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City Council Regular
Meeting Date: 05/01/2018  
Subject:    Consider Resolutions 18-2(9) and 18-2(12) Awarding Contract and Adopting Assessments for Street Reconstruction Project 18-2
Submitted For: Mark Hansen From: Sarah Greene, Administrative Assistant II

The City is proposing to improve 4 miles of residential streets by reconstruction as part of project 18-2. Staff completed the plans, advertised the project on March 30 and April 6, and received bids on April 20, 2018. Council is asked to award a contract and adopt the assessments at this time.
Streets within the project area, illustrated on the attached Project Location Map, are proposed to be rehabilitated via reconstruction methods. Improvements to streets proposed for reconstruction include the reclamation of the existing bituminous surface and aggregate base, removal and replacement of damaged curb and gutter, sidewalk and pedestrian curb ramp improvements in accordance with ADA requirements, watermain pipe valve and hydrant replacements, and repairs or replacements to the existing storm sewer and sanitary sewer as needed.

The following streets are proposed for reconstruction:
  1. 131st Lane from Round Lake Boulevard to Silverod Street
  2. Silverod Street from 129th Avenue to 131st Lane
  3. Marigold Street from Northdale Boulevard to 129th Avenue
  4. 129th Avenue from Silverod Street to Northdale Boulevard
  5. 129th Avenue from Northdale Boulevard to Lily Street
  6. Lily Street from 129th Avenue to 131st Avenue
  7. 121st Avenue from Crooked Lake Boulevard to Jonquil Street
  8. 120th Avenue from Eidelweiss Street to Jonquil Street
  9. 119th Lane from Eidelweiss Street to Jonquil Street
  10. 119th Avenue from Crooked Lake Boulevard to Jonquil Street
  11. Jonquil Street from 119th Avenue to 121st Avenue
  12. Eidelweiss Street from 119th Avenue to 121st Avenue
  13. 118th Lane from Crooked Lake Boulevard to Northdale Boulevard
  14. 115th Avenue from Zea Street to cul-de-sac
  15. 115th Avenue from Silverod Street to Undercliff Street
  16. 114th Lane from Round Lake Boulevard to Pheasant Ridge Drive
  17. Undercliff Street from 114th Lane to 115th Avenue
  18. Silverod Street from 114th Lane to 115th Avenue
  19. Pheasant Ridge Drive from Coon Rapids Boulevard to Mississippi Drive
Open house meetings were held during evening hours on October 11, 2017 and January 24, 2018 to provide information about the project, and to listen to comments and concerns from area property owners. Council accepted the feasibility report on December 19, 2017, and ordered the improvement and advertisement for bids on February 20, 2018. A public hearing and assessment hearing were also held on February 20.

Properties proposed to be assessed include 339 single family residential properties, one residential duplex property, 190 condominium/townhome properties, 23 commercial properties, and one government/institutional property. The reconstruction assessment rates approved by City Council on December 19, 2017 are $1,909.54 for single family residential property, $23.87 per front foot for multi-family residential property, $47.73 per front foot for commercial property, and $62.05 per front foot for industrial property.

At the public hearing held on February 20, 2018, 25 property owners within the Shenandoah Park development filed written objections to their proposed $419.22 assessment. Staff followed up via a letter sent on March 2, 2018 to these property owners describing the basis for the proposed special assessment, and the next steps for contesting the assessment in district court, should they wish to do so. A copy of this letter is attached for the Council's reference. This letter was also sent to the property owners within Shenandoah Park that did not file a written objection for their information. Staff did not receive any follow up questions or concerns after this letter was sent on March 2. Staff recommends that the City Council uphold the proposed reconstruction assessments for these properties.

Five bids were received on April 20, 2018, and are summarized as follows:
Northwest Asphalt, Inc. $2,546,838.95
North Valley, Inc. $2,616,930.21
Douglas-Kerr Underground, LLC $2,660,303.43
C.S. McCrossan Construction, Inc. $2,716,253.05
Park Construction Company $2,746,045.99

The engineer's estimate for the project was $2,952,396.85.

The low bidder, Northwest Asphalt, Inc. has completed similar contracts of this nature in the City with satisfactory results. If Council awards a contract, work can begin in mid May, and be completed at the end of September 2018.

A neighborhood meeting to introduce City and Contractor project staff will be held on May 10, 2018 in Thorpe Park. Additional information, including frequently asked questions, construction schedule, and a list of City and Contractor contacts will be provided to property owners via US mail within the next couple of weeks. Construction updates will be posted on the City website weekly, and property owners can choose to sign up for email alerts notifying them when updates are available.
It is recommended Council take the following actions:

a. Adopt Resolution No. 18-2(9) awarding a contract to Northwest Asphalt, Inc. in the amount of $2,546,838.95

b. Adopt Resolution No. 18-2(12) adopting the assessments for project 18-2

The construction cost for this project based on the low bid is $2,546,838.95. Adding 20% to the construction costs for contingency, engineering, and testing services brings the total to $3,056,206.74. A total of $840,634.62 is proposed to be assessed to benefiting properties.

The balance of the project cost would be recovered from various funds as follows:
$1,599,622.92 from the Street Reconstruction Fund (797).
$149,317.20 from the Storm Water Utility Fund (640) recovered through storm drainage charges.
$392,868.00 from the Water System Maintenance Fund (601) recovered through charges for water used.
$73,764.00 from the Sanitary Sewer Maintenance Fund (620) recovered through sanitary sewer maintenance charges.
Project Location Map
Shenandoah Park Assessment Follow Up Letter
Resolution No. 18-2(9)
Resolution No. 18-2(12)

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