On the agenda are widening Highway 3 near Floyd Valley Hospital, improving Business 75 from Highway 3 to Airport Drive, curb and gutter work on Seventh Avenue Southeast (K-49), and curb and gutter work on Sixth Avenue West.
The council's agreement calls for DeWild Grant Reckert and Associates (DGR) to receive a total of $199,700 for services provided for the projects.
The projects have been approved for federal funding through Fiscal Year 2009, but engineering fees cannot be paid with that money, according to City Administrator Scott Langel.
He asked the council move ahead on the engineering services agreement so as to be in a position to receive the federal money when it becomes available.
The federal money, Surface Transportation Program (STP) dollars, is provided to the Iowa Department of Transportation by the Federal Highway Administration.
STP grants totaling $1,027,000 are expected to be forthcoming for the four projects.
Total construction cost estimates for the projects and STP funding for each in parenthesis include:
*widening of Highway 3 East near the hospital to Plymouth Street, $700,000 ($400,000 STP)
*rehabilitation of U.S. 75 to Iowa Highway 3 south of Airport Drive, $750,000 ($300,000)
*curb and gutter widening of Seventh Avenue S.E. from 12th to 18th Street, $200,000 ($150,000)
*and curb and gutter work on Sixth Avenue W. from Eighth to 12th Street, $172,000 ($117,000).
Langel said Tuesday construction costs of the projects "have increased 20 to 25 percent" since the city's initial application for the grants. He added, however, rejecting the grants could prove a hurdle to the city's success in getting similar grants in the future.
Councilman Rex Knapp, mayor pro-tem for Tuesday's session in the absence of vacationing Mayor Dick Kirchoff, said despite the council's approval of the project services agreement, caution was still be necessary on such projects because they impact the city's overall financial picture.
Local funding for the projects is currently coming from the Road Use Tax for the Highway 3, K-49 and Sixth Avenue/12th Street projects with Tax Increment Financing revenue a source for the city's share of the U.S. 75 project.
Langel said the DGR consultant engineers and he will evaluate cost changes as design for the projects develops and will recommend possible "scope changes" as necessary.
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