Agenda - 12-15-2015 - 6a - Minutes

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12 1 2 VOTE: UNANIMOUS 3 4 b. FY 2015-16 Purchase of Vehicles through the Vehicle Replacement Internal 5 Service Fund 6 The Board considered approving the final list of County vehicles to be purchased 7 through the Internal Service Fund in FY 2015-16, and approving a Reimbursement Resolution 8 that allows the County to advance funds for the initial purchase and then reimbursing itself from 9 a planned December 2015 financing package. 10 Gary Donaldson, Orange County Chief Financial Officer, said there is a revised abstract 11 and three attachments: 12 • Project list 13 • Sheriff's justification listing 14 • Reimbursement 15 Gary Donaldson reviewed the following information: 16 The BOCC initially established the Vehicle Replacement Internal Service Fund during 17 FY 2012-13 for County vehicle purchases. The Internal Service Fund is an accounting device 18 used to accumulate and allocate costs internally among the functions of the County. County 19 department vehicle purchases occur through this Fund instead of through departments' General 20 Fund operating budgets. The Internal Service Fund centralizes all vehicle purchases, which will 21 improve the ability to monitor vehicle acquisition and associated costs. 22 In June 2015, staff presented to the BOCC a list of vehicles recommended for purchase 23 for FY 2015-16 and committed to bringing back a final list for Board consideration and approval 24 this fall. 25 The list coincides with and outlines the vehicles funding amounts approved as part of 26 the FY 2015-16 Budget Ordinance. The total amount of the vehicles to be purchased is 27 $793,209. The only change from the recommended list provided to the BOCC in June 2015 and 28 this final list is a reduction of two (2) Dodge Chargers and the addition of two (2) Harley 29 Davidson Police Package motorcycles (See Attachment 2). These motorcycles will be used for 30 traffic enforcement, but also used for a wide variety of other functions, including but not limited 31 to: 32 • a highly visible presence while patrolling rural neighborhoods, 33 • traffic control for special events, speed enforcement in problem areas, 34 • collaborative efforts with neighboring enforcement agencies, 35 • special events at area schools, 36 • County functions where traditional patrol vehicles are less effective, and 37 • to promote highway safety and education programs for high school students. 38 39 FINANCIAL IMPACT: The financial impact of the purchase of twenty-two (22) replacement 40 vehicles is $794,000. Twenty-one (21) vehicles will be purchased with installment financing, 41 while one (1) of the motorcycle units of$22,000 will be purchased with available drug forfeiture 42 funds. The installment financing will be part of a preliminary financing package to be presented 43 to the BOCC in December 2015. The attached Reimbursement Resolution (Attachment 3) 44 allows the County to advance funds for the initial purchase, and then reimburse itself from the 45 financing proceeds. This is necessary in order to receive 2015 State contract pricing, which 46 expires on December 8, 2015. 47 48 Gary Donaldson said the County is seeking to take advantage of State financing which 49 expires on December 8, 2015, and staff will be coming back with a lengthier list of projects for 50 financing.