DATE: December 11, 2018
SUBJECT:
Title
RESOLUTION APPROVING THE TRANSFER OF FUNDS WITHIN THE FY2019-2023 CAPITAL IMPROVEMENT PROGRAM BUDGET APPROPRIATION FROM CIP RESERVE AND CONTINGENCY TO CIP CAPITAL LABOR IN THE AMOUNT OF $1,500,000 PURSUANT TO BPC POLICIES NO. 90 AND NO. 120
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EXECUTIVE SUMMARY:
The Capital Improvement Program (CIP) was established for the orderly development or improvement of the capital assets of the Port pursuant to BPC Policy No. 120. The internal costs of staff (capital labor) for each project are completely funded by the CIP and are deducted from the personnel expense budget for this investment.
The FY2019-2023 CIP budget included an estimate of $1,850,000 for capital labor which was forecast in January 2018 to be remaining at the end of FY 2017/18. During the second half of FY2017/18, the Chula Vista Bayfront project achieved major milestones which necessitated the deployment of additional staff in order to meet District obligations. These additional resources accelerated the use of capital labor and the actual remaining balance at the beginning of FY2018/19 was 1,088,437.
The Board has transferred funds to capital labor as needed over the past 3 years to fund the cost of internal labor pursuant to BPC No. 120. Staff anticipates the balance of capital labor will be depleted in January 2019 and recommends transferring $236,700 from CIP Contingency and $1,263,300 from CIP Reserve, for a total of $1,500,000, to CIP Capital Labor. This is expected to provide the required capital labor through the remainder of FY2018/19. At the 2019 budget workshop, staff will recommend funding additional capital labor to support the CIP program through FY 2019/20.
RECOMMENDATION:
Adopt a resolution approving the transfer of funds within the FY 2019-23 Capital Improvement Program budget appropriation from CIP Reserve and Contingency to CIP Capital Labor in the amount of $1,500,000 pursuant to BPC Policies No. 90 and No. 120
FISCAL IMPACT:
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