Spaghetti Bowl Xpress project to lose federal funding as price tag rises to $223 million

Jason Hidalgo | Reno Gazette-Journal

Show Caption Hide Caption Watch: Hear from those impacted by new Spaghetti Bowl project Hear from those that will be impacted by the new highway interchange Spaghetti Bowl project in Reno and Sparks.

The cost of the Reno-Sparks Spaghetti Bowl Project just got higher. Much higher.

The state is looking at a significantly higher price tag as well as the loss of $95 million in federal funds for the first phase of the Spaghetti Bowl reconstruction after it accepted a new unsolicited proposal to move the delayed project forward.

The first phase of the project — dubbed Spaghetti Bowl Xpress — is now expected to cost $223 million, according to the Nevada Department of Transportation and Regional Transportation Commission of Washoe County. The original amount that NDOT quoted for the project was $150 million. A recent decision by the Nevada State Transportation Board of Directors to accept a joint unsolicited bid for the project without seeking competing proposals also means that it no longer qualifies for federal funding. The joint bid was made by Ames Construction and Q&D Construction.

“Because federal funds can't be used for sole-source agreements such as this, the funding type is being proposed to change from federal to state transportation funding,” said Meg Ragonese, a spokeswoman for the Nevada Department of Transportation.

More: What is the deadliest stretch of road in Reno’s Spaghetti Bowl?

NDOT, which oversees the Spaghetti Bowl Project, is now seeking an amendment to the Regional Transportation Improvement Program that will allow it to increase the funding for the project and replace the lost federal dollars with state funds. The new proposed contract will be presented to the state transportation board later this month for approval. The RTC Washoe board will also have to approve the funding change because it is considered a regionally significant project.

The switch to a sole-source agreement triggered a public notification process, with RTC Washoe soliciting comments from the public about the proposed amendment through Dec. 19. RTC Washoe is a partner for the Spaghetti Bowl Project and is contributing $30 million to the construction effort.

The Spaghetti Bowl Project is a major reconstruction of the outdated interchange that is expected to impact many homeowners and businesses in the coming years. The freeways around the Spaghetti Bowl are also among the most dangerous stretches of highway in Nevada, according to a Reno Gazette Journal investigation.

Spaghetti Bowl a tangled issue

The Spaghetti Bowl Xpress hit a speed bump earlier this year after NDOT decided to nix a previously planned collaborative approach that combined project design and construction together. The joint approach — also known as “design-build” — was supposed to lower costs and expedite the construction process for the Spaghetti Bowl.

After the initial bids came in, however, NDOT opted to switch to a traditional procurement method where project design and construction are done separately. NDOT told the Reno Gazette Journal in August that the change was necessary because the bids were either over budget by $60 million to $80 million or did not meet the requirements set for the project. The original request for proposal indicated a projected cost range of $135 million to $165 million.

NDOT Spaghetti Bowl video shows new ramps, proposed freeway changes The Nevada Department of Transportation details new braided ramps, freeway widening under its preferred plan for the Reno-Sparks Spaghetti Bowl.

After NDOT rejected the bids and opted out of the “design-build” process, it received an unsolicited bid for the project from Ames and Q&D. The agency said it had three options under state law after that: accept the proposal and enter into a sole-source agreement with the proposer, solicit competitive proposals or reject the proposal. The State Transportation Board of Directors voted unanimously on Nov. 18 to have NDOT accept the unsolicited proposal.

“State funding allows additional flexibility in shifting project schedules to most effectively utilize and prioritize available funding,” Ragonese said.

The change received pushback from some members of the RTC board. RTC Board Chairman Bob Lucey and Vice-Chair Neoma Jardon both thought that NDOT should have stuck with the design-build process.

“That Spaghetti Bowl Xpress has been challenged for many, many years and it’s good if we’re able to see relief to some of the nastiest, most dangerous section of freeways in Northern Nevada,” Lucey said. “They need to get that back on track but the problem is how they’ve gone about doing it.”

‘It’s just frustrating’

Asked about the magnitude of the change involving the Spaghetti Bowl Xpress, RTC Washoe admitted that it was uncommon.

“Normally, the changes that occur with (Regional Transportation Improvement Programs) aren’t usually for large or high profile projects but usually for small administrative stuff,” said Daniel Doenges, RTC Washoe planning manager. “You try to avoid big changes like this, which also triggers a public notification process that’s a little bit time consuming and costs an extra expense for us as well.”

Another issue is that the new unsolicited build is still over budget compared to the initial $150 million cost that NDOT projected for the Spaghetti Bowl Xpress. The amount is also higher than the $162 million that NDOT eventually programmed for the project using a combination of local, state and federal funds — which include a Surface Transportation Block Grant and National Highway Performance Program funds.

Reno is revamping the Spaghetti Bowl's outdated design: Here's why Increased traffic has turned the Spaghetti Bowl into one of the most dangerous stretches of roadway in Nevada.

NDOT says its hands were essentially tied as far as the cost increase. According to the agency, additional engineering and right-of-way costs were added to the project because they were required for proper administration and oversight. The other cost increases can be attributed to higher construction costs, NDOT said.

“As the construction industry continues to boom in Northern Nevada, availability of skilled labor and the associated escalation in wages are contributing factors in the price increase,” Ragonese said. “Uncertainty in the current infrastructure market has also led to notable increases in subcontractor pricing as compared to previous pricing trends.”

Lucey, however, expressed concern about the increased cost burden to the state. Lucey is especially worried about the state having to foot the bill not just for the additional project costs but also the funding gap created from the loss of federal money for the project.

“You’re still taking a significant amount of money out of the state budget,” Lucey said. “That means other projects across the state might take a hit or that something else doesn’t come through.”

“It’s just frustrating from a policy standpoint,” Lucey said.

NDOT, meanwhile, says accepting the unsolicited bid allows "substantial construction" for Spaghetti Bowl Xpress to be completed earlier by late 2022 instead of late 2023. Although the $95 million in federal funding over a 20-year period will no longer be available for the Spaghetti Bowl Project, NDOT says federal funds will still be available for other state projects.

"The federal funding originally identified for Spaghetti Bowl Xpress improvements will instead be utilized for other Nevada state road improvements that would have used state funding," Ragonese said.

Public comment details

RTC Washoe is soliciting public comment through Dec. 19 for the proposed amendment to the Regional Transportation Improvement Program following a change in the Spaghetti Bowl Project. A public hearing is also scheduled for later this month, likely on Dec. 20. Copies of Amendment No. 1 are available for viewing and comment during regular business hours at the RTC Planning Offices at 1105 Terminal Way, Suite 211, Reno and on the RTC website at www.rtcwashoe.com. People can also send comments on the proposed documents prior to the public review deadline by mail, telephone, facsimile, or electronically to:

RTC Planning Offices, 1105 Terminal Way, Suite 211, Reno, NV 89502

Phone: 775-348-0480

FAX: 775-348-0450

ddoenges@rtcwashoe.com

For more information, you can also visit: https://www.rtcwashoe.com/mpo-projects/rtip-stip/

Jason Hidalgo covers business and technology for the Reno Gazette Journal, and also reviews video games as part of his Technobubble features. Follow him on Twitter @jasonhidalgo. Like this content? Support local journalism with an RGJ digital subscription.