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Home My WebLink About2006-10-09-Meeting Agendawww.augustaga.gov Finance Committee Meeting Committee Room- 10/9/2006- 2:30 PM FINANCE 1. Motion to approve the abatement of property taxes for 1929 Walton Way - Augusta Boxing Club headquarters. Attachments 2. Approve the purchase of one asphalt recycler for the Public Services – Maintenance Division from Asphalt Zipper, Inc., of Pleasant Grove, Utah, for $85,450.00 (Lowest Bid offer for bid 06-165). Attachments 3. Consider a request from the CSRA Community Outreach Initiative, Inc. regarding the rental of a city owned building for their operations. (Referred from September 25 Finance Committee) Attachments 4. Motion to approve Indirect Cost Allocation Study CY 2005 to be done by KPMG. Attachments 5. Motion to approve reports from the Internal Audit Department regarding the Transit Department and the Health Insurance and Payroll Deducted Benefits. Attachments 6. Request for funds to support advertising and legal fees for sheriff's levies. Attachments Finance Committee Meeting 10/9/2006 2:30 PM Abatement of taxes Department:Recreation and Parks - Tom F. Beck, Jr. Director Caption:Motion to approve the abatement of property taxes for 1929 Walton Way - Augusta Boxing Club headquarters. Background:The Augusta Boxing Club has leased the referenced property since 1995 from JLO Group, Inc. at no charge for it's training facility and headquarters. The Augusta Commission has waived property taxes on this property since every year the lease has been in effect. Analysis:The gererous donation by JLO Group, Inc. to lease this property and building for use by the Boxing Club at no charge has saved the city over $100,000 in lease payments over the past 11 years and has allowed the club to provide valuable services to hundreds of youth in our community and be recognized as one of the premier boxing programs in the nation. Financial Impact:The abatement of property taxes for 2006 would total $2,672.62. Alternatives:1. To deny 2. To approve Recommendation:#2 - to approve Funds are Available in the Following Accounts: N/A REVIEWED AND APPROVED BY: Finance. Administrator. Clerk of Commission Finance Committee Meeting 10/9/2006 2:30 PM Asphalt Recycler Department:Finance Department - Fleet Management, Ron Crowden, Fleet Manager Caption:Approve the purchase of one asphalt recycler for the Public Services – Maintenance Division from Asphalt Zipper, Inc., of Pleasant Grove, Utah, for $85,450.00 (Lowest Bid offer for bid 06-165). Background:The Augusta Public Services Department-Maintenance Division requests the acquisition of 1 new asphalt repair/recycler machine. Currently, the most abundant damage to existing road ways is failed (broken) asphalt due to extreme load pressure, weather, wear and tear. This condition accelerates with water seepage through the failed asphalt into the base material below. Once that happens, the damaged area grows until affects a large section of the roadway. The only remedy is to replace the damaged section of roadway. Currently, in order to repair this type of damage, a large work crew and heavy equipment is required. The asphalt on the failed section of the road must be removed by heavy construction equipment, loaded into trucks and taken to a dumping area. A new base has to be laid down and the section of the road re-asphalted. The “zipper” is mounted onto a front end loader and grinds the existing asphalt on the bad section of the road mixing it with the base. This actually allows for better compaction of the base material. This provides a 50 to 70% cost avoidance/savings by not having to purchase new base material. It also saves in labor and equipment operating costs associated with removing the old asphalt. Analysis:Fleet Management submitted a request for bids through the Procurement Department utilizing the Demand Star electronic bid system which offers nationwide bid coverage. The Procurement Department received quotes back from only one (1) vendor, Asphalt Zipper, Inc., of Pleasant Grove, Utah, submitted the lowest and only bid for $85,450.00. (Procurement Tab sheet attached) Financial Impact:The unit will be purchased for $85,450.00. Funding for the procurement of this equipment will through Sales Tax. Alternatives:1.Approve the award to the lowest bidder, Asphalt Zipper, Inc., of Pleasant Grove, Utah 2.Do not approve