TIC 2017-07-25 Item 2E - Agreement - 42nd Avenue South Phase III with Seattle City Light

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City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Transportation and Infrastructure Committee FROM: Bob Giberson, Public Works Director, 46 BY: Cyndy Knighton, Senior Program Manager CC: Mayor Ekberg DATE: July 21, 2017 SUBJECT: 42nd Avenue S Phase III Project No. 99410303 Memorandum of Agreement with Seattle City Light/City of Seattle ISSUE Enter into an agreement with Seattle City Light/City of Seattle (SCL) for the construction cost sharing to underground the electrical distribution system as part of the 42nd Ave S Phase III project. BACKGROUND In February 2012, CH2MHill began design work on a project combining the 42nd Ave S (Southcenter Blvd to S 1601h St) roadway project and the Gilliam Creek culvert replacement project. Originally, the project was not going to include undergrounding of aerial utilities, but an opportunity for cost sharing with SCL came about in 2015. The design was updated to include undergrounding and negotiations between staff at Tukwila and SCL resulted in the attached Memorandum of Agreement. ANALYSIS The costs to underground the electrical distribution system will be split with SCL responsible for 60% of the cost and Tukwila responsible for 40 %. Costs for the aerial conversion are divided into two distinct types of work: Civil Infrastructure costs and Underground Electrical System (UES) costs. Civil costs cover the work to install the physical infrastructure (e.g. vaults and conduit) while UES costs are for the work and materials to pull the cabling through the infrastructure and connect and energize the new system. Agency Civil Cost Underground Electrical System Cost Total SCL( 60%) _..........I. .................. Tukwila 40% _.........................$ 755. 2. 1.. 4........................................._......................... $503,476 ..............................$ 530,, 098......._................................ .........................._.... $353,399 _.... ._................$1,285.3 _2.. $856,875 Total $1,258,690 $883,497 $2,142,187 The costs shown in the above table reflect the MOA language and the results from the actual contractor's bid. The final costs will be adjusted to reflect all related costs incurred for the construction, but the share will be split with the 60/40 cost share ratio. FINANCIAL IMPACT The ultimate cost to Tukwila to underground the electrical system is anticipated to be $856,875 based on the bid proposal and the UES costs projected by SCL. The anticipated reimbursement amount from SCL is $1,285,312. The cost sharing with SCL does not include all costs for the aerial conversion, only those specifically identified in the MOA as shared costs. Trenching and backfill costs are examples of work to be performed entirely at the City's expense. RECOMMENDATION The Council is being asked to authorize the Mayor to execute the Memorandum of Agreement and consider this item at the August 7, 2017 Regular Meeting on the Consent Agenda. Attachments: Memorandum of Agreement by and between the City of Seattle and City of Tukwila Page 2, 2017 CIP w:\pw eng\projects \a- rw & rs projects \42nd ave s phase iii (99410303 94 -rs03) \design \undergrounding \information memo - scl moa 7- 21- 17.docx 37