Title
Resolution to Amend the Fiscal Year 2026 Council Approved Budget to Appropriate $1,084,000 from the Equipment Replacement Fund's Unrestricted Net Position to the Equipment Replacement Fund's Operating Budget to Fund Replacement Costs for Certain Hampton Police Division Vehicles
Purpose
PURPOSE/BACKGROUND:
The Public Works - Fleet Services Division (“Fleet”) worked with Newgen Financial to implement an equipment replacement model based on age, mileage, and repair costs. It was determined that the cost of some of the current Hampton Police Division (“HPD”) vehicles, particularly Chevy Caprices, (the "Equipment") due for replacement is more than the budgeted allocation. Replacement of this Equipment is critical to the day-to-day operations of the HPD and their ability to protect and serve the Hampton community.
The Equipment is no longer manufactured; therefore, parts are no longer available. Repairs cause extensive downtime and expense. There are 16 units in the Equipment Replacement Fund (the “Fund”) that haven't been replaced that Fleet is requesting to use net position money to replace. The units will be replaced with 16 police outfitted Ford Explorers.
In order to expedite the purchase order of the Equipment a transfer from the Equipment Replacement Fund's Unrestricted Net Position to the Equipment Replacement Fund's operating budget is requested.
Discussion:
The Equipment Replacement Fund was established to manage the replacement of City-owned equipment assets that are necessary for the day-to-day operations of City departments. Ongoing work is being done with City departments to identify equipment needs based on the mission to maintain City services, as well as the safety of City staff and the citizens being served. The Equipment identified as being critically in need of replacement this year will also produce revenue through services.
Impact:
As of June 30, 2025, the balance of the Equipment Replacement Fund's Unrestricted Net Position is $27,636,634. After the $1,084,000 appropriation to replace the Equipment, the balance of the Equipment Replacement Fund's Unrestricted Net Position will be $26,552,634. This particular request will enhance HPD's responsiveness and ability to protect and serve the Hampton community.
Recommendation:
Rec
Approve resolution.
Body
WHEREAS, the Equipment Replacement Fund (the "Fund") was established to manage the replacement of City-owned equipment assets that are necessary for the day-to-day operations of individual departments and is managed by assessing an annual usage/replacement cost based on the value of the equipment at the time of purchase;
WHEREAS, the cost of some of the current Hampton Police Division (“HPD”) vehicles, particularly Chevy Caprices, (the "Equipment") due for replacement is more than the budgeted allocation;
WHEREAS, replacement of the Equipment is critical to the day-to-day operations of HPD and HPD’s ability to protect and serve the Hampton community;
WHEREAS, the replacement cost of the Equipment is $1,084,000;
WHEREAS, the Fund's Unrestricted Net Position has enough capacity in reserves to cover the replacement cost of the Equipment and will greatly alleviate the replacement needs; and
WHEREAS, the appropriation will expedite the order of the Equipment with the manufacturer who currently has vehicles ready for purchase.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hampton, Virginia hereby amends its Fiscal Year 2026 Council Approved Budget to appropriate $1,084,000 from the Equipment Replacement Fund's Unrestricted Net Position to the Equipment Replacement Fund's operating budget in order to cover the cost of replacing the Equipment for the Hampton Police Division; and
BE IT FURTHER RESOLVED that the City Manager, or her authorized designee, is hereby authorized to take any and all necessary actions to carry out the purposes of this Resolution, subject to the approval by the City Attorney.