HomeMy WebLinkAboutResolution No. 2010-22the ✓f'
KEMAL ALASKA
CITY OF KENAI
RESOLUTION NO. 2010 -22
Suggested by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA AUTHORIZING
THE PURCHASE OF A TRUCK FOR THE CAPITAL PROJECTS MANAGER FROM THE
CAPITAL PROJECTS MANAGEMENT FUND.
WHEREAS, the Capital Projects Manager needs a vehicle to visit job sites and
effectively manage projects; and,
WHEREAS, the Capital Project Management Fund will recover the cost of the vehicle
from the projects it manages with a monthly fee; and,
WHEREAS, the purchase will be made utilizing the State of Alaska Cooperative Fleet
Purchasing agreement with an estimated cost of S 18,940.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, the City is authorized to purchase a truck utilizing the Capital Project
Management Fund. The estimated cost is $20,000.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of
April, 2010.
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance: w
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PAT PORTER, MAYOR
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ALASKA
To: Rick Koch, City Manager
it From Terry Eubank, Finance Director
Date: April 1, 2010
Re: Resolution 2010 -22
"Village with a Past, Ci y with a Future"
FINANCE DEPARTMENT
210 Fida!go Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 ext 221 FAX: 907 283 -3014
Ordinance 2452 -2009 established the budget for the City's new Capital Project Manager.
Included in that budget is $4,000 for depreciation expense. Depreciation was calculated for the
purchase of a vehicle for the manager. The Capital Projects Management Fund is an internal
service fund and as such is accounted for utilizing the accrual basis of accounting. The accrual
basis of accounting requires the purchase of fixed assets to be accounted for differently than in
other governmental funds that use the modified accrual basis of accounting.
Purchase of the vehicle will represent the acquisition of an asset rather than an expenditure of
funds. This accounting is very similar to that of the Equipment Replacement Fund. Similar to
purchases by the Equipment Replacement Fund, the resolution before you does not represent an
appropriation but rather an authorization to purchase the truck.
The cost of the truck will be recovered from the projects managed by the Capital Project
Management Fund who require its use. Anticipated recovery for upcoming fiscal year 2011 is
$8,000.