Req.
M694
I ORDINANCE NO. 23295
2 An Ordinance creating in the Treasury of the City of Tacoma a
3 special fund to be designated as the "Department of
Public Utilities Fleet Services Fund"; specifying the
4 purposes for which said fund is created; providing
for the keeping of all books, records and accounts
5 authorizing a transfer of the fleet assets and their
respective reserve for depreciation from the Light
6 Division, Water Division and Belt Line Division of
the Department of Public Utilities, authorizing a
7 transfer in the sum of $375,000 from the same three
funds as a working fund advance to said Department of
8 Public Utilities Fleet Services Fund and directing
the manner for which Said fund shall be expended.
9 BE IT ORDAINED BY THE CITY OF TACOMA:
10 Section 1. That there be and is hereby created and
11 established in the Treasury of the City of Tacoma a new fund
12
to be known and designated as the "Department of Public
13
Utilities Fleet Services Fund" to be used exclusively for the
14
operation of the Department of Public Utilities consolidated
15
fleet management program with responsibility for all vehicle
16
administration under a fleet manager.
17
Section 2. That the Department of Public Utilities
18
Fleet Services Fund shall be used as a revolving fund which
19
shall be expended for (1) administration expenses including
20
but not limited to salaries, wages, space rental and other
21
administrative overhead; (2) operations and maintenance
22
expenses, including but not limited to purchase, lease or
23
24 rental of new or used vehicles or vehicular related equipment,
25 repairs, replacements, maintenance costs and supplies. Future
26 fleet expenses will be recovered through rental. rates,
27 established by the Fleet Manager as approved by the Manager
28 -7
29
for the General Services Division and the Director of
2
Utilities, for specific pieces of equipment rented to users.
3
Benefits received from the program by the Light., Water and
4
Belt Line Divisions will be in direct proportion to the asset
5
values transferred by each operating division to the fund.
6
Future rental rates may reflect not only cost of service but
7
also sufficient monies to assist in funding future purchases.
8
Section 3. All vehicular equipment owned or leased
9
by the Department of Public Utilities shall be an asset of the
10
11 Department of Public Utilities Fleet Services Fund. Any
outside rental or lease of vehicular equipment for Department
12
13 of Public Utilities shall be accomplished in accordance with
14 the policies established by the Director of Utilities.
is Section 4. All personal property, equipment and/or
16 assets owned or held by the Light, Water or Belt Line
17 Divisions of the Department of Public Utilities which is
18 primarily related to the Department of Public Utilities' state
19 licensed vehicular fleet or other Department of' Public
20 Utilities vehicular equipment as designated by the Director of
21 Utilities shall be transferred to the said Department of
22 Public Utilities Fleet Services Fund as of January 1, 1985.
23 The net book value of the assets of each operating division,
24 together with the associated reserve for depreciation will be
25 maintained in the asset accounts of the operating division
26 under the heading of "Investment in the Department of Public
27
28
29
Utilities Fleet Services Fund"
2 Section 5. The Director of Finance of' the City of
3 Tacoma be and is hereby authorized and directed to transfer to
4 said Department of Public Utilities Fleet Ser'vices Fund as a
5 working fund advance, from the following funds, the individual
6 sums totalling $375,000 to be used for the purpose of paying
7 the operational costs of the said Fund:
8 Fund No. Name Amount
9 470 Light Fund $3121563
10 460 Water Fund 5 9 2 2 12
450 Belt Line Fund 3,225
11 Total T,77-5,000
12 Section 6. Should the Department of Public Utilities
13 Fleet Services Fund be dissolved for any reason, any surplus
14 or deficiency, together with the original book value of the
is assets transferred to said Department of Public Utilities
16 Fleet Services Fund shall be shared by the Light, Water and
17 Belt Line Divisions on a pro rata basis in ac rdance with
18 their contributions to said fund.
