Memorandum

City of Lawrence

Public Works

TO:	Charles F. Soules, P.E., Director of Public Works
FROM:	David P. Cronin, P.E., City Engineer
CC:	Mark Thiel, Assistant Director of Public Works
DATE:	March 29, 2016
RE:	Approve Revised Cost-Sharing Agreement with the HERE Development Project

Background

On August 4, 2015, the City Commission approved a cost-sharing agreement with the HERE Kansas Development to provide for the reconstruction of Mississippi Street and 11th Street adjacent to the project.  This agreement included the City letting the project to bid no later than March 1, 2016 and enter into contract no later than April 15, 2016.

On February 16, 2016, the City of Lawrence received bids for the cost-share street reconstruction project PW1534 - 11th Street and Mississippi Street public improvements.  HERE remitted to the city $411,352.50; its share of the construction cost.  The city share as a result of the bid was $258,439.50.  The preliminary estimate for the city's portion of the street improvements was $150,000 and it was included in the approved 2016 budget.  The city's 50% share of the street improvements is $214,167.00.  Public Works recommends funding the additional $64,167 from the 2016 street maintenance budget.  The city's 50% share of the sanitary sewer improvements is $44,272.50 which will be funded from the Utility Department bonded construction fund per Resolution No. 7107. 

HERE is also responsible for 100% of public improvements for work adjacent to the project that includes: angled parking spaces, storm sewer, sidewalk, traffic calming, landscaping, etc. approved through the development plan process that is included in a separate set of plans (PW1417 HERE Addition). 

Public Improvement Plan Update

To better facilitate both projects that are directly adjacent to each other, city staff and the development group agree that bidding both projects together are mutually beneficial.  Combining the projects under one contract will provide cost savings to both parties, reduce risk of having two contractors and decrease construction time. 

The cost-sharing agreement will be revised (see attached) and rebidding the project will not result in a greater cost share to the city than the original $258,439.50; this amount is reflected in the revised cost-sharing agreement.

At the close of bidding, HERE will be required to remit their remaining cost share for both projects less the amount of $411,352.50 the city has already secured.

Construction Sequencing

Construction could begin in late April/early May to complete critical public infrastructure to serve the building including storm sewer that will connect to their roof drainage system.  Any work prior to May 16, 2016 (the day after KU commencement) will require the city to approve a temporary right-of-way permit that includes the contractor maintaining traffic on Mississippi Street.  Beginning May 16, 2016 the contractor will proceed with construction of all public improvements to be complete by August 12, 2016. 

Tentative Project Schedule

Advertise for bids: March 30, 2016

Bid date: April 12, 2016

Award Contract: April 19, 2016

Anticipated Start Date: May 16, 2016

Project Completion Date: August 12, 2016

Action Request

Authorize the Mayor to approve the revised cost-sharing agreement with the HERE development project.