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AGENDA ITEM REVIEW FORM |
7.C.
Special City Council Meeting
- Meeting Date:
- 12/17/2025
- Department Head:
- Jenny Torres
- Submitted By:
- Jenny Torres, Acting City Manager, Administration
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the Cesar Chavez Boulevard widening project. (Jenny Torres, Acting City Manager)
SUMMARY:
The City of San Luis has been working on the widening of Cesar Chavez Boulevard for 12 years. The City received $2.3 million from the ADOT AZ Smart Fund and $1.3 million from Federal appropriations for the project's design. The City was granted a $25 million Rural Surface Transportation Grant from the U.S. Department of Transportation (USDOT) and $33 million from the Arizona State Legislature for the project's construction. The City committed $3.2 million to meet the federal grant match requirement. Due to the project's complexity, the Arizona Department of Transportation (ADOT), through an intergovernmental agreement signed in December 2024 between ADOT and the City, agreed to administer the funds and oversee the project's design and construction. ADOT advertised and opened bids on November 7, 2025. ADOT received two bids: $57,044.316.00 from DPE Construction, Inc., of Yuma, AZ, and $63,525,777.00 from Fann Contracting, Inc., of Prescott, AZ. The City's total programmed amount is $61,200,00. The City's programmed funds do not cover construction engineering, post-design construction, and construction contingency, leaving a shortfall of $2,354,531.80. The IGA specifies that if the bid amounts exceed the construction cost estimate, the City is responsible for paying the difference. The ADOT staff will present the project to the ADOT board on December 19, 2025, to award the project to the lowest bidder. The $2,354,531.80 must be received and processed before the ADOT board meeting to be considered.
City Administration identified the funding to cover the gap and directed the finance department to wire transfer the funds to ADOT. Staff is requesting the council's approval of the budget transfer for the reasons presented.
City Administration identified the funding to cover the gap and directed the finance department to wire transfer the funds to ADOT. Staff is requesting the council's approval of the budget transfer for the reasons presented.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE BUDGET TRANSFER OF $2,354,531.80 (TWO MILLION, THREE HUNDRED FIFTY-FOUR THOUSAND, FIVE HUNDRED THIRTY-ONE DOLLARS AND EIGHTY CENTS) FOR THE PROJECT TO IMPROVE CESAR CHAVEZ BOULEVARD DUE TO THE CIRCUMSTANCES PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $2,354,540.00
- BUDGETED AMOUNT:
- $0.00
- AVAILABLE AMOUNT TO TRANSFER:
- $2,354,540.00
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Capital Outlay Improvement Roads GL Account 210-860-90010 $1,124,398.25
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
The request is for the City Council to approve a budget transfer of $2,354,540.00 from the GL account 310-311-90015, Capital Outlay-CIP, for the Wastewater fund, from project 2025050, West Wastewater Treatment Plant Expansion, to the GL account 210-860-90010, Capital Outlay-Improvements Roads, for the Highway User fund, to project 2025054, Cesar Chavez Boulevard.