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Home My WebLink About8D - 150th/TH13 Acquisition of Property O� FRIO+� ti U 4646 Dakota Street SE Prior Lake, MN 55372 .yl SO_ CITY COUNCIL AGENDA REPORT MEETING DATE: FEBRUARY 9, 2015 AGENDA#: 8D PREPARED BY: LARRY POPPLER, CITY ENGINEER/ INSPECTIONS DIRECTOR PRESENTED BY: LARRY POPPLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING ACQUISITION OF PROPERTY FOR THE 150TH STREET/TH 13 IMPROVEMENT PROJECT DISCUSSION: Introduction The cities of Savage and Prior Lake, along with Mn/DOT, have been working coop- eratively to develop the final design for the 150th Street/TH 13 intersection. As the project has developed, property acquisition costs have risen. The Cooperative Agreement with the City of Savage requires that the City of Prior Lake provide writ- ten approval of the property acquisition costs before the project proceeds to the next phase. We are in receipt of a letter from Savage requesting that we either authorize the project to proceed or not. History In response to concerns regarding safety at the TH 13/150th Street Intersection the Cities of Prior Lake and Savage initiated a joint intersection improvement study in 2007 with the final report date of February 12, 2010. This study area includes TH 13 between 152nd Street and Rustic Road. Once the study was complete an Intersection Control Evaluation (ICE)was prepared and a concept layout was approved and each agency began programming the pro- ject in their respective Capital Improvement Plans. The original concept layout pro- vided a % unsignalled access at 150th Street, right in / right out access at Zinran, and a pedestrian underpass. Ultimately each agency settled on 2015 for construc- tion. Since the original study was commenced, a number of things have changed in the traffic intensity and patterns in the study area: 1. Construction of Aspen Academy Charter School at the intersection of Zinran and TH 13. 2. Residential Development along 150th Street just east of TH 13 adding addi- tional traffic. 3. Increase in traffic to and from the High School. In 2014, a feasibility report was prepared and included several alternatives for this project. Two alternatives were debated in September. Ultimately, on consecutive nights September 15 and 16, 2014 the Savage and Prior Lake City Councils se- lected Concept 513 along with a Cost Sharing Agreement for the project. Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com Concept 5B builds a signal system at 150th Street. The Cost of this alternative was estimated at $6,902,000. Current Circumstances A Project Management Team (PMT)was formed to provide guidance on the devel- opment of the final design for this project. The PMT includes representatives from the Minnesota Department of Transportation (Mn/DOT), SEH, and the cities of Prior Lake and Savage. PMT meetings have generally been held weekly since the Octo- ber City Council action in addition to a separate meeting to discuss easement ac- quisition coordination. The 60% plans were completed on December 29, 2014 which is consistent with the project schedule. The final design plans are scheduled to be completed by February 23, 2015. As the design process has commenced and detailed plans created, the work asso- ciated with the project including some of the project limits have changed. Some of the larger changes are highlighted below: • Option 5B did not include a left turn lane on northbound TH 13 at Rustic Road. As you may recall, Option 5G was considered during the concept de- velopment phase which included this left turn lane at an additional cost of $240,000; but it was not the final option selected by the two cities. Mn/DOT strongly supports the inclusion of this left turn lane and it has been included in the project design. • Option 513 showed the local road impacts on the Prior Lake side ending at the 150th Street/Estate Avenue intersection. In order to lessen the severity of a sag vertical curve (low point), the local road impacts extend about 250 feet further on both 150th Street and Estate Avenue. This has increased con- struction, engineering, and property acquisition costs. • There are currently 18 private parcels impacted by the project which is an increase from the preliminary design. The amount of property acquisition has risen from $862,000 to $1,030,150 • The design includes a narrower center median and shoulders on TH 13, re- ducing overall cost. • The final design also narrowed 150th Street adjacent to Bethesda Church which reduced the impacts. The property sketches are complete and the appraisals are now finalized. Offers will be extended to property owners in the very near future. The cost sharing agree- ment included a provision whereby the City of Prior Lake agreed to pay the differ- ence between the Concept 6C and Concept 5B in the estimated amount of $857,000. The agreement also