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12/16/1980 - City Council Regular MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: OCTOBER/NOVEMBER, 1980 SUBJECT: ANALYSIS/PROJECT #241 The following is a factual history of the procedure, cost breakdowns and other relevant and pertinent information regarding Project #241 as requested by formal action of the City Council at the October 6, 1980 meeting. PROCEDURAL HISTORY A petition, dated April 28, 1978, was submitted to the City of Eagan by Mr. Tom Penkauskas, a resident of Lakeside Estates, requesting that a feasibility study be performed to "determine the approximate cost per home- owner for asphalt surfacing only (not to include sewer, water, curb, etc. ) ." Several streets were listed, including Dodd Blvd. betwen County Roads 30 and 32 and those streets in the Saddlehorn and Lakeside Estates Subdivisions. The petition was received by the City Council on May 2, 1978. The Consul- ting Engineering firm of Bonestroo, Rosene, Anderlik & Associates was directed to prepare a preliminary feasibility study. At the July 18, 1978 City Council meeting, a preliminary report was pre- sented by the Consulting Engineer entitled, "Project 241-Dodd Road Street Improvements". A public hearing was scheduled for the August 15, 1978 City Council meeting. An informal meeting was held at City Hall on the evening of August 9, 1978 at the request of property owners residing in the Saddlehorn Addition, Lakeside Estates and on Dodd Road between County Road 30 and Cliff Road. Those residents present at the meeting indicated by a straw vote that they were not in favor of improving the streets with a bituminous surface. The residents present were in strong support of improving the roads by increased blading and an oil application. (Please refer to Exhibit A for a copy of a report performed by the City Administrator in response to this meeting. ) A formal public hearing was held on August 15, 1978, to consider alterna- tives for street improvements for the Dodd Road, Saddlehorn and Lakeside areas. At the hearing, a new petition was submitted by Mr. Penkauskas, representing the residents of Lakeside Estates, stating that 78% of the pro- perty owners would like a study conducted to include sewer and water improvements along with consideration to asphalt and curb both Dodd Road and streets in Lakeside Estates. Action was then taken to direct the Engineer "to prepare an updated feasibility study for sanitary sewer and water purposes for the entire area and, in addition, street improvements including blacktop, curbing and gutters." A new public hearing was then scheduled for September 19, 1978. Analysis/Project #241 October/November 1980 Page Two A revised preliminary report was presented to the City Council on September 5, 1978, received and the public hearing date changed to the October 3, 1978 City Council meeting. A second neighborhood meeting was held on September 27, 1978, at which time the Consulting Engineers answered questions regarding the proposed construction and provided a cost breakdown for the anticipated utility and street improvements. The residents in attendance were generally in agree- ment with the proposed improvements. Please refer to "Exhibit B" for a copy of the feasibility report. The second public hearing was held on October 3, 1978, which included proposed street and sewer and water improvements. Many of the affected owners were present and a letter from Tom Penkauskas of Lakeside Estates was provided explaining the overwhelming vote in favor of the improvements in Lakeside Estates. Action was taken to order in the project and to direct the Consulting Engineer to prepare plans and specifications. In order to provide utilities in this area, water and sewer trunk mains would have to be extended on Wilderness Run Road (also included in the feasibility study) . Project #241 was divided into four (4) separate contracts for bidding pur- poses. The City contracts were 79-11/Sewer and Water Trunks for Wilder- ness Run Road, 79-12/Dodd Road Street, 79-13/Sewer and Water for Dodd Road, Lakeside Estates and Saddlehorn, and 79-21/Streets for Lakeside Estates, Overview Estates and Saddlehorn Addition. Because Overview Estates was not included in the original report for Project #241, this pro- ject was excluded for comparative purposes. The Engineer's Estimates as provided in the following discussion are taken from the bid tabulation sheets and do not relate to the individual projects listed on page 6 which illustrate additional cost breakdowns. Action regarding the four (4) con- tracts is officially recorded as follows: Plans and specifications were reviewed and approved for the trunk sewer and water along the Wilderness Run Road portion of the project at the April 17, 1979 meeting. A bid letting was set for May 10, 