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MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Steven M. Gohde, Assistant Director of Public Works
DATE: January 21, 2010
RE: Approve of Revised Agreement with Wisconsin Department of Transportation for Utility
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Relocations Required for Reconstruction of US Highway 41: 20 Avenue
BACKGROUND
The Wisconsin Department of Transportation (DOT) is planning to reconstruct USH 41 from State
Highway 26 to Breezewood Lane in Neenah beginning in 2009. USH 41 has reached its capacity and
will be expanded to meet the public needs and improve safety. The construction addressed in this
agreement covers relocation of sanitary sewer on Koeller Street between Menard Dr. and Osborn Ave.
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and to relocate the water main crossing USH 41 just south of 20 Avenue. The revision is required to
cover the additional costs to install a new water main crossing through rock. The City previously awarded
a contract to complete the work, however, due to the rock the encountered the costs would have required
a significant change order. It was determined the project would need to be re-bid to ensure competitive
prices were received.
ANALYSIS
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The DOT will be replacing the 20 Avenue Bridge over USH 41 as part of the overall USH 41 project.
The new bridge conflicts with the existing City water main. The agreement allows for the City to be
reimbursed for 90% of the cost to relocate these existing utilities. The City will pay betterment charges to
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increase the size of the water main. The 20 Ave. Bridge project has received ARRA funding and the
schedule has been accelerated to begin in early 2010. The estimated cost increase is $92,000.
FISCAL IMPACT
This work was not included in the Capital Improvement Program (CIP) Budget. The total agreement
amount is $289,002.50. The DOT will reimburse the City $260,102.25. The cost to the City for items will
be approximately $2,500 for the sanitary sewer and $26,400 for the water main. The agreement covers
items that are eligible for cost sharing. The City will pay an estimated additional cost of approximately
$20,000 for betterment to the water main. Funding may be available in leftover bond funds in the CIP or
may need to come from the Utility Operating funds; adequate funds are available in operations. Due to
the accelerated schedule this project needs to begin construction as soon as possible.
RECOMMENDATIONS
I recommend approval of the Utility Agreement Change Order No. 1.
Respectfully Submitted, Approved:
Steven M. Gohde Mark A. Rohloff
Asst. Director of Public Works City Manager
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