Title
AMENDMENT OF THE CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT B-325: PAVING OF 53RD STREET NORTH FROM WEBB ROAD TO GREENWICH ROAD.
Presented by: David C. Spears, P.E., Director of Public Works/County Engineer.
RECOMMENDED ACTION: Approve the amendment.
Body
In 2009, the Board of County Commissioners determined that there was a need to create large shovel ready industrial sites in Sedgwick County. The Board focused on a large site in Bel Aire roughly bounded by 45th St. North, Webb Road, 61st St. North and Greenwich Road. During development of the 2010 - 2014 CIP (summer of 2009), two projects were added to pave roads in the area. R-324 would improve 45th St. North between Webb and Greenwich along the southern boundary of the proposed industrial park and R-325 would improve 53rd St. North between Webb and Greenwich through the middle of the industrial park.
In 2010 bonds were sold to finance part of the cost of both projects but there was renewed discussion about the projects later in the year. Public Works was instructed to hold up on the projects until further notice. In late 2011, Public Works was directed to go forward with both projects. In January of 2012, TranSystems was contracted to perform design work on both projects. Right of way acquisition for R-325 is now complete and arrangements have been made for utility relocation work.
On April 2, 2013, bids were received for R-325. A summary of project budget and bid information is shown below:
2009 Construction Budget: $1,350,000
2009 Utility Budget: $50,000
Expenses Prior to Letting: $114,866.62 (Design $88,500 and Utility Relocation) $26,366.62)
2013 Engineers Estimate: $2,528,254.50
Low Bid: $1,833,242.15
Budget Shortfall: $548,108.77
Contingency (6%) $109,995.00
Funds Requested: $658,103.77 (Shortfall + Contingency)
The primary drivers for the shortfall are 1) the time that has elapsed since the original project estimate was prepared 4 years ago and 2) the fact that the CIP was never amended to provide separate funding for design and right of way acquisition activities. The project was intended to be constructed quickly and the original budget did not include any inflation factors.
Public Works has been notified by KDOT that the county is eligible to receive significantly more Federal Funds Exchange dollars in 2013 than expected. These are state funds that are to be received by the county in lieu of federal highway funds. The state funds have significantly fewer strings attached to them than their parent federal funds. Sedgwick County is currently eligible to receive enough exchange funds to cover the projected shortfall. These extra funds have not been budgeted in the current CIP.
Federal Exchange Funds are distributed to counties on a reimbursement basis. Public Works recommends a transfer of sales tax from B-443 (cost center 21621-231) to R-325 (cost center 21640-231) to fund construction through the reimbursement period. Use of the Federal Exchange Funds will require approval of an agreement between KDOT and Sedgwick County prior to receipt of any reimbursement.
The CIP Committee met and discussed the proposed amendment on April 5th. The Committee approved the amendment as presented.
Alternatives: Reject all bids and reconsider construction of the project or modify the amendment to utilize some other source of funds to cover the projected shortfall.
Financial Considerations: Sufficient sales tax funds exist to cover the project expenses during construction and sufficient Federal Exchange Funds have been allocated to Sedgwick County to cover the shortfall and proposed project contingency through reimbursement.
Legal Considerations: The Board is authorized to amend the CIP under K.S.A. 19-120.
Policy Considerations:
Outside Attendees:
Multimedia Presentation: