Okaloosa County BOCC — November 1, 2016 — Certification of Cost Allocation Plan for Preventative Maintenance — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: November 1, 2016 TO: Honorable Chairman and Members of the Board FROM: Elliot Kampert SUBJECT: Certification of Cost Allocation Plan for Preventative Maintenance DEPARTMENT: Growth Management BCC DISTRICT: All STATEMENT OF ISSUE: In order to utilize federal grant funds to pay for transit vehicle maintenance, the Board of County Commissioners must certify the allocation of costs as provided by the Fleet Management Department. BACKGROUND: In 2006, Okaloosa County initiated a preventative maintenance program for the transit vehicles using the County Fleet Management Department whose services are paid for using grant funds. In order to use grant funds for such maintenance, each year the County must certify that the charges for which grant funds are used are consistent with the provisions of Circular A-87 published by the Federal Office of Management and Budget. To this end, Fleet Management has developed the attached invoice and cost allocations which verify that the charges applied by Fleet Management are exclusively for maintenance and repairs, and include the customary associated costs that are allowable. Since the cost objective of the fees charged by Fleet Maintenance is the repair and maintenance of vehicles, this activity is a direct cost, since indirect costs are defined, in salient part, as: Indirect costs are those: Incurred for a common or joint purpose benefiting more than one cost objective, and not readily assignable to the cost objectives specifically benefitted, without effort disproportionate to the results achieved. The term ‘‘indirect costs,’’ as used herein, applies to costs of this type originating in the grantee department, as well as those incurred by other departments in supplying goods, services, and facilities. Cost objectives are in turn defined in OMB A-87 as “a function, organizational subdivision, contract, grant, or other activity for which cost data are needed and for which costs are incurred.” Fleet Management is an organizational subdivision under the BCC whose sole function is to repair and maintain County vehicles. The FY 16 allocations and certifications attached to this agenda item reflect invoices for maintenance activities through September 30, 2016 that have been processed through October 21, 2016. In the event an invoice for vehicle maintenance performed prior to September 30, 2016 is processed subsequent to October 21, 2016, the preventative maintenance invoice and certification will be revised accordingly and presented to the Chairman for signature as provided in the recommendations, below. OPTIONS: The Board may approve or not approve the attached cost allocations and certifications. RECOMMENDATIONS: Staff recommends that the Board of County Commissioners approve and authorize the Chairman to sign the Fleet Management charges, cost allocation and certification for FY 16, and authorize the Clerk’s Contracts and Grants office to process the requests for reimbursement for transit vehicle maintenance and repairs incurred during FY 16. Also, authorize the Chairman to sign any revised invoices, cost allocations, and certifications as may be presented subsequent to November 1, 2016. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator