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HomeMy WebLinkAbout93-04 RESOLUTIONBudget Year 2004 • City of Fayetteville, Arkansas Budget Adjustment Form Department: Water & Wastewater Division: Wastewater Treatment Program: Wastewater Treatment Plant Capital Date Requested 6/15/2004 Adjustment Number Project or Item Requested: $128,902 is requested in Plant Equipment Maintenance. Project or Item Deleted: None. Rebates in the amount of $128,902 were received from the 2003 OMI contract management. Justification of this Increase: Mally Wagnon, Old Wire Road, and Double Springs pump stations were severely damaged due to the recent flood. Justification of this Decrease: The project amount for 2004 was not sufficient to handle , these unexpected occurrences. Increase Budget (Decrease Revenue) Account Name Account Number Amount Project Number Plant equipment maint 5400 5800 5414 00 Account Name Use of fund balance Decrease Budget (Increase Revenue) Account Number 5400 0940 4999 99 128,902 02068 1 Amount Project Number 128,902 Approval Signatures Budget Office Use Only Requested By Budget Manager Department Director Type: A B C D E Date Date of Approval Date Date Posted to General Ledger Posted to Project Accounting Finance & IntemayS*vices Three r Date Initial Date Alfa/ /' / 7 Entered in Category Log Initial Date Initial Date Mayor Date Initial Date NAME OF FILE: CROSS REFERENCE: Item # Date • Resolution No. 93-04 w/budget adjustment Document • 1 05/28/04 memo to mayor & city council 2 draft resolution 3 06/03/04 Staff Review Form 4 06/21/04 memo to Greg Boettcher NOTES: E25 • � 7/5 /01 City Council Meeting of June 15, 2004 q 3 _ 0 47 6)F2rarans Momait-ntmi- "rni nethv�al CITY COUNCIL AGENDA MEMO To: From: Date: Subject: Mayor and City Coyncil Greg Boettcher Water/Wastewater Director May 28, 2004 Thru: Hugh Earnest Chief Administrative Officer Resolution Approving a Budget Adjustment to Transfer OMI's Reconciliation Funds to Lift Station Improvements Account RECOMMENDATION Fayetteville City Administration recommends approval of resolution transferring $128,902.00 (2003 OMI Rebate Amounts) to Lift Station Improvements Account (Plant Equipment Maintenance -5400.5800.5414.00, Project 02068) BACKGROUND The contract between Fayetteville and Operations Management International (OMI) provides for annual contract reconciliations, with OMI to refund actual cost savings to the City. In 2003, the reconciliation totalled $58,216.56. Also in 2003, an out -of -scope task to upgrade the Hamestring Lift Station was negotiated with OMI for $250,000.00. Reconciliation of the Hamestring project has resulted in a refund of $70,685.41. Accordingly, in 2004 the City of Fayetteville's water and sewer fund has received an unforseen income of $128,901.97 due to economies of OMI. DISCUSSION In early 2004, wastewater system operations, particularly the needs of the City's 35 wastewater pumping stations have experienced significant and unusual financial impacts. Heavy rains in late April flushed large amount of debris through the piping, damaging a large pump in the Old Wire Lift Station. Record flooding of White River inundated the Melly Wagnon Road Lift Station, necessitating extensive repairs. Age and wear have necessitated the replacement of both pumps in the Double Springs Lift Station. These specific events alone represent cost nearing $110,000.00, the essential work exceeding the 2004 Amended Budget for Upgrade/Replace Lift Stations of $76,472.00. This account is critical to the City's need to maintain adequate system reliability and capacity. The 2004 operating strategy was changed to allow accelerated pumping station improvements, targeting a goal of maintaining facilities at or near their design capacities. This objective requires greater investment in parts, supplies and equipment to