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HomeMy WebLinkAbout6.e. Great River Energy Relocation Agreement for Auburn AvenueI:\City Clerk\Agenda Items\Approved Items\6.e. Great River Energy Relocation Agreement for Auburn Avenue.docx EXECUTIVE SUMMARY City Council Regular Meeting: August 1, 2022 AGENDA ITEM: Great River Energy Relocation Agreement for Auburn Avenue AGENDA SECTION: Consent PREPARED BY: Brian Erickson, PE, City Engineer AGENDA NO. 6.e. ATTACHMENTS: Agreement APPROVED BY: LJM RECOMMENDED ACTION: Motion to Approve a relocation agreement with Great River Energy to relocate a transmission line pole to allow construction of Auburn Avenue. BACKGROUND The construction of Auburn Avenue as part of the Amber Fields development requires the relocation of one of the Great River Energy (GRE) transmission line poles out of the road right of way. Since the pole is located within an easement that GRE had with the University of Minnesota (the previous property owner), the relocation cost is a developer expense. Early in the development for the design of Auburn Avenue it was noted that the existing transmission line pole owned by GRE would need to be relocated. At that time the City of Rosemount started coordination with GRE with the understanding that any relocation costs would be borne by the developer. Now that the preliminary engineering is completed, GRE has provided a Relocation Agreement that requires approval. The estimated cost for the relocation is $85,791 which is reimbursable. Thus, if the actual cost is less, GRE will refund the difference. Similarly, if the cost is more, GRE wsill request additional funds to cover that cost. This cost would be paid from the funding provided for Amber Fields 1st Subdivision. The city attorney has reviewed the agreement and had one comment regarding the signature page which has been corrected. RECOMMENDATION Staff recommends that the City Council approve the relocation agreement Great River Energy. RELOCATION AGREEMENT The City of Rosemount (“City”), a political subdivision of the State of Minnesota and GREAT RIVER ENERGY, agree to the following facts, terms and conditions regarding the described project: The City prepared plans and specifications to issue a contract, for the construction of a road project being identified as Project No. 220-0078, an extension of Auburn Avenue on the south side of CSAH 42 in the City of Rosemount (“the project”); and 1. Certain transmission line facilities (DA-BK) owned and operated by GREAT RIVER ENERGY (“the facilities”) are currently located in part on private property and within the limits of the project where GREAT RIVER ENERGY has property rights; and 2. The City and GREAT RIVER ENERGY have determined that the facilities owned and operated by GREAT RIVER ENERGY need to be relocated. GREAT RIVER ENERGY has requested reimbursement of the actual cost it incurs in relocating GREAT RIVER ENERGY’S facilities and the City agrees to reimburse GREAT RIVER ENERGY for all associated costs. NOW, THEREFORE, IT IS AGREED: ARTICLE 1 - APPLICABLE LAWS, POLICIES AND PROCEDURES THIS AGREEMENT is made in accordance with applicable federal, state and local laws and ordinances, and any other applicable laws or regulations, including any supplements or amendments thereto, and are made a part hereof by reference with the same force and effect as though fully set forth herein. ARTICLE 2 – PLANS RELOCATION PLANS will be provided by GREAT RIVER ENERGY to the City as soon as they are 100% complete, indicating the facilities involved and the location of new facilities, as related to the project. City of Rosemount Project No. 220-0078 GRE Project No. 209360 ARTICLE 3 – ESTIMATE ACTUAL COST BASIS, the estimated cost of the reimbursable work that will be performed by GREAT RIVER ENERGY is $ 85,791.00. This estimate of cost requires the City to pay an advance payment deposit of 100% of the estimated cost to GREAT RIVER ENERGY and is required prior to any construction work starting. The breakdown of estimated cost for the work to be completed and to be paid is as follows: Labor $46,189 Material $15,916 Vehicle & Other $ 2,786 Cosulting/Contracting $ 5,000 Heavy Equipment $15,900 ESTIMATE TOTAL $85,791 TOTAL DUE WITH AGREEMENT $85,791 ARTICLE 4 – RELOCATION All work to relocate the facilities will be coordinated to accommodate the contractor’s base work operations within reason, which GREAT RIVER ENERGY and the City have reviewed and agreed to:  PERMITS. The scope of GREAT RIVER ENERGY’S relocation project may require GREAT RIVER ENERGY to acquire permits from the City, County, MnDOT, Corp of Engineers and/or Minnesota DNR. GREAT RIVER ENERGY will provide one copy of any permit application that is required for the project, including copies of the “proposed” sketches associated with each permit application associated with this project before GREAT RIVER ENERGY begins relocating its facilities.  