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within the City, there are areas having clay soils which would require a section <br />stronger than the standard section. Two new subdivisions within the City <br />including Estates of Silver Oaks and Bmokfield are examples. Many of the <br />existing subdivisions in these areas similarly have clay soils. Staff is <br />recommending that against City cost participation of this element due to concern <br />for setting precedent. <br />City to Fund Cost Associated with Borrow Material: Because of the need to raise <br />the base of the road above the water table, granular material needs to be imported <br />to the project site. The imported material results in an increased cost of $15,000. <br />City participation in funding this element of the project could set precedent for <br />future street paving or reconstruction projects. Any project involving weak soils <br />may require the complete removal and replacement with suitable granular <br />material. Staffis recommending against City cost participation of this element <br />due to concern for setting precedent. <br />Consider Costs associated with Project Overhead. The total project cost consist <br />of two components; construction cost which are based on the contract quantities <br />installed and overhead costs which are estimated based upon percentages of the <br />construction cost. Page 3 of the feasibility study defines the overhead costs for <br />this project as 25% consisting of 8% for design; 5% for project administration; <br />2% for bonding and legal; 5% for inspection and testing; and 5% for project <br />contingencies. The total cost for overhead on the project is estimated at $50,149. <br />Approximately $11,000 in direct costs plus City stafftime has been spent to date <br />and the potential exists for actual overhead costs to be lower than the above <br />estimate. Residents have expressed concern over a percentage of construction <br />costs determining overhead costs since the higher the construction costs become <br />the more overhead costs will be incurred. Staff would recommend that actual <br />overhead costs be charged as follows: 15% for design, project administration, <br />bonding and legal, plus the actual inspection cost based upon actual time spent. <br /> <br />Project residents had also expressed a concern at the neighborhood meeting relative to the <br />time schedule for the project. It was noted that the 60 day petition period from the close <br />of the public hearing will expire on May 28, 2006 and that the City Council could take <br />action to order the project by advertising for bids at the meeting of June 11, 2006. If as a <br />result of this case the Public Works Committee recommends a reduction of costs these <br />recommendations should be sent on to the City Council for ratification at the May 23, <br />2006 meeting. The Council may wish to extend the petitioning period for a period of time <br />beyond the May 28th date to allow the new cost information to be distributed to the <br />project residents such that they can make an informed decision on whether they wish to <br />petition against the project. <br /> <br />Recommendation: <br /> <br />Staff recommends that (a) staff be directed to modify the feasibility study with respect to <br />financing in response to the issues outlined in the case above; (b) that the <br />recommendations of this case be presented to the City Council for ratification at the May <br /> <br />42 <br /> <br /> <br />