HomeMy WebLinkAbout13 - 05BA-013 - Purchase of Replacement VehiclesCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 13
September 14, 2004
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: General Services Department
David E. Niederhaus, Director, 949 - 644 -3055
dniederhaus@city.newport-beach.ca.us
SUBJECT. Budget Amendment for the Purchase of Replacement Vehicle
ISSUES:
A sedan operated by the Building Department was rear -ended last month and the repair
cost exceeds the value of the vehicle. Should the City purchase a similar vehicle to
replace the damaged unit?
RECOMMENDATIONS:
Authorize the purchase of a vehicle for an estimated cost of $19,000.
Approve Budget Amendment BA , transferring $19,000 from unappropriated
Internal Service Fund reserves to the General Services Department Account 6120 -9100
to fund the cost to purchase this unit.
DISCUSSION:
On August 13, 2004, Unit 2906, a 1996 Ford Taurus sedan assigned to a Building
Department Inspector was rear -ended as he slowed to make a right turn. The driver of
the other vehicle was cited by the Police Department at the scene and the injured City
employee returned to work the following workday. The Ford Taurus incurred major
damage, and the lowest estimate to repair the damage is over $5,100.
Based on the age and mileage of the vehicle, the Kelley Blue Book retail value is $4,350,
so the amount of damage does not justify repairing the unit. Staff is negotiating with the
other party's insurance company for reimbursement of the vehicle loss.
Budget Amendment for the Purchase of Replacement Vehicle
September 14, 2004
Page 2
Consequently, we are seeking approval to purchase a replacement vehicle for the
Building Department. We will be purchasing additional similar vehicles shortly and this
unit would be added to that order.
FUNDING:
Adequate reserves are available in the Internal Service Fund (ISF) to fund this
unbudgeted expenditure. Any proceeds from an insurance settlement will be transferred
to the ISF.
ENVIRONMENTAL REVIEW:
This action requires no environmental review, as it is not a project pursuant to CEQA.
SUMMARY:
The Building Department is currently utilizing a loaner vehicle from the Equipment
Maintenance Division. Approval of the purchase of a vehicle and the associated budget
amendment will ensure the Building Department has a full allotment of vehicles.
Prepared by:
Mike Pisani
Deputy General Services Director
Attachment: Budget Amendment Form
Submitted by:
David E. Niederhaus
General Services Director
Cite of Nfe4 /vparf 3each
BUDGET AMENDMENT
2004 -05
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations AND
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
X from unappropriated fund balance
EXPLANATION:
NO. ass
AMOUNT: 51s,000.00
Increase in Budgetary Fund Balance
Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase expenditure appropriations to purchase replacement vehicle for Building Department. Original vehicle
damaged in traffic accident.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account Description
610 3605 Equipment Fund Fund Balance
REVENUE ESTIMATES (3601)
Fund /Division Account Description
EXPENDITURE APPROPRIATIONS (3603)
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed:
Signed:
Signed:
Description
6120 Equipment Replacement
9100 Rolling Equipment
Financial Approval: Administrative Services Director
Administrative Approval: City Manager
City Council Approval: City Clerk
Amount
Debit Credit
$19,000.00 *
$19,000.00
Date
Date
Date