TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM, City Manager
FROM: Adam Lindsay, Assistant City Manager
Sheila Thomas-Ambat, Public Services Director
Kimberly Leonard, CLGBO, CLGFO, CPA, MPA, Budget & Evaluation
Director
DATE: June 10, 2024
RE:
Title
Adoption of Capital Project Ordinance Amendments 2024-21 and 2024-22 to appropriate additional funding for the Ray Ave Drainage Improvement Project
end
COUNCIL DISTRICT(S):
Council District(s)
2
b
Relationship To Strategic Plan:
Goal 1: Safe and Secure Community
Goal 3: High Quality Built Environment
Goal 4: Desirable Place to Live, Work and Recreate
Executive Summary:
Council is asked to adopt Capital Project Ordinance Amendment (CPOA) 2024-21 to transfer funding from the Ray Ave STW & St Improvement project in the amount of $1,303,981 to CPOA 2024-22. In addition, the council is asked to adopt CPOA 2024-22 which will appropriate the $1,303,981 of funds from CPOA 2024-21 plus an additional $784,206 from the Public Works Commission (PWC) for the Ray Avenue Drainage Improvement Project. The additional funding is for PWC utility upgrades that are not eligible for American Rescue Plan Act (ARPA) funding as well as City project related cost over the provided ARPA funds. The City and PWC have entered into a reimbursable agreement and PWC will reimburse the city for contractor expenditures for their utility upgrades.
Background:
The Ray Avenue Drainage Improvement Project will construct infrastructure upgrades to the existing storm drain system along Ray Avenue and Maiden Lane which consists of concrete pipe and aging/failing infrastructure. The failing storm sewer system is being removed and upsized to provide more drainage capacity to reduce localized flooding.
Council approved the bid recommendation on March 25, 2024 to authorize the City Manager to execute a contract for the Ray Avenue Drainage Improvement Project with the lowest responsive, responsible bidder, TA Loving Company dba Pipeline Utilities, Inc., in the total amount of $2,957,376.00.
Of the total contract value, PWC has items relating to their requested utility upgrades totaling $784,206. The City will pay the contractor invoices as they are received and will, in turn, bill PWC.
Issues/Analysis:
Funding associated with these CPOAs as it relates to the utility upgrades will be reimbursed by PWC. The City will pay the contractor invoices as they are received and will, in turn, bill PWC. Funding associated with these CPOAs as it relates to the City’s project cost are utilizing funds previously appropriated for this project.
Budget Impact:
There is no impact to the City’s General Fund. Project will be funded with ARPA funding from the State Fiscal Recovery Fund established in S.L. 2021-180. Any cost overruns on City items would be funded with previously appropriated stormwater enterprise funds for this project. PWC items related to their utility upgrades are not eligible for ARPA funding and will be PWC’s responsibility to fund. The City will pay the contractor invoices as they are received and will, in turn, bill PWC.
Options:
1. Adopt Capital Project Ordinance Amendments 2024-21 and 2024-22 to provide additional funding for the Ray Avenue Drainage Improvement Project.
2. Do not adopt Capital Project Ordinance Amendments 2024-21 and 2024-22 and provide further direction to staff.
Recommended Action:
Staff recommends Council adopt Capital Project Ordinance Amendments 2024-21 and 2024-22 to provide additional funding for the Ray Avenue Drainage Improvement Project.
Attachments:
Executed CoF Construction Reimbursement Agreement - Ray Ave
Capital Project Ordinance Amendment 2024-21
Capital Project Ordinance Amendment 2024-22