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08-29-11 Joint Meeting AgendaJOINT CITIES/COUNTY MEETING COLUMBIA FALLS, KALISPELL, WHITEFISH & FLATHEAD COUNTY AUGUST 29, 2011 - 7:00 P.M. KALISPELL CITY HALL COUNCIL CHAMBERS 201 FIRST AVENUE EAST CALL TO ORDER DISCUSSION ITEMS 911 Center Funding - Financial Audit and Report - Legal Review of the Organizational Structure and Oversight - Future Funding - Planning and Needs - Technology Update PUBLIC COMMENT ADJOURNMENT Reasonable accommodations will be made to enable individuals with disabilities to attend this meeting. Please notify the Kalispell City Clerk at 758-7756. Dear Board Member, Susan Nicosia (City of Columbia Falls Finance Director), Amy Robertson (City of Kalispell Finance Director), and Sandy Carlson (Flathead County Finance Director), met to review the financial expenditures relating to the 911 building and related CIP funds. The findings are as follows: ® The current cash balance in Fund 4026 is ($216,019.90) and Fund 4025 is $6,971.43. ® There was a $400,000 cash transfer from Fund 4025 to the operating fund (2850) in FY 09/10. There was no documentation that this was to be paid back. ® Fund 4025 paid for Big Mt Communication Site EQPT of $148,569. A grant award letter was received from the State (Homeland Security), however we found no evidence that the funds were ever requested or received. Flathead County is currently trying to contact the state to see if reimbursement is still available. ® Fund 2850 (911 operating Fund) paid for $12,873.97 of building charges. (Meter connect, street light, and CTA Architects.) ® The 911 building was over budget by $675,842.17. This was from cost overruns on Computer, Communications, and the Phone equipment. Our recommendations are as follows: ® The County should fund the negative balance of $216,019.90 in Fund 4026 and $12,873.97 owed to the operating fund (2850). This is a total transfer of $228,893.87. Recognizing that ownership of this building, equipment and components will revert to Flathead County in the case of dissolution per the Inter local Agreement. ® Should the grant funds be received for the Big Mt Communication Site EQPT, they should be applied to fund 4025 and used for future CIP purposes for the 911 center. ® Assume the $400,000 transfer to the operating fund from the CIP fund was not intended to be repaid or we need to set up a formal internal loan schedule to be paid back. There were a myriad of items contributing to the cost overruns including limited financial oversight on the project, inaccurate information on projected cash balances, numerous corrections in coding, and significant cost overrun in Communications, Computer and Phone equipment. The building, its components and equipment totaled $8.8M. We received $1.5M in grants/contributions, $6.1M bond funds and used up our original cash balance and protested taxes of $1.2M. Sincerely, Susan Nicosia , Finance Director, City of Columbia Falls Amy Robertson, Finance Director, City of Kalispell Sandy Carlson, Finance Director, Flathead County Funding Sources: Original Cash balance + protested tax interest 1,210,047.77 Remaining balance in 4025 (6,971.43) Bonds 6,100,000.00 Grants/Contributions/Donations: Homeland Security Grant 27,000.00 Enhance 911 Act 60,976.76 City of Kalispell-CADD Eqpt 732,701.00 Big MT Comm Site Grant 481,779.90 Grant A1010901-089 (Blacktail Radio upgrade) 24,900.00 Trade in for Mobile Ops Center 45,050.00 Transfer for capital outlay 51,000.00 Subtotal 1,423,407.66 Paid from other Funds: Paid from Fund 2300 (Sheriff) 2,216.03 Paid from Fund 2850 (911 operations) 18,868.67 Paid from 2903 (COPS Tech Prog Grant) 86,041.00 