Title
Department of Transportation and Environmental Management Department recommending the Board approve and authorize the Chair to sign a Budget Transfer adjusting the budget for FY 2019-20 for previously Board approved items, Legistar 19-0992, 19-1058, and 19-1045. (4/5 vote required)
FUNDING: Fleet Internal Service Fund and Accident Fund, CSA No. 10 Solid Waste Funds, and CSA No. 10 Liquid Waste Funds.
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DISCUSSION / BACKGROUND
Department of Transportation, Fleet Services:
The Department of Transportation (Transportation), Fleet Services presented Legistar item 19-0992 requesting to add one (1) replacement vehicle to the Fleet Fixed Asset list. The vehicle, a 2019 Dodge Charger SXT AWD, deemed a critical replacement for the Sheriff’s Department, was requested to replace Fleet vehicle #16-271 which was being totaled. It was necessary to get the vehicle added to the Fixed Asset list as soon as possible so that the vehicle could be ordered quickly. It was determined that a budget transfer would be taken separately, after the adoption of the budget. The Board approved this item on July 23, 2019 and this Board item requests to approve the budget transfer for this item.
Additionally, Transportation, Fleet Services presented Legistar item 19-1058 requesting the addition of four (4) Chevrolet Tahoe PPV Police Patrol SUV’s and one (1) Chevrolet Tahoe PPV Probation Specifications to Transportation’s Fleet Fixed Asset list. These assets were ordered, but not delivered within the 2018-19 fiscal year due to production timelines. This item, approved by the Board on August 6, 2019 allowed these vehicles to be carried forward to the FY 2019-20 budget and added to the Fixed Asset list. It was determined that a budget transfer would be taken separately, after the adoption of the budget. This Board item requests to approve the budget transfer for this item.
It was also discovered that there was an error in the submitted budget that this Board item requests to correct. An additional vehicle was added at the end of the budget process in the amount of $62,856, but the offsetting budget entry for the Fixed Asset Capitalized Equipment was never added to the budget.
To accommodate the addition of the above mentioned vehicles, as well as correct the budget error, the Transportation Fleet budget needs to be amended as follows:
Budgeted revenues in the Fleet budget need to be increased in Operating Transfers In - Fleet by $117,500. Budgeted appropriations in the Fleet budget need to be increased in Fixed Assets - Vehicles by $246,930, decreased in Fixed Assets Capitalized Equipment by $309,786, and increased in Appropriation for Contingencies by $180,356.
Budgeted appropriations in the Probation Department's budget need to be increased in Operating Transfers Out - Fleet by $7,500, offset by a decrease in Professional Services in the amount of $7,500.
Budgeted appropriations in the Sheriff's Department budget need to be increased in Operating Transfers Out - Fleet by $110,000, offset by decreases to Fixed Assets in the amount of $90,000 and Minor Equipment Vehicles in the amount of $20,000.
Environmental Management Department:
The Environmental Management Department (Environmental Management) presented Legistar item 19-1045 requesting the addition of three (3) tankless water heaters to the Environmental Management Fixed Asset list. These items were included in the FY 2018-19 budget and Fixed Asset list, but were not able to be purchased and delivered within the 2018-19 fiscal year. This item, approved by the Board on July 23, 2019 allowed these items to be carried forward to the FY 2019-20 budget and added to the Fixed Asset list. It was determined that a budget transfer would be taken separately, after the adoption of the budget. This Board item requests to approve the budget transfer for this item.
Additionally, Environmental Management had forty-four (44) recycle bins that were included in the FY 2018-19 budget. These were not able to be purchased and delivered within the 2018-19 fiscal year. Grant funds from 16/17 City County Payment Program, which were designated for this purchase, have been deferred to the FY 2019-20 budget. This item requests that these items be carried forward to the FY 2019-20 budget per the direction provided by the CAO’s office during the Addenda budget process.
To accommodate the addition of the above mentioned items, the Environmental Management budget needs to be amended as follows:
Budgeted appropriations in the Environmental Management Liquid Waste budget need to be increased in Fixed Assets by $39,000 to accommodate the purchase of the tankless water heaters, offset by an increase in the Use of Fund Balance in the amount of $39,000.
Budgeted appropriations in the Environmental Management Solid Waste budget need to be increased in Minor Equipment by $25,000 to accommodate the purchase of the recycle bins, offset by an increase in State: Other Revenue in the amount of $25,000.
ALTERNATIVES
The Board may elect not to approve the budget transfers as proposed, although proper accounting for operating activity would be jeopardized.
PRIOR BOARD ACTION
Legistar 19-0992, approved 7/23/19
Legistar 19-1058, approved 8/6/19
Legistar 19-1045, approved 7/23/19
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
It is recommended that the Board approve this item.
FINANCIAL IMPACT
The proposed budget transfer results in no increase to Net County Cost. All increases in expenditures are funded by commensurate offsets or additional revenue.
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
Good Governance, Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation
Greg Stanton, Director
Environmental Management Department