TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, Interim City Manager
TITLE: Ordinance No. 2017-18, second reading, amending the Fiscal Year 2016-2017 Non-District Budget and Capital Improvement Program and Budget.
Recommended Action
Approve Ordinance No. 2017-18 amending the Fiscal Year 2016-2017 Non-District Budget and Capital Improvement Program and Budget.
Background Information
The Road and Drainage Division of the Public Works Department is requesting Commission approval to amend the FY 2017 budget in the amount of $133,270 to replace a walking excavator and telescopic excavator. Fleet Management previously established a useful life of fifteen (15) years for the telescopic excavator and twelve (12) years for the walking excavator. The current industry standard for the life cycle of both pieces of equipment is seven (7) years. Attachment four (4) included in this agenda item explains in greater detail and provides additional documentation for the change in the life cycle. The cost of both pieces of equipment exceeds estimated costs as budgeted. Staff researched and tested various types of excavators and determined the two pieces of equipment selected provide the best solution to accomplish the work. The original adopted budget of $290,000 for the walking excavator was a base price model machine which included minimal purchase options. Upon further review, the type of machine best suited for the work and site conditions included additional options to meet those needs. The original adopted budget of $265,000 for the telescopic excavator did not anticipate a 28%, ($76,234) increase in cost due to Environmental Protection Agency (EPA) imposed Emission Standards. The Emission Standards has been increasing between 9% to 15% each year. Further documentation is provided in attachment four (4) of this agenda item detailing the increase in cost. The funding will be from undesignated fund balance in the Capital...
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