Title
Resolution to Amend the Fiscal Year 2025 City Council Approved Budget by Authorizing an Advance of $500,000 from the Steam Plant Unrestricted Net Position to be Appropriated to the Steam Plant Operating Budget to Fund the Refuse Crane Runway Rail Replacement
Purpose
PURPOSE/BACKGROUND:
The worn rail system that supports the cranes at the Hampton Steam Plant is in immediate need of replacement. Years of operation have caused significant wear, leading to alignment issues that now require a full replacement before the new cranes can be installed. The estimated delivery time of this product or the start of the service is four weeks from the moment of ordering. The immediate replacement of this crane will enable the Steam Plant to continue operations with limited interruption. The City’s service provider outlined the installation timeline and quoted costs but cannot proceed without first overhauling the track assembly. Additionally, they must purchase materials in advance to keep the project on schedule.
Discussion:
The Fiscal Year 2025-2029 Capital Improvement Plan and the Fiscal Year 2025 approved and appropriated Capital (Projects) Budget includes funds for a Steam Plant Maintenance Project to be funded from proceeds from the City's next General Obligation Bond Series, when issued. As of January 31, 2025, the balance of the Steam Plant Retained Unrestricted Net Position is $2,148,152. After the $500,000 appropriation for the Refuse Crane Runway Rail Replacement, the balance of the Steam Plant Unrestricted Net Position will be $1,648,152. The $500,000 will be returned to the Steam Plant Unrestricted Net Position from the proceeds of that next General Obligation Bond Series, not yet issued.
Impact:
This advanced funding will allow the Steam Plant to more quickly move forward with the needed replacement, with limited interruption in service.
Recommendation:
Rec
Approve.
Body
WHEREAS, the Steam Plant has identified the immediate need to replace the refuse crane runway rail system, which has an estimated replacement cost of $500,000;
WHEREAS, the Fiscal Year 2025-2029 Capital Improvement Plan and the Fiscal Year 2025 approved and appropriated Capital (Projects) Budget includes funds for a Steam Plant Maintenance Project to be funded from proceeds from the City's next General Obligation Bond Series, when issued;
WHEREAS, the proceeds from the issuance of that next General Obligation Bond Series will not be available in sufficient time to permit the procurement and performance of necessary work in a timely manner to meet the immediate needs of the Steam Plant, begin preliminary work, and work during the most opportune time; and
WHEREAS, an appropriation of $500,000 from the Steam Plant Unrestricted Net Position to the Steam Plant Operating Budget is recommended to provide advance funding that Steam Plant Maintenance Project requires until the respective General Obligation Bond Series is issued, at which time advanced funds will be returned to the Steam Plant Unrestricted Net Position.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hampton, Virginia hereby amends the Fiscal Year 2025 City Council Approved Budget to appropriate $500,000 from the Steam Plant Unrestricted Net Position to the Steam Plant's Operating Budget to fund the Steam Plant Maintenance Project described herein; and
BE IT FURTHER RESOLVED that:
1. 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; and
2. This advanced funding shall be returned to the Steam Plan Unrestricted Net Position as soon as practicable from the proceeds of the next General Obligation Bond Series, not yet issued.