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Agenda 05/24/2022 Item #16E 1 (Increase to the FY2022 Fleet Management Budget)05/24/2022 EXECUTIVE SUMMARY Recommendation to approve appropriations increase to the FY 2022 Fleet Management Fund 521 budget to cover anticipated shortages due to parts and fuel cost increases. OBJECTIVE: Obtain Board approval to increase Fleet Management FY 2022 budget appropriation authority to purchase parts and fuel for Collier County vehicles and equipment. CONSIDERATIONS: The Fleet Management Division maintains and provides fuel for all BOCC vehicles and mobile equipment. Parts and fuel costs have increased at unprecedented rates this fiscal year. All of our parts distributors have raised their catalog prices this year due to inflation. Our contracts have set discounts from retail or jobber prices for the life of the contracts but allow periodic catalog price adjustments when fully justified. With the prices increasing, we had spent almost 60% of our $2,129,700 parts budget through midyear. Current parts costs are averaging $235,000 monthly and Fleet Management anticipates a $675,000 shortfall with the allocated FY 2022 budget. Motor fuel was budgeted at $2.80 a gallon for FY 2022 and averaged $2.69 a gallon for the first six months, but the average wholesale price paid by the County is now slightly above $4.00 per gallon. The County consumes about 1.5 million gallons of fuel annually with 800,000 gallons projected for the last six months of FY 2022. At $4.00 a gallon, we will have a $1,015,700 shortfall in our FY 2022 fuel budget. Both parts and fuel are direct pass - through items with the costs being absorbed by the operating divisions as they consume these products. Board approval of the budget increase is recommended to assure uninterrupted continuity of services to the community. FISCAL IMPACT: The additional appropriations will increase the FY 2022 Fleet Management Fund 521 budget by $1,690,700. The fund will be reimbursed by the operating divisions as products are used to continue County operations. Since the increased costs were unanticipated, some operating divisions may also require budget amendments. GROWTH MANAGEMENT IMPACT: No growth management impact is involved. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, presents no legal issues and requires majority vote for approval. -JAK RECOMMENDATION: To approves FY 2022 budget amendments in Fleet Management Fund (521) as stated. PREPARED BY: Mario Menendez, Senior Operations Analyst, Fleet Management 16.E.1 Packet Pg. 1236 05/24/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.E.1 Doc ID: 22043 Item Summary: Recommendation to approve appropriations increase to the FY 2022 Fleet Management Fund 521 budget to cover anticipated shortages due to parts and fuel cost increases. Meeting Date: 05/24/2022 Prepared by: Title: Operations Analyst, Senior – Fleet Management Name: Mario Menendez 04/27/2022 2:50 PM Submitted by: Title: Division Director - Fleet Management – Fleet Management Name: Dan Croft 04/27/2022 2:50 PM Approved By: Review: Fleet Management Dan Croft Director Review Completed 04/27/2022 3:24 PM County Attorney's Office Jeffrey A. Klatzkow Level 2 Attorney Review Completed 04/28/2022 9:06 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 04/28/2022 9:49 AM Office of Management and Budget Laura Wells Additional Reviewer Completed 04/28/2022 10:51 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/28/2022 2:14 PM County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 05/16/2022 8:31 AM Board of County Commissioners Geoffrey Willig Meeting Pending 05/24/2022 9:00 AM 16.E.1 Packet Pg. 1237