To: Honorable Mayor and Members of Town Council
From: Robert Goebel, P.E., Public Works Director
Trish Muller, Finance Director
Title
Resolution Authorizing the Town Manager and Finance Director to Reallocate Approved Funds for the North Meadows Drive Extension (NME) Project
Body
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Executive Summary
This item is requesting Town Council’s Approval of a Resolution (Attachment A) authorizing the Town Manager and Finance Director to reallocate contract funds that have already been approved by Town Council for the North Meadows Extension project with Kraemer North America (KNA), for the purpose of expediting construction and payment.
The North Meadows Extension project is anticipated to be completed under the total appropriated project budget amount. Total expenditures for the Town’s general contractor, KNA are also expected to be under the Fixed Limit of Construction Contract (FLCC) approved by Council, as outlined in Resolution No. 2013-65. This FLCC established a total project limit with KNA in the amount of $64,157,000, but did not encumber any funds for specific portions of the project. Staff presented amendments to this contract to Council which established specific encumbrances of funds for portions of the project which were determined at later dates. The total of the expenditures of these portions of the project will be under the Council authorized contract amounts to compete the project.
In order to expedite completion of the project, staff is requesting that Council authorize the Town Manager and Finance Director to reallocate savings as necessary in certain approved contract amendments with KNA to other approved amendments, all within the total FLCC limit established in Resolution 2013-65. These reallocations of funds will not increase the FLCC limit, nor the total appropriated budget for the project.
Public Works and Finance Department staff recommends approval of the Resolution authorizing the Town Manager and Finance Director to reallocate funds with Kraemer North America for the North Meadows Drive Extension Project to expedite the completion of the project.
History of Past Town Council, Boards & Commissions, or Other Discussions
Town Council approved five amendments with KNA for the NME and two Intergovernmental Agreements between the Board of County Commissioners and the Town of Castle Rock. Table 1 (Attachment B) shows the existing construction encumbrances to date with the Council approval dates. All of these items are under the umbrella of the FLCC approved by Council on November 19, 2013.
The “Master Contract” established the overall Fixed Limit of Construction Cost (FLCC). The FLCC approved at the November 19, 2013 Town Council meeting is set at $64,157,000. This FLCC is the maximum amount established by the Town for construction, excluding the original earthwork contract approved by Council in October 2013.
Discussion
In order to complete the North Meadows Extension project in a timely manner, this Resolution will give staff the ability to manage contract obligations with the Town‘s contractor KNA in an expedited manner.
Budget Impact
This Resolution will not change the approved budget for the project.
Staff Recommendation
Public Works and Finance Department staff recommends approval of the Resolution authorizing the Town Manager and Finance Director to reallocate funds with Kraemer North America for the North Meadows Drive Extension Project.
Proposed Motion
“I move to approve a Resolution authorizing the Town Manager and Finance Director to Reallocate Funds with Kraemer North America for the North Meadows Drive Extension Project.”
Attachments
Attachment A: Resolution
Attachment B: Table 1