TO: Mayor and Members of City Council
THRU: Adam Lindsay, Assistant City Manager
FROM: Sheila Thomas-Ambat, Public Services Director
Kimberly Leonard, CLGBO, CLGFO, CPA, MPA,
Budget & Evaluation Director
DATE: September 9, 2024
RE:
Title
Adopt Capital Project Ordinance Amendments 2026, 2027 2028 to Fund $1,596,633 the North Street Drainage Improvement Project and Sunbury Drainage Improvement Projects
end
COUNCIL DISTRICT(S):
Council District(s)
2 & 4
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) 2025-26 & CPOA 2025-27 to transfer funding from prior year stormwater enterprise funds in the amount of $1,118,769 & $477,864 (total of $1,596,633) to CPOA 2025-28. In addition, Council is asked to adopt CPOA 2025-28 which will appropriate the $1,596,633 of funds from CPOA 2025-26 & CPOA 2025-27 plus an additional $1,794,683 from the Public Works Commission (PWC) for the North Street Drainage Improvement and Sunbury Drive 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 for both projects and PWC will reimburse the City for contractor expenditures for their utility upgrades.
Background:
Council approved a bid recommendation on May 13, 2024 to authorize the City Manager to execute a contract for the Sunbury Drive Drainage Improvements project with the lowest responsive, responsible bidder, TA Loving Company dba Pipeline Utilities, Inc., in the total amount of $7,024,174. Of the total contract value, PWC has items relating to their requested utility upgrades totaling $1,511,158. The City will pay the contractor invoices as they are received and will, in turn, bill PWC.
Council approved a bid recommendation on May 28, 2024 to authorize the City Manager to execute a contract for the North Street Drainage Improvements project with the lowest responsive, responsible bidder, Lanier Construction, Inc., in the total amount of $3,913,260. Of the total contract value, PWC has items relating to their requested utility upgrades totaling $283,525. 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 stormwater enterprise funds previously appropriated for these projects.
Budget Impact:
There is no impact to the City’s General Fund. The City’s portion of the project expenditures 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 2025-26, 2025-27 and 2025-28 to provide funding for the North Street Drainage Improvement Project and Sunbury Drive Drainage Improvement Project.
2. Do not adopt Capital Project Ordinance Amendments 2025-26, 2025-27 and 2025-28 and provide further direction to staff.
Recommended Action:
Staff recommends Council adopt the Capital Project Ordinance Amendments to provide funding for the North Street Drainage Improvement Project and Sunbury Drive Drainage Improvement Project.
Attachments:
Approved City of Fayetteville Construction Reimbursement Agreement - North Street
Approved City of Fayetteville Construction Reimbursement Agreement - Sunbury Drive
Capital Project Ordinance Amendment 2025-26
Capital Project Ordinance Amendment 2025-27
Capital Project Ordinance Amendment 2025-28