The new library building will be constructed along 6th Avenue North between North Broadway and North 29th Street.  The building will stretch over the existing alley that runs in a north/south direction between the two streets.  There are a number of overhead and underground utilities that occupy the alley including power, communication cable, fiber-optics, and gas.  All of the utilities need to be relocated for the construction of the library.  The utility companies have agreed to relocate the utilities to North 29th Street and have given the City a cost to do this work.  It is necessary to pay the utility companies due to the fact that they occupy an existing right of way that will be vacated.  The utility companies include Montana Dakota Utilities, Northwestern Energy, Optimum, and Integra.  It is necessary to enter into an agreement with the utility companies in order for them to start the relocation.  The project will relocate the lines to 7th Avenue North, place all of them underground and the Billings Clinic has agreed to participate in their proportionate share of the relocation cost.

The Council may:

• Approve the agreements with Northwestern Energy and MDU; or
• Do not approve the agreements which would require a redesign of the library building.

The City's price from Northwestern Energy to relocate the power is $170,055.69.  The MDU price is $192/lf for approximately 890 feet for a total of $170,880.00.  MDU has agreed to perform all of the trenching for itself and for all of the other utility companies.  The City's cost for Integra to relocate is $30,393.55.  The City's cost for Optimum is approximately $5,800.00.  The agreement with Integra and Optimum will be signed by the City Administrator.  The funds for the utility relocation are budgeted into the cost for the library construction project.

Staff recommends that Council approve the agreements with Northwestern Energy and MDU to relocate the utilities for the construction of the new library.