STAFF REPORT

Operations Committee, April 30, 2008

Additional Funding Request for Hawes Tract Collector Road and Water Line (EN08-093)
Consideration of a request for additional funding to construct the Hawes tract collector road and water line jointly with the Wake County Public School System in accordance with the agreement.
Speaker:  Mr. Tim Bailey

From:  Tim Bailey, P.E., Director of Engineering
Prepared by:  Tim Bailey
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

As a part of the agreement to provide land to Wake County Public School System the road and water line were joint projects.  Since the road and water line will serve both school properties and Town of Cary properties, the cost was split equally for these improvements.  This was budgeted as the Hawes Tract Collector Road and the current name is Mills Park Drive.  The elementary school and Mills Park Drive have begun construction and are nearing completion.  A middle school has been submitted for site plan approval on this site as well.

Based on estimated cost to complete the project, an additional $1,210,588 is needed for the Town’s share of the road and water line work.  Cost increase is based on two primary factors; bids higher than estimates and change orders.  Construction costs were increasing rapidly during the time this work was estimated and bid.  Approximately $300,000 of the increase was associated with the difference between bid prices and original estimates.  The remaining increase was change orders for changes in conditions since the bids.  The two largest change orders were associated with bidding the project prior to having complete plans and extra work required to cross a stream on the Hawes tract.  

Fiscal Impact:  An additional $1,210,588 is needed from general capital reserve unrestricted fund balance in support of the ST1160 Hawes Collector Road project.  Appropriations to date for this project total $562,500.  Encumbrances/Expenditures to date total $539,149 leaving an available balance of $23,352.  The appropriation of an additional $1,210,588 will bring total appropriations to date to $1,773,088.  The $1,210,588 should be budgeted for expenditure within the construction account of Project ST1160.  

Staff Recommendation:  Staff recommends an additional appropriation of $1,210,588 from general capital reserve unrestricted fund balance to the Hawes Collector Road Project.