HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/18/2015 - SECOND READING OF ORDINANCE NO. 085, 2015, AUTHORIAgenda Item 3
Item # 3 Page 1
AGENDA ITEM SUMMARY August 18, 2015
City Council
STAFF
Jon Haukaas, Water Engr Field Operations Mgr
Phil Ladd, Utilities Customer Accounts Supervisor
Carol Webb, Water Resources/Treatmnt Opns Mgr
SUBJECT
Second Reading of Ordinance No. 085, 2015, Authorizing the Transfer of Previously Appropriated Funds in the
Wastewater Fund from the Collection System Replacement Project to the Water Reclamation Replacement
Project.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on July 21, 2015, transfers $350,000 in the
Wastewater Fund from the Collection System Replacement Project to the Water Reclamation Replacement
Project. This transfer would be used for unanticipated equipment replacement at the Drake Water
Reclamation Facility.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, July 21, 2015 (w/o attachments) (PDF)
2. Ordinance No. 085, 2015 (PDF)
Agenda Item 10
Item # 10 Page 1
AGENDA ITEM SUMMARY July 21, 2015
City Council
STAFF
Jon Haukaas, Water Engr Field Operations Mgr
Phil Ladd, Utilities Customer Accounts Supervisor
Carol Webb, Water Resources/Treatmnt Opns Mgr
SUBJECT
First Reading of Ordinance No. 085, 2015, Authorizing the Transfer of Previously Appropriated Funds in the
Wastewater Fund from the Collection System Replacement Project to the Water Reclamation Replacement
Project.
EXECUTIVE SUMMARY
The purpose of this item is to transfer $350,000 in the Wastewater Fund from the Collection System
Replacement Project to the Water Reclamation Replacement Project. This transfer would be used for
unanticipated equipment replacement at the Drake Water Reclamation Facility.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The original funding request for the Water Reclamation Replacement Project for equipment replacements at
the Drake Water Reclamation Facility has been found to be inadequate to cover all immediate needs. As
Utilities has instituted the use of trenchless technologies on more and more projects, “per project” costs have
been reduced, resulting in a surplus in the Collection System Replacement Project over what had been
expected to be needed for such replacements. The anticipated shortfall in the Water Reclamation
Replacement Project is approximately $350,000 and will be used for such items as Odor Control Fans and
miscellaneous pumps.
Utilities’ 2015 program under the Collection System Replacement Project has a mix of traditional excavation
replacement projects and trenchless projects totaling approximately $1.6M, which is less than the budgeted
$2.5M. The transfer of funds from the Collection System Replacement Project to the Water Reclamation
Replacement Project will not impact Utilities’ ability to deliver on the asset replacement plan.
All revenues of a specific utility must remain within the respective utility's fund and may be expended only for
improvements and services to be beneficial to the ratepayers of that utility. This transfer of funds between
projects within the Wastewater Fund ensures that the uses of these collected revenues remain compatible with
their original purpose.
Approval of the proposed ordinance will allow for the implementation of these projects and continuation of
Utilities’ asset replacement programs.
CITY FINANCIAL IMPACTS
The Collection System Replacement Project budget is at approximately $2.5M and current replacement plans
ATTACHMENT 1
Agenda Item 10
Item # 10 Page 2
only total $1.6M in 2015. The proposed transfer of $350,000 will not adversely affect the Collection System
Replacement Project. Sufficient funds exist to provide for both needs.
All revenues of a specific utility must remain within the respective utility's fund and may be expended only for
improvements and services to be beneficial to the ratepayers of that utility. This transfer of funds between
projects within the Wastewater Enterprise Fund ensures that the uses of these collected revenues remain
compatible with their original purpose.
Wastewater Enterprise funds will continue to be spent in alignment with the Wastewater Enterprise
requirements and projects approved through the BFO process.
BOARD / COMMISSION RECOMMENDATION
The specifics of this transfer proposal were discussed with the Water Board at its June 4 work session and
approved at the June 18, 2015 regular meeting.
ATTACHMENTS
1. Water Board minutes (draft), June 18, 2015 (PDF)
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ORDINANCE NO. 085, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE TRANSFER OF PREVIOUSLY APPROPRIATED FUNDS IN THE
WASTEWATER FUND FROM THE COLLECTION SYSTEM REPLACEMENT PROJECT
TO THE WATER RECLAMATION REPLACEMENT PROJECT
WHEREAS, the original funding request for the Water Reclamation Replacement Project
for equipment replacements at the Drake Water Reclamation Facility has been found to be
inadequate to cover all immediate needs, including unanticipated equipment replacement; and
WHEREAS, as Utilities has instituted the use of trenchless technologies on more and
more collection system replacement projects, “per project” costs have been reduced resulting in a
surplus in the Collection System Replacement Project over what had expected to need for such
replacements; and
WHEREAS, this Ordinance transfers $350,000 in the Wastewater Fund from the
Collection System Replacement Project to the Water Reclamation Replacement Project; and
WHEREAS, the specifics of this transfer were discussed with the Water Board at its
June 4, 2015, work session and the Water Board voted to recommend Council approval at the
June 18, 2015 regular meeting; and
WHEREAS, this Ordinance does not appropriate any new funding; and
WHEREAS, these funds will continue to be used for capital improvements to the City’s
wastewater system, consistent with the purpose of the original appropriation; and
WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to
transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof
from one fund (project) to another fund (project), provided that the purpose for which the
transferred funds are to be expended remains unchanged.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that the unexpended and unencumbered appropriated amount of THREE
HUNDRED AND FIFTY THOUSAND DOLLARS ($350,000) is hereby authorized for transfer
in the Wastewater Fund from the Collection System Replacement Project to the Water
Reclamation Replacement Project.
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Introduced, considered favorably on first reading, and ordered published this 21st day of
July, A.D. 2015, and to be presented for final passage on the 18th day of August, A.D. 2015.
__________________________________
Mayor
ATTEST:
_______________________________
Chief Deputy City Clerk
Passed and adopted on final reading on the 18th day of August, A.D. 2015.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk