Title
a. Adopt a resolution to reallocate Parks Operation Fund 001, Appropriation Unit PFP058, Unit 8556 ARPA Revenue Loss allocation of $631,546 to Facility Services Fund 001, Appropriation Unit PFP054, Unit 8552 and Utilities Fund 001, Appropriation Unit PFP055, Unit 8553;
b. Authorize and direct the Auditor-Controller to amend the Fiscal Year 2021-22 Adopted Budget to increase appropriations by $371,828 in Facility Services Fund 001, Appropriation Unit PFP054, Unit 8552, financed by a decrease in appropriations of $371,828 from Park Operations Fund 001, Appropriation Unit PFP058, Unit 8556, from its ARPA Revenue Loss appropriations; (4/5th vote required); and
c. Authorize and direct the Auditor-Controller to amend the Fiscal Year 2021-22 Adopted Budget to increase appropriations by $259,718 in Utilities Fund 001, Appropriation Unit PFP055, Unit 8553, financed by a decrease in appropriations of $259,718 from Park Operations Fund 001, Appropriation Unit PFP058, Unit 8556, from its ARPA Revenue Loss appropriations (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a Resolution to:
a. Reallocate Parks Operation Fund 001, Appropriation Unit PFP058, Unit 8556 ARPA Revenue Loss allocation of $631,546 to Facility Services Fund 001, Appropriation Unit PFP054, Unit 8552 and Utilities Fund 001, Appropriation Unit PFP055, Unit 8553;
b. Authorize and direct the Auditor-Controller to amend the Fiscal Year 2021-22 Adopted Budget to increase appropriations by $371,828 in Facility Services Fund 001, Appropriation Unit PFP054, Unit 8552, financed by a decrease in appropriations of $371,828 from Park Operations Fund 001, Appropriation Unit PFP058, Unit 8556, from its ARPA Revenue Loss appropriations (4/5th vote required); and
c. Authorize and direct the Auditor-Controller to amend the Fiscal Year 2021-22 Adopted Budget to increase appropriations by $259,718 in Utilities Fund 001, Appropriation Unit PFP055, Unit 8553, financed by a decrease in appropriations of $259,718 from Park Operations Fund 001, Appropriation Unit PFP058, Unit 8556, from its ARPA Revenue Loss appropriations (4/5th vote required).
SUMMARY/DISCUSSION:
The Department of Public Works, Facilities and Parks (PWFP) projects a shortfall in the Facility Services Fund 001, Appropriation Unit PFP054, Unit 8552, by $371,828 and the Utilities Fund 001, Appropriation Unit PFP055, Unit 8553, by about $259,718.
The Facility Services Division has continued to incur COVID-19-related expenses such as day porter services and extra security guards at 168 W Alisal and 1441 Schilling Place. Also, an increase in personnel service charges not budgeted for, furthers the need for increased appropriation. With most of the appropriations already encumbered for budgeted expenditures, a need to increase appropriations by $371,828 is requested to cover the additional expenses not budgeted for earlier.
Similarly, staff projects higher-than-budgeted utility costs, requiring $259,718 in additional appropriations in Utilities Unit 8553. This is primarily due to increased PG&E rates at County locations, along with higher than estimated natural gas rates.
Park Operations Unit 8556 has about $700,000 of unspent ARPA Revenue Loss appropriations due to several vacancies in the Parks Operations Unit 8556 throughout the fiscal year.
The Department requests to reallocate the unspent ARPA Revenue Loss appropriations from Parks Operations to Facilities and Utilities operations. There is no impact on the overall PWFP General Fund budget. This is only a request to reallocate appropriations within the PWFP General Fund Units.
The Budget Committee received and supported this action during the May 25th, 2022 meeting.
OTHER AGENCY INVOLVEMENT:
None.
FINANCING:
This request would reduce appropriations in the Park Operations Fund 001, Appropriation Unit PFP058, Unit 8556, from its ARPA Revenue Loss appropriations, by $631,546, and correspondingly increase appropriations in Facility Services Fund 001, Appropriation Unit PFP054, Unit 8552, by $371,828 and in Utilities Fund 001, Appropriation Unit PFP055, Unit 8553 by $259,718.
Using ARPA funds will reduce the amount of COWCAP reimbursements in future years to both Facilities Services and Utilities.
Prepared by: Sandra Lance, Finance Manager I (831) 755-4823
Reviewed by: Tom Bonigut, PE, Assistant Director of Public Works, Facilities and Parks
Approved by: Jessica Cordiero-Martinez, Finance Manager III (831)755-4824
Approved by: Randell Ishii, MS, PE, TE, PTOE, Director of Public Works, Facilities and Parks
Attachments are on File with the Clerk of the Board:
Attachment A - Facilities Utilities Appropriation Reallocation
Attachment B - Draft Resolution