The proposed budget amendment is necessary to provide final payment to Utility Services Company, Inc. (USCI) for the Water Tower Renovation project.  The budget transfer will appropriate FY21 funding for FY20 and FY21 carrier contributions to the renovation work.  It recognizes   revenue received from cellular carriers to reimburse for additional work required to install equipment back on water tower after renovation project was completed.  The additional work was not included in the original budget for the CIP project.  Revenue of $79,784 was earned and recorded in FY20 and will need to be taken out of reserves.  YTD in FY21 we have received $46,206 in revenue from carriers, and a $12,076 payment from USCI for the Glotel tower removal.   We expect to receive an additional $98,845 from AT&T and Sprint.  This budget adjustment is needed so the Town can process payment due to Utility Service Co Inc.

The Water Tower Painting and Renovation began in Spring 2018, with the removal of the cellular antennas from the water tower.  During the painting and renovation, a structural analysis was necessary because of new antennas proposed as well as the corral on the top of the water tower, which add both weight and wind load to the water tower.  The structural analysis showed that the water tower foundation was sufficient for the filled water tower, but that the wind loading due to the antennas would cause an uplift and foundation failure. 

This work was not anticipated in the original Water Tower Renovation Project budget. 

The necessary modifications were designed, and a Contractor hired to do the foundation modification work.  Pro rata shares of the cost were calculated based on the structural analysis.  One carrier chose to pay the Contractor directly; the others requested the Town to handle the contract, and provided reimbursement.  The cost for the modifications was paid using the Water Tower Renovation Capital Project funding.   Carriers also reimbursed the Town for engineering costs incurred by the Town due to the cellular antennas.  The amounts paid by the carriers to the Town were shown in the Water Fund as miscellaneous income.  This budget amendment moves those contributions from the miscellaneous income to the Water Tower Renovation capital project.    We expect carrier contributions from AT&T for the corral, and from Sprint for the corral, foundation modifications and engineering costs, which will offset the amount coming out of reserves.  This budget adjustment is needed so sufficient funds are available in the capital project budget to process payment to Utility Services Company, Inc./Suez. 

This budget amendment transfers $236,911 to the Water Tank Renovation capital project budget.  100% of this amount has, or will be, collected from the cellular carriers.  In FY20, $79,784 was paid to the Town by the carriers.   For this budget amendment, this amount appears as a transfer from Reserves.  In FY21, to date we have received $46,206 from the carriers, $12,076 from USCI.  We expect to receive an additional $98,845 from AT&T and Sprint.

“I move that Purcellville Town Council approve BA21-036 in the amount of $236,911 to appropriate funding for both FY20 and FY21 Carrier and USCI Contributions,  to Water Tank Renovation.”