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HomeMy WebLinkAboutCDN 2018-02-27 Handout Distributed at Meeting - Golf and Recreation 2018 Fleet Purchase City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Community Development & Neighborhoods Committee TO: Rick Still, Parks & Recreation Director FROM: Robert Eaton, Parks & Recreation Manager BY: Mayor Ekberg CC: February 7, 2018 – REVISED 2/27/18 PER COMMITTEE REQUEST DATE: Golf and Recreation 2018 Fleet Purchase Revisions SUBJECT: ISSUE Revisions to 2018 Fleet purchases for Golf and Recreation BACKGROUND There are a few revisions to the 2018 fleet purchases that both the Recreation and Golf divisions of the Parks and Recreation Department would like to make in order to provide better service. Staff performed an assessment that took into consideration factors such as, program or operational needs, actual equipment usage, condition of the equipment, life expectancy, and existing scheduled replacement year. The results of this assessment revealed a couple things; 1) some pieces are not getting used, 2) some pieces are in disrepair and will not make it till the existing scheduled replacement year, 3) some pieces are doing fine and do not need to be replaced at this time. Staff is desiring to right size the fleet at this time to be good stewards of the funds, provide a more efficient operation, and better serve the community through having the right equipment. Attachment A is the existing budget for 2018 fleet purchases. Golf has five pieces of equipment slated for replacement in 2018 and Recreation has one piece. DISCUSSION Referencing the 2017/18 Budget we will begin with the revisions for Golf then Recreation. Golf: (lines 31 – 35 on pg 335 of budget, Attachment A) Line 31 – Replace as scheduled Line 32 – Delay purchase (likely till 2020) Line 33 – Replace as scheduled Line 34 – Replace as scheduled Line 35 – Replace as scheduled As determined from the assessment, there are three pieces of equipment in great need of replacement that will not make it till their currently scheduled replacement years. P&R staff and Public Works Fleet staff have already talked about working together to revise that for the next budget cycle. Below is a table showing the financial impacts of the existing pieces of equipment identified in the 2018 budget. Note, line 32 is the aerator that staff are recommending pushing out. INFORMATIONAL MEMO Page 2 Replacement LineCurrent UnitUnit #2018 BudgetActual ExpenseDifference Unit 31Mower, Greens1656$ 35,000.00$ (38,285.14)$ (3,285.14)Tractor 32Aerator6606$ 21,700.00$ -$ 21,700.00Mower, Greens Blower, Trailer-Blower, Trailer- 33mounted6602$ 8,025.00$ (8,745.00)$ (720.00)mounted Mower, Rotary Mower, Rotary 34Rough6609$ 66,500.00$ (68,931.72)$ (2,431.72)Rough 351/4-ton Pickup1293$ 35,000.00$ (16,115.72)$ 18,884.28Ditch Witch TOTALS$ 166,225.00$ (132,077.58) $ 34,147.42 The table below show the additional expenses of the pieces of equipment that staff are recommending including in the 2018 fleet purchases. Scheduled Equipment LineCurrent UnitUnit #Replacement YearExpense ReplacementStatus Very poor, 1Blower, Trailer-mounted661120182022heavy daily use $ (8,780.00) Very poor, 2JD Gator106320182046heavy daily use $ (10,423.22) Very poor, use is JD Gator $ (10,423.23) 3106420182026restricted TOTAL$ (29,626.45) The net change to the 2018 budget is $4,520.97 savings for 2018 (not including the $8,427 in the 501 Fleet Budget already allocated for the three pieces listed above). Even though the net change to the budget is less than what has already been approved, staff wanted to be completely transparent with these changes and share them with the committee since all three of the new items are over the $5,000 “unbudgeted capital purchases. Recreation: (line 26 on pg 334 of budget, Attachment A) Line 26 – Replace as scheduled The existing 21-Passenger Bus requires a CDL to drive it and we have no staff to operate it. It has significant value left in it and could be auctioned, sold, or traded-in to recoup that value. Staff agree that a new 15-Passenger van would better meet the needs of the programs and people. The fund value of the bus is enough to purchase a new van to replace it (not including any resale value). Below is a graph showing that. As the bus is not included in the 2018 Fleet budget and is over $5,000 as a capital purchase, staff are presenting this to the committee for consideration. Replacement LineCurrent UnitUnit #BudgetEstimated ExpenseDifference Unit 2615-Passenger Van1216$ 37,000.00$ (39,000.00)$ (2,000.00)15-Passenger Van 21-Passenger Bus8900$ 39,000.00$ (39,000.00)$ -15-Passenger Van TOTAL$ (2,000.00) C:\\Users\\ana-l\\AppData\\Local\\Microsoft\\Windows\\INetCache\\Content.Outlook\\C7HD8MNF\\CDN 2-13-18 Fleet Purchases Golf Rec) Memo - FINAL - (REV 2-27- 18 per CDN).doc INFORMATIONAL MEMO Page 3 FINANCIAL IMPACT If both Golf and Recreation revisions are approved, the net change to the 2018 expenditures from the 501 Fleet fund budget would be an increase of approximately $28,600 which would be covered by using the existing $39,000 currently allocated for replacing the bus in 2038. Any remaining funds would be credited back to the Recreation department along with the estimated $10,625 from the re- sale of the bus (attachment B). RECOMMENDATION The Council Committee is being asked to consider the options and approve the additional purchases as outlined above (Blower, two Gators, and a 15-Passenger Van) in the 2018 budget. ATTACHMENTS A. 2017/18 Budget Book pages 334 – 335 B. Bidadoo Auctions Estimate C:\\Users\\ana-l\\AppData\\Local\\Microsoft\\Windows\\INetCache\\Content.Outlook\\C7HD8MNF\\CDN 2-13-18 Fleet Purchases Golf Rec) Memo - FINAL - (REV 2-27- 18 per CDN).doc