Paid from 1000 (County-GF-OES) 139,845.14 Paid from County FS Area 16,000.00 Subtotal 262,970.84 Negative cash balance-Pd by County 216,019.90 Investment Earnings 68,984.45 Total Funding Sources: 1 9,274,459.19 Building -General 2,551,409.03 Building-Paving/Sidewalk/curb/gutter 841,680.00 Building -Server & EQPT 149,676.00 Building -Fixtures & appliances 104,006.50 Building -Roof 93,673.00 Building-HVAC & Controls 420,306.00 Building -Generators 147,241.50 Building -Comm Tower EQPT 77,308.00 Building -Surveillance System 24,999.00 Land 425,443.00 CADD EQPT for FECC 915,876.00 Phone System 571,651.38 Building -Communication EQPT & Wiring setup 403,865.68 Mobile Emergency Operations Center 361,270.36 Computer Network 435,777.31 2009 Skidoo 8,810.00 2009 Skidoo 8,800.00 2006 Ford F650 Super Cab 35,500.00 Dispatch Consoles 135,456.00 Office Furniture 125,865.14 Drinking Water System 6,074.70 Big MT Comm Site 148,569.00 Blacktail Radio Upgrade 24,900.00 Xpass Config 16,216.03 Motorola Dispatch Consoles 481,779.90 Non -capitalized costs 358,305.66 8,874,459.19 Transfer cash to operations (2850) 400,000.00 Total Expenditures: _ 9,2?4,459.19 S:\Director\911—Center—Funding Sources_Expenditure Summary.xls Budget Summary: 8udgetBondProceeds 6,100000.00 68,984.45 7,855,362.95 9,274,459.19 Interest Budgeted costs Total spent Difference (over budget) How xvefunded difference: Cash from 402Gused (1,203,076.34) Ctyudoff negative cash balance (216,019.90) Total Funding for overage (1,419,096.24) Unbudgeted orover (undehcosts: Transfer tooperations (4K00000.00) Land, utilities & development fees (17,560.04) Construction Costs (382,78662) Contingency 495,750.00 Design Fees (CTA) (7,431.98) Communications (159,367.27) Phone System /100,674.62\ Furniture 47,531.73 Computer (198,132.98) Mobile Unit /30i926.88\ Water System /74.70\ [ADDEqpt (183175.00 KniscExptestng,conomnbsioninD bond, moving (128,993.81) Big MTComm Site (148560.00) Truck 8'2Skidoo /53110.00\ Tower expenses in201l (208748.10) Bond Difference from budget 65,312.16 Funding from 4U25,interest, transfer (net) 186087 Total unbudgeLedorover (under)costs (1,419,096.24) S:\Director\911_Center_FundingSnuroes_ExpendkuneSunomoary.xb Fund 4026 A. Land, Utilities & Development Fees Land Lease (DNRC) Kalispell Impact Fees (Water, Sewer, Storm, Fire, Police) Kalispell Road Impact Fees City of Kalispell Review & Permit Fees Latee Comer Fees (Water, Sewer) Late Comer Fees (Fire Flow) *163,822.25 not included tot Misc. Fees (Final Plat, Site Review, Etc.) Electric & Transformer Service Fees Gas Service Main Connection Fees Communication Connection Fees Subtotal Construction Costs Swank Enterprises Base Bid Alternat No 1 Alternate No 4 Funded by 4025 Funded by Fund 2850 Subtotal Contingent Funds Funded by Fund 2850 Project Contingency Subtotal Design Fees Pre Bond Schematic Design Phase Post Bond Construction Document & CA Phase Subtotal Furnishings, Fixtures & Equipment Communication: Equipment, Radio Equipment, Technology Funded by 2300 911 Building - Budget vs Actual Original Revised Expenditures Grants/Other (Over) Under Bu I Budget I Actual Fundin I Budget 425,443.00 425,443.00 425,443.00 41,286.44 41,286.44 41,286.45 33,094.63 33,094.63 58,094.38 1,945.77 1,945.77 1,982.05 5,000.00 5,000.00 32,457.00 32,457.00 32,693.00 15,000.00 15,000.00 27,288.00 15,000.00 15,000.00 569,226.84 569,226.84 586,786.88 - (17,560.04) 3,179,000.00 3,179,000.00 3,754,866.92 69,000.00 69,000.00 57,000.00 57,000.00 3,305,000.00 3,305,000.00 3,754,866.92 495,750.00 495,750.00 495,750.00 495,750.00 - 52,111.00 52,111.00 358,000.00 358,000.00 417,542.98 410,111.00 410,111.00 417,542.98 100,000.00 420,081.71 75,000.00 (53,531.10) (13,549.20) (67,080.30) 112,963.38 (1,000.00) (2,216.03) (7,431.98) CTA Comments S:\Director\911_Original_Budget.xls 8/29/2011 911 Building - Budget vs Actual Original Budget Revised Budget Expenditures Actual Grants/Other Funding (Over) Under Budget Comments Funded by 2850 (5,995.00) Funded by 2903 (3,657.67) Funded by 4025 (20,000.00) Donation by Fire Service (16,000.00) Funded by 1000 (26,845.74) 175,000.00 420,081.71 (75,714.44) (169,367.27) Phone System• Phone System 470,000.00 571,651.38 State 911 Grant (Positron) (60,000.00) (60,976.76) 410,000.00 571,651.38 (60,976.76) (100,674.62) Furniture: Bldg Furniture 120,000.00 125,865.14 Dispatch Furniture 135,000.00 135,456.00 Funded by 2850 675.53 Funded by 2903 (54,528.40) 255,000.00 261,321.14 (53,852.87) 47,531.73 Computer• Wireless 52,000.00 444,487.31 Nohbel 20,000.00 (27,000.00) Ryan Olson 15,000.00 Motorola Recorder (Unbudgeted) 142,000.00 Motorola Recorder (911 Board - 4025) (142,000.00) Swift Data Conversion 20,000.00 Funded by 2903 (27,854.93) Funded by 1000 (84,499.40) 107,000.00 444,487.31 (139,354.33) (198,132.98) New World 1st Year License Fee (Unbudgeted) 136,000.00 charged to 2850 Less New World 1st Year License Fee (COPS Grant?) (136,000.00) charged to 2850 Mobile Unit: Mobile PSAP 220,000.00 361,270.36 Funded by 4025 (39,293.48) Funded by 1000 (26,000.00) Less trade in value (45,050.00) 220,000.00 361,270.36 (110,343.48) (30,926.88) S:\Director\911_Original_Budget.xls 8/29/2011 Water System: Culligan System CADD EQPT: CADD EQPT Less Grant $ Subtotal Furnishings(14 offices, 1 large Conference, 4 small meetin Equipment (Communication, Video, Electronics, Etc.) Communication Infrastructure Subtotal Miscellaneous Expenses -Not capitalized Geotech Report Third Party Construction Testing (CMG) Third Party Systems Commissioning Legal/Bonding/Advertising Moving Expenses Funded by 4025 Funded by 1000 Subtotal :al Project Cost n Budgeted Items: Tower PBX Grant Permits & hookups not included in original estimate Expenses included in 4025 detail 911 Building - Budget vs Actual Original I Revised Expenditures Grants/Other (Over) under 90,000.00 970,000.00 1,210,000.00 fidget Actual Funding 6,000.00 6,074.70 915,876.00 (732,701.00) - 915,876.00 (732,701.00) (183,175.00) 1,173,000.00 120,607.56 3,800.00 3,800.00 1,100.00 20,800.00 20,800.00 25,010.00 35,000.00 35,000.00 56,000.00 18,000.00 18, 000.00 14,675.25 4,000.00 4,000.00 (4,299.00) (2,500.00) 81,600.00 81,600.00 217,392.81 (6,799.00) (128,993.81) 6,071,687.84 6,034,687.84 150,000.00 350,000.00 350,000.00 481,779.90 (481,779.90) Comments - Motorola 08/09 8,439,132.09 (1,728,602.08) (675,842.17) (117,123.58) 332,500.00 Protested Taxes 62,010.11 Interest Earnings 65,312.16 Difference in budget vs $6.1M (216.019.90) Cash Balance in 4026 S:\Director\911_Original_Budget.xls 8/29/2011 911 Building - Budget vs Actual Original Revised Expenditures Grants/Other Budget I Budget I Actual Funding FUND 4025 Revenues Expenditures Beginning Balance 545,047.77 Transfer from operating to CIP in 08/09 50,000.00 1/2 Protested Taxes 332,500.00 Truck-FY09/10 35,500.00 SkidDoo-FY09/10 8,800.00 SkidDoo-FY09/10 8,810.00 Big Mt Comm Site-FY08/09 148,569.00 Blacktail Radio upgrade-FY08/09 24,900.00 24,900.00 Building Expenses 117,123.58 Tower expenses in 2011 208,748.10 Interest Earnings 6,974.34 Transfer to 2850 operating 400,000.00 959,422.11 952,450.68 Cash Balance 6,971.43 Total Expenditures 9,274,459.19 Under Comments S:\Director\911_Origin al_Budget.xls 8/29/2011 911 Building Summary 4025 Revenue 08/09 09/10 10/11 4025 Expenditures 08/09 09/10 10/11 4025 Transfer out (expense) 08/09 09/10 10/11 ITotal 2300 Expenditures 