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Desk Item #4DATE: TO: FROM: SUBJECT: REMARKS: MEETING DATE: 05/20/13 ITEM NO: 4 DESK ITEM COUNCIL AGENDA REPORT MAY 20, 2013 MAYOR AND TOWN COUNCIL GREG LARSON, TOWN MANAGER PPW JOB NO. 12-18 — FY 2012/13 STREET REPAIR AND RESURFACING PROJECT 811-9901 A. AUTHORIZE THE TOWN MANAGER TO EXECUTE A CONSTRUCTION CONTRACT WITH INTERMOUNTAIN SLURRY SEAL INC. IN AN AMOUNT NOT TO EXCEED $1,424,424. B. AUTHORIZE STAFF TO EXECUTE FUTURE CHANGE ORDERS TO THE CONSTRUCTION CONTRACT AS NECESSARY IN AN AMOUNT NOT TO EXCEED $150,000. Since the distribution of the May 20 Town Council agenda, staff received requests for information from a Council member, as responded to below. Question received: Since this is a capital budget item that proposes the use of funds in the FY 2013/14 CIP as the funding source, how can the Council approve a contract based on funding they haven't approved yet? Answer: Staff recognizes that the funding is not yet available for the work being proposed. For that reason, staff is specifically recommending that Council authorize the Town Manager to execute the contract for the work identified — as opposed to having Council approve the execution of the contract. The Manager will not execute the contract being proposed until the capital budget for FY 2013/14 is approved by the Council. Consideration of the proposed budget is scheduled for Council on Tuesday, May 28, with approval scheduled for Monday, June 3. PREPARED BY: TODD CAPURSO \ A� Director of Parks and Public Works Reviewed by: Assistant Town Manager (IlU Town Attorney Finance PAGE 2 MAY 20, 2013 MAYOR AND TOWN COUNCIL SUBJECT: PPW JOB NO. 12-18 — FY 2012/13 STREET REPAIR AND RESURFACING PROJECT 811-9901 Staff will be proposing a similar level of funding for Street Repair and Resurfacing as was approved in recent years. The Council will consider this project — and the corresponding funding - as part of the proposed FY 2013/14 Capital Budget on May 28. Because of the relatively small window to perform this type of work — the summer months — staff is recommending moving forward with as much preparatory work as possible in the interim. Additionally, staff proceeded with a springtime bidding process to take advantage of the favorable bid climate that exists in the industry at this time. For these reasons, this project is being presented to Council now is to recognize the results of the successful bidding process and receive the most competitive pricing for the project.