HomeMy WebLinkAbout9B Plans, Specs and Bids for Welcome Project (#12-012) O� p ��+P
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Prior Lake_ MN 55372
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CITY COUNCIL AGENDA REPORT
MEETING DATE: FEBRUARY 25, 2013
AGENDA #: 9B
PREPARED BY: KATY GEHLER, PUBLIC WORKS & NATURAL RESOURCES DIRECTOR
PRESENTED BY: KATY GEHLER
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS FOR
THE WELCOME INDUSTRIAL PARK IMPROVEMENTS, CITY PROJECT #12-
012
DISCUSSION: Introduction
The purpose of this agenda item is to ask the City Council to consider approval
of the plans and specifications and authorize advertisement for bids for the Wel-
come Industrial Park Improvements.
Hi StOry
On August 15, 2011, the City Council placed the Welcome Avenue Utility Ex-
tension in the CIP for 2012. This project contemplated the extension of water
and sanitary sewer along Welcome Avenue and Credit River Road to serve the
remaining parcels. This project did not include improvements to the road sur-
faces or accommodate surface water runoff from the area.
On October 17, 2011 the City Council ordered an update to the 2007 Feasibility
Study in preparation for the 2012 project. Through this process several work
sessions took place to discuss potential components of the project, benefits, and
synergies with other City priorities including:
1. Wellhead Protection Plan Compliance
2. Markley Lake Flood Protection Strategy
3. Economic Development Potential
4. Code Enforcement
5. Future Annexation Potential
In February of 2012 the City completed representative appraisals to gauge the
special benefit of each of the project components to the adjacent property own-
ers. The Assessment Committee reviewed the information provided and dis-
cussed the method of assessment. Due to the varied nature of the industrial
parcels, an assessment rate based on a dollar per area was recommended. In
addition the committee felt that due to the benefit of the public water supply, a
greater portion should be borne by the water fund, thus reducing the water and
sewer portion of the assessment.
The City Council reviewed the various options for the project at a May 7, 2012
work session and provided feedback on the draft feasibility study and projected
assessment methodology.
On October 24, 2012 and November 19, 2012 two project forums were held.
Information regarding the need for the project was presented and the partici-
pants contributed to an Implications Wheel exercise. 14 of the property owners
proposed to be assessed were represented along with several others impacted
by the project. A memo from Jane Kansier, the facilitator, is attached that out-
lines the results.
On November 13, 2012 the City Council accepted the Feasibility Study and set
the date for the Improvement Hearing. The hearing was held on December 10,
2012 and the Council adopted a resolution ordering the project and preparation
of plans and specifications.
Current Circumstances
The final plans and specifications for the Improvements have been completed.
The attached figure shows the proposed improvements. Pending approval of
the resolution presented, staff has tentatively set the bid date for Late March.
Note that during the design process, it was determined that the area was better
served by water and sewer if these utilities were extended along the north side
of the Industrial Park. In addition, the majority of the northern lot will have to be
graded to accommodate the ponding and address erosion. Therefore, it made
sense to, at a minimum, leave the grade to accommodate the future roadway.
Staff presented an option to add the construction of the road as a bid alternative
in the final design. Contractors will bid the construction of the road to an urban
section and the Council will determine whether to move forward with the alterna-
tive when the project is awarded.
Several additional City Council actions will be required prior to construction.
Once bids are received the final assessments will be calculated and the Council
will hold a second hearing, commonly called the Assessment Hearing. The As-
sessment Hearing gives property owners an opportunity to express concerns
about the actual special assessment. Finally, the council will be asked to award
the construction contract and adopt the assessments. At any point prior to the
contract award the Council may decide not to proceed.
Conclusion
At this point the project design is complete and it is appropriate to seek City
Council authority to advertise for bids. A copy of the plans is available in the
Public Works Department for review.
ISSUES: This project has shown to be complex as it has several driving forces, opportuni-
ties and funding concerns. These issues were reviewed with the Council at the
May 7, 2012 Work Session. A copy of the report can be found on the City's La-
serfiche site.
Related to this project, the City has been requested to consider repayment of
the developer, CJF Holdings, LLC, for the work completed in 2008. CJF Hold-
2
ings entered into a Developer's Agreement for the completion of the water and
sanitary sewer from Industrial Circle to Welcome Avenue. In exchange, the City
created agreements with abutting property owners for connection fees that
would pay for most of the improvement and collected as the connections were
made. Two connection fees are left to be collected as the properties are subdi-
vided in the future.
The Assessment Committee met on December 3, 2012 to review the request.
The Committee recommended that this item be considered as a separate item
from the current project and that options for repayment be explored with the de-
veloper. This item will be brought to the Council as a separate item in the fu-
ture.
FINANCIAL The project cost is estimated at $2,161,000. Funding for this project is proposed
IMPACT: to come from the Water Fund, Water Quality Fund, Trunk Fund, 429 Bonding
and assessments. The table below shows the preliminary financing break-
down.
Preliminary Financing
Water Fund $600,000
Water Quality Fund (Stormsewer upsizing) $50,000
Watermain Trunk Fund (Watermain upsizing) $20,000
Sewer Trunk Fund (Sewer extra depth) $20,000
Storm Trunk Fund (Markley Lake Flood Protection) $301,000
Potential Assessments $1,000,000
429 Bonding $170,000
An updated funding table will be prepared once bids are received.
ALTERNATIVES: 1) Approve Resolution 13-XX approving the plans and specifications and au-
thorizing advertisement for bids for the Welcome Industrial Park Improve-
ments.
2) Deny this item for a specific reason and provide staff with direction.
1. Defer this item until a future date.
RECOMMENDED No.1
MOTION:
3
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4646 Dakota Street SE
'�IN�so'��' Prior Lake, MN 55372
RESOLUTION 13-xxx
A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS AND AUTHORIZING THE
ADVERTISEMENT FOR BIDS FOR THE WELCOME INDUSTRIAL PARK IMPROVEMENTS, CITY
PROJECT #12-012
Motion By: Second By:
WHEREAS, Pursuant to Resolution 12-204, adopted on December 10, 2012, the Engineer has prepared
plans and specifications for the Welcome Industrial Park Improvement Project.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporatetl herein
2. The plans and specifications for the Welcome Industrial Park Improvements, a copy of which is
attached hereto and incorporated by reference herein, are hereby approved.
3. The City Manager shall prepare and cause to be inserted in the official newspaper of the City and in the
Construction Bulletin an advertisement for bids for the making of the improvement pursuant to the
attached plans and specifications. The advertisement shall be published not less than 21 days prior to
the bid opening, shall specify the work to be done, and shall state that the bids will be received by the
City Manager at which time the bids will be publicly opened at City Hall at 4646 Dakota Street SE by
the Engineer. No bids will be considered unless sealed and filed with the City Manager and
accompanied by a cash deposit, cashier's check, bid bond, or certified check payable to the City of
Prior Lake in the amount of five (5) percent of the amount of such bid.
4. The City reserves the right to reject any and all bids for any reason as determined solely by the City
Council.
PASSED AND ADOPTED THIS 25h DAY OF FEBRUARY 2013.
YES NO
Hedber Hedber
Keene Keene
McGuire McGuire
Morton Morton
Souku Souku
Frank Boyles, City Manager
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