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 th...
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