1979. This utility improvement was bid as Imp. 79-11 for bidding purposes. The low bid was approved to Enebak Construction Company in the amount of $426,095. Action was taken to approve the bid at the May 15, 1979 City Council meeting, based on the Engineer's Estimate of $360,000. The original feasi- bility report, when researched, estimated the project to be $353,800. Analysis/Project #241 October/November 1980 Page Three Plans and specifications were reviewed and approved for the lateral sewer and water portion of the project within the subdivisions at the April 17, 1979 meeting. A bid letting was set for June 14, 1979. The utility improve- ments ware- combined under Imp. 79-13 for bidding purposes for Dodd Road, Lakeside Estates and the Saddlehorn Additions. The low bid was approved to Encon Utilities, Inc. , in the amount of $599,962 at the June 19, 1979 City Council meeting, based on the Engineer's Estimate of $560,000. The original feasibility report, when researched, estimated the project to be $455,024. Plans and specifications were reviewed and approved for street improvements along the Dodd Road poriton of the project at the August 7, 1979 meeting. A bid letting was set for September 6, 1979. This street improvement was bid as Imp. 79-12 for bidding purposes. The low bid was approved to Enebak Construction Company in the amount of $341,718. Action was taken to approve the bids at the September 18, 1979 City Council meeting, based on the Engineer's Estimate of $315,000. The original feasibility report, when researched, estimated the project to be $172,630. Plans and specifications were reviewed and approved for street improvements for the Lakeside Estates, Overview Estates and Saddlehorn Additions at the October 2, 1979 meeting. A bid letting was set for October 25, 1979. These street improvements were bid as Imp. 79-21 for bidding purposes. Thelow bid, excluding Overview Estates, was approved to McNamara Vivant Contracting in the amount of $214,321. Action was taken to approve the bids at the November 7, 1979 City Council meeting, based on the Engi- neer's Estimate of $232,326, again excluding Overview Estates. The origi- nal feasibility report, when researched, estimated the project to be $104,322. COST ANALYSIS A cost breakdown analysis was made difficult because the preliminary re- port addresses all the improvements performed under Project #241; however, the costs, with the exception of Lakeside Estates, were not broken down in the report. As explained in the history, the project was divided into four (4) separate contracts for bidding purposes. The cost analysis will examine the feasibility amounts, Engineer's Estimates for bidding, actual bid amounts, bonding amounts, assessments, change orders and any other expenses relating to the total Project #241 amount. Comments that analyze the project expenses are found after the numbers are examined. Analysis/Project #241 October/November 1980 Page Four CONSTRUCTION BIDS The following is a breakdown of the actual bids received for each of the four (4) contracts. Those contracts are subsequently broken down and related to the feasibility report for comparison purposes. Wilderness Run Road Sewer & Water Trunks (79-11) - (5-10-79) $426,095 Dodd Road, Lakeside Estates & Saddlehorn Utilities (79-13) - (6-14-79) 599,962 Dodd Road Street Improvements (79-12) - (9-6-79) 341,718 Lakeside Estates & Saddlehorn Street Improvemtns (79-21) - (10-25-79) 214,321` 18% Engineering, Legal, Miscellaneous & Assessment .Rolls 284,778 TOTAL $1,866,874 The total bid was $263,835; however, $49,514 was bid for streets in Overview Estates which is being excluded for this comparison. CHANGE ORDERS Several Change Orders were considered for each of the improvements com- bined into Project #241 and they are listed below: LAKESIDE SADDLEHORN DODD WILDERNESS TOTAL ESTATES ADDITION ROAD RUN UTILITIES PROJECT 241 Imp. 79-12 1. Change Order #1 $26,000 Imp. 79-11 2. Change Order #1 $9,210 Imp. 79-13 3. Change Order #1 N/A 4. Change Order 32 $11,890 $5,342 Imp. 79-21 5. Change Order #1 N/A 6. Change Order #2 N/A 7. Change Order #3 8,048 7,375 . Analysis/Project #241 October/November 1980 Page Five 1. Change Order ##1 - Substituted Class 2 crushed limestone for Class 5 gravel base for driveable surface in winter months (add. $8,000). Also provided for 12,000 cubic yards of granular barrow for subgrade correction (add. $18,000). 2. Change Order ##2 - Manhole change to accommodate preliminary platting of adjacent property owner (add. $2,018). Constructed an 18" sanitary sewer trunk stub to the S.E. to avoid dis- turbing road surface in the future (add. $4,292) . Con- structed a manhole drop inlet to tie into the sanitary line in Dodd Road (add. $2,900). 3. Change Order ##1 - Utilities and street improvements for Overview Estates totaling $111,225.80. 