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Home My WebLink About8A-Mushtown/Maple/Panama Reconstruction O� P 0 l®rl U M 4646 Dakota Street SE so* Prior Lake,NIN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: OCTOBER 13, 2014 AGENDA#: 8A PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTER: SENG THONGVANH AGENDA ITEM: CONSIDER APPROVAL OF TWO RESOLUTIONS FOR THE MAPLE LANE, MUSHTOWN ROAD, PANAMA AVENUE IMPROVEMENT PROJECT (CITY PROJECT#14-011): 1)APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS AND 2) APPROVING APPRAISED VALUE AND AUTHORIZING OFFERSTO BE MADE FOR THE PURCHASE OF REAL PROPERTY AT THE APPRAISED VALUES DISCUSSION: Introduction The purpose of this agenda item is to seek approvals from the City Council for the plans and specifications and authorize advertisement for bids for the Maple Lane, Mushtown Road, Panama Avenue Improvement Project as well as approving the appraised value and authorizing the officials to make offer to purchase interests in real property at the appraised values. History At its September 9, 2013 meeting the City Council adopted Resolution 13-126 authorizing staff to prepare a Feasibility Report for Maple Lane, Mushtown Road, Panama Avenue Improvement Project as outlined in the CIP and required for the Minnesota Statutes Chapter 429 process. The Minnesota Statutes Chapter 429 process is required because the City Council intends to specially assess for the improvements. The Maple Lane/ Mushtown Road / Panama Avenue neighborhood is considered in the report and includes improvements to Maple Acres, O'Rourke Addition, Parts of S 11, T 114, R 22 and Parts of S 2, T 114, R 22. These properties were platted and developed in the 1950's and 1960's. A map of the project area (Figure 1) is included in the Feasibility Report. The proposed improvements include street reconstruction, sewer and water construction, storm sewer, storm water quality, concrete curb and gutter, and appurtenant work. The Feasibility Report also includes total estimated costs, preliminary assessment amounts, and a project financing summary. Also included in the report are design criteria, estimates and information on watermain, sanitary sewer, storm sewer, and streets. Details on each can be found in the Feasibility Report. On November 12, 2013, the City Council accepted the feasibility report and scheduled the public hearing. The public hearing was held on December 9, 2013. Staff presented the original project plus three (3) options prior to the public hearing. A dozen or so residents spoke at the public hearing in opposition to the project. While it was recognized that Mushtown Road is in poor condition, the cost for the project as a whole was the major point of objection. The City Council tabled their discussion after closing the public hearing. The City Council communicated support for Option 3, which eliminated sanitary sewer and watermain on Maple Lane and provided services through a proposed easement between two properties on Maple Lane. It was estimated that the cost savings would be approximately $10,000 for this option. The City Council also asked that the following additional information be brought back on January 27, 2014. 1. Representative Appraisals 2. Options to reduce project assessment 3. Septic System Credit Information 4. Information on age and condition of the existing septic systems on the project 5. Additional traffic information for Mushtown Road Each of the items were reviewed and presented at the January 27th meeting. An additional Public Hearing was held on March 10, 2014. Staff presented the proposed improvements, funding mechanisms, and estimated assessment amounts based on the various funding contributions. There were five residents that spoke at the public hearing. Each of the comments or concerns were addressed at the public hearing. In addition to the Public Hearings, the City has held two informational meetings to discuss the project. The last informational meeting was an open house held on May 20, 2014 and offered residents the opportunity to comment on the proposed plans. At the open house persons from 21 homes were represented. City Staff explained the proposed design and passed out information regarding the various programs available. Since the open house, City Staff has been busy finalizing the design. Current Circumstances The project includes storm sewer, sanitary sewer, water main, concrete curb and gutter, aggregate base, bituminous surfacing, and appurtenant work. The construction of this project is proposed to be funded through special assessments, tax levy, Street Oversize Fund, Water Quality Fund, Clean Water Grant, and Trunk Sewer and Water Fund. 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 Engineering Department for review. Once the bids are received, City Staff will present the bids to the City Council for award. If the bids received are higher than expected, the City Council can elect not to move forward with awarding a contract. With completion of project design, plans and specifications will be submitted to the MPCA for the Clean Water Grant. The grant is proposed to contribute approximately $249,930 to the sanitary sewer components of the proposed improvements. Property acquisition on public improvement projects can be a long process. Property acquisition services are a special service which cannot be completed by City Staff. The City is using WSB and Associates for its property acquisition 2 expertise. In anticipation of the project construction in 2015 and the need for easement acquisition for utility installation along Panama Avenue, WSB and Associates has provided the property appraisals for the project area. ISSUES: Driveway Reconstruction and Lake Friendly Programs The driveway reconstruction program has been modified from previous projects. Private driveway bid items will be obtained for the project but all costs and agreements for private driveway reconstruction will be between the property owner and contractor. The contractor will be required to provide full private driveway replacement quotes based on bid item unit prices. The Lake Friendly Program was not offered to individual property owners for this project. Water Quality Funds will be used to provide additional capacity and treatment for the City's pond located north of Mushtown Road. FINANCIAL The Maple Lane, Mushtown Road, and Panama Avenue Street Improvement IMPACT: Project was originally proposed to be financed by Special Assessments, tax levy, Street Oversize Fund and Water Quality Fund. The following table reflects the original funding sources and amounts as well as the revised sources and amounts based on Option 3 and the alternative funding sources as recommended by the Assessment Review Committee at their February 12, 2014 meeting. The Assessment Review Committee also recommended reduction of the tax levy by the amount of the proposed grant contribution at its September 18, 2014. The Clean Water Grant contribution is proposed to be $249,930. Preliminary Funding Table Costs to be u dated once bids are received Funding Source Original Option 3* Change Assessments $1,217,294 $906,388 ($310,906) Street Oversize Fund $56,152 $131,186 $75,034 Water Quality Fund $30,000 $42,588 $12,588 Tax Levy $437,300 $138,454 ($298,846) Trunk Fund $0 $262,000 $262,000 Clean Water Grant $ $249,930 Estimated Project Total $1,740,746 $1,730,546 ($10,200) Cost Utilities Assessment (Per $24,362 $16,906 ($7,456) Unit Street & Utilities Assessment $35,575 $26,865 ($8,710) Per Unit *With alternative funding sources as recommended by the Assessment Review Committee The proposed assessment rate for the project area will be revised once bids are received. ALTERNATIVES: The alternatives are as follows: 1. Approve Resolution 14-XX approving plans and specifications and authorizing advertisement for bids for Maple Lane, Mushtown Road, Panama Avenue Improvement Project#14-011. 3 2. Approve Resolution 14-XX approving appraised values and authorizing the officials to make offer to purchase interests in real property at the appraised values 3. Deny this item for a specific reason and provide staff with direction. 4. Defer this item until a future date. RECOMMENDED A motion and a second for alternative#1 and alternative#2. MOTION: 4 O� 'PRIO ti U 4646 Dakota Street SE INPiESolP Prior Lake,MN 55372 RESOLUTION 14-xxx A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS AND AUTHORIZING THE ADVERTISEMENT FOR BIDS FOR THE MAPLE LANE, MUSHTOWN ROAD,AND PANAMA AVENUE IMPROVEMENT PROJECT#14.011 FOR THE CITY OF PRIOR LAKE, MINNESOTA Motion By: Second By: WHEREAS, Pursuant to Resolution 14-039, adopted on March 10, 2014, the City Engineer has prepared plans and specifications for the Maple Lane, Mushtown Road, and Panama Avenue Improvement Project (Project#14-011), 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 plans and specifications for the Maple Lane, Mushtown Road, and Panama Avenue Improvement Project #14-011, 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 City 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 13th DAY OF OCTOBER 2014. VOTE HedbergKeeney McGuire Morton Soukup Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager o� PRIO4P ti U 4646 Dakota Street SE INNES��P Prior Lake,MN 55372 RESOLUTION 14-xxx RESOLUTION APPROVING THE APPRAISED VALUE AND AUTHORIZING THE OFFICIALS TO MAKE OFFERS TO PURCHASE INTERESTS IN REAL PROPERTY AT THE APPRAISED VALUES FOR THE MAPLE LANE, MUSHTOWN ROAD,AND PANAMA AVENUE IMPROVEMENT PROJECT CITY PROJECT NO. 14-011 Motion By: Second By: WHEREAS, The City of Prior Lake, a Minnesota municipal corporation acting by and through the City Council and is authorized by law to acquire real property("Property") which is needed for public use or purpose; and WHEREAS, The City Engineer has ordered appraisals from WSB and Associates and has received full and final appraisals for the Maple Lane, Mushtown Road, and Panama Avenue Improvement Project, City Project No. 14-011 (the"Project"); and WHEREAS, It is necessary that the City obtain title and possession to the necessary easements by negotiation or condemnation before construction contracts may begin; and WHEREAS, The City wishes to make offers to property owners for the Property based on the appraisal values as presented by the City Engineer; and 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 appraised values are hereby approved. The City Manager, Public Works Director, City Engineer and City Attorney are hereby authorized to acquire the Property required for the Project in fee or by easement, through negotiation or condemnation and to make offers to purchase interests in real property at the current appraised values as presented by the City Engineer for the Maple Lane, Mushtown Road, and Panama Avenue Improvement Project, City Project No. 14-011. PASSED AND ADOPTED THIS 13th DAY OF OCTOBER 2014. VOTE Hedberg Keeney McGuire Morton Soukup Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager http://sp1ash/teams/am/0ctober 4 2010110 13 2014/Maple,Mushtown,Panama Appraisal Res.doc