Fiscal Note
The proposed resolution amends the Water Utility's adopted 2016 capital budget by transferring $887,000 of budget authority from the Pump Stations Improvements program (MUNIS 10942) to the Paterson Street Operations Center Reconsrtuction project (MUNIS 10442). The funding source for the budget authority being transferred was established from Water Utility reserves.
The Pump Stations Improvements program is established to enhance pump station functionality, well improvements, and pressure reducing valve stations. There are no planned projects for 2016 in the Pump Stations Improvments program for the remaining budget authority. That remaining unused authority is instead being requested to be used for the remaining costs anticipated in 2016 for the Paterson Street Operations Center.
MUNIS:
($887,000) 10942-86-140
$887,000 10442-86-140
Title
Amending the Water Utility's 2016 Capital Budget to transfer $887,000 from the Pump Station Improvements Program budget to the Paterson Street Operations Center Reconstruction.
Body
BACKGROUND
The Paterson Street Remodel project construction started in September 2015. This is a multi-year multi-phase project that will be completed over the years 2015-2016-2017 under two separate construction contracts. The project also includes significant costs that are outside the remodeling construction project contracts including but not limited to: construction administration fees, rental fees for temporary space, building furnishing costs, SCADA Room upgrade costs, and Utility direct costs.
The current budget authorization for the Paterson Street Remodel project for 2016 including unallocated funds from prior years is $7,856,394. Projected 2016 spending for all portions of the project as noted above equals $8,641,497 resulting in a shortfall of $785,103.
$887,000 was budgeted for Pump Station projects and no specific projects have been identified for 2016 that would require allocation of these budgeted funds and they will remain uncommitted for all of 2016.
Given this analysis, Madison Water Utility requests that the full amount of $887,000 from the Pump Station Unallocated project be reallocated to the Paterson Street Remodel.
RESOLUTION
WHEREAS, the reconstruction of Madison Water Utility's Operations Center at 110 S. Paterson Street was identified as one of the highest priorities in the City of Madison due to poor working conditions, air quality, safety, and efficiency; and,
WHEREAS, construction started in September of 2015 with the first of two major Public Works contracts and is projected to be completed in 2017; and
WHEREAS, the project includes a Public Works contract to upgrade the SCADA room; and
WHEREAS, the project includes costs associated with maintaining the operations center fully functional and providing temporary work space throughout construction, refurnishing the new building, and other associated direct Water Utility costs; and
WHEREAS, Water Utility engineering staff estimate that 2016 expenditures will exceed 2016 authorized funds by roughly $785,000 due to those costs outside of the direct construction contract costs and these costs are considered necessary and reasonable for the project; and
WHEREAS, Water Utility staff estimate that roughly $887,000 of the Madison Water Utility's authorized capital budget will remain uncommitted by the end of 2016 and, thus, is available for the Paterson Street Operations project; and
NOW, THEREFORE, BE IT RESOLVED, that the Common Council amends the Water Utility’s 2016 Adopted Capital Budget in the amount of $887,000 via budget transfer from the Pump Station Improvements Program to the Paterson Street Operations Center Reconstruction Project with the original source funding being Water Utility reserves applied; and,
BE IT FINALLY RESOLVED, that the Common Council authorizes the Mayor and City Clerk to amend or execute any agreements that are deemed necessary to accomplish the goals of this Resolution.