4. Change Order #2 - Unsuitable soils caused the engineers to use 6" crushed limestone in place of 4" class 6 gravel totaling $17,232.50. Lakeside Estates is $11,890.42 and Saddlehorn $5,342.08. 5. Change Order ##1 - Surface streets in Ches Mar East 1st Addition (add $66,096). 6. Change Order ##2 - Canceled Change Order ##1 to surface streets in Ches Mar East 1st Addition (deduct $66,096). 7. Change Order ##3 - Installation of storm sewer in Lakeside Estates. Required to replace existing storm sewer, which was improperly aligned because the addition was replatted (add. $8,048) . Grading of Stirrup Street in Overview Estates (add. $7,375) . Erosion control seeding, etc. , for Overview Estates (add. $1,300). FEASIBILITY REPORT (8-30-78) LAKESIDE SADDLEHORN DODD WILDERNESS TOTAL ESTATES ADDITION ROAD RUN UTILITIES PROJECT 241 Sanitary Sewer $52,712 $21,864 $164,400 $256,200 $495,176 Watermain 36,017 21 , 949 113,420 97,600 268,986 Service Stubs 20,339 5,085 25,424 Restoration 27,712 18,390 46,102 Streets 49,831 27,627 172,630 250,088 Subtotal 1 B F,6 11 $94,915 $450,450 $353,800 $1,M57-77; 18% 33,589 17,085 81,070 63,680 195,424 TOTAL $220,200 $112,000 $531,520 $417,480 $1,281,200 ' This amount includes engineering, legal, miscellaneous and assessment rolls. The feasibility report illustrates a total project cost of $1,500,000. Two (2) amounts were excluded from construction: previous trunks for $70,200 and stage two Dodd Road for $148,600. Therefore, the actual feasibility must be adjusted to $1,281,200 for comparison purposes. Analysis/Project #241 October/November 1980 Page Six ACTUAL BIDS LAKESIDE SADDLEHORN DODD WILDERNESS TOTAL ESTATES ADDITION ROAD RUN UTILITIES PROJECT 241 Actual Bids (5-10 thru 10-25-79) : Sanitary Sewer $86,743 $33,452 $162,540 $303,495 $586,230 W aterm ain 62,470 24,320 147,018 122,600 356,408 Service Stubs 21,740 12,079 33,819 Restoration 68,064 50,797 118,861 Streets 80,020 65,040 341,718 486,778 Subtotal $319,037 $185,688 $651,276 $426,095 $1,_592__,0__9T 18% 57,427 33,424 117,230 76,697 24,77 TOTAL BEFORE CHANGE ORDERS $376,464 $219,112 $768,506 $502,792 $1,866,874 Change Orders (Net) 19,938 12,717 26,000 9,210 67,865 18% on Change Orders 3,589 2,289 4,680 1,658 12,216 ADJUSTED TOTAL $399,991 $234,118 $799,186 $513,660 $1,946,955 ENGINEER'S ESTIMATES The Engineer's Estimates for each of the contracts representing Project 241 are listed as follows: LAKESIDE SADDLEHORN DODD WILDERNESS TOTAL ESTATES ADDITION ROAD RUN UTILITIES PROJECT 241 Engineer's Estimates (5-10 thru 10-25-79) : Sanitary Sewer $80,992 $31,234 $151,764 $263,095 $527,085 Watermain 58,328 22,707 137,271 95,370 313,676 Service Stubs 20,298 11,278 31,576 Restoration 63,514 56,054 119,568 Streets 93,540 64,470 308,718 466,728 Subtotal $316,672 $185,743 $597,753 $358,465 $1,-4-597-3-3 18% 57,001 33,434 107,595 4, 24 26-2-,5-54- TOTAL 2, 4TOTAL $373,673 $219,177 $705,348 $422,989 $1,721,187 The estimated cost shown in the feasibility report is much less than the Engineer's Estimate in all cases. The City Council and staff were advised by the Consulting Engineer in the fall of 1978 that all the projects examined in 1978 which were a part of Project #241, including engineering, etc. , totaled $1,281,200. The Consulting Engineer then separated the projects for bidding purposes. The Engineer's Estimate was increased based on plans and specifications for bid comparison purposes. These adjusted num- bers did not include the 18% engineering, etc. , were higher than the feasi- bility amounts and, therefore, were misleading. The following is a break- down of the percentage comparisons of first the feasibility report with the Engineer's Estimates, the actual bids and the final costs. Analysis/Project ,#241 October/November 1980 Page Seven PERCENTAGE COMPARISONS LAKESIDE SADDLEHORN DODD WILDERNESS TOTAL ESTATES ADDITION ROAD RUN UTILITIES PROJECT 241 Feasibility Amount $220,200 $112,000 $531,520 $417,480 $1,281,200 Engineer's Estimate 373,673 219,177 705,348 422,989 1,721,187 Percentage Change 70% 96% 33% 1% 34% Bid Amount 376,464 219,112 768,506 502,792 1,866,874 Percentage Change 71% 96% 45% 20% 46% Adjusted Bid Amount (w/CO) 399,991 234,118 799,186 513,660 1,946,955 Percentage Change 82% 109% 50% 23% 52% AMOUNT BONDED FOR CONSTRUCTION The amounts bonded are as follows. The Dodd Road Street Improvement was not bonded since it was financed by MSA funds. This accounts for $433,907 of the above construction costs leaving a balance of $1,513,048 which did require bonding. LAKESIDE SADDLEHORN DODD WILDERNESS TOTAL DATE IMP. ESTATES ADDITION ROAD RUN UTILITIES PROJECT 241 June 1980 Streets $134,110 $116,647 N/A N/A $250,757(1) June 1979 Utilities 134,850 (2) 56,550(2) 243,600(2) 525,000(3) 960,000 $268,960 173,197 $24-3—,-6-0-0 $525,000 $1,210,757 (1) Based on the actual contract amounts