Title
Resolution to Amend the Existing 2019 Sidewalk Gap Elimination Project Budget and Appropriate $235,000.00 (8 Votes Required)
Memorandum
Attached for your review and approval, please find a resolution to approve the appropriation of $235,000.00 from the Street, Bridge, and Sidewalk Millage fund balance to amend the existing 2019 Sidewalk Gap Elimination Project.
This project consists of filling two significant sidewalk gaps in the City’s sidewalk network. One is located along Washtenaw Avenue from Huron Parkway to Pittsfield Boulevard; and the other located along the south side of Jackson Avenue from just west of Westover Avenue to Park Lake Avenue. In order to obtain more beneficial pricing and reduce administrative costs, the two projects were bid together as one construction project. Construction work was completed on the Washtenaw Avenue portion of the project in the summer of 2020.
Since the Jackson Avenue portion of this work was considered a first-time improvement, City Code required that the project be specially assessed. Staff prepared the necessary series of Resolutions for Council approval, and at the June 15, 2020 meeting of City Council, the final resolution to approve the special assessment district was tabled by City Council.
On November 3, 2020 voters approved the New Sidewalk Millage, which will provide a dedicated funding source for filling gaps in the City’s sidewalk network. Following the approval of this millage, staff is working on revisions to City Code that would eliminate the need to specially assess property owners for new sidewalk construction.
The construction contract for the 2019 Sidewalk Gap Elimination Project still includes the quantities for the Jackson Avenue sidewalk work, and the Contractor has agreed to hold their prices in that contract for the 2021 construction season. Staff considers the pricing in this contract to be very favorable to the City, and thus recommends moving forward with the sidewalk construction on Jackson Avenue as soon as feasible in the spring of 2021.
However, since revenue from the new Sidewalk Millage will not be available until July 1, 2021, the cost of this work needs to be interim financed from the Street, Bridge, and Sidewalk Millage Fund so that construction can proceed as soon as possible. Collections from the new Sidewalk Construction Millage will become available on July 1, 2021 and will be appropriated to reimburse the costs incurred for the construction of the Jackson Avenue sidewalk.
Budget/Fiscal Impact: The total project budget is $948,500.00 for the 2019 Sidewalk Gap Elimination Project. However, the total estimated cost of the Jackson Avenue portion of the work is $235,000.00. Consequently, it is necessary to interim finance $235,000.00 from the Street, Bridge and Sidewalk Millage. Since the Street, Bridge, and Sidewalk Millage will be reimbursed at the start of FY 22, there will be no long-term unanticipated budget impacts. Reimbursement to the Street, Bridge, and Sidewalk Millage will come from the New Sidewalk Construction Millage ($121,000.00) and the Parks Maintenance and Capital Improvements Millage ($114,000.00). The Parks Millage contribution is due to the presence of park land adjacent to the project limits.
Staff
Prepared by: Nicholas Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Tom Crawford, City Administrator
Body
Whereas, The Washtenaw Avenue and Jackson Avenue sidewalk gaps were identified by Public Services staff as high priority sidewalk gaps to be filled;
Whereas, The Washtenaw Avenue portion of the project was completed in the summer of 2020,
Whereas, The Resolution to approve the special assessment district for the Jackson Avenue portion of the project was tabled by City Council on June 15, 2020 and thus the construction of that portion of the project did not advance;
Whereas, The New Sidewalk Construction Millage will be able to provide funding for such projects without the need to specially assess, however funding will not be available until July 1, 2021;
Whereas, A construction contract with Doan Construction Company of Ypsilanti, Michigan is already in place to perform the sidewalk construction work along Jackson Avenue and the pricing in this contract is favorable to the City;
Whereas, There is a desire to advance this project as soon as possible under the existing contract in the spring of 2021; and
Whereas, In order to meet this schedule, funding from the Street, Bridge, and Sidewalk Millage is needed to cover the cost of construction until revenue from the New Sidewalk Construction Millage is available, at which time the Street, Bridge, and Sidewalk Millage will be reimbursed;
RESOLVED, That $235,000.00 be appropriated from the Street, Bridge, and Sidewalk Millage fund balance, to the existing Sidewalk Gap Elimination project, increasing the expenditure and revenue budgets accordingly, to be reimbursed by the newly approved Sidewalk Construction Millage proceeds upon collection beginning in FY 2022; and
RESOLVED, That Council authorize the City Administrator to take the necessary administrative actions to implement this resolution.