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REQUEST FOR COUNCIL ACTION <br />DATE: June 8. 1998 <br />ITEM NO.: | <br />Department Approval: <br />Name Gregory A. Gappa <br />Title Director of Public Services <br />Administrator Reviewed:Agenda Section: <br />Item Description: Assessment Hearing for Edgewood Hills and <br />Shoreline/Heritage Sanitary Sewer Project <br />;jUfi ST998 <br />CITYOFOnOMO <br />The assessment hearing for this project was based on the estimated project costs in the <br />feasibility study. The project bids were opened Friday morning. The lowest bid received at <br />$455,000 is $40,000 higher than the estimated cost in the feasibility study. The hearing has been <br />canceled and the property owners were sent a letter Friday notifying them of the cancellation and <br />need to schedule a new assessment hearing. <br />Most of the cost increases were in the prices for directional boring of pipe. The estimated costs <br />used for directional boring were based on discussions with boring contractors, and the prices <br />for directional boring in the 1997 sewer projects. There are several factors that may have <br />contributed to the increased boring costs. First is that the use of directional boring for gravity <br />sanitary sewer is a new technology and contractors may have initially underestimated the <br />difriculty in boring pipe at a specific grade. The other factor is that the directional boring <br />contractors are all very busy. Even with the increased costs, directional boring is still more cost <br />effective than open cut installation. Directional boring reduces the problems with access on dead <br />end roads and results in substantially less restoration and loss of trees. <br />The estimated assessment for the twenty units in the Shoreline/Heritage area will increase less <br />than the Edgewood Hills assessment because the Shoreline area project has less directional <br />boring. The estimated assessment increase for the Shoreline/Heritage area is from $19,100 to <br />approximately $20,600. The estimated increase for the eight units in the Edgewood Hills area <br />is from $21,140 to $24,140. This project had a large amount of directional boring. These <br />numbers are preliminary as the bids will need to be tabulated to verify accuracy, and the cost <br />increases prorated between the two project areas. Revised assessment costs will be presented at <br />the Council meeting. <br />Since the costs have increased from the assessment hearing notice, another assessment hearing <br />will need to be scheduled and officially noticed. This requires publication in the newspaper a <br />minimum of two weeks before the hearing date. The earliest possible hearing date is .Monday, <br />June 29th. This is the fifth Monday of the month with no other regularly scheduled meetings. <br />We are proposing an assessment hearing for 7:00 p.m. Monday, June 29th. The attached <br />resolution scheduling the assessment hearing needs to be approved. The resolution ordering <br />preparation of the proposed assessment also needs to be approved. The numbers need to be <br />inserted in this resolution before approval by the Council. <br />COUNCIL ACTION REQUESTED: <br />Approval of the resolution ordering preparation of the proposed assessment. The project cost <br />numbers will need to be added before Council approval of the resolution <br />Approval of the resolution scheduling an assessment hearing Monday, June 29th at 7:00 p.m.