ORD-2013-039 Ordinance approving Budget Amendment #2-D and Bid Award for McGowan Creek Sewer Interceptor Project

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3 paid over a 20 year term from the General Fund. Existing funds for general contingency, property easement procurement and loan origination are $63,437. Due to the competitive bids received, staff estimates an additional $107,814 will need to be appropriated to cover the cost of the project. The amount of the loan can be increased up to 10% of the original value of the loan based on the competitive bids without going back to the Local Government Commission. The proposed budget amendment would take a portion of the increased costs from a loan increase and a portion from the Article 46 Sales Tax proceeds. The loan cannot be used to pay for the origination fee on the loan (2% of the loan amount) or the cost of the easements. Therefore, the budget amendment would assign a portion of the cost of the project from the use of Article 46 Sales Tax proceeds to cover these costs and other incidental costs that may be incurred as shown below. This will provide adequate funding for all known costs as well as a 10% construction contingency fund. Budget Amendment#2-D below illustrates this in detail: Revenues for this project FY 2013-14 Nov 5, 2013 FY 2013-14 Amendments Amendment Revised SRF Loan $755,450 $50,000 $805,450 Article 46 Sales Tax $0 $57,814 $57,814 Proceeds Total Project Revenues $755,450 $107,814 $863,264 A ppropriated for this i3roiect., FY 2013-14 Nov 5, 2013 FY 2013-14 Amendments Amendment Revised Professional Services $92,400 $0 $92,400 Construction $490,000 $107,814 $597,814 Contingency, Easements, $173,050 $0 $173,050 Legal, Origination, Other Total Project Appropriation $755,450 $107,814 $863,264 RECOMMENDATION(S): The Interim Manager recommends that the Board: 1.) Award the bid and approve a construction contract to Park Construction of North Carolina, of Morrisville, NC, in the amount of $597,813.13 for the construction of the McGowan Creek Sewer Interceptor project, pending State approval; 2.) Approve Budget Amendment#2-D for$107,814 consisting of: a. Authorizing staff to request an additional $50,000 in SRF loan funding from the State; b. Approving funding of$57,814 from Article 46 Sales Tax proceeds; 3.) Approve and authorize the Chair to sign the Resolution of Tentative Award required by the State as part of the SRF loan milestones; 4.) Approve and authorize the Chair to sign the contract on behalf of the Board of County Commissioners, subject to final review by the County Attorney and the State; and 5.) Authorize the Manager to execute individual change orders within the limit of his authority ($250,000) up to the extent of the project budget.