2850 expenditures 2903 Expenditures 1000 Expenditures 08/09 09/10 09/10 09/10 Transfer Beginning Balance (545,047.77) (545,047.77) Transfer? (50,000.00) (50,000.00) Protested Taxes (332,500.00) _ (332,500.00) Bond Proceeds _ Homeland Sec Grant _ Enhance 911 Act Funding from Fire Service - Cash Transfer to 2850 400,000.00 400,000.00 _ Contribution from City of Kalispell - Grant A1010901-089 (24,900.00) (24,900.00) Big Mt Comm Site Grant _ Trade in for old Mobile EOC Grant? _ Expenses not capitalized 208,748.10 208,748.10 911 Building & Components - 13,549.20 911 Communications 53,531.10 53,531.10 5,995.00 3,657.67 26,845.74 911 Computer 20,000.00 20,000.00 27,854.93 84,499.40 911 Phone - 911 Mobile EOC 39,293.48 39,293.48 26,000.00 911 Land __ 911 Office Furniture (675.53) 911 CADD EQPT _ _ _ 911 Water Cooler _ Big Mt Communication Site 148,569.00 148,569.00 _ Blacktail Radio Upgrade 24,900.00 24,900.00 xPass Config _ - 2,216.03 _ _ Motorola -Dispatch Consoles _ Truck 35,500.00 35,500.00 Ski Doo 8,810.00 8,810.00 Ski Doo 8,800.00 8,800.00 Dispatch Consoles 54,528.40 1/2 Dodge Durango 2,500.00 2,500.00 2,500.00 Taller 1,799.00 1,799.00 Investment Earnings (5,572.50) (1,401.84) (6,974.34) (619,947.77) (338,072.50) (1,401.84) 173,469.00 170,233.58 208,748.10 400,000.00 (6,971.43) 2,216.03 18,868.67 86,041.00 139,845.14 911 Building Summary 4026 Revenue 08/09 09/10 10/11 4026 Expenditures 07/08 08/09 09/10 10/11 4026 Transfer out (expense) 08/09 09/10 10/11 Total 545,047.77 5.45,047.77 � Total Revenues TotalExpenditur Transfer Beginning Balance Transfer? -- _ (50,000.00) 50,000.00 -- --T--- (50,000.00) Transfer? Protested Taxes 332,500.00 332,500.00 Bond Proceeds (6,100,000.00) (6,100,000.00) (6,100,000.00) Bond Proceeds. Homeland Sec Grant (27,000.00) (27,000.00) (27,000.00) Homeland Sec G Enhance 911 Act (60,976.76) (60,976.76) (60,976.76) Enhance 911 Act Funding from Fire Service (16,000.00) (16,000.00) (16,000.00) Donation from F Cash Transfer to 2850 400,000.00 Contribution from City of Kalispell (732,701.00) (732,701.00) (732,701.00) Contribution Grant A1010901-089 - (24,900.00) Big Mt Comm Site Grant (481,779.90) _ (481,779.90) (481,779.90) Grant Trade in for old Mobile EOC (45,050.00) (45,050.00) (45,050.00) Contribution Grant? (1,000.00) (1,000.00) (1,000.00) Expenses not capitalized 23,590.00 91,134.51 34,833.05 _ 149,557.56 358,305.66 911 Building & Components 1,163,357.94 3,233,391.89 4,396,749.83 4,410,299.03 911 Communications 313,836.17 313,836.17 403,865.68 911 Computer 303,422.98 303,422.98 435,777.31 911 Phone 571,651.38 571,651.38 571,651.38 911 Mobile EOC 295,976.88 295,976.88 361,270.36 911 Land 425,443.00 - 425,443.00 425,443.00 911 Office Furniture _ 126,540.67 126,540.67 125,865.14 _ 911 CADD EQPT 915,876.00 _ 915,876.00 915,876.00 _ 911 Water Cooler 6,074.70 _ _ 6,074.70 6,074.70 Big Mt Communication Site 148,569.00 Blacktail Radio Upgrade - 24,900.00 xPass Config 14,000.00 _ 14,000.00 16,216.03 Motorola -Dispatch Consoles 481,779.90 481,779.90 481,779.90 — Truck 35,500.00 Ski Doo 8,810.00 Ski Doo _ 8,800.00 Dispatch Consoles _ 80,927.60 80,927.60 135,456.00 1/2 Dodge Durango (5,000.00) (5,000.00) - Tailer _ _ _ (1,799.00) _ (1,799.00) Investment Earnings (23,426.11) (40,388.97) 1,804.97 (62,010.11) (68,984.45) (556,206.01) (7,006,116.73) (14,195.03) 2,084,580.84 5,932,033.78 34,833.05 595,047.77 332,500.00 1,426,067.67 (7,608,392.11) 9,274,459.19 Beginning Cash Balance 1,210,047.77 Net dill between rev/exp (1,666,067.08) Cash Difference (456,019.31) Funded by other funds 246,970.84 — — (209,048.47) — Cash Balance 4025 6,971.43 Cash Balance 4026 _ (216,019.90) (209,048.47) Difference 1 _ (0.00)