Title
Department of Transportation recommending the Board:
1) Approve the addition of one (1) air compressor trailer to the Department of Transportation's FY 2019-20 Fixed Asset List totaling $22,500; and
2) Approve the $22,500 price decrease on the Fixed Asset List for the paving machine bringing the revised budget from $280,076.08 to $257,576.08.
FUNDING: Road Repair and Accountability Act of 2017 (SB1-RMRA). (State Funding)
Body
DISCUSSION / BACKGROUND
The Department of Transportation, Maintenance and Operations Division, (Transportation) is requesting authorization to add one (1) item to the Fixed Asset list. The piece of equipment Transportation is requesting to be added to the Fixed Asset list is an air compressor trailer, which will replace existing equipment. The current air compressor trailer is twenty-one (21) years old and is no longer in compliance with Air Resource Board Regulations as of November 2019. The air compressor trailer is used by road crews and the bridge crew to run portable jack hammers and tampers. The air compressor trailer was identified in Fiscal Year 2018-19 budget but was ultimately not purchased due to timeline and budget constraints and was not identified in Fiscal Year 2019-20 budget due to higher priority replacements. However, with the savings from the paving machine Transportation would like to replace the trailered air compressor as it is an essential piece of equipment for road crews and the bridge crew to complete their jobs in the field when repairing roads and bridges.
Transportation is requesting a change in the individual equipment budgets currently on the FY 2019-20 Fixed Asset list, which would allow for the purchase of the air compressor trailer without an increase in the overall budget for Transportation's fixed assets.
ALTERNATIVES
The Board may elect to not approve the additional fixed asset item to be included on the FY 2019-20 Fixed Asset list; however this would leave Transportation with a twenty-one (21) year old air compressor that is unreliable and has reached its life expectancy.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
It is recommended that the Board approve this item.
FINANCIAL IMPACT
Funding for the equipment is available in the Road Fund due to Road Repair and Accountability Act of 2017 (SB1-RMRA) revenue. The proposed additional fixed asset item results in no increase to Net General Fund cost due to savings realized from the procured paving machine, and no budget amendment is needed to purchase the item.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Good Governance, Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation