Title
Department of Transportation recommending the Board:
1) Approve and authorize the Chair to sign a Budget Transfer adjusting Transportation's budget for Fiscal Year (FY) 2024-25, increasing Fixed Assets - Equipment by $1,700,000 (4/5 vote required);
2) Add four (4) 10-wheeler dump trucks to the FY 2024-25 Fixed Asset List at $300,000 each; and
3) Add two (2) 6-wheeler dump trucks to the FY 2024-25 Fixed Asset List at $250,000 each.
FUNDING: Road Fund (100%).
Body
DISCUSSION / BACKGROUND
Department of Transportation, Maintenance and Operations Division (Transportation) is requesting to add an additional four (4) 10-wheeler dump trucks and two (2) 6-wheeler dump trucks to the Fiscal Year (FY) 2024-25 Fixed Asset list with identified road fund savings from Fiscal Year 2023-24.
The addition of the four (4) 10-wheeler dump trucks and two (2) 6-wheeler dump trucks is due to recent California Air Resource Board (CARB) released new requirements on heavy equipment dealerships. The new requirements are placed on heavy equipment distributors of class 6 trucks and greater. They are required to sell one (1) electric vehicle (EV) of same class in order to sell up to ten (10) diesel or gas pieces of equipment. Once equipment is purchased, it is grandfathered into the CARB program and is not required to be replaced with an EV until end of life. Transportation is not equipped to purchase EV equipment due to budgetary constraints, infrastructure and equipment run times. Transportation continues to work with dealerships to find diesel equipment allocations that other organizations have given up.
ALTERNATIVES
The Board could choose not to approve the addition of the six (6) pieces of equipment to the FY 2024-25 Fixed Asset list; however this would leave Transportation with the requirement to purchase an EV in FY 2025-26 based on CARB requirements that will not be able to be utilized due to lack of infrastructure and lengthy timelines for site analysis.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The proposed budget transfer results in no increase to Net County Cost. All increases in expenditures for Transportation fixed assets are funds that were identified as increased Public Utility Franchise Fees in FY 2023-24 and increased Highway Users Tax revenue based on the most recent estimates from California State Association of COunties. Approval of the budget transfer does require 4/5 vote because the total budget is being increased.
CLERK OF THE BOARD FOLLOW UP ACTIONS
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
Priority: N/A
Action Item: N/A
CONTACT
Rafael Martinez, Director
Department of Transportation