Okaloosa County BOCC — August 4, 2015 — Approval of Cost Allocation for Vehicle Maintenance — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: August 4, 2015 TO: Honorable Chairman and Members of the Board FROM: Elliot Kampert SUBJECT: Approval of Cost Allocation for Vehicle 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. However, during the 2012 Triennial Review, the Federal Transit Administration determined that the County needed to verify that the charges applied by Fleet Management were consistent with the guidelines provided in Circular A-87 published by the Federal Office of Management and Budget. To this end, Fleet Management has developed the attached 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. As costs are subject to change, a cost allocation must be provided for each year for which reimbursement is sought. The Board’s acceptance of Fleet’s cost allocation schedules will enable the County to receive reimbursement for maintenance performed during FY 13 and FY 14. An allocation will also be prepared for FY 15 and all subsequent years. 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 cost allocations and certifications for FY 13 and FY 14, and authorize the Clerk’s Contracts and Grants office to process the requests for reimbursement for transit vehicle maintenance and repairs incurred during those fiscal years. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator