Memorandum

City of Lawrence

Public Works Department

TO:	Dave Corliss, City Manager
FROM:	Dena Mezger, Asst. Public Works Director
CC:	Charles Soules, Public Works Director
Date:	November 7, 2007
RE:	November 13, 2007 Agenda Item

Please include the following item on the City Commission consent agenda for consideration at the November 13, 2007 meeting:

Approval of a reimbursement agreement in the amount of $106,400 with Magellan Pipeline for gas line relocation at the airport to accommodate improvements to the runway safety area.  This agreement provides for reimbursement of cost to the gas pipeline company for relocation of facilities on the Lawrence Municipal Airport property in order to complete the runway safety area improvement project.

Project History. The runway safety area grading construction contract with Hamms, Inc. for $443,678 was approved by City Commission on August 23, 2007. At that same meeting the Commission approved the FAA grant agreement in the amount of $966,254 for the project. The grant amount includes $488,400 for relocation of utilities. Two gas lines, one belonging to Magellan and the other to Southern Star, must be relocated in order to complete the grading project.

Proposed Project Details. Attached to the reimbursement agreement, and referenced as Exhibit D, is an encroachment agreement that revises the location of Magellan’s easement to center on the new location. Approving the reimbursement agreement also approves the new encroachment agreement.

Proposed Project Status.  The grading work is on hold until the gas lines can be relocated. Magellan is ready to begin work as soon as this agreement is approved. Southern Star has also submitted a draft reimbursement agreement that will be submitted to City Commission for approval soon. FAA has reviewed and approved the reimbursement agreement. (See attached FAA letter.)

Project Funding. The relocation costs are covered by the FAA grant. Magellan’s estimate of the costs is $106,400.  Up to $155,400 is approved by FAA.

Action Request. Public Works staff requests approval of the reimbursement agreement.

Respectfully Submitted,

Dena E. Mezger, P.E.

Asst. Public Works Director