Agenda - Council - 10/08/2019 - Laserfiche WebLink

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Staff has received several complaints and concerns from property owners related to the application of the curb curing compound, which is done to make the old curb and gutter blend in with the spot curb replacements. Several property owners called to complain that the curing compound got on their vehicles. Staff instructed them to go to their preferred automobile detailer and to send the bill to the curb contractor for payment. No calls were received after these instructions were provided. A letter was mailed to property owners recently so they understand that the City will be out on site again next spring to address any outstanding concerns before closing the project out. Alternatives: Alternative #1 — Adopt Resolution #19-237 adopting the final assessment roll certifying assessments for Improvement Project #19-03, Wood Pond Hills and Chestnut Ridge Street Reconstructions. Alternative #2 — Deny adoption of Resolution #19-237 at this time. Funding Source: Project Costs On May 14, 2019, the City Council accepted bids and awarded a construction contract to Omann Contracting Companies Inc. of Albertville, Minnesota, per their low bid of $304,916.53. Street reconstruction project costs include 23% indirect costs for administrative (6%), engineering (15%), finance (1%), and legal (1%) costs. After adding 23-percent to the contractor's construction bid, the contracted project cost is $375,047.33. The engineer's project cost estimate based on final plans was $327,938.11 therefore the contracted project cost is $47,109.22, or 14.4-percent, higher than the engineer's project cost estimate. When preparing engineer's estimates, Staff uses unit bid prices from recent projects, then adjusts the unit prices for inflation based on the latest available information. The intent is for the engineer's estimate to fall within the middle of bids received, which has been the norm in recent years. Bids received for this project were significantly higher for bituminous pavement ($25,587) and concrete work ($11,535). Other cities also experienced higher bid prices this year, particularly on bituminous and concrete pay items. Staff worked with the contractor to calculate final construction costs for this project, which were used to calculate final project costs to determine final assessments. Final construction costs are $277,251.93 and final project costs are $341,019.87. This means final project costs were 3.99% greater than the engineer's estimate of project costs. Final assessments are therefore $1,445.00 per benefiting property based on assessing 25% of eligible project costs. This amount was included in the Assessment Hearing Notice published in the Anoka Union Herald, and was included in the Assessment Hearing Notices mailed to all benefiting property owners. Funding Sources Funding sources for this project include a combination of unexpended pavement management program funds, special assessments to benefiting properties, and stormwater utility funds. Unexpended pavement management program funds These funds include unspent 2013 budgeted pavement management project funds, plus 5-years of bond premiums and interest earnings. 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