Explanation
1. BACKGROUND
This ordinance provides $2,259,442.19 for construction inspection and administration deficits for capital improvement projects within the Department of Public Service. Additionally, this ordinance provides additional funds for projects with the Department to prevent future deficits.
Construction Inspection funding is normally authorized in construction legislation and available throughout the project. The amount for inspection is generally estimated by taking a percentage of the construction cost. Occasionally the funds set-up for this estimated cost are not sufficient to cover the inspection of the project through completion due to project unforeseen conditions, weather, construction change orders, etc. It is then necessary to request additional funding for the remaining inspection costs.
The funds requested by this ordinance will be used to supplement inspection and administration costs on projects that would have incurred a small deficit without the availability of these funds. The Department of Public Service usually performs an assessment of the remaining funding for inspection and administration for all projects two times a year. Separate legislation is submitted requesting Council approval for additional construction inspection and administration funds for projects that have or are projected to run large deficits before the completion of construction.
2. FISCAL IMPACT
Funding for these expenses are available within the 2024 Capital Improvements Budget. An amendment to the 2024 Capital Improvements Budget and a transfer of funds is necessary for the purpose of providing sufficient spending authority for the aforementioned project expenditures. Funds are appropriated.
Title
To amend the 2024 Capital Improvement Budget; to authorize the City Auditor to transfer cash and appropriation within the Streets and Highways Bond Fund; to authorize the establishment of an Auditor’s Certificate for construction inspection ...
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