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City Council Minutes September 19, 1983 Page Four 6. Heavenly Hills Road Improvement The City Administrator indicated that at the August 1, 1983 City Council meeting, the City Council authorized the City's engineer to prepare plans and specifications and obtain bids for the Heavenly Hills road improvement project. The City Admini- strator further indicated that Thursday, September 8th, the City received bids rang- ing from $112,916 to $130,580, with the low bidder being S & LExcavating. The City Administrator indicated that in the S & L Excavating bid for the Heavenly Hills project, there is $16,000 for hauling excess dirt from the site. The City Admini- strator further indicated that it is recommended by the engineer and the City staff that the $16,000 dirt-hauling item be deleted from the project and that the excess dirt be wasted on the site or stockpiled for hauling by the City's crews. The City Administrator indicated that with the dirt-hauling item deleted from the construc- tion bid, the low bid would be $97,000. The City Administrator then reviewed addi- tional costs to the project as stated in his memo to the Mayor and City Council dated September 15, 1983. The City Administrator inddlcated that if the assessment method used is as proposed at the public hearing, the resu~g cost on a per lot or per unit assessment would be $4,573.00. The City Administrator further indicated that this cost is based upon several assumptions: if the project is completed in the fall of 1983, engineering fees would be reduced by several thousand dollars, as additional staking would not be necessary in the spring of 1984. The City Admini- strator further indicated that there may be additional costs, should there be problems in obtaining easements or if there would be legal challenges and further indicated that these costs could range anywhere from $5,000 to $10,000, depending on the nature of the challenge and the amount of legal time required. The City Administrator indicated that these additional costs could increase the assessment approximately $400 per lot. Councilmember Duitsman questioned the time of the assessment of the project. The City Administrator indicated that the project would be assessed in 1984 for 1985 collection. Ms. Kitty Omitt questioned the possibility of deleting the $16,000 for dirt removal. Ms. Omitt further indicated that it was her understanding that the acceptance of a bid as submitted was required by law. The City Administrator indicated that the $16,000 could be deleted by a change order. Mr. Terry Maurer of Consulting Engineers, presented to the City Council various asses- sment'options. Discussion was carried on regarding the various options, the amount of proposed annual payments, and the fact that the assessment could be paid off at any time. Mr. Jim Tralle requested that the City Council address the issue of obtaining easements necessary for the project. Mr. Terry Maurer indicated that there were five properties from which easements had to be obtained. Mr. Maurer reviewed those easements on a map for the City Council. Mr. Ron Wurm, one of the property owners from which an easement is needed, indicated that he felt his property was already too close to the road and further indicated that he felt an easement should be worth something in compensation and therefore, he would not give the easement.