Title
Discuss and vote on a request by the Town of Siler City to fund 60% of a local match for the Siler City Airport runway rehabilitation project.
Abstract
Action Requested: The Town of Siler City respectfully seeks affirmation from the Chatham County Board of Commissioners, by way of formal action, allocating 60% funding of the local match for the subject project. The requested assistance at 60% of the local match totals $160,346.16. This is an increase of approximately $40,000.00 from the $120,000.00 commitment the County previously made (based on a projected project cost of $2 million) to assist in the completion of the runway rehabilitation project. Provided continued support at 60% of the local match for this project by Chatham County, the Town is committed to funding $106,897.44 to see this project realized.
Introduction & Background:
The Town of Siler City General Aviation Airport located at 80 Aviation Drive, Siler City, is planned to undergo a capital improvement project that involves full-depth reclamation and rehabilitation of the facility’s runway, taxiway, and apron surfaces with assistance from the NC DOT Division of Aviation (Division). The Division partnered with the Town in 2013 to design and fund the rehab project. To date, the Division has funded the full cost of design engineering, and is committed to funding the full cost of construction administration, inspection, materials testing, and ongoing preservation maintenance associated with the subject project. In addition, the Division is committing 90% of the $2,672,436.00 cost of project construction. The Town of Siler City is responsible for the remaining 10% of the noted cost as a local match.
In FY2015, the Chatham County Board of Commissioners took action to assist the Town by funding 60% of the local match. At the time the County Board committed to the noted assistance to the Town, the anticipated construction project cost was approximately $2 million. The project cost has since increased, owed to two factors: 1) existing non-typical conditions at project site requiring remediation; 2) bid proposals coming in higher than anticipated. The first of the two factors moved the anticipated project cost to $2.5 million, which was vetted through and concurred by the Division. The second factor resulted in a lowest responsive bid at an amount nearly $700,000.00 higher than the projected $2.5 million project cost.
Following bid openings and the verification of lowest responsive bid, the Town, with its engineering consultant WK Dickson, negotiated alternative project scope options to reduce the project cost. Discussions between the Town, the apparent low bid contractor Fred Smith Company, and the Division resulted in a number of project scope alternatives that
were agreeable to all parties for consideration. These options were communicated to the Siler City Airport Authority (Authority). In consideration of the subject alternative scope options, the Authority recommended to the Siler City Board of Commissioners “NCDOT Option 1”, which calls for the use of DOT Highway Asphalt Mix as opposed to FAA Runway Mix. This option reduces the cost of the project, while offering the desired engineered strength to the Airport runway (45,000lbs. weight capacity). However, the weight capacity will require FAA review and certification following the completion of the construction project. In the event FAA’s analysis results in a reduced strength certification (30,000lbs.), the reduced rating will be no less than the existing runway surface strength, and what would be certified with the alternative option of using FAA Mix.
With attention to the foregoing, and with both options (State Highway Mix and FAA Mix) having the same relative cost (on account of the Division funding construction administration if State Mix is utilized), the Siler City Board of Commissioners took action at its regular meeting on July 6, 2015 to award the subject contract to Fred Smith Company with the aforementioned NCDOT Option 1 alternative scope of work.
The revised project total, for which local match is required, is $2,672,436.00. Accordingly, the 10% local match for the same totals $267,243.60.
Budgetary Impact: $160,346.16.
Recommendation: Motion to approve the 60% local match.