5/5/03

SUBJECT: FINAL READING OF ORDINANCE 2003-O-101

Amending the City of Laredo FY 2002-2003 Colonias Project and Water Fund Annual Budget by appropriating revenues and expenditures in the amount of $281,205 from the Water Fund and appropriating the transfer in and expenditure in the amount of $281,205 for the Colonias Project Fund.

INITIATED BY:

Larry Dovalina, City Manager

STAFF SOURCE:

Heberto L. Ramirez, Utilities Director

PREVIOUS COUNCIL ACTION:

Contract was awarded on October 21, 2002.

BACKGROUND:

The Colonias SH-359 Work Order #4 Water Transmission Line Extension Project originally consisted of extending a 12” diameter water line along SH-359 for approximately seven (7) miles from the City landfill to the Pueblo Nuevo Colonia. Due to the potential for future development in the area, the development community requested to have the line over-sized from 12” to 16” in diameter allowing them to use the increased capacity for their land. The developers have committed to pay the City for all over-sizing costs.

On October 21, 2002, the City of Laredo awarded a construction contract to Jimmy Closner & Sons Construction Co., Inc. in the amount of $1,208,725 for the construction of a 16” diameter water line which included the cost of $281,204.90 for the over-sizing.

The Texas Water Development Board (TWDB) approved the over-sizing contract and has agreed to fund the difference of $927,520.10 to cover the total cost of the project. However, the TWDB has requested that the over-sizing amount to be paid prior to any EDAP funding is used from the initial invoice. The first invoice received for this project is for $472,437.31 and has been distributed as follows:

Name of Account Amount

EDAP Water Loan $191,232.41

City of Laredo $281,204.90

Total Monthly Estimate No. 1 $472,437.31

FINANCIAL IMPACT:

Waterworks:

Fees & Reimbursements 557-0000-373.30-00 $741,000 $281,205 $281,205

Trans. Out: Colonias 557-4110-597.04-51 $741,000 $281,205 $1,022,205

Colonias:

Trans. In: Water Fund 451-0000-393.05-57 $753,400 $281,205 $1,037,605

Imprv. Other than Bldg. 451-8310-535.93-01 $11,811,777 $281,205 $12,092,982

COMMITTEE RECOMMENDATION:

STAFF RECOMMENDATION:

Conduct Public Hearing and Introductory Ordinance.

ORDINANCE 2003-O-101

Amending the City of Laredo FY2002-2003 Colonias Project and Water Fund Annual Budget by appropriating revenues and expenditures in the amount of $281,205 from the Water Fund and appropriating the transfer in and expenditure in the amount of $281,205 for the Colonias Project Fund.

WHEREAS, the Colonias SH-359 Work Order #4 Water Transmission Line Extension Project originally consisted of extending a 12” diameter water line along SH-359 for approximately seven (7) miles from the City landfill to the Pueblo Nuevo Colonia. Due to the potential for future development in the area, the development community requested to have the line over-sized from 12” to 16” in diameter allowing them to use the increased capacity for their land. The developers have committed to pay the City for all over-sizing costs, and;

WHEREAS, on October 21, 2002, the City of Laredo awarded a construction contract to Jimmy Closner & Sons Construction Co., Inc. in the amount of $1,208,725 for the construction of a 16” diameter water line which included the cost of $281,204.90 for the over-sizing, and;

WHEREAS, the Texas Water Development Board (TWDB) approved the over-sizing contract and has agreed to fund the difference of $927,520.10 to cover the total cost of the project. However, the TWDB has requested that the over-sizing amount to be paid prior to any EDAP funding is used from the initial invoice. The first invoice received for this project is for $472,437.31 and has been distributed as follows:

Name of Account Amount

EDAP Water Loan $191,232.41

City of Laredo $281,204.90

Total Monthly Estimate No. 1 $472,437.31

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

Section 1:

Fees & Reimbursements 557-0000-373.30-00 $741,000 $281,205 $281,205

Trans. Out: Colonias 557-4110-597.04-51 $741,000 $281,205 $1,022,205

Colonias:

Trans. In: Water Fund 451-0000-393.05-57 $753,400 $281,205 $1,037,605

Imprv. Other than Bldg. 451-8310-535.93-01 $11,811,777 $281,205 $12,092,982

Section 2: This Ordinance shall become effective upon passage thereof.

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE_________ DAY OF _____________________, 2003.

______________________

ELIZABETH G. FLORES

MAYOR

ATTEST:

_______________________

GUSTAVO GUEVARA, JR.,

CITY SECRETARY

APPROVED AS TO FORM:

_______________________

JAIME L. FLORES,

CITY ATTORNEY