MoDOT explains bridge payment snafu

Thursday, July 1, 2010
Rusty Murry/Daily Mail Missouri Department of Transportation senior transportation planner Eric Kellstadt explains to Vernon County Commissioners Neal Gerster and Kennon Shaw why an overpayment by MoDOT on a county bridge project must be paid back to the state. Kellstadt and other MoDOT representatives were in Nevada on Wednesday, June 30, to clarify that situation, discuss upcoming projects and introduce the new county representative who is taking Kellstadt's place.

By Rusty Murry

Nevada Daily Mail

Vernon County Commissioners met representatives of the Missouri Department of Transportation in the commission chambers on Wednesday, June 30 to discuss overpayment and reimbursement of bridge construction funds and other issues.

The primary topic of the meeting was an overpayment to the county by the state during the last bridge construction project the county undertook. Eric Kellstadt, a senior transportation planner for MoDOT, explained to commissioners Neal Gerster and Kennon Shaw how the overpayment occurred.

Bridges are paid for from an Off System Bridge Replacement or BRO fund. The fund is used to replace bridges that aren't part of the state highway system. When the county replaces a bridge, most of the money comes from that fund which is allocated by the state. A portion comes from the county.

On the last bridge project, "the state paid in full up to invoice 21," said Kellstadt. The next three invoices to come in "reflected a deduct change orders that resulted in a $20,700 savings" over the original cost of the project.

The county's portion of the payment comes late in the project and the state had already paid a large part of that amount. As a result the state had paid the county about $17,000 too much. That has to be reimbursed to the state.

All of the money came out of the BRO fund. The county will have to write the state a check which will be deposited in their road fund. The BRO funds are distributed from that fund and the money paid to the state will eventually end up back in the county's BRO fund.

Actually the BRO fund is in better shape than the two commissioners present thought because the legislature had reinstated a portion of it they had cut earlier in the year. The options for re-paying the money aren't defined as yet, and it was agreed that the commission would wait for Kellstadt to give them the options before taking any action.

In other discussion the commission wanted to know if they could build all of the county's bridges with county employees. Kellstadt told them that counties can only build two out of three bridges. Gerster replied, "the way we see it is that money is allocated to us and if we can build three bridges with the same money we can farm out to another outfit, that should be the way to get the bridge done."

Kellstadt reiterated that one of the three bridges had to be built by a contractor. "And why's that?" Gerster asked, "that one cost us three times as much as what we build the other two for," he said.

Kellstadt said, "the best explanation is that it's to ensure that the county stays competitive with what a contractor can do." He said the state highway commission determines whether you can build with your own forces. "We need an actual cost comparison to show the highway commission that it actually is cheaper," he said.

Shaw asked Kellstadt, "does the contractors association enter into this in any way?"

MoDOT District 7 planning manager, Scott Bachman answered, "I can't answer that definitively, but on a national level, there's certainly a lobbying effort there."

Shaw said, "we're just trying to get the most out of our money." Kellstadt urged the commission to go ahead and try to build themselves. "If they say no, you can cancel the project and pay back the money or hire a contractor and move forward."

There is one county bridge project on hold right now waiting for steel to be delivered. Kellstadt reminded the commission that all iron and steel used in the county's bridge projects had to be made in America. Gerster said that wasn't a problem, "everything we buy should be bought in Missouri, but that's just not possible."

The group discussed consulting, planning, engineering and bidding aspects of the bridge building process as well. Kellstadt recommended requiring references for all of those things and using them to determine the best firms for the work. And he encouraged them to call with any questions the commission may have. "That's what we're here for."

Before ending the meeting, Bachman introduced Julie Zibert, a senior transportation planner who is taking Kellstadt's place as the MoDOT representative for Vernon County. Bachman said, "you won't see any change in service, just a new face. I'm sure she'll do a good job for you."

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