HomeMy WebLinkAboutA018 - Council Action Form dated May 14, 2013 ITEM # 30
DATE 05-14-13
COUNCIL ACTION FORM
SUBJECT: 2012/13 WEST LINCOLN WAY INTERSECTION IMPROVEMENTS
(LINCOLN WAY AND DOTSON DRIVE)
BACKGROUND:
This project is for constructing turn lanes and installing traffic signals at the Dotson
Drive/Lincoln Way intersection. A traffic impact report for South Fork Subdivision
justified these improvements. Increased traffic flow from South Fork Subdivision
necessitates left-turn lanes at the Lincoln Way approaches to the Dotson Drive
intersection to accommodate heavy-turning movements. Turn lanes on Lincoln Way will
mitigate left-turning, rear-end, and right-angle traffic accidents at this intersection.
On Tuesday, February 12, 2013, City Council awarded the construction contract to
Manatt's, Inc., for $549,699. An existing agreement (approved by Council on December
18, 2012) requires the Developer and the City to share equally in the construction cost
of these improvements. A Traffic Safety Improvement Grant of $500,000 has been
awarded by the Iowa Department of Transportation to be used toward construction of
this project. With the low bid of $549,699, this leaves approximately $49,700 to be
split equally between the City ($24,850) and the Developer ($24,850), in accordance
with the agreement. The Developer's share had previously been secured with a Letter
of Credit (LOC) in the amount of $125,000 from Pinnacle Properties Ames, LLC.
Considering the Developer's share of $24,850, along with a contingency of
approximately 20%, the noted LOC may be reduced to $30,000.
ALTERNATIVES:
1. Reduce the LOC from Pinnacle Properties Ames, LLC to $30,000.
2. Retain the current LOC in the amount of $125,000.
MANAGER'S RECOMMENDED ACTION:
The Developer currently has a LOC on file with the City in the amount of $125,000.
Based on favorable bids, the Developer's current obligation is projected at just
under $25,000, making the current LOC excessive. Applying a contingency of
approximately 20%, the LOC may be reduced to $30,000. The noted agreement
provides that for any unforeseen reason the final project amount comes in over this
amount, the Developer must still reimburse the City for their actual 50% share,
beyond the $500,000 grant amount.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, thereby reducing the LOC from Pinnacle Properties Ames, LLC to
$30,000.