without regard to change orders (2) Based on an estimated cost of $435,000. For this study, it was allocated to Lakeside, Saddlehorn and Dodd Road on the same basis as the bid costs displayed elsewhere in the study. (3) Based on an estimated project cost ASSESSMENTS AS REVISED The net assessments listed below relate to actual project costs for compara- tive purposes. The actual difference absorbed by the City of Eagan after allowing for a reduction in those assessments proposed for Lakeside Estates and Saddlehorn Addition amounts to $128,582 instead of the estimated $112,000 ($1,513,048 minus $1,384,466) . After fully analyzing all the costs while preparing this report, that cost, unaudited, was determined. In comparing assessments with actual costs, the City will collect approximately $157,661 for the street construction fund for MSA Dodd Road Improvements and ap- proximately $55,725 for trunk assessments. Analysis/Project #241 October/November 1980 Page Eight ASSESSMENTS AS REVISED LAKESIDE SADDLEHORN DODD WILDERNESS TOTAL ESTATES ADDITION ROAD RUN UTILITIES PROJECT 241 Streets $81,136 $51,938 $157,661 (1) $290,735 Sewer/Water Laterals 193,313 81,988 275,301 Sanitary Sewer Trunk 12,600 7,000 120,384 167,171 307,155 Water Area 12,600 7,000 120,384 167,171 307,155 Sewer Lateral (Trunk) 45,986 105,952 151,938 Water Lateral (Trunk) 79,711 88,704 168,415 Grading 62,025 30,250 3,063 95,338 Stubs 1,815 1,815 TOTALS $361,674 $178,176 $529,004 $528,998 $1,597,852 Less Dodd Road Street Assessments [$157,661 ] [$157,661] Trunk Assessment Without Related Project Cost [$25,200] [14,000] [1,187] [$15,338] [55,725] Net Assessments to Cover Actual Project Cost $336,474 $164,176 $370,156 $513,660 $1,384,466 (1) Includes some assessments against Overview and Lakeside Estates SUMMARY The Consulting Engineering Firm of Bonestroo, Rosene & Anderlik was re- tained by the City to act as the project manager for all public improvements considered under Project #241. There were a number of problems experienced throughout the construction of this project; but, more importantly, as addressed in this memorandum, a number of the final project costs were extremely high in comparison with the feasibility report amount which affected the City's cash flow as far as bonding and assessments collected for the project. Also, the amount of assessments levied to the affected property owners was considerably higher than originally estimated, creating bad public relations for local government. The Consulting Engineer did inform the City Council during 1979 that the City was experiencing higher bids than estimated upon completion of the plans and specifications; however he stated the prices were competitive and the bids should be awarded for the project. Based on the Engineer's Estimates, the City would have ex- perienced a cost increase for all projects in Project #241 in the amount of $225,768 or a per cent increase of 13%. However, the cost increase based on the original feasibility report which was the basis for the public hearing compared to the actual bids was $665,755 or 52%. Analysis/Project #241 October/November 1980 Page Nine Because the project was not broken down in the feasibility report and the Engineer did not provide the city with cost breaksowns relative to the feasi- bility report at the time the bids were considered, there was no way of anticipating the percentage increase that was experiencedonce the project was completed. The information regarding assessments for the project was not made available to the City staff as originally committed by the Con- sulting Engineers and, therefore, once the hearings were set to consider special assessments for the residents affected by the project, it was not possible to prepare the assessment spread until the final days prior to the special assessment hearing. As a matter of record, the final costs were not determined until the day of the assessment hearing; and, therefore, the City staff did not have time to review the assessments prior to the scheduled hearing. , It is obvious in reviewing the percentage comparisons that the estimating on this project was less than adequate. There were materials that were not included in the original estimate as well as no inflation factor. The Lakeside Estates portion exceeded the feasibility amount by 82%, the Saddlehorn Addition by 109%, the Dodd Road by 50%, Wilderness Run utilities by 23%, or the total project by 52%. Normally, 5% to 10% overage is acceptable for architectural and consulting engineering firms who have professional estimators. In reviewing the change orders, a total of $80,081 was added to the final cost. Therefore, the final cost of the project was $1,946,955 or 52% higher than the feasibility report. It is also obvious that there are substantial financial costs to the City in addition to