HomeMy WebLinkAboutCC 11 FUND TRANSFER 11-02-92CONSENT CALENDAR NO. 11
11-2-92
1
DATE: NOVEMBER 21 1992 Inter -Cam
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION
SUBJECT: FUND TRANSFER FROM VEHICLE LEASE FUND TO VEHICLE MAINTENANCE
ACCOUNT
RECOMMENDATIONS:
That the Tustin City Council, at their meeting of November 2, 1992,
authorize a fund transfer in the amount of $13,800 from the
Vehicle/ Equipment Fund (No. 700) to the Vehicle Repair Fund (4060-
8215) .
BACKGROUND:
The Field Services water truck was purchased approximately six
years ago as a used vehicle and was scheduled for replacement in
1992-93 with a new vehicle. The used vehicle had completed its
remaining life and was in desperate need of engine replacement,
tank replacement and painting. The current replacement cost of an
equivalent new vehicle is $65,000.
The City currently operates an Equipment Vehicle Lease Fund for
replacement of all vehicles and equipment. To date, the Water
Truck Replacement Fund has only accumulated $33,300 compared to the
required 1992-93, $65,000 purchase price.
DISCUSSION:
As a result of tight 1992-93 budget constraints, staff recommended
three options to deal with the inoperable water truck as follows:
1. Purchase a new water truck at a cost of $65,000. This
would have required a supplement capital outlay budget
appropriation for 1992-93 in the amount of $32,000.
2. Recondition the existing water truck, at an estimated
cost of $13,,000.
3. Rent a water truck on an as needed basis, at an estimated
annual cost of $11,000 to $12,000.
In August 1992, after consideration of the three above mentioned
options, the second option was implemented at a cost saving of
$19,000 for the 1992-93 budget year. The estimated cost of the
water truck reconditioning is to be transferred from the
unappropriated resources of the Vehicle/Equipment Lease Fund (No.
700) to the Vehicle Repair Fund (4060-8215). This fund transfer
has been discussed with the Finance Department, they are in
concurrence with said transfer.
Fund Transfer
November 2, 1992
Page 2
Rehabilitation of the water truck has been completed at a final
cost of $13,806.47. It is requested that the City Council
authorize a fund transfer of $13,800 from the Vehicle/Equipment
Lease Fund (No. 700) to the Vehicle Repair Fund (4060-8215).
Robert S. Ledendecker
Director of Public Works/City Engineer
RSL:ccg:leasefnd
cc: Bob Ruhl