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Home My WebLink AboutResolution - 2004-R0451 - Resolution Accepting Brazos River Authority FY 2005 Budget - 09_16_2004Resolution No. 2004-RO451 September 16, 2004 Item No. 53 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock hereby accepts for and on behalf of the City of Lubbock, the Brazos River Authority FY 2005 Budget for Lake Alan Henry. Said FY 2005 Budget and Brazos River Authority letter of August 12, 2004 are attached as Exhibit "A" and Exhibit `B", respectively, and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 16th day of ATTEST: Rebe ca Garza, City Secretary APPROVED AS TO CONTENT: Tom Adams, Deputy City Manager APPROVED AS TO FORM: Richard K. Casner First Assistant City Attorney ke/ccdocs/LAH.BRAbudgetFY2005. res August 25, 2004 a PF" Brazos River Authority FY 2005 Operating Budget Lake Alan Henry Draft as of June 23, 2004 Table of Contents FY 2005 Budget Summary Direct Labor Detail Capital Outlay Management Fee Calculation FY 2003 Summary of Operations FY 2005 Financial Requirements & Monthly Payment Debt Service Detail 1 2 3 4 5 6 7 f Brazos River Authority FY 2005 Operating Budget Lake Alan Henry Draft as of June 23, 2004 FY 2003 FY 2004 FY 2004 FY 2005 $ Increase/ % Increase/ Expense Category Actual Est. Actual Budget Budget (Decrease) (Decrease) Salaries 62,749 68,517 71,851 74,742 2,891 4.02% Benefits 13,714 22,613 14,903 25,643 10,740 72.07% Materials & Supplies 10,529 10,100 10,200 13,700 3,500 34.31% Repairs & Maintenance 8,983 23,453 21,200 18,700 (2,500) -11.79% Rent 14 3,750 3,750 5,000 1,250 33.33% Utilities 25,802 32,050 32,340 32,840 500 1.55% Travel 3,969 900 2,600 1,500 (1,100) -42.31% Outside Services 9,835 81,959 79,236 61,649 (17,587) -22.20% Employee Development - 200 500 1,200 700 140.00% Capital Outlay - 24,500 129,500 235,000 105,500 81.47% -' Direct Labor 7,977 13,719 10,718 19,072 8,354 77.94% General & Administrative 27,279 29,818 28,119 26,824 (1,295) -4.61% fStream Gauging 3,524 3,211 3,000 3,150 150 5.00% ` Subtotal 174,375 314,790 407,917 519,020 111,103 27.24% Management Fee 8,719 15,740 20,396 25,951 5,555 27.24% Total O&M 183,094 330,530 428,313 544,971 116,658 27.24% Debt Service 4,459,266 4,248,660 4,248,660 4,245,985 (2,675) -0.06% Debt Service Mgmt Fee 21,311 21,243 21,243 21,230 (13) -0.06% Subtotal Debt Service 4,480,577 4,269,903 4,269,903 4,267,215 (2,688) -0.06% Total FY 05 Expenditures 4,663,671 4,600,433 4,698,216 4,812,186 113,970 2.43% Salaries & Supplies Outside Services Employee Development Capital Outlay Diretc Labor General & Administrative Management Fee Debt Service Explanation of Increases/Decreases Increase due to adding new employee and increaes in retirement costs Replace security gate opener, increase in fuel costs and additional fleet vehicle Bulldozer rental Utilize video conferencing to decrease travel to Central Office Completion of geotech survey and five year inspection Uniforms for two employees See detail on page 3 See detail on page 2 30% of labor dollars See detail on page 4 See detail on page 7 1 Brazos River Authority FY 2005 Operating Budget s Lake Alan Henry i Draft as of June 23, 2004 3 Schedule 1 Direct Labor Title Engineering Safety & Training Regional Mgmt Total Hours Amount 125 5,857 275 6,012 150 7,203 550 $ 19,072 Activities - Continuing investigation of the outlet tower bridge TCEQ dam safety office inspection Inspection & training for RO plant Conduct Vulnerability Assessment Security inspections Emergency management training & exercises 2 Brazos River Authority FY 2004 Operating Budget Lake Alan Henry Draft as of June 23, 2004 Schedule 2 Captial Outlay Description Amount ecurity Fence - this item was included in the FY 04 budget, but will not 105,000 be completed in FY 04. Customer has already funded this purchase eplace 1999 Ford F-150 with 105K plus miles 25,000 ractor 40,000 ackhoe 50,000 nstall monitors on tower bridge 15,000 Total FY 2005 Capital Outlay $ 235,000 3 Brazos River Authority FY 2005 Operating Budget Lake Alan Henry Draft as of June 23, 2004 3 Management Fee Calculation Total Expenditures (before Mgmt. Fees) $ 519,020 O&M Management Fee Rate 5% JFY 2005 O&M Management Fee $ 25,951 Total Debt Service $ 4,245,985 Debt Service Mgmt Fee Rate 0.50% FY 2005 Debt Service Mgmt Fee $ 21,230 Total FY 2005 Management Fees $ 47,181 L U11 4 Brazos River Authority FY 2005 Operating Budget Lake Alan Henry Draft as of June 23, 2004 FY 2003 Summary of Operations and Calculation of Carry -Over