The Montana Department of Transportation (MDT) will be constructing a new roundabout at Zimmerman Trail and Highway 3.  As part of the construction, the City has requested that a new water main be installed under the new roundabout for future expansion of the City’s water system.  MDT’s policy is to only participate in costs when an existing utility line is in conflict with the construction of the roundabout.  In this case, the water main is a new utility line, so the cost for the water main is borne solely by the City.  This water main will be “dry” meaning it will not be used until such time as it is needed which will save trenching through the new roundabout in the future.  MDT requires that the City Council approve a utility agreement before it will construct the water line as part of the project.

City Council may:

• Approve the utility agreement, or;
• Do not approve the agreement resulting in delaying the intersection project or causing the new water line to not be installed as part of the project.

The costs for the water main is estimated at $135,454.33 and will be paid for using water revenues. The final cost of the water main may be different than the estimate depending on the bids received by MDT for this construction.

Staff recommends that the City Council approve the utility agreement with MDT.