5.g) Staff Report-2012 Budget Amendment for Uptown Sewer Project 1
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SCANDIA
StaffRenort
Date of Meeting: March 19, 2013
To: City Council
From: Kristina Handt, City Administrator
Re: 2012 Budget Amendment for Uptown Sewer Project
Agenda Item#: S.g)
Background:
The 2012 budget included a transfer from the Capital Improvement Fund to the Uptown Fund in
the amount of$99,601 as this was the estimate when the budget was adopted in December 2011.
However, the actual bids came in higher than expected and the cost for the 2012 Uptown Sewer
Improvement Project was $158, 354. When the auditors were here in early March, they
suggested the Council approve an amendment to the budget so their report would not show large
variances.
Issue:
Should the 2012 budget be amended to reflect the actual costs of the Uptown Sewer
Improvement Project?
Proposal Details:
Resolution 03-19-13-03 is included in your packet. It has been reviewed and approved by the
auditors to make the changes they suggest to the 2012 budget so that budgeted expenditures align
better with actual expenses. This does not in any way change the fact that the Council previously
decided that 25%of the loan from the Capital Improvement Fund would be repaid by the rate
payers over a fifteen year term. We just know the exact numbers now that bills have been
complete.
Fiscal Impact:
NA-change will just make expenditures consistent with budget
Options:
1) Approve Resolution 03-19-13-03
2) Amend and then Approve Resolution 03-19-13-03
3) Do not approve Resolution 03-19-13-03
Recommendation:
Option 1.
CITY OF SCANDIA
RESOLUTION NO: 03-19-13-03
RESOLUTION TO TRANSFER FUNDS FROM THE CAPITAL IMPROVEMENT
FUND TO THE UPTOWN SEWER FUND TO FINANCE SEWER MPROVEMENTS
AND AMEND 2012 BUDGET
WHEREAS, the City of Scandia 2012 Budget was adopted on December 20, 2011, which
included a transfer of$99,601 to the new Uptown Sewer Special Revenue fund to finance planned
capital improvements, and
WHEREAS, the bids were considerably above the engineer's estimate due to estimates
being based on material costs from three years ago and non-substantive changes were proposed to
lower the cost, and
WHEREAS,the Council awarded a contract for 2012 Uptown Wastewater System
Improvements to Septic Check in the amount of$138,693 on August 21, 2012, and
WHEREAS, actual project costs changed to $127,067.50 due to a additional work needed
and a City Council approved change order October 16, 2012 that reduced the cost of the project by
$13,750, and
WHEREAS,the City Council approved a payment to Septic Check for$120,714.13,with
5%being retained, and
WHEREAS, the additional expenses for legal, bid ads, electrical work, Xcel and others
brought total project costs to $158,354;
NOW,THEREFORE,BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SCANDIA,WASHINGTON COUNTY, MINNESOTA,will transfer a total of
$158,354 from the Capital Improvements Fund (401) to the Uptown Sewer Fund (612) to amend the
2012 budget and to finance the cost of improvements with the understanding that 25%of the project
is to be paid back by the users over a 15 year period.
Adopted by the Scandia City Council this 19th day of March 2013.
Randall Simonson, Mayor
ATTEST:
Kristina Handt,Administrator/Clerk