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Home My WebLink AboutCOW 2009-07-27 Item 5B - Purchase - Transfer of Funds for Front Loader for Public Works Department1 CAS NUMBER: 09-106 CATEGORY Discussion Motion Resolution Mtg Date 07/27/09 Mtg Date 08/03/09 Mtg Date SPONSOR'S SUMMARY MTG. DATE 07/27/09 08/03/09 MTG. DATE 07/27/09 08/03/09 COUNCIL AGENDA SYNOPSIS Meeting Date 07/27/09 08/03/09 Prepared b JM J Initials Mayor's review ITEM INFORMATION ORIGINAL AGENDA DA IE: JULY 27, 2009 AGENDA ITEM TITLE Authorize Transfer of Funds for Purchase of a Front Loader Ordinance Mtg Date Council review ITEM NO. 5 e. Bid Award Public Hearing Other Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P&'R Police PW Using the three enterprise funds; Water, Sewer and Surface Water, $57,500.00 is budgeted in each fund for a total budget of $172,500.00 to purchase a 2008 front loader. No General funds are needed. Funds need to be transferred from the Enterprise Funds' Capital Outlay accounts to corresponding Transfer -out funds and then transferred to the 501 Equipment Rental fund in order to start depreciation and replacement funding. Transportation Cmte Planning Comm. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Utilities Cmte Arts Comm Parks Comm. DA'Z'E: 07/21/09 RECOMMENDATIONS: SPONSOR /ADMIN. Public Works CoMMIrI'EE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0.00 $0.00 $0.00 Fund Source: Comments: Motion for Transfer of Funds only, 2009 -2010 Budget authorized purchase of loader. RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated 07/14/09 Authorization for Transfer of Funds Minutes from the Finance Safety Committee meeting of 07/21/09 City of Tukwila INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance Safety Committee Jim Haggerton, Mayor FROM: Finance Director Public Works Director DATE: July 14, 2009 SUBJECT: Transfer of Funds for Purchase of Front Loader ISSUE Authorize transfer of funds from the Water, Sewer and Surface Water Capital Outlay funds to the Equipment Rental 501 Fund to purchase a front loader. BACKGROUND The City budgeted $57,500.00 in each of the Street, Water, Sewer and Surface Water funds for a total of $230,000.00 to purchase a front loader in the 2009/2010 Budget. Due to the economic downturn and the General Fund's 3% reduction, the $57,500.00 was reduced from the Street Fund 000.16. The front loader will support daily maintenance operations and infrastructure repairs. The loader will facilitate the removal of ditch cleaning waste, vactor waste and emergency management sanding operations. The loader will be very beneficial for any flood control operations that may be necessary as it will remove large logs, stumps and rocks. To our benefit, the John Deere dealership still has a 2008 Front Loader available that will meet all of the City's requirements. The dealership will honor the 2008 State bid price for the 2008 front loader rather than the 2009 bid prices. The price of the front loader including the 3.5 cubic yard quick change bucket and quick change forks is $146,783.00 and with tax and licensing the total will be $161,167.74. Analysis Using just the three enterprise funds; Water, Sewer, and Surface Water, their budgeted amounts of $57,500.00 provide a budget total of $172,500.00. The Enterprise funds are more than adequate to purchase the 2008 front loader and no General Funds are needed. Funds need to be transferred from the Enterprise Fund's Capital Outlay accounts to corresponding Transfer -out funds and then transferred to the 501.02 Equipment Rental Fund. The Equipment Rental fund needs to recognize the purchase in order to start the depreciation and replacement funds. RECOMMENDATION The Council is being asked to approve the Authorization for Transfer of Funds and consider this item at the July 27, 2009 Committee of the Whole meeting and the subsequent August 3, 2009 Regular meeting. attachment: Transfer of Funds form W: \PW Eng \OTHER \Pat Brodin \Info Memo Loader Transfer.doc Department: Public Works Date: 7/15/09 Linder the provisions of Ordinance No. 2221, the following transfer of funds within the budget is requested: From: To: City of Tukwila AUTHORIZATION FOR TRANSFER OF FUNDS Budget Line Item Number/ BAR Water 401.01.594.340.64.00 Sewer 402.01.594.350.64.00 Surface Water 412.01.594.380.64.00 Total Budget Line Item Number/ BAR Water 401.01.597.380.00 Transfer Out Sewer 402.01.597.380.00 Transfer Out Surf Wtr 412.01.597.380.00 Transfer Out Equip Rental 501.397.380.00.00 Transfer -In Equip Rental 501.02.293.800.00.00 C: \temp \XPGrpWise \Loader Authorization for Transfer of Funds.doc CO:ksn 7/24/2009 $54,000.00 $54,000.00 $54,000.00 $162,000.00 $54,000.00 $54,000.00 $54,000.00 $162,000.00 $162,000.00 No. Amount Amount Detailed justification for transfer: See 2009/2010 budget Page 184 Line 17 Transfer Enterprise Funds Capital Outlay budgeted for the Loader (pg 163,167,177) to Enterprise funds Transfer -Out funds in order to transfer to 501 Equipment Rental and reduce ending fund balance of 501.02 Fund. APPROVED BY THE TUKWILA CITY COUNCIL AT A MEETING THEREOF: the day of APPROVED BY THE FINANCE DIRECTOR: Signature: Date: APPROVED BY THE MAYOR: Signature: Date: SAFETY COMMITTEE July 21, 2009, 5:00 p.m.; Conference Room #3 FINANCE AND Meeting Minutes PRESENT Councilmembers: Staff: Guests: Pam Linder, Chair; Joe Duffle and De' Sean Quinn Peggy McCarthy, Dennis McOmber, Gail Labanara, Rhonda Berry and Kimberly Matej Jeremy Eide CALL TO ORDER: Chair Linder called the meeting to order at 5:00 p.m. I. PRESENTATIONS No presentations. III. MISCELLANEOUS Meeting adjourned at 5:34 p.m. Next meeting: Tuesday, August 4, 2009 5:00 p.m. Conference Room #3 ?Si-- Committee Chair Approval Minutes by KAM. Reviewed by PM and SH. City of Tukwila Finance and Safety Committee II. BUSINESS AGENDA A. Authorization for Transfer of Funds Purchase of Front Loader Staff is seeking full Council authorization to transfer funds from the Water, Sewer and Surface Capital Outlay funds to the Equipment Rental 501 Fund to purchase a front loader. 4---- Originally, funding for this item was allocated in the three funds above and the Street fund; however, the monies were removed from the Street fund due to budget reductions. A 2008 front loader, which still meets the City's needs, can be purchased with the designated funds remaining for the purchase in Water, Sewer and Surface Capital Outlay. This is essentially a housekeeping issue transferring monies within funds with no General Fund dollars being utilized to purchase this item. UNANIMOUS APPROVAL. FORWARD TO JULY 27 COW FOR DISCUSSION. B. Authorization to Transfer Funds 3% Budget Adustments Staff is seeking full Council authorization to transfer funds from various City Department budgets in the amount of $958,158 to Department 20, which is used to provide designated and ending funds balances for unanticipated uses (see 2009 -10 Biennial Budget, page 144). Essentially, this is the formal action which will reflect the remaining amount of the City -wide 3% budget reduction which was effective as of June 1, 2009. Earlier this year, Council approved a transfer from the 2009 Equipment Replacement fund which made a substantial contribution ($464,964) to the 3% adjustment. This amount also includes a 3% budget reduction (in the amount of $8,474) to the Council Budget. To set an example for the City, the Committee is in favor of the Council contributing to this reduction, and recommends the Travel and Miscellaneous line items be reduced /adjusted accordingly. Committee Chair Linder will make this recommendation at the July 27 COW and request further discussion. Committee Chair Linder asked that staff be prepared at the July 27 COW to provide comprehensive, detailed information on this 3% reduction as well as effects of any additional reductions on the City. UNANIMOUS APPROVAL. FORWARD TO JULY 27 COW FOR DISCUSSION.