Commission Agenda Item

MEETING DATE:  8/22/2016

SUBJECT:  Resolution 16-18 Authorizing the Transfer of $32,900 from the General Fund-Special Expense Contingency Budget to the Recreation Department Budget; Authorizing the Transfer of $23,816 from the General Fund-Special Expense Contingency Budget to the Project Legacy Fund; Increasing the Project Legacy Fund in the Amount of $23,816 as a Result of the Transfer from the General Fund.

RECOMMENDED ACTION:

Adoption of Resolution 16-18 Authorizing the Transfer of $32,900 from the General Fund-Special Expense Contingency Budget to the Recreation Department Budget; Authorizing the Transfer of $23,816 from the General Fund-Special Expense Contingency Budget to the Project Legacy Fund; Increasing the Project Legacy Fund in the Amount of $23,816 as a Result of the Transfer from the General Fund.

Summary

The Finance and Administrative Services Department is requesting the transfer and appropriation of General Fund-Special Expense Contingency budget in the amount of $56,716 to cover the following budgetary needs:

A) On August 1, 2016, one of the two air conditioning (AC) units at the Hal Brady Recreation Complex failed. This unit is approximately seventeen (17) years old and is beyond the point of normal economic repair due to the wear of the internal components.  The second unit is of the same age and is exhibiting the same type of wear.  Facilities has recommended that both units be replaced with two new heating, ventilation and air conditioning (HVAC) units.  Staff is proceeding in accordance with this recommendation as replacing both units at the same time will save on future mobilization costs.  Additionally, the newer HVAC units will eliminate the need to use the heaters in the gym and should produce savings in energy consumption.  The cost of replacement of both AC units with new HVAC units is $32,900.  

B)  Finance and Administrative Services has received additional invoices pertaining to the Project Legacy Capital Project that are not eligible for payment from the Series 2016 bond proceeds.  In order to ensure compliance with bond covenants, a transfer from contingency is needed. These invoices include work performed for geotechnical engineering work and for plan reviews.  The amount of the invoices is $23,816.