ENGINEERING

MEMO

TO:                 Mike Wildgen

FROM:           Terese Gorman

CC:                 Debbie Van Saun

                        Dave Corliss

                        Chuck Soules

                        Ed Mullins

Roger Coffey

DATE: March 29, 2004

SUBJECT: Project No. 1-CP1-198(S)

West 6^th Street, Folks Road to the SLT

                        Street, Storm Sewer, Waterline Improvements

                        Financing

The Kansas Department of Transportation (KDOT) is scheduled to bid the 6^th Street project in May 2004.  This project was originally selected by KDOT in October 1997 to receive Economic Development funds to construct a new four-lane roadway between Champion Lane and the SLT with a maximum state participation of $2,000,000.  In January 1998, Bucher, Willis and Ratliff was hired as the design engineer for this project.  In April 2002, the project was converted to System Enhancement funding with state participation of 80% with no maximum state participation in the construction, property acquisition, utility relocation, and construction inspection.

In November 2000, the City Commission approved staff’s recommendation to add the design and construction of water transmission lines along 6^th Street to the project.  In July 2001, the City Commission added the design and construction of a center turn lane on 6^th Street between Champion Lane and Folks Road.  Both of these items had no state participation and were to be funded entirely by utility revenue funds and general obligation bonds, respectively.

The estimated costs for the City share for this project are as follows:

Engineering (100% City Cost)                                                             $     660,000

Property Acquisition, Champion to SLT (20% City Share)                       690,000

Property Acquisition, Champion to Folks Road (100% City Cost)    1,150,000

Waterline (100% City Cost)                                                          1,500,000

Utility Conduits (100% City Cost)                                                                210,000

Utility Relocation (20% City Share)                                                  60,000

Road Construction, Champion to SLT (20% City Share)          1,400,000

Road Construction, Champion to Folks Road (100% City Cost)            360,000

Inspection (20% City Share)                                                                         270,000

                                                                                                                              $ 6,300,000

In May 2002, the City Commission adopted Resolution No. 6374 in the amount of $3,295,000 to fund this project.  At this time, temporary notes in the amount of $3,172,268 have been issued.  An additional funding resolution is required to meet the City commitment for this project.

Proposed funding sources for the various elements of this project are as follows:

            Utility Revenue funds                                                $          1,500,000

            General Obligation bonds                                                   

                        Resolution 6374                                                        3,295,000

            General Obligation bonds

                        proposed Resolution 6539                                      1,505,000

            Total City funding sources                                        $          6,300,000

Per Agreement No. 182-00 executed by the City on April 25, 2002, the City will be billed by KDOT for the estimated City share of the project approximately one month after the bids are opened in May 2004.  We anticipate construction on this project will get underway in July, 2004 and an estimated fifteen month construction timetable.

Action Request:  Adopt Resolution No. 6539 authorizing the issuance of general obligation bonds in the amount of $1,505,000 for construction of 6^th Street, Folks Road to the SLT.

Terese A. Gorman, P.E.