Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Infrastructure topic
No spam. Unsubscribe anytime.
Council adopts deferred assessments and awards Scenic Drive water/sewer contract to Kotze Excavating
Summary
The council adopted deferred special assessments for Scenic Drive water and sanitary sewer projects, set assessment amounts and deferment rules, and awarded the construction contract to Kotze Excavating for $222,881.67.
The Fergus Falls City Council adopted assessments for two Scenic Drive utility projects and awarded the contract for construction after a final-cost public hearing.
City staff described two linked projects to extend sanitary sewer and water mains in the Pebble Hills/Scenic Drive area. Engineering originally estimated per-unit assessments of about $11,800 for sewer and $9,100 for water; competitive bids reduced the per-unit assessments to $8,415 for sewer and $7,700 for water, staff said. Total project costs presented were $1,103,035 for sanitary sewer (project PI 7224) and $186,700 for water (project PI 8231). Council was told that special assessments would be placed in deferred status until a parcel connects to the new utilities; no interest will accrue during deferral and property owners may prepay by the posted May 30 deadline to avoid future interest.
At the hearing a resident, Gerald Lineman, submitted and asked that his written objection be entered into the record; he asked that assessments be deferred, noting he purchased a lot to keep it from being developed and that the proposed assessment represented more than half he paid for the lot. Staff confirmed the notices had been mailed and described how the maps highlighted adjacent lots.
Council voted to adopt the assessments and to proceed with the project. The council then considered awarding the construction contract and, after discussion about the apparent low bid and city protections against overruns, approved a resolution awarding the Scenic Drive improvements to Kotze Excavating Inc. with a contract amount of $222,881.67. Staff explained that the city will absorb cost overruns unless the council holds a new assessment hearing; change orders would require council approval.
Staff said the city will fund its share from sewer and water funds built into the capital improvement plan; assessments qualify for bonding because more than 25% of project costs are assessed. Staff also provided a parcel-level assessment example: a single lot connecting would face roughly $19,001.65 in combined water and sewer assessments (7,700 + 8,415 + service fees shown in packet), payable over 15 years if connected, at the stated 5.5% assessment interest rate.
Council directed staff to finalize contracts and assessment documentation.
