Agenda - Council - 08/14/2006 - Special

Home

PUBLIC HEARING REGARDING SPECIAL ASSESSMENTS FOR IMPROVEMENT PROJECT 05-27 WELCOMES ROAD STREET GRADING AND PAVING IMPROVEMENTS By: Steven J. Jankowski, City Engineer CASE # I Background: This special City Council meeting is being held for the purpose of conducting a public hearing and passing upon the special assessments necessary for the financing of this proj ect. Bids were received on July 7,2006 and low bid received was 12.4% higher than the estimated construction cost contained in the revised May 2006 feasibility study. The higher than estimated project cost is a result of the continuing increase ip. bituminous and energy costs. City code section 4.60.05 Subd 3 states that "no contract shall be let in the event that the lowest responsible bid exceeds the estimated. cost by more than 10%." It is the opinion of the City Attorney that an award of this contract contrary to the City code could result in a legal challenge that would jeopardize the entire proposed assessment. On the other hand postponing the project would most likely result in still higher project costs unless oil and bituminous prices decline which is not expected. At the July 25th meeting Council directed that a public hearing be held prior to the award of the contract to the low responsible bidder. The proposed assessments are being proposed at 110% of the costs presented within the feasibility study to be in conformance with the intent of city code. The cost ofthe assessment to each ofthe 19 units is $6,885. Two property owners have multiple properties. The assessment procedures allow the opportunity for property owners who are being assessed a period of 30 days beyond the date of the assessment hearing to appeal the assessment to District Court. While the assessment hearing is typically conducted after the project is completed or substantially completed, it is possible to hold the hearing prior to award to determine whether any substantial assessment challenges will be made by the property owners. On Wednesday, August 9, 2006 a document signed by 100% of all the benefited property owners was delivered to City officials. A copy of that petition is attached. The City Attorney has been asked to review this document to determine whether it is of proper form to allow the City to award the contract prior to the 30 day period allowed by state law to challenge the amount ofthe assessment. If the 30 day period must be applied it would be anticipated to award this project on September 14,2006 at a special City Council meeting. A notice to proceed would be issued to the contractor on or about September 20, 2006. The contract documents allow 25 working days for the completion of this project which would place the completion date on October 20,2006. Ifthe document presented is acceptable to the City Attorney a resolution awarding the contract 1