Memorandum
City of Lawrence
City Manager’s Office
|
DATE: |
12/8/2011 |
|
TO: |
David L. Corliss, City Manager |
|
FROM: |
Casey Toomay, Budget Manager |
|
CC: |
Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager Jonathan Douglass, Assistant to the City Manager / City Clerk |
|
RE: |
Approve Public Safety Radio Purchase |
Please place the following item on the agenda for consideration by the City Commission at their meeting on December 13, 2011:
Approve purchase of 220 handheld and 200 mobile radios from TFMComm Inc., through a cooperative bid on the State of Kansas Equipment Purchase Contract.
Background
During the 2012 budget process, the City Commission approved the following plan to replace radios for the Police, Fire Medical, and Public Works departments pursuant to a federal mandate.
|
Payment Plan Approved in 2012 Budget |
||||
|
Source |
Fire |
PD |
PW |
TOTAL |
|
Infrastructure Sales Tax |
1,000,000 |
1,000,000 |
||
|
Equipment Reserve Fund |
130,000 |
470,000 |
600,000 |
|
|
Special Alcohol Fund |
30,000 |
30,000 |
||
|
Storm Water Fund |
100,000 |
100,000 |
||
|
Special Gas Tax Fund |
100,000 |
100,000 |
||
|
General Operating Fund |
30,342 |
155,900 |
67,666 |
253,908 |
|
TOTAL |
$ 1,160,342 |
$ 655,900 |
$ 267,666 |
$ 2,083,908 |
As explained in the attached memo from the Police Department, Motorola is currently offering an incentive to purchase radios. All radios the City will be purchasing are eligible for this discount, which would result in a savings of nearly $250,000. However, to take advantage of this incentive, the funds must be encumbered by December 18, 2011.
Resources Available
The City has sufficient resources to proceed with the purchase in 2011. The portion of the total cost to be paid from the general fund (approx. $74,000) could be paid upfront from the equipment reserve fund in 2011. A budget adjustment would then be made in 2012 in order to reimburse the equipment reserve fund for those costs. The remaining funds would be paid from the various funds identified in the plan. There is sufficient budget authority and adequate fund balance in all the funds to proceed in 2011. It is likely however, that 2011 expenditures will exceed 2011 revenues in the gas tax fund.
|
Payment Plan with Discount |
||||
|
Source |
Fire |
PD |
PW |
TOTAL |
|
Infrastructure Sales Tax |
1,000,000 |
1,000,000 |
||
|
Equipment Reserve Fund |
77,000 |
470,000 |
53,000 |
600,000 |
|
Special Alcohol Fund |
30,000 |
30,000 |
||
|
Storm Water Fund |
80,000 |
80,000 |
||
|
Special Gas Tax Fund |
50,000 |
50,000 |
||
|
General Operating Fund |
7,000 |
67,000 |
74,000 |
|
|
TOTAL |
$ 1,077,000 |
$ 507,000 |
$ 250,000 |
$ 1,834,000 |
By spending the infrastructure sales tax and equipment reserve funds first, then the special alcohol and storm water funds, the cost to the general operating fund can be reduced by $180,000, and the cost to the special gas tax fund can be reduced by $50,000.
Recommended Action
Approve purchase of 220 handheld and 200 mobile radios from TFMComm Inc., through a cooperative bid on the State of Kansas Equipment Purchase Contract.