Title
Department of Transportation recommending the Board approve and authorize the Chair to sign a budget amendment adjusting the Fleet and Facilities budgets for Fiscal Year 2020-21 to allow for Facilities to complete an insulation project for the Fleet Shop building.
FUNDING: Fleet Internal Service Fund.
Body
DISCUSSION / BACKGROUND
The FY 2020-21 Budget for Fleet included $30,000 in appropriations in Fixed Assets - Building Improvements to add insulation to the existing Fleet Shop building. The Chief Administrative Office - Facilities Division will now complete the work for this project at $12,500 less than the amount originally budgeted. This budget transfer requests to move a portion of the existing appropriations from Fleet to Facilities so that they can purchase the materials and complete the building improvements. It is no longer necessary to capitalize these costs, so the budget transfer also proposes to eliminate the budgeted capitalization.
Budgeted appropriations for the Fleet Org need to be increased in Interfund Expense: Maintenance and Building Improvements by $17,500 to allow for a transfer to Facilities to purchase materials and compete the work. Fixed Assets: Building Improvements needs to be decreased by the originally budgeted $30,000. Fixed Assets: Capitalization Building and Improvements needs to be increased by the originally budgeted $35,000 since none of the budgeted projects need meet the threshold for capitalization. To balance these changes to the Fleet budget, Appropriation for Contingency needs to be reduced by $22,500.
Budgeted appropriations for Facilities need to be increased in Maintenance: Buildings and Improvements by $17,500, offset by an increase to Interfund Revenue: Maintenance Buildings and Improvements for $17,500.
ALTERNATIVES
The Board may elect not to approve the budget transfers as proposed, and facilities would not perform the work at the reduced cost.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
The proposed budget transfer results a savings of $12,500 in building maintenance costs. All increases in expenditures are funded by commensurate offsets or additional revenue. Funding is available within the Department of Transportation Maintenance and Operations Division - Fleet Internal Service Fund budget. This internal service fund charges costs for services to other County departments.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair’s signature on the original budget transfer and will forward the budget transfer to the Auditor/Controller for processing.
STRATEGIC PLAN COMPONENT
Good Governance, Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation