FOR THE COUNCIL MEETING OF FEBRUARY 21, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Finance
SUBJECT: BUDGET AMENDMENT S – OPERATIONAL CHANGE S RELATED TO THE FINANCIAL REPORT FOR THE SECOND QUARTER ENDING DECEMBER 31, 2022
RECOMMENDATION:
That the City Council adopt a Resolution approving second quarter amendments to the 2022-23 Budget for operational changes.
BACKGROUND:
As part of the City’s budget process, staff presents to the City Council various personnel and operational changes in conjunction with the quarterly financial report. Staff is presenting a budget amendment request for incorporation into the 2022-23 Budget.
DISCUSSION:
PUBLIC WORKS/SANTA MARIA REGIONAL TRANSIT (SMRT) FUND
Increase appropriations by $4,900,000 in the Santa Maria Regional Transit (SMRT) Fund and authorize the purchase of five (5) Electric Expansion Buses in the Transit Fund in fiscal year 2022-23 and authorize a corresponding reduction in the 2023-24 Mid-cycle Budget update.
The Public Works Department -Transit Division requests authorization to move $4,900,000 for the purchase of five (5) Electric Expansion Buses listed in the Transit budget from fiscal year 2023-24 to fiscal year 2022-23 for the SMRT system. The Electric Expansion Buses will allow public transit operations to continue to process more efficiently , comply with the State zero- emission vehicle mandates, and continue the Transit Division’s effort to become 100 percent electric by 2040. Additionally, authorizing the budget amendment will permit Transit to secure a place in the bus production process that is estimated to take 14 to 16 months before delivery.
PUBLIC WORKS FLEET/FIRE
Authorize staff to initiate the procurement process and secure a price for a new fire ladder truck, by ordering and placing a down payment on the vehicle utilizing a portion of the $1 million appropriation in Measure U currently allocated for a used fire ladder truck.
As part of the 2022- 24 Budget, the City Council authorized a $1 million appropriation from Measure U for the purchase of a used second fire ladder truck, to help ensure the proper apparatus is available for multi -story structural fires. Staff began searching for a used ladder truck in July 2022, but have not been able to locate an apparatus in acceptable condition. Public Works Fleet division staff is recommending the purchase of a new fire ladder truck because of the inability to find a suitable used vehicle and the identification of approximately $850,000
replacement funds available as a result of a grant awarded to the City for the first and current ladder truck (which replaced an older fire engine). In addition, the current estimated build time is three to five years for a new fire ladder apparatus and for that reason manufacturers typically require a down payment when the order is placed. The down payment will also secure the price of the vehicle. No additional appropriation is being requested in 2022- 23 as the existing the $1 million appropriation in Measure U for a used fire ladder truck is more than sufficient for the down payment. Any additional appropriation of available replacement dollars will be requested in 2023- 24 Mid-Cycle Budget Review.
Impact to the Community
The requested budget amendments will enable staff to maintain operations and meet new State regulatory requirements.
MARY HARVEY
Director of Finance