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96-1089 `�� Z � �� Council File # '�� Green Sheet# 35 60 SOLUTION C O SAINT PAUL, MINNESOTA Presented By: Referred To: Committee: Date 1 WHEREAS, the Parks and Recreation Division's fleet is aging and many vehicles need to be replaced;and 2 3 WHEREAS, the aging of the Parks and Recreation Division's fleet is causing high demands for vehicle maintenance;and 4 5 WHEREAS, the condition of the Parks and Recreation Division's fleet has a negative impact on worker productivity,and 6 7 WHEREAS, the improvement of the effectiveness and reliability of vehicles used in Parks and Recreation operations is also a high 8 priority;and 9 10 WHEREAS, in 1996,the Municipal Equipment Fund plans to purchase 32 vehicles to replace Parks and Recreation Division vehicles 11 which have exceeded the recommended replacement schedute;and 12 13 WHEREAS,the Division of Parks and Recreation will be converting its vehicles from ownership to rental over a period of 14 approximately five years;and 15 16 WHEREAS,the Division of Parks and Recreation will rent 51 vehicles from the Municipal Equipment Fund beginning January,1997;and 17 78 WHEREAS,approximately 5220,000 per year in additional funding will be required from 1998-2001. 79 20 WHEREAS,in order to manage the fleet operation like a business and make cost effective decisions about how it should be 27 managed,the Municipal Equipment Fund needs a225,000 to obtain bids for a fuel managment system and a vehicle management 22 information system;and 23 24 WHEREAS,the 5225,000 will be budgeted in a Mayor's Contingency code pending more detailed plans of what the fuel management 25 system and vehicle management information system will do and cost;and 26 27 WHEREAS,the Municipal Equipment Fund will need a 51,196,964 cash infusion to finance initial"up-front"1996 and 1997 equipment 28 purchases;and 29 30 WHEREAS,the Municipal Equipment Fund will pay back the advance for the first-year cash infusion over five years;and 31 32 WHEREAS,the Municipal Equipment Fund will need additional cash infusions ranging from 5188,000 to 5594,000 for the subsequent 33 four years to complete the Parks and Recreation Division's fleet upgrade;and 34 35 WHEREAS,Parks and Recreation and the Municipal Equipment Fund budgets need to be amended to reflect these changes; and 36 37 WHEREAS,the Mayor,pursuant to Section 10.07.01 of the City Charter,does certify that there is fund balance available to finance 38 appropriations;and 39 40 WHEREAS,The Mayor recommends the following changes to the 1996 budget: 41 42 CURRENT BUDGET CHANGES AMENDED BUDGET 43 FINANCING PLAN: 44 001 General Fund 45 00000 46 9830 Use of Fund Balance 0 1,125,000 1,125,000 47 All Other Fund Financing 0 0 48 Total Financing 0 1,125,000 1,125,000 � Rl � � l�� 49 CURRENT BUDGET CHANGES AMENDED BUDGET 50 SPENDING PLAN: 51 001 General Fund 52 03704 Parks 8 Rec.Vehicle&Equipment Maintenance 53 0822 Trucks and Vans 148,918 (36,544) 112,374 54 03795 Parks 8 Rec.Tree Maintenance 55 0822 Trucks and Vans 85,420 (35,420) 50,000 56 00000 57 0535 Recoverable Advance to Special Fund 1,196,964 1,196,964 58 All Other Fund Spending 0 0 59 Total Spending 234,338 1,125,000 1,359,338 60 61 FINANCING PLAN: 62 250 Municipal Equipment Fund 63 12202 Equipment Services Section 64 6928 Recoverable Advance from General Fund 0 225,000 225,000 65 12205 Motor Vehicle Budget 66 6928 Recoverabie Advance from General Fund 0 971,964 971,964 67 All Other Fund Financing 4,151,660 0 4,151,660 68 Total Financing 4,151,660 1,196,964 5,348,624 69 70 SPENDING PLAN: 71 250 Municipal Equipment Fund 72 12202 Equipment Services Section 73 0548 Exp.from Conting.Fund 0 225,000 225,000 74 12205 Motor Vehicle Budget 75 0821 Cars and Motorcycles 69,225 33,250 102,475 76 0822 Trucks and Vans 782,T75 879,404 1,602,779 77 0826 Graders 0 99,870 99,810 78 0851 Radio Equipment 18,105 79,500 37,605 79 All Other Fund Spending 3,281,555 0 3,281,555 80 Total Spending 4,151,660 1,196,964 5,348,624 81 82 83 84 85 RESOLVED,That the City Council approves these changes to the 7996 budget. � Yeas Nays Absent Requested by Department of: � Blakey Public Works -- eostrom Parks and Recreation �.e.��.� Guerin ,/ Harris Megard By: Retfman � Thune Approvat Recommended by Budget Director: Adopted by Council: Date ��_ �{ ,\`�� By: (/� Adoption Certified by Council Secretary: Form A oved by City Attorne • / By: y: `� ,�' Approved by Mayor. te y Approved by ayor for Submission to Council: BY' /"� � �� BY: �l`- ��J��e,� Prepared by Saint Paul Budget OfHce(H:\YSERS�RENSHAW1123DATA\GARAGE�RESB-1� �,�,�,�. D,��„� q�--��'� �- ��`. P�e��u�w�� ,6115/� GREEN 3H T NO. 358+� �,��,�� o �,,,x�� o ��. �s��r,ass-a�4g o�6as-o6aa M..��, Cl �� ,��.�►��+�, � 0 �� ,.�,�.�,�� as,�r � �►,��,+�, 0 TEEYtPAI.�OF StIGNATE7RE PAGEB (CL1P ALL LOCATIOI�T3 FOR SIGATA :) �� of a bzulget resolutioa to loan tbe Municipel EquipmtentFimd money to bring tl�Parks ar�d Reca+eatio�r�Divisian'a Seat to 13�e same 1evo1 es City fleats wit�►in fiwe yeara. The res�lution inereases the 1996�dget of the M�micipal�t Fund in cyrdar ta buy tl�e P�ks amd Rec. ' es schedulod fcc�replac�t in 1996 and 1997. It also places money in ca�ntingenc}+f� vehicl�� fuel aystEms. ' x�w�no�:nP�o.e t+q a s.�.e�Qa) P�RSON�4I:SECiVTCE CON!'RACfB MUST Afit3�Y8iT-?RE Pt)LLOWiNG QU�$TIODl& _et.nt�tetn�c�ao�e�na�ort cn+u.�v[�<�us�ort 1.Hu flrie pason/fnm eva workod�s c�rscx fa t1�e depu�? �cas c,�� _ YES NO sr� _ 2 Hat t�is pmwnl6tm wa bem a cihy amployomT ntarntcr oaatt _ YES NO at�o�rs v�x oo[neca�cetvBV 3,Daa fhie P�n/Srm Poerae a drill mt aarmviY P�bT mY��i'�Y'�T YES NO (�ph�aY�amwers oa sQparate�wt mi ariwd fo �reat) na�nernao-�ea�r.m�c rae�opraannar,r�wbo,wb..wrea arree�amrr. Tha Parks and Recxeation Division'a fleet is aging. Compered Lo the Public works and Water Utility fleets'tl�e Parks fl�at is rubeta�datd. (1)Ia order to gain maximum p�oductivity from its vehicles,s�i the staff who wro�lc with tl�vehicles,city fleet mana�ra have deveiopai a plaa to b�ing the Parks fleet up to a par with the other city fleeta. T�is re�lutioa imtitates a fi�-year