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Additional Funds for 2012 Asphalt Road Repair Program
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Executive Summary
City Council requested the City Administration follow-up with them in the summer of 2012 on the approval of additional funds for the 2012 Asphalt Road Program.
Purpose & Explanation
As you will recall, during the 2012 Budget process City Council requested that Administration follow up in the summer regarding additional funds for the 2012 Asphalt Road Repair Program. At this point, Administration is not recommending additional funding for the 2012 Program. While revenues are above projections through the first half of 2012, there are a couple of questions regarding future financing that affect any consideration of additional expenditures at this point.
A. First, when the 2012 Budget was prepared, it assumed $820,000 for demolition costs at the Youth Development Center. That assumption was based on the demolition of all structures except Washington, Cooley and Eastman School. Based on DLZ's 2011 Facility Assessment Report, total demolition is estimated at $1,227,000, or $407,000 more than the City currently has budgeted. A majority of the estimated extra cost ($272,000) would be for the demolition of Eastman School.
B. Next, recent announcements have brought further question to the possibility of Federal funding for a portion of the purchase of the Youth Development Center property. Consequently, it is prudent to consider if the City should proceed with bond financing for the purchase of the property, especially when considering the low financing rates that are available. Finance Director Jeff Knoblauch has estimated that the General Fund would have to finance approximately $2.442 million for 20 years at 2.15% interest, which would cost the City approximately $152,000 per year.
YDC Purchase Assumptions
Total Cost = $6,937,000 ($6,900,000 Purchase Price + $37,000 Grant Fees)
Total Funding = $4,495,000 ($2,000,000 Parks Fund Contribution [$125,000 Annual P+I] + $1,995,000 WRRSP Grant Proceeds + $500,000 Metro Parks Serving Summit County Contribution)
C. Finally, it should be noted that due to good pricing, the City is already able to complete four alternate street projects in 2012 at a cost of approximately $189,000. Additionally, please recall that appropriations have been increased by $76,000 over budgeted amounts for the intersection improvements at State Route 91 and Corporate Drive and by $52,000 over budgeted amounts for the intersection improvements at State Route 91 and Prospect Street. Any streets in addition to these would have to be bid, as they were not part of the original bids. City Engineer Thom Sheridan feels that prices would not be as favorable at this time of the year.
2012 Asphalt Road Program
2012 Base Contract (To Be Completed August) = $860,172
Resurfacing: Bridgeton Dr; Carriage Hill Dr; Hollis Blvd; Valerie Ln.
Reconstruction: Bergen Ct; Londonairy Blvd.; Hammontree Dr.
2012 Alternate Streets (To Be Completed August - September) = $188,671
Resurfacing: Humelsine Dr.; Gibson Ct.; Cottager Dr.; Brafferton Dr.
Timing Considerations
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
X Appropriation Not Required.
Suggested Action
Recommendation
Based on the uncertainty regarding future expenditures and the fact that more streets than expected will be completed in this year's Program, the Administration is not recommending additional funding for the 2012 Asphalt Road Repair Program.
Respectively Submitted,
Anthony J. Bales, City Manager