State roundabout work at 7th Street and Hwy. 77 triggers wide utility relocations; city reports partial reimbursements

City utility staff and project managers gave a detailed briefing on a state road/roundabout project affecting 7th Street and Highway 77 that requires moving power, water and sewer infrastructure and building an over-rail bridge alignment. Work north of I-40 is reported as complete for utility relocation; south of the interstate remains in planning or partial construction.

Staff said they relocated a force main and other lines and put some work out to bid. For one sewer relocation they reported a low bid of $455,050; the contractor finished the work for $430,050, below the accepted bid. Staff said some relocation costs are reimbursable by the state at specified percentages — staff repeatedly cited a 78.4% reimbursement figure for portions of the work — but noted reimbursement depends on whether facilities were originally inside state right of way or on prior-right agreements. Board members pushed back, saying in at least one instance the city was not reimbursed for the full amount and asked for clarity on who pays when state right-of-way changes force relocations. (Speakers: project staff; board members)

Project staff explained specific relocations: temporary power feeds to maintain signals, relocating water lines across the railroad, and operation of a new feed between the county jail and a concrete supplier to keep services active during construction. Where the project used the city’s existing easements, staff said the city bears the relocation cost; where ARDOT takes new right of way and the city has prior-installed infrastructure, a prior-right agreement may allow full or partial reimbursement. Staff described an instance where moving a water line in-house cost $15,309.17 for materials because the city’s water department performed the work rather than hiring the higher-cost contractor estimate.

Why it matters: the road and bridge work reshapes traffic access across the railroad and forces costly utility relocations; reimbursement rules and whether work can be done in-house have significant budget implications. Staff said the completed water and sewer relocations north of the interstate materially reduced project costs when the city performed work in-house, but other sections will require contractor bids and may be less reimbursable. Board members asked staff to track reimbursements and return with final reconciled costs and agreements from ARDOT.

Next steps: staff will continue relocations south of the interstate, solicit or complete remaining contractor work, and clarify reimbursement and prior-right agreements with ARDOT. (Speakers: project staff; board members)