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 27, 2007
RE:	December 4, 2007 Agenda Item

Please include the following item on the City Commission consent agenda for consideration at the December 4, 2007 meeting:

Approval of a Relocation and Reimbursement Agreement in the amount of $333,000 with Southern Star 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.  A new easement is also required for the relocated facility.

Project History. The runway safety area grading construction contract with Hamm’s, 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. An agreement with Magellan was approved by the City Commission on November 13, 2007, and work is underway.

Proposed Project Details. Attached is a copy of the Reimbursement Agreement, and the approval letter from FAA. In addition, a copy of the easement for the relocated pipeline is attached. Approval of the Relocation and Reimbursement agreement will also approve the easement.

Proposed Project Status.  The grading work is on hold until the gas lines can be relocated. Southern Star will begin work once the agreement is approved and payment is made.

Project Funding. The relocation costs are covered by the FAA grant. Southern Star’s estimate of the costs is $333,000, which is the amount approved by FAA. In the event the costs are higher, FAA allows for a 15% contingency for the grant which can be used if needed.

Action Request. Public Works staff requests approval of the Relocation and Reimbursement Agreement and the easement.

Respectfully Submitted,

Dena E. Mezger, P.E.

Asst. Public Works Director