plan that will m�kc this possible. (2) No modetn oo�tputer sys�tems are in place to track,acc�uately and ti�ly,�ehicle expenxs,and ta eesist in making decisiqns ebaut tl�mast coat effective vehicle Pqu+�ses,Parts inventories,maiatenance,etc. The res�lutian budgets ffie moaay for theee syste,ms,but no syst�pia�chase will be made witl�nrt C�1 approval. :nnvexr�s��toven: nt�er a five-yesr paiiod,the Parks�R�ereati�Division's fleet will be made equivalent to,amd Peit c�a Produ+etia'e,cif.y-wide fleet. Vahicle replsce�st costs will be built into vehicle r�tal fees cha�ged by the Muniaipal Equi�nt I�d and,a#te:r five y+�rs,the Luttma rep�t c�ts will be patt of the annusl b�dgeted amouats for re,n� There will t�e ao maj�fluch�atians in Parlc�budgot f�rolling stack repl�noat tmlese c�f�psrticular progiams vary. Batt�r of ved�icle use and pum�hases are expacted to re�ilt in�e�eier�ciea, leading�o c�t containment and oost reduction. u�s�nv�rtrac�s�nrpnov� Far 1996,tl�e cost to purc,hese �ehicle and fvel managemeat systenns,and to replace vehiclee which hav�e�coeded t�eir osefulnees,is a major investment of�l�st$1.2 million. Additional c�ts will be incucred av�er a ffve-year period. �� ntseov�r�e oR x�r tirr�ovm�: The Parks aod Recaeation Diviaio�t's fleet will caritiaue to deteriorate. �� v � �� 1l�e Public Wa�kks Mimicipal Equipment Fwnd will not be able to purchase the v!ehicles fat t}�e Pm�cs en�d=Rec�a Division. mrru.nHrc�rr or rnnm�ncaox S 1.L'1�-� carrmsvaxvs stmc�nu�cnncu or�s� O �o ruxnnrawv�cs Fund balance, rerrtal fees wcrmrx� Fund OOi,Activities 03104��c103195: rur�ac naroatunxi�:�.en+� Ftimd 250,�►�tivitie,s 12203,a�1� h'turo►slbud�l1129d�h4earoN�tll�s_!ls�t 0� 9�-/0�9 PARKS AND RECREATION ROLLING STOCK RENTAL PLAN SPENDING LEVELED OUT OVER 5 YEARS Assumntfons: - Parks spending for 1998 and beyond is not adjusted for inflation. -Over the five-year period,the Parks fleet will be converted to the same replacement schedule as Public Works vehicles are now. At least 7 of Parks'151 vehicles will not be replaced. -Efficiencies in Municipal Equipment(Fund 250)will not lower rates(aRhough they may). Productivity gains in Parks will not reduce FTE's except for two mechanics as noted below. -The issues of Pa�lcs specialized equipment are not addressed,particularly capital replacement and mechanics/equipment ratio. -The Fund 250 model below reflects only changes due to Parks and Recreation Division fleet improvement. -Municipal Equipment spending may change,depending on department equipment needs,equipment prices,what is decided with respect to inclusion of the Water Utility,etc. -Parks spending does not include the cash infusion that the Municipal Equipment Fund needs to buy equipment for each subsequent year. -Parks rental codes spending does include the surcharge for payback of the General Fund advance for equipment. -By the year 2002,the rental rates Parks has been paying(which include vehicle replacement costs)will finance equipment purchases without additional cash infusions. -January 1, 1997,will be the implementation date. Budget authority needs to be in place for equipment orders to be placed by Sept. 1, 1996. -Paybacks will be financed by: equipment(surcharge on Parks rental rates);fuel system(surcharge on fuel);computer system (administrative overhead charge on all rates). 