To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
Daniel Sailer P.E., Public Works Director
Trish Muller, Finance Director
From: Frank Castillo, Project Manager
Title
Resolution Authorizing the Town Manager and Finance Director to Reallocate Approved Funds for the Pavement Maintenance Program and the Street Reconstruction Program
Body
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Executive Summary
This item is requesting Town Council approval of a Resolution (Attachment A) authorizing the Town Manager and Finance Director to reallocate contract funds among independent Pavement Maintenance Program (PMP) contracts and Street Reconstruction contracts 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 PMP and Street Reconstruction 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 2024 PMP is projected to be completed under the total appropriated program budget amount. The 2024 Council approved budget for all PMP contracts combined is $15,100,000 within account 120-3140-431-40-35, with $7,100,000 going toward PMP maintenance projects and $8,000,000 going towards the PMP reconstruction project. A total of four independent maintenance contracts have requested approval for the completion of the different maintenance treatments. It is anticipated all four contracts will be completed under this PMP budget.
The 2024 Street Reconstruction program is projected to be completed under the total appropriated program budget amount. The Streets Reconstruction program will use $8,000,000 from the 2024 Council approved budget within account 120-3175-431-40-35. A total of one independent contract has been approved for completion. It is anticipated that the contract will be completed under this Street Reconstruction budget.
In order to expedite completion of projects within the PMP and the Street Reconstruction Program, staff is requesting that Council authorize the Town Manager and Finance Director to reallocate savings as necessary in certain approved contracts to other approved contracts as necessary to accommodate any identified changes to work scopes. These reallocations of funds will not increase the total appropriated budget for the programs.
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 and Street Reconstruction budget would not be exceeded. Table 1 (Attachment A) shows the encumbrances from the PMP account for each of the four maintenance contracts, and the encumbrance from the Street Reconstruction account for the two approved contracts and the proposed encumbrance.
Budget Impact
This Resolution will not exceed the total appropriated budget of $15,100,000 account 120-3140-431-40-35.
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 or the Street Reconstruction Program.
Proposed Motion
“I move to approve the Resolution Authorizing the Town Manager and Finance Director to Reallocate Approved Funds for the Pavement Maintenance Program and the Street Reconstruction Program as introduced by title.”
Alternate Motion
“I move to approve a Resolution Authorizing the Town Manager and Finance Director to Reallocate Approved Funds for the Pavement Maintenance Program and the Street Reconstruction Program, with the following changes….”
Attachments
Resolution
Attachment A: Table 1