Title
Department of Transportation recommending the Board:
1) Approve the addition of one (1) sander salt brine applicator to Department of Transportation, Zone of Benefit Fiscal Year 2020-21 Fixed Asset List totaling $5,000; and
2) Approve the $5,000 price decrease on the Fixed Asset List for the salt brine applicator bringing the estimate from $10,000 to $5,000.
FUNDING: County Service Area 5.
Body
DISCUSSION / BACKGROUND
The Department of Transportation (Transportation), Maintenance and Operations Division, is requesting authorization to add an item to the Fixed Asset list for the Zone of Benefit and adjust the cost estimate on one other item. The additional equipment includes one (1) sander salt brine applicator. This piece of equipment was not on the fixed asset list but plays a vital role during winter weather preparation efforts.
Transportation is requesting a change in estimated costs on the current Fiscal Year (FY) 2020-21 Fixed Asset List, which would allow for the purchase of the additional salt brine applicator without increasing the overall budget for the Department's fixed assets. In anticipation of the FY 2019-20 budget development process, and in order to request equipment for the Fixed Asset list, the Department reached out to companies for approximate costs, reviewed equipment, researched estimates online, and attempted to anticipate possible increases/decreases for equipment prices as the market is very volatile. Equipment costs will often change with different tariffs, fees, seasons and construction demands.
The salt brine applicator was estimated at $10,000 on the Fixed Asset List due to market value at the time, however when obtaining current quotes, the cost dropped substantially due to the current economy and provided the Department with a substantial unanticipated savings and the updated estimate is $5,000. The reduction in price for the salt brine applicator will allow Transportation to acquire one (1) sander salt brine applicator totaling $5,000 without increasing the budgeted appropriations for Transportation's fixed assets for Fiscal year 2020-21.
ALTERNATIVES
The Board may elect to not approve the change and additional fixed asset item as proposed, although this would leave Transportation with inadequate equipment to perform services in preparation for winter weather conditions.
PRIOR BOARD ACTION
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The proposed change and additional fixed asset item results in no increase to budgeted costs due to the reduction of cost in a separate fixed asset item. Funding for this equipment is available in the County Service Area 5 fund. No budget amendment is needed to include the items in Transportation’s; Zone of Benefit fixed asset listing.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Good Governance, Infrastructure
CONTACT
Rafael Martinez, Director
Department of Transportation