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
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Page 4.
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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.