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HomeMy WebLinkAboutCOM 0569.006 2002-2004 YY OI y TT~II Harry Kim '0 i-' ~ ~B ode C. McClure Mayor ~ t ~ Director 2G04 APR 5 Af4 9 AO Ronald K. Takahashi ~.tt'~~*~~~ rt~~ggq{~~pjtt~~tL* f\~~_ ~ Deputy Director DEPARTMENT OF PUBLIC WORKS Aupuni Center 101 Pauahi Street, Suite 7 ~ Hilo, Hawaii 96720-4224 (808)961-8321~Fax (808)961-8630 April 5, 2004 Honorable James Arakaki, Chairperson and Members of the County Council Hawaii County Council 25 Aupuni Street Hilo, HI 96720 RE: Communication No. 569 -Fuel Tax Increase Proposal Attached is the information requested by Council Chairperson Arakaki that shows the budgetary effect of eliminating the six requested equipment operators and their equipment. There would be ahalf--cent ($0.005) savings in the administration's fuel tax proposal. Without these requested positions, the Highway Maintenance Division will not be able to maintain its grass cutting schedule and will continue to fall behind in their work. Department of Public Works Highway Maintenance Division Budget Narrative for FY 2004-OS (Page 6 annotated and 7). These two pages, one of which has been revised, shows the annual savings by eliminating the six equipment operators and their equipment from the administration's fuel tax proposal. (The originals were previously submitted as part of Communication No. 569.1.) Fuel Tax 2004 -Highlights (Page 3 of 5) This revised page has changes shown in italic. The revised costs are then used to determine the needed fuel tax increase. For this case scenario, it would be 3.5 cents. The administration's proposal is for 4.0 cents, so there would be a half-cent ($0.005) savings. (The original was previously submitted as part of Communication No. 569.1.) If you have any questions or concerns, please contact me at 961-8324. A O D: Bruce C. McClure Harry Ref. To• Preseeter L Director Mayor Ref. Uate Attachments The breakdown by fiscal year follows: Fiscal Year District Posttion Cost, Equipment Cost 2004-05 S Hilo (5) Lab II j $115,885 (1) 6-Pass $ 40,000 N/S Kohala ~ (2) Lab II ' 46,354 ~ (1) 6-Pass ~ 40,000 _ , N/S Kona (7)-Lab II 162,239 (1)6-Pass 40,000 Kau (2) Lab II i 46,354__ (1) 6-Pass 40,000- Puna 7 Lab II 162.239 ~ (3) 6-Pass 120,000 (4}p,9eever 22&00& _ . Totals (~3j Lab II $67533;&7-}3 (7) 6-Pass $280,000 ' re~+,wad (New positions budgeted at an 11-month alary.) , Fiscal Year District- Posdion Cost Equipment Cost ,.,_2005 06 S Hilo {1-) EE}L i--$~38g N/S Kohala ~ -(~)-€9-L ~ - 2~3g~- i N/S Kona °~~P _ Puna _ 6..LabII 139062... '^au1o;~FYo4~ Totals (6) Lab II $139,062 re.rovec{ (New positions budgeted at an 11-month salary only. Add positions & associated costs as requested in FY 2004-05.) _ Fiscal Year District Position Cost Equipment Cost 2006-07 ' (Add positions & associated costs as requested in FY 2004-05 & 2005-06.) The breakdown by district follows: , , Distract Position Equipment- S Hilo (5) Lab II (4j-E6-F (1) 6-Pass ' ~YJ-RAower N/S Kohala (2) Lab II (-1}E9-I (1) 6-Pass - (4}i~Aewer- N/S Kona ! (7) Lab II ~-€9-I (1) 6-Pass (-?-)iv}ower- I Ka'u (2) Lab IL (1) 6-Pass, Puna 13 Lab 11 ~ I 3 6-Pass A(~~ A Totals (29) Lab II (6j-E6 1 (7) 6-Pass (6jivfower 04-05-Budget Narrative with 5 to t Prop (2-Yr) Page 6 03/10/04, 9:18 AM Projected additional associated costs include: Fringe Benefits: Current fringe benefit rate is 59.34%. Safety Equipment: Laborer II: $300 per employee for first year $200 per employee for subsequent years Equipment Operator I: $300 per employee for first year $200 per employee for subsequent years Small Tools: Laborer II: $100 per employee for first year $100 per employee for subsequent years Equipment Operator I: $200 per employee for first year only Equipment Repairs: $1,000 per equipment for first year (year acquired) $1,000 per equipment for subsequent years Fuel/Lubricants: $2,000 per equipment for first year (year acquired) $2,000 per equipment for subsequent years Equipment Parts: $1,000 per equipment for first year (year acquired) $1,000 per equipment for subsequent years Misc Equipment: Mobile Radio: $2,600 per 6-Passenger Dump Truck Hamakua Baseyard - $700 000 (Account No 5301 02-115) Construction of a new baseyard facility is requested due to the condition of the present facility. The present warehouse is an old military quonset but building that has a leaking roof, electrical problems and requires high maintenance. It has become too small for the storage of our current equipment and supplies. Also, the present facility is not on County property. A possible site (on County property) has been located in the Paauilo area. This would centralize operations for the North Hilo/Hamakua districts and make operations more efficient. Hamakua Road's Office/Misc Eouioment - $8 860 (Account Nos 5301 06 450 and 5301 06 480) Various office and miscellaneous equipment purchases are requested for the new Hamakua Road Baseyard. Roadside Maintenance - Fencino - $190 000 (Account No 5301 76 1151 Fencing installation is requested for new buildings at Hamakua, Kona, Kau and Puna Baseyards. This will protect our equipment/facilities and deter vandalism. 04-05-Budget Narrative with 5 l0 1 Prop (2-Yr) Page 7 03/10/04, 9:18 AM Fuel Tax 2004 -Highlights (Without 6 Equipment Operators) Changes shown in italics HIGHWAY FUND -PROJECTED FUEL TAX INCREASE Personnel: Highway Maint. Traffic Highway-29 positions $ 1,179,983 Traffic- 17 positions 837,109 Supplies $ 36,700 87,235 Equipment replacement $ 600,000 133,000 1,816,683 1,057,344 Annual additional recurring expenditures S 2,874,027 Assumes $820,000 fuel tax revenue per 1 cent $ 0.022 $ 0.013 0.035 One time costs: Highway add'I equipment $ 298,200 Traffic W Hawaii new facility $ 850,000 Traffic E Hawaii facility imprv $ 300,000 Traffic Add'I equipment $ 233,400 Add'I materials and supplies $ 450,000 Add'I administrative costs (travel, training, etc.) $ 10,700 Contractual catch up costs $ 60fi,000 $ 2,450,100 TOTAL ONE TIME ONLY COSTS TO KEEP UP: (A) $ 2,748,300 Available Fund Balance at FY end 6/30/03 $ 2,994,498 TOTAL AN Add Assumed Appropriation lapsing to FB $ 500,000 (B) $ 3,494,498 B-A $ 746,198 Assumed fuel tax increase if shortfall (B-A) above Revised: 04/05/04 ANTICIPATED FUEL TAX INCREASE PER GALLON 0.03Jr page 3 of 5