Time and cost of materials might be right for road work

Metro area cities are hoping to have better-than-expected news for assessment-shy residents this year as they piece together their summer road reconstruction plans.

As the municipal bidding process approaches in February and March, several city managers and public works directors said indications are that the combination of a low demand for contractors' time and improved prices for oil -- asphalt's base ingredient -- will mean resurfacing and rebuilding roads could cost from 10 to 20 percent less than in previous years.

"Municipalities are pulling back on the numbers and magnitude of projects, which is reducing the workload on contractors, and therefore they're becoming more competitive," said Marcus Thomas, a project manager for Bolton & Menk Consulting Engineers and Surveyors Inc., who is advising Arden Hills, Hopkins and Osseo. "The cities, I've found, have been proceeding cautiously and optimistically with their projects, hoping to see competitive bid results with contractors this spring."

Still, at public hearings, some cities have had push-back from residents who wonder whether this is the best time to seek thousands in assessments from recession-weary folks in affected neighborhoods.

Dan Connor challenged the Arden Hills City Council last month to take another look at whether to proceed with his Glen Arden neighborhood's reconstruction project, which may cost homeowners upwards of $8,500 in assessments.

"Some of us in the neighborhood don't feel there is a necessity at this time for such an improvement, but when you have a price point for a project at $8,000 per household in a very average middle-class neighborhood during these times, it's very difficult to take on that additional financial responsibility," he said last week.

The City Council heard concerns from a handful of residents and decided to proceed toward the bid process to reconstruct the 50-year-old streets.

Arden Hills City Manager Ron Moorse stressed that nothing's been signed.

"If the bids come in and aren't any better than they were last year, then we might say, well, we didn't get the bids we were hoping for and maybe we'll wait," he said. "If we get good bids, we'll say, either we go ahead with this now even though it might be difficult from a current economic standpoint."

Still, Moorse noted that the infusion of federal stimulus money for infrastructure projects, and the possibility that contractors will go out of business by next year, may make it even more important to get the work done now.

And there's something to be said for fixing the roads on time, said Kristine Giga, an engineer employed by the cities of Roseville and Arden Hills.

"If we listened to every neighborhood saying their streets are fine, and put it off 10 years, that's essentially a balloon payment for the city for reconstruction costs," she said. "For the city to maintain its system, we need to do smaller pieces at a time to avoid that balloon."

And Connor's concerns aren't unique. Some cities are keeping residents' views in mind as they discuss summer projects.

In Roseville, the City Council has instructed staff to look into developing an economic hardship policy as it plans a Roselawn Avenue reconstruction and utility project, said city engineer Deb Bloom.

Similarly, in Hopkins, residents of the Park Ridge neighborhood won't be assessed until the end of their two-year street and utilities project, giving them time to prepare and save, said city engineer John Bradford. And for those who choose to finance the $5,600 capped assessment, the city is offering a 15-year term, rather than the traditional 10.

Moorse paraphrased Mayor Stan Harpstead in articulating reasons to see the project through.

"We want to keep all of our neighborhoods vital, and making investments in them is important," Moorse said. "He and a number of the other council members were saying, let's go out and get the bids and we'll see."