Title
Consider/Discuss/Act on an Ordinance Amending Ordinance No. 2006-06-082 that Established a Sinking Fund for the Funding of Operations and Maintenance Obligations Under the Operation and Maintenance Agreements with the USDA-NRCS for Certain Floodwater Retarding Structures in the City of McKinney, Collin County, Texas by Providing for the Inclusion of Future Funding Obligations Associated with Operations and Maintenance Agreements for Additional Floodwater Retarding Structures in Said Sinking Fund and by Providing for the Periodic Update of Costs Associated with Said Sinking Fund
Summary
MEETING DATE: October 21, 2014
DEPARTMENT: Engineering
CONTACT: Mark Hines, PE, Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
· Approval of Ordinance
ITEM SUMMARY:
· This ordinance amends the Sinking Fund created for the purpose of funding Operations and Maintenance obligations identified in the "Operation and Maintenance Agreement East Fork Above Lavon Watershed Collin County, Texas for rehabilitated structures 1A, 2B, 3C, 3D, 3E, 5A, and 17" to include East Fork above Lavon Floodwater Retarding Structure Site 2A and subsequent NRCS floodwater retarding structures as they are rehabilitated within the City's jurisdiction.
· The Sinking Fund is also amended to include the estimated operation and maintenance costs of $3,500 for a year for Site 2A and increase the estimated operation and maintenance costs for the floodwater retarding structures in the previously approved agreement from $2,500 to $3,500 per year for each such structure.
· The Sinking Fund is further amended to allow the estimated cost of the operation and maintenance of the floodwater retarding structures to be increased or decreased in accordance with the underlying agreements upon the direction of the City Council through a resolution or ordinance without further amending the Sinking Fund Ordinance.
· The Sinking Fund is also amended to allow the City Council to direct the Finance Director by resolution or ordinance to add operation and maintenance costs from a newly approved Operation and Maintenance Agreement with the USDA-NRCS to the Sinking Fund without amending the Sinking Fund and extends the life of the Sinking Fund to run parallel with the program life of the last remaining floodwater retarding structure as each structure has a defined program life assigned by the underlying agreements.
· The Sinking Fund is being established within the City's Stormwater Drainage Utility Fund and may be funded through the City's Stormwater Utility Fee rather than the City's ad valorem tax if the Sinking Fund can be, and is actually, funded and maintained by and through the proceeds collected in conjunction with the Stormwater Utility Fee for each fiscal year while any liability exists by reason of the obligations undertaken under the Operation and Maintenance Agreements with the USDA-NRCS.
· The City's Chief Financial Officer shall keep and maintain all records relating to this Sinking Fund and all such other related documentation and accounts.
BACKGROUND INFORMATION:
· Also on this agenda is a resolution authorizing the Interim City Manager to enter into an Operation and Maintenance Agreement for NRCS EFAL Site 2A.
· The City must agree to take on responsibility for operation and maintenance as a condition of receiving federal funding for the 2A Rehabilitation project.
· The Sinking Fund was originally established in Fiscal Year 2007 to develop a funding mechanism for the operation and maintenance costs associated with seven NRCS-Assisted Structures.
FINANCIAL SUMMARY:
· The estimated cost of maintenance is $3,500 per floodwater retarding structure per year.
BOARD OR COMMISSION RECOMMENDATION:
· N/A