the request. Recommendation:Approve the acquisition of one asphalt recycler for the Public Services – Maintenance Division from Asphalt Zipper, Inc., of Pleasant Grove, Utah, for $85,450.00 (Lowest Bid offer for bid 06-165). Funds are Available in the Following Accounts: 324-04-1110.54-21120 // 201-82-4010.54-21120 REVIEWED AND APPROVED BY: Finance. Administrator. Clerk of Commission ASPHALT RECYCLER MACHINE Bid 06-165 Asphalt Zipper Incorporated Year 2006 Make Asphalt Zipper Model AZ 480HB Delivery 30 ARO Bid Price $82,950.00 8.00 Optional Items 8.01 Transport Trailer Included 8.02 48" Fine Cutter Head $2,500.00 TOTAL BID PRICE $85,450.00 PUBLIC SERVICES - MAINTENANCE-S/T -BID OPENING SEPTEMBER 20, 2006 @ 11:00 Finance Committee Meeting 10/9/2006 2:30 PM CSRA Community Outreach Initiative Inc. Department:Clerk of Commission Caption:Consider a request from the CSRA Community Outreach Initiative, Inc. regarding the rental of a city owned building for their operations. (Referred from September 25 Finance Committee) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Clerk of Commission Finance Committee Meeting 10/9/2006 2:30 PM Indirect Cost Study CY 2005 Department:Finance Department - Donna Williams, Interim Director Caption:Motion to approve Indirect Cost Allocation Study CY 2005 to be done by KPMG. Background:The Georgia General Assembly House Bill 491 mandates Indirect Cost Studies be performed for local governments with expenditures totaling $10 million or more. This study provides the basis of the budget for the allocation of costs to all funds receiving services from the General Fund. KPMG is one of two companies that perform this service. As KPMG performed this service last year, we were highly satisfied with their work ethic and performance. Analysis:Since KPMG computed the allocations for Augusta last year, we enjoy some efficiency in that the groundwork for the study is in place and only changes to the system and updated financial information need to be collected and entered. KPMG will prepare the A-87 Central Service Cost Allocation Plan and a Full Cost Central Service Cost Allocation Plan. The plans will utilize FY 2005 actual audited costs, and will be prepared in accordance with Federal Circular A-87, Cost Principles for State and Local Governments. The plans will be compliant with the recently revised A-87 regulations governing cost allocation plans. The Full Cost Plan will contain administrative costs, which are not allowable under Circular A-87. Financial Impact:$20,500 Budgeted in the Finance Department FY 2006 Budget for this report. Alternatives:None. This report, mandated by House Bill 491, passed in 1997 and is effective for fiscal year ending in 2005. Recommendation:Approve KPMG to update the Cost Allocation Plan. Funds are Available in the Following Accounts: 101015120 5211110 REVIEWED AND APPROVED BY: Finance. Administrator. Clerk of Commission Finance Committee Meeting 10/9/2006 2:30 PM Internal Audit Reports Department:Clerk of Commission Caption:Motion to approve reports from the Internal Audit Department regarding the Transit Department and the Health Insurance and Payroll Deducted Benefits. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Clerk of Commission Finance Committee Meeting 10/9/2006 2:30 PM Request for additional funds for advertising and legal fees for levies Department:Tax Commissioner's Office - North Williamson, Chief Deputy Tax Commissioner Caption:Request for funds to support advertising and legal fees for sheriff's levies. Background:This office has to pay for the advertising and legal fees of all properties taken to sheriff's levy sale up front, before the sale takes place. This money is recovered at the time the property is sold. Money for these fees has to be available for the levy program to continue. Analysis: Financial Impact:Requesting $15,000.00 - this money should be returned to this same account, after the sale of the property once the money is collected from the purchaser. It is turned over to the city and put back into the general fund. If this money was replaced from where it was taken, there would be no financial impact as it would pay for itself. Alternatives:Suspend levy program. Recommendation:Approve money to continue levy program and initiate an alternative replacement policy. Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Administrator. Clerk of Commission