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REQUEST FOR COUNCIL ACTION <br />Date: April 11, 2022 <br />Item No.: 10.f <br />Department Approval City Manager Approval <br />Item Description: Approve Cooperative Agreement with Xcel Energy for County Road B <br />Improvements <br />1 B ACKGROUND <br />2 As part of the County Road B Watermain project between Merrill Street and Lexington Avenue, the <br />3 City has been working to develop a cost share agreement with Xcel Energy since both parties are <br />4 doing utility work in the same location. Since both parties are excavating for their respective utility, <br />5 the removal and restoration limits overlap. To save costs and prevent each agency from doing <br />6 duplicate work, the work of each individual project was defined and each party will charge the other <br />7 for certain items on an even split. <br />8 The attached agreement (Attachment A) details which work each party will do and an estimated cost <br />9 for each party. For the City’s County Road B project, the City will do the removals, but will pass <br />10 half the costs to Xcel Energy estimated at $57,492.25. This would reduce the County Road B <br />11 Contract cost by that amount. <br />12 Once the City has the watermain in, Xcel Energy will move to the site, replace the gas main and then <br />13 perform street restoration. For Xcel Energy’s gas project, they will perform the restoration of the <br />14 aggregate and pavement and pass half the costs to the City estimated at $160,372.67. Overall the <br />15 City’s project costs for County Road B would be estimated at $688,788.92. <br />16 The City project is anticipated to be completed by the end of July. Xcel Energy will complete the <br />17 restoration of County Road B by the end of September. <br />18 P OLICY O BJECTIVE <br />19 It has been the City’s policy to manage and maintain City infrastructure which achieves the lowest <br />20 overall cost to the City over time. This agreement is consistent with those goals. <br />21 F INANCIAL I MPACTS <br />22 The overall project costs for the County Road B watermain is $692,885.16. Based on the Xcel <br />23 Energy agreement, the City’s anticipated cost share for the City is $160,372.67. For the County <br />24 Road B watermain contract, the City’s cost is estimated to be $532,512.49. The City’s portion of the <br />25 costs would be paid using the Water Utility Fund. <br />CityXcel <br />County Rd B Watermain Contract <br />$532,512.49$57,492.25 <br />Xcel Cost Share $160,372.67 <br />Total Estimated Cost <br />$692,885.16 <br />Page 1 of 2 <br /> <br />