7.3. SR 06-04-2007
City of
Elk: ~
River
REQUEST FOR ACTION
To
Ci Council
Agenda Section
Administration
Meeting Date
June 4, 2007
Item Number
7.3
Prepared by
Bruce West, Fire Chief
Dave Potvin, Liquor Store Manager
Tim Simon, Finance Director
Reviewed by
Lori ohnson, Ci Administrator
Reviewed by
Item Description
Consider Transfer of Forfeiture Vehicle from the Police
Department to the Fire Department and Request to Purchase
Third Unmarked Vehicle for the Police Department.
Action Requested
Approve the transfer not to exceed $24,900 from the Municipal Liquor Fund to the General Fund for the
purchase of the DWI forfeiture vehicle previously authorized by Council and transfer the use of the
vehicle from the Police Department to the Fire Department. In addition, approve the purchase of a third
unmarked vehicle not to exceed $15,864 for the Police Department.
Background/Discussion
On May 14, 2007, Council authorized the Police Department to purchase a forfeiture vehicle (4-wheel
drive SUV) from the 2007 equipment certificates. After the Council approved the purchase of the
vehicle, further discussions took place between the Police and Fire Departments in conjunction with
working on their 2008 budget and capital improvement plan (CIP). Upon additional review, it was
determined that fiscally there would be a greater savings and a much larger return on the investment if the
Fire Department placed the forfeiture vehicle into service. Since the Fire Department needs to replace a
2000 Ford Explorer, it appears that the forfeiture vehicle would provide a greater benefit to the
community of Elk River if used by the Fire Department on a daily basis.
The Fire Department, as part of the 2008 CIP planning process, was going to include replacement of the
Fire Department's 2000 Ford Explorer in the amount of $40,000. Since the Liquor Store Manager has
expressed an interest in transferring funds to cover the vehicle purchase, a net cash savings would be
$15,100 if Council approved this Ford Explorer replacement in 2008 as part of the budget process.
Dave Potvin (Liquor Store Manager) would like to continue using profits from the liquor store operations
for visible and tangible purchases and would like to transfer funds to cover the purchase. This would be
a good example of the benefit of our liquor stores to the tax payers of Elk River.
Financial Impact
The Fire Department would purchase the forfeiture vehicle and the Municipal Liquor Fund would
transfer an amount not to exceed $24,900 to cover the cost of the purchase. The original cost was
$19,300 plus up-fitting the vehicle to a final amount not to exceed $24,900. With the transfer from the
Liquor Fund, the 2008 General Fund would not have to budget the $40,000 replacement of the Fire
Department's 2000 Ford Explorer.
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The Police Chief would still use $15,864 of the $20,000 budgeted in the 2007 equipment certificates for a
2007 Chevy Impala which would complete the replacement of the three unmarked squads.
Attachments
. A resolution authorizing a transfer from the Municipal Liquor Fund to the General Fund.
Action
Motion by_
Second by _
Vote
Follow Up
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RESOLUTION 07-_
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING A TRANSFER FROM THE MUNICIPAL
LIQUOR FUND TO THE GENERAL FUND
WHEREAS, The City Council approved the purchase of a DWI forfeiture vehicle on May 14,
2007, and,
WHEREAS, The City Council has reviewed the request and determined it to be a sound financial
practice; and,
WHEREAS, It has been determined that an amount not to exceed $24,900 will be transferred out
of the Municipal Liquor Fund to provide funding for the forfeiture vehicle purchase;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk River
makes the following transfer of funds from the Municipal Liquor Store Fund:
2007 General Fund
$24,900
Passed and adopted this 4'h day of June 2007.
Stephanie Klinzing, Mayor
ATTEST:
Tina Allard, City Clerk
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