HomeMy WebLinkAbout7A - MSA EngineersAGENDA NUMBER:
PREPARED BY:
SUBJECT:
DATE:
7A
LARRY ANDERSON, PUBLIC WORKS DIRECTOR
CONSIDER APPROVAL OF RESOLUTION 94-52, AWARDING
BID FOR PROJECT 93-02 (CARRIAGE HILLS PARKWAY
STREET IMPROVEMENTS) AND AUTHORIZE MSA
CONSULTING ENGINEERS TO PERFORM CONSTRUCTION
ENGINEERING SERVICES
AUGUST 15, 1994
INTRODUCTION:
BACKGROUND:
DISCUSSION:
The purpose of this Agenda item is to accept or reject the bids
received and to enter into a contract for the construction of Project
93-02. Resolution 94-52 has been prepared for Council action on
the award of bid. Also this Agenda item is for Council to consider
authorizing MSA Consulting Engineers to perform the
construction engineering services on this project.
On July 18, 1994, the City Council approved the Advertisement for
Bids for the improvement of Carriage Hills Parkway.
A bid opening will be held on August 15, 1994, and the results of
the bid opening will be presented to the Council at the Ineeting
with a recommendation for award.
Resolution 94-52 will be presented at the meeting with the results
of the bid opening included in the Resolution.
The City has submitted the plans to the State Aid office for their
approval to use Municipal State Aid Funds. Approval of the
Award of Bids needs to be contingent upon approval of the plans
by the State Aid office. The City is in the process of acquiring
right of way for the project. On August 11, 1994, the City has a
hearing to determine Public Need for the eminent domain
proceedings. The Bid Award needs to be contingent upon the court
determining Public Need for Project 93-02. The reason the City is
proceeding with the bid at this time is to reduce the City's
Municipal State Aid balance by September 1, 1994, so that the
1995 allocation will be higher by approximately $14,000.00.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
ALTERNATIVES:
RECOMMENDATION:
FINANCIAL IMPACT:
ACTION REQUIRED:
AG815B.ENG
The vast majority of work will be done in 1995. The contractor
will have the option of starting work in 1994 within the existing
right of way which was platted with the Carriage Hills Plat. The
contract documents prohibit work to be done in areas where the
right of way has not been acquired. The eminent domain
proceedings will provide the balance of the right of way to the
contractor in mid November, 1994. The contract documents allow
the City 90 days to award the contract in the event the
contingencies are not met prior to the meeting.
If the project bid is awarded, the construction engineering services
need to be authorized by Council. The construction engineering
work will be done on an hourly basis with a cost not to exceed
$41,475.00 without further authorization. The construction
engineering cost is approximately 8% of the estimated construction
cost.
The following is a list of the alternatives:
Approve Resolution 94-52 awarding the contract for
Project 93-02 to the lowest responsible bidder for the Base
Bid amount. Approve a motion authorizing MSA
Consulting Engineers to perform construction engineering
services for Project 93-02.
2. Do not approve Resolution 94-52 for specific reasons.
3. Table this item for specific reasons.
The recommendation will vary depending on bids received.
Project 93-02 will be paid for by Municipal State Aid Funds and
Ad Valorem Tax Levy, which was included in the 1994 bond issue.
Make a motion to approve or deny Resolution 94-52. Make a
motion to authorize MSA Consulting Engineers to perform
construction engineering services on Project 93-02 at a cost not to
exceed $41,475.00,.~ithout further authorization.
RESOLUTION 94-52
RESOLUTION ACCEPTING BID FOR PROJECT NO. 93-02,
(CARRIAGE HILLS PARKWAY IMPROVEMENTS)
MOTION BY:
WHEREAS
, SECONDED BY:
pursuant to an advertisement for bids for the street construction
improvement project on Carriage Hills Parkway by the consu'uction of
grading, sanitary sewer, watermain, storm sewer, aggregate base, concrete
curb and gutter, bituminous surfacing, sidewalk, landscaping, and
appurtenant work; bids were received, opened, and tabulated according to
the law, and the following bids were received complying with the
advertisement:
CONTRACTORS
BASE BID
o
AND WHEREAS, it appears that
of
is the lowest responsible bidder.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA, that
The Mayor and City Manager are hereby authorized to enter into the attached
conU'act with , of
in the name of the City of Prior Lake for the street construction improvement
project on Can'iage Hills Parkway by the construction of grading, sanitary sewer,
watermain, storm sewer, aggregate base, concrete curb and gutter, bituminous
surfacing, sidewalk, landscaping and appurtenant work; according to the plans and
specifications therefore approved by the City Council and on file in the office of
the City Managen
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
o
The City Manager is hereby authorized and directed to return forthwith to all
bidders the deposits made with their bids, except that the deposits of the successful
bidder and the next two lowest bidders shall be retained until a contract has been
signed.
