REPORT TO THE CITY COUNCIL
FROM: BRIAN BARR, Director
General Services Department
BY: CLIFF TRAUGH, Administrative Manager
General Services Department
SUBJECT
Title
***RESOLUTION - Approving the reallocation of $500,000 from the Fleet Operations Fund contingency to pay fuel expenses (Subject to Mayor's Veto)
Body
RECOMMENDATION
Staff recommends Council approve the attached Resolution which authorizes the reallocation of $500,000 from the Fleet Operations Fund contingency to pay for anticipated fuel expense obligations through June 30, 2023.
EXECUTIVE SUMMARY
On February 27, 2023, the General Services Department issued a Memorandum with the purpose of informing Council the department's forecast of the average fuel price of unleaded gasoline, diesel, and liquid natural gas will exceed budget expectations. Due to the City's high volume of fuel consumed, even a small variance in fuel prices can quickly become a significant dollar value. Therefore, the General Services Department would like to request authorization to reallocate the $500,000 Fleet Operations contingency to pay for fuel expenses through June 30, 2023. The Fleet Operations Fund provides resources to pay for expenses related to the repair, maintenance, and operation of more than 2,400 vehicles. Within this operating budget a $500,000 contingency is budgeted every year to cover unexpected cost increases. As the cost of fuel, labor, and parts has increased due to inflation and market instability, the Fleet Operating Fund has begun to run low on appropriations and will require the use of the contingency appropriations to continue to pay vendors through the end of FY2023.
BACKGROUND
The General Services Department, Fleet Management Division is responsible for maintaining 2,400 active vehicles and equipment for the City of Fresno. This includes vehicle acquisition, whole life maintenance, fueling, and end of life disposal. Fleet management serves the city departments by providing dependable li...
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