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Home My WebLink About2001-009 Appropriation for Repairs to Keechelus Dam ORDINANCE NO. 2001- 09 • AN ORDINANCE amending the 2001 budget for the City of Yakima; and making an appropriation of $12,095 in the 474 -Water Operating Fund and $8,064 in the 475- Irrigation Operating Fund during 2001 to reimburse the Bureau of Reclamation for the City's share of repairs /modifications to Keechelus Dam. WHEREAS, the amount of $12,095 must be appropriated within the 474 -Water Operating Fund and $8,064 must be appropriated in the 475- Irrigation Operating Fund for expenditure during 2001 to reimburse the Bureau of Reclamation for the City's share of repairs /modifications to Keechelus Dam, and WHEREAS, at the time of the adoption of the 2001 budget it could not reasonably have been foreseen that the appropriation provided for by this ordinance would be required; and the City Council finds that an emergency exists of the type contemplated by RCW 35.33.091 and that it is in the best interests of the City to make the appropriation herein provided, now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. The amount of $20,159 is hereby appropriated from the Unappropriated Fund Balances in the various Funds to the various accounts and in the various amounts, as specified in Schedule 1 attached hereto and incorporated herein. Section 2. This ordinance is one making an appropriation and shall take effect immediately upon its passage, approval and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 6 day of March 2001. /� 'z� MARY PLACE, MAYOR ATTEST: CITY CLERK First Reading: 2 -20 -2001 Publication Date: 3 - - 2001 Effective Date: 3 - - 2001 cje 01/31/01 SCHEDULE! Fund 474 - Water Operating Fund Appropriations Professional Services 474 -4-474 -343- 0000 - 534.80 -410 $12,095 Fund 475 - Irrigation Operating Fund Appropriations Professional Services 475 -4-475 -342- 0000 - 531.20 -410 $8,064 Page 1 cje 01/31/2001 • United States Department of the Interipr BUREAU OF RECLAMATION , Pacific Northwest Region = ^' 6 2 nj 1150 North Curtis Road, Suite 100 �. IN REPLY Boise, Idaho 83706 -1234 ; , .._ , . REFER TO: PN -3324 DEC 2 0 2000 WTR -4.00 Ms. Mary Place Mayor City of Yakima 129 N 2nd Street Yakima WA 98901 Subject: Modifications to Keechelus Dam, Bureau of Reclamation Safety of Dams Program (SOD), and Repayment Requirements Dear Ms. Place: As you may know, the Bureau of Reclamation (Reclamation) is completing plans to make modifications to Keechelus Dam to correct structural deficiencies in the darn and foundation related to seepage and internal erosion. The construction is scheduled to start in late fall of 2001 and should be completed in 2003, with minor items being accomplished in 2004. The Reclamation Safety of Dams Act Amendments of 1984 (PL 98 -404) and Reclamation policy require that irrigation water users repay 15 percent of the total SOD repair cost. The 15- percent repayment obligation will be distributed among the spaceholders in the Yakima Project Storage Division, which includes the City of Yakima (City). The cost of the SOD repair is currently estimated at $32 million. Accordingly, the total reimbursable amount is estimated at $4.8 million (.15 x $32 million). This is subject, of course, to the actual final modification cost to be determined upon completion of the work. Based on your share of Yakima Project Storage Division storage space, or water allotment, and p 1 the estimated SOD repair cost, the City's share of the SOD modification cost, called the City's "Repayment Obligation," is estimated at $20,159. Rather than negotiating a separate repayment contract with each of the 22 Yakima Project Storage Division spaceholders, which would add to the SOD costs, Reclamation will use a letter agreement. This agreement will identify the terms of repayment. including the estimated repayment obligation, and must be signed and notarized by appropriate City officials prior to initiation of construction. FC^ C ;7!UNO L INFO ONLY DATE ' o _ o 2 We intend to bill for SOD modifications twice a year, as work progresses, utilizing the same schedule as for the existing operation and maintenance billings. The initial billing will be in December 2001. We anticipate seven billings, December 2001 through December 2004, with the bulk of the charges coming in the first three billings, i.e., December 2001, June 2002, and December 2002. A lump sum payment for the full amount is also permitted. However, as some Storage Division spaceholders have a relatively small amount of storage resulting in an equally relatively small SOD bill, Reclamation reserves the right to bill for the full amount at the initial billing. In summary, in the first part of 2001, you will receive, for signature, the letter agreement covering the repayment terms for the City's share of the SOD modification cost on Keechelus Dam. Once the signed agreements are received, construction can begin. After almost 85 years of service, the modifications to Keechelus Dam are a necessary investment to ensure public safety while continuing to provide reliable water service to the Yakima Valley. Reclamation believes the modifications offer good value to spaceholders, and we are committed to SOD implementation in an efficient and cost- effective manner. If you have any questions about the process or repayment terms, please call Al Reiners at (208) 378 -5344 or Ryan Patterson at (208) 534 -5340 in Boise or Tina Gorman in Yakima at (509) 575 -5848. Sincerely, 5 . `LJ G-� 44` J. William McDonald Regional Director BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No.;' c t- For Meeting of Feb. 20, 2001 ITEM TITLE: An ordinance Amending the 2001 Water and Irrigation Operating Fund Budgets. SUBMITTED BY: Water and Irrigation Division /Finance CONTACT PERSON/TELEPHONE: Dueane Calvin, Water /Irrigation Manager 576 -6480 SUMMARY EXPLANATION: The Bureau of Reclamation (BOR) letter to Mayor Place of December 20, 2000 sets forth the BOR plan for the mandated repairs /modifications to Keechelus Dam and the mandated costs associated with that planned program. The letter discusses the probable construction date, and the subsequent repayment obligation for the various storage system contractors — including the City of Yakima. Because of its untimely arrival these costs have not been given consideration in the 2001 Budget or the 2000 Cost of Service and Rate Study. Fifteen (15) percent of the total cost of the repair work is to be shared on a pro -rata basis by all entities contracting with the BOR, the City's portion is presently estimated to be $20,159. The City contracted 6,000 acre -feet of stored water, split 60/40 percent between the City's domestic, and irrigation programs respectively. Consequently the payment obligation should be allocated on the same percentage basis. Domestic Water obligation @ 60% $ 12, 095.40 Irrigation Water obligation @ 40% 8,063.60 Total Estimated Obligation $ 20,159.00 The impact of these charges on the proposed 2000 Cost of Service and Rate Study would be an increase of 0.06 percent in the revenue required from rates for the domestic system, and approximately $0.0001 per sq ft would need to be added to the current irrigation system rate. The attached ordinance establishes the budget for these expenses to be paid from the unappropriated fund balances of the Water and Irrigation Operating Funds. Resolution Ordinance Other (Specify) Contract Mail to (name and address): Phone: Funding Source APPROVED FOR SUBMITTAL: �� - City Manager STAFF RECOMMENDATION: Read ordinance by title only at the February 20, 2001 Council meeting. Pass ordinance following second reading at the March 6, 2001 Council meeting. BOARD /COMMISSION RECOMMENDATION: COUNCIL ACTION: First reading of ordinance; second reading scheduled March 6, 2001 Ordinance passed. ORDINANCE NO. 2001 -09