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Department of Streets and Fleet
Reference: SUPPLEMENTAL BUDGET APPROPRIATION FOR TOWER ROAD AND SOUTHERN STREET ROAD CONSTRUCTION PROJECT
To: Mayor Richard N. McLean and Members of City Council
Through: Manuel Esquibel, City Manager
Prepared By: Joe Smith, Director through Kimberly Dall, Assistant Director
Date Prepared: August 12, 2015
PURPOSE
Consider a resolution to approve a supplemental budget appropriation for the Tower Road and Southern Street Road Construction Project.
BACKGROUND
The original scope of the Tower Road and Southern Street Road Construction Project (Project) initiated in 2012 was to construct a one mile long “ribbon of asphalt” for each roadway. Southern Street would be constructed as a 24’ wide strip of asphalt between Telluride Street and South 45th Avenue, the same 24’ wide section would also be used for Tower Road between Bridge Street and Bromley Lane.
The construction phase of the Project has encountered challenges related to weather and conflicts with existing utilities. These challenges necessitate change orders to the waterline contract and roadway construction contract, also to enter into a contract with Xcel for gas line relocation.
Hunt Construction, Consulting, Management Inc. (Hunt) is the selected waterline contractor for the Project; significant work has been completed in the lowering of the 24” waterline. That prior work required unanticipated modifications to adjacent waterlines to meet City requirements; that additional work cost $53,965.00. Survey information collected during construction indicates approximately 250’ of the waterline has less depth than expected; staff has designed a lowering to address that shallow portion. Multiple contractors bid the work; Hunt had the lowest bid at $114,510.00. The combined total of the change orders related to the waterline total $168,475.00. The initial contract award to Hunt is $164,430.00
Asphalt Specialties Company, Inc (ASCI) is the selected roadway contractor for the Project. ASCI has worked diligently to manage the challenges to the Project resulting from the heavy rainfall in May and June and has provided support to the waterline contractor. Staff prepared a design to fortify the Project’s drainage plan and minimize opportunities for offsite impacts from project-related stormwater runoff. The future drainage improvements result in a net increase of $62,201.80. The current contract award to ASCI is $1,733,294.65.
Xcel Energy (Xcel) owns a 6” natural gas pipeline that lies within the right of way for Tower Road from approximately Southern Street north to Bridge Street. The gas line must be relocated to construct Tower Road due to insufficient cover to work over and on top of the gas line. Although the gas line is located within right of way dedicated to the City; an easement for the pipeline was granted in 1993, prior to the right of way dedication to the City in 2000. The rights granted by the easement to Xcel still apply, including requiring payment for designing and constructing the relocated gas line. Xcel has worked with staff to identify the limits of relocation and has estimated the design and construction work at $410,000. Xcel requires the City to enter into a contract and provide the full payment prior to Xcel commencing the relocation design.
The estimated increases to the Project budget combine to total $640,676.80.
FINANCIAL IMPACT
The total supplemental budget increase estimated is $640,676.80. Due to some of the costs being estimates, we request that the budget increase by $650,000.00. The amount is to be split equally between the Traffic Impact Fees fund and Adams County Road & Bridge fund.
OPTIONS FOR COUNCIL CONSIDERATION
1. Approve the resolution as presented.
2. Postpone and request further information.
3. Approve a modified resolution.