To: Honorable Mayor and Members of Town Council
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 2020 Pavement Maintenance Program and Street Reconstruction Program
Body
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Executive Summary
This item is requesting the Public Works Commission formal recommendation to Town Council for the 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 year’s 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 2020 PMP is projected to be completed under the total appropriated program budget amount. The 2020 Council approved budget for all PMP contracts combined is $6,780,000 within account 120-3140-431.40-35. A total of six independent maintenance contracts have been approved for completion of different maintenance treatments. It is anticipated all six contracts will be completed under this PMP budget.
The 2020 Street Reconstruction program is projected to be completed under the total appropriated program budget amount. The 2020 Council approved budget for all Street Reconstruction contracts combined is $3,806,000 within account 120-3175-431.40-35. A total of two independent contracts have been approved for completion. It is anticipated all five contracts will be completed under this Street Reconstruction budget. [updated from $3,816,000 to 3,806,000 3/2/20]
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 allows for minimum disruption to the traveling public, and potential cost increases, by minimizing the need for contractors to remobilize resources to an area they are working in to complete additional work. This overall Council approved PMP budget, and Street Reconstruction budget would not be exceeded. Table 1 (Attachment B) shows the encumbrances from the PMP account for each of the six contracts, and the encumbrance from the Street Reconstruction account for the three approved contract and the proposed encumbrance for the two remaining contracts.
Budget Impact
This Resolution will not exceed the total appropriated budget of $6,780,000 account 120-3140-431.40-35, and the total appropriated budget for $3,806,000 account 120-3175-43.40-35. [updated from $3,816,000 to 3,806,000 3/2/20]
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 to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution
Attachment B: Table 1