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Additional Required Improvements <br />During construction it was discovered that five areas of Sunwood Drive were constructed with less than 2-inches of <br />bituminous pavement. Therefore, approximately 1'/2" of the existing aggregate base was removed in each area and <br />approximately 1'/2" of base bituminous pavement was placed on top of the remaining compacted aggregate base to <br />provide a minimum of 3'/2" of bituminous pavement along this segment of Sunwood Drive. The additional <br />pavement tonnage required to complete this work will be paid through the existing bituminous pavement pay item. <br />During construction it was also discovered that an additional 580 linear feet of concrete curb and gutter needed to be <br />removed and replaced due to significant cracking and failing joints. Such damage allows stormwater runoff to <br />infiltrate through the curb and into the pavement base and subgrade thereby weakening the pavement base and <br />increasing the potential for damage due to freeze -thaw cycles. This additional footage of curb and gutter removal <br />and replacement is well in excess of 25% of the plan quantity so staff negotiated a linear foot cost with the <br />contractor for the removal and replacement of this additional curb and gutter to be considered by Council in a <br />separate case this evening. <br />It was also discovered during construction that one catch basin needed to be reconstructed by hand using block and <br />mortar instead of using a prefabricated concrete catch basin as specified in the plans. This was due to the existing <br />elevations and geometry of the storm sewer pipes. This additional work is also being considered by Council in a <br />separate case this evening. <br />Notification: <br />Anoka County requires that assessments be certified to the County Auditor by November 30th for collection on next <br />year's taxes. This deadline will be met by conducting the Assessment Hearing at the October 25th City Council <br />meeting, which will also allow adequate time for the publication and mailing of notices. <br />Following Council approval, an Assessment Hearing Notice will be published in the City's official newspaper on <br />Friday, September 30th, and Assessment Hearing Notices will be mailed to all benefiting property owners as <br />required per Minnesota State Statute Chapter 429. <br />Observations/Alternatives: <br />Observations: <br />At the time this case was prepared construction was substantially complete. Construction should be completed by <br />the time the Assessment Hearing is conducted on October 25th. <br />Alternatives: <br />Alternative Action #1 — Motion to adopt Resolution #16-09-174 ordering the preparation of an assessment roll and <br />calling for an Assessment Hearing for 2016 Mill and Overlay Improvements; Improvement Project 16-00 Division <br />B on October 25th, 2016. <br />Alternative Action #2 — Motion to deny adoption of Resolution #16-09-174 at this time. <br />Funding Source: <br />This improvement project was included in the City's 5-year Capital Improvement Plan for construction in 2016 and <br />was proposed to be funded using a combination of street reconstruction and overlay bond funds, special <br />assessments to benefiting properties, and stormwater utility funds. <br />The contract amount for this project (Valley Paving, Inc.) is $179,196.21 which is $83,665.79 below the engineer's <br />construction cost estimate of $262,862.00. Final project costs, which will include actual construction costs and <br />indirect costs covering administrative, engineering, finance and legal fees, are estimated to be $232,783.68 using <br />14% of construction costs for and indirect cost estimate. This estimated cost assumes Council approval of Change <br />Order #1 and no significant quantity revisions or other change orders prior to completion of construction. <br />Per the City's adopted Special Assessments Policy, special assessments amounting to 25% of eligible street overlay <br />project costs are intended to fund a portion of overlay projects. However, since only three properties have direct <br />