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HomeMy WebLinkAbout16 - BA-035 - Utilites Division Truck PurchaseFebruary 8, 2000 CITY COUNCIL AGENDA ITEM NO. 16 TO: Mayor and Members of the City Council FROM: Public Works Department General Services Department SUBJECT: TRUCK PURCHASE FOR PUBLIC WORKS UTILITIES DIVISION RECOMMENDATIONS: 1. Approve an additional vehicle for the Public Works Utilities Division and authorize the purchase of a 1 -ton truck with utility body. 2. Approve the attached budget amendment to transfer $25,000 from the Water Enterprise Fund Utilities Account (5500 -8110) to the Equipment Replacement Account (5500 -8024) for the purchase of the truck and a transfer of $18,000 from the Special Departmental Supplies Account (5500 -8200) to the Equipment N.O.C. Account (5500- 9300). DISCUSSION: An additional 1 -ton truck is needed in the Utilities Division, Water Quality /System Services Section, to accommodate expanded duties required by a State mandated flushing program. The new vehicle will also be used to expand the valve turning program so that each of the 5,400 valves can be operated at least once a year. The Utilities Division currently has 34 vehicles that are utilized by a total of 59 field workers, which include full -time and seasonal staff. There are no spare vehicles available that can accommodate the special valve turning equipment needed for the expanded programs. The State Department of Health Services, Drinking Water Section, performs a yearly review of the City's water operation. The State evaluates the City's compliance with the Federal Safe Drinking Water Act and the State's rules and regulations for operating a domestic water system. In the January 6, 2000, review report, the State has indicated that the City's water system is well operated, maintained and in good overall condition. The State did cite one area that needed to be improved. The State requires that the City establish an annual flushing program on the City's "dead -end" water mains. There are approximately 285 "dead -end" mains in the City. A flushing program requires that each one of these main locations be visited at least once a year and be turned on so water can circulate through the dead end section of pipe. The task will fall under the responsibility of the Water Quality /System Services Section. This section has 6 full - time employees, currently using 4 vehicles. Three of the trucks are used primarily for 1- SUBJECT: PURCHASE OF NEW TRUCK FOR UTILITIES DIVISION February 8, 2000 Page 2 person activities, such as cross - connection inspections, general water system programs, utility dig alert markings and customer service calls. The remaining truck is used by a 2- person crew for valve operations, contractor shutdowns, and other system services. An additional truck with valve turning capabilities in this section will allow the flushing program to be added without increasing personnel. With the help of seasonal employees, this additional truck will also allow the expansion of valve turning program. There are 5,400 valves in the water system and currently they are only operated once every 2 to 3 years. The goal is to have them operated once a year to check their condition and reliability for when they are needed to shut down the system usually in emergencies. The vehicles in the other sections of the Utilities Division are fully utilized and do not have the valve turning capabilities needed for the flushing and valve turning programs. The estimated purchase price of a 1 -ton truck with a utility body is $25,000 including tax. Funds will be transferred from the Water Enterprise Fund, Account No. 5500 -8110 (Utilities) into Account No. 5500 -8024 (Equipment Replacement). These funds are available as a result of energy savings realized by participation in a water management program offered through the Metropolitan Water District and the Orange County Water District. The valve turning device will be purchased and installed separately at a $15,000 to $18,000 cost which will be funded with a transfer from the Water Fund Special Departmental Supplies, Account No. 5500 -8200, to the Water Fund Capital Equipment N.O.C., Account No. 5500 -9300. This machine has a 20 to 25 -year life and will be used on several vehicles before it will need to be replaced in the future. The General Services Department will coordinate the purchase of the vehicle with the Purchasing Section of the Administrative Services Department and also coordinate the installation of the valve turning tool on the truck. Since this is an addition to the Utilities Division fleet of vehicles, the past contributions have not been made to the Vehicle Replacement Fund to account for this vehicle. Therefore, the purchase price will be funded from the Water Enterprise Fund. As soon as the vehicle is in service, monthly contributions to the Vehicle Replacement Fund will be made to provide for its replacement in 8 to 10 years. Respectfully submi d DON WEBB PUBLIC WORKS DIRECTOR Attachment: Budget Amendment DAVID E. NIEDERHAUS GENERAL SERVICES DIRECTOR UMIS_t\SYS\ Users \PBW \SharedlCOUNCIL \Fy99 -00 \February-08 \Utilities Truck Purchase.doc City of Newport Beach NO. BA- 035 BUDGET AMENDMENT 1999 -00 AMOUNT: $a3,000.00 FECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance Increase Budget Appropriations AND Decrease in Budgetary Fund Balance X Transfer Budget Appropriations X No effect on Budgetary Fund Balance SOURCE: from existing budget appropriations from additional estimated revenues from reserved fund balance EXPLANATION: This budget amendment is requested to provide for the following: To transfer funds from the Water Enterprise Fund to the Vehicle Replacement Account for the purchase of a truck and valve turning device. There have been no prior budget amendments. ACCOUNTING ENTRY: Amount BUDGETARY FUND BALANCE Debit Credit Fund Account Description 010 3605 Fund Balance Control NEVENUE APPROPRIATIONS (3601) Fund /Division Account Description EXPENDITURE APPROPRIATIONS (3603) Description Division Number 5500 Public Works - Water Utilities Account Number 8110 Utilities Noc $25,000.00 Division Number 5500 Public Works - Water Utilities Account Number 8024 Equipment Replacement $25,000.00 Division Number 5500 Public Works - Water Utilities Account Number 8200 Special Dept Supplies $18,000.00 Division Number 5500 Public Works - Water Utilities Account Number 9300 Equipment $18,000.00 • Automatic System Entry. Signed: 4anclal�Approval: Finance Director Date ied: d0,0 Administrative A roval: City Manager Date Signed: City Council Approval: City Clerk Date