HomeMy WebLinkAbout07/11/2000, 5 - A REQUEST TO INCREASE THE CONSTRUCTION BUDGET FOR THE RAILROAD TRANSPORTATION CENTER (RTC) BY $70,000 council
July IL 2000
acjcnaa Rep= °®5..,b�
CITYOF SAN LUIS O B I S P O
FROM: Michael D. McCluskey, Director of Public Works
Prepared By: Terry Sanville, Principal Transportation Planner
SUBJECT: A REQUEST TO INCREASE THE CONSTRUCTION BUDGET FOR
THE RAILROAD TRANSPORTATION CENTER(RTC) BY$70,000
CAO RECOMMENDATIONS:
Approve request and appropriate $70,000 from the Unappropriated General Fund Balance.
DISCUSSION
At its May 16, 2000 meeting, the City Council authorized the CAO to award a contract to
construct the Railroad Transportation Center (RTC) if the accepted bid plus contingencies were
within the total project construction budget of$1,395,000. This initial project budget included
$150,000 for contingencies, about I I% of the project budget. This amount for contingencies was
felt appropriate because of the complex nature of the project.
Bids for this project were opened on June 22, 2000. The low bid was $1,319,204. Subtracting
this low bid from the project budget ($1,395,000 - $1,319,204) would leave $75,796 for
contingencies (about a 5.7% contingency). Per Council authorization, the CAO has awarded the
contract and we are confident that, with this action, a fully executed contract can be achieved by
the August 1St deadline in order to preserve significant grant funding. However, staff
recommends that the Council increase the project budget to provide the original level of
contingency funding (1I%). To do this requires a supplement to the project budget of $70,000
with a resultant budget of$1,457,796.
FISCAL IMPACT
The General Fund unappropriated balance would be depleted by $70,000. Other potential
funding sources were evaluated by the City Council at two previous meetings; the same options
considered at those meetings also apply to this budget request.
ALTERNATIVES
The City Council could take no action at this time and direct the staff to return with a supplemental
funding request if, as construction proceeds, the project's construction cost exceeds the budget.
During the staff presentation of the original agenda item, we stated that we thought the stated
contingency level would be appropriate but we would return if we thought more funding would be
needed. Should the Council choose this alternative, staff would be returning to Council for an
additional appropriation sooner than otherwise,but, on the other hand,may not need to return at all.
I:\Everyone\CouncilAgendaReports\RTCBudgetAmendment
5-1