Agenda - Council - 03/28/2006 - Laserfiche WebLink

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CASE # PUBLIC HEARING ON IMPROVEMENT PROJECT #05-27 STREET GRADING A/ND PAVING OF WELCOMES ROAD (163~a~ LANE FROM VARIOLITE STREET TO URANIMITE STREET; URANIMITE STREET FROM 163m> LANE TO 164TM LANE;164TM LANE FROM URANIMITE STREET TO SAPPHIRE STREET; SAPPHIRE STREET FROM 164TM LANE TO 164r~t AVENUE; AND 164TM AVENUE FROM SAPPHIRE STREET TO A POINT 300 FEET EAST THEREOF) By: Steven J. Jankowski, City Engineer Background: The City received a petition for street grading and pavement improvements on December 10, 2004. This petition was considered by the Public Works Committee on January 18, 2004 and was forwarded to the City Council with a recommendation that a feasibility study be prepared. This recommendation was ratified by the City Council at the February 8, 2005 meeting. A public hearing was held on April 25, 2005. The project was ordered on June 14, 2005 and plans and specifications were prepared. The project was bid on February 23, 2006 and all bids were rejected as required by the City Council on February 28, 2006 since the bids exceeded the original feasibility study estimate by more than 10%. Three major factors contributed to the higher costs received during the bidding. The unit price per ton of bituminous paving received was 40% higher than bids twelve months ago when the original estimates were prepared. The pavement structure needed to be th thickened on Sapphire Street and 164 Avenue upon the recommendation of the soils engineer to compensate for the presence of poor soils in this area. A third factor included an additional bid item for imported granular material which was found to be necessary to raise the grade of the roadway in order to provide separation of the road base from the high water table. The purpose of this public hearing is to reconsider this project in light of these higher costs. A notice of this public hearing along with a copy of the revised feasibility study which is attached to this case has been sent to each property owner. The total project cost for this project is now estimated to be $250,744. The project proposes to finance one half (50%) of the total project cost, $125,372 though special assessments to the benefited properties adjacent to the improved streets consistent with Minnesota State Statutes 429 and City of Ramsey Code Chapter 4. The remaining 50% or $125,372 of the project will be financed with City of Ramsey general tax funds. The assessed portion of the project cost shall be equally assessed among the benefited 19 properties. This would result in an estimated assessment of $6,599 per property. If a property owner would elect to have this assessment collected over a ten year period at an estimated interest rate of 6.71%, annual payments are estimated to range from $1219 to -187-