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Town Council to address Funding Shortfall for Community Trail

February 2, 2020 by Wayne Creed Leave a Comment

The Mirror incorrectly reported that contracts for Phase 3 of the Community Trail at the had be approved at the January 16, 2020 meeting. Just before the January meeting, VDOT informed the town that they had determined that Excel’s bid was a no-go since they had not submitted required Disadvantaged Business Enterprise.


VDOT notified the town that they will not approve contract award to Excel.

Council was briefed on the contracting status for construction of Phase 3 of the Two bids were received and opened on November 26, 2019. Excel Paving was the low bidder at $722,225.90 for the base work (excluding the park entrance). Conrad Brothers bid was $120,343 higher. The low bid for the base work was more than 24% higher than the Engineer’s estimate of
$546,355.

Phase III, South Peach Street

With a funding shortfall, staff and VDOT had been focusing on a path to award the base work only.

According to staff, the worst case is estimated at about $1 million, with a Town funding shortfall of about $80K after additional Transportation Alternatives Program (TAP) grant funds are transferred to the project.

The probable estimate is about $930K, with a Town funding shortfall of about $60K. The reduced scope estimate is about $760K, with a Town funding shortfall of about $50K. Scope reductions would need to be implemented via change order after contract award.


To address the funding shortfall, staff provided the following:

  1. Remainder of library building third floor rehabilitation; $80K. Would forgo use for other capital project needs being considered during the mid-year budget review.
  2. Defer 13 light poles from approved harbor projects to July; $45K. Total of $253K budgeted with recent transfer. Would need to be re-budgeted in FY 2021.
  3. Trail Phase 2 close out. $200K budgeted ($160K TAP, $40K Town). Risk if we settle contractual dispute and need to pay before June 30. An aggressive approach would be to transfer additional funding to the project and proceed with contract award after obtaining VDOT approval. However, the recent schedule delays would likely result in work commencing in March and extending into July. This is not ideal during the tourist season. A more prudent approach would be to rebid the project with contract award planned for September or October. Additional consultant and advertising costs would be incurred for rebidding. Funds for the construction phase would need to be re-budgeted in FY 2021.

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