TPO technical committee approves two project cost overruns to allow awards

The Transportation Planning Organization Technical Committee on May 13 approved two cost-overrun requests to align federal funding with recent bids so award and construction can proceed.

Craig Lipke, TPO staff, presented the requests and recommended approval. "I do recommend approval of those cost overrun requests so both of these projects can be awarded and get out on the street," Lipke said.

The first request increased Local Surface Transportation Block Grant (LSTBG) funding for the Pleasant Ridge Road project by $3,061,004.69, raising the federal construction amount to roughly $12.0 million and representing a 46.8% increase to the original project cost. Lipke said the total construction cost including non-participating utility work is about $18.6 million and the all-phases cost is about $21.3 million. He noted the TPO’s LSTBG program and reserve balance, after the change, would remain in the multi‑million-dollar range.

The second approved request was for an Oak Ridge project with a mix of CMAQ and PM2.5 funding. Lipke said that change added $538,007.38 to the federal share for construction, producing an 18.9% increase to that project’s total cost; the all-in cost is about $4.6 million. He described a funding swap with TDOT that shifted some CMAQ funding into a carbon-reduction category to manage state budgets.

Lipke summarized the program-level effect of the approvals, showing the LSTBG overrun list totals just under $14 million and a program reserve that remains above the TPO’s contingency target. A motion to approve the two overruns carried by voice vote.

Committee members did not expand the discussion before approving the requests.

The committee recorded the actions as routine program adjustments to enable contract award and construction.