Fiscal Note
The proposed resolution amends the adopted 2019 Engineering Major Streets capital budget and authorizes the execution of the amended agreement with Wisconsin DOT for the East Johnson Street project from North Baldwin Street to First Street to align with revised project cost estimates. The East Johnson Street reconstruction project is budgeted in the adopted 2019 Capital Budget in the Engineering - Major Streets East Johnson Street (Baldwin to First St. Phase 2) (MUNIS 10287) and the Water Utility- Water Mains Replace Rehab Improve-Reconstruct Streets (MUNIS 11893) for a total budgeted project cost of $7,198,000. Funding components consist of Federal Funds, GO Borrowing, Sewer Utility Revenue Bonds and Water Utility Revenue Bonds. The revised total project cost estimate is $9,208,000 for all project components. A budget amendment to transfer a total of $2,010,000 of exisiting budget authority from the Reconstruction Streets capital program is proposed via this resolution to encompass the total project cost estimate for the E. Johnson Street reconstruction in 2019; the total amount proposed for transfer consists of $1,630,000 GO Borrowing and $380,000 Sewer Utility Revenue Bond budget authoirty.
The proposed resolution amends the Engineering Major Street's adopted 2019 capital budget to transfer $380,000 of existing Sewer Utility revenue bond budget authority and $1,630,00 of existing GO Borrowing budget authority from the Reconstruction Streets capital program to the E. Johnson Street reconstruction project.
MUNIS
10287-83-173 $380,000 Sewer
10287-83-808 ($380,000) Revenue Bonds
11790-83-173 ($380,000) Sewer
11790-83-808 $380,000 Revenue Bonds
10287-402-170 $1,630,000 Street
10287-402-801 ($1,630,000) GO Bonds
11790-402-170 ($1,630,000) Street
11790-402-801 $1,630,000 GO Bonds
Title
Amending the 2019 Adopted Capital Budget of Engineering-Major Streets and Authorizing the Mayor and City Clerk to execute an amended agreement with the State of Wisconsin Department of Transportation for the improvement of E. Johnson Street (N. Baldwin Street to First Street) (2nd & 12th ADs).
Body
PREAMBLE
The City of Madison is proposing to reconstruct E. Johnson Street from Baldwin Street to First Street. The project will be constructed under a contract let by the Wisconsin Department of Transportation (WisDOT) and a project Agreement with WisDOT is required for funding, oversight and construction. The proposed project is planned for construction in the year 2019.
Bids were received on December 11, 2018 and the low bid came in over the engineering estimate. Two bids were received for the public works contract. The bids were reviewed and it was determined that rebidding this project would likely not result in lower costs and would delay completion of the project.
A budget amendment is needed in order to fund the additional costs for street and sanitary sewer. A revised agreement is required to update the project costs and funding limits (increase of local funds).
Reallocate existing Sewer Utility Revenue Bond appropriation, Sewer Utility: $380,000
Reallocate existing GO Borrowing appropriation, Engineering-Major Streets: $1,630,000
The Sewer Utility has available revenue bond funding within the Engineering-Major Streets-Reconstruction Streets capital program which was not used in 2018 that can be transferred to the E. Johnson Street project.
Engineering-Major Streets-Reconstruction Streets has available GO Borrowing funding which was not used in 2018 and its 2019 Budget that can be allocated to the E. Johnson Street project. If needed, other projects scheduled for 2019 will be delayed to 2020 in order to fund this project.
No increase in general fund supported General Obligation borrowing will be required for the project.
The agreement with the State of Wisconsin Department of Transportation for construction cost sharing defines the terms under which the City is awarded Federal funds and the agreement requires that the City indemnify the State of Wisconsin Department of Transportation. City APM 1-1 requires Common Council Approval whenever the City indemnifies another party.
The proposed indemnification language has been reviewed by the City’s Risk Manager. The City’s risk exposure is increased by this clause, but the exposure is covered by the City’s insurance policies, subject to their terms and conditions.
NOW THEREFORE BE IT RESOLVED that the Mayor and City Clerk are hereby authorized to execute an amended agreement with the State of Wisconsin Department of Transportation for the improvement of E. Johnson Street (N. Baldwin Street to First Street), and
BE IT FURTHER RESOLVED, that the Common Council approves indemnification of the State of Wisconsin Department of Transportation as set forth in the agreement in order to use federal funds for the improvement project, and
BE IT FURTHER RESOLVED that the adopted 2019 Engineering-Major Streets -Johnson St, East budget is amended to transfer $1,630,000 of GO Borrowing budget authority and $380,000 Sewer Utility Revenue Bond budget authority from the Reconstruction Streets capital program to the E. Johnson Street to First Street capital project.