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RESOLUTION NO. 2015-202 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2015-16 EQUIPMENT REPLACEMENT FUND BUDGET TO INCREASE OUTFITTING COSTS FOR THE REPLACEMENT OF BATTALION CHIEF RESPONSE VEHICLES AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED)
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
The Fire Department received approval to replace two battalion chief response vehicles. Although funds to replace these vehicles have been allocated in the budget, staff has been informed that an additional $87,324 will be required to complete the vehicle outfitting before these vehicles can be put into service. Staff is recommending an appropriation of $87,324 funded from the available balance of the Equipment Replacement Fund and the appropriation of insurance proceeds revenues to fund these costs.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” in accordance with Section 15378(b)(4) of the State CEQA because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
DISCUSSION
The Fire Department received approval to replace two battalion chief response vehicles. The first of the vehicles (Battalion 52) being replaced, is due to a traffic accident that resulted in a total loss of the vehicle. The replacement for the lost vehicle was acquired for $44,000 through the Equipment Replacement Fund. This cost was partially offset by insurance proceeds. The City is anticipating an additional $40,000 from the insurance company to further offset the vehicle outfitting costs. Staff is requesting an appropriation of $67,324 to the Equipment Replacement Fund Capital expense category for the outfitting costs for this vehicle. These costs were not appropriated at the time the vehicle was purchased as the funding source had not been identified.
As part of the insurance settlement for the loss of the Battalion 52 vehicle, the City recovered $25,000 from the other party’s insurance company that was involved in the accident that resulted in the City’s loss. Staff is requesting to appropriate the proceeds to the Other Expenses category of the Equipment Replacement Fund in order to reimburse the City’s insurance company.
The second vehicle (Battalion 51) is also being replaced through the Equipment Replacement Fund due to age and high mileage. The fiscal year 2015-16 budget includes $125,000 for this purchase. However, staff is requesting an additional $20,000 appropriation to the Equipment Replacement Fund Capital Expense category to complete the outfitting costs for this vehicle.
These budget amendments will result in a $112,324 increase to the 2015-16 Equipment Replacement Fund budget and are offset by $65,000 in revenues from insurance reimbursements. The net result is a negative $47,324 impact to the Equipment Replacement Fund. There are sufficient funds in the Equipment Replacement Fund reserves for this appropriation. The actual impact to the Equipment Replacement Fund will depend on the final insurance reimbursement.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18705.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Having reliable vehicles allows the Fire Department to achieve operational excellence and maintain a healthy community through its service delivery.
CURRENT YEAR FISCAL IMPACT
If approved, this recommendation will result in a $87,324 appropriation to the Capital Expense category and a $25,000 appropriation to the Other Expenses category of the Equipment Replacement Fund. These appropriations are offset by $65,000 of insurance reimbursements resulting in a negative $47,324 impact to the Equipment Replacement Fund. There are sufficient funds in the Equipment Replacement Fund reserves for this appropriation.
ONGOING FISCAL IMPACT
Ongoing vehicle maintenance costs will be included in subsequent fiscal year operating budgets.
ATTACHMENTS
None
Staff Contact: Pablo Quilantan, Fiscal & Management Analyst
Silvia Cosio, Senior Management Analyst