HomeMy WebLinkAboutReso 2006-045
RESOLUTION NO. 2006-045
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE FISCAL YEAR 2005/2006
BUDGET BY APPROPRIATING $595,000 IN THE FLEET
MANAGEMENT FUND FOR FUEL PRICE INCREASES
BASED ON AVAILABLE RESERVES IN THE FLEET
MANAGEMENT FUND; AND APPROPRIATING $215,000 IN
THE TRANSIT FUND TO REIMBURSE THE FLEET
MANAGEMENT FUND FOR CNG FUEL PRICE INCREASES
WHEREAS, in September 2005, staff sent an information item to Council indicating that
Central Garage's budget would need to be adjusted prior to the end of the current fiscal year
(Fiscal Year 2006); and
WHEREAS, due to short fuel price increases during the summer, combined with the Gulf
States' flooding and damage to oil production due to Hurricanes Katrina and Rjta, Central
Garage is returning to Council for a budget adjustment, as fuel prices have increased
substantially over the amounts that were budgeted; and
WHEREAS, fuel prices in the Fiscal Year 2006 Central Garage budget, for unleaded
gasoline and diesel, were based on an estimate of $2.15 per gallon. For Fiscal Year 2006, the
average price paid for fuel through the end of December was $2.44 per gallon, with $3.30 per
gallon being the highest price paid per gallon and $1.92 per gallon being the lowest price paid
per gallon; and
WHEREAS, the fuel budget was based on usage of 520,300 gallons, and 213,000 gallons
have been purchased. The price of fuel is anticipated to increase to an average price of $2.62 per
gallon, thereby requiring a budget adjustment of $380,000 to cover fuel costs for the current
fiscal year; and
WHEREAS, Compressed Natural Gas (CNG) fuel utilized by the Transit Fleet was
budgeted at an average cost of $1.00 per thermo The average price paid for CNG through the end
of December was $1.21 per therm; and
WHEREAS, the price of CNG is anticipated to increase to $1.42 per therm, thereby
requiring a budget adjustment of $215,000 to cover CNG fuel costs for the current fiscal year;
and
WHEREAS, the total appropriation to the Central Garage's budget is $595,000 to cover
this cost increase. Of this amount, $215,000 will be offset by reimbursement from the Transit
budget for the purchase of CNG.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby amend the Fiscal Year 2005-2006 budget by appropriating $595,000 in the
Fleet Management Fund for fuel price increases based on available reserves in the Fleet
Management Fund.
Resolution No. 2006-045
Page 2
BE IT FURTHER RESOLVED, that the City Council does hereby appropriate $215,000
from the Transit Fund to reimburse the Fleet Management Fund for CNG fuel price increases.
Presented by
Approved as to form by
~~~'(~,
Ann Moore
City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 14th day of February 2006 by the following vote:
AYES:
Councilmembers:
Castaneda, Chavez, McCann, Rindone and Padilla
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
ATTEST:
--:>111 /. . '~ D>---'
Susan Bigelow, MMC, City erk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2006-045 was duly passed, approved, and adopted by the City Council at a
regular meeting ofthe Chula Vista City Council held on the 14th day of February 2006.
Executed this 14th day of February 2006.
-.:.- ~!Io, I~~
Susan Bigelow, MMC, City C k