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Morrisville says final Town Center bid leaves $2.13 million gap; staff proposes bond premium and reserves to fill it
Summary
Town staff told the council that final bids for Phase 1A of the Town Center totaled $20,874,890, creating a $2,127,151 shortfall; staff proposed covering the gap mainly with $1.1 million in 2024 bond premium, park reserves and accumulated interest and will return a CPOA amendment on Sept. 23 for council action.
Town Manager Brandon Zuda told the Morrisville Town Council on Sept. 9 that final contractor bids for Phase 1A of the Town Center came in at $20,874,890, producing a budget shortfall of $2,127,151 compared with the amount the council had previously authorized.
Zuda said staff proposes to cover the gap using three primary sources: $69,275 of interest already in the fund but not yet recognized, about $1.1 million from 2024 bond premium and $417,876 from park reserves. He said the bid documents include a 5% construction contingency and that designers retained a roughly 1.5% design contingency to help manage minor post-bid adjustments.
"The budget shortfall overall to reach the new bid amount was $2,127,151," Zuda said, explaining where staff would seek the additional authorization. He added that some savings from value-engineering work are reflected in the net change but that site costs (including storm drainage and additional soils), stage lighting and conduit work increased the overall price.
Staff told council the CPOA amendment describing the funding sources and updated authorization will be returned on consent for the Sept. 23 meeting. Zuda described the contingency structure and said some contingency funds may remain in the account earning interest as construction invoices are paid, leaving the option to revisit funding needs later.
Council asked for no immediate action and accepted staff’s plan to return the CPOA amendment at the next meeting. The council has previously approved the overall public-private partnership and development agreement with Singh Development for the Town Center; staff said Singh and the project contractor, identified in meeting materials as Bobbitt, have been cooperative in value-engineering efforts.
Next steps: staff will bring the CPOA amendment and accompanying financing detail back to council for formal action on Sept. 23. If approved, the town expects to proceed with Phase 1A construction under the new authorization.
