TITLE
The Mayor and City Council shall discuss and possibly take action to create a project in the Capital Improvement Program (CIP) by drawing on existing capacity in the CIP for additional right of way relocation costs associated with the SR347 Overpass project. Budget capacity for the project will be drawn from the Highway User Revenue Fund 20055151-54432, in the amount of $1,047,850. Discussion and Action.
AGENDA ITEM DESCRIPTION
The costs associated with condemnation settlements and relocation-related claims have exceeded the amount originally budgeted by ADOT for the SR347 Overpass project. Per the terms of the City’s IGA with ADOT, the City is responsible for 20.9% of any additional costs in excess of the initial estimate. The City’s share of the cost overruns is $1,047,850. Final condemnation, relocation, and demolition costs remaining for the project have not been determined and may result in additional cost to the City.
In the FY20 budget, the City made accommodation for an anticipated increase in HURF allocation to cities and towns from the State. The City included $2.0 million in budget capacity in the event the State would make a substantial award to Cities and towns beyond the usual allocation. The one time allocation of $2.0 million from the State was not realized. The City is seeking to utilize this budget capacity for the additional right of way relocation costs. Capacity will be drawn from Highway User Revenue Fund, Street Maintenance (20055151-54432).
STAFF RECOMMENDATION
Staff recommends approval of the transfer of capacity from the HURF fund (20055151-54432), and the creation of a project in the CIP (20055151-67750-35041) for additional right of way relocation costs associated with the SR347 Overpass.