TO: Board of Supervisors
FROM: Steven Lederer - Director of Public Works
REPORT BY: Michael Parker - Supervising Staff Services Analyst
SUBJECT: Revision of Capital Asset Schedule and Removal of Capital Assets from Capital Asset Listing
RECOMMENDATION
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Director of Public Works requests approval of the following:
1. Declare certain capital asset vehicles as surplus, no longer required for public use, and approve disposal of capital assets by insurance;
2. Authorize the Auditor-Controller to remove these surplus assets from the capital asset listing;
3. Approval of a Budget Transfer increasing appropriations in the Vehicle Replacement (Fund 4100, Org 4102000) budget with offsetting revenue from insurance reimbursement ($65,791) and use of available fund balance ($11,209) (4/5 vote required); and
4. Establishment of two capital assets in the amount of $77,000 for the purchase of a Prius ($37,000) and a Rav4 ($40,000).
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EXECUTIVE SUMMARY
The County has two (2) vehicles that were recently in two separate accidents, and both vehicles have been deemed by insurance to be beyond repair and have been removed from service. With approval of today’s action, these two (2) vehicles will be declared as surplus and the Auditor-Controller will be authorized to remove these surplus assets from the capital asset listing.
Today’s action will also authorize a Budget Transfer to increase appropriation in the Vehicle Replacement (Fund 4100, Org 4102000) budget with offsetting revenue from insurance reimbursement ($65,791) and use of available fund balance ($11,209).
Today’s requested action will also revise the Schedule of Approved Capital Assets with an increase of $77,000 in the Vehicle Replacement (Fund 4100, Org 4102000) budget in order to replace the aforementioned vehicles that have been declared as surplus.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
$65,791 has been received from insurance payout and $11,209 to come from Vehicle Replacement budget’s available fund balance. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
An allocated vehicle from Health and Human Services and an allocated vehicle Planning, Building, and Environmental Services were recently deemed by insurance as beyond repair. If these vehicles are not replaced, each department will have one less allocated vehicle to perform their departmental functions. |
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Is the general fund affected? |
No |
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Future fiscal impact: |
There is no future fiscal impact. |
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Consequences if not approved: |
If these vehicles are not replaced, each department will have one less allocated vehicle to perform their departmental functions. |
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County Strategic Plan pillar addressed: |
Effective and Open Government |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable
BACKGROUND AND DISCUSSION
On July 2, 2021, an allocated vehicle to Health and Human Services (2019 Toyota Prius, vehicle #0058, property #27830) was damaged in an accident. Upon review of both the accident report and a physical inspection of the vehicle, Farmers Insurance Group deemed the vehicle to be beyond repair. On July 20, 2021, an allocated vehicle to Planning, Building, and Environmental Services (2020 Toyota Rav4, vehicle #0411, property #27854) was damaged in an accident. Upon review of both the accident report and a physical inspection of the vehicle, CSAA Insurance Exchange deemed the vehicle to be beyond repair. Subsequent to each accident, the Fleet Manager removed the vehicles from service.
With approval of today’s requested action, these two (2) vehicles will be declared as surplus and the Auditor-Controller will be authorized to remove these surplus assets from the capital asset listing. Today’s action will also authorize a Budget Transfer to increase appropriation in the Vehicle Replacement (Fund 4100, Org 4102000) budget with offsetting revenue from insurance reimbursement ($65,791) and use of available fund balance ($11,209). Today’s requested action will revise the Schedule of Approved Capital Assets with an increase of $77,000 in the Vehicle Replacement (Fund 4100, Org 4102000) budget in order to replace the aforementioned allocated vehicles for the Health and Human Services and Planning, Building, and Environmental Services departments.