Agenda - Council - 10/13/2020 - Laserfiche WebLink

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Observations: Construction of this project is substantially complete. Only punch list work remains, which will be completed next year. As is standard practice on street improvement projects, the City does not issue final payment to the contractor until the following year so punch list work can be completed to the satisfaction of the City and abutting property owners, which often includes turf establishment work thereby requiring the work to be completed during the following year's growing season. Alternatives: Alternative #1 — Adopt Resolution #20-229 adopting the final assessment roll certifying assessments for Improvement Project #20-04, Puma Street Improvements. Alternative #2 — Deny adoption of Resolution #20-229 at this time. Funding Source: Project Costs The preliminary cost estimate for the Puma Street improvements per the Feasibility Report was $990,000. Preliminary assessments were adopted by the City Council on March 24, 2020, in the amounts of $283,015.00 for Capstone Homes, and $222,025.00 for Paxmar. On June 23, 2020, the City Council accepted bids and awarded a contract to Douglas -Kerr Underground, L.L.C. of Mora, Minnesota, per their low bid of $622,062.11. Total project costs include construction costs plus 25% indirect costs for administrative, engineering, finance, and legal costs, which resulted in a contract project cost of $777,577.64. As noted earlier, at the time this report was prepared construction was substantially complete with only punch list work remaining. Even though final payment has not been issued, final construction costs are assumed to be known at this time. These costs were used to calculate final assessment amounts before publishing and mailing Assessment Hearing notices. The final construction cost has been calculated at $636,586.19, resulting in a final project cost of $795,732.74. This is 2.3 3 % more than the contract project cost and is primarily attributable to quantity increases for unanticipated utility improvements and minor paving cost overruns. Based on final project costs, final assessments are proposed in the amounts of $184,818.90 for Capstone Homes, and $140,733.65 for AKM Farms/Paxmar. These proposed final assessment amounts are identified in the Assessment Hearing notices mailed to the benefiting property owners, which are attached for reference. The adopted preliminary assessments and the proposed final assessments are tabulated below for comparison. Property Owner Adopted Prelim. Assessment Proposed Final Assessment Capstone (Riverstone) $ 283,015.00 $ 184,818.90 Paxmar (AKM Farm) $ 222,025.00 $ 140,733.65 Funding Sources This project is being funded in part by the City, in part by Capstone Homes (Riverstone), and in part by AKM Farms/Paxmar (Alpha Development), using a combination of special assessments, Anoka County Redevelopment Authority funds as authorized pursuant to Resolution #20-141, utility enterprise funds, and stormwater funds. The City is contributing to the project costs for two reasons. First, the City owned 4 acres of real property fronting Puma Street. Second, Puma Street is a collector street on our Municipal State Aid System, which benefits more than the immediate area. Special Assessments The final assessment roll is included in the attached assessment calculations spreadsheet and below. Final Assessment Roll 1