City Manager Nixes Proposal to Transfer Funds from Lower Thames to Washington Square Project

Newport City Manager Edward Lavallee on Tuesday withdrew his proposal to transfer $450,000 in DOT funds from the Lower Thames Street improvement project to the Washington Square restoration plan.

Lavallee said his recommendation was originally made based on concerns that Newport would lose the $450,000 from the Department of Transportation because it's gone unused for so long. The money was awarded seven years ago to restore the portion of Thames from Memorial Boulevard to Ann Street.

At the City Council meeting Tuesday, Lavallee said he would look into reinstating the Lower Thames Street project and that he has asked Director of Public Services, Bill Riccio, to revisit the scope of the Washington Square project to see if adjustments can be made to narrow a $500,000 shortfall for phase three.

"I was not trying to pit one business district against each other," Lavallee said of his original recommendation. "If the risk (of losing the DOT funds) doesn't exist and we can reinvigorate the Lower Thames Street project, then terrific."

Council members on Tuesday expressed surprise regarding the item's presence on the docket. Concern was also expressed about the lack of hard information regarding the cost overruns of the Washington Square project, the 'new' information about a ticking clock on the DOT funds, the plans for funding the shortfall, and the timeline for both the Washington Square project and the Lower Thames project.

Council members called for Lavallee to return to them in August with a detailed outline of how the city can make up for the Washington Square revenue gap and with an update on where the Department of Transportation stands regarding the $450,000 earmarked for Lower Thames Street.

"If 18 months ago we were worried about losing this money, why don't we have a plan?" asked Councilman Stephen Waluk. "We need to see details. We need to find out why the project for Washington Square was over by half a million dollars, and we need a plan for Thames Street."

Lavallee said $2.3 million was allocated for phase two and phase three of the Washington Square project, but because phase two used more than anticipated, only $1.1 of the $1.6 million allocated toward phase three is left. Councilman Waluk called for the city to explore using some of the city's parking fund to help narrow the gap, and to also consider downsizing the work if need be. The idea was seconded by Councilman Justin Mclaughlin.

Back to Lower Thames Street, McLaughlin proposed "upping the ante" for that project by allocating the $5 million that was promised for that area from a road bond approved in 2006.

"This illuminates that we aren't doing something we said we were committed to doing," he said.

Lavallee said he would reconnect with DOT immediately to make sure the money will still be there, with the understanding that it will take them a year or two to do the actual construction work on Lower Thames due to sewer work that needs to be completed.

Councilman Stephen Coyne requested a timeline from the Utilities Department for the pipeline repairs and for how the $450,000 fits into the road bond project.

"We can't afford to blow up Thames Street from start to finish for months and months," Coyne said. "We have to be sensitive to the businesses that rely on their livelihoods day in and day out on that street."

The city manager said a significant part of the project would be engineering work that includes a street-by-street detour plan.