Agenda - Council - 03/27/2018 - Laserfiche WebLink

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Stanhope Terrace Street Reconstructions, Improvement Project #18-00. Alternative #2 — Motion to deny adoption of Resolution #18-059 at this time. Funding Source: The low bid submitted by North Valley, Inc. of Nowthen, Minnesota, is $303,756.46. After adding indirect costs for administrative (6%), engineering (15%), finance (1%), and legal (1%) costs, total project costs become $373,620.45. For comparison, the Feasibility Report estimated project costs at $430,934.81 and the engineer's estimate based on final plans and specifications was $447,453.09. The improvements are proposed to be funded using a combination of Street Reconstruction and Overlay Program bond funds ($279,742.21), Stormwater Utility Funds ($630.84), and special assessments to benefitting properties ($93,247.40). Sixteen (16) 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 16 parcels using the "per lot" assessment method. Based on the low bid, assessments would be $5,827.96 per parcel. Assessments for this project were preliminarily adopted at $6,733.36 per parcel. Final assessments will be based on final construction costs and the findings of a special benefit consultation report. Unless Council objects, Staff plans to order a special benefit consultation report for this project following Council authorization to award a construction contract. Again, the purpose of this report is to help verify that proposed assessments will not exceed the benefit to assessed parcels. Recommendation: Staff recommends Alternative # 1. This will allow the project to be constructed in 2018, and will allow for the use of special assessments to pay for up to 25% of eligible project costs per the applicable provisions of Minnesota Statute Chapter 429, Chapter 8 of the City Charter, and the City's Special Assessments Policy. Action: Motion to adopt Resolution #18-059 accepting bids and awarding a contract for construction for Stanhope Terrace Street Reconstructions, Improvement Project #18-00. Attachments Resolution 18-059 IP18-00 Plans Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 03/22/2018 02:37 PM Form Started By: Bruce Westby Started On: 03/12/2018 01:16 PM Final Approval Date: 03/22/2018