Memorandum

City of Lawrence

Public Works

TO:	David P. Cronin, P.E., City Engineer
FROM:	Zachary D. Baker, P.E., Project Engineer
DATE:	10/6/15
RE:	PW1501 2015 KLINK Project Iowa Street Funding Transfer

Project Description

The 2015 KLINK project this summer included the milling and overlay of pavement on Iowa Street between 23rd Street and the Irving Hill Road bridge and Harvard Road to south of 6th Street.

Project Funding

Kansas Department of Transportation (KDOT) contributes fifty percent (50%) of all “eligible” costs of construction and construction inspection services, up to a maximum amount of $200,000. The city is responsible for the rest of construction costs. The estimated construction costs for this 2015 KLINK project was $800,000 and the low bid that was awarded was $796,227.35. Actual construction costs for the 2015 KLINK project was $794,910.03. The city budgeted $550,000 from the General Fund to pay for the KLINK project with another $200,000 to be paid for by KDOT. Therefore, a change order for extra funding in the amount of $44,910.03 from the Infrastructure Sales Tax fund is needed.

Also, the $200,000 match portion of the KDOT is paid initially by the city and reimbursed by KDOT the following year. The purchase order for this project was set up assuming that money would be coming out of the general fund. This was not budgeted for in the general fund, so the $200,000 needs to be transferred from the Infrastructure Sales Tax fund to the General Fund as well to keep the General Fund balanced. This amount will be reimbursed to the city by KDOT in 2016.

Action

Approve a change order for the 2015 KLINK project of $44,910.03 as well as $200,000 for the KDOT’s matching portion of the project from the Infrastructure Sales Tax fund, which will be reimbursed from KDOT in 2016.