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Delays were also caused by Xcel power lines. As you may recall, staff vigorously pursued the replacement of the existing underground power lines at the urging of the neighborhood. This pursuit began well before the commencement of the project and was pushed again when the condition of the existing line became known during construction. Conflicting information was received from Xce1's field crews versus management. When it was all said and done, the existing lines remained. This required Xcel to "protect" them when the contractor was working close to them. The excavation of the street relative to the location of the power lines, made this an on -going problem. Significant delays (staff estimates three weeks) occurred before Xcel could provide crews to properly assist the contractor. Staff also believes delays were the result of Tower Asphalt using multiple subcontractors for a good part of the job. They attempted to coordinate their work to minimize mobilizations. This caused delays to cascade throughout the projects (Noel, Carla, and B2.) While each of the subs is proficient in what they do, delays associated with Tower's coordination were evident throughout the job. It should be understood that while staff had serious concerns with the way Tower managed this project, we do not want to portray them as inept. They are a very good paving contractor. However, their oversight of this project and attention to detail was lacking. • Why are we being assessed for the project at this time when it is not yet completed? Even projects that go very smoothly are assessed before project completion. (This was discussed at the time of the neighborhood meetings and improvement hearings.) While substantial completion can occur within the initial project year, we do not typically install the final lift (wear course) of asphalt until the following year. By doing so, we give the freeze /thaw cycle a chance to work on disturbed areas. If settlement becomes evident, we can then correct those areas before the final lift is installed to have the street in the best condition possible going forward. Please understand that this does not guarantee future settlement will not occur, but the most settlement will usually be present after the first winter. Another reason we assess after the first construction season goes to the method we finance the projects. The sooner they are assessed, the less carrying costs we have with a project. If we delay collection of our assessments without imposing carrying costs, we more rapidly drain down the funds available for other projects. This means we get less street projects done in the long run. • Is this a typical project for the City? The improvement projects for 2005 have not been "typical ". Carla Lane and Noel Drive experienced a number of inconveniences including lack of access after rains and lack of continued progress in an acceptable manner. While Carla Lane was going to be a challenging project given the water table, the soils, and existing conditions, it was not beyond reason. In 2004, the City installed water main and reconstructed streets in the -5-