ADMINISTRATION - Joe Huss, Finance Director
Title
AUTHORIZE 2017 BUDGET AMENDMENT FOR ADDITIONAL WATER TREATMENT CHEMICALS, AND AMEND CHEMICAL CONTRACTS IN WATER UTILITY FUND
Background
In December, the City Council authorized contracts with DPC, Inc. and Hawkins Chemical to provide the chemicals (chlorine, fluoride, etc.) needed for water production. The initial approved contract amounts totaled $101,700. The contract amounts were subsequently amended by motion on July 13, 2017, increasing authorization to $141,700. The total expense authorization did not exceed the authorized budget of $153,000.
In June of this year, it became necessary to add sulfuric acid to WTP #1 in order to achieve correct PH balance. This was not anticipated prior to the beginning of the year, and was therefore not budgeted. Staff is requesting Council authorization to increase, by an additional $44,000, the contract with Hawkins Chemical. In order to facilitate this added expense, staff is requesting an amendment of $33,000 to the 2017 Water Fund budget for chemicals.
Recommendation
By motion, approve the following resolution authorizing 1) an amendment to the 2017 Water Fund Budget, increasing chemical expenses by $33,000; and 2) authorizing a $44,000 increase to the contract with Hawkins Chemical.
Body
WHEREAS, Sound budgeting principles promote appropriating necessary funds required to accomplish approve objectives; and
WHEREAS, Sound budgeting principles also promote providing for contingencies and unforeseen emergencies so as to not prevent objectives from being met; and
WHEREAS, Appropriations were made in 2017 sufficient for anticipated chemical use needs in the Water Fund; and
WHEREAS, Proper operation of the water system, specifically Water Treatment Plant #1, necessitates the additional use of treatment chemicals; and
WHEREAS, Sufficient contingency funds are held in reserve to accommodate necessary and expedient budget amendments.
NOW, THEREFORE, BE IT RESOLVED, that the Blaine City Council amends the 2017 Water Fund Budget and authorizes the use of contingency reserves to fund additional chemicals purchases in the following account:
Water Fund, Water Source and Storage, Chemicals 601.50.530.537.5510-4208, in the amount of $33,000; and
BE IT FURTHER RESOLVED, that the Mayor and City Manager are authorized to add $44,000 in total to the contract with Hawkins Chemical.
PASSED by the City Council of the City of Blaine this 21st day of September, 2017.