Lenwood Heights costs escalate

This really sucks, I don’t like it but there is really not a choice in my book.  The big picture is this is what happens without long term regional planning.  Moral of the story, do it right the first time.  In the interest of transparency, here is some more information from Gary Neumann.

Mayor and Council,

I requested that the Public Works Department staff provided some additional information relating to the costs for the Lenwood project that is the subject of D-18.  Due to a number of factors, as is detailed in the attached information from Jim Loehr, the project award would be over-budget by about $435,000.  Some of this is due to new storm water costs and watermain looping costs that were not originally part of the project and will be covered from utility funds. In addition some of the costs can be paid with the anticipated remaining balance in the sales tax water quality program.  The remaining estimated $225,000 would be recommended by this office to come from sales tax funds.  The City did commit to a maximum capped cost with the property-owners so increasing their costs does not appear to be a reasonable option.

Despite the higher than anticipated costs, this office still does strongly recommend proceeding with the project.  First, from an environmental perspective, this area is one in which several septic systems have already failed and been replaced, some more need replacement now, and many more will likely need replacement soon.  It is an area that is a perfect example of why we needed to use some sales tax funds to correct failing septic systems in older subdivisions.  While the City subsidy for this subdivision will end up being the highest for the WQPP program, it is also the last of the neighborhoods that we identified that would be top priorities for new utility services from the City when we created the program.  It will never get any easier or any cheaper to correct this bad situation (not that it has been easy or cheap) to work with this subdivision to fix this problem with their individual septic and well systems. It will be a great improvement for the neighborhood and a significant improvement for the City to have this subdivision switch from septics and wells to City sewer and water.  It is a good public health, safety and welfare project.

Any questions or concerns, please call me.

and here is more info from Public Works:

At the City Council meeting of August 6, 2012, the City Council will be requested to award a contract for the project to Elcor Construction in the amount of $1,772,450.20.   The estimated project costs used in the preparation ofthe Feasibility Repoit that was submitted for City approval on June 20, 2011 were based on a preliminary design analysis prepared by the City’s Council consultant engineer, WHKS & Company in 2009. The preliminary analysis Was performed at the request of the Lenwood Heights property owners. The property owners desired to know their maximum per lot charge for city sanitary sewer and Watermain. The unit prices used for the preliminary analysis estimate Were based on construction costs experienced during at that time. The preliminary analysis estimated a project construction of $1,337,015.00.

A partial explanation of the increased construction costs is as follows:

  1. Since 2009 there have been significant increases in oil and steel prices. Oil is used in the production of poly vinyl chloride sanitary sewer pipe, bituminous and for the operation of construction equipment. Steel is used in the production of ductile iron Water main pipe and pipe fittings. The unit prices bid by Elcor for this project reflect the increased costs of materials and construction operation costs from the year 2009 prices.
  2. Since the adoption of the project Feasibility Report Rochester Public Utilities requested a looping of the Watermain from the end of Brook Lane SW to Pine Ridge Estates Subdivision. This requested looping added approximately $150,000 to the preliminary 2009 estimate.
  3. In August 2011 the City of Rochester experienced a significant rainfall event. The dry Water Way that runs parallel to Brook Lane Was unable to accommodate the storm Water runoff experienced during this rainfall event. Localized neighborhood flooding occurred. The City determined that an existing 36”’ culvert Would needed to be upsized to accommodate the h3 eavy rainfall events. The construction cost for this culvert is $56,000.

Attached is the project Budget Data Sheet for the project that shows the Feasibility Report and Contract project construction costs and expense ofthe project. The Contract budget assigns additional costs to previously collect water Availability Charges, costs to RPU for Watermain looping and 18th Avenue crossing, costs to the Storm Water Utility for the 8’ X 5’ box culvert, increased oost to proposes an additional $150,000 of WQPP sales tax funds and approximately $226,000 of funding from unidentified sources.

Public Works respectfully requests Administration assistance in identifying the$226,000 in unidentified funding.

Thank you.

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