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HomeMy WebLinkAboutAgenda Report - May 18, 2022 C-18CITY OF l �,r � 4 Z CALIFORNIA COUNCIL COMMUNICATION AGENDA ITEM at/ 8 AGENDA TITLE: Adopt Resolution Approving Appropriation to Fleet Operating Budget MEETING DATE: May 18, 2022 PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt Resolution Approving Appropriation to Fleet Operating Budget. BACKGROUND INFORMATION: At the time of this staff report, there still remains 2 months of expense to post in the City's 2021/22 fiscal budget and the operating budget in the Fleet division has exceeded their fiscal year appropriation. The budget overages are associated with the utilities, supplies and services line items and do not include the appropriations intended for personnel costs. Staff includes projected vehicle repair costs based on an average of the past three years of actual expenses. During this fiscal year, the Fleet operating budget has absorbed unexpected and substantial repair costs associated with specialty vehicle repairs that have contributed to budget overages at a cost of approximately $75,000. In general, the more costly than anticipated repairs are associated with fire apparatus, street sweeper and transit bus vehicles. The other significant budget overage is attributed to the price of fuel. As noted above, the current fuel prices are significantly higher than anticipated when staff prepared this fiscal year budget. The fuel line item in the Fleet operating budget has been exceeded. An additional appropriation of $220,000 will cover the needed operating expenses through the end of the fiscal year. Since the Fleet budget is a special revenue fund, the unanticipated expenses associated with vehicle repairs and fuel prices will ultimately be recovered from the departments utilizing fuel and repairs services on a proportional basis. Staff recommends adopting the resolution approving the additional budget for the Fleet operating budget to address current overages and to continue normal operations through the end of the fiscal year. APPROVED: Steve $chwabauer Stephen Schwabauer, City Manager \\cvcfilv02\pubwks$\WP\COUNCIL\2022\CC Streets—Fleet Approp.docx 5/9/2022 Adopt Resolution Approving Appropriation to Fleet Operating Budget May 18, 2022 Page 2 FISCAL IMPACT: The additional appropriation request is needed to fund Fleet Operations from April through the end of this fiscal year. FUNDING AVAILABLE: Requested Appropriation: Fleet account 65055000.72533 $120,000 Fleet account 65055000.72551 $100,000 Andrew Keys Andrew Keys Deputy City Manager/Internal Services Director c), % 19 Charles E. Swimley, Jr. Public Works Director Signature: amAG"r xpw Email: akeys@lodi.gov CES/RAY/cd Signature: Email: sschwabauer@lodi.gov RESOLUTION NO. 2022-131 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING APPROPRIATION TO FLEET OPERATING BUDGET WHEREAS, the operating budget in the Fleet division has exceeded the fiscal year appropriations; and WHEREAS, the budget overages do not include the appropriations intended for personnel costs and the line items that exceed the total budget are for utilities, supplies, and services; and WHEREAS, staff recommends appropriating the revenue of $220,000 to Fleet Account 65000000.55103; and WHEREAS, staff recommends approving the appropriation of $120,000 to Fleet Account 65055000.72533 and $100,000 to Fleet Account 65055000.72551. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the appropriation of funds to the Fleet Operating budget as set forth above; and BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019-223), the City Attorney is hereby authorized to make minor revisions to the above -referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary. Dated: May 18, 2022 I hereby certify that Resolution No. 2022-131 was passed and adopted by the City Council of the City of Lodi in a regular meeting held May 18, 2022 by the following votes: AYES: COUNCIL MEMBERS — Hothi, Khan, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Kuehne ABSTAIN: COUNCIL MEMBERS — None OLIVIA NASHED City Clerk 2022-131