LEGISLATIVE ACTION ITEM
SPONSOR: Ashton J. Hayward, III, Mayor
SUBJECT:
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Supplemental Budget Resolution No. 17-10 - Replacement of Damaged Vehicles - Sanitation Services
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RECOMMENDATION:
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That City Council adopt Supplemental Budget Resolution No. 17-10.
A RESOLUTION AUTHORIZING AND MAKING REVISIONS AND APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2017; PROVIDING FOR AN EFFECTIVE DATE.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
On January 19, 2017 the City of Pensacola Sanitation Services experienced a loss of one garbage truck and two recycling trucks due to a fire incident. These trucks will be replaced, however, while staff pursues purchase of these three vehicles and settling insurance, two trucks will need to be rented for a period of approximately 9 months.
The estimated costs to rent the trucks is approximately $150,000 with anticipated insurance reimbursement up to $100,000 of that cost. Additionally the purchase of the three vehicles will cost approximately $300,000 each for a total amount of $900,000. At this time, the amount of insurance proceeds is undetermined. Upon reimbursement from the insurance company the Sanitation Fund Balance will be reimbursed by the amount received from the insurance company.
The attached supplemental budget resolution will appropriate the cost to purchase the trucks as well as the City’s portion of the rental costs.
PRIOR ACTION:
None
FUNDING:
Budget: $ -0-
Actual: $950,000
FINANCIAL IMPACT:
Approval of the Supplemental Budget Resolution will appropriate the funds necessary to purchase the replacement trucks as well as the costs associated with the rental of trucks. Funding will come from the Sanitation Fund Balance and will be reimbursed by the amount of insurance proceeds received.
CITY ATTORNEY REVIEW: Yes
1/27/2017
STAFF CONTACT:
Eric W. Olson, City Administrator
Richard Barker, Jr., Chief Financial Officer
Jerry Moore, Sanitation Services and Fleet Management Director
ATTACHMENTS:
1) Supplemental Budget Resolution No. 17-10
2) Supplemental Budget Explanation
PRESENTATION: No end