The current CIP includes $200,000 in City funding for this project, the funding for which was contemplated in a three-party agreement approved by the Council on June 4. The project was subsequently designed and bid by DMACC on February 5, 2019. Unfortunately the bids came in significantly higher than the engineer’s estimate. Given the unique circumstances surrounding the project and its requirements, we don’t believe that rebidding the project would yield a better bid.
The original plan was for the DOT to pay $500,000 of the project’s costs, with the City and DMACC splitting the difference. The City’s exposure was capped at $200,000 given the final engineer's estimate being ~ $900,000. The low bid was $1,196,681.
The thought at the time of the agreement was that the City funding would essentially cover the cost of the new traffic signals at the intersection. While the engineer’s estimate for the new signals was $195,000, the bid from the low-bid contractor came in at $260,000. After reviewing the agreements and bid documents with DMACC, it is recommended that the Council approve an additional $60,000 toward the project to cover the difference in cost for the permanent traffic signals.
This action item requests the Council approve an additional $60,000 in funding for STR-18-008, the SW Oralabor Road and DMACC Blvd. intersection improvements project. If approved, next year’s proposed CIP will include the additional funding, which will be added to the $200,000 and paid to DMACC in 2020.
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