Agenda - Council - 05/23/2006 - Laserfiche WebLink

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subdivisions in these areas similarly have clay soils. Staff is recommending that against City cost participation of this element due to concern for setting precedent. City to Fund Cos[ Azsociated with ~3orrow ~¢/ateria[: Because of the need to raise the base of the road above the water table, ~anular material needs to be imported to the project site. Tile imported material results in an increased cost of $15,000. City participation in funding tbis element of the project could set precedent for fx~tttre street paving or reconstruction projects. Any project involving weak soils may require the complete removal and replacement with suitable granular material. Staff is recommending against City cost participation of this element due to concern for setting precedent. Consider Costs associated with Project Overhead. The total project cost consist of two components; construction cost which are based on the contract quantities instal]ed and overhead costs which are estimated based upon percentages of the construction cost. Page 3 of the feasibility study defines the overhead costs for this project as 25% consisting of 8% for desi,sm; 5% for project administration; 2?/o for bonding and legal; 5% lbr inspection and testing; and 5% for project contingencies. The total cost for overhead on tile project is estimated at $50,149. Approximately $11,000 in direct costs plus City staff time has been spent to date and the potential exists for actual overhead costs to be lower than the above estimate. Residents have expressed coneem over a percentage of construction costs determining overhead costs since the higher the consmlction costs become the more overhead costs will be incurred. Staff would recommend that actual overhead costs be charged as follows: 15% for design, project administration, bonding and legal, plus the actual inspection cost based upon actual time spent. Motion to recommend to City Council that (a) staff be directed to modify the feasibility study with respect to financing in response to the issues outlined iix tho case above; (b) that the recommendations of this case be presented to the City Council for ratification at the May 28, 2005 meeting, and (c) that the deadline for petitioning against this project be extended to June 9, 2006, and that legal opinion be obtained regarding the possible elimination of soft costs associated with project overhead and the extension of the amortization schedule. Action: Ratify the recommendation of the Public Works Cormnittee. Case #2 Consider Change Order for Improvement Project 03~20 Northwest Sanitary Sewer and Watermain Extension Backgrouud: Staff explained npon initiating the construction of the northwest sanitary sewer, soil conditions were encountered where organic soils were discovered to be deeper than the bottom of the sanitm'y sewer. Limited soil borings were available to predict the soil conditions because of the unavailability of access since easements had only recently been obtained. Soil investigations allowed for the relocation of the sanitary sewer to avoid the excessively deep organic soils. This situation has cansed a number of modifications to the project and consequently to the agreement with the contractor, LaTour Construction. Change Order No. I outlines tire nature of these changes, along with the financial and scheduling implications of these changes. Staff