Award of the Bid to is contingent upon the
plans and specifications for Project 93-02 being approved by the office of State Aid
and Scott County Court determining public need for Carriage Hills Parkway.
Passed and adopted this 15th day of August, 1994.
Andren
Greenfield
Kedrowski
Schenck
Scott
YES NO
Andren
Greenfield
Kedrowski
Schenck
Scott
Frank Boyles
City Manager
City of Prior Lake
{Seal}
PROPOSED CARRIAGE
HILLS PARKWAY
KNOB HILL
LOW]
AMEND~ NO. I TO
_THE CITY_0F .P~IOR LAKE
DEVELOPMENT AGREEMENT
THE WILDS ~OLF CLUB
RESIDENTIAL pLAN UNIT DEVELOPMENT
THIS AME,N-DMENT NO. 1 is made this day of ,
1994, to that certain Development Agreement dated October 22,
1993, (the "Agreement"), by and between the City of Prior Lake, a
Minnesota municipal corporation (the "City"), and Prior Lake
Development, L.P., a Minnesota limited partnership ("Developer").
RECITALS
WHEREAS, Deveicper and City entered the Agreement Uo develop
certain property in the City; and
W~{ERFF. AS, Developer has requested certain amendmen~ be made
to the Agreement; and
WHEREAS, the City Council of the City at City Council
meetings on August 1, 1994 and August 15, 1994, agreed to certain
amendments to the Agreement as being in the best interests of
both parties.
NOW, THEREFORE, in consideration of the mutual covenants and
guarantees contained herein, the parties hereto agree as follows:
1. Section 6.21 of the Agreement is hereby modified and
replaced as follows:
6.21 Se~u~itY for Pa~ent and PerfQrmance- For the
purpose of assuring and guaranteeing =o the City =hat the
Developer Improvements to be constructed, installed and
furnished by the Developer as set forth in the Agreement
for the improvements in the plat of Sterling South and shall
be constructed, installed and furnished according to the
terms of this Agreement, and to ensure that the Developer
shall pay all claims for work done and materials and
supplies furnished for the performance of this Agreement,
and for the improvements contemplated in the Developer's
Agreement for the plat of Sterling South. The Developer
agrees to furnish to the City with the Letter of Credit and
the ~a~ent and Performance Bond as follows:
(a) The Letter of Credit in the amount of
$1,000,000 to secure the Agreement and the contemplated
improvements set forth in the Developer's Agreement for
Sterling South in the amount of $858,335, which amount
represents 125% of the estimated cost of improvements
for Sterling South.
o
(b) The Pa?~ent and Performance Bon~ in the
amount cf $4,048,¢95 to secure the improvements
contemplated by the Agreemen~ ~ogether with the
improvements contemplated by the Developer's Agreement
for Sterling South. The Developer Improvements
estimated by the Developer's engineer and approved by
the City Engineer for the Agreement are set out in the
Developer and City Cost Summary attached as E~hibit C
for the Wilds Phase I and Exhibit D for Sterling South.
Upon final completion of the Developer Improvements
satisfacto~f to the City Engineer as contemplated by
the Agreement as well as those contemplated by the
Developer's Agreement for Sterling South, the City
Engineer shall accept the completed-Developer
Improvements for both projects, in writing. The
warranty Period (twelve [12] months) shall begin on the
date of completion. During the Warranty Period, the
Developer shall submit a warranty bond in the amount of
$750,000 and a Letter of Credit in the amount of
$421,667 to the City for any and all costs of
maintaining or repairing the Developer Improvements
contemplated by the Agreement and the Developer
Improvements contemplated by the Sterling South
Developer's Agreement, during the Warranty Period.
Section 6.28 of the Agreement is hereby modified and
replaced as follows:
6.28 Permanent Sani~.ry Sewer_.Syste~. The Developer
shall commence construction of the permanent gravity off-
site trunk sanitary sewer system on or before June 1, 1995.
