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HomeMy WebLinkAboutOrd. 2021-3857 - budget amendments, 12-13-21ORDINANCE 2021-3857 AN ORDINANCE APPROVING AN AMENDMENT TO THE BUDGET FOR THE CITY OF LA PORTE, TEXAS, FOR THE PERIOD OF OCTOBER 1, 2021, THROUGH SEPTEMBER 30, 2022; FINDING THAT ALL THINGS REQUISITE AND NECESSARY HAVE BEEN DONE IN PREPARATION AND PRESENTMENT OF SAID BUDGET; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. WHEREAS, the Charter of the City of La Porte, Texas, and the Statutes of the State of Texas, require that an annual budget be prepared and presented to the City Council of the City of La Porte, Texas, prior to the beginning of the fiscal year of said City, and that a public hearing be held prior to the adoption of said Budget; and WHEREAS, the Budget for the fiscal year October 1, 2021, through September 30, 2022, has heretofore been presented to the City Council and due deliberation had thereon, was filed in the office of the City Secretary on July 27, 2021, and a public hearing scheduled for September 13, 2021 was duly advertised and held, and said Budget was approved by ordinance on September 13, 2021; WHEREAS, Subsection (b) of Section 102.009 of the Texas Local Government Code provides that, after final adoption of the budget, the governing body of the municipality may spend municipal funds only in strict compliance with the budget, except in emergency, where in such cases the governing body of the municipality may authorize an emergency expenditure as an amendment to the original budget only in the case of grave public necessity to meet an unusual and unforeseen condition that could not have been included in the original budget through the use of reasonably diligent thought and attention; WHEREAS, Section 102.010 of the Texas Local Government Code provides that the governing body of a municipality may make changes to its budget for municipal purposes; WHEREAS, the adoption of this ordinance and the amendment of the Budget is necessary for and in the best interest of the health, safety and general welfare of the inhabitants of the City; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: SECTION 1. A grave public necessity exists and to meet an unusual and unforeseen condition that could not have been included in the original budget through the use of reasonably diligent thought and attention, the Budget must be amended and revised with respect to those appropriations set forth in Exhibit C, attached hereto by reference and made part hereof. In support thereof, the City Council finds that additional expenditures are necessary for the following purposes: 1) $58,000 for increased costs for liquid chlorine, and 2) repairs to Seabreeze Pier for damages from Hurricane Nicholas. Such additional expenditures are more specifically described on Exhibit C. SECTION 2: That the Budget for the City of La Porte, Texas, now before the said City Council for consideration, a complete copy of which is on file with the City Secretary and a summary of which is attached hereto by reference as Exhibit "A", is hereby amended as reflected on the amended budget summary document, attached hereto by reference as Exhibit “B”, as the Budget for the said City of La Porte, Texas, for the period of October 1, 2020, through September 30, 2021. SECTION 3. The amounts stated in Exhibit C as the requested additional expenditures are hereby appropriated to and for the objects and purposes therein named and are found to be for municipal purposes. SECTION 4. The amended and revised expenditures contained in the Budget, do not exceed the resources of each fund, as so amended and revised. SECTION 5: The City Council finds that all things requisite and necessary to the adoption of said Budget and the amendments made hereto have been performed as required by charter or statute. SECTION 6. Upon the passage and adoption of this ordinance, a copy of the ordinance shall be filed with the City Secretary, who shall attach a copy of same to the original budget. SECTION 7 : The City Council officially finds , determines, recites and declares that a sufficient writte n notice of the date, hour, place and subject of this meeting of the C ity Council was posted at a place convenient to the public at the C ity Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551 , Texas Government Code; and that this meeting has been open to the public as required by law at all times during which th is Ordinance and the subject matter thereof has been discussed , considered and formally acted upon. The City Council further rat ifies, approves and confirms such written notice and the contents and posting thereof. SECTION 8: This Ord inance shall be in effect from and after its passage and approval. PASSED AND APPROVED this the 13th day of December, 202 1. s FY 21-22 FY 21-22 Revenues Expenses Governmental Fund Types: General Fund 55,730,612$ 59,219,618$ Grant Fund 8,303,275 11,869,023 Street Maintenance Sales Tax 1,503,500 1,703,000 Emergency Services District 1,502,500 1,495,463 Hotel/Motel Occupancy Tax 652,000 1,032,682 Economic Development Corporat 3,009,000 3,087,771 Tax Increment Reinvestment 7,375,143 3,642,980 Total Governmental Types 78,076,030 82,050,537 Enterprise: Utility 8,256,000 9,360,032 Airport 59,500 109,721 La Porte Area Water Authority 1,969,354 1,778,979 Total Enterprise 10,284,854 11,248,732 Internal Service Motor Pool 4,275,738 4,080,493 Insurance Fund 10,320,731 9,333,698 Technology Fund 479,633 539,024 Total Internal Service 15,076,102 13,953,215 Capital Improvement: General 5,438,531 3,705,823 Utility 652,000 690,000 Sewer Rehabilitation 300,500 350,000 Drainage Improvement Fund 1,892,000 1,976,520 2021 Certificates of Obligation - 1,100,000 Total Capital Improvement 8,283,031 7,822,343 Debt Service: General 5,029,752 5,027,196 Total Debt Service 5,029,752 5,027,196 Total All Funds 116,749,769$ 120,102,023$ City of La Porte Consolidated Summary of All Funds EXHIBIT A (ADOPTED BUDGET) FY 21-22 FY 21-22 Revenues Expenses