Agenda Item Name:
Title
Budget Amendment for Public Works for Projected operating Shortfalls
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Presenter:
Ramon Gavarrete, Public Works Director
Description:
Approve Budget Amendment to move budget from personnel services category to operating category to cover projected shortfalls for Public Works Department Divisions for FY22
Recommended Action:
Recommended Action
Approve Budget Amendment
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Prior Board Motions:
N/A
Fiscal Consideration:
Fiscal Consideration
Due to high employee turnover and vacant positions for FY22, sufficient funds exist in the personnel services category to cover remaining fiscal year expenses after budget amendment moves funds from personnel services category to operating category to cover projected increased costs.
This budget adjustment moves budget from Critical Facilities salaries to operating in accounts 001.19.1912.529 and Gas Tax salaries to operating in accounts 149.79.7900 and 149.79.7910 to cover shortfalls in multiple operating accounts.
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Strategic Guide:
Strategic Guide
Infrastructure
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Background:
Critical Facilities Division:
With the construction boom, there has been an extraordinary increase in vacancies of Building Mechanics. There are currently (7) Building Mechanic vacancies out of the (10) Building Mechanic Positions in Critical Facilities.
To keep up with the maintenance of buildings with this many vacancies, more work was contracted out than was budgeted. This along with the increased cost of materials from inflation are the main reasons for the shortfall in operating costs.
Road and Bridge Division:
Historically, the Public Works department has had a history of high employee turnover and vacant positions but with COVID, the construction boom, and higher demand for CDL licensed drivers, this issue has been exacerbated. There has always been a high turnover of Laborer I, Laborer II, and Equipment Operator (EO) II positions but now there has been a high turnover with Equipment Operator II’s and III’s. There are currently 37.50 vacant positions between the Road and Bridge and Transportation Improvement Divisions of Public Works.
These vacancies have translated into higher operating costs because the department has had to contract out hauling of materials such as limerock and road materials. There have been additional equipment rental costs to rent smaller equipment more matched to smaller crews. With inflation, the cost of materials has increased dramatically for FY22. In addition, there has been unbudgeted costs to set up the new pumps to address historical flooding areas.