Title
AUTHORIZATION FOR A BUDGET APPROPRIATION CONTINGENCY TRANSFER TO CAPITAL PROJECTS BUILDING MAINTENANCE RESERVE FOR VARIOUS CRITICAL OR SAFETY-RELATED REPAIR AND REPLACEMENT PROJECTS AT CITY FACILITIES
Staff Contact: Jack Friedline, Director, Public Works
Purpose and Recommended Action
Recommendation
This is a request seeking City Council approval for a budget appropriation transfer from General Fund, Contingency (1000-11901-510200) to General Fund, Capital Projects, Building Maintenance Reserve, Miscellaneous CIP (1000-81013-551000) in the amount of $758,454. This request is to fund various critical or safety-related capital repair and replacement projects at city facilities.
Background
The Public Works Department’s Facilities Management Division is responsible for completing preventative maintenance, emergency repairs, and capital improvements to over 150 city buildings and over 70 park facilities. Funding is available in the capital improvement program budget to complete capital upgrades and replacements at all city facilities with the majority of the funding allocated historically to the Capital Projects, Building Maintenance Reserve. For several years through the economic downturn, this capital budget was limited at a total amount of $100,000, which typically was only enough to fund immediate system failures or emergency repairs.
In fiscal year (FY) 2014-15, the Building Maintenance Reserve funding was increased to $500,000, and required the critical need and safety-related projects to be defined and prioritized. A total of $1,903,552 in immediate or high priority capital projects were identified for critical improvements and replacements, and funded through a budget appropriation contingency transfer of $1,403,552 to the capital projects building maintenance reserve.
In FY 2015-16, the Building Maintenance Reserve funding was $500,000, and a total of $1,657,933 in capital projects were identified for critical improvements and replacements. These projects were funded through a budget appropriation contingency transfer $1,157,933 to the capital projects building maintenance reserve. Other projects which were defined as a lower priority in FY 2015-16 have continued to degrade and are now deemed a high priority.
In FY 2016-17, the Building Maintenance Reserve funding was $1,300,000 and a total of $2,058,454 in capital projects have been identified for critical improvements and replacements.
Typical projects that are necessary to be completed during this fiscal year represent essential equipment replacement and rehabilitation of facility systems and associated infrastructure. Projects to be funded with this request include heating, ventilation and air conditioning systems for Fire Stations 152 and 153 and on the fourth floor of city hall, and roof repairs at city-owned facilities throughout Glendale.
Analysis
As with any type of facility, capital reinvestment is necessary to ensure the structure is operationally sound and that the city asset maintains its value. Additionally, staff will ensure that all capital upgrades and replacement projects follow city purchasing guidelines.
Funds in the Building Maintenance Reserve account are dedicated for the replacement and rehabilitation of necessary capital equipment and building infrastructure to keep city facilities safe, secure and operational for city business. Without funding and attention to these important projects, service interruptions will occur, there may be staff displacement and additional costs to continue city operations.
This budgetary transfer is consistent with the Cash and Budget Appropriation Transfer Policy approved December 10, 2013, which states contingency budget appropriation transfers can be authorized by Council throughout the fiscal year.
Previous Related Council Action
On January 12, 2016, Council approved a budget appropriation transfer from General Fund, Contingency (1000-11901-510200) to General Fund, Capital Projects, Building Maintenance Reserve, Miscellaneous CIP (1000-81013-551000) in the amount of $1,157,933 to fund various critical or safety-related capital repair and replacement projects at city facilities.
On November 24, 2014, Council approved a budget appropriation transfer from General Fund, Contingency (1000-11901-510200) to General Fund, Capital Projects, Building Maintenance Reserve, Miscellaneous CIP (1000-81013-551000) in the amount of $1,403,552 to fund various critical or safety-related capital repair and replacement projects at city facilities.
On December 10, 2013, Council adopted Resolution No. 4759 New Series, supporting the Cash and Budget Appropriation Transfer Policy.
Community Benefit/Public Involvement
Proper maintenance and capital repair/replacement projects to city facilities are necessary for the safety and comfort of all individuals who work at or visit the various facilities. In addition, it is necessary to invest capital dollars in city-owned facilities to maintain their value as assets to the city of Glendale.
Budget and Financial Impacts
Staff is seeking Council approval for a budget appropriation transfer from General Fund, Contingency (1000-11901-510200) to General Fund, Capital Projects, Building Maintenance Reserve, Miscellaneous CIP (1000-81013-551000) in the amount of $758,454. This request is consistent with the Cash and Budget Appropriation Transfer Policy, which states contingency budget appropriation transfers can be authorized by Council throughout the fiscal year.
|
Cost |
Fund-Department-Account |
|
$758,454 |
1000-81013-551000, General Fund, Capital Projects, Building Maintenance Reserve, Miscellaneous CIP |
Capital Expense? Yes
Budgeted? No
Requesting Budget or Appropriation Transfer? Yes
If yes, where will the transfer be taken from? General Fund, Contingency (1000-11901-510200)