Title
Consider/Discuss/Act on an Ordinance Amending the Fiscal Year 2024-2025 Annual Budget and Amending the 2025-2029 Capital Improvements Program to Provide Funds for the Chestnut 0.5 MG Elevated Storage Tank Rehabilitation Project (WA2240)
Summary
COUNCIL GOAL: Operational Excellence
(2B: Balance available resources to accommodate the growth and maintenance needs of the city)
MEETING DATE: June 3, 2025
DEPARTMENT: Development Services / Engineering
CONTACT: Blake Sills, PE, Engineering CIP Manager
Paul Tucker, PE, Senior Utility Engineer
RECOMMENDED CITY COUNCIL ACTION:
• Approve ordinance
ITEM SUMMARY:
• This Ordinance amends the Fiscal Year 2024-2025 Annual Budget and Amending the 2025-2029 Capital Improvement Program to provide funding for the Chestnut 0.5 MG Elevated Storage Tank Rehabilitation Project (CIP Project WA2240)
BACKGROUND INFORMATION:
• Blastco Texas Inc. for the Chestnut 0.5 MG Elevated Storage Tank Rehabilitation Project (CIP Project WA2240).
• Current funding/revenues in CIP Project WA2240 are insufficient to cover the actual construction costs of the project and associated construction contingencies based on significant construction price inflation that has occurred over the life of the project.
• A budget amendment is needed to increase the project budget to cover the actual construction cost of the project and advance the needed Chestnut 0.5 MG Elevated Storage Tank Rehabilitation Project depending on the option selected.
o Option 1 - Full Contract
o Option 2 - Removal of Leg Column RBGW Lighting ($210,000 reduction)
o Option 3 - Removal of Leg Column RBGW Lighting, Site work, landscaping, and irrigation ($613,165 reduction)
• A table depicting the funding for each option is summarized in the table below.
|
Funding Sources |
Option 1 - Bid Total plus NTE $4,500,000 |
Option 2 - Reduced Bid Total plus NTE $4,275,000 |
Option 3- Reduced Bid Total plus NTE $3,689,000 |
|
Fund 20 |
$3,265,000 |
$3,265,000 |
$3,265,000 |
|
MCDC Grant |
$500,000 |
$500,000 |
$500,000 |
|
TIRZ Funding |
$725,000 |
$500,000 |
$0 |
|
Hotel/Motel Fund |
$500,000 |
$500,000 |
$415,000 |
|
Expense - Freese & Nichols |
($465,000) |
($465,000) |
($465,000) |
|
Expense - Materials Testing |
($25,000) |
($25,000) |
($25,000) |
|
Total Available Project Funding |
$4,500,000 |
4,275,000 |
3,690,000 |
• The budget shall be amended by appropriating funding from the Hotel/Motel Fund balance and transferring it to the Utility Construction Fund, and
• The budget shall be amended by appropriating funding from the TIRZ 1 Fund balance and transferring it to the Utility Construction Fund, and
• The budget shall be amended by appropriating funding from the Utility Construction Fund balance to the Capital Improvement Program for the Chestnut 0.5 MG Elevated Storage Tank Rehabilitation Project (WA2240).
FINANCIAL SUMMARY:
• This Ordinance amends the Fiscal Year 2024-2025 Annual Budget, and the 2025-2029 Capital Improvement Program to provide funding for the Chestnut 0.5 MG Elevated Storage Tank Rehabilitation Project (WA2240).
BOARD OR COMMISSION RECOMMENDATION:
• N/A