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Home My WebLink AboutPublic Works Water and Wastewater Chemicals FY23 Budget Amendment Wa12023 4:49PM City of Meridian FY2023 Budget Amendment Form Personnel Costs Full Time Equivalent(FTE): Fund# Dept.# G/L# Proj.# G/L#Description Total Ey 60 3430/3510 41200 0 Wages s�1 60 3430/3510 41206 0 PT/Seasonal Wages 60 3430/3510 41210 0 Overtime please only complete the fields 60 3430/3510 41304 0 Uniform Allowance highlighted in Orange. 60 3430/3510 42021 0 FICA $ Amendment Details 60 3430/3510 42022 0 1 PERS1 I $ Title: FY23 Water&Wastewater Chemicals 60 1 3430/3510 42023 0 Worker's Comp I $ - Department Name: Public Works 60 1 3430/3510 42W5 0 Employee Insurance $ Presenting Department Name: Public Works Total Personnel Costs $ - Department#: 3430/3510 Operating Expenditures Primary Funding Source: 60 Fund# Dept.# GO Proj.# G/L#Description ❑ne-Time on-Going Total CIP#: 60 3430 52015 0 Chemicals $ 163,000 $ 163,000 Project#: 6D 3510 52015 0 Chemicals $ 204,700 $ 204,700 60 0 0 $ - Is this for an Emergency? ❑ Yes No 60 0 0 $ New level of Service? ❑ Yes No 60 0 0 $ 60 1 0 0 $ Clerks Office Stamp 60 0 0 $ 60 0 0 $ 6D ❑ 0 $ 60 a 0 $ 5o 0 ❑ $ 60 ❑ 0 S 60 0 1 0 1 1 $ - Date of Council Approval 3-28-2023 Total Operating Expenditures $ 367,700 $ $ 367,700 Capital Outlay Fund# Dept.# G/L# Proj.# G/L#Description Total Acknowledgement Date 60 0 0 Ir Z� 60 ❑ 0 I 60 0 0 Department Director 60 0 0 REVIEWED 60 0 0 By Todd Lavoie at 3:01 pm,Mar 14,2023 BP 3/9/23 60 1 ❑ 1 1 D 1 1 Chief Financial Officer Total Capital Outlay $ Revenue/Donations Approved Joe Borton 8.36 am 3/15/2023 Fund# Dept.# G/L# Proj.# G/L#Description Total Co ,zc,1L[aison / — 60 ❑ ❑ 1L% 60 ❑ 0 3-15-23 60 0 0 Mayor Total Revenue/Donations $ Total Amendment Request $ 367,700 City of Meridian FY2022 Budget Amendment Form S;tAdmin BUBO pslBusOpslBudgetRateslBudget Prep Rec_10 yearslBudget'231AmendmentMChemicaIs-Water-VTMChemical Budget Amendment-W-WW-3-7-23-CM SIMD23 4:48PM City of Meridian FY2023 Budget Amendment Form Total Amendment Cost-Lifetime Prior Year(s) Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Department Name: Public Works Funding 2023 2024 2025 2026 2027 Title: FY23 Water&Wastewater Chemicals Personnel $ - $ - $ - S - $ lnct—es iot-for Sv b—itting lArdgr t Amend m enl_c: Operating $ 367,700 $ $ $ $ >•Department WIII send Amendment with Directors signature to Finance{Budget Analyst}for review Capital ] Finance well send Amendment to Council Liaison for signature Total $ $ 367,700 $ S S $ 7 Council tialsan will send signed Amendment to Mayor Total Estimated Project Cost: $ 367,700 y Mayor wl ll send signed Amendment to Finance{Budget Analyst] Evaluation Questions )-Finance Ieudset Analyst]will send approved copy of Amendment to Department Please answer all Evaluation Questions using the financial data referenced above. >Department Ml add copy of Amendment to council Agenda using Novus Agenda Manager 1. Describe what is being requested? The use of chemicals in both the Water and Wastewater utilities is critical to ensure protection of public health and the environment. Additional operational budget is needed for both departments to cover the anticipated expense of chemicals for the balance of the FY23 budget year. Due to chemical price increases and added chemical requirements it is clear that the FY23 budgets will not fully cover the chemical needs of the utilities. 2. Why was_this budget request not submitted during the current fiscal year budget cycle? II As budgets are developed over a year in advance,and chemical price increases are not necessarily known at that time,it can be difficult to estimate exact budgetary figures. Additionally,until Individual water treatment filters and wastewater process units are run for several years,the exact chemical requirements can be difficult to predict. 3. What is the explanation for not submltting this budget request during the next fiscal year budget cycle? The need for additional chemicals/chemical spending cannot be delayed. i 4.Describe the proposed method of funding? If funding is split between Funds(i.e..General,Enterprise,Grant),please include the percentage split. List the amounts and sources of anticipated additional revenue that will result from approval of this request. r Enterprise Fund S.Does this request align with the Department/City's strategic plan? If not,please explain how this request was not included in the Department/City strategic plan? Yes 6. Does this request require resources to be provided by other departments? If yes,please describe the necessary resources to be provided by other departments. Yes-Procurement will need to supply change orders for chemical spending. 