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HomeMy WebLinkAbout213-22 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 213-22 File Number: 2022-0816 WATER LEAK AND SEWER OVERFLOW DAMAGE CLAIMS: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $100,000.00 TO APPROPRIATE ADDITIONAL FUNDS FOR WATER LEAK AND SEWER OVERFLOW DAMAGE CLAIMS THAT MAY OCCUR IN 2022 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 in the amount of $100,000.00 to appropriate additional funds for water leak and sewer overflow damage claims that may occur in 2022. PASSED and APPROVED on 9/20/2022 Lioneld J(trdarVMayor Attest: Kara Paxton, City Clerk Treasure t ���;ts�Nrrrr C': •G%I Y O,c SC''�•, FAYFTTEVlLLE; %Jw GTO 10111111101 Page 1 Printed on 9122122 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2022-0816 Agenda Date: 9/20/2022 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: A.6 WATER LEAK AND SEWER OVERFLOW DAMAGE CLAIMS: A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $100,000.00 TO APPROPRIATE ADDITIONAL FUNDS FOR WATER LEAK AND SEWER OVERFLOW DAMAGE CLAIMS THAT MAY OCCUR IN 2022 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 in the amount of $100,000.00 to appropriate additional funds for water leak and sewer overflow damage claims that may occur in 2022. City of Fayetteville, Arkansas Page 1 Printed on 912212022 City of Fayetteville Staff Review Form 2022-0816 Legistar File ID 9/20/2022 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda item Tim Nyander 9/1/2022 WATER SEWER (720) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of a budget adjustment in the amount of $100,000.00 to cover water leak and sewer overflow damage claims that may occur in 2022. Budget Impact: 5400.720.4310-5311.04 and 5400.720.4410- 5311.04 Account Number N/A Project Number Budgeted Item? Yes Does item have a cost? No Budget Adjustment Attached? Yes Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Water and Sewer Fund N/A Project Title $ 302,435.00 $ 300,097.61 2,337.39 I $ 100,000.00 102,337.39 V20210527 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS MEETING OF SEPTEMBER 20, 2022 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff FROM: Tim Nyander, Utilities Director DATE: September 2, 2022 CITY COUNCIL MEMO SUBJECT: Budget Adjustment for Damage Claims Water Line Breaks & Sewer Overflows RECOMMENDATION: Staff requests a Budget Adjustment in the amount of $100,000 to cover Water Leak and Sewer overflow claims that may need to be paid in 2022. BACKGROUND AND DISCUSSION: There were some major claims in 2021 that will not be settled until this year, because the process for requesting reimbursement of large claims is time consuming for both the residents and city staff. Many contractors already have commitments to larger projects so are unable to bid on the home repairs after water or sewer damage occurs. The current materials market also means long lead times on the materials needed for repair. The dollar amount that is anticipated to be considered for reimbursement by the City Council requires a budget adjustment to cover additional claims that may occur in 2022. BUDGET/STAFF IMPACT: Funds are available in the Water System Rehabilitation and Sewer System Rehabilitation accounts to transfer into the Self -Insurance, Non -Vehicle Damage accounts within the Water and Sewer fund. Attachments: Budget Adjustment Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number /Org2 WATER SEWER (720) 2022 Requestor: Cheryl Partain BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: A budget adjustment is needed in the Insurance Self-Non-Veicle Damage operational accounts for both water and sewer to cover the cost of water and sewer claims made by customers. There are major water and sewer claims from 2021 that will finally be settled this year. Budgeted funds to cover the claims cost will be transferred from the Water System Rehabilitation project and the Sewer System Rehabilitation project. RESOLUTION/ORDINANCE COUNCIL DATE: 9/20/2022 LEGISTAR FILE ID#: 2022-0816 Kevi YvSprr 9/2/2022 11:03 AM Budget Director Date TYPE: D - (City Council) JOURNAL #: GLDATE: CHKD/POSTED: TOTAL Account Number - - Increase / (Decrease) Expense Revenue Proiect.Sub# Project Sub.Detl AT v.20220818 Account Name 5400.720.4310-5311.04 70,000 - EX Insurance - Self (Non -Vehicle Damage) 5400.720.5600-5808.00 5400.720.4410-5311.04 (70,000) - 30,000 - 12009 1 EX EX Improvements - Water Line Insurance - Self (Non -Vehicle Damage) 5400.720.5700-5815.00 (30,000) - 02017 1 EX Improvements - Sewer H:\Budget Adjustments\2022_Budget\CITY COUNCIL\09-20-22\2022-0816 BA Water Sewer Damage Claims.xlsm 1 of 1