ACTION REQUESTED:
Title
Communication from the City Manager and Director of Public Works with a Request to REINSTATE the CAPITAL BUDGET for Fiscal Year 2020 for the SHERIDAN ROAD RECONSTRUCTION PROJECT, in the Amount of $4,000,000.00. (Council District 2)
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BACKGROUND: The Peoria City Council approved several prior phases of improvements on Sheridan Road in 2016, 2017 and 2019. In February of 2020, City Council approved a contract with Illinois Civil Contractors, Inc. (ICCI) for the reconstruction of Sheridan Road from W. Eleanor Place to W. Richmond Avenue, the final phase of improvements on Sheridan Road. Work was scheduled to begin in April of this year, unfortunately due to COVID - 19, the project was placed on hold while the City evaluated the impact of the pandemic.
At the April 14, 2020 Council meeting, $26.7 M of the previously approved Capital projects were approved for reduction by Council in an effort combat the revenue losses due to the pandemic. Funds for the Sheridan Road Reconstruction project were part of this reduction; accordingly, it has been on hold while the City recovers. As part of the reductions, the Sheridan Road Reconstruction project budgeted in the 2020 Capital Budget was reduced from $4,190,000 to $190,000. Recognizing the difficult financial position of the City, ICCI has requested to begin work as soon as possible with payment being deferred until January of 2021. Doing this will allow most of the work to be completed this year with minimal cost to the City during 2020. The City’s expected costs for 2020 would be for the Phase 3 Engineering ($316,625.00) and the Contractors Mobilization costs per the contract that was approved in February ($210,000) for a total of $526,625.00. As $190,000 has remained in the budget, an additional $4,000,000.00 will need to be reinstated to meet the project costs. The remaining $3,918,600.93 would be paid in January of 2021.
ICCI is a local business that has successfully performed work for the city in the past, most recently having the construction contract in 2019 for the Geneva Road and Daniel Court Reconstruction. On the Geneva Road and Daniel Court project, ICCI was able to perform 23.48% of all hours by Minority workers, and 3.69% of all hours by female workers. City workforce goals are 18% for minority workers and 3% for female workers.
The Good Faith Efforts documentation submitted by ICCI were reviewed and approved by the city’s Chief Diversity and Inclusion Officer. The Company will utilize 10.12% of the value of the base bid for Minority Business Enterprises towards electrical supply, material testing, construction layout and trucking. Furthermore, the contractor proposes to use 7.38% of the value of the base bid for Women Business Enterprises towards pavement striping, traffic control, landscaping and paver installation.
FINANCIAL IMPACT: This construction contract will be funded via the CIP for Sheridan Road Reconstruction.
The following table is a breakdown of budgets and expenditures for the project that was approved at the February 11, 2020 Council meeting:
Budget Expenditures
2020 Sewer Funds $ 800,000.00 Construction (ICCI) $ 4,118,600.93
2020 State Motor Fuel Tax $ 2,150,000.00 Ph 3 Engineering (MSI) $ 316,625.00
2020 Local Motor Fuel Tax $ 1,000,000.00 Staff & Incidentals $ 10,000.00
B1603, SMFT from prior year Sheridan $ 263,942.40
Reimbursement Agrt. w/ IAWC $ 231,283.53
Available $ 4,445,225.93 Proposed $ 4,445,225.93
NEIGHBORHOOD CONCERNS: If this contract is approved, City staff will coordinate construction activities with the adjacent residents.
IMPACT IF APPROVED: Work on the roadway would begin immediately.
IMPACT IF DENIED: Work would be delayed until the spring of 2021
ALTERNATIVES: As Council Directs
EEO CERTIFICATION NUMBER: Illinois Civil Contractors, Inc. has current EEO #02533-200630.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Beautiful Peoria
2. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Invest in our infrastructure and transportation.
2. Reinvest in neighborhoods.
3. Have an efficient government.
DEPARTMENT: Public Works