Title
Ordinance No. 14-63 amending Ordinance No. 13-77 (2014 Appropriation Ordinance) for a Supplemental Appropriation to the Cemeteries Fund in the amount of $73,900 for the purchase of vehicles, equipment and a computer system upgrade
Body
From:
Karen Palus, Director of Parks, Recreation and Cultural Services
Will DeBoer, Cemetery Operations Administrator
Summary:
The attached supplemental appropriation ordinance from the Cemeteries Division, Evergreen and Fairview, is to increase the spending authority $73,900 in order to address two operational issues that have occurred this year related to replacement of equipment lost in a burglary and a required computer system upgrade.
Previous Council Action:
None.
Background:
The City Cemeteries, Evergreen and Fairview, are enterprise operations and therefore receive no taxpayer assistance. On February 23rd the maintenance facility at Evergreen Cemetery was broken into. The burglary was particularly devastating because of the amount of equipment and tools that were stolen including a 4X4 pickup with a dumping bed and a utility trailer that were loaded with as much equipment and tools as they could carry. Staff has begun replacing the highest priority equipment but the Division's 2014 budget does not have the capacity to replace the stolen vehicle and all the other equipment that was taken. Cost to replace the vehicle, trailer and equipment as well as repair onsite damages is estimated at $62,700. As an enterprise operation of the City, the Division is self-insured. While minor vandalism has occurred, there has never been such a significant loss for the enterprise. As a result of this latest incident, an additional insurance policy has been purchased to protect vehicles and property in our facilities.
The second issue pertains to the cemetery management software system and the unanticipated expense occurring this year. The Division was informed in January of this year that due to new software upgrades for our cemetery management system the existing configuration could not be supported or maintained. The cemetery management system is mission critical to the City Cemeteries. The cemetery computer system contains all burial data, financial records and other tools used in business applications. Our software provider needs to schedule two one-week training and upgrade visits in order to set up and establish the new management system at a total cost of $11,200.
In a normal year the Cemeteries Division could work to find savings for the new cemetery management software system within the existing budget. However, the combined costs associated with the break-in and the software upgrade are too large to absorb within the existing budget. The Cemeteries Division is asking for a supplemental appropriation in the amount of $73,900 from the Cemeteries Division fund balance to address the estimated costs outlined in Exhibit A. Currently, the fund balance contains approximately $350,000.
Financial Implications:
The attached supplemental appropriation for $73,900 will allow the Cemeteries Division to increase its spending authority to address the costs of the break-in and the computer system upgrade. Based on 2013 year-end, the unrestricted fund balance for the enterprise is 27.4% of its annual expenditures. Following the appropriation, this figure will drop to 21.5%.
Board/Commission Recommendation:
N/A
Stakeholder Process:
N/A
Alternatives:
City Council could decline to appropriate these funds in which case the Cemeteries Division would not replace all of the stolen equipment.
Recommended Action
Proposed Motion:
Move approval of the proposed ordinance for a supplemental appropriation to the Cemeteries Division in the amount of $73,900 for the purchase of replacement equipment and a computer system upgrade.
Ordinance Language
Ordinance No. 13-77 is amended by increasing the expenditure appropriations of the Cemeteries Fund by $73,900 for the replacement purchase of vehicles and equipment in addition to paying for an upgrade and training for the Cemeteries' computer system.