HomeMy WebLinkAbout10/04/2011 14 Budget Amendment and Appropriations for Miscellaneous Costs BUSINESS OF THE CITY COUNCIL
• YAKIMA, WASHINGTON
AGENDA STATEMENT r� ,
Item No.
For Meeting Of October 4, 2011
ITEM TITLE: An Ordinance Amending the 2011 Budget and making Appropriations in
various funds to provide for increased 911 telephone costs; Integrated
Public Safety System (IPSS); Lincoln Avenue railroad underpass project
costs; and to replace a damaged Refuse truck.
SUBMITTED BY: Finance Department
CONTACT PERSON/TELEPHONE: Cindy Epperson, Dep. Director of
Accounting & Budgeting /575 -6070
SUMMARY EXPLANATION:
During the development of the 2012 preliminary budget and the review of 2011 budget
trends and estimates, several instances of additional unbudgeted expenditures that
exceeded the total fund budget authority were noted. Some of these increases come with
additional revenues to support them and others would need to be paid from the affected
fund balance. None of the appropriations require the use of general fund or general
• fund reserves.
Following page provides a summary of the appropriation and is summarized by fund; the
bulleted line item identifies the net impact on the fund balance, if any. The sub - bullets
identify (a) the increased costs, followed by (b) additional . revenues, when applicable.
Where revenues are not identified, the fund reserves (or fund balances) are adequate to
cover the additional costs. (See attachment for official proposed appropriation.), (Continued
on next page.)
Resolution Ordinance X Other (Specify) Schedule I
Funding Source: Grants, Fees and Fund Balances in Various Funds
Approved for Submittal: `rl/?��;
City Manager
STAFF RECOMMENDATION: Read Ordinance by title only at the October 4, 2011 meeting.
Pass Ordinance after second reading at the October 18, 2011 meeting.
COUNCIL ACTION:
410
• 151 - Public Safety Communications Fund -- No net use of reserves
o Increased 911 telephone costs $165,000
o Revenue - lnterlocal Payment for Services --911 $165,000
At the end of 2010 the County Commissioners had the option to raise the local 911 excise tax
from the current rate of $.50 to $.70. By exercising this option the local 911 would have not only
generated additional revenue to cover local expenses, the then current state funding
mechanism would remain in place, covering network expenses in Yakima County. The County
• Commissioners elected not to implement the tax; therefore approx. $280,000 expenses were
shifted to the local 911 and to 2011 operating expenses. About $115,000 of the adopted 2011
budget could be redirected toward this expense, so that the budget increase is only $165,000.
• 125 - Community Relations Fund Total net use of reserves $95,000
o Local Match for IPSS Project $95,000
At the time the IPSS project was authorized limited funding sources had been secured;
however, as part of the Interlocal Agreement, the City of Yakima and Yakima county agreed to
jointly cover all costs that were not ultimately secured from other sources. While the project is
not yet complete, many major milestones have been met allowing updated projected funding
estimates to be made. And since these funds may be required prior to the end of 2011, an
appropriation of these funds is necessary at this time. Total project costs are est. at $2.2M; the
city's portion of the unfunded and non - appropriated balance of these costs is approx. $95,000.
The city planned to cover their portion of these costs from the Community Relations Fund
balance; which contemplates technology improvements in communications. Current fund
balance is slightly over $900,000 at the beginning of 2011, assisting with the IPSS project would
be an acceptable use of these reserves.
• 392 - Cumulative Reserve for Capital Imprvmt. Fund - No net use of
reserves
o Lincoln Ave. Railroad Underpass project $4,000,000
o Revenue - Federal Hiway Administration Grant $4,000,000
Council has been apprised of the cost overruns associated with the failure of the original
underground seal on the Lincoln Avenue railroad underpass project. After significant additional
research, the seal design was modified, and the new process resulted in a net change order of
approximately $4 million. Since funding was secured for both the Lincoln Ave and Martin Luther
King Blvd (MLK) underpasses, the Federal Hiway Administration Grant could be redirected from
MLK to Lincoln Ave. Additional funding will need to be secured to complete the MLK project.
• 551 - Equipment Rental and Replacement Fund - Total net $100,000
o Replace damaged Refuse Truck $230,000
o Revenue - Insurance Reimbursement - $130,000
Earlier this year, an engine fire destroyed one of the City's Refuse trucks. The City's property
insurance carrier set the replacement value at $230,000. Since the program includes a
deductible of $100,000, we received $130,000 from the insurance company. We anticipate that
the truck will cost about $280,000 to replace, however savings on the two Refuse trucks
purchased earlier in the year will make up the $50,000 difference in the 2011 budget. Refuse's
balance in the Equipment Rental replacement fund will be sufficient to cover the deductible by
the end of 2012. The insurance carrier is conducting an investigation, and any recovery from a
third party will come first to the City to be applied toward the deductible.
