Agenda - Council - 02/12/2018 - Laserfiche WebLink

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Funding Source: The engineer's opinion of probable project costs for the proposed improvements based on final plans and specifications is $292,308.27. This cost includes 23% indirect costs for administrative, engineering, finance and legal costs. By comparison, the Feasibility Report estimated project costs at $301,738.31. The improvements are proposed to be funded using a combination of Street Reconstruction and Overlay Program bond funds ($217,755.20), Stormwater Utility Funds ($1,476), and special assessments to benefitting properties ($73,077.07). Forty-four (44) residential parcels use these streets to access their properties and will therefore receive special benefit from the improvements. Staff proposes to assess up to 25-percent of eligible project costs equally across these 44 parcels using the "per lot" assessment method. This results in proposed assessments of $1,660.84 per parcel per the current cost estimate. Last November, assessments were preliminarily adopted in the amount of $1,714.42 per parcel. Final assessment amounts will be proposed based on actual construction costs and the findings of the special benefit consultation report. Staff will request Council authorization to order a special benefit consultation report for this project in accordance with the City's Special Assessments Policy at the time Council awards a construction contract. The purpose of this report is to help verify that assessments will not exceed the benefit to assessed parcels due to the improvements. Staff proposes to let this project for bids at the same time as the Stanhope Terrace Street Reconstructions project with the intent of realizing cost savings due to economies of scale. Due to their close proximity, contractors will likely bid on both projects, allowing for lower unit bid prices due to increased quantities. Recommendation: Staff recommends Alternative # 1. This will allow the project to be constructed as part of the 2018 Street Maintenance Program, and will allow for the use of special assessments to pay for up to 25% of eligible project costs per the applicable provisions of Chapter 8 of the City Charter, the City's Special Assessments Policy, and Minnesota Statute Chapter 429. Action: Motion to adopt Resolution #18-034 approving plans and specifications and authorizing advertisements for bids for River's Bend Street Reconstructions, Improvement Project #17-02. Attachments Resolution 18-034 Plans Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 02/08/2018 03:10 PM Form Started By: Bruce Westby Started On: 02/02/2018 02:09 PM Final Approval Date: 02/08/2018