Agenda Packets - 2009/03/09 - Laserfiche WebLink

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March 9, 2009 Item No. 7D Page 2 On September 22, 2008 the City Council adopted Resolution 7339 Authorizing Preliminary Survey Activities For Area C Of The Street and Utility Improvement Program. Discussion: Bids for the first project of the Street and Utility Improvement Program were received on January 29, 2009. The first project is known as the 2009-2010 Street and Utility Improvement Project, and consisted of Area A in the Program. The bids received for Area A were very good, with the low bid approximately 15% below the Engineer’s Estimate for the project. Likely factors contributing to the good bidding climate include the size of the project (approximately 5.0 miles) and the current economic situation. Area B of the Street and Utility Improvement Program is the area formerly proposed as the 2005 Street Improvement Project. It is located in the southwest corner of the City, west of Silver Lake Road and south of County Road H2. Area B has a length of 1.4 miles and is scheduled for construction in 2010. Area C of the Street and Utility Improvement Program is located approximately 1/2-mile directly east of Area B. It is bordered by Long Lake Road on the west and County Road H2 on the north. The length of Area C is approximately 2.7 miles, and it is scheduled for construction in 2011. A map of the overall Street and Utility Program is included with this Report for reference. In September of 2008 the City Council authorized the preliminary survey activities for Area C. This was done as a safeguard, in the event that the Area B project were to be delayed due to unresolved issues regarding the proposed Spring Creek Regional Pond. However, the Spring Creek Regional Pond issues have since been resolved, and the Area B project is currently anticipated to be constructed in 2010 as scheduled. Based upon the excellent bids received for the Area A project, the Streets and Utilities Committee expressed an interest in exploring the possibility of accelerating the schedule for Area C so that it could be combined with Area B, creating a larger project for 2010. The idea was that with the economic slowdown predicted to continue for at least 12 more months, a larger project bid in January 2010 may receive favorable bids as the Area A project had. At their meeting of February 17, 2009 the Streets and Utilities Committee discussed the subject of combining Areas B and C into a single project. To prepare for this discussion, the City Finance Director ran various analyses of the Street and Utility Improvement Program, based on current financial projections.