Title
88th Avenue Roadway Improvements - IDOT Contract 63488
History
At the September and October 2011 Committee and Board meetings, based upon the costs outlined within the IDOT Local Agreement for this project, Staff requested consideration and the passage of the below:
“I move to recommend to the Village Board to authorize a budget adjustment in the amount of $150,000 to fund the Local Share costs related to the 88th Avenue construction project; and
I move to recommend to the Village Board to authorize payment to Christopher B. Burke Engineering (CBBEL) of Rosemont, Illinois, an amount not to exceed $49,000 as the reimbursable Federal share of Construction Engineering: and
I move to recommend to the Village Board to authorize payment to the State of Illinois an amount not to exceed $91,200 for the Local Share of construction and Construction Engineering costs related to the 88th Avenue construction project, with one-third of the Local Share costs reimbursable pursuant to an Intergovernmental Agreement with the Village of Orland Hills dated July 12, 2010.”
In developing the above action, it was understood that the Village would have to front-fund the Federally reimbursable share of the Construction Engineering fees ($49,000), but it was not understood in October that 100% of Construction Engineering fees would have to be paid by the Village directly to the Consultant hired by IDOT for this project. Typically IDOT bills the Local Agency (LA) for the LA’s share of construction ($70,200) and Construction Engineering ($21,000) at the end of the project. Because this project had Federal funds (three different funding sources), the Construction Engineering Consultant was required to be selected by IDOT, but the Consultant’s fees were required to be paid directly to the Consultant by the LA. Christopher B. Burke Engineering (CBBEL) of Rosemont, Illinois, was selected and contracted by IDOT to perform construction engineering for the project. The Village, as previously described, is required to fully pay CBBEL’s invoices upon receipt using Village funds. After the project closes out and all fees and costs have been paid, the Federal share of the Consultant’s fees ($49,000) will be paid to the Village by IDOT (Federal reimbursement). Construction costs for this project are shared between IDOT and the LA following the typical IDOT/LA construction funding process where IDOT front-funds the total cost of construction and submits a Pay Request to the LA during project close-out for the LA’s share (estimated at $70,200).
In order to properly allocate Village funds and pay CBBEL in full for their Construction Engineering (Federal and Local Agency shares), the $150,000 funding approved in October must be allocated differently as shown in the attached table, reducing approved funds payable to IDOT by $21,000, and increasing funding for CBBEL by the same amount.
The construction portion of the project has been completed, and the Final Balancing Pay Request was presented by CBBEL to Staff for approval prior to submittal to IDOT in January. The project closed out at $877,744.99, $37,565.74 less than the Awarded value of $915,310.73. When invoiced by IDOT, the Village’s share of construction, initially estimated by IDOT at $70,200 based upon a project construction cost of $1,130,000 will reflect a proportionate reduction.
Additionally, CBBEL has advised the Village that they exceeded their IDOT approved $69,642.45 upper limit fee for Construction Engineering. Currently, CBBEL is estimating their fees to be $71,799.03, or $2,156.58 more than the IDOT approved upper limit, attributed mostly to additional testing to reduce the number of costly full-depth patches prior to final paving. As we have been advised by CBBEL of the added costs, staff is recommending that the current funding authorization of $49,000 be increased by the $21,000 previously discussed (IDOT reduction value), plus an additional $5,000 of the $9,800 remaining contingency to fully pay the $71,799.03 estimated cost of Construction Engineering. Staff is recommending funding for CBBEL be a set at a not-to-exceed value of $75,000. Upon receipt of the final CBBEL invoice, the Village is permitted to petition the Southwest Council of Mayors (SCM) for additional funding ($1,509.60) up to the maximum seventy percent (70%) permissible.
All authorized funds in excess of actual costs incurred will be released following project close out. Upon completion of the project, Finance will submit a Reimbursement Request to IDOT for the $49,000 Federal share of Construction Engineering fees, and will also prepare and submit a similar request to Orland Hills for one-third of the final net fees and costs paid by the Village.
Financial Impact
The project fees, costs and cost sharing obligations are outlined in the attachment. Local Share of construction costs ($70,200) and construction engineering ($21,000) is estimated at $91,200, with the requirement for fully front-funding the Federal and Local Agency share of construction engineering ($49,000 + $21,000 = $70,000), yielding a total estimated cost payable by the Village, subject to reimbursement, of $140,200. Up to $49,000 is post-project Federally reimbursable, and one-third of the final net costs paid by the Village are also post-project reimbursable by the Village of Orland Hills (approximately $30,552). Final net project cost to Orland Park is anticipated to be approximately $60,648 of a total cost of approximately $949,544.02 (6.4%). There is no budget impact or budget adjustment required as no additional funds are being requested.
Recommended Action/Motion
I move to approve reducing funds authorized October, 3, 2011, for payment to the State of Illinois from $91,200 by $21,000 to an amount not to exceed $70,200 for the Local Share of construction costs related to the 88th Avenue roadway improvement project;
And
I move to approve increasing the funding authorized October 3, 2011, and payable to Christopher B. Burke Engineering (CBBEL) of Rosemont, Illinois, by $26,000 providing a new not-to-exceed value of $75,000 for construction engineering, with one-third of the final net Local Share project costs being reimbursable by the Village of Orland Hills pursuant to an Intergovernmental Agreement with the Village of Orland Hills dated July 12, 2010.