AGENDA #4c

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Resolution Calling a Special Meeting of the Town Council on June 20, 2005

DATE:            June 15, 2005

The attached resolution would schedule a Special Meeting of the Town Council to be held at 7:00 p. m., before the regularly scheduled public hearing on June 20.  The purpose of the Special Meeting would be to consider awarding bids for the second and third phases of construction of the Town Operations Center.

BACKGROUND AND DISCUSSION

Bids for the remaining phases of construction of the Town Operations Center were opened on May 3 for Phase 2 and May 13 for Phase 3 of the project.  In both cases, the bids exceeded the amount of funding available.  Phase 2 is for the “off-site” work (utility and road improvements).  We decided to re-bid Phase 2 and to break the project into two bids, one for the utility work and one for the road improvements.  Those bids were opened on June 14.

Phase 3 includes the major work of the project, including the building construction and site improvements.  Our lowest bid on this phase exceeded our available funds.  For the Public Works portion of the project, we have been involved with negotiating a reduction in cost, according to provisions of State law.  For the Transportation portion, we have made minor modifications to the scope of work and have gone through a process to seek revised bids from the three bidders in accordance with direction from the Federal Transit Administration under their interpretation of applicable federal regulations.

In addition, we have identified additional funding to apply to the Transportation portion of the project.

We plan to bring to the Council the revised program and budget on June 20 so as to allow the Council to consider awarding the bids for the remaining phases of the new construction.  This date is important as it allows us to proceed with selling certificates of participation with approval from the Local Government Commission and close on the sale by the end of the fiscal year.  This closing is important to the Town’s financial situation, as it allows reimbursement to the General Fund of advances made to the project within this fiscal year.  That would allow us to maintain a fund balance according to the policies of the Council.

RECOMMENDATION

We recommend that the Council adopt the attached resolution, calling a Special Meeting for June 20 to consider awarding bids for the Town Operations Center.

A RESOLUTION CALLING A SPECIAL MEETING OF THE TOWN COUNCIL (2005-06-15/R-3)

WHEREAS, the Council of the Town of Chapel Hill desires to consider awarding bids related to the construction of the Town Operations Center in a timely fashion;

NOW THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that a Special Meeting of the Council is to be held at the beginning of the regularly scheduled public hearing on June 20, 2005.

This the 15^th day of June, 2005.