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Home My WebLink About2008-02-19; City Council; 19322; Appropriation of Funds for Out-of-Cycle EquipmentX^*"*<&\^^^^"tj?^^S^\ CITY OF CARLSBAD - AGENDA BILL ^ffinff^ AB# 19>322 MTG. 2/19/08 DEPT. PW/GS APPROPRIATION OF ADDITIONAL FUNDS FOR OUT-OF-CYCLE EQUIPMENT REPLACEMENT AND TO ESTABLISH A CONTINGENCY FOR FUTURE OUT-OF-CYCLE EQUIPMENT REPLACEMENT NEEDS DEPT. HEAD< y* CITY ATTY. CITY MGR. 4 A//y ^^U^ RECOMMENDED ACTION: Adopt Resolution No. 2008-045 appropriating additional funds totaling $131,182 to the FY07-08 Vehicle Replacement Budget for out-of-cycle replacement of a police patrol unit, refurbishment of a police patrol boat, replacement of a riding lawn mower, and to establish a contingency for future unbudgeted replacement needs. ITEM EXPLANATION: During FY07-08, three pieces of equjpment have experienced unanticipated failures and are in need of out-of-cycle replacement or refurbishment. A police patrol unit was involved in an accident and is not repairable. The motor on the police patrol boat has failed and must be replaced; and the mower deck on a riding lawn mower has failed and is not repairable. Annually, the Fleet Operations Superintendent prepares a list of vehicles and equipment that are anticipated to meet or exceed the replacement criteria as stipulated in Administrative Order #3. This list is submitted to City Council for approval and appropriation of funds. During the year, unanticipated equipment failures occur. In recent years, examples have included: • Equipment experiencing unanticipated catastrophic mechanical failures; • Accidents which render the equipment un-repairable; • Equipment being stolen; and • Equipment requiring extensive modifications to meet regulatory requirements. Additionally, there are some occasions when, despite the best estimates of the Fleet Operations Superintendent, the cost of equipment exceeds the projected cost in the Fleet Replacement Budget. The Fleet Replacement Budget does not have any contingent appropriations to fund these items. When a need to perform out-of-cycle replacement occurs, a financial analysis of the funds paid into the Vehicle Replacement fund by the equipment will be performed. If the individual department has paid the total cost of replacement, the Vehicle Replacement fund will fund the entire cost to replace the equipment. If the equipment replacement has not been fully-paid, the remaining cost will be the responsibility of individual department requesting the out-of-cycle replacement. Staff recommends that City Council, in addition to allocating the funds for these specific equipment replacements, appropriate funds totaling $50,000 for future contingency needs. Expenditure of these contingent funds would require that a Capital Outlay request be processed and approved at the appropriate level. Any expenditure over the signature limit of the City Manager would be referred to City Council for approval. Three pieces of equipment are in need of out-of-cycle replacement or refurbishment, and funds have not been appropriated in the FY07-08 Vehicle Replacement Budget to replace or refurbish these items. A police patrol unit was involved in an accident and must be replaced. The estimated cost to replace and outfit a police patrol unit is $38,000. This unit has paid $23,200 into replacement. The replacement fund should cover this portion of the cost, with the Police Department providing the remainder of the cost from their current budget. FOR CITY CLERKS USE ONLY COUNCIL ACTION:APPROVED DENIED CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER - SEE MINUTES D Page 2 The motor on the police patrol boat has experienced a mechanical failure and cannot be economically repaired. In addition, the patrol boat's 2-cycle engine is not legal to operate in the State of California due to air and water pollution issues. The police patrol boat has paid sufficient funds into the budget to replace the motor with a 4-cycle motor and to refurbish the boat and trailer but, due to escalating cost for watercraft, the equipment has not paid sufficient funds to replace the patrol boat and trailer in its entirety. Lester and Lester Marine Survey, Inc., performed a marine survey on the patrol boat and trailer. The survey provided recommendations on repairs refurbishments needed to meet minimum safety and legal standards. In addition to the survey recommendations, minor refurbishment and painting will be required to ensure that the equipment remains in serviceable condition for the next several years. The Fleet Superintendent met with the Police Department fleet liaison discussed the report and consensus was reached by both parties that it would be more cost-effective to refurbish the patrol boat rather than to replace it at this time. Refurbishing the patrol boat and trailer would extend the useful life of the equipment for several years and a replacement could be deferred. This unit has paid $34,142 into the replacement fund to date, which