making up the assessment shortage. We have total project costs excluding the Dodd Road street improvement of $1,513,048 and bonding of $1,210,757 to cover these costs. This $300,000 deficit has to be picked up by other City funds which should be invested in outside securities at a current rate of 10-15 per cent. Consequently, there is an interest cost of between $30,000 and $45,000 for each year that this deficit has to be carried. This cost is to all the citizens and to all the taxpayers. There was a lack of coordination and cooperation between the Consulting Engineer and Fiscal Consultant in the financing of this project, a role the Director of Finance now performs, which will have long range impli- cations for the City. In reviewing the entire project file, it appears there are responsibilities that the Consulting Engineering Firm of Bonestroo, Rosene, Anderlik & Associates have to this project. The City was obligated to approximately $128,600 due to the reduction in assessments. There is no money to pay this difference, except for the fact that the $128,600 will be absorbed in future construction through the increase in assessments for trunk funds and etc. The City will collect $296,994 for the 18% engineering, legal, miscellaneous, and assessment roll costs. Approximately half of the $296,994 or $150,000 was paid to the Consulting Engineering Firm. Because of the errors, mismanagement and related problems the City experienced with the performance of this project by the Consulting Engineering Firm , it is sug- gested that the firm be responsible for a portion of the $128,600 obligated to the City by the reduction of assessments. It is not acceptable that Analysis/Project #241 October/November 1980 Page Ten a project can experience an overage of 52%. The City should not be responsible for these mistakes unless an in-house engineering division is hired to perform these responsibilities and maintain an accountability of all public improvement projects which, in effect, reduces the responsibility of the Consulting Engineering Firm. Approximately forty (40) hours was spent by this office researching and writing this report. Information was provided by the Director of Public Works, Director of Finance and Consulting Engineering Firm at my request. Those hours are above and beyond the 40 hours spent by this office. A number of observations were made to change the present policy and procedure for considering and handling public improvement projects in the City of Eagan. Those procedures and policies will be addressed in a separate procedures memorandum. This memorandum was prepared at the request of the City Council to address the facts as they are recorded relating to Project #241. ro�VAO.6 -W City Administrator Mum MEMO TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: AUGUST 10, 1978 SUBJECT: (IMPROVEMENT PROJECT 241) SADDLEHORN ADDITION, LAKESIDE ESTATES AND DODD ROAD An informal meeting was held at the City Hall on Wednesday evening, August 9, 1978 at the request of property owners residing in the Saddlehorn Addition, Lakside Estates and on Dodd Road between County Road 30 and Cliff Road. The reason for the meeting was to allow the City Engineer an opportunity to present the feasibility report for surfacing streets in the Saddlehorn Addition and Lakeside Estates Addition as well as improving Dodd Road between County Road 30 and County Road 32. Mayor Murphy, City Engineer Rosene, and City Administrator Hedges were present to discuss the project with approximately 55 - 60 people. The meeting lasted approximately 2 hours. The following is a brief report of that meeting. City Engineer Rosene explained the improvements that are proposed for Dodd Road and roads within the two subdivisions, assessment methods for Dodd Road and the residential streets, the type of construction, and answered questions pertaining to the proposed street improvements. Since there were questions proposed by the residents pertaining to the improvements of water and sewer mains, City Engineer Rosene did answer the questions as well as how water and sewer improvements would affect the various property owners. The residents were clearly informed that before all questions could be answered and cost estimates provided, it would be necessary to petition for water and sewer improvements and a public hearing would then follow with an accurate feasibility report provided by the Engineering Department. It appeared that as the informal discussion proceeded and questions were raised from the residents, many people were indicating more of an interest to have the gravel roads that are in existence maintained with additional blading and calcium chloride or oil to control dust and to provide a safer driving surface. A few residents were quite critical of the Public Works Department, stating that inpreviousyears calcium chloride or oil was applied more frequently to Dodd Road. There was also complaints expressed that snow had not been removed in some instances for at least three days after a snowfall. There were also complaints regarding the erratic condition of Dodd Road causing public safety concern as well dust. These are certainly items for the Public Works Committee to investigate either in preparation for the Public Hearing or following the Public Hearing. Some of the questions that were asked by residents will be investigated by the City Administrator and these are as follows: 1. Does an improved street affect the assessed valuation of homes adjoining the street improvement. 