Title
An Ordinance approving Amendment No. 4 to the budget for the Fiscal Year ending June 30, 2020, as adopted by Ordinance No. 8643 and Ordinance No. 8652, by amending the authorized expenditures for the City of Lee's Summit and revising the authorized amount of Full Time Equivalents for the City of Lee's Summit. (F&BC 9-9-19)
Body
Issue/Request:
An Ordinance approving Amendment No. 4 to the budget for the Fiscal Year ending June 30, 2020, as adopted by Ordinance No. 8643 and Ordinance No. 8652, by amending the authorized expenditures for the City of Lee's Summit and revising the authorized amount of Full Time Equivalents for the City of Lee's Summit.
Key Issues:
There are five different items that make up this budget amendment, including (1) Emergency Dispatch Center Performance Audit, (2) election cost for August 2019 no tax increase bond, (3) repair of stormwater infrastructure failures, (4) postclosure landfill expenditures, and (5) temporary Full Time Equivalents (FTE) increase in Water Utilities Department.
-Emergency Dispatch Center Performance Audit. Partial funding for this audit was budgeted in FY19 and it was anticipated that a budget amendment would be needed for the additional amount. Since the selection process was completed after the end of the fiscal year, a budget amendment is needed to appropriate funding to the FY20 Budget. The cost of the audit is $53,500.
-Election Cost for August 2019 No Tax Increase Bond. When the FY20 Budget was developed and costs were estimated for the August 2019 No Tax Increase Bond election, it was not known if other jurisdictions would have items on the August 2019 ballot. When the election was held, there were not any other jurisdictions with items on the ballot, and, as a result, the City was responsible for the full cost to administer the election. The difference between the budgeted estimate and the actual cost is $100,000.
-Repair of Stormwater Infrastructure Failures. City is experiencing a growing number of stormwater system failures due to system aging and deterioration, especially sinkholes developing as a result of advanced corrosion of corrugated metal pipe (CMP). From 2011 to 2017, the City repaired 9 sinkholes related to stormwater issues. By comparison, since January 2019, the City identified 7 sinkholes caused by failed stormwater infrastructure. The projects identified in this amendment will repair the identified sinkholes and other failures to restore system function and prevent further damage to property. Repairs for stormwater infrastructure failures have been identified at 12 locations with an estimated cost of $635,675.
-Postclosure Landfill Expenditures. The City’s landfill reached capacity and stopped accepting waste in April 2019, at which time the process of capping the landfill with soil began which is typically referred to as landfill closure. Following the completion of the closure phase, the City will enter the post-closure phase which involves monitoring and maintaining the gas and leachate collection systems, making any necessary repairs to the landfill cover, regulatory reporting, and mowing and other grounds maintenance. These are not new expenses; they are currently budgeted in Fund 520-Solid Waste Management. This budget amendment authorizes expenses associated with post-closure activities to be paid out of the appropriate fund (Fund 260-Postclosure Trust Fund), as required by Missouri Department of Natural Resources (MDNR) regulations. The cash balance of Fund 260-Postclosure Trust Fund was $5.73M as of June 30, 2019.
-Temporary FTE Increase in Water Utilities Department. The Customer Service Supervisor position in the Water Utilities Department is essential for the accurate and timely processing of water/ sewer bills. The Customer Service Supervisor incumbent has informed the Water Utilities Department that they will be retiring as of December 2, 2019. In order to provide training to the person who will fill the Customer Service Supervisor position, the Water Utilities Department is requesting to temporarily increase the total FTE count by one additional Customer Service Supervisor position for a period not to exceed two months. This will provide the best option for the continuity of service and help to maintain the Water Utilities Department's low error rate with water/ sewer billing. The temporary FTE increase will be funded from anticipated vacancy savings in the FY20 Budget.
Proposed City Council Motion:
FIRST MOTION: I move for second reading of An Ordinance approving Amendment No. 4 to the budget for the Fiscal Year ending June 30, 2020, as adopted by Ordinance No. 8643 and Ordinance No. 8652, by amending the authorized expenditures for the City of Lee's Summit and revising the authorized amount of Full Time Equivalents for the City of Lee's Summit.
SECOND MOTION: I move for adoption of An Ordinance approving Amendment No. 4 to the budget for the Fiscal Year ending June 30, 2020, as adopted by Ordinance No. 8643 and Ordinance No. 8652, by amending the authorized expenditures for the City of Lee's Summit and revising the authorized amount of Full Time Equivalents for the City of Lee's Summit.
Background:
An RFP for the Emergency Dispatch Center Performance Audit was approved by City Council at the July 16, 2019 City Council meeting. The agenda item was BILL NO. 19-164, "An Ordinance approving the award of RFP No. 2019-071 for the Emergency Dispatch Center Performance Audit to Mission Critical Partners LLC for an Amount not to exceed $53,500.00 and Authorizing the City Manager to execute the same by and on behalf of the City."
Impact/Analysis:
Budget and FTE impact is outlined in the Ordinance and Exhibit A.
Other Information/Unique Characteristics:
If motion is passed by Finance and Budget Committee, then this ordinance will need to appear on the September 17, 2019, City Council Regular Session meeting agenda.
Presenter
Chris Clubine, Management Analyst
Recommendation
Recommendation: Staff recommends approval of the ordinance.
Committee Recommendation
Committee Recommendation: The Finance and Budget Committee voted unanimously 3-0 (Mayor Pro Tem Lopez "Absent") to recommend to City Council approval of An Ordinance approving Amendment No. 4 to the budget for the Fiscal Year ending June 30, 2020, as adopted by Ordinance No. 8643 and Ordinance No. 8652, by amending the authorized expenditures for the City of Lee's Summit and revising the authorized amount of Full Time Equivalents for the City of Lee's Summit.