Title
Resolution to Amend the Fiscal Year 2025 Council Approved Budget to Appropriate $3,200,000 from the Equipment Replacement Fund's Unrestricted Net Position to the Fleet Services Budget to Fund Critical Upgrade Costs for the Public Works - Fleet Services Division Fuel Island at North Armistead Avenue
Purpose
PURPOSE/BACKGROUND:
In order to continue working, the Fleet fuel island located at 413 North Armistead Avenue ("North Armistead Fuel Island") has reached the end of its life and is in need of hardware improvements, electrical upgrades, and software updates. A budget amendment is necessary to appropriate funds for the needed improvements.
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. The North Armistead Fuel Island supports all City-owned equipment and assets in their daily operations. This amendment will effectively reduce reserves with the future financial implication being that departments will have to replace the funds over a period of years.
Impact:
As of June 30, 2024, the balance of the Equipment Replacement Fund's Unrestricted Net Position is $25,601,251. After the $3,200,000 appropriation to replace the fuel island, the balance of the Equipment Replacement Fund's Unrestricted Net Position will be $22,401,251.
Recommendation:
Rec
Approve.
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 the individual departments and assess an annual usage/replacement cost based on the value of the equipment at the time of purchase;
WHEREAS, Hampton Public Works - Fleet Services Division has identified a critical need at the fuel island located at 413 North Armistead Avenue for the hardware, software, and electrical system (collectively the “Fuel Island”) to be upgraded this year for the continuity of service provision to the Hampton community;
WHEREAS, the upgrade cost of the Fuel Island is $3,200,000;
WHEREAS, the Fund's Unrestricted Net Position has enough capacity in reserve to cover the costs of the upgrade of the Fuel Island; and
WHEREAS, the appropriation will expedite the upgrade of the Fuel Island, which will provide continuous service to support our City operations.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hampton, Virginia hereby amends its Fiscal Year 2025 Council Approved Budget to appropriate $3,200,000 from the Equipment Replacement Fund's Unrestricted Net Position to the Fleet Services Budget to be used to cover the costs of upgrading the Fuel Island; 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.