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

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shifting of the dirt road. An estimate was presented that the neighborhood could have a gravel- surfaced road with calcium chloride treatment for about $3,400. They were offered an alternative of the road being paved with the City absorbing half the cost, which sounded like a deal at about $3,500. On April 12 there was a public hearing and concerns were raised. They held a neighborhood meeting to discuss concerns regarding water, drainage and trees. Things looked like they were going to go okay, and the Council authorized the project on June 14. The price had gone up to $3,700, but he could live with that. Mr. Howe stated he has received a letter that says the price is now $6,600 per lot, which is a lot more, and he is trying to figure out why. He tmderstands the cost of materials went up over the last year, but only eight months ago the project was authorized, and now the cost has doubled. He is having trouble with that, especially since everything did not double in price. If the City really wants to get this project done it would be appropriate to reconsider some of these prices and how much relief the City will provide to the citizens in Ramsey. City Engineer Jankowski stated Mr. Howe has presented things fairly accurately. He explained them were substantial increases in the cost of bituminous, which did increase the project cost. Some of the original costs were estimated on the light side. Five bids were received on the project, three of which were tight, so they do reflect an accurate idea of the costs at this time. The bid could not be awarded because it exceeded the estimate by a substantial amount. At this time they still have an opportunity to reconsider this project. To do that, the process needs to be started over by holding the public hearing, which is being done tonight. If the public hearing is closed tonight, the plans could be m-bid by early July, which would allow time to complete the project this year. Councilmember Cook questioned if there were increased costs due to the need for the asphalt to be thicker in some areas, which was determined after soil borings were done. City Engineer Jankowski replied that is correct. A portion of the project had buried organic soils, and the recommendation was to thicken the area to provide additional support. There was also some additional fill that was unanticipated at the time the feasibility study was conducted. Councilmember Cook asked if the hope is that these bids would come in lower than the last bids, or ifa more realistic estimate is being included in the feasibility study. City Engineer Jankowski replied he specifically tried to be very conservative with the estimate this time. The construction costs have been estimated at $200,000. There were three bids slightly under $200,000 and a 25% overhead has been added to that. To date there has been $11,000 spent on preparing plans and stafftime. Councilmember Cook noted this paving was part of the gravel road surfacing project. Generally when a new road is put in the assessment is not 50/50; this was offered because this is a road the City would like to see changed over from gravel. He inquired if 50% of the residents are still agreeable to this project. City Engineer Jankowski noted Mr. Howe suggested the number of residents approving of this project would highly depend on how much the City participates. City Council / March 28, 2006 Page 9 of 31