89-1006 .�— �
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WMITE - CITV CI.ERK
PINK - FINANCE OII/ICII
BLUERV - MAVORTMENT GITY OF S INT PAUL 11 , NO• �-��0� -
� Counci esolution �)
Presented By
�Keferred To � Committee: Date �� • ��`"�7
Out of Committee By Date
WI�RBAS,T7�Mayor pursuant�Secaon 10.47.1 i Char�r oi tTLe�Cicg of Sffint aul,does cerdty t'hatthere a�re
avai1able for appropriar�on eo�l ravenuas 1n excess oi ee �d in d�s 19�9 budget
WI�RBAS,Uotmcil Ffle�7'�510,adop�d{7c�obex , 1 1,dld esl�t�ish cextain 8pe Fand Poli�e�;ean�
WI�BEAS,Zbe May�ar r�omrruexuQs tl�az�hs follo it�ons be r�de�o dLe 1989 get:
FiYt�uncl� Flan C t�d et Ch�e Rev�sad Bud¢et •
250 Pablic'4�orks HquipmentFwNd
12242 Equiprnent Se�vu;es Secti�n
9910 tJnnese�ad Fu�ud BB�mce 1, .84 289,000.00 2'90,425.84
All ot�er Fi�o�cing th�e Saurn�e 4 7 2.00 0.00 4.50�.792.Q0
To�al 4, ,Z 7.84 289,OQ0.00 4,79�i,217.B4
Svendi�F1an C u� et �han�e Re4ised Bu��et
250-1220�-XXX �ar Spen�ding 3 ,3 7.84 0.00 3,03'7,357.84
250-12202-D956 Da1a Processi�ng
S�ft�ana 0.00 110,000.00 110,000.QQ
254-1 Z2Q2-0�7 Data Procassing
Hauosvsu�9 4.Q0 179,OOO.QO 1�9,000.00
250-12204-XXX �r Spending 3,3 8.00 0.00 3,318.00
250-12205-XXX C7thar Spending 1 2.� 0_00 1.463.542.00
Total 4 7.84 289,QOO.DD 4,'7'9C3,217.8�
Nor�r,tl�srefo�s,be it
RESOLFSD,tt�at�s CityCounciladcprs�ab� ad ns m dLe 2989 budget.
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COUNCIL MEMBERS � ` S.t �
Yeas Nays �����i�.��� �� Requested by Dep tment of:
Dimond
Lo�g In Fav r � -
c��t�
Rettman B
sche;b�� _ A gai n s Y
Sonnen
Wilson
Form Ap ved b C� Atto ey
Adopted by Council: Date
Certified Passed by Council Secretary BY- � '
gy,
t#pproved by Ulavor: Date _ Appr v y May for Sub ' i to ouncil
By -
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` Magnitude of S stem Benefits
- In june of 1978, the United States Departm nt f Transportation, Fed ral Highway Adminis-
tration, published an Equipment Manage nt System (EMS) manua which was developed
as a joint effort of 12 states, the contractor, Cr sap, McCormick and get Inc., and the Fed-
eral Highway Administration. The followin e cerpt from the manua escribes management
practices and what the anticipated value a d nefits might be.
_ "The value of an equipment managem nt ystem is real, and the agnitude is significant.
In any one state the value may appr ch millions of dollars an ually. Expectations for
such cost benefits, however, should e t mpered by an under anding of a number of
factors that will affect the nature and a nitude.
First, no management information sy e will generate hard cas benefits directly. Bene-
fits are realized through the effective se f information develop d and reported by these
systems, and this effectiveness depe ds n the skills and moti tion of individual man-
agers throughout the equipment fun io . A vital aspect of an equipment information
system implementation and manage e improvement proces should be the education
and direction of equipment manager a users to ensure that ey focus on appropriate
goals, that they understand how to tta' them and the effects heir decisions can have.
To the extent practical, the systems ut ned in this manual su gest what oUjectives and
related key decisions are. However, he ngoing education an direction of management
are essential to program success.
It should also be recognized that co t r uction is limited by t nature of equipment re-
lated expenditures and the manage en actions that are avail le, in a practical sense, to
control these expenditures. As has ee indicated, most equi ent related expenditures
are for assets and resources that ar re atively fixed in the sh term. Thus, it is natural
— for an equipment manager to try t in ease productivity, rat er than reduce costs. Pro-
ductivity improvement represents 1 we levels of future outla and has measurable value.
The experience of a number of st es hat adopted equipme t management systems or
implemented elements as systems u ests some potential r ges of value for increased
productivity and reduced expendi re . These involve prim 'ly equipment depreciation
expense, repair labor, and parts c r ng costs. -
• By reducing complement sizes, i pr ving equipment utiliz ion, and improving equip- �
ment assignment criteria, depreci tio expense has been re ced by 10 to 20 percent in -
- some states. Complement redu on as been achieved by emonstrating to equipment
users, through properly designed an assessed rental rates, at idle equipment incurs a
significant cost.
Opportunities to improve the u iliz tion of repair labor 10 to 25 percent exists in
many operations. Few departm nts appear to measure th performance, and, when it
is measured, data is often ques on ble (personnel whose abor is not charged directly
to equipment are sometimes us d roductively elsewhere for example). Nevertheless,
reported labor utilization rates b een 55 and 75 perc t are not unusual.
