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Approve an Appropriation Transfer Request (ATR) in the amount of $358,372 $358,732 to transfer $179,366 from salary savings to Operating Transfer-Out in the Agriculture Department, and $179,366 from the Agriculture Department to the Accumulated Capital Outlay for the Agriculture Department’s share of the cost associated with the Fairfield Domestic Water Connection Project at the Cordelia Campus (4/5 vote required)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Interim Agricultural Commissioner and the County Administrator’s Office recommend that the Board approve an Appropriation Transfer Request (ATR) in the amount of $358,372 $358,732 to transfer $179,366 from salary savings to Operating Transfer-Out in the Agriculture Department, and $179,366 from the Agriculture to the Accumulated Capital Outlay for Agriculture Department’s share of the cost associated with the Fairfield Domestic Water Connection Project at the Cordelia Campus (4/5 vote required).
SUMMARY:
The Interim Agricultural Commissioner and the County Administrator’s Office recommend re-appropriating salary and benefit savings, primarily resulting from the vacant Agricultural Commissioner position, toward the Fairfield Domestic Water Connection Project cost. This expenditure transaction is an eligible cost for the determination of eligibility for unclaimed refundable State gas tax revenue as part of the County’s FY2018/19 maintenance of effort (MOE) calculation in support of agricultural programs. The California Food and Agricultural Code, section 224.5, requires counties to maintain a level of support to be eligible for the unclaimed gas tax (UGT) revenue. In FY2018/19, the department received $667,755 in UGT and will be eligible to receive a similar amount in FY2019/20 if the MOE is met.
FINANCIAL IMPACT:
The Fairfield Domestic Water Connection Project was financed with the Capital Renewal Reserve Fund and the Accumulated Capital Outlay Fund. The transfer-out of $179,336 from the Agriculture Department to the Accumulated Capital Outlay Fund would offset the use of Capital Renewal Reserve Funds, and thereby, making those funds available for other capital renewal projects. The Agriculture Department will be able to include $179,366 as part of the FY2018/19 maintenance of effort in support of agricultural programs through its Annual Financial Statement submitted to the State for the provision of determination of eligibility for unclaimed refundable gas tax (UGT) funds. Farmers who spend money at gas stations and use the fuel off-road, such as in tractors, all-terrain vehicles and other farm equipment, can file Form 540 with the Franchise Tax Board to have the tax paid on fuel returned; however, most do not. The money then becomes unclaimed refundable gas tax and is distributed statewide to county agricultural commissioners to assist with providing funding for agricultural programs and services in their offices.
The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2018/19 Adopted Budget.
DISCUSSION:
The California Food and Agricultural Code, section 224.5, requires counties to maintain a level of support for agriculture to be eligible for unclaimed refundable gas tax (UGT) revenue. To be an eligible county, the criteria includes: 1) employ/contract with a licensed agricultural commissioner; 2) submit annual agricultural expenditure reports to the State in a timely manner; and 3) maintain county general fund support for agricultural services at least equal to the average amount expended for the five preceding fiscal years. This criteria has been in effect since 2008. The department’s FY2017/18 MOE (five-year average) was $929,204 with the department receiving $667,755 in UGT revenue in FY2018/19. UGT revenue supports pest-detection and pest-eradication programs, as well as pesticide use enforcement, inspections at terminals, farmers markets and other agricultural programs. The FY2018/19 projected five-year average MOE for Solano County Ag Department is approximately $807,434.
The Agriculture Department has salary savings resulting from vacancies, including the vacant Ag Commissioner/Sealer of Weights and Measures position, and recommends re-appropriating $179,366 from salaries and benefits to an operating transfer-out to fund a portion of the cost for the Fairfield Domestic Water Connection Project and to be used toward the FY2018/19 maintenance of effort (MOE) determination for County support of agricultural programs.
On September 25, 2018, the Board approved the Fairfield Domestic Water Connection Project for the Cordelia Campus, which houses the Agriculture Department and General Services’ mail room and surplus, to deliver a reliable water source of domestic water provided by the City of Fairfield. The project included trenching and installation of new domestic water lines and improvements from an existing water line at the eastbound I-80 Cordelia Commercial Vehicle Enforcement Facility (Truck Scales) to the Solano County Cordelia Campus and was completed in April 2019.
The cost for utilities at the Cordelia Campus is split between General Services and the Agriculture Department and is primarily based on square footage occupied by each department at the campus, with the Agriculture Department responsible for 45% of the cost. The Interim Agricultural Commissioner and the County Administrator’s Office recommend that the Board approve an ATR in the amount of $179,366, which is 45% of the Fairfield Domestic Water Connection Project, from salary savings to Operating Transfer-Out in the Agriculture Department, and $179,366 from the Agriculture Department (BU 2831) to the Accumulated Capital Outlay (BU 1720) which will be included in the Department’s MOE in the Annual Financial Statement submitted to the State.
ALTERNATIVES:
The Board could choose not to approve this ATR; however, the project has been completed and the Agriculture Department Budget has available funding to contribute toward the project due to a vacancy. If not approved, the portion of the Domestic Water Connection cost at the Cordelia Campus will not be able to be counted towards the maintenance of effort required for qualifying to receive unclaimed gas tax revenue for the Agriculture Department.
OTHER AGENCY INVOLVEMENT:
The Department of General Services has been consulted.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION