REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
October 22, 2024
FROM
NOEL CASTILLO, Director, Department of Public Works - Transportation
SUBJECT
Title
Purchase of Unbudgeted Fixed Assets
End
RECOMMENDATION(S)
Recommendation
1. Approve the purchase of the following unbudgeted fixed assets:
a. One Compressed Natural Gas Liner Truck in an amount not-to-exceed $1,000,000
b. One Compressed Natural Gas Broom Paint Truck in an amount not-to-exceed $500,000
2. Authorize the Auditor-Controller/Treasurer/Tax Collector to post adjustments in the amount of $1,500,000, as detailed in the Financial Impact section, for the purchase of the unbudgeted fixed assets identified in Recommendation No. 1 (Four votes required).
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The Department of Public Works (Department) is funded by Gas Tax revenue, fee revenue, and other federal, state, and local funding. The total cost not-to-exceed $1,500,000 for the purchase of one Compressed Natural Gas (CNG) Liner Truck, and one CNG Broom Paint Truck will be funded with the use of available reserves.
The necessary budget adjustments are requested to carryover the budget from the prior year in addition to a cost increase reflective of current market conditions. The Department requests the following budget adjustments for 2024-25:
|
Fund Center/Fund |
GL Account |
Description |
Action |
Amount |
|
6650002008 |
54504050 |
Vehicles |
Increase |
$1,500,000 |
|
2008 |
37008880 |
Fund Balance-Reserved - Available Reserves |
Decrease |
$1,500,000 |
BACKGROUND INFORMATION
On January 9, 2024 (Item No. 36), the Board of Supervisors (Board) approved and authorized the purchase of two unbudgeted fixed assets in the 2023-24 budget, which included one CNG Liner Truck, in an amount not-to-exceed $800,000, and one CNG Broom Paint Truck, in an amount not-to-exceed $420,000, totaling $1,220,000.
The Department was unable to purchase these two assets by year-end, as the amount of $1,220,000 that the Department estimated for the purchase was too low. As these two assets are still needed, and due to rising costs and inflation, the Department is requesting approval to purchase the CNG Linear Truck and CNG Broom Paint Truck, with a total not-to-exceed amount of $1,500,000, to cover the updated market prices necessary to acquire these trucks.
The South Coast Air Quality Management District (SCAQMD), the air pollution control agency for all of Orange County and the urban portions of Los Angeles, Riverside, and San Bernardino counties, recently amended Rule 1196 (Rule) requiring public fleets operating heavy-duty vehicles in the SCAQMD’s jurisdiction to acquire low emission vehicles in an effort to reduce air toxic and criteria pollutant emissions.
Approval of the recommended actions will provide the Department with sufficient appropriation to fund the cost of purchasing one CNG Liner Truck, and one CNG Broom Paint Truck to ensure proper compliance with the stipulated Order of Abatement issued by the SCAQMD on August 8, 2023, in accordance with the Rule. The Rule requires public fleet operators to acquire alternative-fuel heavy-duty vehicles when procuring or leasing these vehicles to reduce air toxic and criteria pollutant emissions. The Department currently has two Diesel Heavy Haul Transporters in operation with over eight years of usage that it is intending to replace with the two SCAQMD compliant heavy-duty vehicles for line stripping the roads in the Valley and Mountain areas. This action is necessary to continue operations within SCAQMD’s jurisdiction.
PROCUREMENT
Purchase of the equipment will be in accordance with Policy 11-04 Procurement of Goods, Supplies, Equipment and Services.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Aaron Gest, Deputy County Counsel, 387-5455) on September 23, 2024; Purchasing (Dewayne Ford, Assistant Director, Purchasing, 387-2072) on September 23, 2024; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on September 30, 2024; Finance (Jessica Trillo, Administrative Analyst, 387-4222) on September 30, 2024; and County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-5423) on October 4, 2024.