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I I I Council Meeting Minutes July 27, 1999 Page 3 Public Hearing. continued The higher costs resulted in higher assessment rates than what was presented on April 27, The City Attorney advises a new public hearing be held to allow residents to express preference to either proceed or postpone the project. The streets are programmed for reconstruction in 2003, and the alley could be postponed to that time, Since costs will not likely be less in four years and due to the alley's poor condition, staff recommends the project be performed in 1999 in spite of higher costs. Midwest Asphalt has agreed to a change order that will lower the bid by eliminating the concrete curb and gutter removal and replacement, and reduce the amount of sod. The curb and gutter replacement could be performed in 2003 when the streets are reconstructed, The change order will reduce the low bid to $167,138,75, The proposed assessment rate with the revised low bid provides an increase of 27 % over the original estimate. The project as approved, specifies 25 % of the alley reconstruction costs paid by the City and the remaining 75 % through special assessments against benefitting properties on front foot basis. The proposed assessment rates would increase from $6,62/ft. to $8.44/ft. Staff mailed out notifications to affected property owners on July 15 explaining the bid results and staff recommendation. Since that time, only a handful of calls were received and only one call in opposition to the project. Larson believes deferring the project would eliminate the inconvenience of two projects occurring within a four year period. He feels staff has performed an excellent job and the project is needed, but is hopeful a better price could be had by combining with an upcoming street project. Gunderman agrees with Larson's comments, City Engineer Les Proper said that although larger projects may cost less, this project received a very favorable bid and inflation over the next four years could increase the projcct price, The condition of the alley is very poor, and residents would need to deal with the deterioration over the next four years. Benke asked if additional maintenance is needed if the project was delayed. Proper feels that repairs would not provide great improvements over existing conditions, and maintenance could be costly, Benke noted one advantage to performing the work now is that residents could access the alley for parking during the street project. Olson verified that the contract deadline could be extended to October 1, Hoffman asked if there are any factors which pertain to proceeding now versus waiting. Proper does not believe the alleys are unsafe, but maintenance will not improve their condition. Olson noted that a combined project would create a larger assessment rate, Jeff Nelson, 684 8th Ave. NW, supports the construction, Benke noted a letter received from Michelle Miceli, 533 10th Ave. NW, who does not support the alley reconstruction, Paul Reiling, 503 9th Ave. NW, noted a sink hole located near the alley's storm sewer which continues to worsen, Public Hearing Hansen Park Alley Reconstruction and Bid A ward Report 99~ 175 Resolution 99-071