Agenda Packets - 2009/03/09 - Laserfiche WebLink

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March 9, 2009 Item No. 7D Page 4 Once the economic slowdown ends, construction costs are likely to rise. If this happens by the start of 2011, then inclusion of Area C with the bids taken for Area B in January 2010 would have achieved a real construction cost savings compared to if the project for Area C were bid in 2011. 2. Savings On Maintenance Costs The streets in Area C are currently aged and in relatively poor condition. In 2006 the City Public Works Department estimated the annual expenditure for street maintenance, which primarily is spent on the streets included in the overall Street and Utility Improvement Program. Adjusting the 2006 estimate to current value and allocating it over the length of streets within the Program, the proportionate maintenance costs for the length of streets in Area C would be in excess of $10,000 for 2010. Reconstruction of the Area C streets in 2010 would not only eliminate those maintenance cost for that year, but for subsequent years as well. The reconstructed streets should be relatively maintenance free until their first seal coat approximately 5 years after construction. 3. Savings on Engineering Cost A combined project for Areas B and C would also result in a savings on engineering costs for the project. This is due to the fact that a set of construction plans and specifications can be prepared more economically for a larger project. In addition, other activities common to both areas would be done only once, rather than having to be done twice if the projects were separate. This would include items such as permit applications and the cost of advertising for the bids. Based on the current professional services agreement between Bonestroo and the City, we estimate the saving on engineering costs for a combined project to be approximately $20,000. In order for the Area B and C projects to be successfully combined, their schedules must also be compatible. A brief review of the status for each area is given below, followed by review of a potential combined schedule Area B – Status The feasibility report for Area B was completed in early 2005. A public hearing was held on the project, however the project was never ordered. At this point, it is recommended that a neighborhood meeting be held to reintroduce the specific elements of the project to the affected property owners. Once a successful neighborhood meeting was held, the next step would be to hold a public hearing to consider officially ordering the project and authorizing the preparation of the construction documents.