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Home My WebLink About6.g. Approve Agreement with Xcel Energy for Utility Relocation Design - Old County Rd 38, City Project 387AGENDA ITEM: Approve Agreement with Xcel Energy for Utility Relocation Design -Old County Road 38, City Project #387 AGENDA SECTION: Consent PREPARED BY: Andrew J. Brotzler, P.E., City Engine- II i �AGEND ATTACHMENTS: Preliminary Engineering Agreements O v APPROVED BY: LW RECOMMENDED ACTION: Motion to Approve an Agreement with Xcel Energy for the Utility Relocation Design to Accommodate Improvements on Old County Road 38 and Authorize the Necessary Signatures. 4 ROSEMOUNT ISSUE: BACKGROUND: SUMMARY: CITY COUNCIL City Council Meeting: March 21, 2006 EXECUTIVE SUMMARY City staff requests Council authorization for staff to execute two agreements with Xcel Energy for preliminary engineering services associated with relocation of transmission power poles along the Old County Road 38 project corridor. Several Xcel Energy transmission line poles along the Old County Road 38 corridor need to be relocated to accommodate roadway widening. Engineering design, as well as construction of these relocations is performed in -house by Xcel Energy. Because the current pole locations now exist within utility easements previously secured by Xcel, compensation to Xcel Energy by the City for both design services and construction related to the relocations are required. The agreements in question provide for Xcel's preliminary engineering services (including, but not limited to engineering, right of way, surveying, and drafting) and other associated activities that must be performed in order to arrive at a detailed cost estimate for the relocation project. Two Preliminary Engineering Agreements, attached here, have been drafted by Xcel Energy, one for Old County Road NSP Line 0703, and one for Old County Road 38 NSP Line 0742. Both agreements have been reviewed by the City's Attorney, and a minor revision has been included in paragraph 5 as a result. This revision is acceptable to Xcel Energy and has been reviewed and initialed by Xcel Energy representatives. Xcel Energy's preliminary engineering fees are based on 9% of a rough estimation of project construction costs and are as follows: $22,158 for NSP Line 0703 and $50,580 for NSP Line 0742. Payment of these fees are required before design services can be started. Staff recommends Council authorization of staff execution of the attached two Preliminary Engineering Agreements with Xcel Energy and payment to begin design. G.I ENGPROJ13871XcelEnergyAgreementCC3- 21- 06.doc 0 Xcel Energy January 11, 2006 Andy Brotzler City of Rosemount 2875 145 Street West Rosemount, MN 55068 -4997 RE Transmission Line Relocation NSP Line 0703 PRELIMINARY ENGINEERING AGREEMENT 414 Nicollet Mall Minneapolis, Minnesota 55401 -1993 NSP has received a request from your office that NSP investigate replacing structures on Line 0703 in Rosemount, MN. As with any construction project, preliminary engineering (including, but not limited to engineering, right of way, surveying and drafting) and other associated activities must be performed in order to arrive at a detailed cost estimate for the whole project. It is NSP's policy that before these activities begin, the party requesting the detailed cost estimate must agree to pay the costs of these preliminary activities; in addition, NSP requires advance payment of 80% of the rough estimate of these preliminary costs. For this project, a rough estimate of the preliminary engineering costs is 522,158, so NSP will require a deposit of 517,726 advance and your agreement to pay, following completion of the preliminary activities, the balance of costs actually incurred by NSP If you wish NSP to proceed with the preliminary activities, please execute this letter as provided below and return it to the undersigned with a check in the amount of 517,726 payable to Northern States Power Company. Upon receipt of the above, NSP will prepare detailed plans and cost estimates for the entire relocation project, plus any costs associated with the acquisition of new right of way (including costs of easements) The detailed plans and estimates will be forwarded to you for your review and if you desire to proceed with construction, you should notify NSP in writing NSP will then prepare a Relocation Agreement covering the terms of such relocation, including, but not limited to: City of Rosemount will pay the actual costs of such relocation Such actual costs shall include the wages (including all fringe benefits) of all employees of NSP devoting tune toward design, engineering, construction, acquisition of right of way, administration or any other activity associated with said relocation project; costs of any necessary right of way; overhead costs associated with surveying, construction and other operations in the field 1/11/2006 Page 2 (including, but not limited to charges for mileage, equipment rental or cost, etc); and material costs for all Items associated with said relocation 2. Upon execution of the Relocation Agreement, City of Rosemount will pay NSP 80% of the estimated cost of the relocation; the estimated cost will be the cost estimate determined from the preliminary activities discussed earlier in this letter. 