ABANDONED FACILITIES. GREAT RIVER ENERGY will remove those existing facilities and materials which need to be removed because of project requirements and there shall be no “abandoned facilities”. City of Rosemount Project No. 220-0078 GRE Project No. 209360 ARTICLE 5 - TIME SCHEDULING STARTING DATE. GREAT RIVER ENERGY will relocate in the late summer/early fall of 2022 and construction by the City began in the late spring/early summer of 2022. If GREAT RIVER ENERGY’S relocation is not complete by the late fall of 2022, GREAT RIVER ENERGY will coordinate with the City. All work to relocate the facilities will coordinate with the contractor’s base work operations, which GREAT RIVER ENERGY and the City have reviewed and agreed to. COORDINATION. In the event that GREAT RIVER ENERGY’S construction is not complete by late fall of 2022, GREAT RIVER ENERGY will coordinate all relocation work with the City and the contractor’s operations manager regarding this project, if needed. GREAT RIVER ENERGY will relocate its transmission lines in coordination with the City’s construction, line strikes or unforeseen delays in delivery of necessary materials, or other unforeseen contingencies, or because of GREAT RIVER ENERGY’S need to transfer electrical energy without interruption. If the City requires GREAT RIVER ENERGY to relocate or adjust its electric transmission line for any reason in the future, the City will reimburse GREAT RIVER ENERGY for its costs where the transmission lines are located within GREAT RIVER ENERGY’s easements and inside road right of way per this relocation. ARTICLE 6 – PAYMENT ACTUAL COST BASIS. The City will pay the actual costs of such construction. Such actual costs shall include the wages (including fringe benefits) of all employees of GREAT RIVER ENERGY devoting time toward design, engineering, construction, administration, or any other activity associated with said project; costs of any necessary right of way; overhead costs associated with surveying, construction and other operations in the field (including but not limited to charges for mileage, equipment rental or cost, etc.); and material cost for all items associated with said construction. The City agrees that said costs include overhead charges based on material and labor costs associated with said project. Upon execution of the Relocation Agreement, the City will pay, in advance, $85,791.00 to GREAT RIVER ENERGY, representing 100% of the estimated cost for relocating GREAT RIVER ENERGY’S facilities. If there are any increases anticipated outside the original scope of work, GREAT RIVER ENERGY will notify the City in advance before conducting any additional work not included in the original scope of work and shall amend this Agreement as needed. City of Rosemount Project No. 220-0078 GRE Project No. 209360 Upon completion of the relocation project, GREAT RIVER ENERGY will furnish the City with one original invoice supported by an itemized statement of costs for relocating said GREAT RIVER ENERGY facilities. The City will pay GREAT RIVER ENERGY any excess of the actual costs over the estimate prepared by GREAT RIVER ENERGY, subject to the notification requirement above. Should the initial estimate deposit exceed the cost, any overpayment will be refunded to the City along with interest accrued from the day the deposit was received to the day the overpayment amount is refunded. ARTICLE 7. – INDEMNIFICATION GREAT RIVER ENERGY agree it will defend, indemnify and hold harmless the City, its officers and employees against any and all liability, loss, cost and damages which the City, its officers or employees may hereinafter sustain, incur or be required to pay arising out of the negligent or willful acts or omissions of GREAT RIVER ENERGY out of GREAT RIVER ENERGY’S performance or failure to adequately perform its obligations pursuant to this contract. Subject to exceptions and limitations provided by law, including but not limited to those contained in Minnesota Statutes, Chapter 466 the City agrees it will defend, indemnify and hold harmless GREAT RIVER ENERGY, its officers and employees against any and all liability, loss, cost and damages which GREAT RIVER ENERGY, its officers or employees may hereinafter sustain, incur or be required to pay arising out of the negligent or willful acts or omissions of the City or its contractor and out of the City or its contractor’s performance or failure to adequately perform obligations pursuant to this contract. IN WITNESS WHEREOF, GREAT RIVER ENERGY and the City have caused these presents to be executed by its duly authorized officers. GREAT RIVER ENERGY By: ____________________________ Willam H. Droste Its: Mayor Date: __________________________ CITY OF ROSEMOUNT By: ____________________________ Daniel Lesher Its: Manager, Transmission Permitting and Land Rights. Date: __________________________ By: ____________________________ Erin Fasbender Its: City Clerk Date: __________________________