HomeMy WebLinkAbout2006-06-13; City Council; 18595; Fleet Maintenance Budget Additional FundsCITY OF CARLSBAD - AGENDA BILL
AB# 18,595
MTG. 06/13/06
DEPT. PW/GS
TITLE: REQUEST FOR APPROPRIATION OF
ADDITIONAL FUNDS TO THE 2005-2006
FLEET MAINTENANCE BUDGET
DEPT. HD. \m^'
""/&?CITY ATTY. 0^"
CITY MGR.*S§Q^
RECOMMENDED ACTION:
Adopt Resolution No. 2006-150 authorizing the appropriation of an additional $200,000
from the Fleet Maintenance fund to the FY 2005-06 Fleet Maintenance Budget.
ITEM EXPLANATION:
The fiscal year 2005-2006 appropriated budget for the Fleet Maintenance Division of the Public Works
Department is $2,069,676. This amount includes funding for 7.6 Full Time Positions and .5 Hourly
position, as well as maintenance and operations and capital outlay funding for the division. As a result
of unforeseen events, the Fleet Maintenance Budget is projected to have a deficit at the end of this
fiscal year without an additional appropriation.
The Fleet Maintenance Division is responsible for keeping the City's Fleet of vehicles and motorized
equipment in top working order. This includes emergency response vehicles such as Police cars, Fire
Engines and Ambulances, as well as all other vehicles, and equipment such as lawn mowers and
generators. To maintain the City's equipment in top condition, it is important to maintain full staffing
levels. As a result of an injury on duty, the division has had to hire a mechanic on a temporary basis to
backfill a technician position. There is no budget for temporary help in the Fleet Maintenance budget,
and so the division has had to absorb these costs, projected to be over $16,000, within their budget.
Additionally, as a direct result of Hurricane Katrina and other world events, the price of steel and
petroleum products has seen dramatic increases this year. As a result, the division has had to absorb
increases in the price of repair and maintenance parts, and the price of gasoline and diesel fuel. Vehicle
maintenance is projected to end the year $30,000 over budget, and other Equipment Maintenance is
projected to be nearly $24,000 over budget. Unanticipated environmental upgrades to Fuel Storage
Tanks cost more than $47,000. Finally, Gasoline and Oil is projected to end the year at more than
$100,000 over the budgeted amounts. Gasoline and Diesel prices have climbed significantly this fiscal
year. Through April 30, the Fiscal Year to date average price per gallon was $2.25 for gasoline and
$2.45 for diesel. In May, the price per gallon jumped to $3.23 for gasoline and $3.32 for diesel. On a
subsequent gasoline delivery, the price had dropped to $2.84 per gallon, but this is still more than $.50
higher than the average through May. Due to the volatility of fuel pricing, it is difficult to determine what
the cost will be when the next delivery is received.
None of these events could have been foreseen, and therefore, the division was unable to mitigate
against these increased costs. The division does have contingency funding of just over $125,000 to
cover some of the increases, but even with contingency, a deficit is forecasted. To avoid a deficit,
an additional appropriation will be necessary.
Staff recommends the appropriation of $200,000 from the Fleet Maintenance fund to the FY 2005-06
Fleet Maintenance Budget.
ENVIRONMENTAL REVIEW:
The appropriation of additional funds is exempt from the requirements of CEQA pursuant to Section
15268 of the State CEQA Guidelines.
Page 2
FISCAL IMPACT:
If the additional appropriation is not made, there will not be sufficient funds in the FY 2005-2006
Fleet Maintenance Budget to meet payroll and pay vendor invoices. An additional appropriation will
allow the City to meet these financial commitments.
EXHIBITS:
1. Resolution No. 2006-150 authorizing the appropriation of an additional $200,000
to the FY 2005-2006 Fleet Maintenance budget.
DEPARTMENT CONTACT: Gary Jenner, (760) 602-2192, gjenn@ci.carlsbad.ca.us
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RESOLUTION NO. 2006-150
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
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OF CARLSBAD, CALIFORNIA, AUTHORIZING THE
APPROPRIATION OF AN ADDITIONAL $200,000 TO THE
FLEET MAINTENANCE BUDGET.
WHEREAS, unanticipated on-the-job injuries have necessitated the hiring of a temporary
employee to backfill a maintenance technician position in the fleet maintenance division; and
WHEREAS, substantial increases in the price of steel and petroleum-derived products
have led to increased costs for the fleet maintenance division; and
WHEREAS, unanticipated expenses for the upgrade of city fuel storage tanks have been
incurred by the fleet maintenance division; and
WHEREAS, for all of these reasons, the fleet maintenance division is projected to end this
fiscal year with a deficit;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
1. That the above recitations are true and correct.
2. That the Finance Director is authorized to appropriate an additional $200,000 to
the FY2005-06 Fleet Maintenance budget from the Fleet Maintenance fund.
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PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council held on
the 13th day of June , 2006 by the following vote, to wit:
Council Members Le^
None
Hall, Kulchin, Packard, Sigafoose
LO (SEAL)
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