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112 Cityof <br />Om Louisville <br />COLORADO • SINCE 1878 <br />CITY COUNCIL COMMUNICATION <br />AGENDA ITEM 2 <br />SUBJECT: <br />DISCUSSION/DIRECTION — UNDERPASS COST ESTIMATES & <br />PRIORITIZATION, FINANCIAL CONSIDERATIONS AND <br />POSSIBLE BALLOT LANGUAGE FOR POTENTIAL <br />TRANSPORTATION TAX <br />DATE: JUNE 17, 2021 <br />PRESENTED BY: HEATHER BALSER, CITY MANAGER <br />MEGAN DAVIS, DEPUTY CITY MANAGER <br />KEVIN WATSON, FINANCE DIRECTOR <br />KURT KOWAR, PUBLIC WORKS AND UTILITIES DIRECTOR <br />KATHLEEN KELLY, CITY ATTORNEY <br />KIM CRAWFORD WITH BUTLER SNOW, CITY'S BOND <br />COUNSEL <br />JIM MANIRE WITH HILLTOP SECURITIES, CITY'S FINANCIAL <br />ADVISOR <br />SUMMARY: <br />UNDERPASS COST ESTIMATES AND PRIORITIZATION: <br />At the June 1 City Council meeting staff provided design concepts for City Council <br />review and direction regarding 6 underpasses (see linked packet information). <br />Staff is continuing to complete preliminary designs and due to tight timelines staff will <br />not present further conceptual cost estimates until the evening of the June 17 special <br />City Council meeting. Staff plans to provide information a few hours prior to that meeting <br />for City Council and public review. <br />Previously, high level conceptual designs have assumed an overall figure of $ 8 million <br />per underpass. City Council is considering six underpasses, thus $50 million has been <br />the discussed dollar figure to complete all six. Staff has received questions regarding <br />appropriate contingency levels for such projects. At a high level, staff will initially be <br />using a 50% contingency to estimate these underpass designs. Such a high <br />contingency is conservative and/or appropriate for the speed at which the designs are <br />moving and the early conceptual nature of the engineering. This is in line with industry <br />standard Class 4, Cost Estimate Classification System guidelines (Figure 1). <br />Historical review of City project Capital Planning indicates that costs will vary <br />dramatically from initial concepts to final construction costs and generally always <br />increase (Attachment 2). <br />In addition, the current construction climate is very dynamic given supply chain <br />shortages, high growth demand impacting construction materials and labor, and overall <br />contractor availability in the region. Historical bids provide context that costs from low to <br />CITY COUNCIL COMMUNICATION <br />2 <br />