04-08-2015 Council Packet - Laserfiche WebLink

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To reiterate past discussions, this program makes sense to the City for the following reasons: • Centerville Road gets improved in 2015 versus being outside of the five year plan without this approach. • We are finally able to install a sidewalk along the east side of Centerville Road from Eli to Allen that links two key parks in the City. • We avoid construction inflation that our engineer estimates at 6% per year. On our estimated share of project costs ($800,000), this would amount to $96,000 for two years. To see how reasonable the 6% assumption is, I looked back at some recent city contracts for unit prices on common materials. Here is what I found: ✓ Common Excavation was priced at $10.20 per ton in 2011 and it was $13 in 2014. That is about an 8% increase per year. ✓ Class V (gravel) was $8.82 per ton in 2011 and was $15 in 2014. That is over 14% per year. ✓ Reclaiming asphalt (grinding in place) was $1.95 per sq. yard in 2012 and we paid $2.50 in 2014. That is about 13% per year. ✓ Asphalt was $57 a ton in 2011 and $71 in 2014. That is about an increase of 7.5% a year. ✓ Curb & Gutter was $8.82 per lineal foot in 2011 and we paid $12.00 in 2014. That is about a 10% annual increase in price. • The public works site need to provide for a drainage outlet. Without this project, we would have directed water to Pioneer Park (its current route). To pipe the flow would have cost around $100,000. We save that amount by addressing it as part of the road project. The quick math of our financing the County's share is currently estimated as follows: Estimated Costs of Bond Issuance - $47,750 Interest for Two Years on $2.25 million - $36,800 (coupon rate of 0.8%) Total Cost to Finance County - $84,550 Less: 6% hiflation - $96,000 LC Saves $11,450 Drainage Outlet Savings Est. $100,000 Expected Total Savings to LC $111,4 Because we do not have bid prices, we are indicating a possible financing of up to $3 million to give us flexibility. Hopefully it will be closer to the estimates above. To enable this project to continue to move forward, staff recommends the council adopt the attached resolution calling for a public hearing on "The Intension to Issue General Obligation Street Reconstruction Plan Bonds and the Proposal to Adopt a Street Reconstruction Plan Therefor". 2