To: Members of the Public Works Commission
From: Daniel Sailer P.E., Public Works Director
Trish Muller, Finance Director
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 the Public Works Commission’s formal recommendation to Town Council for the approval of a Resolution 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 2023 PMP is projected to be completed under the total appropriated program budget amount. The 2023 Council approved budget for all PMP contracts combined is $18,500,000 within account 120-3140-431-40-35, with $10,900,000 going toward PMP maintenance projects. A total of four independent maintenance contracts have been approved for completion of different maintenance treatments. It is anticipated all four contracts will be completed under this PMP budget.
The 2023 Street Reconstruction program is projected to be completed under the total appropriated program budget amount. The Streets Reconstruction program will use $7,600,000 from the 2023 Council approved budget within account 120-3175-431-40-35. A total of two independent contracts has been approved for completion. It is anticipated that both contracts 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 contract 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 $18,500,000 account 120-3140-431-40-35.
Staff Recommendation
Public Works and Finance department staff recommends 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 that the Public Works Commission recommend that Town Council approve the Resolution as introduced by title.”
Attachments
Attachment A: Table 1