06-22-2009 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, June 22, 2009 7:00 o'clock p.m. • (3.. MYRTLEWOOD UTILITYIMPROVEMENTS PROJECT ASSESSMENT HEARING, Continued) McMillan asked if there is the option to opt out of the water project. Kellogg noted the residents do have the option to opt out of the water main project but that they would need to pay all the costs up front if they decide at some point in the future to connect to the water main rather than have the costs assessed over a period of time. Kellogg stated if four of the residents choose not to proceed with connection to the water main at this time, the cost to the City would be $40,000. Mattick stated to his understanding the property owner had to attend the assessment hearing tonight and state that they would like to opt out. Ryan noted four of the residents are represented tonight. Ryan noted there are also three properties currently for sale. Mattick concurred that immediate hook -up is not mandatory, but that if they choose to go forward with the water project at a later point in time, they would be required to pay the entire costs up front. Franchot asked how the City funds the portion that they would be required to contribute Olson indicated it would come out of the water fund. VOTE: Ayes 5, Nays 0. • b. Award Construction Contract — Resolution No. 5845 Bremer moved, Franchot seconded, to adopt RESOLUTION NO. 5845, a Resolution Awarding the Bid for the Myrtlewood Utility Improvements Project to GM Contracting, Inc., in the amount of $215,774.03. VOTE: Ayes 5, Nays 0. C. Approval of Change Order No.1 Kellogg noted Change Order No. 1 is the additional work necessary to provide sewer and water to 850 and 875 Wayzata Boulevard. Kellogg stated no assessment notices for the additional work were sent to these two property owners since the exact costs were not determined until recently. Mattick stated the City would expect the property owners to bear the costs associated with this change order and that it makes economic sense to proceed with the work in conjunction with the Myrtlewood project. A waiver of assessments could be drafted for the two property owners' signature and the change order could be approved at the next council meeting. The developer of 875 Wayzata Boulevard indicated he met last Thursday with Kellogg and that they would like to proceed forward with their project and that at the present time they do not have any other way to provide sewer and water to the property. Kellogg stated if the Council awards the contract tonight, the soonest the work would commence would • be the week after the 0 of July, and that if change order number one is approved at the July 13'h City Council meeting, the work would not be delayed. PAGE 4 of 9