In a study session that followed the 4/6 council meeting, Tipp City council-members were presented with a sobering update from City Engineer, Scott Vagedes regarding the reconstruction projects for Horton and Hartman.
Mr. Vagedes shared with council that while the City budgeted $264,000 for the Hartman Avenue reconstruction, the Engineer’s estimate has come in at $404,717, nearly 67% over budget. The news did not get any better as he shared the budget analysis for the Horton Avenue reconstruction. While the City budgeted $150,000 for that project, the Engineer’s estimate came in at $171,285, 25% over budget. The total shortfall for both project is $197,704.
All of the council-members appeared shocked and dismayed with the revelation that these two very much overdue reconstruction projects are now estimated to be almost a quarter million dollars over budget. Councilman Lovett, clearly upset, asked Mr. Vagedes, “Why are we so far off?” to which Mr. Vagedes replied, “there are a number of factors that I believe affected these estimates”.
- The “atmosphere of the bidding” was not as favorable as had been expected.
- Costs for materials (asphalt) are more than had been expected.
- Costs were estimated by the City Engineer using a per-foot-basis which can “vary greatly”
Mr. Vagedes continued to explain how he “thew a number out there” for Council to use for budgetary purposes, however after closer analysis by the Engineer they found that the foundation materials (gravel, drainage and asphalt) were very much lacking, requiring much more in the way of materials, inflating construction costs. The City Engineer provided an enhanced estimate to Council showing areas where corners could be cut, or funding could be diverted to help deal with the budget shortfall.
Councilman Lovett asked Mr. Vagedes whether this would cost residents with property on Horton or Hartman any more than what was estimated. The City Engineer stated that he did not believe so.
Council will be reviewing a motion in the coming week to put these projects out to bid from several construction firms which may produce a more favorable estimate than the Engineer.
