The Empire parking garage will be constructed on the north side of Montana Avenue between North 27th Street and North Broadway.  The building consumes an entire half-block and the north side of the building will be adjacent to an alley that runs east/west on that block.  There are several overhead and underground utilities that occupy the alley including power, data/telecommunications, and gas.  All overhead and some underground utilities need to be relocated before any construction activity can begin on the Empire parking garage.  The utility companies have agreed to relocate the utilities to a designated underground alley location.  Relocating these utilities underground will allow the existing buildings to be torn down and the new garage constructed while meeting OSHA requirements.  It is necessary to pay the utility companies because this relocation is due to a pending development and not their own initiative.  The utility companies include Montana Dakota Utilities, Northwestern Energy, Optimum, Integra, Mid-Rivers Telecommunications, Zayo Group, and Century Link.  It is necessary to enter into an agreement with these utility companies in order for them to start the relocation.  Only the Northwestern and Optimum agreements require Council approval because their value exceeds the City Administrator's approval authority.

The Council may:

• Approve the agreements with Northwestern Energy and Optimum; or
• Do not approve the agreements which would require the overhead utilities to be temporarily relocated during demolition, redesign of the Empire garage so appropriate setbacks from energized utiltiy lines are accounted for, and possible elimination of the proposed sky bridge between the Empire garage and the Northern Hotel.

The City's price from Northwestern Energy to relocate the power will not exceed $396,000.

The City's price from Optimum to relocate their cable and fiber optic lines is not to exceed $80,000.  Savings can be realized based on finalized utility trench design and CTA is currently working on this.

The agreements with the other utilities will be signed by the City Administrator. 

The funds for the utility relocation are budgeted into the cost for the Empire parking garage budget and are estimated to total $800,000.

Staff recommends that Council approve the agreements with Northwestern Energy and Optimum to relocate the utilites for the construction of the Empire parking garage.