 78-02 Budget Year Department: Public Works 2002 Division: Water & Sewer Maintenance Program: Capital Water Mains Date Requested 09/18/2002 Adjustment # Project or Item Requested: $1,500,000 is requested in Water & Sewer Fund to fund an accelerated water line replacement project. Project or item Deleted: Funding proposed for this adjustment is from a reimbursement of bond proceeds for the WSIP. Justification of this Increase: The item is requested to address the high failure line segments. Justification of this Decrease: Water & Sewer Fund has sufficient cash & investments to fund this request and comply with City policy. Increase Expense (Decrease Revenue) Account Name Amount Account Number Project Number Waterline Improvements 1,500,000 5400 5600 5808 00 02125 1 Decrease Expense (Increase Revenue) Account Name Amount Account Number Project Number Use of Fund Balance 1,500,000 5400 0940 4999 99 Approval Signatures Re�q�u,1e(/�J,cct�er/d`h, BuCget Manager ��// Date �4- Date Department Director Date Admin. Services Director Date Date Budget Office Use Only Type: A B C Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log E FAYETTEVILLE THE CITY OF FAYE! TVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: Mayor Dan Coody and Fayetteville City Council Members FROM: Greg Boettcher, P.E., Public Works Director DATE: April 18, 2002 SUBJECT: City Council Agenda Item — May 7, 2002 Budget Adjustment — Water and Sewer Division Accelerated Water Main Replacement BACKGROUND Fayetteville s water system includes more than 525 miles of pipelines that serve more than 75,000 people. Average daily water purchase volume is 13 million gallons, of which approximately 20% is unaccounted for. Target water loss rates are 12-15%, therefore, corrective actions are justified and may be expected to produce reductions in water loss. In fiscal year 2001, the Water and Sewer Division recorded 628 leaks, these events consuming a significant amount of labor, equipment and material expenses. Performance goals for the in-house water main replacement program is 8,000 feet of water line; equating to annual replacement rate of 0.3% of the system. In other terms, this level of performance requires a water main to have an average service life of 347 years. This infrastructure replacement rate is inadequate to properly maintain this asset, as evidenced by the level of pipeline failures and high loss ratios. The Water and Sewer Division maintains records of pipeline segments with high failure rates or other serious inadequacies, with more than 50 projects being currently identified under said process. The current in-house program is not staffed or equipped to keep pace with or make progress on this growing need. Such conditions are the basis for an accelerated water main replacement program to avoid continued degradation of this municipal asset and to reduce water loss volumes. c DISCUSSION • The decision to initiate this asset preservation program surfaced when supplemental Water and Sewer Enterprise Funds became available. The retained earnings of the Water and Sewer Division's operating fund have been used to cash flow the facility planning costs of the Wastewater System Improvement Project. A drawdown of bond issue proceeds, to reimburse this temporary borrowing, shall provide $1.5 million of fund replenishment that is not budgeted for a specific purpose. It is proposed that this water and sewer fund reimbursement be budgeted for accelerated Water Main replacement activities. The Water and Sewer committee discussed this budget adjustment at its April 11, 2002 meeting, finding the program to be acceptable and recommending presentation to the Fayetteville City Council for approval. It is proposed that the Water and Sewer Superintendent develop a list of water main segments that have the greatest cost -benefit ratio and are of such a construction nature as to be suited for construction by independent contractors (minimum service disruptions, uncongested construction routes, etc). A preliminary replacement plan for the targeted activities shall be developed by the Water and Sewer Division. Using this preliminary design, a consultant shall be selected to design, bid and provide award recommendations for the replacement project. The budget for these activities shall be set at $1.5 million. RECOMMENDATION It is recommended that the Fayetteville City Council approve a budget adjustment in the amount of $1.5 million for the implementation of an accelerated water main replacement program, funding to be secured from Water and Sewer Enterprise Fund's retained earnings. Also, the approval should stipulate that such a project be added to the Fiscal Year 2002 Capital Improvement Plan. 2 • STAFF REVIEW FORM • X AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of May 7, 2002 FROM: Greg Boettcher Name Public Works Water & Sewer Division Department ACTION REQUIRED: Approval to budget the $1.5 million of Water and Sewer Operating Funds, reimbursed from 'Bond .Proceeds, towards Accelerated Water Main Replacement Activities, including approval of a budget adjustment and an addition to the Fiscal Year 2002 Capital Improvements Program. COST TO CITY: $1,500,000.00 Cost of this Request Account Number Project Number Accelerated Water. Replacement Category/Project Budget Category/Project Name 2002 CIP Program Funds Used To Date Program Name Water and Sewer Remaining Balance Fund BUDGRE EW: B dget oordinator '' X Budgeted Item _ Budget Adjustment Attached Y`` -+y8,2)— Administrative Services Director CONTRACT/GRANT/LEASE REVIEW: 1/1(1)02 GRANTING AGENCY: Accounting Manager-' Date ADA Coordinator Date °It eth9'0 TV2L4f( m r� 9A La19(oa, City Attdrneyate Internal A�xdjtor Date 41►e1da--- Purchasing Officer Date Grant Officer Date STAFF RECOMMENDATION: Divis'- Head Depa nt Di ec.• '/ / / Adm � Svcs Director Date Date CY-HP-10? Date «/y/v Date 179/0 Cross Reference New Item: Yea No Prev Ord/Res #: Orig Contract Date: • STAFF REVIEW FORM • Description Meeting Date Comments: Budget Coordinator Reference Comments: Page 2 Accounting Manager Reference Comments: City Attorney Reference Comments: Purchasing Officer Reference Comments: ADA Coordinator Reference Comments: Internal Auditor Reference Comments: Grants Offcier Reference Comments: FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE • To: Greg Boettcher, Public Works From. Heather Woodruff, City Clerk Date: May 8, 2002 Please find attached a copy of Resolution No. 78-02. The original will be microfilmed and filed with the City Clerk. Your Budget Adjustment Form has been forwarded to Budget and Research. cc: Nancy Smith, Internal Audit Stephen Davis, Budget & Research c M 0: • 010 03 Update Document Reference RES City of Fayetteville ndex Maintenance Ite Action Date Ref. Taken Brief Description 5072002 78-02 • REIMBURSEMENT OF BONDS PROCEEDS 5/23/2002 9:09:27 Enter Keywords • RES. 78-02 BUDGET ADJUSTMENT $1,000,500,00 REIMBURSEMENT BOND PROCEEDS WASTEWATER IMPROVEMENT PROJECT WATER AND SEWER FUND File Reference # • MICROFILM Security Class • Retention Type: _ Expiration Date • **** Active **** Date for Cont/Referred: Name Referred to • cmdl-Return cmd8-Retention Cmd5-Abstract Yes No Cmd4-Delete Cmd3-End Press 'ENTER' to Continue (c) 1986-1992 Munimetrix Systems Corp.