HomeMy WebLinkAboutReg 2003-04-21 Item 8E - Purchase - Water Utility Maintenance Vehicle for $46,0001908
CAS Number: 03-060 I Original Agenda Date: April 21, 2003
Agenda Item Title: Water Utility Maintenance Vehicle Purchase in 2003
I Original Sponsor:
Timeline:
Sponsor's Summary:
Recommendations:
Sponsor:
Committee:
Administration:
I Cost Impact (if known):
I Fund Source (if known):
Meeting Date
4/21/03
Meeting Date
4/21/03
Meeting Date
4/21/03
Council
Initials
Prepared by 1 Mayor's review/ Council review
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ITEM INFORMATION
Admin. Public Works
Authorization is needed to purchase a water utility maintenance van in 2003 that is budgeted
in 2004. The current step van is leaking coolant internally and the repair cost is at least
$10,000. The new van will cost $46,000 and additional monies have been paid into the Fleet
fund from the Water fund to anticipate shortfalls. Given the age and condition of the unit,
recommendation is to purchase replacement van as soon as possible.
Authorize Finance and Fleet to purchase vehicle.
Forward to Regular Consent Agenda
Same as Sponsor
$46,000.00
Fleet 501 Fund
RECORD OF COUNCIL ACTION
Action
APPENDICES
Attachments
Information Memo dated April 2, 2003
Utilities Committee Meeting Minutes from April 8, 2003
IT EM N O.
To: Mayor Mullet
From: Public Works Directr
Date: April 2, 2003 u
Subject: Purchase of Water Van in 2003
LSSUE
INFORMATION MEMO
Request for authorization to purchase a water utility maintenance vehicle in 2003 that was
originally planned for 2004.
BACKGROUND
Unit 1253, a 1994 step van operated by the Water Department, is leaking coolant internally.
Repair costs will be at least $10,000. The original purchase price was $26,080 and will be
fully depreciated at the end of this year. It is listed as a 2004 replacement.
Replacing this maintenance van now will cost $39,000 for the truck and $7,000 for the
capitalized cabinet work, radios, lightbars, etc. Funding available for the purchase is $32,000
and the resale value of the '94 van is about $2,000. The additional funding needed to purchase
a new van is $12,000. The shortfall in available funding is attributable to not capitalizing the
cabinetry and other modifications to the unit prior to placing it in service, the undepreciated
balance, and a decrease in the resale value. Rather than trying to separately budget capital for
vehicle add -ons, we now capture all capitalization costs in the amount used in the 501 Fund
schedule maintained by Finance.
Additional monies have been paid into fleet from the 401 Fund to anticipate shortfalls with
enough money currently to cover the $12,000. Given the age and condition of the unit, it
makes good business sense to replace it as soon as feasible. We may continue to operate the
existing unit for a short time or transfer to a utility van loaned from the Street Department.
The alternative of engine replacement extending the service life of the van another two years is
not cost effective and therefore not recommended.
RECOMMENDATION
Committee approval to proceed with available funds to purchase the water van in 2003.
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4. Water Utility Vehicle Early Purchase A 1994 van used by water maintenance requires
$10,000 of repairs. Rather than spend that, Public Works asked they be allowed to purchase a
utility vehicle scheduled to be bought in the future. Though the funding being used is
replacement funds for future purchases, that money will need to be replaced by year's end.
Committee approval to purchase water van in 2003.
5. Regional Solid Waste Issues King County Solid Waste has been looking for ways to cut
their budget recently. With staff layoffs and new efficiencies having been introduced, the county
looked further for savings. One ploy they found was to charge rent from Surface Water to the
General Fund to pay for the rent of Cedar Hills Landfill, which the General Fund bought in 1992.
Rent starts at $7 million/year in 2004, and escalates 7% a year until 2012. That plan is being
investigated by several cities that use county garbage facilities. One of the things the utility is
planning is building a rail access intermodal station to send their future garbage to remote
landfills. They currently are working on a site near Harbor Island for their station.
Another issue that may affect Tukwila is in looking for efficiencies, King County found that
although they make 85% of the transitions, self haulers only pay 25% of the revenues of a
transfer or garbage station. Tukwila has a very high self -haul rate, and those rates (as well as all
other rates) seem likely to rise in the near future. The committee briefly discussed whether this
could be a good time to start public information about costs and about possible mandatory
garbage pickup. Information.
1 J L Committee chair approval