HomeMy WebLinkAboutAGENDA REPORT 1997 0416 CC REG ITEM 10F?.�9.3 (4) f 30 &.q(1,,�)(4a)
rrEM o. F.
CITY OF MOORPARK CPPYOFMOORPAMCMJFaO"U
CITY COUNCIL AGENDA REPORT City C4uno Mating
of 199-Z
TO: The Honorable City Council ACTION: /1
FROM: Donald P. Reynolds Jr., Administrative Services Manage
DATE: April 9, 1997
SUBJECT: Consider a Line Item Transfer for the Purchase of a Postage Folding Machine
and Reappropriation of Funds in the General Fund, Community Development
Fund and Gas Tax Fund
Summary
Due to a substantial increase in mass mailings over the past three to six years, staff is asking
the Council to consider the purchase of a postage folding machine, at an estimated cost of
$620. This money is not currently budgeted and exceeds the amount of the City's policy for
capitalization of fixed assets ($500). Therefore, in this report, staff will explain the need for
this machine, and describe potential funding sources.
Specifications and Needs
Three different City divisions generate the majority of mass mailings, at between four to nine
times each per year, (City total of 15 to 30 mass mailings per year). Mass mailings include a
notice or letter mailed to more than 100 persons. The most common mailings are from
Community Development announcing developer driven public hearings. In the past nine
months, four such mailings have been completed, averaging more than 465 pieces each. It is
estimated that by itself, the Community Development Division will mail seven to nine such
mailings each year. Other divisions such as Recreation, use mass mailing to advertise
special events and focussed residential outreach activities to promote new programs. Public
Works routinely notifies business owners and residents prior to the initiation of a street
improvement project. On occasion, the Moorpark Redevelopment Agency and Solid Waste
divisions will conduct similar outreach to business owners.
A mailing of 450 pieces may take as long as a week for one to two part-time clerical staff
members to complete, folding each piece stuffing the envelopes. When a deadline is
pending, reliance from part-time staff to complete the job is abandoned, using costly full -time
positions including senior planners and division managers, to complete the job on time. If one
considers the cost of a full -time staff position related to the proposed capital outlay, the cost
of a folding machine could pay for itself in less than one year.
The City is in receipt of three informal bids for a folding machine. These machines fold up to
9,200 pieces per hour. They can also fold up to three stapled pages at one time. Prices for
the equipment range from between $805 to $620 each.
000157
Possible Funding
A budget savings exists in two different capital equipment outlays which could be used to
purchase the machine. One is related to the shared expenses linked to the City's phone
upgrades, (projected savings of $1,500), and the second is related solely to a savings in
Community Development, (projected savings of $700).
Like other related postage costs, this equipment would be shared by all divisions, and it would
make sense therefore, that these costs also be shared. The funding for the phone equipment
upgrade cost is split amongst five divisions and four different funds in the same way as the
General Overhead costs and some other capital equipment. Of the $10,000 appropriation
shared by these divisions, approximately $1,500 will be saved divided amongst each fund.
The difficulty in applying this approach to this purchase, is that it is common for
Redevelopment to not have any, or perhaps just one mass mailing per year. Therefore, staff
is recommending a split in costs which relies upon the cost savings to the phone upgrades
shown above, but utilizes a variation of the cost split by excluding Redevelopment. It is
recommended, based on estimated use, that the funding be split 45% to Community
Development, and 25% General Fund (20% to Recreation and 5% to Administrative
Services), and 30% Gas Tax/Public Works.
The table provided in the Attachment A illustrates the current budget and projected savings,
and the proposed redistribution of these savings, applied to the mail folding machine. As a
line item transfer, there is no proposed impact on budgeted fund balances, and thus, there is
no resolution needed for this transaction.
That the City Council approve the proposed line item transfer from Improvements Other than
Buildings to Office Equipment, as shown in the Attachment, reappropriating the cost savings
from phone upgrades, for the purchase of a mail folding machine.
Attachment: Proposed Line Item Transfer
2
000158
ATTACHMENT "A"
PROPOSED REDISTRIBUTION OF PHONE COSTS SAVINGS
Current Phone Upgrade Budget, Actual Costs, and Savings Distribution:
Fund and Line Item
Phone
Budget
Applied to
Savings to
Cost Split
Applied
Actual Cost
Each Fund
100.500.5003.000.9903
°
45-00%
$4,500 00
$3,819.08
100.700.5003.000.9903
10.00%
$1,000.00
$848.69
«<a`
220.600.5003.000.9903
20.00%
$ 2 000.00
$1,697.37
240.801.5003.000.9903
°
15.00%
1 00.00
, $ ,5
$ 1 273.03
?v:{ ><'`< i .
.;:.,.. :...:::..::.....
410.504.5003.000.9903
1 0 0 0%
$ 1 , 000.00
$ 848.69
220.600.0000.000.9905
45.00%
' <_`}' <F`'`
$279.00
$23.63
TOTAL
100.00%
$10,000.00
$8,486.86
$40.97
Proposed Redistribution of Phone Upgrade Savings, and Budget Reappropriation:
Fund /Line Item
Folding
Transfer of
Applied
Net Savings
Machine
Savings from
Percentages
Proposed
Phone
Cost Split
Upgrade
100.500.0000.000.9905
5.00%
$31.00
$649.92
100.700.0000.000.9905
20.00%
« }` ` >:'
$124.00
$27.31
220.600.0000.000.9905
45.00%
' <_`}' <F`'`
$279.00
$23.63
240.801.0000.000.9905
°
30.00 /o
`
;:: >::;:<:,
$186.00
$40.97
410.504.0000.000.9905
00%
` "''
$0.00
$151.31
TOTAL
100.00%
'? ;'
$620.00
$893.14
3
000155