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HomeMy WebLinkAboutDMCC Resolution No. 188-2025 (Authorizing Use of Unallocated Link BRT Project Contingency Funding)DESTINATION MEDICAL CENTER CORPORATION RESOLUTION NO. 188-2025 A RESOLUTION AUTHORIZING USE OF UNALLOCATED LINK BRT PROJECT CONTINGENCY FUNDING The following Resolution was offered by Paul Williams, seconded by James Campbell. BACKGROUND RECITALS A. Pursuant to Resolution No. 156-2024, the Destination Medical Center Corporation (the “DMCC”) approved general contingency funding (the “Contingency Funding”) for the Link Bus Rapid Transit project and criteria for the preservation and use, approval, and reporting of the Contingency Funding (the “Original BRT Contingency Criteria”). B. Subsequently, the DMCC approved an increase in the Contingency Funding pursuant to Resolution No. 174-2025 and approved revisions to the Original BRT Contingency Criteria (the “BRT Contingency Criteria”) pursuant to Resolution No. 181-2025. C. The Destination Medical Center Economic Development Agency (the “EDA”) and the City of Rochester (the “City”) staff recommend authorization for the use of unallocated Contingency Funding, pursuant to the BRT Contingency Criteria, in such amount and subject to the requirements set forth in the change order request attached hereto as Exhibit A (the “Contingency Funding Use Request”). D. The Staff of the City and the EDA requests that the DMCC approve the Contingency Funding Use Request. RESOLUTION NOW, THEREFORE, BE IT RESOLVED, by the DMCC Board of Directors, that the DMCC approve the Contingency Funding Use Request based on the following conditions: 1. Use of the Contingency Funding shall be in strict compliance with all requirements set forth in the BRT Contingency Criteria. 2. The scope of approval of the Contingency Funding Use Request is limited to that set forth in the Contingency Funding Use Request attached hereto as Exhibit A. 3. Any modification to the Contingency Funding Use Request will be subject to subsequent approval by the DMCC. BE IT FURTHER RESOLVED, that the Chair or the Treasurer of the DMCC is authorized and directed to transmit this Resolution to the City and to take such actions as are necessary and appropriate to effectuate the findings and approvals of this Resolution. 41189380v1 The question was on the adoption of the Resolution and there were 8 YEAS and 0 NAYS, as follows: BOARD OF DIRECTORS Destination Medical Center Corporation YEA NAY OTHER Douglas M. Baker, Jr. X Kristin Beckmann X James R. Campbell X Kim Norton X Randy Schubring X Mark Thein X Pamela Wheelock X Paul D. Williams X RESOLUTION ADOPTED on December 10, 2025. ATTEST: Pamela Wheelock, Chair Destination Medical Center Corporation EXHIBIT A EXHIBIT A November 12, 2025 TO: Destination Medical Center Corporation From: Patrick Seeb, Executive Director, DMC Economic Development Agency Cindy Steinhauser, Deputy Administrator, City of Rochester RE: Approving Release of Unallocated Contingency Funding According to the BRT Contingency Use Criteria Request of the Board of Directors: It is requested that the Board authorize the use of $975,000 from unallocated contingency within the DMC County and State Aid Transit Funds and the Federal Transit Administration Small Starts Grant, in accordance with the approved LINK BRT contingency use guidelines. Approval of this change order will permit the contractor to proceed with construction activities under winter work conditions, thereby improving the overall project schedule through modifications to the construction means and methods for the Saint Mary’s Transit Center. This authorization will help maintain project momentum and mitigate potential schedule delays and cost increases associated with extended construction timelines. Background: The LINK BRT system is a transformative transportation investment designed to enhance mobility, reduce congestion, and support the continued growth of Rochester. The Volume C – Platforms and Tunnel contract was executed on July 21, 2025, in the amount of $75,339,925. LINK BRT contractor Elcor Construction has been working for the past several months along 2nd Street SW in front of Saint Marys Hospital, completing utility and roadway construction. The project is now at a stage where tunnel construction could proceed. A construction duration of approximately 18 months is required to complete the Saint Marys Transit Center, however, two constraints are preventing advancement. Work on the north vertical circulator is paused pending the acquisition of additional temporary shoring and excavation easements. Work on the south vertical circulator is paused due to a recently identified conflict requiring the relocation of high- voltage underground electrical lines. For reference, the current schedule anticipates substantial construction completion by June 17, 2027, revenue service commencement on August 19, 2027, and FTA grant closeout by March 19, 2028. Change Order Justification: The Contractor is now prepared to start work on the pedestrian tunnel. The following two scenarios provided schedule options to advance the project. Scenario 1: Continue construction according to current means and methods, no change order authorization to modify means and methods or perform winter work. The following are considerations for continuing under Scenario 1. • Construction of the Saint Marys Transit Center would not begin until April 1, 2026. The 120-day delay in the start of work is due to the need to use the eminent domain process to obtain the additional required temporary easements. • This would push completion to October 1, 2027. System start-up and compliance testing would also be delayed, with final commissioning and commencement of service not occurring until November 1, 2027. • The delayed service commencement would, in turn, postpone Final Project Closeout of the FTA Grant to May 2028, requiring an amendment to extend the project schedule under the Small Starts Grant Agreement with the Federal Transit Administration. • Scenario 1 would also extend the closure of 2nd Street SW by approximately 16 weeks, as both the north and south vertical circulators would need to be constructed concurrently to minimize further schedule impacts. • Performing construction on both the north and south vertical circulators concurrently would interfere with work at the 2nd Street SW and 14th Avenue SW intersection, restrict available traffic lanes, and negatively affect emergency room access from the east. Scenario 2: Allow work on Saint Marys Transit Center to proceed immediately without delay by authorizing a change order to fund winter work conditions ($350,000) and modifications to construction means and methods ($625,000). • The change order funding will be used to modify the earth shoring and retention system by enabling multiple installation setups, eliminating the need for easements to construct the north vertical circulator, and include provisions for heated and enclosed work areas during winter. • The contractor will maintaining one lane of traffic in each direction on 2nd Street SW and keeping a pedestrian route open on the south side of the roadway throughout the winter and will maintain at least one lane of traffic in one direction on 2nd Street SW at all times, ensuring improved emergency room access from the east. • In May 2026, additional temporary pavement will be placed over the newly completed tunnel segment to shift vehicle and pedestrian routes to the north half of 2nd Street SW. The contractor will then begin construction of the south vertical circulator building and the southern half of the tunnel. • The construction duration for the Saint Marys Transit Center under this scenario is 18 months, beginning December 1, 2025, and concluding June 1, 2026. This schedule allows for system start-up and compliance testing to occur as originally planned, maintaining the operational service date and supporting the Link BRT opening in Q2 2027. The City believes proceeding with Scenario 2 is the best option to maintain the project’s overall schedule, provide better access to the traveling public, and improve emergency room access from the east and therefore is recommending approval of this change order. This would increase the total project cost to approximately $176.1 million including previously approved change orders.