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HomeMy WebLinkAbout~Master - Redirection of CIP funding for MEC Interconneciton 161-kV Transmission Line RESOLUTION NO. 12-561 RESOLUTION AUTHORIZING REDIRECTION OF CIP FUNDING FOR MEC INTERCONNECTION 161-kV TRANSMISSION LINE FOR THE CITY OF AMES,IOWA WHEREAS,on March 27,2012,the Council approved preliminary plans and specifications for the MEC Interconnection 161-kV Transmission Line construction; and, WHEREAS,the project is to construct a 161-kV line from Ames' Plant Substation to Mid- American Energy Company's (MEC) 161-kV switching station northeast of Ankeny; and, WHEREAS,bid documents were issued to 39 potential bidders and on July 11,2012,5 bids were received; and, WHEREAS, Electric Services staff reviewed the bids and concluded that the apparent low bid submitted by Hooper Corporation of Madison, Wisconsin, in the amount of$9,054,395.90, inclusive of sales tax, is acceptable; and, WHEREAS,the Engineer's estimate of the total installed cost of this project is$8,300,000; and, WHEREAS, staff discussed the bids with DGR,the engineering consultant,to determine if it would be in the best interest to rebid the project, and based on its assessment of current trends, material and labor costs continue to rise; and, WHEREAS, the Council should note that from an analysis of bid units, the increased cost is primarily the result of material cost escalations that have occurred in steel and wood-laminate poles since the time that the engineer's estimate was prepared in March 2012; and, WHEREAS, the approved FY 2012/13 Capital Improvements Plan budget for this project totaled $8,566,521, however, easement payments, increased legal and engineering professional services costs due to challenges to the order, and hearing costs totaling$368,769 have reduced the available project funds to $8,197,752; and, WHEREAS, the contract amount totals $9,577,665.90, creating a shortfall of$1,379,914; and, WHEREAS, to cover this shortfall, staff is recommending that the FY 2012/13 Vet Med Feeder project budgeted at $300,000, and the FY 2012/13 69-kV Transmission Reconstruction project budgeted at $250,000 be canceled and the savings directed to this project; and, WHEREAS, in addition, staff is suggesting that$829,914 from the Unit No. 8 Blading and Diaphragms/Parts CIP be used for this project,and this action will still leave$643,999 for additional parts, if needed for the Unit No. 8 Overhaul Project; and, WHEREAS, it is important to note there are several additional miscellaneous costs anticipated for this project for which staff may have to come back to Council for additional funding if needed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that authorization to redirect CIP Funding from the aforementioned projects in the amounts as mentioned for the MEC Interconnection 161-kV Transmission Line Project is hereby approved. ADOPTED THIS 23rd day of October, 2012. Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Davis Seconded by: Wacha Voting aye: Davis, Goodman, Larson, Orazem, Szopinski, Wacha Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 23' day of October, 2012.