3. Upon completion of the relocation project, City of Rosemount will pay NSP any excess of the actual costs over the 80% deposit received by NSP, any overpayment will be refunded by NSP. 4. NSP will reconstruct its transmission lines as quickly as is possible, subject to allowances of extra time for strikes or unforeseen delays in delivery of necessary materials, or other unforeseen contingencies, or because of NSP's need to transfer electrical energy without interruption. 5. City of Rosemount will indemnify and hold NSP harmless from and against all claims, damages, liabilities, costs and expenses (including attorney's fees) arising in connection with the relocation project, except such claims, liabilities, costs and expenses (including attorpe s fees) c ?f sed by the egligence No th rn States p Company. 001.1" kalti,� stall �y J ck alr�c r o R e G ep lta. l a V:4:01 yet 4 After execution of t e Relocation Agreement, actual field construction will begin as soon as possible, but not until the necessary right of way has been obtained. In the event such right of way cannot be obtained, the relocation project will terminate and City of Rosemount will pay NSP for all costs incurred up until such termination. Alternatively, if after reviewing the detailed cost estimate you decide against proceeding with construction, the $17,726 deposit made with the return of this letter will be applied towards the costs of the preliminary activities; any deficiency shall be paid by you to NSP and any excess will be refunded by NSP. The minimum schedule duration for planning, engineering, material procurement and construction for this project work is 9 months. Spec fc outage restraints and scope of project may require additional time and planning. If the above terms are acceptable to you, please signify your assent to them by executing the original copy of this letter and returning it to the undersigned along with a check for $17,726 10/10/05 AU Documentl 1/11/2006 Page 3 A Scott Johnson Highway and Railroad Liaison 414 Ntcollet Mall Minneapolis, MN 55401 (612)330 -6078 cc: Mike Hawkinson City of Rosemount hereby requests NSP to begin prekmznary engineering and related activities for the above relocation project and agrees to the terms set out above relating to such activities. 10/10/05 AU Documentl Dated By Its I Xcel Energy° A Scoping Estimate" is provided by Xcel Energy for the convenience of the requesting entity (Requester) It is produced before engineering design has been completed. Xcel Energy will make every effort to produce a representative estimate that will incorporate as many project- specific factors as possible However, a Scoping Estimate is frequently based on typical conditions encountered on past construction projects and utilizes historical cost data from other Xcel Energy projects which may or may not be directly comparable Requester Name Address Andy Brotzler City of Rosemont 2875 145 Street West Rosemont, MN 55068 -4997 Scoping Estimate T.R.# 830A Phone (651)423 -4411 FAX (651)322 -2694 A Requester should not rely solely on a Scoping Estimate and Xcel Energy will not proceed to construction based on this estimate. A Scoping Estimate will only give a broad -based estimate of the possible costs that may be incurred during a potential construction project. If a Requester wants a more definitive estimate of the cost of a project, an "Engineering Estimate" should be requested. Requester agrees to pay Xcel Energy $17,726 for this Preliminary Engineering Agreement. Requester Initial Project Information Date Name County Rd hwy 38 State Aid Project SAP208- 105 -01 Location Rosemont MN between Robert Trail South to Akron Avenue Scope A section of 69KV line 0703 kegan Lake to west to open line is impacted by the City of Rosemont's hwy 38 work. The transmission line will remain on the south side of hwy 38 until it crosses to north into Kegan Lake Substation. Almost every structure between Robert Trail South and the Kegan Lake Substation will need to be replaced due to road grading and moving the Xcel Energy distribution line from north side of road to this section of line as underbuild. Project Assumptions: Preliminary designs are based on plan drawing received by Xcel Energy. Any changes to these plans must be communicated to Xcel Energy in a timely manner as the design options could change By signing below Requester agrees that this document sets forth the correct Project Information and Project Assumptions. Estimate of Costs by Xcel Energy $246,200 Permanent Installation: Transfer 5,100 ft of existing Conductor and 1,700 ft of Shield wire to new structures 1) Detailed Engineering including soil borings and survey will not start until the Preliminary Engineering Agreement is signed and returned with appropriate fee. 2) Distribution circuit will be removed from north side of road and designed for on all new Transmission line structures. Distribution impacts to the structures will be considered as betterment and not charged to the City of Rosemont. 