The construction shall be completed on or before August 1,
1995. The off-site trunk sanitary system shall extend from
The wilds to the Metropolitan Waste Control Commission
(MWCC) interceptor running along County Road 21 and shall be
constructed in accordance with the approved engineerin~
drawings. The Developer understands and agrees that there
shall be no further extensions of the above completion date
granted tc the Developer by the City. In addition, the
- 2 -
! I'
Developer acknowledges and agrees that in consideration of
the City granting this extension of the completion date from
October 1, 1994 to Au~dst 1, 1995, Developer waives any
claims it might othe_~wise have had for reimbursement for the
incremental costs of oversizing or for extra depth
construction as defined in the Agreement or for any other
costs associated with the construction of the permanent
sanitary sewer system. The Developer is responsible for
construction of the sanitary sewer line along County Road
82. The original plans called for this line to be a 15 inch
DIP pipe. The Developer shall install either an i8 inch RCP
or 18 inch DIP sanitary, sewer pipe. The class of pipe will
be approved by the City based upon the structural strength
of the pipe and the depth of bury. In the event an lS inch
DIP is used, the pipe will be encased in plastic. The
Developer will be responsible for temporary pumping of the
sanitary sewer until the permanent sanitary sewer is
completed. The parties agree that the City has reimbursed
the Developer for the incremental costs of oversizin? or for
the extra depth construction as defined in this Agreement.
3. Section 6.29 of the Agreement is hereby modified and
replaced as follows:
6.29 .~r.~anent Water System. The Developer shall
complete construction of the permanent water system (the
Permanent Water System) includin? the water booster station,
on or before November !, !994. The Permanent Water System
shall include the off-site water main, the booster station,
and the water distribution system depicted on and
constructed in accordance wi~h ~he approved engineering
drawings. The specifications and engineering drawings for
the booster station shall be approved by the City and the
Minnesota Department of Mealth prior to initiation of
construction. The Developer shall bear all costs related to
the construction of the Permanent Water System, including
the booster station, and the first phase water distribution
system, except the standby generator for the booster sta%ion
which shall be trailer mounted and oversized as requested by
~he City. The City will reimburse the Developer in the
amount of $30,000 for the expense of furnishing a portable,
oversized standby generator.
4. Section 6.30 of the Agreement is hereby modified and
replaced as follows:
6.30 The Agreement provided that the Developer was
responsible for estimated additional construction costs of a
water main of $42,000 for the construction of the water main
along the south right-of-way of County Road 82. In
- 3 -
AUG-i$-/99m !1:52 ~ROM LOMMEN-NELSGN. MPLS. TO 944?4245 m.05
consideration of the DeveloPer looping the water main
connection to Fremont Road, the City agrees to waive the
additional $42,000 estimated additional cons~-~uction cost as
originally required in paragraph 6.30 of the Agreement.
5. . Paragraphs tl and 14 of Exhibit I to %he Agreement are
hereby amended to read as follows:
11. The Developer will be responsible to pay for
improvements to County Road 83 when ~he roadway is widened
to a four lane facility. The Developer's cost will be
determined by pro-rating the cost of the improvements from
wilds Trail, to and including the intersection of County
Road 83/CSA}t 42, and the Developer shall pay {7/32) -
21.875% of the improvement cost. To secure the Developer
financial obligations for these contemplated improvements,
the Developer shall execute and deliver a Confession of
Jud,c~nent substantially in the form of Exhibit K and shall
comply with all of the financial covenants set forth on
Exhibit L attached hereto and incorporated herein.
14. Except as modified by paragraph 11 above, the
Letter of Credit shall remain in effect until the Warranty
Period expires for the improvements to be constructed within
the scope of the Agreement.
6. City and Developer agree that no financial aspect of
the Agreement will be amended except as contained on this
Amendment No. 1.
7. Except as amended, modified or changed by %his
~endment No. 1 to the Agreement, all other covenants, provisions
and/or guarantees of the Agreement shall remain in full force and
effect.
DEVELOPER:
PRIOR LAKE DEVELOPMENT, L.P.
CITY OF PRIOR LAKE
By: RRB, Inc., Its
General Partner
By
Richard Burtness
Its
Its Mayor
By
Its City Manager
- ¢ -
m~JG-15-199~ 11:~6 FROM LOMMEN-NELSON, MPLS. TO 9~7~2~ P.02
EXHIBIT K
STATE OF MINNESOTA
DISTRICT COURT
COUNTY OF SCOTT
FIRST JUDICIAL DISTRICT
City of Prior Lake, a
Minnesota municipal
corporation,
Claimant,
vs.
CON~ESSION OF JUDGMENT
Prior Lake Development,
L.P., a Minnesota limited
partnership,
Respondent.
