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May 13, 1980
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Adjourned Meeting - 12:00 Noon
An adjourned meeting of the Council of the City of Fort Collins was held on
Tuesday, May 13, 1980, at 12:00 noon in the Council Chambers in the City of
Fort Collins City Hall. Roll call was answered by the following Council -
members: Bowling, Gray, Kross, Reeves, St. Croix, and Wilkinson.
(Secretary's Note: Councilman Wilmarth arrived at 12:05 p.m.)
Absent: None
Staff Members Present: Arnold, Liley, Lewis, and Lanspery.
Executive Session Authorized
Councilman Bowling made a motion, seconded by Councilman St. Croix, to
adjourn into executive session for the purpose of discussing legal matters.
Yeas: Councilmembers Bowling, Gray, Reeves, St. Croix, and Wilkinson.
Nays: Councilman Kross.
THE MOTION CARRIED.
Bid Awarded for Construction Contract
on West Mulberry Street Improvement
District No. 74
Following is the City Manager's memorandum on this item.
The bids received for construction of street improvements on West Mulberry
Street were substantially higher than the estimated cost for the project.
The bids were expected to be higher than the original estimates for several
reasons:
0 Construction costs have increased by 30% since the inception of the
project due to asphalt, cement, and labor cost increases.
0 The contingency was increased to
of a drain line which was found
tion.
include the cost of reconstruction
needed during storm sewer installa-
135
May 13, 1980
9 The original cost estmate for the project was prepared in May,
1979.
In addition, interest rates have increased dramatically on the bonds
necessary to finance the project.
As a result, staff reviewed the project looking for funding in order to
award the construction contract, and looked at choices for handling the
increased cost of financing.
The recommendations for the project are that:
0 Budget transfers be made from several street projects that have
been reduced in scope or will be delayed to a later project sche-
dule.
0 The City pay the increased cost, estimated at $22,086 on an inter-
est rate of 11 112% because the cost of interest during construc-
tion was set at 6% in the ordinance forming.the district.
9 The City pay the 1 1/2% difference because the interest rate on the
improvement district bonds was anticipated to be not more than 10%
at the time the district was formed; the current rate is 11 1/2%.
These recommendations would result in increased City expense for construc-
tion cost and interest of $174,193; of this amount $129,157 would be
transferred from other projects in the current budget; the remainder would
be budgeted in subsequent years as interest comes due. :
Based upon these considerations, staff recommends award of the construction
contract to flatiron Paving Company in the amount of $357,535.50.
There are some other choices and staff memos are attached that discuss
these in more detail.
Councilman Wilkinson made a motion, seconded by Councilman Bowling, to
award the bid to Flatiron Paving Company. Yeas: Councilmembers Bowling,
Gray, Kross, Reeves, St. Croix, Wilkinson and Wilmarth. Nays: None.
THE MOTION CARRIED.
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May 13, 1980
Adjournment
Mayor Gray adjourned the meeting to May 20, 1980. The meeting �d.ourned at
2:15 p.m. n /) �
ATTEST:
�e�4ry City Clerk
137