Laserfiche WebLink
Metadata
Document management portal powered by Laserfiche WebLink 9 © 1998-2015 Laserfiche. All rights reserved.
Connection charges is only to reflect what the actual cost would be if this project was built at some <br />point in the future. It is not a "penalty". If some homeowners hook up in 10 years at the 2000 <br />connection charge amount, they would be paying a substantially lower cost by paying the 2000 <br />connection charge with year 2010 dollars. This would be unfair to all those who are paying the <br />full cost now. Staff recommends against eliminating the cost-of-living increase. <br />Award of Contract <br />The bid opening for this project was held on April 5th. A total of four bids were received. We <br />have no previous work experience with the lowest bidder, Earth Burners of Duluth. Because of <br />no previous experience with the lowest bidder, and lack of time to verify references before <br />scheduling of the assessment hearing; the estimated assessment was based on the second lowest <br />bid received. I have completed a reference check for this company and received favorable <br />responses, so we are recommending award of the contract to Earth Burners. Since the assessment, <br />listed in the hearing notice, was based on the second lowest bid; the total assessment, including <br />the grinder pump allowance, can be reduced from $15,500 to $14,500. <br />The two properties on South Brown Road that were added to the project, will be assessed $9,500, <br />plus the costs for additional sewer to reach their properties, and an additional $5,000 for a grinder <br />pump allowance if desired. The maximum assessment for these two properties, including the <br />grinder pump allowance, will be $23,700 per unit. <br />After construction is complete, and final costs are known the actual assessment can still be <br />adjusted downward, in a revised assessment roll, before submission to Hennepin County in <br />December. This assessment roll lists an 8% interest rate, past practice has been to lower the <br />interest rate dependant on the interest rate received on the project bonds. Eight percent is the <br />maximum interest rate that can be charged. The actual interest rate on recently completed projects <br />has been 6.25%. <br />Unless a large number of assessment appeal notices are received, we are recommending Council <br />approval of the attached resolutions to adopt the assessment roll and award the contract for this <br />project to Earth Burners Inc. Duluth Minnesota in the amount of $215,120. <br />COUNCIL ACTION REQUESTED; <br />Motion to approve resolution adopting the assessment roll for the Weber Hills Sanitary Sewer <br />Project. <br />Motion to approve resolution awarding the contract for the Weber Hills Sanitary Sewer Project <br />to Earth Burners Inc., Duluth Minnesota in the amount of $215,120.