City of Madison officials recently discovered the State Street reconstruction plan will cost 40 percent more than the original estimate of $3.7 million. This means the low bid of $5.2 million by Joe Daniels Construction is $1.5 million higher than anticipated.
\I'm shocked that the price came in 40 percent over what it should have been. That's just not acceptable,"" said Ald. Brenda Konkel, District 2.
Ald. Mike Verveer, District 4, said the city underestimated the price tag of the project despite its complexities, including many guidelines for the contractor.
Some of these guidelines include replacing all underground utilities that date back to the early 1900s, working double shifts from 7 a.m to 9 p.m., weekly meetings with State Street merchants and property owners to discuss progress, strict work schedules that cannot interfere with lunch hours and special events, meeting the Sept. 3 deadline so the project is done before the grand opening of the Overture Center, and most importantly providing ample access to every business on State Street during the entire reconstruction process.
Verveer said despite worries of potential disruptions to business, merchants realize the need for the project.
""Something has to be done because the structure as it is now is falling apart. We are just encouraging the project to be completed in a speedy manner,"" said Sandy Torkildson, president of the Greater State Street Business Association.
Torkildson added that in any large-scale reconstruction accessibility becomes a problem to businesses, but the city has been trying very hard to deal with the concerns of State Street merchants and property owners.
Verveer said the gap between the estimated budget and the actual budget will not be made up by State Street merchants and property owners because they are already paying a certain amount for the renovation. The money will instead come from other delayed street projects and federal funding dollars.
Torkildson said every storefront will be paying between $2,000 and $5,000, depending on State Street frontage.
""It's tough to think about something being $1.5 million over budget in these tight budgetary times,"" Konkel said.
The Board of Estimates will be holding a special meeting today and the City Council will be meeting on the issue Tuesday. City officials say it is highly anticipated the project will progress as planned even with the higher cost estimate.
