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HomeMy WebLinkAboutCIP Budget Amendment for Flusher Truck - 1 - Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director SUBJECT: Ratify City Manager’s FY13 Administrative Budget Amendment for Capital Improvement Program (CIP) item WW21 – Flusher Truck, $253,094 in the Wastewater Fund. MEETING DATE: August 13, 2012 AGENDA ITEM TYPE: Consent Item RECOMMENDATION: Ratify City Manager’s FY13 Administrative Budget Amendment for Capital Improvement Program item WW21 – Sewer Flusher Truck, $253,094 in the Wastewater Fund. BACKGROUND: Item WW21 – Flusher Truck replacement was listed for funding most recently in the FY13-17 Capital Improvement Plan. It is a critical piece of equipment; its regular replacement scheduled for FY13 has been included in our five past CIP plans. The item dates back to the CIP adopted for FY09-13. In the FY09-13 Plan, the truck replacement was scheduled for FY12. Beginning with the FY10-14 Plan, it was pushed back a year (and has remained) to be replaced in FY13. Funding the Flusher Truck replacement was included in the last two rate models that were prepared for the Wastewater Fund’s user fees. The currently adopted rates include funding the Flusher Truck replacement. The FY13 budgets (both CM Recommended and Final) inadvertently omitted this item in the Wastewater Fund capital listing. When reviewing the budget entry in the spring I noted that the item was missing, but failed to follow-up with the Public Works Director and the Water/Sewer Superintendent. The Final Budget’s Appropriation Resolution No. 4383, Section 4, delegates the authority to amend appropriations to the City Manager for fee-based budgets such as the Wastewater Fund. Section 4 23 - 2 - Pursuant to Sections 7-6-4006 and 7-6-4012, M.C.A., the City Commission hereby delegates appropriation and budget amendment authority to the City Manager for the expenditures from the following funds: debt service funds; fee-based budgets; trust funds; federal, state and private grants accepted and approved by the City Commission; special assessments; monies borrowed during the year; proceeds from sale of land; and funds for gifts or donations. The City Manager will amend the Wastewater Fund’s FY13 appropriations to include CIP item WW21 – Flusher Truck replacement in the amount of $253,094. UNRESOLVED ISSUES: None. ALTERNATIVES: Express preference that the City Manager not make this amendment – and delay the replacement of the equipment. FISCAL EFFECTS: As a result of this amendment, appropriations Capital – Equipment in the Wastewater Fund’s FY13 Budget will be increased by $253,094 for the replacement of the City’s sewer flusher truck. There will be no need for increased wastewater fees for city residents, as funding this item was already calculated into the rates that are currently in place. Attachments: CIP Item WW21 from Adopted FY13-17 CIP CIP Item WW21 from Adopted FY09-13 CIP Report compiled on: August 5, 2012 24 CIP Project Fund Wastewater Fund PROJECT NUMBER WW21 DEPARTMENT WW OPS PROJECT NAME FLUSHER TRUCK FY13 $253,094 FY14FY15FY16Unscheduled DESCRIPTION OF PROJECT This vehicle replaces current asset #3031, a 2002 Freightliner with over 20,845 miles and 7,653 hours on it. According to the manufacturer’s engineers the fact that the engine is running at 2,400 rpm to run the water pump each engine hour equals 50 to 70 miles. Based on that data the truck’s engine has between 382,650 to 535,710 miles on it. This truck is used to flush over 200 miles of sewer main every year and is a critical piece of machinery for the sewer department that is used almost every working day of the year. This unit will have a TV camera which will allow us to see objects/defects that cause the flusher to stop. This camera has become an industry standard piece of equipment. ALTERNATIVES CONSIDERED Continue to use older vehicle which will be costly to maintain. ADVANTAGES OF APPROVAL Increased reliability and safety for staff and wastewater operations. Camera will eliminate need for follow up TV inspection by the TV van. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Operating and repair costs are expected to be lower than the existing vehicle. FUNDING SOURCES 100% Wastewater utility fund New Replacement Equipment Project FY17 Page 12 25 City of Bozeman Capital Improvements Plan FY09-13 Project Name: Sewer Flusher Truck with TV capability Estimated Cost: $253,094 Project Number: Wastewater Operations – WW21 Date Scheduled: FY12 Purpose: □ New ■ Replacement □ Facility ■ Equipment Project Description: This vehicle replaces current asset #3031, a 2002 Freightliner with over 20,845 miles on it. This truck is used to flush over 200 miles of sewer main every year and is a critical piece of machinery for the sewer department. This unit will have a TV camera which will allow us to see objects/defects that cause the flusher to stop. This camera has become an industry standard piece of equipment. Alternatives Considered: Continue to use older vehicle which will be costly to maintain. Advantages of Approving this Project: Increased reliability and safety for staff and wastewater operations. Camera will eliminate need for follow up TV inspection by the TV van. Estimated New Future Recurring Costs: Annual Operating and Maintenance Costs: Operating and repair costs are expected to be lower than the existing vehicle. Funding Sources: 100% W astewater utility fund 26