Memorandum 16-090 Street Repaving Project - Ordinance 16-10 Amendment

Memorandum 16-090

To:                       Katie Koester, City Manager

From:                  Carey Meyer, PW Director

Date:                   May 11, 2016

Subject:             2016 Repaving Project – Ordinance 16-10

The amount authorized in Ordinance 16-10 to complete the 2016 Repaving Project was inaccurate. The project budget provided by Public Works (Memorandum dated February 16) included costs defined as administrative costs ($75,494). Public Works has never charged administrative or project management time directly to a HART fund project budget. Eliminating the administrative costs from the approved project budget would reduce the authorization from $638,000 to $562,506.

As stated above, Public Works has not in previous years charged time to HART projects. Previously, the full time project manager was 100% funded out of general fund, but it was recognized that any time spent on grant reimbursable projects would be charged to the grant. This year, the part time project manager was hired with the understanding that he would only work on grant projects (no charges to general fund was authorized).

In previous years, some administrative costs incurred by Public Works in support of the HART program were covered by an administrative cost transfer from the HART fund to the General fund. In 2016 this transfer is not a part of the operating budget.

Without including project management time within the paving project budget, the Public Works project manager is not authorized to complete project management duties associated with HART projects.