05-19-2008 Minutes - Laserfiche WebLink

Road Advisory Minutes-May 19, 2008 2 Runaway inflation in highway construction costs is the primary reason for the shortfall. For example, in the County 17 project the largest individual cost item is the asphalt cement (or "oil"). In the days leading up to the bid opening the consultant estimated a unit cost of $225/ton. The estimate prior to the bid opening was revised to $450/ton. The lowest bid received for the County 17 project included a bid cost of $550/ton. The second low bid was $572/ton. Mr. Berndt was informed that prices contractors pay their suppliers inflated about 22% in the week prior to the bid opening. Bids were also opened on a project to add turn lanes to Cass County 10 west of Casselton at the intersection with Cass County 23. This is the road which will serve the ethanol plant. The project was designed assuming carry over costs from 2007 and/or by not completing an overlay project near the Perley Bridge on Cass County 26 would cover the project costs. This project bid came in higher than expected. This project is significant as it improves the intersection which will become very busy when the plant opens in the fall of 2008. Mr. Berndt said the Watson Township Bridge is used by the school bus and is in need of repair. He has even considered closing the bridge if it is not repaired. Historically, the County has not borrowed money to complete highway construction projects. Mr. Berndt stated that given the current inflation rates he feels it would make economic sense to make a budget adjustment and borrow money to complete the projects. He outlined the following options: 1. Award all projects: $2.5 million over budget; $1.6 million deficit fund balance. 2. Award Cass 17/6 and Cass 10 projects only; $1.6 million over budget; $650,000 deficit. 3. Award Cass 10 and reduce Cass 17 scope; $1.2 million over budget; $250,000 deficit. 4. Award Cass 10 and further reduce Cass 17 scope to cut another $250,000 5. Award Cass 10 project only. Defer Cass 17 project until 2009. Add other smaller projects in 2008 but stay within budget. Mr. Montplaisir stated that adopting an ordinance would allow the County to borrow the money for the projects. Mr. Berndt stated he feels construction costs will not come down. If the County decides to borrow the money projects would be scaled back in 2009. Mr. Berndt does not anticipate any other large projects in the near future. The committee members present would like to hold another Road Advisory meeting on June 2nd if time allows in the days schedule. Otherwise, this issue will be taken directly to the Cass County Commission for action. 3. ADJOURNMENT There being no further business, the meeting was adjourned at 3:15 PM. Minutes prepared by Cindy Stoick, Principal Secretary