Title
Resolution to amend the Fiscal Year 2026 Council Approved Budget and Accept and Appropriate to the Capital Budget (Capital Projects) Fund $918,000 and any related supplemental funding received from the Virginia Department of Transportation pursuant to the Memorandum of Agreement and 2023 Letter Agreement Regarding the Redesign and Reconstruction of River Street Park.
Purpose
PURPOSE/BACKGROUND:
In order to address impacts to River Street Park (the 'Park") as a result of the Hampton Roads Express Lane Project Segment 4(c), the City negotiated a Memorandum of Agreement (the "Memorandum") with the Virginia Department of Transportation ("VDOT") regarding the Park. The Memorandum was fully executed by the City and VDOT on August 23, 2021. Under the Memorandum, there are two cost estimates that the City must submit to VDOT.
The first cost estimate was related to the removal and relocation or storage of Park elements during the project's construction. Following the City's submission of the first cost estimate to VDOT and further discussions, VDOT signed a letter agreement on March 11, 2022, stating that VDOT would pay the City one hundred thirteen thousand four hundred ninety dollars ($113,490) for the removal and relocation or storage of certain Park elements during the Project's construction. VDOT submitted the payment to the City via wire transfer on March 21, 2022. City Council accepted and appropriated that payment on May 25, 2022.
The second cost estimate is related to the redesign and reconstruction of the Park following the Project's completion. After being unable to reach agreement on a specific reimbursement amount, the City and VDOT signed a letter agreement dated December 15, 2023 stating that VDOT will compensate the City for its actual costs. The letter agreement established a procedure by which the City submits quarterly cost estimates to VDOT for review, approval, and, ultimately, payment. There is not a set cap on the overall amount of the cumulative reimbursements; however, the then current cost estimate of $918,000 will be utilized to identify appropriate line items for which the City may seek reimbursement. The source of the VDOT payments to the City will be the Hampton Roads Transportation Fund. The purpose of this resolution is to accept and appropriate payments that will be made by VDOT to the City in relation to the second cost estimate.
Discussion:
See Purpose/Background
Impact:
The VDOT payment will fund the City's cost to redesign and reconstruct River Street Park following the completion of the Hampton Roads Express Lane Segment 4(c) Project.
Recommendation:
Rec
Approve Resolution
Body
WHEREAS, the City of Hampton, Virginia (the "City") and the Virginia Department of Transportation ("VDOT") entered into a Memorandum of Agreement regarding River Street Park dated August 23, 2021 (the "Memorandum");
WHEREAS, pursuant to that Memorandum, the City submitted a cost estimate to VDOT regarding costs to redesign and reconstruct River Street Park following the completion of VDOT's Hampton Roads Express Lane Project Segment 4(c);
WHEREAS, the City and VDOT entered into a letter agreement dated December 15, 2023 (the "2023 Letter Agreement"), establishing the procedures and time frames for the City to submit, and VDOT to review to review, approve, and make payment of, reimbursement requests associated with these costs;
WHEREAS, the City and VDOT did not establish a specific reimbursement amount in the 2023 Letter Agreement, rather VDOT agreed to reimburse the City for its actual costs, as submitted to and accepted by VDOT pursuant to the 2023 Letter Agreement and the then current estimated cost of $918,000;
WHEREAS, pursuant to the 2023 Letter Agreement, the City submitted its first quarterly reimbursement request for $21,396.43 on October 14, 2025; the request was approved by VDOT and payment received on October 31, 2025;
WHEREAS, the City and VDOT will continue to follow the reimburse request and payment procedures, as outlined in the 2023 Letter Agreement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hampton, Virginia hereby amends the Fiscal Year 2026 Council Approved Budget to accept and appropriate to the Capital Budget (Capital Projects) Fund, $918,000 and any related supplemental funding received from VDOT pursuant to the Memorandum of Agreement and the 2023 Letter Agreement regarding the Redesign and Reconstruction of River Street Park.