19
20 Passed DEC I 1 1984
ay o@
21
22
23 At y Clerk
24
25
Requested by Public Utility Board
26 Resolution No. U-7103
27
-3-
28
29
DIVISIONS Please address reply to:
City of Tacoma
Light Department o.f Public Utilities
Water P.O. Box 11007
Tacoma, Washington R8411
Belt Line (206)383-2471
1983-84
S 67 7-0/t/ ALL-AMERICA CITY
DEPARTMENT OF PUBLIC UTILITIES
Paul J. Nolan, Director
November 14, 1984
To the Chairman.and Members of the
Public Utility Board and the Mayor
and Members of the City Council:
Re: U-7103
Theodore Barry & Associates (TB&A) in their June 1980
Management and Operations review of the Department had recom-
mended that we "implement a Fleet Management Program" and
"establish a consolidated fleet section responsible for all
vehicle administration and assign that responsibility to a
Fleet Manager." The Public Utility Board, through adoption
of policy statements and strategic plan action statements,
endorsed TB&A's recommendations. A Fleet Manager was hired
in August 1983 and since that time considerable effort has
been devoted to following the Board's direction to consolidate
authority and responsibility for all activities relative to
the Department's fleet. Earlier this year, the Management
Analyst was assigned to review the organization, funding,
and operations of the Fleet Services Section and develop
recommendations for improvement.
We are recommending that an equipment rental fund
(to be called Fleet Services Fund) be established, as per-
mitted by RCW 35.21.088, for the 1985 budget year. This
will provide for better management and control of Depart-
mental fleet assets and was recommended by the Management
Analyst in her September 25, 1984 report. Existing fleet
assets would be transferred to the fund and fleet expenses
would be recovered through rental rates established for
specific pieces of equipment rented to users. We believe
that it is in the Department's best interest to establish
the fleet services fund.
Essentially, the establishment of the fund is simply
a change in fleet accounting procedures that will -improve
management of the fleet. Operating divisions will continue
to have decision-making authority regarding equipment that
they require to perform their functions.
CITY OF TACOMA To the Chairman and Members of the
LDEPARTM,ENT QF PUBLIC UTILITIES Public Utility Board and the Mayor
and Members of the City Council:
November 14 1984
Page Two
What is proposed in establishing the fund is the transfer
to the fund of all properties, equipment, monies, assets, lia-
bilities., and operating accounts owned, held, or maintained by
the operating divisions that have been determined to be
appropriate for inclusion in the fleet services fund. There is
also a need to provide for operating cash to cover fleet ex-
penditures during the period of time-from when expenses are
incurred until the rental rates are billed and funds received.
To cover those initial operating cash requirements, a working
fund advance, to be repaid, will be necessary from the operating
divisions to be pro-rated according to the original cost of the
equipment to be included in the fund as follows:
Fund No. Name Amount
470 Light Fund $312PS63
460 Water Fund 59P212
450 Belt Line Fund 3,225
$375)000
Your favorable consideration of this recommended action
is requested.
Very truly yours,
Pa . o an
Director of Utilities
PJN:lms
WHITE Ci t'y C I e'k TO BE,COMPLETED BY
BI LIF Legal Department CITY CLERK'S OFFICE
PINK Vind,,ce Dept. REQUEST for ORDINANCE
CANAH'T' - Departme.1"I or RESOLUTION (@ ?@ ,
d -%am NO. q,
INSTRUCTIONS: File request in the City Manager's Office no later than 5:00 p.m. FRIDAY, eleven' days prior to the
Council Meeting at which it is to be introduced. List facts necessary for the City Attorney's use in preparation of ordi-
nance or resolution. Attach all material pertinent to the subject. NOTE: All appropriation requests must be cleared
and approved by the Director of Finance or Controller before submitting to City Manager or Director of Public Utilities.
(See Section 2). Departments must complete all paragraphs except 2 and 3. (If necessary, refer to Guide 15.2 (LEG 210)
Subject: Departmental Request for Ordinance or Resolution). 243f1bd11
.2,955
DATE REQUEST MADE BY DEPARTMENT/DIVISION PROGRAM
(Name and Number)
Public Utilities/
November 14, 1984 Eric J. Herrmann General Services
L
2. P roved as to Availability of Funds 3.
.2
IVIC- D'y
er rector 0 t es MXXXXftXff
ead I go
4. PREPARATION OF AN ORDINAN@E @RKSEXXXD= (indicate which) IS AEQUESTED FOR THE CITY COUNCIL
MEETING OF TUESDAY TO:
Request that the Council of the City of Tacoma create and establish in the Treasury of
the City of Tacoma a special fund to be designated as the "Fleet Services Fund" and
direct appropriate transfer of assets to the fund.
