Adopt Resolution R2021-053, ordering improvements and preparation of plans and specifications for the Utility Extension - Maras Street, 13th Avenue and Hansen Avenue Project Sewer-21-001.

Approve Resolution R2021-053.

On March 16, 2021, City Council received the feasibility report for the Utility Extension - Maras Street, 13th Avenue and Hansen Avenue Project.

Additionally, virtual informational meetings were conducted on July 21, 2020 and August 28, 2020, where property owners and tenants were in attendance to discuss the project and to provide the design team additional information about their neighborhood and properties relative to the project. A questionnaire was also mailed to property owners asking for information specific to the street, storm water drainage and utilities in their neighborhoods. All information is included in Feasibility Report (see attached).

In accordance with Minnesota Statute 429 and City Resolution R2020-012, a Public Hearing for the Utility Extension - Maras Street, 13th Avenue and Hansen Avenue Project, Sewer-21-001, is scheduled for this evening, April 20, 2021. Proper publication and notice for the improvement hearing have been provided.

City Council is advised to conduct a public improvement hearing for the proposed improvements associated with the Utility Extension - Maras Street, 13th Avenue and Hansen Avenue Project. Once the improvement hearing has been conducted, Council should then consider ordering the improvements in accordance with Resolution R2021-053 and authorizing the preparation of plans and specifications for the project. A presentation of the project will be made at the public improvement hearing.

This improvement project was not petitioned by the property owners; therefore, adoption of this resolution requires a 4/5ths vote.

The estimated total project cost is $5,368,000, which consists of estimated construction costs, contingency and engineering/administration/legal costs. The following Costs and Funding Summary provides the estimated amounts as planned in the 2021 Capital Improvement Plan and the attached feasibility report. 

The current estimate exceeds the CIP budget by $484,000. However, it is recommended to proceed with the project with the understanding that actual project costs will be determined once the project is bid, possibly resulting in a lower overall project cost. 

Additionally, it should be noted that while sanitary sewer costs are shown as being funded by the Sanitary Sewer Fund, this is the short-term funding source. The long-term, actual funding will be fully generated and paid by property owners/developers within the service area through the Trunk Sanitary Sewer, Lateral Sanitary Sewer and Individual Sewer Connection fees once the land is developed and/or connected to the sewer. These sewer project costs are 100 percent recoverable from the area it will serve, and no costs would be absorbed by other property owners outside of the project area.