3) Every effort will be made to use wood pole design but if this is note feasible steel mono poles on drilled pier foundations may be required and their lead -time will add almost 6 months to the process. NOTE: two key areas that will impact the use of wood poles is the assumption that the guy stub pole on the north side of the road for structure #1031 can be reused or replaced on the north side of the road again with some new anchoring And, the assumption that the City contractor can do grade lowering behind structure #1034 so new anchors can be installed at rough grade. Install four (4) tangent wood Poles [strs 1027,1029, 1032, and 1033] $105,000 minus Distribution betterment $1000 per pole Install three (3) bisector guyed Wood Poles and anchors [strs 1028,1031 and 1034] $52,000 minus distribution betterment $1000 per pole Install two (2) direct embed steel Non guyed LD Poles for light Angles [strs 1028, 1030]. $62,000 Minus distribution betterment $1000 per pole 16,200 80,000 75,000 $60,000 Removal of seven existing Wood pole structures 10,000 Contingencies 5,000 Total Indicative Estimate $246,200 Estimated typical engineering Agreement based On 9% of Estimated engineering costs $22,158 Preliminary Engineering Agreement based on 80% of Estimated engineering costs $17,726 An Scoping Estimate must be signed by both parties and dated. Each signature below is made contingent upon this document being signed by the other party. Requester Xcel Energy Name (Printed) Signature Date Signatur Date Requester Xcel Energy Name (Printed) 1 Ants. Bruce LaMar Name(Pnnted) 1 IC -6 6 n Jandro e(Printed) AAA!" 1 Signature Date Si. ature Date Xcel Energy- February 16, 2006 Andy Brotzler City of Rosemount 2875 145 Street West Rosemount, JI4N 55068 -4997 RE Transmission Line Relocation NSP Lzne 0742 PRELIMINARY ENGINEERING AGREEMENT 414 Nicollet Mall Minneapolis, Minnesota 55401 -1993 NSP has received a request from your office that NSP investigate replacing structures on Line 0742 in Rosemount, MN. As with any construction project, preliminary engineering (including, but not limited to engineering, right of way, surveying and drafting) and other associated activities must be performed in order to arrive at a detailed cost estimate for the whole project. It is NSP's policy that before these activities begin, the party requesting the detailed cost estimate must agree to pay the costs of these preliminary activities, in addition, NSP requires advance payment of 100% of the rough estimate of these preliminary costs. For this project, a rough estimate of the preliminary engineering costs is $50.580, so NSP will require a deposit of $50,580 advance and your agreement to pay, following completion of the preliminary activities, the balance of costs actually incurred by NSP. If you wish NSP to proceed with the preliminary activities, please execute this letter as provided below and return it to the undersigned with a check in Me amount of $50,580 payable to Northern States Power Company. Upon receipt of the above, NSP will prepare detailed plans and cost estimates for Me entire relocation project, plus any costs associated with the acquisition of new right of way (including costs of easements). The detailed plans and estimates will be forwarded to you for your review and f you desire to proceed with construction, you should not fy NSP in writing. NSP will then prepare a Relocation Agreement covering the terms of such relocation, including, but not limited to. 1. City of Rosemount will pay the actual costs of such relocation. Such actual costs shall include the wages (including all fringe benefits) of all employees of NSP devoting time toward design, engineering, construction, acquisition of right of way, administration or any other activity associated with said relocation project, costs of any necessary right of way, overhead costs associated with surveying, construction and other operations in the field 2/16/2006 Page 2 (including, but not limited to charges for mileage, equipment rental or cost, etc.); and material costs for all items associated with said relocation. 2. Upon execution of the Relocation Agreement, City of Rosemount will pay NSP 100% of the estimated cost of the relocation; the estimated cost will be the cost estimate determined from the preliminary activities discussed earlier in this letter. 3. Upon completion of the relocation project, City of Rosemount will pay NSP any excess of the actual costs over the 100% deposit received by NSP; any overpayment will be refunded by NSP. 4. NSP will reconstruct its transmission lines as quickly as is possible, subject to allowances of extra time for strikes or unforeseen delays in delivery of necessary materials, or other unforeseen contingencies, or because of NSP's need to transfer electrical energy without interruption. 5. City of Rosemount will indemnify and hold NSP harmless from and against all claims, damages, liabilities, costs and expenses (including attorney's fees) arising in connection with the relocation project; except such claims, habilitzes, costs and expenses (including attorney's fees) caused by the negligence ofNorthern States Power Company IJ .k.: h SL..,, It 4 e. �err�d ��.xI6 ,ht C;� 4 to I:.��+.t:� 4 A. tab:� L 14,g",44 Ass,. 