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HomeMy WebLinkAbout9D - Downtown Overhead Utility Burial Project 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: SEPTEMBER 4, 2007 9D STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS CONSIDER APPROVAL OF A RESOLUTION APPROVING CHANGE ORDER NO.1 AND FINAL PAYMENT FOR DOWNTOWN OVERHEAD UTILITY BURIAL PROJECT AGENDA ITEM: DISCUSSION: Introduction The purpose of this agenda is to approve Change Order No. 1 and authorize final payment to Vesely Electric for the 2006 Downtown Overhead Utility Burial Project. Historv On April 17, 2006 the City Council awarded a contract to Vesely Electric for the Downtown Overhead Utility Burial project. Over the last year Xcel Energy buried the overhead power along Dakota Street from Arcadia Avenue to Erie Avenue and along the Hastings Alley from CR 21 to Kop Parkway. As part of the burial Xcel Energy does not pay for or complete the reconnection and burial of overhead services to commercial businesses. The above project required the burial of services to 17 businesses in the downtown. As part of the 2004 Downtown Reconstruction Project the City included $74,000 for this phase of the Power Burial Project. Current Circumstances The final service connections have been made and the power burial completed. The contract awarded on April 17, 2006 to Vesely Electric was in the amount of $72,817. The bid amount was based on a transformer design location from Xcel Energy and individual meetings with business owners to assess building services. During the Power Burial Project additional cost were incurred as follows: 1) Transformer Relocation: Xcel's original transformer location on Hastings Avenue was moved due to area constraints. This resulted in $10,064 for additional conduit and wire installation for four businesses. 2) Relocation Street Light Meter Pedestal: The final power burial required relocation of the existing meter pedestal for the street lights along CR 21. The total cost for this relocation was $2,445. 3) Dan's Auto: The original design did not require the City to reconnect the service for Dan's Auto. The final burial required this reconnection at a cost of $2,595. R:\CounciiV\genda Reports\2007\09 04 07\Oowntown Power Burial Final Agenda.doc www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 4) Shell Station Cost Increases: The power burial required several changes to the electrical system for the Shell Station. The existing building equipment ran off the existing 120/240 system and the underground system is 120/208 Y which was incompatible with many existing motors. This resulted in a cost increase of $4,469 for the services connection. The original contract amount was $72,817. The final project cost is $95,390.52. This is $22,573.52 more than the original contract amount. ISSUES: The additional work is not optional. By burying the power changes were made for the system that required the additional work listed above. Without those items being completed a minimum of six businesses would not have power and the City Street Lights along CR 21 would not be operational. This is the same way costs were handled in phase 1 of the Downtown Overhead Utility Burial Project completed in 2005. FINANCIAL IMPACT: The funding for the additional costs is available in the Construction Fund. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution approving change order No. 1 and authorizing the final payment for the Downtown Power Burial Project. 2. Table this agenda item for a specific reason. 3. Deny this agenda item for a specific reason and provide staff with direction. RECOMMENDED MOTION: Alternative # 1. R:\r:ouncil\Agenda Reports\2007\09 04 07\Downto'i.n1 Power Burial Final Agenda.doc A RESOLUTION APPROVING CHANGE ORDER NO.1 AND AUTHORIZING FINAL PAYMENT FOR DOWNTOWN OVERHEAD UTILITY BURIAL PROJECT Motion By: Second By: WHEREAS On April 17, 2006 the City Council awarded a contract to Vesely Electric for the Downtown Power Burial Project; and WHEREAS, During the power burial by Xcel the City's Contractor had to reconnect 17 business to electric power; and WHEREAS, Additional costs were incurred due to changes in the project by Xcel Energy and different requirements for business electric services; and WHEREAS, The final project cost is $94,681.92 which is $22,573.52 over the original contract amount. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City shall make final payment to Vesely Electric in the amount of $19,254.42 for a total contract amount of $94,681.92. 3. Funding shall be taken from the Street Oversize Fund Account #503-80206-501. PASSED AND ADOPTED THIS 4th DAY OF SEPTEMBER 2007. Haugen Hauaen Erickson Erickson Hedberg Hedbera LeMair LeMair Millar Millar YES NO Frank Boyles, City Manager R:\Council\Agenda Reports\2007\09 04 07\Downtown Power Burial Final Res.doc www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245