1996 1�2Z 1�@ 1�,QS 2SZQ4 2001 Vehicles Purchased: Fund 250 32 21 10 6 7 " Vehicles Purchased: Parks 6 0 0 0 0 0 Vehicles Converted to Rental 0 13 9 22 9 9 Cum.Vehicles Converted to Rental"* 0 51 81 113 128 144 0.0% 35.4% 56.3% 78.5% 88.9% 100.0% PIIi�"KS S�ND/NG ': 1996 "1�96 19�7 ' 'l998 1999 2� 2�Q1 2002 Rollin Stock Ex nses Ado ted Amended ' P '. Pco'. 'Pro. Prti.: P : Pro'. Rental Codes 0 0 676,266 980,409 1,284,552 1,572,135 1,805,659 1,633,695 Chan e 0 676,266 304,143 304,143 287,583 233,524 171,964 CapitalOutlay 234,338 162,374 0 0 0 0 0 0 Chan e 71,964 162,374 0 0 0 0 0 Gas,Oil,Supply 8 Repair 236,573 236,573 177,430 118,287 59,143 16,560 0 0 Chan e 0 59,143 59,143 (59,143 42,583 16,560 0 Mechanic Salaries/Fringes 100,000 100,000 100,000 75,000 50,000 25,000 0 0 wo Mechanics Phased Out 0 0 25,000 (25,000 25,000 25,000 0 Total Spending 570,911 498,947 953,696 1,173,696 1,393,695 1,613,695 1,805,659 1,633,695 Chan e 171,964 � MttN16lPAL EQ€tIPMEN�"SPENC))NG: 1996 1996 1997 1998 1999 2000 2001 2002 Ado ted Amended Pro'. Pro'. Pro'. Pro'. Pro'. Pro'. CapitalOutlay 1,326,058 2,298,022 1,935,209 1,702,688 1,640,157 1,514,873 1,792,691 1,792,691 Chan e 971,964 362,813 232,521 62,531 125,284 277,818 0 Adv.Payback: Comp/Fuel 0 0 25,000 50,000 100,000 50,000 0 0 Chan e 0 25,000 25,000 50,000 50,000 50,000 0 Adv.Payback: Equipment 0 0 200,000 200,000 200,000 200,000 171,964 0 Chan e 0 200,000 0 0 0 28,036 171,964 Mgmt SysUFuel System 0 0 225,000 15,000 0 0 0 0 Chan e 0 225,000 (210,000 15,000 0 0 0 Operating Expenses 2,837,602 2,837,602 3,103,371 3,255,443 3,407,514 3,551,306 3,668,068 3,668,068 Chan e 0 265,769 152,072 152,072 143,792 116,762 0 Total Spending 4,163,660 5,135,624 5,488,580 5,223,130 5,347,671 5,316,179 5,632,723 5,460,759 Chan e 971,964 352,956 265,450 124,540 31,492 316,544 171,964 'Normal replacement schedule begins. "Parks currently owns 151 vehicles. h:luserslrenshaw1123datalgaragelmod8-6 08/09/96 9`� -�o�y GENERAL FUND/MPACT OF PARKS AND RECREAT/ON D/V/S/ON'S FLEET RENTAL * 1996 1997 1998 1��,Q 29oQ 2001 2002 Rental Impact on Parks Budget 0 254,749 220,000 220,000 220,000 220,000 0 Surcharge: Park's Equip. Adv. 0 200,000 200,000 200,000 200,000 171,964 0 Fuel Management System 225,000 15,000 0 0 0 0 0 Vehicle Purchase 971,000 594,000 376,630 314,099 188,816 0 ""` 0 ** Total 1,196,000 1,063,749 796,630 734,099 608,816 391,964 0 Contrib. to General Fund Fund Balance Adv. Payback: Comp/Fuel 0 0 25,000 50,000 100,000 50,000 0 Adv. Payback: Equipment 0 200,000 200,000 200,000 200,000 171,964 0 "2% inflation is built into the cash infusion for Fund 250, but figures for Parks are not adjusted for inflation. "*Assumes that after five years the rents will be able to finance future equipment costs. h:luserslrenshaw1123datalgaragelmod49