CITY COUNCIL AGENDA ITEM
Memo Date: August 21, 2023
Agenda Date: September 12, 2023
Prepared By: James Mitchell, Water Treatment Manager (Interim)
Through: John A. Walsh, PE, Utilities Director
Requested Action:
title
To Approve a Resolution Amending the FY23 Budget (BAF#23-111-T) in the amount of $340,000.00.
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body
BACKGROUND:
The primary electrical utility provider for the Dyal Water Treatment Plant is Duke Energy.
Due to an unanticipated increase in electrical utility costs, the FY23 Duke Power P.O. #80558 is insufficient and requires a change order to continue uninterrupted service through the end of FY23.
Staff recommends a budget adjustment in the amount of $340,000.00 to adequately fund P.O. #80558 for the remainder of FY23.
The City Council recently adopted Ordinance No. 05-2023 amending the City Manager’s spending authority under Section 2-4 of the City Code. Therefore, upon Council’s approval of the budget adjustment necessary to fund electric utilities, the city manager shall have the authority without further approval of the council to issue purchase orders and pay invoices related to utility services required by the city for normal routine operations up to the amount budgeted and appropriated by the city council in the city’s annual budget including, but not limited to, electric, gas, fuel, solid waste, telephone, water, sewer and stormwater services.
STRATEGIC PLAN CONNECTION:
N/A
BUDGETARY IMPACT:
Budgeted No
If not budgeted, is amendment/transfer attached? Yes, BAF#23-111-T
Amount Requested $340,000.00
Transfer From Account Number-1 421-4020-536.34-00
Transfer From Account Name Contract Services
Transfer Amount ($220,000.00)
Transfer From Account Number-2 421-4020-536.52-09
Transfer From Account Name Chemicals DYCH04
Transfer Amount ($120,000.00)
Transfer To Account Number 421-4020-536.43-00
Transfer To Account Name Utility Services
Transfer Amount $340,000.00
If a P.O. Change Order is involved please complete the following:
Change Order Amount $340,000.00
Original Purchase Order 80558
Original P.O. Amount $1,263,000.00
For this Agenda Item note Prior Change Order Information:
Total number of change orders to date: 3
Total amount in change orders to date: $15,000.00
New Purchase Order amount $1,618,000.00
PREVIOUS ACTION:
On September 13, 2022, City Council Authorized the City Manager to approve Purchase Orders for electrical utilities as they relate to electrical consumption only and for Verizon cellular and data services consumption for FY2023, pending the approval of the FY23 Budget (Agenda #22-519). On July 11, 2023, the City Council authorized Ordinance 05-2023 providing that the city manager shall have the authority without further approval of the council to issue purchase orders and pay invoices related to utility services required by the city for normal routine operations up to the amount budgeted and appropriated by the city council in the city’s annual budget including, but not limited to, electric, gas, fuel, solid waste, telephone, water, sewer and stormwater services.
RECOMMENDED MOTION:
Recommendation
To Approve a Resolution Amending the FY23 Budget, BAF#23-111-T in the amount of $340,000.00.