The City of Prior Lake, a Minnesota municipal corporation,
(hereinafter referred to as "City"), and Prior Lake Development,
L.P., a Minnesota limited partnership (hereinafter referred to as
"PLD"), execute this statement and Confession of Judgment
pursuant to Minnesota Statutes, §~545.22 and 548.23, and as and
for such purpose jointly and severally state, and agree as
follows:
1. On October 21, 1993, PLD and City executed a
development agreement whereby the Developer agreed to develop
certain property in the City. Said Agreement was subse_c/uently
amended by Amendment No. 1 entered into as of the day of
August, 1994 (collectively the "Development Agreement"). As a
condition for the City executing Amendment No. I to the
Development Agreement, PLD agreed to enter into this summary
Confession of Judgment to secure certain obligations of PLD under
=he terms of the Developmen~ Agreement, in place of providing the
City with a Letter of Credit and with a Payment and Performance
Bcnd for certain future improvement obligations under the terms
of the Development Agreement.
2. Paragraphs 11, 12 and 13 of Exhibit I of the
Development Agreement requires that the Developer pay for
improvements to County Road 83 when the roadway is widened to a
four lane facility. PLD's cost for said improvements is based on
a formula as follows: 7/32 (21.875%) of the cost for widening
the roadway to a four lane facility from Wilds Trail to and
including the intersection of County Road 83/CSHA 42. PLD
Aid~--iS-199~ 12:~3 ~ROM LOMMEN-NELSON, MPLS. TO 9~?~2~5 P.02
covenants and agrees that i% will promptly remit its prorata
share of the improvement costs of paragraphs 11, 12, and 13 of
Exhibit I of the Development Agreement to the City upon receipt
of a written demand for payment from the City or in the event PLD
is in breach of the financial covenants contained in ~xhibit L of
the Agreement and issue a written demand for payment. In the
event PLD fails to pay the full amount of the demanded cost
payment within five (5) days after said written demand, then PLD
irrevocably authorizes and appoints any attorney designated by
City of any court of record in the State of Minnesota to appear
for it in any such court of record, waive on its behalf the
issuance of service and process and hereby authorize said
attorney to confess judgment against PLD, its successors and/'or
assigns for the amount of Five Hundred Thousand ($500,000)
Dollars. PLD further represents and agrees that said Five Hundred
Thousand ($500,000) Dollar sum certain does not exceed the amount
of the above contingent liability. Additionally, PLD agrees to
bear the costs of any action brought to confess judgment together
with reasonable attorneys' fees incurred by the City to enter
said judgment. PLD shall finally be liable for interest at the
legal rate on any judgment confessed pursuant to the terms
contained herein.
3. PLD hereby consents to the immediate execution of any
judgment confessed against it, waives any notice, waives any
right to service of process, waives any right to interpose any
defense or answer, and waives any stay of execution thereon. In
addition, PLD waives and releases all errors which may intervene
in such action and ratifies and confirms all that said attorney
may do in connection with such action or by virtue thereof. The
failure of City to enforce this Confession of Judgment in the
event of any failure to pay shall not constitute a waiver of the
right to do so at any subsequent time.
Dated: , 1994.
THE CITY OF PRIOR LAKE
Its Mayor
By
Its City Manager
PRIOR LAKE DEVELOPMENT, L.P.
Its
- 2 -
AUG-15-199~ 11:~? ~ROM LOMMEN-WELSON, MPLS.
TO
STATE OF MINNESOTA)
)
COUNTY OF SCOTT )
ss:
On this day of August, 1994, before me a Notary Public
within and for said County and State, personally appeared Richard
Burtness, to me known to be the President of RKB, Inc., a
Minnesota corporation and general partner of Prior Lake
Development, L.P., a Minnesota limited partnership, who being by
me duly sworn, did state and verify that Prior Lake Development,
L.P. is the limited partnership named in the foregoing
instrument, that the facts and statements set forth in said
instrument are true and correct to the best of his/her knowledge
and belief, and he/she executed the same as his/her own ~ree act
and deed.
Notary Public
THIS INSTRUMENT WAS DR~FTED
Lommen, Nelson, Cole & Stageberg, P.A.
