City weighs up to $540,000 to cover higher bids on Route 100 cost-share projects with MoDOT

The Administration and Public Works Committee was told that bids for three packages of work on Route 100 — including two city cost-share projects (left-turn lanes and J-turns) packaged with MoDOT’s resurfacing — came in substantially above 2020 construction estimates and original cost-share agreements.

Public Works staff said Pace Construction was the apparent low bidder at about $14.3 million for all three projects combined, and that the city’s two cost-share pieces total roughly $6.4 million including construction engineering. Staff said MoDOT is asking the city to make up the difference between the 2020 estimates and current bids; staff’s preliminary calculations put the city’s potential additional obligation as high as about $540,000 and more likely nearer $280,000.

The committee was repeatedly advised that the original cost-share agreements (signed in 2021 and based on 2020 estimates) do not expressly obligate the city to pay overruns but do allow MoDOT to cancel the agreements. That gives MoDOT leverage to delay or withdraw the city’s projects if no supplemental funding agreement is reached. Staff said MoDOT has suggested the city make up the shortfall and has signaled it could postpone awarding the contract if the issue is not resolved before the MoDOT commission meeting.

Committee members discussed options: accept MoDOT’s request and negotiate a supplemental agreement; offer to pay a lesser amount; request more federal funding for parts of the work (staff said city staff will check whether additional federal funds can be obtained, particularly for the J-turn portion); or drop one of the city projects from the package. Committee members emphasized the safety need for the Route 100 resurfacing and related intersection improvements but acknowledged the city would need to cut or delay other capital projects if it covers the full estimated overrun now.

The committee asked staff to prepare an informational report for the council that (1) recommends capital projects to remove or delay to cover any deficit if necessary, (2) asks East-West Gateway about an inflationary adjustment or additional assistance, and (3) returns to the Administration & Public Works Committee with a draft supplemental agreement and recommended terms at its April meeting. Staff said they will present that informational report to city council and return with the supplemental draft.

Committee members noted the practical risk: MoDOT packaged resurfacing with the city’s improvements to attract bidders, so withdrawing city elements could require MoDOT to rebid the resurfacing alone and might complicate scheduling. Staff said they expect MoDOT will likely move forward with at least the resurfacing, but they could not guarantee the outcome and urged the committee to provide direction to city negotiators.

The committee voted to have staff submit the informational report and to return with recommendations and a draft supplemental agreement at the April meeting.