To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
Trish Muller, Finance Director
From: Daniel Sailer, P.E., Public Works Director
Title
Resolution Authorizing the Town Manager and Finance Director to Reallocate Approved Funds for the 2025 Pavement Maintenance Program
Body
________________________________________________________________________________
Executive Summary
This item is requesting Town Council approval of a Resolution authorizing the Town Manager and Finance Director to reallocate contract funds among independent Pavement Maintenance Program (PMP) contracts (includes preservation, rehabilitation and reconstruction) that have been approved by Town Council. This approval provides for the efficient adjustment of work scopes among contracts that result from changes that are identified during the course of the year without any increase to the approved maintenance budgets. In past years, staff has noticed that it is common to realize savings in some contract areas and increases in others as a result of changing conditions and newly identified maintenance needs.
The recommended total encumbrance of all service agreements that make up the PMP is $16,500,000. These agreements include:
• Asphalt Mill and Overlay project
• Full Depth Reclamation project
• Curb, Gutter and Sidewalk project
• Slurry Seal project
Should any individual service contract encumbrance approval be less than the recommended amount, then approval of this item will be limited to the actual total of all approved service agreement encumbrance amounts. To ensure the timely and efficient completion of projects within both the PMP, staff is requesting that the Town Council authorize the Town Manager and Finance Director to reallocate savings from certain approved contracts to other approved contracts as needed. This will help accommodate any identified scope changes, unforeseen conditions, or necessary cost adjustments.
Providing this flexibility will allow for more effective financial management, reduce delays, and ensure that both programs are completed successfully and within budget. Staff will continue to provide updates to the Council regarding budget reallocations and
project progress.
Staff recommends that the Council approve the request to grant the Town Manager and Finance Director the authority to reallocate savings within approved contracts to facilitate project completion.
Discussion
During the course of the contract period, it is anticipated some additional work will be identified in some contracts while savings are realized in others. In order to improve administrative efficiencies, the ability to reallocate funds between each contract would be beneficial. This allowance minimizes unnecessary cost increases and disruption to the travelling public by streamlining the contracting processes associated with extra work, keeping the contractors moving efficiently. This overall Council approved PMP budget would not be exceeded. Table 1 (Attachment A) shows the encumbrances from the PMP account for each of the four contracts.
Budget Impact
This Resolution does not encumber any funds. It only allows the Town Manager and Finance Director to reallocate funding between the listed service agreements as scope adjustments warrant.
Recommendation
The Public Works Commission, Public Works staff and Finance department staff recommend approval of the Resolution authorizing the Town Manager and Finance Director to reallocate funds for the PMP (includes preservation, rehabilitation and reconstruction).
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternative Motions:
“I move to approve the resolution as introduced by title with the following changes ______”
“I move to continue this item to a future Town Council meeting date”
Attachments
Resolution
Attachment A: Table 1