5. BACKGROUND INFORMATION (Why is Request necessary?)
The Department of Public Utilities has been reviewing fleet management functions to
develop improvements and implement a centralized fleet management program. The es-
tablishment of a separate Fleet Services Fund is proposed to pro@7ide for a distinct
accounting of fleet expenditures to improve management and control. The creation of
such a fund has been recommended by the Management Analyst, reviewed by the Director
of Utilities, City Attorney, Controller, operating division superintendents, and
Manager, General Services, and supports recommendations by several management
consultants as well as policies and the strategic plan of the Public Utility Board.
6. FUNDING SOURCE: (Enter Amount of Fundinq from each source)
Federal $State $@@City $Other Total Amount s
Fundinq for the proposed legislation is found in the budget, Division
Paqe _Fund Number & Name R N/A
L
7. 'a) Cleared by Affirmative Action Yes Conditional Approval @Not Applicable
F]
(b) Contract Compliance Approved Delay Recommended Not Applicable
F] F]Not Approved Fx
COMMENTS:
(It needed, see Guide No. 3.1 (LEG 210), Subject: Affirmative Action and Contract Compliance.)
8. STATUS: 0 NEW LEGISLATION 1-1 AMENDING LEGISLATION
Legislation amends Res/Ord. Section Chapter
9. SALIENT COMMENTS: List or identify significant information or exceptions that could be meaningful in processing
this legislation.
The establishment of a Fleet Services Fund will require transfer of operating division
assets and a working fund advance from three funds to cover expenses until first billings
are received.
10. ESTIMATED TIME REQUIRED, AFTER LEGISLATION, TO IMPLEMENT PROJECT N/A
11. ENVIRONMENTAL ASSESSMENT:
Fx Non-Action F Exempt F Declaration of Non-Significance F EIS
COMMENTS:
(If needed, see Guide No. 43 (ADM 1600), Subject: Environmental (SEPA) Public Information Center.)
12. SOURCE DOCUMENTS: (List all material filed in the City Clerk's Office as backup information for the request, and
attach said backup information.)
A. Letter from Paul J. Nolan dated November 14, 1984.
B.
C.
D.
13, SUMMARY TITLE: (A brief sentence, not to exceed fifty words, as it will appear on the Council Agenda.)
Establishment of Fleet Services Fund
14. INDEX DATA: (Provide a minimum ot three cross reference key words or phrases other than department or program.)
A. Fleet Services Fund
B. Fleet Management
C. Equipment Rental Fund
2=41' DEC 4 IT"14 Passed DEC II 1984
1 S. Ordinance First Read
Resolution Adopted
Comments or Other Action Taken:
RESOLUTION NO. U-7103
WHEREAS it is desired to create by City ordinance a
2
iew fund for the City of Tacoma to be known and designated as
3
the "Department of Public Utilities Fleet Services Fund",
4
which ordinance specifies the purposes of the fund and
5
appropriate monies to be used by the Department-, of Public
6
Jtilities Fleet Management to control departmental fleet
7
assets, and
8
WHEREAS it is desired that the City Council pass an
9
rdinance creating said fund substantially in the form as that
10
on file with the Clerk of the Board, providing that all assets
1 1
and funds transferred to said fund shall be utilized in
1 2
accordance with Section 4.5 of the City Charter and the Laws
13
14 of the State of Washington, and the complete details of said
15 fund have been provided to the Board by a letter to the Public
16 Utility Board from the Director of Utilities dated
17 November 14, 1984 which is on file with the Clerk; Now,
18 therefore,
19 BE IT RESOLVED BY THE PUBLIC UTILITY BOARD OF THE CITY OF TACOMA
20 That the ordinance creating the Department of Public
21 Jtilities Fleet Services Fund is approved and the Council of the
22 City of Tacoma is requested to concur in the recommendation and
23 to pass the ordinance substantially in the same! form and content
24 as that on file with the Clerk and with final form to be
25 approved by the City Attorney.
Approved as to form & legality: John A. Willis
26 Chairman
William J. Barker
27 Earl R. Pennington
Chief Assistant City Attorney
28 Lorraine Graeber Secretary
November 28, 1984
29 Clerk Adopted_