SUBJECT: Amending Ordinance No. 2007-1196 to authorize the de-appropriation and appropriation of funds to the Utility Functions and Services Allocation Agreement between the City of Houston and Harris County Municipal Utility District No. 450.
RECOMMENDATION: Approve an amendment to Ordinance 2007-1196 to de-appropriate $650,000.00 from S-000802-0052-4 and appropriate $650,000.00 into R-000802-0052-4 that was previously appropriated to the Utility Functions and Services Allocation Agreement with Harris County Municipal Utility District No. 450.
SPECIFIC EXPLANATION: Harris County Municipal Utility District No. 450 is an existing in-city municipal utility district that was created in 2007. City Council approved a Utility Functions and Services Allocation Agreement (the “Agreement”) and authorized the appropriation of funds by Ordinance 2007-1196 in the amount of $6,240,809.00. Per the Agreement, the District would construct approximately $24,000,000.00 of water, wastewater, and storm drainage improvements and a wastewater treatment plant and convey them to the City as they were completed. In turn, the City agreed to participate in the cost of the improvements in an amount not to exceed $6,240,809.00. Funds were appropriated in the amount of $4,500,000.00 from the Water and Sewer System Consolidated Construction Fund, $2,250,000.00 for water and sewer respectively, and $1,740,809.00 from the Drainage Improvement Commercial Paper Series F Fund for drainage. To date, the district has constructed approximately $21,726,280.00 of reimbursable improvements, for which the city has cost participated in the amount of $4,938,399.70. The city's cost participation includes construction, engineering, materials testing, and land for the Waters Edge subdivision, sections 1-7, 10-15, and 17-19.
On July 31, 2018, the district submitted its final payment request to the City. Because there are not sufficient funds in R-000802-0052-4 to make the wastewater payment in full, and there are sufficient funds in S-000802-0052-4 to cover both the water and wastewater reimbursement amount, it is requested that $650,000.00 be de-appropriated from S-000802-0052-4 and appropriated to R-000802-0052-4.
Houston Public Works recommends the amendment to Ordinance 2007-1196 be approved.
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-000802-0052-4 and S-000802-0052-4