2015 2:00:00 PM

Tuesday, May 26, 2015 2:00 PM
Council Chambers, Legislative Bldg, 745 4th St., Sparks

General Business: 9.5

Title: Consideration and possible adoption of Resolution No.3277 to augment the FY15 Capital Projects Fund budget of the City of Sparks to provide appropriations to partially cover Change Orders #1 & #2 on the Alf Sorensen Pool Area Ventilation & Building Envelope Improvement Project (Alf project).

Petitioner/Presenter: Stacie Hemmerling, Budget Administrator/Stacie Hemmerling, Budget Administrator

Recommendation: That Council adopt the resolution as recommended by staff.

Financial Impact: $411,071 increase to FY15 appropriations in the Capital Projects Funds (1404). The resource for this augmentation is a refund received from Truckee Meadows Water Authority (TMWA) in the amount of $411,071 which was recorded as revenue in the General Fund and then transferred to the Capital Projects Fund (1404) in order to be available for FY15 expenses related to structural issues at the Alf Sorensen Community Center (Alf).

Business Impact (Per NRS 237):
A Business Impact Statement is not required. This is a rule but does not impose a direct and significant economic burden on a business, or directly restrict the formation, operation or exemption of a business.

Agenda Item Brief:

This item seeks to augment the FY15 Capital Projects fund (1404) budget to partially cover the costs of Change Orders #1 and #2 on the Alf project. The funding source for the augmentation is a $411,071 refund received from TMWA which represented a refund of several years water over-billings at Alf. The procedures and requirements for budget augmentations are outlined in NRS 354.598005 and NAC 354.410. This augmentation request meets those requirements.

Background:

March 23, 2014 - Council approved a contract to construct renovations at Alf as part of the Alf Sorensen Pool Area Ventilation & Building Envelope Improvement Project (Alf project) approved on the FY14 CIP

August 11, 2014 - Council approved Change Order #1 in the amount of $586,465 to address structural issues discovered once construction began. Appropriations from another project (City Hall HVAC Upgrades) were transferred to cover Change Order #1 on the Alf project

August 12, 2014 - A check was received from TMWA in the amount of $411,071 representing a reimbursement of several years of over-billing for water at the Alf. The amount was recorded as revenue in the General Fund.

August 13, 2014 - City Manager instructed Financial Services to transfer the TMWA refund amount from General Fund to Capital Projects Fund (1404) to help cover the unanticipated costs of the Alf project, and to preserve as much as possible the funding for the City Hall HVAC Upgrades. The transfer was posted to FY14 and is therefore a part of the ending fund balance in the Capital Projects Fund in the FY14 audited financial statements.

November 24, 2014 - Council approved Change Order #2 in the amount of $205,000 for additional structural issues discovered as part of the Alf project

Today - We are seeking to provide FY15 appropriations in the Capital Projects Fund in an amount equal to the TMWA refund.

Analysis:

The provisions of NRS 354.598005(1) govern the procedures and requirements for augmenting or amending a budget; given that anticipated resources available exceed those estimated. Available resources are defined in NAC 354.410, and include unappropriated ending fund balances of Capital Projects Funds. As evidenced in the FY14 audited ending fund balance of the Capital Project Fund, sufficient resources are available for this augmentation.

To augment the budget, NRS 354.598005 requires the governing board adopt a resolution providing for the augmentation. This requirement applies to all fund types. NAC 354.420 requires a “Revised Revenue Schedule” (included as Attachment A with this agenda item) be submitted along with the resolution to the State of Nevada Department of Taxation

Attached is a resolution to augment the City’s Capital Projects Fund.

Augmentation of the Capital Project Fund’s budget will be effective upon delivery of an executed copy of the resolution to the Department of Taxation. Delivery must be before June 30, 2015

Alternatives:

Council could decide not to adopt the resolution to augment the FY15 budget. This could cause expenditures in the Capital Projects Fund to exceed appropriations, and would therefore be a violation of NRS 354.626. The violation would be noted in the audited financial statements.

Council could decide to adopt the resolution to augment the FY15 budget and provide appropriations equal to the TMWA refund of $411,071.

Recommended Motion:

I move to adopt Resolution No. 3277 to augment the FY15 Capital Projects Fund budget.

Attached Files:

FY15 Resolution - Alf Pool Ventilation from TMWA refund - 411k.pdf

FY15 Alf Pool Ventilation staff rpt Attachment A.pdf

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