Adopt Resolutions #24-097 and #24-102 Approving Change Order #1 for Improvement Project #24-02 and Petition and Waiver Agreement for Municipal Water Connection at 6014 157^th Lane NW.

Purpose:
The purpose of this case is to adopt Resolutions #24-097 and #24-102 approving Change Order #1 for Halls Dover Acres Street Reconstructions, Improvement Project #24-02, and the Petition and Waiver Agreement for municipal water connection at 6014 157^th Lane NW.
 
Background:
Included in the Halls Dover Acres Street Reconstructions project is the extension of trunk watermain along 157^th Lane NW, to complete a necessary trunk watermain loop. At the direction of the Public Works Committee, Staff sent letters out to property owners along the proposed watermain route, notifying of the ability to connect to municipal water as part of the reconstruction project.
 
After award of the contract, City Staff was contacted by the residents at 6014 157^th Lane with an inquiry to connect to city water. This change order includes the necessary work to extent a 1” water service line to the right of way at 6014 157^th Lane NW, which the property owner can then connect to.
 
Because no pay items exist in the project for the water service connection, Staff has worked with the Dave Perkins Contracting, the Contractor awarded the construction contract, on Change Order #1 to complete the necessary improvements, for a total amount of $2,253.00.
 
The trunk and lateral connection fees for this connection are $8,963.00 per City of Ramsey 2024 rates and charges. The property owners desire to assess the entire amount. The City considers this to be acceptable based on current policies and regulations.

Notification is not required.

Observations:
If the improvements proposed under Change Order #1 had been contemplated earlier and included in the plans, the bid prices would have reflected a commensurate increase in construction costs.
 
In order to allow costs to be assessed against the property, the property owners must enter into the attached Petition and Waiver Agreement, thereby waiving any rights to appeal the assessment. The attached agreement is currently under review by the City Attorney and may be subject to minor revisions.
 
The assessed amount will be spread over ten (10) years and will be charged interest in the amount of 2% over the rate at which the City sells bonds, or 2% over the 10-year treasury rate if the City does not bond for funding.

Alternatives:
Alternative #1 – Motion to adopt Resolutions #24-097 and #24-102 approving Change Order #1 for Halls Dover Acres Street Reconstructions, Improvement Project #24-02, and the Petition and Waiver Agreement for municipal water connection at 6014 157^th Lane NW.

City Staff recommends Alternative #1.

Motion to adopt Resolutions #24-097 and #24-102 approving Change Order #1 for Halls Dover Acres Street Reconstructions, Improvement Project #24-02, and the Petition and Waiver Agreement for municipal water connection at 6014 157^th Lane NW.