ORDINANCE NO.
•
AN ORDINANCE amending the 2011 budget for the City of Yakima; and making
appropriations from Unappropriated Fund Balances within various
Funds for expenditure, during 2011 to provide for increased 911
telephone costs; Integrated Public Safety System costs; Lincoln
Avenue Railroad Underpass project costs; and to replace a
damaged Refuse truck.
WHEREAS, the various funds indicated on the attached Schedule I contain
Unappropriated Fund Balances available for appropriation and expenditures during 2011 in
various amounts to provide for increased 911 telephone costs; Integrated Public Safety
System costs; Lincoln Avenue Railroad Underpass project costs; and to replace a damaged
Refuse truck, all as listed in the attached Schedule, and
WHEREAS, at the time of the adoption of the 2011 budget it could not reasonably
have been foreseen that the appropriation provided for by this ordinance would be required;
and the City Council declares 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. Appropriations are hereby made, for expenditure .during 2011, from
410 Unappropriated Fund Balances in the various Funds to the various accounts and in the
various amounts, and for the various specific purposes, all as specified in the Schedule
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 day
of , 2011.
MICAH CAWLEY, MAYOR
ATTEST:
CITY CLERK
First Reading:
Publication Date:
Effective Date:
Cepperson 9/29/2011
City of Yakima
2011 Appropriation Schedule
SCHEDULE 1
Appropriate out of unappropriated fund balances of the various funds and in the various
amounts and for the purposes as described:
ACCOUNT AMOUNT FUND TOT. DESCRIPTION
PUBLIC SAFETY COMMUNICATIONS
151.151.120.0000.52870.421 $165,000 911 Telephone Costs
Total Expenditures $165,000
Public Safety Communications - Revenue
151.151.124.0000.33828.911 $165,000 Interlocal payment for services -911
- Total Revenues $165,000
Net Use of Fund Balance $0
•
COMMUNITY RELATIONS
125.125.434.0000.59473.630 $95,000 $95,000 Local match for Integrated Regional Public Safety System
Net Use of Fund Balance $95,000
CUMULATIVE RESERVE FOR CAPITAL IMPROVE.
392.392.528.1818.59550.650 $4,000,000 Lincoln Ave. Railroad Underpass Project -
Total Expenditures $4,000,000 Change order to correct the bottom seal (net of deduciton)
® Cum Res for Cap Imp.- Revenue
392.392.528.1818.33320.2FH $4,000,000 Federal Hiway Administration grant
Total Revenues $4,000,000
. Net Use of Fund Balance $0
EQUIPMENT REPLACEMENT FUND
551.552.636.ER06.59448.644 $230,000 Replace damaged Refuse Truck
Total Expenditures $230,000
. Equipment Rental Revenues
551.552.634.0000.39530.INR $130,000 Insurance Reimbursement
Total Revenues $130,000
Net Use of Fund Balance $100,000
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Save. (tun. f ;. moo', 5$igftto October 4, 2011
Yakima City Council
Yakima City Hall
Yakima, Washington
Re: Proposed Lincoln Avenue Underpass "Art"
Ladies and Gentlemen:
With so many "change orders" running into millions of dollars of unplanned costs in connection
with construction problems associated with the ongoing Lincoln Avenue Underpass project and, we
suspect, with even more to come, our organization known as Save Our American Rights ( "S.O.A.R ")
believes that it is time for the City to cut the "fluff' associated with the project. The "fluff' we are
referring to is the proposed artwork to be included as a part of the construction cost of the underpass.
Our suggestion is that the City shift the cost of the proposed artwork to the private sector:
Namely, the local fruit industry, which is comprised of extremely successful local companies engaged in
growing, processing and marketing their own products, as well as the products of others, throughout
America and the world.
The artwork to become part of the underpass project depicts, in large illuminated panels, the
labels and bins of the local fruit industry, past and present. This is great advertising for these firms, and
S.O.A.R. believes, and hope the City will agree, it is time for these highly profitable private sector firms
to step forward and raise the necessary funds for this phase of the project, if such artwork is wanted and
needed on the underpass.
S.O.A.R does not believe that highway and other tax dollars should be spent on anything other
than the planning, acquisition of right of way, actual construction of the underpass itself and other
infrastructure in connection with the project required for safe travel. The addition of such "art" does
not contribute to safer driving. If fact, it can be argued that such illuminated panels may be a distraction
that makes travel less safe.
The time is past due for government and its politicians to become frugal with respect to the use
of tax dollars collected from its citizens. If the City does not agree that it makes sense to shift the
burden of the cost of the proposed artwork to the private sector, then we respectfully suggest that you
allow the citizens to have a vote as to whether the artwork is a necessary component of this
construction project.
Very truly yours,
Save Our American Rights
By '
Mel Tanasse
P.O. Box 1288 • Yakima, Washington 98907 • www.saveouramericanrights.com