Agenda - Council - 09/10/2019 - Laserfiche WebLink

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Observations/Alternatives: Observations: At the time this report was prepared, construction of this project was complete with only punch list item work remaining and Staff was calculating final construction costs to assist in determining final assessment amounts for use in publishing and mailing notices for the Assessment Hearing. Alternatives: Alternative #1 — Adopt Resolution #19-217 ordering preparation of a final assessment roll and calling for an Assessment Hearing at 7 p.m. on October 8, 2019 for Improvement Project #19-01, Ford Brook Estates Street Reconstructions. Alternative #2 — Deny adoption of Resolution #19-217 at this time. Funding Source: Project Costs On May 14, 2019, the City Council accepted bids and awarded a construction contract to Asphalt Surface Technologies (ASTECH) of Saint Cloud, Minnesota, per their low bid of $262,503.25. This bid included $249,901.55 for the base bid, plus $12,601.70 for the alternate bid to expand the cul-de-sac so school buses could pick students up in the cul-de-sac instead of on Highway 47. Street reconstruction project costs include construction costs plus 23% indirect costs for administrative (6%), engineering (15%), finance (1%), and legal (1%) costs. Upon adding 23% to construction costs, the contracted project cost is $322,879.00. The engineer's project cost estimate based on final plans was $244,045.28. The contracted project cost is $78,833.72, or 32.3 percent, higher than the engineer's project cost estimate. When preparing engineer's estimates, Staff applies unit bid prices from projects most recently bid (within the last year or two), and adjusts unit prices based on the latest available information pertaining to inflation. The intent is for the engineer's estimate to fall within the middle of all bids received, which has been the norm in recent years. Bids received this year were higher than the engineer's estimates. The unit bid prices that were significantly higher on this project were for mobilization ($18,000), bituminous pavement ($12,867), and concrete work ($8,262). Other cities also experienced higher bid prices this year, particularly on bituminous and concrete pay items. Staff is working to finalize actual construction costs. Based on quantities known to date, final construction costs will likely be equal to or slightly more than the contract amount. Final project costs will be reviewed in detail during the Assessment Hearing. These improvements were included in the City's Capital Improvement Plan for 2018 construction. Funding sources include a combination of unexpended street reconstruction bond funds, special assessments to benefiting properties, and stormwater utility funds. Special Assessments The City's Special Assessments Policy (attached) calls for special assessments to pay for up to 25% of eligible street reconstruction improvement costs. Special assessments are calculated using methods resulting in reasonable and equitable distribution of assessments that are uniform upon the same class of properties within the assessable area. The test for determining the validity of a special assessment is whether the improvement for which the assessment was levied has increased the market value of the property against which the assessment was levied in at least the amount of the assessment. Ramsey's Special Assessments Policy identifies three optional methods for calculating assessments; Adjusted Front Footage, Area, and Per Lot. The Feasibility Report for this project identified 8 benefiting residential properties that are proposed to be assessed up to 25-percent of eligible project costs. On all previous residential street reconstruction projects, the Per Lot assessment method was applied so Staff recommends using the Per Lot method for this project. Eight (8) benefiting properties 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