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DOT, Avon Park discuss financing options for road work

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By AIYANA BAIDA

Highlands Today

Published: October 29, 2009

AVON PARK - For the last two years, the economic downturn held up the expansion of U.S. 27 from Lake Isis Avenue to the Polk County line. But stimulus money going to the Department of Transportation has brought it back, and the city of Avon Park is looking at an unexpected $190,000 tab.

That may not be a bad thing, according to the DOT.

The project requires that the city relocate its utility lines for the two to six lane-expansion of U.S. 27 over a 2.7-mile stretch.

The city didn't plan on the project being resurrected so it wasn't put in the budget, said C.B. Shirey, Avon Park Airport manager, who's overseeing the project.

The project, brought to Monday night's council meeting, without financing options, raised some eyebrows among city staff and council members who faced a tough fiscal year.

"We're too small to receive stimulus money but we're not too small to stick us with this," Councilman Joe Wright said.

Renee Green, city finance director, said if the city goes through with, it they'll be out of money by Nov. 1.

Council members were presented with a supplemental agreement for engineering services and surveying from Chastain Skillman Inc. for an estimated $39,000. This estimate is for additional preliminary work needed for the relocation of the lines.

They were also presented with an estimate for the relocation costs of the utility lines, which would run about $150,000.

The estimate for construction of the road way is about $11.6 million in stimulus funding. It's expected to take up to two years.

"We're looking at projects that are shelf ready, meaning that everything is done up to the point of construction. That's why Avon Park qualifies as a potential job," Cindy Clemmons, DOT spokesperson, said.

According to state statues, if utility lines are in the state's right of way, the city has to pay for the relocation.

Although the stimulus money has not been awarded to DOT yet, they're making a list of projects that can be done quickly. And Avon Park's US 27 road expansion is on that list.

The city met with DOT Wednesday morning and discussed plans for financing the project through them. DOT proposed fronting the funds and having the city pay them back over a period of time.

"I got the impression from the DOT that the states are favorable to working this out with cities," Shirey said.

The project will be brought to the next city council meeting, and the financing options will be discussed, Shirey said.

The city would have to come up with a proposal of how much it can pay and how long it would take them to pay it. The state would ultimately have to approve.

The DOT's stimulus money is part of the president's American Recovery and Reinvestment Act of 2009. The act was created to stimulate jobs and local economies by rebuilding infrastructures.
Avon Park is not the only city having to finance these unanticipated road projects. But the DOT sees this as an opportunity to stimulate the local economy.

The incoming contractors will spend money at local shops and there's opportunity for them to hire locally, Clemmons said.

Although the bid goes to the best contractors at the best price, workers can be hired locally - and that's what DOT is facilitating in a Sarasota project.

"We've talked to the contractors and introduced them to local leaders...when they can hire locals they do," Clemmons said.

According to Shirey, once the DOT gets verification that it will receive the stimulus money, it will take 120 to 150 days to go through their state bidding process.

If everything falls into place, the project is likely to begin May 2010.

Highlands Today reporter Aiyana Baida can be reached at (863)386-5855 or nbaida@highlandstoday.com

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