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Howard R, Green Company <br />CONSULTING ENGINEERS <br /> <br />May 14, 1998 <br />File: 803350J (0030) <br /> <br />Items 4.2. & 4.3. <br /> <br />Formerly MSA <br />Consulting Engineers <br /> <br />Honorable Mayor and City Council <br />City of Elk River <br />13065 Orono Parkway <br />P.O. Box 490 <br />Elk River, MN 55330-0490 <br /> <br />RE: 1998 BITUMINOUS OVERLAY AND GRAVEL ROAD PAVING PROJECT <br /> <br />Dear Council Members: <br /> <br />As discussed previously, the schedule for the bituminous overlay and gravel road paving project <br />calls for the public hearing and the assessment hearing to be held on the same evening. <br />Because of the large number of property owners affected by this project, June 8, 1998 has been <br />selected for this meeting. In anticipation of this meeting, we have prepared both a feasibility <br />study and plans and specifications, and have solicited bids for the project. The bids were <br />opened on Thursday, May 7, 1998. There were a total of seven bids submitted. Bauerly Bros., <br />Inc. was the Iow bidder at $376,184.40. <br /> <br />Using the Council's past practice of assessing a unit rate across the entire bituminous overlay <br />project, we have determined that the assessment rate for the bituminous overlay would be <br />$1,450.00 per unit. As a comparison, the 1996 bituminous overlay project was assessed at a <br />rate of $1,300.00 per unit. <br /> <br />The proposed gravel road paving is a more complicated issue. First of all, half of the Jarvis <br />Street Project is within Burns Township. The construction cost for that portion of road is <br />$38,400.00 without overhead. Taking the remaining cost within the City limits, and adding 10% <br />overhead, the total project cost is $118,700.00. When divided by the total number of units, the <br />cost per unit becomes in access of $4,200.00. It appears that there is no way for this project to <br />be fully funded through assessments. The Council could consider an assessment rate of one or <br />two overlay units per parcel. One overlay unit per parcel would generate approximately <br />$40,000.00. Two would generate $80,000.00. In a best case scenario, this would leave an <br />approximately $40,000.00 shortfall. <br /> <br />There are two resolutions attached for the City Council to consider. The first receives the <br />feasibility study and orders the public hearing for June 8, 1998. The second resolution <br />determines the cost to be assessed and orders the preparation of the assessment role. As <br />indicated before, the assessment hearing would also be June 8, 1998. Staff would appreciate <br />some input from the City Council relative to the assessment of the gravel road paving. One <br /> <br />O:~ROJ\803350j\350-1407.may.do¢ <br /> <br /> 1326 Energy Park Drive · St. Paul, MN 55108 · 612/644-4389 fax 612/644-9446 toll free 888/368-4389 <br /> <br /> <br />