Agenda - Council - 05/14/2019 - Laserfiche WebLink

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Project Costs Construction and total project costs based on the lowest responsible bid received from Omann Contracting Companies Inc. of Albertville, Minnesota, are as follows. Total Bid Construction Costs i$304,916.53 Project Costs $375,047.33 Project costs include 23% indirect costs for administrative (6%), engineering (15%), finance (1%), and legal (1%) costs. Attached is a proposal from Bolton & Menk for construction staking services using 2019 hourly rates. Staff does not anticipate need much in the way of construction staking for this project given that most of the existing curb and gutter will remain in place, which will determine most of the elevations and locations. With the recent retirement of the senior engineering technician, Staff no longer has the ability to stake construction so consultants will need to provide this service on all future public improvement projects. This cost is included under indirect costs for engineering. Project Funding This project is proposed to be funded using a combination of the following funds; • Unexpended street reconstruction funds = $284,729.08* • Special assessments = $86,228.50 • Storm sewer funds = $4,089.75 * After collecting assessments (bonds initially cover assessments). Approximately $900,000 in unexpended Street Reconstruction Program funds are available to fund both street reconstruction projects. Bonding is therefore not required to pay for the 2019 street reconstruction projects. Fifty-nine (59) benefiting properties will receive special benefit from the improvements and are proposed to be assessed up to 25-percent of eligible project costs. Eligible project costs include all costs except those related to subgrade corrections and public utility improvements. Assessments are proposed to be applied equally across the 8 assessable properties using the "per lot" assessment method as allowed by the adopted Special Assessments Policy. A preliminary assessment amount of $1,303.70 per benefiting property was adopted by Council on November 13, 2018. Based on low bid project costs, assessments for benefiting parcels would increase to $1,461.50, an increase of $157.80. Final assessments will be adopted following the Assessment Hearing on October 8, 2019, after construction is complete and actual construction costs are known. Over the last four years, a special benefit consultation report has been prepared for all projects and the results of the report were used to help guide final assessment amounts. However, this project is so similar to the River's Bend street reconstruction project completed last year that Staff recommends not completing a special benefit consultation report for this project, which would cost around $6,500, and instead use these funds to offset increases in assessments. The City will fund all non -assessed project costs, including the costs required to expand the cul-de-sac per the alternate bid. Recommendation: Staff recommends Alternative # 1. This will allow the project to be constructed in 2019, and will allow for the use of special assessments to pay 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: