AGENDA ITEM NO. 9
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AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
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| DATE: | June 16, 2026 |
TO: |
Mayor and City Council |
FROM: |
Milan Mrakich, City Manager |
SUBJECT: |
CONSIDERATION OF BUDGET AMENDMENT FOR FLEET SERVICES OPERATIONS – FLEET VEHICLE REPAIRS AND FUEL EXPENDITURES |
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2026-56 - A RESOLUTION OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2025 AND ENDING JUNE 30, 2026 (FLEET SERVICES OPERATIONS)
RESOLUTION NO. 2026-56 - A RESOLUTION OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING A BUDGET AMENDMENT FOR THE FISCAL YEAR COMMENCING JULY 1, 2025 AND ENDING JUNE 30, 2026 (FLEET SERVICES OPERATIONS)
BACKGROUND:
The Public Works Department – Fleet Services Division is responsible for maintaining and supporting the City's fleet of vehicles and equipment utilized by all City departments. Throughout Fiscal Year 2025-26, Fleet Services has experienced significantly higher-than-budgeted expenditures in several operational categories, including vehicle collision repairs, fleet maintenance services, and fuel purchases.
These increased costs are attributable to rising repair expenses, increased vehicle usage, aging fleet assets requiring additional maintenance, and substantial increases in gasoline and diesel fuel prices. As a result, current appropriations are insufficient to support operational needs through the remainder of the fiscal year.
These increased costs are attributable to rising repair expenses, increased vehicle usage, aging fleet assets requiring additional maintenance, and substantial increases in gasoline and diesel fuel prices. As a result, current appropriations are insufficient to support operational needs through the remainder of the fiscal year.
DISCUSSION:
Fleet Services has conducted a review of current expenditures, outstanding obligations, and projected costs through June 30, 2026. The review identified funding shortfalls in the following accounts:
1. Fleet Vehicle Repairs – Ford Fleet Care
2. Fuel Expenditures – WEX Fuel Services
The proposed budget amendment required for these Fleet Services operational accounts is $124,000, and will ensure Fleet Services can continue to provide uninterrupted maintenance, repair, and fueling services for City vehicles through the end of Fiscal Year 2025-26.
1. Fleet Vehicle Repairs – Ford Fleet Care
o Account: 365.522.61.52.67.00.63.63290
o Current Available Budget: $47,809.96
o April Expenditures: $21,099.86
o Average Monthly Expenditures: Approximately $25,000.00 (x 2)
o Additional Funding Required: $24,000.00
Repair and maintenance costs for Ford fleet vehicles have increased due to higher parts costs, labor rates, and the ongoing maintenance requirements of aging vehicles.o Current Available Budget: $47,809.96
o April Expenditures: $21,099.86
o Average Monthly Expenditures: Approximately $25,000.00 (x 2)
o Additional Funding Required: $24,000.00
2. Fuel Expenditures – WEX Fuel Services
o Account: 365.522.61.52.67.00.64.64850
o Current Available Budget: $153,131.22
o April Fuel Costs: $87,568.80
o May Fuel Costs: $82,732.44
o June Projected Fuel Costs: $82,000.00
o Additional Funding Required: $100,000.00
o Current Available Budget: $153,131.22
o April Fuel Costs: $87,568.80
o May Fuel Costs: $82,732.44
o June Projected Fuel Costs: $82,000.00
o Additional Funding Required: $100,000.00
Fuel expenditures have significantly exceeded projections due primarily to increased gasoline and diesel prices and continued operational demand for City services. In April, there was a budget transfer in the amount of $60,000 from the fuel account to auto body & paint services required for collisions. The transfer was done prior to the severe price increase for fuel in May 2026.
The proposed budget amendment required for these Fleet Services operational accounts is $124,000, and will ensure Fleet Services can continue to provide uninterrupted maintenance, repair, and fueling services for City vehicles through the end of Fiscal Year 2025-26.
LEGAL REVIEW:
The City Attorney's Office has reveiwed the resolution and approved it as to form.
OPTIONS:
The City Council has the following options:
- Approve Staff’s recommendation; or
- Provide alternative direction.
Prepared by:
Renee M. G. Chavez, Management Analyst I
Additional Approval:
Roxanne E. Lerma, Assistant City Manager
Fiscal Impact
FISCAL IMPACT:
The proposed budget amendment will require the following funding:
| Account Number | Account Description | Additional Funding |
| 365.522.61.52.67.00.64.64850 | Fuel Usage | $100,000.00 |
| 365.522.61.52.67.00.63.63290 | Other Vehicle Sublet Repairs | $24,000.00 |
| Total Additional Funding Required | $124,000.00 |
Attachments
CITY COUNCIL GOALS & OBJECTIVES:
Protect Public Safety
Enhance City Image and Effectiveness
Enhance City Image and Effectiveness