2. Will the City Council consider Improvement Project 241 as three separate projects for the purpose of voting? More specifically breaking the project into three parts including the Saddlehorn Addition, Lakeside Estates and Dodd Road. 3. Concern relating improvement of a storm sewer catch basin on Atlantic Hills Drive which has been referred to the Public Works Department. 4. Are there PCA regulations regarding dust control from gravel roads? 5. The possibility of erecting a "Dead End" drive sign on Atlantic Hills Drive to reduce vehicular travel making an attempt to travel from Dodd Road to South Robert Trail. 6. An engineering calculation as to the possibility of providing a gravel base improvement without a bituminous surface. ' s 7. A calculation of the total land holdings of Dunn and Curry between Dodd Road and Wilderness Run Road. After a straw vote of those residents present by the Mayor, it appeared that the residents are not infavor of improving the streets with a bituminous f surface. Those residents present were in strong support of improving the j roads by increased blading and oil application. Since the City of Eagan has a majority of the residential streets improved with bituminous surfacing it seemed appropriate to make a study of the overall costs of maintaining gravel and bituminous streets The following calculations were made in attempting to cmpare the relative cost of maintaining gravel-surfaced verses bituminous-surfaced City streets. f Figures were taken from the 1978 City Budget. j IIS GENERAL OPERATING BUDGET I General Government $311,905 21.9% Public Safety 708,906 49.8% Public Works 217,326 15.2% Recreation 186,880 13.1% Total General Operating Budget $1,425,017 100.0% PROPERTY TAX REVENUE General Fund $698,133 66% Special (Debt) 345,255 34% Total-Property Tax Levy $1,043,388 1000 INDIVIDUAL HOME-OWNER TAX CONTRIBUTION Typical Annual Tax Obligation $1,137.37 (based on a $42,000 assessed value in School District #196) City of Eagan share 123.97 Assuming that the individual tax contribution is divided on a percentage basis among the various categories, the following breakdown can be calculated: General Fund (66%) $81.82 Special (Debt) (34%) 42.15 Total $123.97 The General Fund contribution can be further subdivided: General Government (21.9%) $17.92 Public Safety , (49.8%) 40.75 Public Works (15.2%) 12.43 Recreation (13.1%) 10.72 $81.82 COMPARISON OF MAINTENANCE COST The average cost per mile for street maintenance can be calculated for each type of surface: Amount Budgeted for Maintenance $40,000 $16,000 Number of miles of Street (1/1/78) 60 19 Cost per mile for Maintenance $666/mile $842/mile Based on the above data, the cost per mile of maintaining a gravel surfaced street is approximately 25% greater than the cost of maintaining a bituminous surfaced street. Percentage of City streets which are gravel-surfaced - 24.1% Percentage of total maintenance budget ($56,000) applied to gravel street maintenance 28.6% k EXAMPLE A subdivision containing 75 lots would contribute approximately $932.25 ' for Public Works purposes ($12.43 x 75) . If this subdivision has l mile of unpaved street, at the annual maintenance expense of $842, there is a balance of $90.25 for all other Public Works functions (exluding sewer and water) . For a similar subdivision with l mile of paved street and an annual maintenance of $666, there is a balance of $266.25 for other Public Works functions. (Saddlehorn and Lakeside Estates have a combined total of 75 lots and 1.01 miles of interior streets.) 4d"c4de4f YOM 2335 /t/• � � 36 Otto G.Bonestroo,P.E. Lawrence F.Feldsten,P.E. Aou� Mtr.r�edota 55113 Robert W.Rosen,P.E. Glenn R. Cook,P.E. / Joseph C.Anderlik,P.E. Keith A. Gordon, P.E. Ate: 636-4600 Bradford A.Lemberg,P.E. Thomas E.Noyes, P.E. Robert D.Frigaard. P.E. Richard W.Foster, P.E. Richard E. Turner,P.E. Robert G.Sehunicht, P.E. James C. Olson,P.E. Marvin L.Sorvala, P.E. Donald C.Burgardl,P.E. Kenneth R.Meister,P.E. Preliminary_ Report on Charles A.Erickson Utility and Street ImprovementsLeo M.Pawelsky in Saddlehorn Addition, Lakeside Estates and Dodd Road Harlan M. Olson Improvement Project No. 241 Revised Eagan, Minnesota August 30, 1978 SCOPE: This project covers the construction of utility and street improvements to serve the Dodd Road area between Cliff Road (Co. Rd. 32) and Co. Rd. 30 and the Saddlehorn and Lakeside Estate Additions in Eagan, Minnesota. FEASIBILITY AND RECOMMENDATIONS: This project is feasible and is in accordance with the Master Plans for Water, Sanitary Sewer and Street Improvements in Eagan. The project can best be carried out by dividing it into two projects for bidding purposes; one for utility improvements and one for street improvements. DISCUSSION: The preliminary report dated July 18, 1978 on this project covered the street improvement portion of this project. As a result of the Public Hearing held on August 15, it was_requested that the report be enlarged to include sanitary sewer and water improvements to these areas to avoid the duplication of cost which would occur if street improvements had to be removed and replaced for water and sewer im- provements in the near future. A previous report on Project No. 164.dated June 17, 1975 considered water and sewer improvements to this area. After a public hearing, that project was turned down as being premature for the area involved.' Since 1975, trunk sanitary sewer and water have been extended east on Wilder- ness Run Road to the west edge of Section 26. It will require approximately a 1k miles extension further east to reach Dodd Road. At that point, the trunk sewer can be divided into two sub trunks. Page 1. One will extend north an Dodd Road to Co. Rd. 30 and there terminate. It will receive sewage from approximately 1,000 acres north of Co. Rd. 30 in the future when it develops and will serve another 100 acres of land on either side of Dodd Road south of Co. Rd. 30 including laterals from Lakeside Estates and Saddlehorn Addition. The other branch is proposed to extend south on Dodd Road to Cliff Road and will eventually be extended east on Cliff Road and south of Dodd Road to serve the balance of the southeast corner of Eagan and a portion of Inver Grove Heights. The proposed routing of this portion of the trunk sewer along the south edge of the lake in Lakeside Estates to South Oaks Addition as shown in the 1976 Master Plan is not considered as feasible as the proposed routing on Dodd Road due to the environmental problems involved along the lake and the fact that an improved grade of Dodd Road makes that route feasible. Trunk water main is proposed to be installed in Dodd Road from Cliff Road to Co. Rd. 30 as a 12" diameter trunk main. It will provide municipal water supply .and fire protection for all of the area. Both Saddlehorn and Lakeside Estates Additions are proposed to have lateral water and sanitary sewer lines with service stubs to each lot or existing home. Street improvements are " P proposed to include rst stage construction on"-Dodd� Road with grading, gravel base and surfacing of the center 24 feet. Widening to its proposed permanent width of 44 feet and the installation of concrete curb and gutter are recommended to be, deferred until future development in the area justifies. It is proposed that only a portion of the residential equivalent be assessed to benefited property along Dodd Road at this time and the balance be assessed when the surfacing and curb and gutter are completed. Dodd Road has been designated as a Municipal State Aid Street andwould- be at least partially financed by M.S.A. funds. Page 2. The streets within the Saddlehorn and Lakeside Estates Addition now consist of 30' wide gravel surfaces in place at the design grade. The new streets are pro posed to meet present City standards which are 32' wide gutter to gutter, surmount- able concrete curb and gutter and bituminous surfacing. In all cases, it is proposed that utility construction together with Dodd Road grading and the placing of gravel base would be completed during the 1979 construc- tion season. The installation of the concrete curb and gutter and bituminous sur- facing would be completed during the first part of the 1980 construction season. Within each addition, it is proposed to install both water and sanitary sewer laterals with service stubs to each lot. The streets would be restored to their present gravel surface condition immediately. All costs of the lateral systems and the residential equivalent of the street improvements will be assessed against the benefited property in the project. Costs of the trunk water main and trunk sanitary sewer will be recovered from area assess- ments for trunk oversize and latbral benefit from trunks will be charged where service is requested from trunk lines. Trunk storm sewer is not included in this project. It is anticipated that the necessary right-of-way for Wilderness Run Road and to increase Dodd -'Road from 33' to 