DATE: July 10, 2018
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Resolution to Increase Appropriations for Internal Services Department
RECOMMENDED ACTION(S):
TITLE
Adopt Budget Resolution increasing the FY 2018-19 appropriations for Internal Services Department, Fleet Services-Equipment Org 8911 in the amount of $9,468,186 (4/5 vote).
REPORT
Approval of the recommended action will ensure the Internal Services Department - Fleet Services Division (Fleet Services) has sufficient appropriations to purchase vehicles and equipment scheduled for replacement in FY 2018-19.
ALTERNATIVE ACTION(S):
Not approving the recommended action will result in Fleet Services being unable to acquire vehicles and equipment scheduled for replacement in FY 2018-19.
FISCAL IMPACT:
There is no additional Net County Cost associated with this item. The recommended action will increase FY 2018-19 appropriations in the Fleet Services Equipment, Org 8911 in the amount of $9,468,186. Sufficient funds are available in the equipment reserve fund balance. User departments will replenish costs of replacement vehicles by paying depreciation and inflation charges throughout the useful life of the vehicle. Depreciation charges commence on the date the vehicle is placed in service and end once the useful life has expired.
DISCUSSION:
On June 12, 2018, your Board approved a recommended budget for FY 2018-19, which did not include appropriations for capital asset purchases and instead required future explicit approval for capital asset purchases from the Board of Supervisors. The recommended action appropriates funds for replacement vehicles and equipment.
The recommended action will increase appropriations in Fleet Services Equipment, Org 8911, allowing for Fleet Services to begin the normal process of acquiring new vehicles and equipment in a timely manner. Delaying these acquisitions until after budget hearings are complete in September would cause significant delays in beginning the purchase process and ultimately may affect Fleet’s ability to acquire the vehicles within the current fiscal year.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Budget Resolution
CAO ANALYST:
Juan Lopez