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Oro Valley approves $341,000 to cover shortfall for Naranja Drive multiuse path
Summary
The Oro Valley Town Council voted 7-0 on June 30 to amend the Naranja Drive multiuse path project budget, adding $341,000 in town funds to cover a construction shortfall after bids exceeded the project estimate.
Oro Valley Town Council on June 30 approved Resolution R25-34 to amend the Naranja Drive multiuse path project from La Cañada Drive to First Avenue to include $341,000 in town funding, a 7-0 vote that will keep the federal grant-funded project moving forward.
Town engineer and public works director Mr. Keesler told the council the path is a constructed 10-foot-wide multiuse path extending about 1.75 miles along the north side of Naranja Drive. Design was completed March 10, 2025, and the Arizona Department of Transportation (ADOT) — the managing agency under the intergovernmental agreement (IGA) — opened bids June 13, 2025. The apparent low acceptable construction bid, from Granite Construction, was $2,733,476; when combined with design, ADOT administration and other soft costs, the project total rose to roughly $3,999,000, leaving a shortfall of $341,000.
Keesler presented three options: have the town provide the additional funding per the IGA; rescope and rebid the project (with no guarantee of returning to budget); or cancel the project and potentially face federal reimbursement demands for work already paid for. “This project is now underfunded by $341,000,” Keesler said. He recommended the town provide the funds, noting the invoice from ADOT is dated June 25, 2025, and that the town currently has remaining fiscal year 2025 road-project savings that could cover the amount without changing the upcoming budget.
Council members had no additional questions. Mayor Winfield moved to approve Resolution R25-34 to amend the project budget to include the $341,000 town contribution; Council Member Green seconded. No public comments had been registered for the item. The motion passed unanimously, 7-0.
According to the timeline given by staff, ADOT’s board review shifted the likely construction start to mid-September 2025, with completion in March 2026. Keesler warned that canceling the project could require the town to reimburse roughly $675,000 already spent on the project. The council’s approval authorizes the amendment adding town funds so ADOT can proceed under the existing IGA.