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' Reductions of parts carrying costs can re ult in 10 to 15 percent re ctions in the real cost
� of parts as issued to mechanics. Parts c r ng and distribution co ts are rarely visible in
state equipment operations, yet a ca ng ost of 30 percent of rts purchase prices is
realistic. (One state stocks all parts use in its equipment operati in a central location
and operates a distribution system to all tat shops in the highway epartment. Although
centralized purchasing results in volu e scounts, the cost of 's operation has been
estimated at over 50 percent of the val e o all parts issued.) �
Given a typical distribution of equipme t anagement costs, the value ranges for pro-
ductivity improvement suggest oppo nit es for net improveme t valued at between 6
and 15 percent of total expenditure. ( e ollowing table)... sh s the development of
these values.
The greatest value in implementing an qu' ment management s tem, however, is likely
to lie in improved management contro a service to equipmen sers. This control can
result from improved management un ers anding of established perational goals, of the
actions necessary to attain them, and n easurement of their o tcome. The benefits of
improved management control includ ability to make the ' t decisions correctly,
to support them, and to demonstrate os tive results."
Table 1: Summary of Potential Equi m nt Productivity Gai
Equipment Cost % of Total Potential % I rovement %
Factor Equip. Cost of Improvement of otal Costs
Parts 25 10-25 5 -6.3
Labor 11 10-15 .1 - 1.7
Operating Costs 23
Depreciation 2� 10-20 .6 - 5.2
Overhead 15 5-10 .9 - 1.1
TOTAI 100 .1 - 14.3
t Excerpt from the Equipment Management Syst M ual published by the United ates Department of Transportation,
Federal Highway Administration, June 1978.
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2g. Resolution 89-1023 - amending the 19 9 budget by Laid over 3 weeks
adding $137,150 to the Financing S ending Plans
for City Attorney General Gover nt Accounts.
(Referred from Council June 8)
2h. Resolution 89-908 - allocating $5 ,0 0 to the Laid over 3 weeks
Police Department for continuatio a d expansion
of the Beat Patrol Program for 19 9, and trans-
ferring $25,000 to a contingent r se e fund for
possible overtime costs. (Referr d rom Council
June 8)
2i. Resolution 89-1022 - amending the 19 9 budget by Laid over 3 weeks
adding $20,440 to the Financing & Sp nding Plans
for Animal Control Program. (Ref rr d from Council
June 8)
2j . Resolution 89-1083 - amending the 19 9 budget by Approved as amended
adding $202,971 to the Financing S ending Plans (Substitute Resolution
for Citywide Information Services Di ision computer submitted to City Clerk
capacity upgrading. (Referred fr m ouncil June 15) inCOrporating changes�
3. Resolution 89-974 - amending the 1 87 and 1989 CIB Laid over 3 weeks
budgets by adding $250,000 to Cont ng nt Reserve for
rainleader disconnection. (Referr d rom Council
June 1, laid over June 5)
4. Resolution 89-1006 - amending the 98 budget by Approved �
adding $289,000 to the Financing & Sp nding Plans
for Public Works Equipment fund. Re erred from �-
Council June 6)
5. Resolution 89-802 - adopting the n w oning and Approved as amended
Environmental Review Fee Schedule. ( eferred
from Council May 9)
6. Ordinance 89-897 - amending Chapte 3 9 and 370 Laid over 3 weeks
of the Legislative Code pertaining to uilding
. trades business licenses and certi ic tes of
competency. (Referred from Counci M 23)
7. Resolution 89-1028 - establishing 9 property Laid over 3 weeks
tax freeze at 1989 level and goal moving St.
Paul from the high five metro prop t taxing
jurisdictions by 1993. (Referred o Council
June 8)
8. Resolution establishing the rate of pa for Public Laid over 3 weeks
Health Division Manager in Grade 32, S ction ID4
of the Professional Supervisory Sta da d Ranges
in the Salary Plan and Rates of Com en ation
Resolution. (Referred from Council Ap il 7, 1988,
laid over June 5)
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GITY OF SAINT PAUL • " `
c1IIy11�3�
OFFICF. OF TF3E CITY COIINCIL - R�CEIVED
Committee Report �uN 2 01g89
GTY CLEftK
Finance. Manaaement. & Personnel Committee
June 19, 1989
1. Approval of minutes of June 5, 1989, meeting. Approved
2. General discussion of the Mayor' s mid-year Continued discussion
budget adjustmets. in three weeks
2a. Resolution 89-351 - amending the 1989 budget by Laid over 3 weeks
transferring $32,062 from C'ontingent Reserve to
Police Administration for full-time position to .
oversee license renewal and application process.
(Referred from Council March 2, laid over March
20 & June 5)
2b. Resolution 89-354 - amending the 1989 budget by Laid over 3 weeks
adding $51,661 to the Financing and Spending Plans
for Police Vice Unit to conduct investigations of
liquor and Class III license applicants.
(Referred from Council March 2, laid over March 20
& June 5) (Withdrawn by Administration)
2c. Resolution 89-830 - amending the 1989 budget by Laid over 3 weeks �
transferring $38,574 to Community Services Parks
and Recreation Administration and Finance and
Management Services for renovation of third floor
of City Hall Annex. (Referred from Council May 9,
laid over June 5)
2d. Resolution 89-820 - amending the 1989 budget by Laid over 3 weeks
adding $99,755 to the Financing and Spending
Plans for City Attorney' s office automation
project. (Referred from Council May 11, laid
over June 5) '
2e. Resolution 89-1004 - amending the 1989 budget by Laid over 3 weeks
adding $112,000 to the Financing & Spending Plans
for Community Services Utility Needs. (Referred
from Council June 6)
2f. Resolution 89-1024 - amending the 1989 budget by Laid over 3 weeks
adding $23,500 to the Financing & Spending Plans
for Community Services Division of Libraries
Maintenance Services. (Referred from Council
June 8) ' �
CTTY HALL SEVENTH FLOOR SAINT PAUL, MINNESOTA 55102
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