Title
Department of Transportation recommending the Board:
1) Approve the retroactive addition of one (1) partial engine to the Fiscal Year (FY) 2022-23 Fixed Asset List totaling $15,000; and
2) Decrease two (2) roll-off chipper boxes currently on the FY 2022-23 Fixed Asset List from $45,000 to $37,500 each for a total of $15,000.
FUNDING: Road Fund. (100%)
Body
DISCUSSION / BACKGROUND
On November 22, 2022, Department of Transportation (DOT) equipment mechanics determined there was a terminal failure to a portion of dump truck #23-24’s engine. Historically, DOT has ordered the necessary parts for the repair without a competitive bid, as it falls under the C-17 Purchasing Policy, 3.5 Specific Exemptions and Written Findings of Fact. DOT staff requested a quote from Riverview International Trucks, LLC. on November 29, 2022, and obtained the quote on December 7, 2022, after Riverview International Trucks, LLC. was able to locate the necessary partial engine. The invoice totaled $19,826.16 for the partial engine, which included a $5,000 core deposit, leaving the partial engine with a final cost of $14,826.16 after the core deposit with tax is reversed. DOT subsequently generated a purchase order (PO) on December 13, 2022, and it was fully approved under the Purchasing Policy exemption on December 16, 2022.
The partial engine was ordered utilizing the PO with budgeted appropriations under object 4161, equipment parts. DOT staff picked the partial engine up at Riverview International Trucks, LLC in Sacramento, California on January 7, 2023, and invoiced DOT accordingly. Staff coded the invoice as it was listed on the PO and began the payment process. Once the invoice reached the Auditors Office approval step and it was reviewed on February 8, 2023, they reached out to Fiscal staff stating it needed to be coded as a fixed asset - equipment improvement and was not considered a part. DOT and Fiscal staff provided historical justification as well as clarification that the invoice was for a partial engine. Ultimately, a final determination was made that the partial engine needed to be listed under object 6044 - Fixed Asset - Equipment Improvement.
Therefore, DOT is requesting to add one (1) partial engine to the Department of Transportation's Fiscal Year (FY) 2022-23 Fixed Asset List under 6044 - Equipment Improvements and decrease two (2) roll-off chipper boxes currently on the FY 2022-23 Fixed Asset List from $45,000 to $37,500 each for a total of $15,000. A budget transfer is not required due to realized savings from the chipper boxes.
ALTERNATIVES
The Board could decide not to add the partial engine to the fixed asset list, however, Transportation would be unable to pay the vendor for the partial engine or would be required to return the partial engine leaving the Department of Transportation down one dump truck.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Chief Administrative Office, Community Development Finance and Administration
CAO RECOMMENDATION / COMMENTS
Approve staff recommendation.
FINANCIAL IMPACT
The proposed additional fixed asset item results in no increase to Net General Fund cost due to savings realized from the procurement of two roll-off chipper boxes on the FY 2022-23 fixed asset list. A budget amendment is not needed to fund the partial engine.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Good Governance
CONTACT
Rafael Martinez, Director
Department of Transportation