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HomeMy WebLinkAbout5F - Bluffs of Northwood Meadows Street Construction Contract MEETING DATE: AGENDA #: PREPARED BY: PRESENTER: AGENDA ITEM: DISCUSSION: 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT JUNE 21, 2010 5F LARRY POPPLER, ASSISTANT CITY ENGINEER LARRY POPPLER, ASSISTANT CITY ENGINEER CONSIDER APPROVAL OF A RESOLUTION AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR STREET CONSTRUCTION FOR THE BLUFFS OF NORTHWOOD MEADOWS Introduction This agenda item asks the City Council to award a contract to complete the Developer Installed Improvements, mainly the final wear course of asphalt, for the Bluffs of Northwood Meadows. Historv On September 5, 2006, the City Council approved the Development Contact for the Bluffs of Northwood Meadows. Construction in this development, with the exception of final paving (wear course) and landscaping, was completed in the fall of 2006. On April 7, 2009 the City found the developer, Manley Land Development, in default of their Development Contract with the City. One of the remedies of the Development Contract is to freeze building permits for the project. The City froze the issuance of building permits at that point. On, June 15, 2009 the City Council approved an agreement with the Developer of the Bluffs of Northwood Meadows. Rather than freezing building permits completely, the agreement sets out the terms and conditions under which the City will release lots from the freeze and issue building permits. One of the conditions was that the Developer pay $36,000 to the City for the completion of the street improvements on Hawk Ridge Road in exchange for the release of eight building permits. This $36,000 fee has been received by the City and was used to pave Hawk Ridge Road and Visionary Heights Circle in 2009. The agreement also contains a condition where an additional $2,500 fee is collected on each building permit above the initial eight permits. These funds are held by the City to be used for completion of the wear course on the remaining streets and other outstanding items of the Development Contract. Current Circumstances The City has collected $2,500.00 from the builder on an additional 20 building permits. The account now has sufficient dollars to complete the wear course paving on the two remaining streets, Tahinka Place and Tahinka Court. R:\CoLlncil\2010 Agenda Reports\06 2110\BILlffs Northwood Meadows Paving Agenda.doc The remaining fees collected with the building permits for this project will be used to complete other outstanding Development Contract responsibilities including: rain garden construction, as-built drawings, retaining wall monitoring, legal expenses, silt fence removal, project cleanup, etc. The City received quotes from three asphalt paving contractors as tabulated below: Prior Lake Blacktop $28,169.50 Bituminous Roadways $28,869.00 McNamara Contracting $31,670.00 Conclusion The low quote was from Prior Lake Blacktop from Prior Lake, Minnesota in the amount of $28,169.50. Prior Lake Blacktop has worked for the City and developers on many Prior Lake projects. The most recent projects were Brooksville Hills Phase II and CR 21 Watermain projects. As the lowest responsible bidder, Prior Lake Blacktop is recommended by City staff to complete the remaining street improvements for the Bluffs of Northwood Meadows. ISSUES: The Developer of the Bluffs of Northwood Meadows is financially insolvent and therefore can't enter into a contract for the remaining work. The City has secured the dollars from builders to pay for the remaining work. FINANCIAL IMPACT: There is no financial impact on the City. The funds to complete the street improvements will come from the funds collected with the building permits. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution accepting bids and awarding the City's Standardized Construction Contract for street construction to Prior Lake Blacktop for the Bluffs of Northwood Meadows. 2. Deny this item for a specific reason and provide Staff with direction. 3. Defer this item until a specific date in the future. RECOMMENDED j'Alternative #1 MOTION: / .-----. R:\CoLlncil\2010 Agenda Reports\06 2110\BILlffs Northwood Meadows Paving Agenda.doc 2 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 10-xxx A RESOLUTION AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR STREET CONSTRUCTION FOR THE BLUFFS OF NORTHWOOD MEADOWS Motion By: Second By: WHEREAS, The Developer of the Bluffs of Northwood Meadows has failed to complete the Developer installed improvements required of it in the Development Contract; and WHEREAS, The Developer Installed Improvements that remain incomplete include bituminous pavement and appurtenant work; and WHEREAS, To assure the improvements are completed and the property owners who purchased homes in the subdivision are protected, the City has been charging a builders fee to pay to have the work at the Bluffs completed based on an agreement dated June 15, 2009 between the Developer and the City; and WHEREAS, City staff has solicited bids for the work and received three quotes; and WHEREAS, Prior Lake Blacktop of Prior Lake, MN submitted the lowest quote and is a responsible bidder; and WHEREAS, The City desires to assure the final wear course of bituminous is completed before the winter to prevent undue degeneration of the streets. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The bituminous work remaining in the Bluffs of Northwood Meadows was competitively quoted and Prior Lake Blacktop of Prior Lake, Minnesota is the lowest responsible bidder. 3. The Mayor and City Manager are hereby authorized to enter into the City's Standard Construction Contract with Prior Lake Blacktop of Prior Lake, Minnesota in the amount of $28,169.50 to complete the work in the Bluffs of Northwood Meadows. 4. Construction costs for the work in the Bluffs of Northwood Meadows will be paid from funds collected from the builders pursuant to the June 15, 2009 agreement between the Developer and the City. 5. Construction costs will be recorded in the Developers Agreement Fund, Account #260- 60112-501. PASSED AND ADOPTED THIS 21st DAY OF JUNE, 2010. YES NO I Myser I Erickson I Hedberg I Keeney I Millar Myser Erickson Hedberg Keeney Millar Frank Boyles, City Manager R\Collncil\2010 Agenda Reports\06 2110\BILlffs Northwood Meadows Paving ResolLltion.doc