1800 IDS Center (GRK)
80 South 8th Street
Minneapolis, ~N 55402
(612) 339-8131
AUG-l~-!994 I~:55 FROM LOMMEN-NELSON,MPLS RS TO 9~74~4S P.10
EXHIBIT L
Financial Covenants
As long as Developer's obligations set forth in paragraph I1 of
Exhibit i of the Development Agreement are not satisfied, the
following obligations of the Company under th~_s Agreement sh~ll
be absolute, unconditional, irrevocable, and shall be strictly
adhered to in accordance 'with the following terms, conditions and
obligations:
1. Transfer of A$$e~m. The Developer shall not, without
the prior written consent of the City, transfer its interest in
any of its assets having a fair market value in excess of Ten
Thousand ($10,000) Dollars to any entity, corporate, partnership,
individual or otherwise, for consideration of less than fair
market value.
2. Compliance with Environmental LawS. The Developer
shall comply with al! ecological, environmental, inland wetland,
pollution control and other similar laws, codes, regulations,
standards, and order applicable to the development which is the
subject of the Agreement and keep said property free from all
hazardous waste material and all other affluent or debris of any
type which would constitute a health hazard or risk or would
otherwise interfere with the current or intended use of the
properties of the Developer.
3. Debt Service Covetable To Ratio. Allow the debt service
coverage ratio to be less than 1.2 to !. Debt service coverage
ratio means, as of any date, the ratio of consolidated net income
for the Developer for the most recently completed four
consecutive fiscal quarters plus (i) all deductions for taxes
levied and respective income which are taken into account in
computing net income for such period and (ii) fixed charges
deducted in computing consolidated net income for such period to
the total debt service payment obligations and expenses of the
Developer incurred in its business.
4. C~ent. Ratlo. Allow the ratio of current assets of
the Developer to current liabilities of the Developer to be less
than 2 to 1.
5. Payment of all Dgv~loDer Obligations. The Developer
shall pay when due and payable, after giving effect to any
applicable grace period, the principal of or interest on any of
its indebtedness, unless the Developer's obligation to pay, or
the acceleration or required prepa.vment of, such indebtedness is
being contested or any right of set-off is being asserted by the
Developer in good faith by appropriate proceedings and adequate
reserves in respect thereof have been established on the books of
the Developer.
T !': 1
AUG-!~-199~ 1S:56 ~ROM LO~MEN-NELSON.~PLS RS TO 9~2~ P. ll
6. Judcments/Pro~in~_s. The Developer shall not cause
any judgment or order for pal~ment of money to be entered by any
court where a warrant of attachment or execution or similar
process be issued or levied against the Developer and such
judgment, order, warrant, or process shall continue unsatisfied,
undischarped or unstayed for thirty (30) consecutive calendar
days.
Developer shall not commence any voluntary case under
the Federal Bankruptcy Laws nor shall it file a petition seeking
to take advantage of any other laws, domestic or foreipn,
relatin~ to bankruptcy, insolvency, reorganization, a winding up
or composition for adjustment of debts make a ~eneral assignment
for the benefit of creditors or seek the appointment of a
trustee, receiver, custodian, liquidator, or the like over the
Developer or acquiesce to such an appointment.
7. Financial Statements and Information to be Furnished by
Develop~. As soon as available and in any event within thirty
(30) days after the last day of each month, balance sheets of the
Developer at the end of such monthly period of the Developer for
such period and for the elapsed portion of the fiscal year ended
as with the last day of such period, all certified as correct by
an officer of the company, shall be furnished to an agent of the
City. In addition, as soon as available and in any event within
ninety (90) days after the end of each fiscal year of the
Developer, an audited statement of assets and liabilities of the
Developer a5 the end of such fiscal year and the related
statements of income and cash flow of the Developer for such
fiscal year shall be ~urnished to an agent of the City. All such
financial stasements delivered pursuant to these financial
covenants shall be complete and correct and present fairly, in
accordance with ~enerally accepted accounting principles, except
for chan~es therein or %herefrom that are described in a
certificate or report accompanyin~ such statement and that have
been approved in writing by the Developer's then current
independent certified public accountants (if any) the financial
position of the Developer as at the respective dates on the
results of operations for the respective periods to which such
statements relate, and the furnishing of the same to the agent of
the City shall constitute a representation and warranty by the
Developer made on the date the same are furnished to the City to
that effect and to the further effect that, except as disclosed
or reflected in such financial statements, as at the respective
dates thereof, the Developer had no liability, contingent or
otherwise, or any unrealized or anticipated loss, that singly or
in the aggregate has had or might have a materially adverse
effect on the Developer.
$ = \$~ATA\i &?72G\G~\wi. LD$\EX]4IBIT. L