Greensburg's Main Street project way over budget

Bob Stiles

Jun. 11, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- The second phase of Greensburg's Main Street project has come in over budget by nearly $837,000, forcing city and state officials to scramble to find other funding sources.

"We'll have to see where we can get it," said Councilman Emil Peterinelli, adding that he hopes federal or state sources can help make up the difference.

Bids were opened May 21 by PennDOT officials. The low approved bid was $1,986,681 from Gulisek Construction Co. PennDOT's project estimate is $1.15 million.

Despite the cost overrun, city council and city officials indicate they want to do the work, but only if more city money isn't involved. The city has not yet awarded a contract for the project.

The project involves putting utilities underground on West Otterman Street from North Main Street to College Avenue, then up College Avenue to the Seton Hill University entrance. New sidewalks and curbs, brick-stamped concrete pedestrian walkways and brick-stamped ribbons -- strips that run along the sidewalks -- will be installed.

"We feel strongly about continuing with the project," said City Administrator Sue Trout. "It's designed to be a safety enhancement and an aesthetic enhancement, and we believe it will complement the cultural district."

Councilmen Randy Finfrock said if state or federal officials don't find more money, or if the scope of the project isn't downsized to match funding, "We'll say, 'Oh well,' and walk away. We're not putting any more city money into it."

Councilman Rob DePasquale agreed.

"We can't put in any more from the city's money to do that," he said. "And we won't. At least, I won't."

They said a line-by-line review of Gulisek's bid is under way.

Council raised property taxes by 3.8 mills, or nearly 18 percent, with the 2009 budget -- the first such increase in the city in more than a decade.

Councilman Tom Tridico said he wants to do the project and hopes the funding shortfall can be resolved. Mayor Karl Eisaman couldn't be reached for comment.

In the last four years, the city has contributed $436,000 to all three phases of the Main Street program. All of that money involved project designs done by Gibson-Thomas Engineering Co. in Latrobe, Trout said.

The city's share involves $106,000 for the first phase -- the completed work on Main Street -- $230,000 for this phase and $100,000 for the third and final phase.

Federal and state sources contributed $530,000 for the first phase and $1.15 million for the second phase, a total $1.68 million.

Trout said city officials are considering using $500,000 in additional federal funds to help cut the overrun. If that money were used, funding would still be short by nearly $337,000.

The remaining federal funds were designated for the third phase, which involves improvements to the tunnel on College Avenue near the entrance to Seton Hill. The work planned under phase two is in the same area as the university's new arts center.

In May, PennDOT threw out the low bid of $1.57 million by Donegal Construction for phase two, saying it failed to meet qualification requirements.

The project originally was scheduled to go out for bid in March, but the bid opening was delayed until late May.

Brian Svesnik, acting local project engineer for PennDOT's Region 12, which includes Westmoreland County, said he doesn't think the time change affected the bid totals.

"It's only a couple months. If it were a year or two (it could affect the bid totals), but that's only a couple months," he said.

Related work is being done on nearby Ehalt Street and Harrison Avenue, in the area of the new arts center. That work is being paid for by $260,000 in Community Development Block Grant funds that are funneled from the federal government to local officials.

The city contributed $20,000 to the Ehalt-Harrison project.

Trout said she hopes phase two of the Main Street project can still be done.

"I feel that it's a lasting pedestrian enhancement and an aesthetic benefit to the town," she said. "I'm hoping it spurs further development and encourages redevelopment in our downtown and cultural districts."

Newstex ID: 35670959