Title
Resolution to Amend the Fiscal Year 2022 Council Approved Budget to Appropriate $3,000,000 from the Solid Waste Management Fund Unrestricted Net Position to the Solid Waste Management Fund’s Operating Budget to Fund Replacement Cost for Solid Waste Vehicles and Equipment
Purpose
PURPOSE/BACKGROUND:
The purpose of this resolution is to authorize funding to purchase eleven (11) new Solid Waste vehicles and related equipment (collectively, the “Vehicles”): four (4) Automated Refuse Trucks; four (4) Knuckle Boom Trucks; two (2) Rear Loaders; and one (1) Tractor-Trailer with a Walking Tipping Floor. Replacement of aging vehicles and the purchase of the Vehicles is critical to the day-to-day operations of the Hampton Public Works - Solid Waste Division (the “Division”) and their ability to provide City services.
Due to the rising cost of raw steel, it would benefit the City of Hampton to purchase the new Vehicles now versus risking substantial increases in the future. Raw Steel prices are increasing up to 15% every three (3) months. In order to expedite the purchase order of the Vehicles, a transfer from the Solid Waste Management Fund Unrestricted Net Position to the Solid Waste Management Fund’s operating budget is required.
Discussion:
The average useful life of the Division vehicles and equipment is 7 years and several have passed this age. Vehicles and equipment past their life cycle cost more in maintenance than those vehicles and equipment within their life cycle. The 11 vehicles identified as being critically in need of replacement this year will improve the daily operations in providing services to our citizens and reduce maintenance costs.
Impact:
The use of those funds will enable the Division to provide more efficient and reliable services to the citizens of Hampton.
Recommendation:
Rec
Approve
Body
WHEREAS, the Hampton Public Works - Solid Waste Division (the “Division”), has identified eleven (11) collection vehicles and related equipment in the fleet inventory (collectively, the “Vehicles”), that need to be replaced;
WHEREAS, the replacement cost of the Vehicles is estimated to cost $3,000,000;
WHEREAS, the Solid Waste Management Fund Unrestricted Net Position has enough capacity in the reserves to fund the cost of the Vehicles and will greatly alleviate the replacement needs;
WHEREAS, due to the rising cost of raw steel, it would benefit the City of Hampton to purchase the Vehicles now to mitigate rapidly rising costs; and
WHEREAS, an appropriation from the Solid Waste Management Fund Unrestricted Net Position to the Solid Waste Management Fund’s operating budget will expedite the order of the Vehicles with the manufacturer who is currently experiencing a longer than average delivery time.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hampton, Virginia hereby amends its Fiscal Year 2022 Council Approved Budget to appropriate $3,000,000 from the Solid Waste Management Fund Unrestricted Net Position to the Solid Waste Management Fund’s operating budget to fund the cost of replacing the Vehicles for the 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.