7.Does this Amendment include any needed E ui pment or Software that will utilize the Ci 's network? Yes or No &Is the amendment going to result in the disposal of an asset? Yes or No) 9.Any additional comments? Total Amendment Request $ 367,700 Every effort should be made to avoid reopening the budget for an amendment. Departments will need to provide back up and appear before the City Council to justify budget amendments. Budget amendments are intendedfor emergency or mandatory changes to the original balanced budget. Changes to the original balanced budget may cause a funding shortfall. City of Meridian FY2022 B u dget A in enciment Form S:lAd min Bu&0pslBus0psOudgetRateslBudget Prep Rec 10 yearslBudget'231Am end mentslChemicals-Water-WWIChemicaI Budget Amendment-W-WW-3-7-23-CM Mayor Robert Simison E IDIAN*-� City Council Members Joe Borton Luke Cavener Public Works W U A H L Brad Hoaglun John Overton Department Jessica Perreault Liz Strader 000 TO: Mayor Robert Simison Members of the City Council FROM: Laurelei McVey, PW Director DATE: March 7, 2023 SUBJECT: FY23 BUDGET AMENDMENT FOR WATER AND WASTEWATER CHEMICALS. REQUESTED COUNCIL DATE: 3/21/2023 I. RECOMMENDED ACTION A. Move to: 1. Approve a Budget Amendment in the amount of $367,700 for water and wastewater chemicals. 2. Authorize the Mayor to sign the amendment. II. DEPARTMENT CONTACT PERSONS Laurelei McVey, Director of Public Works 208-985-1259 III. DESCRIPTION A. Backgroun The use of chemicals in both the water and wastewater utilities is critical to ensure protection of public health and the environment. Chlorine is an essential chemical in the drinking water system that is used for disinfection and is necessary for the operation of treatment filters that remove brown water. The wastewater utility uses a variety of chemicals to treat the wastewater to meet strict regulatory permit limits. Page I of 3 Supply chain issues and inflationary pressures have dramatically changed the chemical industry over the past several years. While the City still competitively bids these chemicals, in many cases prices have doubled over the past few years. Additionally, with continued growth (additional flow) and installation of additional treatment filters (water) and treatment processes to meet permit limits (wastewater), the overall volume of chemicals used has also increased. Fiscal Year Price Per Pound or Gallon Chlorine Ferric Polymer FY20 $1.69 $0.17 $1.17 FY21 - $0.18 - FY22 - $0.28 $1.91 FY23 $3.59 $0.42 $2.43 % Increase(FY20-FY23) 112% 147% 108% Water Chemical Budget/Use Fiscal Year Budget Actual Overage Needed FY20 $167,000 $204,313 $37,313 FY21 $199,350 $232,637 $33,287 FY22 $265,000 $332,639 $67,639 FY23 $272,960 $435,960 $163,000 (anticipated) (anticipated) FY24 $429,418 (planned) Wastewater Chemical Budget/Use Fiscal Year Budget Actual Overage Needed FY20 $523,000 $492,666 - FY21 $523,000 $539,997 $16,997 FY22 $530,000 $743,918 $213,918 FY23 $611,535 $816,235 $204,700 (anticipated) (anticipated) FY24 $852,388 (planned) B. Reason for Amendment Because budgets are developed over a year in advance, and chemical price increases are not necessarily known at that time,it can be difficult to estimate exact budgetary figures. Additionally, until individual water treatment filters and wastewater process units are run for several years,the exact chemical requirements can be difficult to predict. Page 2 of 3 C. Alternatives These chemicals are required to protect both public health and the environment as well as meeting regulatory requirements. Not using these chemicals is not a viable option. The Department intends to continue to work with chemical vendors to competitively rebid contracts where appropriate to ensure the City is receiving the best possible pricing. The Department also continuously works to ensure treatment processes are optimized to use chemicals as efficiently and judiciously as possible. IV. IMPACT The enterprise fund has sufficient funding to cover this overage. GL GL Name Overspend Amount 60-3430-52015 Water- Chemicals $163,000 60-3510-52015 Wastewater-Chemicals $204,700 $367,700 Approved for Council Agenda: 1 YI Date 3/7/23 Page 3 of 3