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HomeMy WebLinkAboutAgenda Statement 1976/04/06 Item 1818 CITY OF CHULA VISTA ITEM NO. COUNCIL AGENDA STATEMENT FOR MEETING OF: 4 6 76 ITEM TITLE: Resolution #8117 - Authorizing the Expenditure of an Additional $48,815 in the Public Works Equipment Maintenance Division SUBMITTED BY~ Director of Public Works/City Engineer 1 V ITEM EXPLANATION The Equipment Maintenance Division within the Public Works Department has experienced significant cost over-runs this fiscal year. This has been caused by a substantial increase in equipment/vehicle usage and inflated costs for parts and fuel. The Comprehensive Employment and Training Act (CETA) has had a significant effect on equipment and vehicle usage. The City of Chula Vista is reimbursed by the CETA grant for all fuel, oil and parts that are used in CETA vehicles (those leased vehicles that are used by CETA employees). However, the CETA employees have also increased the usage on City vehicles for which the City is not reimbursed. For the eight months prior to the major impact of the CETA Program in March, 1975, the City was using an average of 17,256 gallons of gasoline and propane per month. In the eleven months since March, 1975, the City vehicles have averaged 19,204 gallons per month. In addition, the City purchased six vehicles in January, 1976 that had previously been leased under CETA. Therefore, all of the gasoline, oil, and parts used in these vehicles will no longer be reimbursed by the CETA grant. Another contributing factor to the cost aver-runs in the Equipment Mainte- nance Division has been the inflated cost for parts. Parts are purchased for the repair and maintenance of City owned automotive equipment, including passenger cars, trucks, street sweepers, etc. The costs for parts are more inflated than for any other item in the Equipment Maintenance Division. The best indicator of the degree of inflation is a comparison of the cost for r'\/I II P\1 Tf'\ ATTA/\1 Ir11 GJCr11[fl I J H ~ 1 Hl.l'ICU (COrit' d on supplementa page Agreement Resolution X Ordinance Plat Other Environmental Document; Attached Submitted on STAFF RECOMMENDATION: Approve the additional expenditure in the Central Garage Fund. BOARD/ COMMISSION RECOMMENDATION g p p R O V E D by tha City COUn~il COUNCIL ACTION Of Chula Vista. California Dated ................~.,...--...G." .;~.L....................~ Form A-113 (Rev 5-75) Supplemental page 2 Agenda .Item No. 18 parts per labor hour. In the first four months of FY74-75 the cost per Labor hour was $4.28. This compares to a cost per labor hour of $7.06 for the first four months of FY75-76. Also, with the increased usage brought about by the CETA Program, the City is actually using more parts. The additional money that is needed in for the remainder of the fiscal year is The departments have already submitted Manager to cover the projected deficit. transferred the amounts indicated into Maintenance - City Forces). Activity 1211 City Administration 2111 Police Administration 2200 Animal Control 2430 Building Maintenance 3111 Public Works Administration 3130 Traffic Engineering 3220 Street Operations 3320 Sewer Maintenance 4120 Park Maintenance 4220 Recreation 4300 Golf Course the Equipment Maintenance Division available in the operating departments Fund Transfer Requests to the City The departments listed below have object account 5269 (Equipment Transferred Amount $ 545 520 610 1,660 490 3,740 23,375 3,560 6,860 3,580 3,875 Total.......... $48,815 FINANCIAL STATEMENT Even though. formal appropriations are not directly essential to the operation of the Central Garage Fund, the City of Chula Vista's policy has been to include them as an integral part of the annual budget document. This allows for a comprehensive financial plan, proper legislative and managerial control, and uniformity of financial policy. With this policy in mind, the following appropriation increases are to be dis- played in the Central Garage Fund for memorandum purposes only: Fund-Activity 71-3290-5265 71-3290-5268 71-3290-5311 71-3290-5365 71-3290-5368 Amount of Increase (Service to Maintain - Automotive) $ 1,000 (Service to Maintain - Other Equipment) 1,000 (Gas, Oil, and Lubricants) 20,000 (Materials to Maintain - Automotive) 24,815 (Materials to Maintain - Other Equipment) 2,000 Total.......... $48,815