Minutes 01/10/2006 - Laserfiche WebLink

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January 10, 2006 Staff Recommends: Adoption of an ordinance to appropriate the $195,152.00 from the Department of Justice grant to provide funds for technology, equipment and crime prevention initiatives along with continued funding to support Drug Court Program to the Portsmouth Police Department. Vision Principle: Neighborhood and Community Transformation and Bold New Directions. Next Steps Following Council Action: . The Chief of Police or his designee will provide grant management and oversight. Motion by Mr. Heretick, and seconded by Ms. Randall, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE ACCEPTING A GRANT IN THE AMOUNT OF $195,152 FROM THE UNITED STATES DEPARTMENT OF JUSTICE AND APPROPRIATING THE SAME AMOUNT IN THE 2005-2006 GRANTS FUND FOR THE DRUG COURT PROGRAM AND FOR POLICE TECHNOLOGY, EQUIPMENT, AND CRIME PREVENTION INITIATIVES." Ayes: Heretick, Randall, Smith, Whitehurst, Holley Nays: None 06 - 22 - Adoption of an ordinance to appropriate $1,260,600 from the City Garage fund balance to cover fuel costs for the remainder of FY 2006. The City Garage's fund balance is recommended as a one-time funding source due to the unpredictable nature of the energy markets, which are not within the control of the City. Vision Principle: Bold New Directions. Background: . Gulf Coast Hurricanes have impacted the cost of fuel and increased the City's costs over that budgeted in FY 06. At the end of the first quarter of FY 06, departments have depleted 78% of their allocated fuel budget and, based on this trend, 100% will be depleted by the end of January 2006. Discussion: . The City Garage is an internal service fund and charges a rental rate to City departments based on each department's vehicle maintenance costs, fuel costs and depreciation costs. Maintenance charges for each vehicle are calculated based on the type of vehicle, usage and historical maintenance costs. . During the FY 06 budget preparation process, fuel costs were calculated using $1.37 per gallon of fuel. Since July 1,2006, the City Garage has paid between $1.55 and $2.68 per gallon of fuel. Therefore, an increase in fuel costs, and not an increase in vehicle usage, has created a shortfall in the City Garage fund of approximately $1.2 million dollars. . To address the variance between actual and budgeted fuel costs for FY 06, an analysis of fuel cost and fuel usage was conducted. For each General Fund department, a rate of $2.35 per gallon of fuel was multiplied by the projected average fuel usage for each departmental vehicle. Market forecasts projecting the stability of fuel rates over the next several months were also taken into consideration. Staff Recommends: Adoption of an ordinance to appropriate $1,260,600 from the City Garage fund balance to cover fuel costs for the remainder of FY 2006. The City Garage's fund balance is recommended as a one-time funding source due to the unpredictable nature of the energy markets, which are not within the control of the City. Vision Principle: Bold New Directions.