The Fleet Division of the Property Management Department is facilitating a transfer of ownership of several vehicles from the Capital Projects Service Fund for the Construction Inspection Section of the Transportation and Public Works Department to the General Fund for the Streets Division of the Transportation and Public Works Department. This internal acquisition will serve as an alternative to expending budgeted funds on the purchase of new vehicles. The vehicles are no longer needed by the Construction Inspection Section and will replace older models that will be turned in for auction by the Streets Division. The FY2016 Capital Improvement Program (CIP) included funding in the Vehicle & Equipment Replacement Fund (VERF) for the Streets Division to replace vehicles and equipment. The transfer of vehicles will result in the cancellation of previously approved Equipment Purchase Requests (EPRs) related to these vehicles, and a portion of the funds budgeted for new vehicle and equipment purchases will be transferred to the Capital Projects Service Fund. Adoption of the first ordinance will revise the capital appropriation ordinance that was adopted earlier this year to reduce project totals and lower the amount for external capital outlays. Adoption of the second ordinance will: (i) reallocate the dollars within the General Fund for the Transportation and Public Works Department to reflect that funds for the internal acquisitions will be transferred to the Capital Projects Service Fund for the external outlay for external vehicle and equipment purchases; and (ii) document the transfer in and increased contribution to the fund balance in the Capital Projects Service Fund. Once these funds have been reclassified for a budgeted transfer, the Chief Financial Officer will be able to effect the transfer of funds in accordance with the authority delegated to him in the FY2016 operating appropriation ordinance. The amount that is being transferred to the Capital Projects Service Fund is based on the presumptive value of the vehicles. "Presumptive value" is used to determine value when vehicles are either too new or unique to use the City's average auction value. The Texas Standard Presumptive Value (SPV) is a value generated by the State of Texas for tax purposes for vehicles that are not bought through a licensed vendor. Presumptive value is approximately 10 percent lower than Kelly Blue Book for private sale, very good condition. Both are based on year, model, and mileage. Both divisions have agreed upon the presumptive value of the vehicles as a fair value. The presumptive value of the vehicles being transferred is: EQUIPMENT NO. | YEAR | MAKE | MODEL | PRESUMPTIVE VALUE | 2060047 | 2006 | Chevrolet | Pickup | $6,500.00 | 2060048 | 2006 | Chevrolet | Pickup | $6,500.00 | 2060049 | 2006 | Chevrolet | Pickup | $6,500.00 | 2060064 | 2007 | Ford | Pickup | $6,500.00 | 2080113 | 2011 | Ford | Pickup | $6,500.00 | This M&C does not request approval of a contract with a business entity. |