50' wide half right-of-way will be provided by the adjacent property owners without charge. If so, open drainage on Dodd Road and Wilderness Run Road will be maintained with a minimum of cost ,for drainage structures at this time. Lakeside Estates Addition has lateral storm sewer installed and Saddlehorn Addition requires a minimum of incidental drainage. Trunk storm sewer will be required in the area in the future as more development occurs but can be deferred at this time. AREA TO BE INCLUDED: Saddlehorn Addition Lakeside Estates Addition NW'k, Section 25, T27N, R23W Page 3. SWk, Section 25 NEk, Section 26 ` NW14, Section 26 Nk, SEk, Section 26 N2i SWk, Section 26 COST ESTIMATES: The following cost estimates include 18% for engineering, legal, miscellaneous and assessment roll costs: Item City Trunks To Be Assessed Total Sanitary $ 496,300 $ 88,000 $ 584,300 Water Main 249,000 68,400 317,400 Service Stubs --- 308000 30,000 Restoration --- 54,400 54,400 Sub-Totals - Utils. $ 745,300 $240,800 $ 986,100 Street Improvements 352,300 91,400 443,700 Prev. Trunks within Area 70,200 TOTAL PROJECT COST , . . $1,097,600 $332,200 $1,500,000 LAKESIDES ESTATES LATERAL COSTS Item Cost Sanitary Sewer $ 62,200 Water Main 42,500 Service Stubs 24,000 Restoration 32,700 Utilities Sub-total $161,400 Streets 58,800 Total $220,200 1 -Dodd Road Cost Cost/FF Res. Equiv. Stage One $203,700 $19.60 y13:20 { Stage Two 148,600 14.30 4.30 $352,300 $33.90 $17.50 r Page 4. 0 m cn m >M Z x :U N PL M Z p0 D% LEXINGTON_ -7.—— ---- AVE- D-U m O0 c m D r ZO % �cnm<m ,— U) m . m �J m N 0 d 0 FC � Z � a D � a ,� r • DODD D V ROAD ' D rrl En y trJ o �d c j m A ASSESSMENTS: Assessments are proposed to be levied against the benefited property in accordance with current City policy. Lateral benefits from trunk sewer and water will be charged where applicable. Estimated assessments are as follows: Streets - Saddlehorn Addition . . . . . . . . . . . . . . . . .$1,300.00/lot Streets - Lakeside Estates Addition . . . . . . . . . . . . . .$1,300.00/lot ✓ Dodd Road — Stage One - Res. Equiv. . . . . . . . . . . . . .$13.20/ff Dodd Road - Stage Two - Res. Equiv. . . . . . . . . . . . . . . .$4.30/ff Sanitary Sewer, Water Main and Restoration - Saddlehorn . . . . . . . . . .. .$3,100.00/lot Sanitary Sewer, Water Main and Restoration - Lakeside Estates. . . . . . .$3,400.00/lot Service Stubs, Water and Sewer . .. . . . . . . . . . . . . . . . .$450.00/lot Lateral benefit from trunk sewer . . . . . . . . . .. .: . . .$10.75/ff Lateral benefit from trunk water . . . . . . . . . . .1. . . .. .$9.00/ff Trunk Sanitary Sewer Area Charge . . . . . . . . . . . . . . .. .$590/Net Acre `$280/Lot ✓ Trunk Water Main Area Charge . . . . .. . . . . . . . . . . .$590/Net Acre $280/Lott . Sewage Treatment Plant . . . . : . . . .. . .. . . . . ... . . . . . . .$500/Res. Water Supply and Storage . . . . . . . . . . . . . . . . . . . . .$250/Res. (o p I hereby certify that this report was prepared by me or under my direct supervision and that I am a duly Registered Professional Engineer under the laws of the State of Minnesota. Robert W. Rosene gate: August 30, 1978 Reg. No. 3488 Page 5. PROJECT #241 The following concerns should be addressed in order to calculate a method in which to resolve certain issues that have arisen relating to the final assessments for Project #241 . A. Establish a policy (Assessment Policy) for allowing the City to absorb certain expenses for certain projects authorized for public improvements within the community. B. Evaluate funds based on A above to determine whether .the City can absorb certain expenses without the benefit of a public improvement special assessment levy. C. To protect the City against a potential assessment appeal , an appraisal should be made of property benefitted by the public improvements . to determine whether the assessments levied are justified. D. Various mistakes were made by the Consulting Engineering firm when the original costs were projected; therefore, an investigation . should be made to determine whether that firm is liable for a part of the costs . E. The County Auditor will extend our date to levy the assessments allowing action to be delayed on the certification of Project 241 until the 10-21-80 meeting. F. The City Administrator can prepare a statement for the Mayor and City Council for the 10-7-80 meeting. An informational meeting conducted by the staff can be held if desired prior to the 10-21-80 meeting, if a delay is requested. Assuming a petition is received to release the present Consulting Engineering firm, it is suggested that the matter be taken under advisement and the people informed that the City Administrator is presently conducting a performance evaluation of the firm and that a report will be forthcoming. These concerns will be taken into consideration.