1. Belt Line Project Cost Update May 27, 2014

2. Belt Line – Project Overview Undergrounding of aerial utilities – electrical and telecom Two Phases – Marsh to Midway; Midway to Tollway Phases based on Oncor service sections Bonds Approved – $20 million Bond amounts based on unit costs from Spring Valley undergrounding, increased to account for greater complexity on Belt Line Assumed cost to relocate telecom utilities would be reimbursed Assumed ability to use public right-of-way on north and south sides of Belt Line Road

3. Changes to Concept Design Asphalt overlay upgraded to higher quality material - black rock aggregate; better aesthetics, better contrast with markings Subsurface Utility Exploration (SUE) showed more congestion in north and south rights-of-way than anticipated Necessitated use of left-hand turn lanes in Belt Line – increased traffic control costs, night work, and safety considerations Increased number and length of service duct banks and lateral lines Additional traffic signal upgrades needed; mid-block crossing for connectivity project added

4. Current Market Conditions Large number of construction projects in the Dallas area – IH635, NTTA Chisholm Trail, various TxDOT projects, DFW Airport projects, transit projects Limited contractor availability due to number of ongoing projects Greater competition for personnel and materials – higher prices Small volume project vs. large volume projects –Concrete and asphalt pours, etc Duct banks in left-hand turn lanes increases traffic control, safety, and night work costs Restricted lane closures reduces productivity and leads to higher bid prices Selective in responsive bidders; low bidder must have previous experience with similar projects

5. Belt Line Project Elements Undergrounding utilities: electrical, three telecommunication companies: Oncor, AT&T, Time Warner Cable, Fiberlight Three concrete ducts, service lines, laterals w/ multiple conduits Switch gears, utility pads, manholes to accommodate access for utility companies R.O.W. acquisition for easements and sight visibility corners ADA compliance Sidewalk widening to enhance safety Traffic signal upgrades; new mid-block crossing signal Minor water and storm water infrastructure improvements Restoration of displaced areas: pavement, parking lots, driveways, and landscaping Asphalt overlay, restriping

6. Belt Line Project Timeline February 13, 2013: Design kick-off meeting December 12, 2013: Phase 1 Design 100% Complete February 7, 2014: First request for bids posted March 4, 2014: One bid received; bid rejected; rebid process initiated March 28, 2014: Bid request reissued April 17, 2014: Three bids received April 22, 2014: John Burns Construction lowest responsive bidder May 13, 2014: Council authorized contract with John Burns and Alliance Geotech Group

7. Belt Line Phase II Status – Midway to Tollway 60% design submission now complete 90% design submission due August 1 100% design submission due in November

8. Civil Construction$ 8,820,802 Contingency$ 352,000 Overlay $ 843,000 Land Acquisition$ 930,000 Oncor Reimbursement$ 4,600,000 Telecom Reimbursement$ 903,000 Engineering$ 1,206,000 PM & Construction Inspection$ 362,000 Appraisal fee$ 113,000 Geotech & Materials Testing$ 91,000 Direct Costs (Printing, Adv., Etc.)$ 71,000 Phase I Total $18,291,802 Phase I Summary of Cost

9. Phase II Estimated Costs Civil Construction$ 10,400,000 Construction Contingency$ 1,040,000 Overlay $ 843,000 Land Acquisition$ 930,000 Oncor Reimbursement$ 4,600,000 Telecom Reimbursement$ 903,000 Engineering$ 1,206,000 PM & Construction Inspection$ 362,000 Appraisal fee$ 113,000 Geotech & Materials Testing$ 91,000 Debt Service$ 142,000 Direct Costs (Printing, Adv., Etc.)$ 71,000 Phase II Estimated Costs$ 20,701,000

10. Options / Recommendation 1.Cancel project; do not execute contracts; complete final invoicing for work performed 2.Move forward with Phase I; assess whether to move forward with Phase II when 100% design on Phase II received Recommendation: Option 2 – continue with Phase I and assess whether to proceed when Phase II design is complete