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CC - Item 2E - Transfer Appropriations From Proposition A Fund to Air Quality Management District FundROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER *� DATE: APRIL 12, 2016 SUBJECT: TRANSFER APPROPRIATIONS FROM PROPOSITION A FUND TO AIR QUALITY MANAGEMENT DISTRICT FUND SUMMARY On August 11, 2015 the City Council directed staff to enter into an agreement with Southland Transit for paratransit services as well as converting the five new buses to propane. For the propane conversion, the City paid the bus manufacturer's propane conversion subcontractor, Green Alternative Systems, Inc. $130,140 in February 2016. Those costs were appropriated in the Proposition A Fund and charged to that fund as well. Subsequently, staff determined that Air Quality Management District (AQMD) funds can be used for the propane conversion costs. Since these costs had already been charged to the Proposition A Fund, a transfer needs to be made to transfer both the costs and the appropriations to the AQMD Fund. Staff Recommendation Staff recommends that the City Council approve Resolution # 2016 -16 authorizing the transfer of appropriations to the AQMD Fund. Fiscal Impact The AQMD Fund currently has a fund balance of $218,000. Staff is recommending appropriating $130,140 to this fund which will bring the fund balance to $87,860. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: Carolyn A. Chu Finance Director Attachments: Resolution# 2016 -16 ITEM N0, 21 APPROVED FOR CITY COUNCIL AGENDA: RESOLUTION NO. 2016 -16 A RESOLUTION OF THE CITY OF ROSEMEAD TRANSFERING APPROPRIATIONS FROM THE PROPOSITION A FUND TO THE AIR QUALITY MANAGEMENT DISTRICT FUND WHEREAS, appropriations are the legal authority for a City to spend its funds; and WHEREAS, from time to time it is necessary to amend the budget with additional appropriations; and WHEREAS, purchases charged to the line items requiring additional appropriations have received prior City Council approval; and WHEREAS, funds were previously appropriated in the Proposition A Fund for the purchase of propane tanks on the Rosemead Explorer vehicles; and WHEREAS, these funds will now be charged to the Air Quality Management District Fund (AQMD), NOW THEREFORE, $130,140 in appropriations will be transferred from the Proposition A Fund ( #215 - 3040 -5825) to the Air Quality Management District (AQMD) Fund ( #230 - 3040 -5825) for the cost of the propane tank conversions for the Rosemead Explorer and Dial -A -Ride vehicles. This transfer of appropriations is made a part of the approved FY2015 -16 budget as though it were a part of the initial approved budget fully set forth and the City Manager is authorized and empowered to expend such sum for the purpose of such account, but with no expenditure by any office or department for any item within an account shall exceed the amount budgeted therefore without prior written approval of the City Manager. PASSED, APPROVED and ADOPTED this 12 day of April 2016. Sandra Armenta, Mayor Carol Cowley, Interim City Clerk APPROVED AS TO FORM: Rachel Richman, City Attorney