AGENDA #4h
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Budget Amendment and Resolution for a FY 2002-03 Transportation Capital Grant
DATE: October 7, 2002
The attached resolution would authorize the Town Manager to execute a change order to the construction contract for the Jones Ferry Park/Ride Lot which exceeds $50,000.
The attached budget ordinance would amend the original project ordinance established for the park/ride lot to add additional federal funding awarded previously, and to allow for the change order and additional funding needed to complete the project.
The Jones Ferry Road park-ride lot is being constructed on 7.73 acres of land leased from the University of North Carolina and located at the intersection of University Lake Road and Old Fayetteville Road just west of the Carrboro town limits. The lot will provide 443 spaces for park-ride lot patrons. Construction began in May and is expected to be substantially complete by mid-October.
The original project ordinance for this project was established on June 11, 2001 in the amount of $710,000. The grant included $568,000 (80%) in federal funds, $71,000 (10%) in State matching funds, and $71,000 (10%) in local matching funds. Proposals for construction of the lot were received in March 2002 and bids were considerably over the projected project.
The Council was able to award the construction bid on April 22, 2002 by approving the use of additional federal grants for the project totaling $423,750, bringing the total allocation for the project to $1,133,750.
However, because the budget amendment for the project presented to the Council on April 22 to add this additional funding was approved in a format that was technically incorrect, the attached amendment to the project ordinance is proposed to correct the previous amendment. The additional grant includes $339,000 in federal funds (80%) and $42,375 in estimated State funding (10%). The 10% local matching share ($42,375) for this portion of the grant is available in the Transportation Capital Reserve.
We discuss below the recommendation for an authorization for a change order and budget amendment necessary to provide additional funding to complete the project.
Authorization for Change Order
Since the start of construction in May 2002 the contractor has submitted several change order requests. We have agreed on the need for a change order in the amount of $161,248, but have not executed it, because we are still negotiating the amount of extra time that should be allowed. Of this sum, $154,500 relates to undercut (the removal of unsuitable soil.) The undercut unit cost was included in the bid documents, but it is not possible to know the full extent of unsuitable soil before grading is completed. We have agreed with the contractor on the unsuitability and the volume of soil removed. We hope to come to agreement shortly on the number of extra days that should be allowed for that undercut operation.
In addition, there are two items for which we have not yet agreed on a price: additional rip rap and the possibility of the removal of more soil from the site than was included in the contract. We expect these costs would be respectively approximately $1200 and up to $11,000. This potential total of about $174,000 is greater than the contingency account of $54,000 by about $120,000.
A 1982 Town Council policy authorizes the Manager to prepare, approve, and enter into construction contracts that have change orders and amendments to construction contracts that do not cumulatively exceed the bid originally approved by the Council by more than 10% of the original contract amount, or $50,000, whichever is less, and provided that there is an appropriation sufficient for the contract amendment. Based on change orders to date as noted above, the Council wound need to approve change orders when they exceed $50,000.
This project is not yet completed and it is possible that another change order may be necessary. Therefore, we believe that it would be prudent for the Council to authorize change orders up to the cumulative amount of $185,000. The recommended budget amendment includes the funds for this amount net of the $54,000 available in contingency.
Budget Amendment
The attached amendment to the project ordinance would add the additional grant funding of $423,750 as noted above, and increase the total project budget by $130,000 to allow the change orders to date and potential final expenses as discussed above to be approved by the Council. The additional $130,000 is available currently in the Transportation Capital Reserve Fund. Use of this additional amount now may require some adjustment in planned contributions to the Transportation Capital Reserve Fund in subsequent years in order to fund capital improvements and bus replacements as scheduled.
That the Council adopt the attached budget amendment to the project ordinance for the Jones Ferry Road park/ride lot project, and adopt the attached resolution authorizing the Manager to execute the necessary change orders to complete the project.
AN ORDINANCE AMENDING A PROJECT BUDGET FOR A TRANSPORTATION CAPITAL GRANT (2002-10-07/O-2.1)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant project is hereby amended as follows.
SECTION I
The Federal Transit Administration Urbanized Area Formula (Section 5307) funds are from 2002 federal funds from an agreement with the Federal Transit Administration.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of the project within the terms of the grant agreements executed with the Federal Transit Administration and the funds appropriated herein.
SECTION III
Revenue anticipated to be available to the Town to complete activities as outlined in the project budget is amended as follows:
Current Revised
Budget Budget
Federal Transit Administration Grants $ 568,000 $907,000
N.C. Department of Transportation 71,000 113,375
Town of Chapel Hill (local match) 71,000 243,375
Total $ 710,000 $1,263,750
SECTION IV
Amounts are appropriated for the project are amended as follows:
Capital Construction Costs $ 710,000 $ 1,263,750
SECTION V
The Manager is directed to report annually on the financial status of the project in an information section to be included in the Annual Budget, and shall keep the Council informed of any unusual circumstances.
Copies of this project ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Town Clerk.
This the 7th day of October, 2002.
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE CHANGE ORDERS TO THE CONTRACT WITH JONES BROS., INC. IN A CUMULATIVE AMOUNT UP TO $185,000 (2002-10-7/R-6.1)
WHEREAS, the Town of Chapel Hill has entered into a contract with Jones Brothers, Inc., as the general contractors of Jones Ferry Road Park-Ride Lot for $994,266; and
WHEREAS, during the construction of the park-ride lot, change order requests totaling $161,248 have been submitted by Jones Bros., Inc.; and
WHEREAS, it is possible that some additional change order requests may be received before the project is closed out; and
WHEREAS, anticipated changes orders will cause the contract to exceed the original contract price by more than $50,000;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is authorized to approve change orders in a cumulative amount of up to $185,000.
This the 7th day of October, 2002.