1-6.L CLwPke 44G. After execution of the Relocation Agreement, actual field construction will begin as soon as possible, but not until the necessary right of way has been obtained In the event such right of way cannot be obtained, the relocation project will terminate and City of Rosemount will pay NSP for all costs incurred up until such termination. Alternatively, if after reviewing the detailed cost estimate you decide against proceeding with construction, the $50,580 deposit made with the return of this letter will be applied towards the costs of the preliminary activities, any deficiency shall be paid by you to NSP and any excess will be refunded by NSP. The minimum schedule duration for planning, engineering, material procurement and construction for this project work is 9 months. Specific outage restraints and scope of project may require additional tune and planning. If the above terms are acceptable to you, please signify your assent to them by executing the original copy of this letter and returning it to the undersigned along with a check for $50,580 2/16/06 AU H:\ WORD \Hwyletters \PREENGRagreemen.DOC 2/16/2006 Page 3 Scott ,rohnson Highway and Railroad Liaison 414 Nicollet Mall Minneapolis, MN 55401 (612)330 -6078 Attachment cc: Mike Hawkinson City of Rosemount hereby requests NSP to begin preliminary engineering and related activities for the above relocation project and agrees to the terms set out above relating to such activities. Dated By Its 2/16/06 AU H-\ WORD \Hwyletters \PREENGRagreemen.DOC 0 Xcel Energy Requester Name Address Requester Initial Project Information: Andy Brotzler City of Rosemont 2875 145` Street West Rosemont, MN 55068 -4997 Scoping Estimate T.R.# 830B A "Scoping Estimate" is provided by Xcel Energy for the convenience of the requesting entity (Requester). It is produced before engineering design has been completed. Xcel Energy will make every effort to produce a representative estimate that will incorporate as many project- specific factors as possible. However, a Scoping Estimate is frequently based on typical conditions encountered on past construction projects and utilizes historical cost data from other Xcel Energy projects which may or may not be directly comparable Date 1 of 3 Phone (651) 423-4411 FAX (651) 322 -2694 A Requester should not rely solely on a Scoping Estimate and Xcel Energy will not proceed to construction based on this estimate A Scoping Estimate will only give a broad -based estimate of the possible costs that may be incurred during a potential construction project. If a Requester wants a more definitive estimate of the cost of a project, an "Engineering Estimate" should be requested Requester agrees to pay Xcel Energy $50,580 for this Preliminary Engineering Agreement. Name County Rd Hwy 38 State Aid Project SAP208- 105 -01 Location Rosemont MN between Robert Trail South to Akron Avenue Scope A section of 69KV line 0742 Kegan Lake to Wescot line is impacted by the City of Rosemont's hwy 38 work. The transmission line will remain on the adjacent to hwy 38 where it is located now. Between the Kegan Lake Substation and Akron Avenue Xcel Energy will need to lower three structures, bandage nine structures, and replace eleven structures with ten new ones. Proj As 1) Detailed Engineering work, including soil borings and surveying will not start until the Preliminary Engineering Agreement is signed and returned with the appropriate fee. 2) The distribution under build will remain on the structures it is presently on in the new design 3) Every effort will be made to use a wood pole design except for the section of line near the pond. In this area steel poles on drilled pier foundations may be used if soil conditions are poor. 4) It will be necessary to Reconductor this portion of the line due to the age and currant condition of the wire Our currant procedure with this size line is to Reconductor with the smallest standard wire size in only the necessary location of the project 5) Existing shield wire to be transferred to new structures. Preliminary designs are based on plan drawing received by Xcel Energy Any changes to these plans must be communicated to Xcel Energy in a timely manner as the design options could change By signing below Requester agrees that this document sets forth the correct Project Information and Project Assumptions. Estimate of Costs by Xcel Energy Permanent Installation: $562,000 Transfer 7,500 ft of existing Shield wire to new structures 22,500 String 22,500 feet of new conductor 40,500 Install two (2) steel Poles $140,000 Install two (2) drilled pier Foundations 50,000 Install eight (8) tangent wood poles [Str's 1051, 1047, 1036, 1039, 1035, 1033, 1032 and 1031] Install two (2) direct embed unguyed light angle steel poles [str #1037 1038] Install two (2) bisector guyed wood poles and anchors [strs 1053 and 1052]. 2 of 3 168,000 62,000 52,000 Key Activity Lead -time (mo.) Permitting Engineering Design /Mtrl. Req. /Purch /Deliv 10 mos Structural Construction 1 mo Line Construction 1 mo Total Lead -time 12 mo. Requester Removal of eleven (11) existing Wood pole structures 22,000 Contingencies 5 000 Total Indicative Estimate $562,000 Estimated typical engineering Agreement based On 9 °l0 of Estimated project costs $50,580 Preliminary Engineering Agreement based on 100% of Estimated project costs $50,580 Preliminary Schedule: Construction manpower, engineering, and outage availabilities may affect the project lead -times indicated below: A Scoping Estimate must be signed by both parties and dated Each signature below is made contingent upon this document being signed by the other party. Bruce LaMar Name (Printed) Name(Printed) ail Signature Date Signe ure Requester Xcel Energy Name (Printed) Signature Date 3 of 3 Xcel Energy Anthony ..ndro Name(' i nted) Principal Engineer Title Z t'ti -D.6 Date Manager Title