4.7. SR 09-10-2001 - Laserfiche WebLink

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Howard R, Green Company Item 4.7. September 6, 2001 File: 814700J-0071 Honorable Mayor and City Council City of Elk River 13065 Orono Parkway P.O. Box 490 Elk River, MN 55330-0490 RE: JARVIS STREET PAVING Dear Council Members: Back in 1998, the bituminous overlay project for the year included the paving of Jarvis Street for approximately three-quarters of a mile in the extreme northeastern portion of the City of Elk River. The paving of Jan/is Street was deleted from the 1998 project. The primary reason was the inability to come to an agreement with Burns Township as to how to split the cost. Soon after that occurred, the development of the Rolling Hills Addition began in the same area. In fact, the entrance to Rolling Hills is off of the gravel portion of Jarvis Street. Through the Developer's Agreement for Rolling Hills, the Developer was required to contribute $30,000 to the eventual paving of Jarvis Street. Again, nothing happened as the City waited for Bums Township to deal with the funding of their portion of the road paving. Just recently, we received the attached memo from Bill Christian, the exclusive homebuilder in the Rolling Hills Addition. Staff had an opportunity to meet with Mr. Christian to discuss the specifics of his proposal. Mr. Christian was contacted by one of the property owners along Jarvis Street. Through negotiations with this property owner, Mr. Christian agreed to contribute $30,000 to the paving of Jarvis Street and the homeowners along both the Elk River and Burns Township sides agreed to contribute an additional $30,000 to the paving of Jan/is Street. Mr. Christian has agreed to guarantee all $60,000, his $30,000 plus the homeowners' $30,000. He has made a deal with one of the homeowners to protect himself for the homeowners' portion of that amount. Therefore, the City would have a total of $90,000 for the paving of Jarvis Street, $30,000 from the Developer of Rolling Hills Addition, $30,000 from Mr. Christian, and $30,000 guaranteed by Mr. Christian from the abutting property owners. Based on the recent bid received for street overlays and the paving of 221st Avenue from Bauedy Companies, we believe the City could undertake the paving of this portion of Jan/is Street within the $90,000 available. Therefore, we have prepared a change order to add this work to the 2001 Oveday project. The change order is in the amount of $70,463.10. In addition to this construction cost, of course the City would have a small amount of overhead for the construction staking, inspection, and construction administration. We would recommend approval of Change Order No. 1 to the 2001 Oveday project, adding the paving of three- quarters of a mile of Jan/is Street to the project. Ltr 9-6-01 Council 1326 Energy Park Drive · St, Paul, MN 55108 · 651/644-4389 fax 651/644-9446 toll free 888/368-4389