05-08-2000 Council Packet - Laserfiche WebLink

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Connection charges is only to reflect what the actual cost would be if this project was built at some point in the future. It is not a "penalty". If some homeowners hook up in 10 years at the 2000 connection charge amount, they would be paying a substantially lower cost by paying the 2000 connection charge with year 2010 dollars. This would be unfair to all those who are paying the full cost now. Staff recommends against eliminating the cost-of-living increase. Award of Contract The bid opening for this project was held on April 5th. A total of four bids were received. We have no previous work experience with the lowest bidder, Earth Burners of Duluth. Because of no previous experience with the lowest bidder, and lack of time to verify references before scheduling of the assessment hearing; the estimated assessment was based on the second lowest bid received. I have completed a reference check for this company and received favorable responses, so we are recommending award of the contract to Earth Burners. Since the assessment, listed in the hearing notice, was based on the second lowest bid; the total assessment, including the grinder pump allowance, can be reduced from $15,500 to $14,500. The two properties on South Brown Road that were added to the project, will be assessed $9,500, plus the costs for additional sewer to reach their properties, and an additional $5,000 for a grinder pump allowance if desired. The maximum assessment for these two properties, including the grinder pump allowance, will be $23,700 per unit. After construction is complete, and final costs are known the actual assessment can still be adjusted downward, in a revised assessment roll, before submission to Hennepin County in December. This assessment roll lists an 8% interest rate, past practice has been to lower the interest rate dependant on the interest rate received on the project bonds. Eight percent is the maximum interest rate that can be charged. The actual interest rate on recently completed projects has been 6.25%. Unless a large number of assessment appeal notices are received, we are recommending Council approval of the attached resolutions to adopt the assessment roll and award the contract for this project to Earth Burners Inc. Duluth Minnesota in the amount of $215,120. COUNCIL ACTION REQUESTED; Motion to approve resolution adopting the assessment roll for the Weber Hills Sanitary Sewer Project. Motion to approve resolution awarding the contract for the Weber Hills Sanitary Sewer Project to Earth Burners Inc., Duluth Minnesota in the amount of $215,120.