HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/17/2015 - FIRST READING OF ORDINANCE NO. 041, 2015, APPROPRIAgenda Item 4
Item # 4 Page 1
AGENDA ITEM SUMMARY March 17, 2015
City Council
STAFF
Ellen Switzer, Utilities Financial Operations Manager
Carol Webb, Regulation & Govt Affairs Manager
Jon Haukaas, Water Engr Field Operations Mgr
SUBJECT
First Reading of Ordinance No. 041, 2015, Appropriating Reserves in the Wastewater Fund for the
Replacement of Two Damaged Trucks.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate $272,794 in Reserves in the Wastewater Fund to replace two
damaged trucks. In 2014, $222,794 in unanticipated revenue was received from the Risk Management Fund
and from insurance proceeds to compensate the Wastewater Utility for two trucks that were totaled in separate
accidents. The $222,794 in unanticipated revenue contributed to increased Wastewater Reserves at year-end
2014 in this same amount. Due to the cost of replacing one of the trucks, an additional $50,000 is to be
appropriated from the Wastewater Utility Capital Outlay Reserve which is reserved for equipment purchases.
The Capital Outlay Reserve currently totals $657,300. The 2015 supplemental appropriation will be used to
replace both trucks.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Two trucks owned by the Wastewater Utility were involved in two separate accidents during the summer and
fall of 2014. In each accident, the truck was totally destroyed. One of the trucks was utilized by the
Wastewater Field Services Division and the other by the Water Reclamation and Biosolids Division. In
December 2014, the Wastewater Utility Fund received payments from both the Risk Management Fund
($195,000) and the insurer ($27,794) as compensation for the loss of the two vehicles. Both vehicles need to
be replaced in 2015 to maintain ongoing operations in the two divisions. In addition to the reimbursements
from Risk Management and the insurer, an additional $50,000 is required to replace one of the trucks and to
install the dump body and needed accessories.
CITY FINANCIAL IMPACTS
Wastewater Field Services has received reimbursement for $97,500 in reimbursements. The cost of the
replacement vehicles is approximately $150,000. In addition to the reimbursements an additional
appropriation of $50,000 is requested from the Wastewater Capital Outlay Reserve. The Capital Outlay
Reserve currently totals $657,300. Thee Water Reclamation and Biosolids Division received $125,294 in
reimbursements. The cost of the replacement truck is $128,406. The additional funding required will come
from the existing 2015 budget.
Agenda Item 4
Item # 4 Page 2
PUBLIC OUTREACH
This item was not related to policy and was not addressed by the Water Board.
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ORDINANCE NO. 041, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE WASTEWATER
FUND TO FUND THE REPLACEMENT OF TWO DAMAGED TRUCKS
WHEREAS, unanticipated revenue was received in 2014 from the Risk Management
Fund and from insurance proceeds of $222,794 to compensate the Wastewater Utility for two
damaged trucks that were totaled in separate accidents in 2014; and
WHEREAS, this unanticipated revenue contributed to increased Wastewater Reserves at
year end 2014 in this same amount; and
WHEREAS, Utilities is proposing to replace these vehicles for a total cost of $278,406 in
2015 to maintain ongoing operations; and
WHEREAS, Utilities is requesting $272,794 from the Wastewater Fund Reserves for
these purchases of which $222,794 is from unanticipated revenue from 2014 that rolled into
reserves and $50,000 is being requested to be appropriated from the Wastewater Capital Outlay
Reserve; and
WHEREAS, the remainder of the required funding of $5,612 will come from existing
2015 budgets; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council to
appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be
available from reserves accumulated in prior years, notwithstanding that such reserves were not
previously appropriated.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the
Wastewater Fund the sum of TWO HUNDRED SEVENTY-TWO THOUSAND SEVEN
HUNDRED AND NINETY -FOUR DOLLARS ($272,794) to be used for the purchase of two
vehicles to benefit the citizens of the City.
Introduced, considered favorably on first reading, and ordered published this 17th day of
March, A.D. 2015, and to be presented for final passage on the 21st day of April, A.D. 2015.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 21st day of April, A.D. 2015.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk