Agenda - Council Work Session - 10/23/2012

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CC Work Session 2. 1. Meeting Date: 10/23/2012 By: Shane Nelson, Engineering/Public Works Title: Sunwood Drive Project - Review Funding Package, Expenditures to Date and Construction Challenges Background: On June 26, 2012 the City Council awarded the construction contract for City Project 12-20. The City has also entered into contracts with service providers, landowner's for acquisition of land, and has incurred other costs related to the project. Notification: N/A Observations: In researching this case, I have found that several funding scenarios have been presented to the City Council. The funding package that was most recently received was distributed separately at the June 26, 2012 City Council meeting. Per the June 26, 2012 spreadsheet, the total project budget was $5,627,000. In previous versions, such as in the June 26, 2012 City Council case, the budget was $6,217,000. The total expenditures to date provided by the finance department are $2,723,943, which includes Pay Estimate #3 to North Pine Aggregate in the amount of $471,261.07 as well as other service invoices. The attached worksheet labeled "Projected Costs" lists the costs that are under contract to date, as well as possible additional costs that are known but may still be subject to approval by the City Council. As shown in the attached worksheet, the projected total project cost at this time is approximately $5,774,000. The projected total project costs includes a few items that have not been approved by the City Council, as follows: Relocate Conexxus Cabinet - The approximate cost for relocating the Conexxus cabinet is $19,000. Conexxus has offered to pay 1/3 of the costs contingent upon the City paying 1/3 of the costs and the Consultants splitting 1/3 of the costs. WSB has agreed to pay $3,166, or half of the 1/3, contingent upon Landform paying the same amount. Landform has agreed to provide the services for creating the new easement that is required for the relocation of the cabinet, but has not committed to a financial contribution at this time. Change Order #4 is presented separately as its own case and is in the amount of $22,645.79. Landform Project Engineering - Additional Services. Landform has submitted a work order for additional Project Engineering services in the amount of $15,000. Pursuant to the City's request, Landform has provided detail of their Contract Administration efforts to date (attached). Zayo Relocation Charges - Zayo has been notified that they will be required to move their facility that was in the old right-of-way of the old Sunwood Alignment. Zayo Group LLC responded by indicating that they have an agreement that requires the City to pay them to move. We reviewed the Conduit Use Agreement between the City of Ramsey and Zayo Group LLC on October 17, 2012, which states that the City is responsible for paying 2/3 of the costs for non -routine maintenance. We have not received an estimate for moving this facility at this time, and cannot say with any level of accuracy what the City responsibility may be. Overall, after the City acquires the two additional parcels and assuming that the additional costs/change orders are approved, it is likely that the overall project would exceed the June 26, 2012 project budget of $5,627,000. However, it is not likely that the overall project cost will exceed the earlier project budget of