DATE: July 9, 2024
TO: Board of Supervisors
SUBMITTED BY: Edward Hill, Chief Operating Officer/ Interim Director of Internal Services/ Chief Information Officer
SUBJECT: Budget Resolution (Org 8911)
RECOMMENDED ACTION(S):
TITLE
Adopt Budget Resolution increasing FY 2024-25 appropriations for Internal Services Department Fleet Services-Equipment Org 8911 in the amount of $15,008,525 for the purchase and replacement of light and heavy-duty vehicles, equipment for various departments, and for costs associated with building and improvements (4/5 vote).
REPORT
Approval of the recommended action will ensure the Internal Services Department - Fleet Services Division (ISD-Fleet) has sufficient appropriations in the FY 2024-25 Fleet Services - Equipment Org 8911, to purchase vehicles and equipment scheduled for replacement in FY 2024-25 for various departments, and will ensure that there are sufficient appropriations to fund projects associated with building and improvements. Sufficient funds are available in the equipment reserve fund balance. This item is countywide.
ALTERNATIVE ACTION(S):
Not approving the recommended action will result in ISD-Fleet being unable to acquire vehicles and equipment for various departments scheduled for replacement in FY 2024-25 and will prevent execution of building and improvements projects.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The proposed budget resolution will increase FY 2024-25 appropriations for capital asset purchases in the amount of $15,008,525 in ISD-Fleet-Equipment, Org 8911. The resolution allows for the uninterrupted process of vehicle and equipment acquisitions to commence, avoiding possible delays due to having the budget hearings scheduled in September. Sufficient funds are available in the ISD-Fleet Services Equipment reserve fund balance (Fund 1000) to fund these costs. The ISD-Fleet Services Equipment reserves allows for the use of funds for property and replacement of vehicles. Vehicle and property costs are allocated through depreciation charges during the useful life of each fixed asset for the purpose of replenishing reserves.
DISCUSSION:
The FY 2024-25 Recommended Budget for ISD-Fleet does not include appropriations within Org 8911 for the purchase of replacement light and heavy-duty vehicles and equipment for various departments. Approval of the recommended action will increase the FY 2024-25 appropriations in Fleet Services-Equipment Org 8911, allowing ISD-Fleet to begin the normal process of acquiring new vehicles and equipment in a timely manner and have adequate funds for anticipated building and improvements project costs.
The allocation of funding for building and improvements will be used to construct one new fuel site. Delaying these acquisitions until after the FY 2024-25 budget hearings scheduled in September 2024 may affect ISD-Fleet’s ability to acquire the vehicles within the current fiscal year and will prevent ISD-Fleet from moving forward with the construction of a new fuel site. Attachment A includes the vehicles and equipment that would be acquired.
With your Board’s approval of the recommended action, ISD-Fleet will be able to acquire light and heavy-duty vehicles and equipment that the user departments will include in their FY 2024-25 budget requests, and will allow ISD-Fleet to move forward with the building and improvements projects.
ATTACHMENTS INCLUDED AND/OR ON FILE:
Attachment A
On file with Clerk - Resolution
CAO ANALYST:
Ahla Yang