[Council Communication]  [Attachments]

Council Communication

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Title:	Approval of Amendment No. 1 to Fund Exchange Agreement No. 20521, Water Street Bridge Project, between the City of Ashland and the Oregon Department of Transportation
Dept:	Public Works Department
Date:	August 3, 2004
Submitted By:	Paula Brown
Reviewed By:	Mike Franell
Approved By:	Gino Grimaldi, City Administrator

Synopsis:	The Water Street Bridge project has had a few set backs over the past four years during the design, planning and bid stages, but is now ready for realization. Staff re-bid the project in June 2004 and received an acceptable construction bid from Ross Brothers & Company, Inc. (Salem). As staff and the prospective contractor discussed construction start dates, it became very apparent that the project was not bid early enough to ensure significant project completion within the restricted in-water work times of June 15 to September 15. As such, construction contracts were recently signed for a delayed construction start date of May 15, 2005. This project receives State transportation funds and requires approval of the attached amendment to extend the funding period to coincide with the construction delays. The attached Amendment No. 1, Fund Exchange Agreement No. 20521 Water Street Bridge authorizes a time extension so that the project can begin in May 2005 and be completed by April 2006. At this point, staff anticipates completion within 8 months of starting which would be January 2006. The extra three months provides a cushion for unforeseen conditions.
Recommendation:	It is recommended that Council approve the attached Amendment No. 1, Fund Exchange Agreement No. 20521, Water Street Bridge, granting a time extension to April 2006.
Fiscal Impact:	The City has been anticipating the reconstruction of Water Street Bridge for the past 4 years. In November 2000, Council approved staff's recommendation to execute the fund exchange agreement (Agreement No. 18615) with ODOT for Federal Fiscal Years (FFY) 1999 and 2000. And again in November 2002, Council authorized the amended agreement to fully fund this project and obligate FFY 2001 and FFY 2002 funds. The total amount of federal funds is $495,923, which have been exchanged at 93% (2nd agreement) and 94% (1st agreement) for a total of $463,994 in state funds to replace the Water Street Bridge. Through participation in the State Surface Transportation Program, Ashland has received approximately $94,000 to $110,000 per year. Although the City "lost" an average of 6.5% percent for the exchange to "State" funds, the gain from a contract flexibility and construction management perspective is well worth the minor reduction in funds. The City has participated in the State's federal fund exchange program through the Oregon Department of Transportation for many years. These dollars are a part of the Federal Surface Transportation Plan (STP) program that can be used to fund state approved projects. The Water Street Bridge Project has been programmed to receive these funds and is consistent with the Capital Improvement Program outlined in the budget document. The engineers and staff had significantly under estimated the construction of the Water Street Bridge. The engineer's estimate was approximately $400,000. Even after bidding the project three times, the engineers estimate was $175,000 under the project bid. The increase in cost is primarily due to steel prices, additional water and sewer work, an extremely constricted construction work area, timing for the in-water work requirements and the additional creek stabilization. Design began in 2001 with Otak Engineers at a cost of $98,000. Marquess Engineering completed the design and will provide follow-on construction engineering support as necessary. The additional construction costs are supported by storm water SDC, water distribution (pipe replacement) and the sewer collection funds (for the replacement of a force main). All costs are in the budget and the additional costs will be supported in the Fy06 budget.
Background:	The ODOT Fund Exchange Program is an extension of the Federal Surface Transportation Program (STP). Cities with population in excess of 5000 people receive an annual allocation of funds based upon actual population. The State provides these funds at a reduced rate (typically 94% of the federal allocation) for City projects. By using the funds through the State's exchange program, the funds can be used for a wider variety of projects. The State's requirements and controls are not as stringent as Federal controls. Council may recall the discussion of the expanded Metropolitan Planning Organization. These STP funds are the funds that will be combined with the MPO funds and will be competitive in future years. Staff proposed that fund exchange program be used for replacement of the Water Street Bridge which was identified as a priority from the Otak report on flood related damage, and submitted that request to ODOT. ODOT approved the project prospectus and found the project eligible for the fund exchange program. Approximately 45% of the project is eligible for storm water systems development charges to meet the 100 year flood requirements.
Attachments:	•  Fund Exchange Agreement

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