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HomeMy WebLinkAbout17 - Equipment Maintenance Facility RemodelCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 17 July 22, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department David E. Niederhaus, Director, 949- 644 -3055, dniederhausCa? city. newport- beach.ca.us SUBJECT: Budget Amendment for Remodel of Equipment Maintenance Facility ISSUE: Should the City Council authorize a budget amendment to fund a minor remodel of the interior of the Equipment Maintenance facility at the Corporation Yard? RECOMMENDATION: Adopt Budget Amendment # in the amount of $18,000, increasing revenue estimates in Account 610 -6830 and increasing expenditures in Account 7611- C6110739 to fund the remodel of a portion of the Equipment Maintenance facility at the Corporation Yard. BACKGROUND: One of the tasks performed by the Equipment Maintenance Division has been the performance of smog checks of City vehicles. The Division performs about 60 smog checks per year. Staff have researched the issue and concluded that performing the smog checks in -house is no longer cost - effective, due to the cost to purchase the smog machine, the annual maintenance contract, and the amount of mechanic time being expended in performing the tests. Additionally, it is likely that the State will revamp the smog check program in the next few years, requiring, at a minimum, an expensive upgrade to the existing smog machine. It is estimated that the City will spend $3,600 or less each year having smog checks performed by outside vendors, many of which are located in the immediate vicinity of the Yard. Budget Amendment for Remodel of Equipment Maintenance Facility July 22, 2003 Page 2 With the approval of the City Manager, the Department marketed the current smog machine and eventually sold it to a municipal water district in Riverside County for $18,000 in June. DISCUSSION: The FY 2002 -03 Budget provided funding to conduct a future needs assessment of the Equipment Maintenance facility (Building D) at the Corporation Yard. The assessment, performed by the architectural firm of Hutson & Partners of Newport Beach, concluded that welding and metal working tasks are not conducive with other operations (especially as the City will eventually be required to use alternative fuels), and that office work space for mechanics should be increased, since they are required to do more research of vehicle history on computers and view diagnostic data on CD /ROMs, as opposed to the past use of service manuals. The architect's recommendations were addressed in two ways. First, the FY 03 -04 budget includes $174,000 to build a separate welding annex facility, for which plans are about 90% complete. This new building will house welding and metal working operations. Welding operations are not appropriate to the normal work area due to the white light given off by the torch and the debris from grinding operations. Also, much of the welding completed by Equipment Maintenance staff is performed above, below and inside of vehicles and equipment. The new welding facility will allow room for this work to be accomplished out of the elements. As long as the City fleet includes heavy equipment, welding will be required to be performed in -house since there are no vendors to perform such repairs in the local area. The few vendors that provide such services are located in the Inland Empire or Los Angeles County, and equipment and vehicle downtime and transport costs justify the cost to perform welding services in- house, along with the higher quality specialized work performed by City staff. On a daily basis staff weld various types of equipment, and rebuild refuse truck bodies, street sweeper pickup heads, and equipment buckets. It is anticipated that this building will go out to bid by early October. Secondly, plans were developed to increase the size of office space for mechanics to perform research, write work orders, and update work records. Currently, ten mechanics, the Auto Parts Buyer, and Stock Clerk share a 160 square foot office that contains three computer work stations and volumes of parts and repair manuals. When the new mechanics office is completed, the Auto Parts Buyer and Stock Clerk will share this office and retain two computer work stations, as the room was originally designed when the Shop was constructed in 1983. The mechanics office, as designed, will measure 336 square feet, and have five work stations plus storage for service manuals. At the present time, there is a large number of people constantly going in and out of the Parts office throughout the day, creating distractions for people on the phone, working on the computer, and reading manuals. Budget Amendment for Remodel of Equipment Maintenance Facility July 22, 2003 Page 3 The Department desires to fund the remodel of the mechanics office area in Equipment Maintenance shop with the proceeds of the sale of the smog machine. A budget amendment is attached for Council approval which effectively transfers the $18,000 from the sale of the smog machine to an expenditure account to pay for the facility improvements. The work would primarily be performed by City staff, with contract assistance by certain trades. The plans have been approved by the Building Department, and a building permit has been issued. If funding is approved, work would commence at the beginning of September and require approximately 30 days to complete. ENVIRONMENTAL REVIEW: The City Council's approval of this agenda item does not require environmental review. Prepared by: Mike Pisani, Deputy Director Attachment: Budget Amendment Submitted by: David E. Niederhaus, Director City of Newport Beach BUDGET AMENDMENT 2003 -04 EFFECT ON BUDGETARY FUND BALANCE: X Increase Revenue Estimates X Increase Expenditure Appropriations Transfer Budget Appropriations SOURCE: from existing budget appropriations X from additional estimated revenues from unappropriated fund balance EXPLANATION: NO. BA- 002 AMOUNT: $16,000.00 Increase in Budgetary Fund Balance AND Decrease in Budgetary Fund Balance X No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To increase revenue estimates due to sale of smog machine and increase expenditure appropriations for remodel of the Equipment Maintenance Facility. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account REVENUE ESTIMATES (3601) Fund /Division Account 610 6830 EXPENDITURE APPROPRIATIONS (3603) Description Description Equipment - Sale of Vehicles Amount Debit Credit $18,000.00 . A...,._..,:,. $18,000.00 % /o-U� Date Signed: City Council Approval: City Clerk Date Description Division Number 7611 Equipment Fund Account Number C6110739 Equipment Maintenance Facility Remodel Division Number Account Number Division Number Account Number Division Number Account Number Amount Debit Credit $18,000.00 . A...,._..,:,. $18,000.00 % /o-U� Date Signed: City Council Approval: City Clerk Date