TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: An Ordinance of the City of North Port, Florida, Amending the Non-District Budget and Capital Improvement Budget for Fiscal Year 2024-2025 for Additional Funding for Price Widening Phase I Project R15PW1 in the Amount of $13,723,472; Providing for Findings; Providing for Posting; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
Recommended Action
Approve Ordinance No. 2025-09 on first reading and continue to second reading on March 11, 2025.
Background Information
The following provides a chronological order of events for the Price Boulevard Widening Project:
Ø Final plans for the Price Boulevard Widening Project include the following essential improvements to approximately 2.8 miles of this east-west arterial roadway:
ü The new road section will have two lanes in each direction and a continuous bi-directional turn lane down the center.
ü 10-foot-wide concrete multi-use paths will be provided on both sides.
ü The roadside swales will be replaced with a closed curb and gutter drainage system.
ü Improvements to the Utilities system within the project footprint.
Ø Prior to advertising the bid, the Engineer on Record provided an estimate of $74,944,376.47 for the project including utilities components.
Ø Request for Bid (RFB) 2024-28 for the Price Boulevard Widening Project was developed with bid alternatives to allow analysis of cost for the full project with the following options:
ü Stamped concrete center turn lane.
ü Stamped asphalt center turn lane.
ü Standard asphalt pavement center turn lane.
ü An option to install a walkway to temporary mailboxes.
ü An option to expedite utilities work.
Ø RFB 2024-28 was advertised on September 3, 2024, with an initial due date of November 5, 2024, however this deadline was extended to December 4, 2024, to allow additional time for contractors to complete bid documentation due to Hurricanes Helene and Milton.
Ø On October 23, 2024, the City closed on bonds for the Price Boulevard Widening Project. The City’s Aa2 bond rating and low debt position generated significant interest in this competitive financing opportunity. The Finance Department secured an excellent rate for the residents of North Port through this process. The bonds were competitively awarded to Jefferies, LLC, which submitted the lowest bid, achieving a True Interest Cost (TIC) of 3.306908%. While the referendum authorized borrowing up to $80M, the bonds were issued at $53.835M based on the available surtax revenues required for repayment. The bonds were issued at a premium, which provided $55M in funding for the estimated $75M project. The additional $20M was identified through grant funding, remaining project budget and reprioritizing other Public Works Department and Utilities Department projects.
Ø While representatives from over a dozen companies attended the mandatory Pre-Bid meeting for the Price Boulevard Widening Project, the City only received one bid on December 4, 2024. This solo bid received was from Watson Civil. The lowest possible project cost from this bid requires installation of the standard asphalt center lane option and removes bid alternatives to install walkways to mailboxes and to expedite utilities work. With these options, the bid totals $81,731,865.73, which is $6,787,488.26 over the Engineer’s estimate for the full project, without including projected contingency expenses. The City received information from other contractors that high demand for contractor services following the impacts of Hurricanes Helene and Milton curtailed their ability to allocate construction resources for the Price Widening Project.
Following the City’s Purchasing policies, the City engaged in conversations with representatives from Watson Civil to discuss the bid received and identify cost reduction opportunities. Watson Civil provided a revised bid on January 22, 2025, of $79,283,010.35. Utilizing a Florida Department of Transportation (FDOT) standard of 5% for contingency, the revised project total is $83,247,160.87. CIP R15W1 - Price Boulevard Widening’s current available funding, including bond funds and $1.5M grant from FDOT is $66,144,208.68, leaving a funding gap of $17,102,952.19.
The Departments of Public Works and Utilities staff have identified funding within other projects to move into the Price Boulevard Widening Project to fully fund this undertaking in the current year.
The Department of Utilities proposes moving $7,754,005 from Surtax funds currently budgeted to CIP U19NEP - Utilities Neighborhood Water/Wastewater Expansion project. Reducing funds within this project will delay sewer and water services to the Blue Ridge Salford North Phase 1 area. The project was scheduled to be constructed in Fiscal Year 2026-2027. It will be delayed until funds are in place to start construction.
The Department of Public Works has requested to transfer all remaining funds from Sidewalk and Pedestrian Bridges projects R24SWC in the amount of $200,229 and R25SWC in the amount of $477,430. Funding will be used for sidewalk and pedestrian crossing work included in the Price Widening Phase I Project and the previous projects will be closed. The construction cost for Water Control Structure 114 Project R21S14 in the Surtax Fund in the amount of $2,029,996 will also be transferred to the Price Boulevard Widening Project and staff will seek grant funding for the construction.
In the Transportation Impact Fee Fund, the Department of Public Works is requesting a reduction in the Interchange Road Infrastructure at Toledo Blade Project R22I75 in the amount of $1,500,000 and Interchange Road Infrastructure at Swinton Project R2275S in the amount of $171,812 to be transferred to the Price Boulevard Widening Project Phase I.
Finally, staff is requesting $1,590,000 from fund balance in the Tree Fund to complete the landscaping portion of the Price Widening Phase I Project.
Please note, the Ponce De Leon Multi-Use Path project R22SPD is included on the attached funding memo, but the $448,329 transfer request within the Surtax fund was already completed by a budget transfer request from the Department of Public Works and does not need to be included in this budget amendment.
Ordinance No. 2025-09 has been reviewed by the Interim City Attorney and is legally correct as to form.
Strategic Plan
Good Governance
Financial Impact
Ø Tree Fund (115)
$1,590,000 will be added to Price Widening Phase I R15PW1 from fund balance.
Ø Transportation Impact Fee Fund (153)
$1,500,000 will be transferred from Interchange Road Infrastructure at Toledo Blade R22I75 and $171,812 from Interchange Road Infrastructure at Swinton R2275S to Price Widening Phase I R15PW1.
Ø Surtax Fund (306)
$10,461,660 will be transferred into Price Widening Phase I R15PW1 from the following projects and amounts:
ü Sidewalk and Pedestrian Bridge R24SWC ($200,229)
ü Sidewalk and Pedestrian Bridge R25SWC ($477,430)
ü Water Control Structure 114 R21S14 ($2,029,996)
ü Neighborhood Expansion U19NEP ($7,754,005).
Procurement
Not applicable.
Attachments:
1. Ordinance No. 2025-09
2. CIP Sheets
3. Memo re: Price Widening Project January 28, 2025
Prepared by: Lisa Herrmann, Budget Administrator
Department Director: Kim Williams, Finance Director