05-28-2014 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117--1600 (651) 766-4029 / FAX: (651) 766-4048 www.ci.little-canada.mn.us MAYOR Bill Blesener COUNCIL Rick Montour John Keis Michael McGraw Shelly Boss ADMINISTRATOR Joel R. I -Janson MEMORANDUM TO: Mayor Blesener & Members of the City Council FROM: Joel Hanson, City Administrator. DATE: May 22, 2014 RE: Final Payment to City of Roseville from Rice Street Phase I Powerlinc Undergrounding Project Attached is an invoice from the City of Roseville representing the final amount we owe them pursuant to the burying of power lines during the first phase of the Rice Street reconstruction project that totals $54,106.50. As you may recall, we agreed to split these costs on a50/50 basis with Roseville. However, the final cost submitted by Xcel Energy, Inc. was substantially higher than the initial estimate. Staff members from both communities have met with Xcel representatives over the past few years in an attempt to document the appropriateness of their charges. Here is a financial summary of the project that ties out to the Roseville invoice: Initial Undergrounding Estimate: $551,259 Cost Overruns: 140,651 Scope Changes (re -burying of line) 136,564 Additional Costs for Traffic Barriers 1,065 Total Project Costs $829,539 Agreed to Billing Revisions: Removal of Scope Changes $136,564 Removal of Added Cost for Traffic Barriers 1,065 Subtotal $137,629 Pinal Amount Due: $691,910 50% Owed by Little Canada: $345,955.00 Less: LC Paid To Xcel 194,669.00 Less: LC Paid to Roseville 97,179.50 Amount Due Roseville: 554,106.50 Staff recommends feels the additional amount associated with cost overruns was satisfactorily addressed by Xcel. With their agreement to remove the other charges, staff feels the amount owed Roseville is appropriate and we recommend payment of same.