will be sufficient to fund the replacement of the motor and refurbishment of the boat and trailer. The total cost to replace the motor is $11,500. Staff estimates the current replacement paid is estimated to be sufficient to fully-fund the refurbishing of the equipment. Any appropriated funds not utilized for the refurbishment will be carried forward or returned to the Vehicle Replacement fund for future replacement of the patrol boat and trailer. A riding lawn mower has a damaged mower deck. This damage has been caused by a number of factors including wear and tear and a minor collision during operation. This mower deck is not repairable, the equipment is obsolete and another deck is not available, and the equipment is unsafe to operate in its current condition. The cost to replace this mower is $23,840. This equipment has fully-paid this replacement cost into the Vehicle Replacement fund. Staff is requesting a total appropriation of $131,182, consisting of $81,182 for out-of-cycle equipment replacement and refurbishment, and $50,000 for contingency funding. All three units have paid funds into the Vehicle Replacement fund to fully-fund their portion of replacement in this request. The Police Department has contingency funds appropriated to pay the remainder of the cost to replace the patrol unit. ENVIRONMENTAL IMPACT: Procurement of equipment is not a project and is, therefore, exempt from the environmental review process under provisions of the California Environmental Quality Act (CEQA). FISCAL IMPACT: Staff requests that City Council approve additional appropriations totaling $131,182 to the FY07-08 Fleet Replacement budget to replace or refurbish these three items and to establish a contingency for future unforeseen vehicle replacement funding needs for the remainder of this fiscal year. Sufficient funds are available in the Vehicle Replacement fund to fully-fund the appropriation request. EXHIBITS: 1. Resolution No. 2008-045 appropriating additional funds totaling $131,182 to the FY07-08 Vehicle Replacement Budget for out-of-cycle replacement of a police patrol unit, refurbishment of a police patrol boat, replacement of a riding lawn mower, and to establish a contingency for future unbudgeted replacement needs. DEPARTMENT CONTACT: Dale A. Schuck, (760) 802-5788, dschu@ci.carlsbad.ca.us 1 RESOLUTION NO. 2008-045 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 3 CARLSBAD, APPROPRIATING ADDITIONAL FUNDS TO THE FY07-08 VEHICLE REPLACEMENT BUDGET TO REPLACE A POLICE PATROL 4 UNIT, REFURBISH A POLICE PATROL BOAT AND TRAILER, REPLACE A RIDING LAWN MOWER, AND ESTABLISH A CONTINGENCY FOR FUTURE OUT-OF-CYLE EQUIPMENT REPLACEMENT NEEDS. c0 WHEREAS, the City of Carlsbad has experienced the need to perform out-of-cycle, 7 unanticipated vehicle and equipment replacement; and WHEREAS, a police patrol unit needs replacement due to a vehicle accident; and8 WHEREAS, a police patrol boat need to be replaced and staff has determined that refurbishing the boat is economically advantageous and feasible; and 10 WHEREAS, a riding lawn mower is damaged, cannot be repaired and must be replaced; and WHEREAS, each item has paid sufficient funds into vehicle replacement to fully-fund the 12 requested appropriation and sufficient funds are available in the Vehicle Replacement fund to 13 fully-fund the appropriation; and WHEREAS, other unforeseen equipment replacement needs are expected during the 14 current fiscal year; and 15 WHEREAS, staff recommends that City Council approve an additional allocation in the amount of $50,000 for contingency during the current fiscal year; and WHEREAS, staff recommends that City Council appropriate additional funds in the amount of $81,182 to the FY07-08 Vehicle Replacement Budget to fully-fund these replacements 18 and refurbishments and staff recommends that City Council also appropriate additional funds in the amount of $50,000 to the FY07-08 Vehicle Replacement Budget to fund future unforeseeni y funding needs for replacement, refurbishment and unanticipated cost increases to replacement equipment. 21 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:22 1. That the above recitations are true and correct. 23 2. Additional funds in the amount of $81,182 are appropriated to the FY07-08 24 Vehicle Replacement Budget for the out-of-cycle replacement of a police patrol unit, the refurbishment of a police patrol boat, and the replacement of a riding lawn mower and additional25 funds in the amount of $50,000 are appropriated to the FY07-08 Vehicle Replacement Budget as 26 a contingency for future unanticipated vehicle and equipment replacement needs. 3. The Finance Director is authorized to transfer $131,182 from the Fleet-Vehicle Replacement fund to the FY07-08 Vehicle Replacement Budget. 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 19th day of February, 2008, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard and Nygaard. NOES: None. ABSENT: None. LEWrS, Mayor ATTEST: LQRRAtfJE M. WOCfD), City Cl ^