Agenda Item No. 13
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 24, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Kristin Bennet, Management Analyst
SUBJECT: Budget Augmentation Requests for Public Works Valve Truck, Valve Turning Machine and Associated Equipment
RECOMMENDATION
Approve Budget Augmentation Requests of $82,804.25 for Public Works Valve Truck, Valve Turning Machine, and Associated Equipment.
BACKGROUND
The Public Works Department’s current valve truck and valve turning machine have exceeded their useful lives and are in need of replacement. The existing valve turning machine is no longer supported by the manufacturer and staff has had to find ways to repair damaged parts in the past.
The existing valve truck cannot support a new valve machine and is due for replacement as well.
The valve truck is a critical Public Works piece of equipment used by maintenance staff for responding to a variety of Public Works emergencies and the valve turning machine is a critical piece of equipment to ensure the continued safe operation of the City’s drinking water supply system.
The FY 2022-23 budget included purchase of a new boom-lift vehicle for $75,000, but staff later identified the need for a replacement valve truck and valve turning machine as a more immediate need. Staff estimated that a new valve truck outfitted with a new valve turning machine and associated equipment could be purchased within this $75,000 allocation. However, due to increased vehicle and equipment prices over the last three years the cost to purchase a new valve truck and equip it with a valve turning machine and associated equipment that meets the City’s specifications is now $157,804.25. Staff purchased the truck and body at the end of FY 2022-23 for $79,829.72 and now needs to purchase the valve turning machine and power take-off unit to have the truck equipped this fiscal year. Pending Council approval, staff will appropriate additional funding of $4,832.72 needed for the purchase of the truck in the FY 2022-23 budget and an additional $77,974.53 in the FY 2023-24 budget for a total of $84,804.25 to finalize the equipment purchase.
FISCAL IMPACT
The truck purchase in FY 2022-23 exceeded the budget allocation by $4,829.72 and consequently staff is requesting approval of a budget augmentation request as part of the final accounting for FY 2022-23 of $4,829.72 from the General Fund. Staff is also requesting approval of a budget augmentation request for FY 2023-24 of $77,974.53 with $41,658.12 from the Water Enterprise Fund, $18,158.18 from the Wastewater Enterprise Fund, and $18,158.12 from the General Fund.
The valve turning machine itself will be funded from the Water Enterprise Fund as it is solely used Staff Report: Budget Augmentation Requests - Valve Truck Page 2 July 24, 2023
when working on water infrastructure and the remaining costs will be evenly split for other needed equipment and installation costs. Funding is available in the Water Enterprise Fund, Wastewater Enterprise Fund, and General Fund but staff will look for ways to reduce spending in FY 2023-24 to offset this purchase within the operating budget of the respective funds.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Approve Budget Augmentation Requests of $82,804.25 for Public Works valve truck, valve turning machine, and associated equipment; or
2. Do not approve the Budget Augmentation Requests; or
3. Provide staff with additional direction.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.