On February 11, 2013, City Council awarded W.O. 12-05, Five Mile Lift Station to Western Municipal Construction, Inc. (WMC). The costs to have Northwestern Energy (NWE) run electric and Montana-Dakota Utilities (MDU) run gas a distance of almost 1300 feet to the project site were not included in WMCs contract. The City has received a $56,699.45 invoice from NWE and a $6,579.00 estimate from MDU to have the work done. NWE would install new underground 3-phase electrical lines and a transformer and remove old electrical lines and transformer equipment from the old lift station site. MDU would install a new 2-inch gas service line. In addition to installing the new utilities, the City needs to grant utility easements within City property to both MDU and NWE.

The Council may:

• Pay $56,699.45 to NWE and $6,579.00 to MDU for installation charges and grant the NWE and MDU utility easements; or,
• Not pay the NWE and MDU installation charges and not grant the utility easements.

If the City does not pay the NWE and MDU installation charges and grant the utility easements, the City will be unable to move forward on constructing the new Five Mile Lift Station. If this projected is not constructed, the present lift station will continue to deteriorate, experience further operation and maintenance problems, and future flows will eventually exceed capacity. The wet well is highly corroded and suffering from infiltration and likely exfiltration problems. Pumping capacity of the existing station is stressed to handle the current service population.

NWE has submitted a $56,699.45 invoice and MDU has submitted a $6,579.00 estimate to the City to have the new electrical and gas facilities installed and the old facilities removed.  No new charges will apply to drawing-up and executing easement documents for either utility.  MDU will submit an invoice after the work is complete based on actual costs of work they perform and will be within the level that can be signed by the City Administrator.  Funding for the project was budgeted in FY12 and FY13 and the source is wastewater revenues.  A summary for the funding is as follows:

FY12 Project Budget	$3,413,513.00
Previously Encumbered	$2,824,292.00
NWE and MDU Charges	$63,278.45
Budget Remaining	$525,942.55

Staff recommends that Council pay the $56,699.45 NWE and $6,579.00 MDU installation charges and grant the NWE and MDU Utility Easements.