Balance O&M Carryover Balance at 8/31/2002 $ 133,214 Receipts Customer O&M payments 221,236 Employee house lease 2,187 Oil & Gas Royalties 1,456 Total Receipts $ 224,880 Expenditures Salaries 62,749 Benefits 13,714 Materials & Supplies 10,529 Repairs & Maintenance 8,983 Rent 14 Utilities 25,802 Travel 3,969 Outside Services 91835 Employee Development - Capital Outlay - Direct Labor 7,977 General & Administrative 27,279 Stream Gauging 3,524 Subtotal 174,375 Management Fee 8,719 Total O&M $ 183,094 FY 2003 Net Increase from Operations $ 41,786 O&M Carryover Balance at 8/31/2003 $ 175,000 5 Brazos River Authority FY 2005 Operating Budget Lake Alan Henry Draft as of June 23, 2004 FY 2005 Financial Requirements with Under Recovery Applied Maintenance and Operation Expense Less: Security Fence, funded in FY 2004 Carryover applied to FY 2005 payments * Total Financial Requirements for City of Lubbock FY 2005 Monthly Payments beginning September 2004 Monthly Payments for FY 2004 * These funds to be used at the discretion of the City of Lubbock 0 $ 544,971.00 $ (105,000.00) $ 439,971.00 J12 months $ 36,664.25 $ 39,032.42 Brazos River Authority FY 2005 Operating Budget Lake Alan Henry Draft as of June 23, 2004 Detail of FY 2005 Debt Service Payments Interest due Feb. 15, 2005 $ 1,235,492.50 Management Fee (0.5%) 6,177.46 Total due Feb. 15, 2005 $ 1,241,669.96 Interet due Aug. 15, 2005 $ 1,235,492.50 Principal due Aug. 15, 2005 1,775,000.00 Management Fee (0.5%) 15,052.46 Total due Aug. 15, 2005 $ 3,025,544.96 Total FY 2005 Debt Service Payments $ 4,267,214.93 BRA will invoice City of Lubbock for these charges as they come due. 7 Jill Brazos RiverAuthority Mr. Bruce Blalack Water Production & Treatment Superintendent City of Lubbock P.O. Box 2000 Lubbock, Texas 79457 Re: Lake Alan Henry Budget Dear Mr. Blalack: Resolution No. 2004-RO451 September 16, 2004 Item No. 53 (0 QUALITY. CONSERVATION • SERVICE August 12, 2004 As you are aware, Brazos River Authority (Authority) personnel met with the City of Lubbock (City) on June 24, 2004 to provide the FY05 Operating Budget for Lake Alan Henry (LAH). Per your July 29, 2004 phone conversation with Mike McClendon (Upper Basin, Government & Customer Relations Manager), you asked that we address four specific issues related to the FY05 budget: Draft Budget vs. Final Budget -- the FY05 Operating Budget for Lake Alan Henry that was provided to the City of Lubbock on June 24, 2004 and labeled Draft as of June 23, 2004 was adopted by resolution (attached) as the final FY05 operating budget for LAH by the Authority's Board of Directors (BOD) on July 26, 2004. Security fence listed on page 3 of the draft budget under the title of Capital Outlay -- the City has requested that both parties agree and do hereby stipulate that security gates will be installed on both ends of the dam instead of a security fence as stated. In addition, the City has asked if estimates for the gate construction have been procured. At this time, gate construction Request for Proposals has not been requested. O&M Carryover Balance at 8/31/03 of $175,000 as listed on page 5 of the FY 2005 Operating Budget of LAH -- we understand that the City would like a reimbursement of the full $175,000. The Authority will provide full reimbursement of $175,000 to the City upon written request from the City. City requests written verification for use of equipment at Lake Alan Henry - while the Authority maintains that the equipment at LAH is the property bought and owned by the City, please accept this letter as written verification for use of such equipment. Authority staff at LAH has and will continue to be accommodating to City staff on the scheduling and use of equipment. EXHIBIT 4600 Cobbs Drive • P.O. Box 7555 • Waco, Texas 76714-7555 254-761-3100 9 FAX 254-761-3215 Mr. Bruce Blalack August 12, 2004 Page 2 I trust this letter fully addresses the City's comments on the FY05 Operating Budget for Lake Alan Henry. Should you have any additional questions or require further clarification, please feel free to call our staff at LAH or me at (254) 761-3172. Sincerely, Kent S. Rindy Upper Basin Regional Manager KSR:rw Attachment cc: Scot Pate, Lake Alan Henry I I Resolution No. 2004-RO451 September 16, 2004 Item No. 53 RESOLUTION RESOLVED THAT the Board of Directors of Brazos. River Authority hereby makes the following determinations relative to the City of Lubbock for Lake Alan Henry. (1) The financial requirements for Fiscal Year 2005, are as shown on Attachment 1 hereto. 14-19