Agenda - Council - 05/24/2016 - Laserfiche WebLink

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The low bid submitted by Douglas -Kerr Underground, LLC of Mora, Minnesota, is in the amount of $1,568,162.65. After adding indirect costs for administrative (6%), engineering (15%), finance (1%), and legal (1%) costs, the total project cost is $1,928,840.06 based on the low bid. The improvements are proposed to be funded using a combination of street reconstruction bond proceeds, special assessments to benefiting properties, street reconstruction funds, and stormwater utility funds as follows; • Street reconstruction bonds = $1,424,384.71 (includes special assessment portion of project costs) • Special assessments = $419,705 (25% of eligible project costs per assessment policy) • Street reconstruction funds = $203,358.75 (current fund balance is approximately $400,000) • Stormwater utility funds = $197,275.45 Special assessments are based on eligible project costs which do not include costs related to oversizing the existing street, either in width or pavement thickness. Based on bid prices, staff has estimated oversizing costs for this project in the amount of $203,358.75 which includes costs for widening the street by 2 feet, and for increasing the structural capacity of the pavement to meet State Aid standards. The estimated assessable project cost based on bid prices is therefore $1,678,708.80 which would result in individual assessments of $6,457 per parcel, assuming final project costs are equal to bid prices, and that final assessments are approved by the City Council in the amount of 25% of final eligible construction costs. This represents nearly a 30% reduction in special assessments from the preliminarily approved assessment amount of $9,150 per parcel. Staff will order a special benefit consultation report for this project upon award of construction contract to provide proof of benefit for the Assessment Hearing scheduled for October l lth. Recommendation: City staff recommends alternative # 1. Action: Adopt Resolution #16-05-097 accepting bids and awarding a contract for Improvement Project #16-00 Division C, Andrie Street and 164th Lane Reconstruction. Attachments Resolution 16 05 097 Plan Title Sheet North Trail Corridor Master Park Trail Plan Form Review Inbox Reviewed By Date Diana Lund Diana Lund 05/19/2016 07:14 AM Kurt Ulrich Kurt Ulrich 05/19/2016 09:05 AM Form Started By: Bruce Westby Started On: 05/17/2016 09:26 AM Final Approval Date: 05/19/2016