DATE: June 25, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
David Parker, City Engineer/CIP Executive
Paul Holzen, Director of Engineering
William Banks, Staff Engineer 1
SUBJECT:
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Consideration of a Utility Relocation Agreement (COF Contract No. 2015-0043) with ATMOS Energy Corporation for the Hillsboro Road Improvements Project Phase 2, from Independence Square to Mack Hatcher Parkway, in the estimated amount of $193,000.00 (06-25-15 CIC)
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning a utility relocation agreement (COF Contract No. 2015-0043) with ATMOS Energy Corporation for the Hillsboro Road Improvements Project Phase 2, Independence Square to Mack Hatcher Parkway.
Background
During development of the final construction plans for Hillsboro Road Phase 2, multiple utility coordination meetings with ATMOS Energy were held. Because of the large amount of utility relocations required to construct the Hillsboro Road Phase 2 Project, existing ATMOS gas lines must also be relocated to eliminate conflicts with the proposed City work.
Per this utility relocation agreement, it is in the mutual interest of both the City and ATMOS Energy Corporation that the ATMOS gas line utility relocation work be performed as part of the City’s upcoming Hillsboro Road Phase 2 Project’s construction contract, COF Contract No. 2015-0002. The City will show the proposed relocation of the ATMOS facilities in the Hillsboro Road Phase 2 Project construction plans as project cost items. The City will be responsible for having its contractor or subcontractor perform the ATMOS utility relocation work in accordance with the City’s construction contract. ATMOS agrees to fully reimburse the City for their actual construction cost.
Financial Impact
The Utility has furnished the City with final utility relocation construction plans and a construction cost estimate. The estimated total ATMOS relocation cost is in the amount of 193,000.00. ATMOS will make a lump sum payment to the City for the estimated amount, prior to bidding. In the event said ATMOS payment exceeds the aggregate amount of ATMOS’ construction charges, the difference will be refunded to them. In the event ATMOS’ construction costs exceed the deposit, they agree to reimburse the City for the additional amount.
All costs will be initially paid for out of the Capital Improvement Budget for Hillsboro Road Improvements, with ATMOS reimbursing the actual cost of the gas line relocation to the City.
Recommendation
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Staff recommends approval of the utility relocation agreement (COF Contract No. 2015-0043) with ATMOS Energy Corporation.