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File #: 3028-2018    Version: 1
Type: Ordinance Status: Passed
File created: 10/29/2018 In control: Public Service & Transportation Committee
On agenda: 11/19/2018 Final action: 11/21/2018
Title: To authorize the establishment of an Auditor’s Certificate for construction inspection and administration fees; to authorize the expenditure of up to $100,000.00 from the Streets and Highways Bond Fund for the purpose of providing sufficient funding for construction inspection and administration services on Public Service projects; and to declare an emergency. ($100,000.00)
Attachments: 1. ORD 3028-2018 Misc Const Insp
Explanation
1. BACKGROUND
This ordinance provides $100,000.00 to prevent construction inspection and administration deficits for capital improvement projects within the Department of Public Service.

Construction inspection and administration funding is normally approved by Council when the construction costs are legislated for the project, and the funds are then available throughout the time it takes to complete the project. Inspection and administration costs are estimated by taking a percentage of the construction cost. Occasionally the funds set-up for this cost are insufficient to last through project completion. Projects may require additional construction inspection and administration funds for varying reasons including 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 are typically 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 are projected to run large deficits before the completion of construction.

2. FISCAL IMPACT
This is a budgeted expense in the amount of $100,000.00 in the Department of Public Service’s 2018 Capital Improvement Budget, Fund 7704, the Streets and Highways Bond Fund, Project 530161-100071 (Roadway Improvements - Miscellaneous Construction Inspection).

3. EMERGENCY DESIGNATION
Emergency action is requested in the interest of maintaining proper accounting.

Title
To authorize the establishment of an Auditor’s Certificate for construction inspection and administration fees;...

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