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11. Traffic Light Modification for Hwy 93 and MeridianTO: Honorable Mayor and City Council FROM: Al Thelen, Interim City Manage DATE: March 18, 1996 RE.: Meridian Road Extension/Signal Modification William Astle, representing Northwest Health Care (NWHC), has contacted City Attorney Glen Neier with a proposal whereby his clients would enter into a private contract with a qualified contractor to implement this road 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 road 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 they are 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 fund and complete the design work at a cost of $10,800 and agreed to do the contract inspection and administration of the contracts estimated at $2,000, for a total of $12,800. 1 The developers have agreed to privately contract for the work to avoid financing costs estimated to be approximately $20,000 and hope to cut another $20,000 from the construction costs by use of a private rather than a public contract. The city's current estimate of the road project is $103,225. The estimated costs of the traffic control signal is $15,000 and I recommend that we agree to pay half of this cost if the developer would do the same. Funds are available in the current budget to cover the city's share. It would result in the city providing a total contribution of $22,800 to this project. These monies come from the general fund and are equivalent to approximately one mill. If the Council's policy is to keep the "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 property taxes. At this time, I need your direction in order to respond to Mr. Astle's request. E