Governmental Fund Types: General Fund 55,730,612$ 59,319,773$ Grant Fund 8,303,275 11,869,023 Street Maintenance Sales Tax 1,503,500 1,703,000 Emergency Services District 1,502,500 1,495,463 Hotel/Motel Occupancy Tax 652,000 1,032,682 Economic Development Corporat 3,009,000 3,087,771 Tax Increment Reinvestment 7,375,143 3,642,980 Total Governmental Types 78,076,030 82,150,692 Enterprise: Utility 8,256,000 9,418,032 Airport 59,500 109,721 La Porte Area Water Authority 1,969,354 1,778,979 Total Enterprise 10,284,854 11,306,732 Internal Service Motor Pool 4,275,738 4,080,493 Insurance Fund 10,320,731 9,333,698 Technology Fund 479,633 539,024 Total Internal Service 15,076,102 13,953,215 Capital Improvement: General 5,438,531 3,705,823 Utility 652,000 690,000 Sewer Rehabilitation 300,500 350,000 Drainage Improvement Fund 1,892,000 1,976,520 - 1,100,000 Total Capital Improvement 8,283,031 7,822,343 Debt Service: General 5,029,752 5,027,196 Total Debt Service 5,029,752 5,027,196 Total All Funds 116,749,769$ 120,260,178$ EXHIBIT B (AMENDED BUDGET) City of La Porte Consolidated Summary of All Funds EXHIBIT C REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: December 13, 2021 Requested By: Ray Mayo, Director Department: Public Works Report Resolution Ordinance Exhibits: Bid Tabulation #22005, Access report, DXI Bid SUMMARY & RECOMMENDATION City of La Porte Bid # 22005 for Liquid Chlorine was opened on November 9, 2021. The bid was advertised on October 21st and October 28th editions of the Bay Area Observer, posted on Public Purchase and the City website. A total of 17 vendors accessed the bid documents, with only one supplier providing a bid. The bid was for estimated quantities to establish unit prices for 150 pound and one ton cylinders. The single bid was provided by DXI Industries. DXI is the major provider for liquid chlorine and major water treatment chemicals in the Houston, Texas Area. DXI has been the preferred chemical provider to the City of La Porte for over 20 years. In early October the City was notified of a substantial price increase for liquid chlorine that is affecting cities across the nation. During budget preparation, staff planned for a 20% increase, the product is now seeing a 150% increase. Staff recommends approval of a budget amendment ($58,000.00) and award of Bid #22005 to DXI Industries to provide liquid chlorine for water and wastewater treatment. Benefits: •Acceptance of the bid will provide stable chlorine prices for one year. Liabilities: •Future world market for chemicals is volatile. ACTION REQUIRED BY CITY COUNCIL Award Bid #22005 for Liquid Chlorine to DXI Industries and authorize the City Manager to enter into a one-year contract, not to exceed amended budget amounts. Appropriation Source of Funds: 002 – Utility Fund Account Number: 002-7084-533-2007 002-7087-532-2007 Amount Budgeted: $3,600.00 $80,000.00 Amount Requested: $6,600.00 $135,000.00 Budgeted Item: Yes No Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date EXHIBIT C EXHIBIT C REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: December 13,2021 Requested By: Ray Mayo, Director Department: Public Works Report Resolution Ordinance Exhibits: Bid Tabulation 22003, Notification and Access Report, Bid from MB Western, Request Letter to Harris County, Harris County Approval SUMMARY & RECOMMENDATION City of La Porte Bid #22003 Sylvan Beach and Seabreeze Pier Repairs, was opened on November 16, 2021. The bid was advertised on October 21st and October 28th in the Bay Area Observer, The City website and Public Purchase. A total of 31 contractors downloaded the bid documents and three (3) bids were received. The low bid was submitted by MB Western Industrial Contracting Co., in the amount of $171,430.00. References for the low bidder were checked by staff and found to be favorable. Both Sylvan Beach Pier and Seabreeze Pier were damaged during Hurricane Nicholas, on September 13, 2021, after the FY2021-22 budget had been approved. Routine repairs were budgeted for Sylvan Beach Pier in the amount of $110,000.00. The balance remaining from the remaining from the original budget amount will be used for electrical repairs to Sylvan Beach pier after the reconstruction is completed. The scope of the electrical repairs will be assessed after the pier is re-constructed. A budget amendment will need to be approved for the repairs to Seabreeze pier. Sylvan (budgeted) $110,000 Seabreeze (amended budget) $100,155 Bid Amount $86,275 Bid Amount $85,155 Contingency $15,000 Contingency $15,000 Remaining for electrical repairs; $8,725 and unspent contingency In 1994, there was an escrow fund established by agreement with Harris County for future Sylvan Beach pier maintenance and repairs. The fund is comprised of two-thirds (2/3) of the fees collected for pier entry tickets. Repairs in excess of $5,000.00 annually require written approval from Harris County. Appropriation Source of Funds: Escrow Account & General Fund Account Number: 001-7078-535-4011 Amount Budgeted: $110,000.00 Amount Requested: $201,430.00 Budgeted Item: Yes No Staff recommends approval of a budget amendment for Seabreeze Pier repairs ($100,155.00) and the award of Bid #22003 to MB Western Industrial Contracting Co. in the amount of $171,430.00 along with a contingency amount of $30,000.00, for a total authorization of $201,430.00. Benefits: •Both piers are widely recognized as amenities in La Porte •Both piers are heavily used by visitors and residents Liabilities: •Delays in repair may lead to increased repair costs •Delays in repair may affect the number of visitors to La Porte ACTION REQUIRED BY CITY COUNCIL Award of Bid #22003 Sylvan Beach and Seabreeze Pier Repairs, to MB Western Industrial Contracting Co. and authorize the City Manager to enter into a construction contract in the amount of $171,430.00, with a contingency in the amount of $30,000.00, for a total authorization of $201,430.00. Approved for the City Council meeting agenda Corby D. Alexander, City Manager Date EXHIBIT C