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HomeMy WebLinkAbout06-11-2015 B1 Padilla, Grigsby, Codron�a7 Council Memorandum t TO: City Council FROM: Wayne Padilla, Finance & I.T. Director Daryl Grigsby, Public Works Director Michael Codron, Assistant City Manager DATE: June 11, 2015 VIA: Katie Lichtig, City Manager COUNCIL MEETING:- 1� —'��.� ITEM NO,:__aA 11JN 11 2015 SUBJECT: Response to Council member Questions concerning Fleet and Local Revenue Measure A City Council member asked the following questions about the proposed fleet replacements and the relationship to the Local Revenue Measure. Question: Please explain how the fleet replacement fund and measure g fleet purchases relate to each other. While the Local Revenue Measure has been in place, the City has used some portion of that revenue stream to support the Fleet Replacement Funds. In some years this revenue was a significant portion of the support for those funds. As shown in the annual audit reports, certain items that were replaced were reported as Local Revenue Measure costs, such as streets paver and roller, the stormdrain vacuum truck, police cars purchases and payments on fire truck leases,. It has not been the City's practice to make the Local Revenue Measure funds the sole source of funding for the replacement of fleet. The connectivity to the language in the local revenue measure is that the vehicles are critical to the delivery of essential services in the areas outlined in the ballot language. Specifically the language in the measure states: To protect and maintain essential services and facilities — such as open space preservation, bike lanes and sidewalks, public safety; neighborhood street paving and code enforcement; flood protection; senior programs and other vital services and capital improvement projects... As outlined on pages A -24 through A -26 every vehicle funded with Local Revenue Measure funds has a direct connection to the program specifically mentioned in the Measure G ballot language. In essence, the logic is the equipment is essential to providing services to the community; these are one -time expenses that without funding from the Local Revenue Measure would not happen without removing funding from other priorities; and /or without the vehicle the staff would be unable to complete their work tasks. It is also worth noting that a major change in 2015 -16 is that the Local Revenue Measure (Measure G) monies are being tracked in a sub -fund of the General Fund. Page 2 -24 through 2- Council Memo — Unfunded Liability Questions (1/16/2015) Page 2 26 of the CIP book outlines the Local Revenue Measure CIP projects. This causes a change in our mode of reporting Capital Improvement Plan costs so that they appear separate from the other General Fund supported replacement funds (General Fund Fleet Replacements which are NOT funded by local revenue measure funds are on 2 -27 and 2 -28). This allows the Local Revenue Measure revenues and expenditures to be segregated from all other activity. This will facilitate reporting in the future that complies with the expectations that have been established in the Local Revenue Measure Ordinance and as discussed with the REOC. Question: Is Measure G proposed to be the sole source of funding for the fleet? No. In 2015 -17, non - Measure G funds are programmed for Rental Inspection Program vehicles, Parks Equipment and Vehicles, Swim Center Service Body Truck, Tree Maintenance vehicles, and other vehicles such as I.T. van, Building inspection trucks, City pool cars, Fire Emergency Response Pumper (debt service) and Streets Maintenance Truck Sweeper Unit (debt service.) These can be found on pages 2 -24 through 2 -26 in the CIP book. In total for 2015 -17 the General Fund's Fleet Replacement Fund is using approximately $2.2 million non -Local Revenue Measure funds to replace vehicles and equipment that have exceeded their service life. For the same period a total of $1.5 million Local Revenue Measure funds will be used to purchase vehicles and equipment. Question: What measures are being taken to make the fleet fuel and energy efficient? The city fleet has 292 active 'rolling stock' or pieces of equipment. The measures being taken to make the fleet fuel efficient are as follows: 1. Every proposed replacement or new purchase is evaluated to ensure it has the right functionality and is "right- sized." This ensures the most fuel efficient vehicle for the task at hand is purchased. 2. Timely replacement of existing vehicles. As a result of enhanced State and Federal fuel economy standards, new vehicles attain improved fuel efficiency over older models. For example, the new field work truck, the F -150 gets 19 miles per gallon (MPG) as compared with the existing rating of 9 MPG. In general, the fuel economy improvement increases as the size of the vehicle decreases. So, the overall percent improvement in a sedan will be greater than a large truck. Nevertheless, the new models get much better fuel efficiency. 3. For future sedan and other smaller vehicle purchases, Fleet staff and end user departments will evaluate the cost, availability and possible use of hybrid, all- electric, or other energy efficient vehicle. Currently there are five in the overall city fleet. 4. The Fleet Manager is staying current with technological advancements for fuel efficiency in larger trucks for future reference. This is a currently an evolving area relative to reliability and cost, and the Fleet Manager is aware of trends and improvements in this area. Please contact Assistant City Manager Michael Codron for further clarifications.