SUBJECT: Ordinance to appropriate $3,786,931.00 from the Water and Sewer System Consolidated Construction Fund 8500 and authorize the transfer of $3,786,931.00 to the Combined Utility System General Purpose Fund 8305 to reimburse for payments paid to Harris County Municipal Utility District No. 499 out of previously appropriated funds approved by Ordinance No. 2009-88 passed on 02/11/2009.
RECOMMENDATION: Approve an ordinance to appropriate $3,786,931.00 from the Water and Sewer System Consolidated Construction Fund 8500 and authorize the transfer of $3,786,931.00 to the Combined Utility System General Purpose Fund 8305 to reimburse for payments paid to Harris County Municipal Utility District No. 499 out of previously appropriated funds approved by Ordinance No. 2009-88 passed on 02/11/2009.
SPECIFIC EXPLANATION:
Harris County Municipal Utility District No. 499 (the “District”) was created through the Texas Commission on Environmental Quality (“TCEQ”) in 2007. The District consists of 298.8 acres within Harris County and is located in the vicinity of West Lake Houston Parkway and Atascocita Road and is along the west side of Lake Houston. The District is entirely within the corporate limits of the City.
On February 11, 2009, City Council adopted Ordinance No. 2009-88 approving a Utility Functions and Services Allocation Agreement (the “Agreement”) whereby the District would construct approximately $26,929,273 of water, wastewater, and storm drainage improvements and convey them to the City as they were completed, and the City would participate in the costs of the improvements in the amount of $6,255,917. Ordinance No. 2009-88 appropriated $6,255,917 from the Combined Utility System General Purpose Fund for the Agreement, with the intent that the Combined Utility System General Purpose Fund be reimbursed with bond proceeds from the Water and Sewer System Consolidated Construction Fund.
On July 12, 2017, the District submitted its first payment request to the City in the amount of $1,977,993, which the City paid from the Combined Utility System General Purpose Fund. The District will submit a second payment request to the City in the amount of $1,808,938 before June 30, 2018. To reimburse the Combined Utility System General Purpose Fund for said payments as contemplated in Ordinance No. 2009-88, Houston Public Works requests that City Council authorize the appropriation and transfer of $3,786,931.00 from the Water and Sewer System Consolidated Construction Fund to the Combined Utility System General Purpose Fund.
FISCAL NOTE: No significant Fiscal Operating impact is anticipated as a result of this project.
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Carol Ellinger Haddock, P.E., Director
Houston Public Works
WBS Numbers R-000800-0116-4 and S-00800-0116-4