Memo Thelan/Meridian Road ExtensionTO: Honorable Mayor and City Council
FROM: Al Thelen, Interim City Manager
DATE: March 18, 1996
RE.: Meridian Road Extension
William Astle, representing Northwest Health Care (NWHC), has
contacted City Attorney Glen Neier with a proposal to enter into a
private contract with a qualified contractor to implement this
improvement according to the plans and specifications that have
been developed by the City Public Works Department. Mr. Astle
requested that the city fund the traffic control modifications and
provide the construction inspection and administration of the
street contract. Mr. Babb advises that the city has spent $5,400
for the plan to modify the traffic control system, and has
developed the plans and specifications for the street improvements
at a cost of $5,400. Our procedure has been to administer
improvement contracts, whether it is accomplished through an S.I.D.
or a private contract. The city required the developers of The
Summit (NWHC) to sign a waiver of their right to protest a S.I.D.
for this improvement as a condition of approving their development.
At that time, the city agreed to have the design work completed in-
house and to contract for the design of the signal.
In summary, the city has agreed to pay $10,800 for the design work
that has been completed and agreed to do the contract inspection
and administration estimated at $2,000, for a total of $12,800.
The developers have agreed to privately contract for the work to
avoid bonding costs estimated to be approximately $30,000 and hope
to cut another $20,000 from the construction costs by use of a
private rather than a public contract.
The estimated costs of the traffic control signal is $12,500 and I
would recommend that we agree to pay half of this cost if the
developer would do the same. It would result in the city providing
a contribution of $19,050 to their project. These funds come from
the general fund and amount to approximately one mill. If the
Council's policy is to keep that mill levy as low as possible, in
the future the Council may want to fund projects like this entirely
from a Special Improvement District, avoiding the use of general
fund monies.
E