HomeMy WebLinkAboutItem 06.gDecember 18, 2017 Item No.
RESOLUTION AUTHORIZING FUNDING FOR CITY IMPROVEMENT
PROJECT 16-02 (2016 STREET RECONSTRUCTION)
Proposed Action
Staff recommends adoption of the following motion as part of the Consent Agenda: Move to
approve a resolution authorizing funding for the 2016 street reconstruction project.
Overview
City staff presented information at the council meeting held on August 7, 2017 regarding final
acceptance and approval of the final pay estimate to McNamara on City Improvement Project 16-
02. As noted in that information, the final McNamara contract amount was $10,176,819.38
compared to an original McNamara contract amount of $9,442,610.25, which was beyond the
budgeted contingency on the project. The overage was due primarily to additional material and
labor costs incurred due to unknown surface conditions encountered during the project. Bonds
were issued in 2016 to cover the costs of this project; however, the bond amounts were based on
the contract and, therefore, were insufficient to cover the excess costs.
The 2016 bonds were issued for multiple projects including the 2016 reconstruction project and
the 2015 reconstruction project (phase II). Unspent bond proceeds of approximately $250,000
from the 2015 project can be used to fund the 2016 project overages. The 2015 phase II project
hasn’t been finalized yet due to some open items, so the $250,000 is an estimate at this point.
Savings from other areas of the 2016 project (i.e. engineering, legal, etc.) will offset some of the
overages. Staff recommends that the Pavement Management Fund provide the remaining funding.
As staff is in the process of completing the necessary transfers between funds in 2017, staff is
requesting Council authorization for funding of the excess costs.
Primary Issues to Consider
• Funding Sources
Supporting Information
• Resolution
Financial Impact: $ Budgeted: Y☐ N☒ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Jerilyn Erickson, Finance Director
11.9M. Various Funds
CIP
CITY OF LAKEVILLE
RESOLUTION NO:
RESOLUTION AUTHORIZING FUNDING FOR CITY IMPROVEMENT
PROJECT 16-02 (2016 STREET RECONSTRUCTION)
WHEREAS, the City of Lakeville has completed the final acceptance of City Improvement
project 16-02; and
WHEREAS, the actual costs for the surface improvements and storm sewer portions of the
project were higher than anticipated.
NOW, THEREFORE, BE IT RESOLVED the final estimated costs of the 16-02 project
are $11,980,468. Anticipated funding sources are listed below. Staff is hereby authorized to
amend the 2017 budgets and make the appropriate transfers between funds with respect to the
funding sources up to 10% above the estimated costs.
Anticipated Funding Source Amount
2016B bond proceeds- designated for 16-02 project 8,539,370$
2016B bond proceeds- designated for 15-02 phase 2 project 250,000
Tax levy 50,000
Water Operating Fund 2,655,543
Sewer Operating Fund 210,240
Storm Sewer Trunk Fund 77,762
Water Trunk Fund 9,932
Pavement Management Fund 187,621
11,980,468$
ADOPTED by the Lakeville City Council this 18th day of December 2017
______________________________
Douglas P. Anderson, Mayor
_________________________________
Charlene Friedges, City Clerk