improve the operating condition of the lift stations. The transfer of the OMI rebate funds to the lift station improvement account will allow OMI to sustain its efforts to improve lift station reliability and capacities, and provide needed monies to maintain these critical assets. BUDGET IMPACT The proposed transfer of the OMI reconciliation amounts from fund balance to Lift Station Improvements has no adverse impact on the water and sewer enterprise finances, as the rebate/refunds were not included in the 2004 financial planning. If portions of the flood expenses are recovered from emergency management assistance agencies, the reimbursement amounts may then flow to the water and sewer fund balance. • • RESOLUTION NO. A RESOLUTION APPROVING A BUDGET ADJUSTMENT •TRANSFERRING $128,902.00 OF OPERATIONS MANAGEMENT INTERNATIONAL (OMI) REBATES FROM WATER & SEWER FUND BALANCE TO THE LIFT STATION IMPROVEMENTS ACCOUNT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment transferring $128,902.00 of Operations Management International (OMI) rebates from Water & Sewer Fund Balance o the Lift Station Improvements Account. PASSED and APPROVED this 15th day of June 2004 rp; _"} ST APPROVE 1 ODY, Mayor By IVIITICity Clerk X AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW • STAFF REVIEW FORM For the Fayetteville City Council Meeting of: • June 15, 2004 FROM: Greg Boettcher Name Water & Wastewater Division Wastewater Treatment Plant Department ACTION REQUIRED: Resolution approving a Budget Adjustment to transfer ($128,902.00) OMI's reconciliation funds from Water and Sewer Fund Balance to Lift Station Improvements Account. COST TO CITY: $128,902.00 Cost of this request 5400-5800-5414-00 Account Number 02068 Project Number 76,472.00 Upgrade/Replace Lift Stations Program Category / Project Name 52,951.98 Wastewater Treatment Improvements Funds Used to Date Program / Project Category Name 23,520.02 Water & Sewer Remaining Balance Fund Name BUDGET REVIEW: Budgeted Item X Budget Adjustment Attached Budget Manager Date CONTRACT/GRANT/LEASE REVIEW: Accounting Manager J co/, /ay ct Internal A Date City Att6rney r Purchasing Manager 5/a8ky Date (13104 Date STAFF RECOMMENDATION: Division Head Departmgfit Director Finance & Internal Services Dir. Date Zes- Dr/ Date Date Cross Reference New Item: Yes Previous Ord/Res#: Orig. Contract Date Orig. Contract Number Rec'd in Mayor's Office No FAYETT&ILLE THE CITY OF FAYETTEVILLE, ARKANSAS City Clerk Division DEPARTMENTAL CORRESPONDENCE • 113 West Mountain Fayetteville, AR 72701 Telephone: (479) 575-8323 To: Gregg Boettcher Water/Wastewater Director From: Clarice Buffalohead-Pearman 0/ City Clerk Division Date: June 21, 2004 Re: Resolution No. 93-04 The City Council passed a resolution, June 15, 2004, approving a budget adjustment to transfer OMI rebates from the Water & Sewer Fund Balance to the Lift Station Improvements Account. I have attached a copy of the budget adjustment and resolution. The resolution with attachments will be recorded in the city clerk's office and microfilmed. If anything else is needed please let the clerk's office know. /cbp attachments cc. Nancy Smith, Internal Auditor Barbara Fell, Budget & Esear•cb, • RESOLUTION NO. 93-04 A RESOLUTION APPROVING A BUDGET ADJUSTMENT TRANSFERRING $128,902.00 OF OPERATIONS MANAGEMENT INTERNATIONAL (OMI) REBATES FROM WATER & SEWER FUND BALANCE TO THE LIFT STATION IMPROVEMENTS ACCOUNT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment transferring $128,902.00 of Operations Management International (OMI) rebates from Water & Sewer Fund Balance to the Lift Station Improvements Account. PASSED and APPROVED this 15th day of June 2004. ATTEST - By: SONDRA SMITH, City Clerk APPROVED. By: DAN COODY, Mayor ,.aa'nq �K1 .... .�`G�F SG`% &CC'GCCY °E.• • • •P? t.eo: •FAYETIEVILLE• VS,;,•12. ANSPOJ '