Title
Ordinance amending the FY14-15 budget for interchange lighting refund
Body
SUMMARY:
In 2003, the City entered into an agreement with TDOT for the construction of interchange lighting on the northeast quadrant of I-40 and Hwy. 127. The City agreed to pay 50% of the costs. A deposit of $50,000 was made to cover 50% of the estimated costs. In 2005, the project was bid and the City was requested to deposit an additional $35,138, which was done. In April 2008, the State requested an additional $110,272.52 to cover costs. This request was challenged by the City Clerk and the State requested to review the charges and send a detail of the costs charged for one light pole that was awarded at a cost of $154,796.32. Following their review, they discovered that there were costs charged to the account that should not have been and, eventually, revised the final costs which resulted in a credit due to the City of $19,157.47. The City Clerk requested that the money be refunded to the City. Because it was a wire transfer, the City Clerk was unaware that the State refunded $87,933.69 in 2008 for this project instead of $19,157.47. A letter was just received from the State requested that the City pay the difference of $68,610.74 back to the State.
BUDGET ACCOUNT: Budget amendment required
Recommended Action
NECESSARY COUNCIL ACTION: Adopt budget amendment on third and final reading.