included a provision whereby the City would pay for all acquisition costs in excess of$862,000. As a part of the cost sharing agree- ment, the Prior Lake City Council must give written authorization if the property acquisition costs exceeded 110% within 10 days notice from the City of Savage. Since the appraisals are complete and they show acquisition costs of$1,030,150 which is over 120% of the original estimate, the City of Prior Lake must give written authorization to proceed with property acquisition. In this case, property acquisition would cost the City of Prior Lake a total of$599,150 or$168,150 more than previ- ously estimated. The City of Savage officially requested approval of the additional property acquisition costs on February 2, 2015. 2 Conclusion Considering the higher cost that the City of Prior Lake must pay in accordance with the Cost Sharing Agreement, the City Council must decide if they wish to provide written approval for the property acquisition and continue with the project. If written approval is not granted, the project will be cancelled. It is recommended that the City Council determine if the project benefits are worth the additional costs esti- mated for this project. ISSUES: The Cost Sharing Agreement included the provision of allowing the City of Prior Lake to approve property acquisition costs if they exceeded 110% of the originally estimated $862,000 as a way to assure that the costs for the project do not get out of hand. However, the original preliminary design did not contemplate the extent of work in Prior Lake at the 150th Street and Estate Avenue. The work involved to build this intersection to MNDOT State Aid Standards is extensive and includes additional property acquisition and construction costs as a result. The project schedule is tight to deliver this project. The property acquisition process must move forward immediately in order to secure the necessary property within the timeframes needed to deliver the project. Written approval tonight is necessary to keep the project moving forward if that is what the city council desires. An amount of approximately $185,000 has been invoiced on final design so far. A great deal of work has occurred over the last month that has not yet been invoiced. In addition, another $71,000 has been spent for preliminary design. City Staff time for both the City of Prior Lake and Savage has also taken place. FINANCIAL The MNDOT contribution is proposed to be $2.102 Million. In accordance with the IMPACT: cost sharing agreement the Cities of Prior Lake and Savage will split the remainder of the cost the project including design, right of way acquisition, construction costs, and project support costs whereby the City of Prior Lake would pay $857,000 more than Savage and pay for property acquisition costs over the originally estimated $862,000. The current cost estimate below is partially based on current information and on estimates. A more refined cost estimate will be available within the month, but for the purposes of this agenda report is the best available estimate: Estimated Const. Costs * $6,237,390 Property Acquisition Proposed Offers Based on Appraisals $1,030,150 Legal Costs $19,511 Appraisals $45,000 Other Legal Costs $5,384 Geotechnical Exploration $19,780 Topographic Survey and Wetland Delineation $32,210 Final Desing, ROW Services, and bidding $311,263 Construction Administration $400,000 TOTAL $8,100,708 *, includes$100k in City Utility work($50k for each City), includes 10%contingency. 3 The table below compares the City Cost of this project: FUNDING SOURCE CIP PRELIMINARY FINAL DESIGN ESTIMATE DESIGN PER PER COST SHAR- COST SHARING ING AGREEMENT AGREEMENT State Aid $500,000 $900,000 $900,000 Street Oversize Fund $150,000 $250,000 $250,000 Tax Levy $650,000 $1,418,500 $2,251,929 Water Quality Fund $60,000 $60,000 $60,000 Water& Sewer Fund $2007000 $200,000 1 $50,000 TOTAL CITY COST $1,360,000 $2,828,500 $3,511,929 The following table compares the contributions for each funding partner: FUNDING SOURCE PRELIMINARY DESIGN FINAL DESIGN PER PER COST SHARING COST SHARING AGREEMENT AGREEMENT City of Prior Lake $2,828,500 $3,511,929 City of Savage $1,9717500 $2,486,779 MNDOT $2,102,000 $2,102,000 TOTAL CITY COST $6,902,000 $8,100,708 ALTERNATIVES: 1) Approve a Resolution Authorizing Property Acquistion up to $1,030,150 for the 150th Street and Trunk Highway 13 Improvement Project. 2) Deny this item for a specific reason and provide staff with direction. 3) Table this item until some date in the future. RECOMMENDED At the discretion of the City Council. MOTION: 4 O� PRION U � 4646 Dakota Street SE :�Jlzsojt- Prior Lake, MN 55372 RESOLUTION 15-xxx A RESOLUTION AUTHORIZING ACQUISITION OF PROPERTY FOR THE 150TH STREET AND TH 13 IMPROVEMENT PROJECT Motion By: Second By: WHEREAS, On September 16, 2014, the City Council approved resolution 14-139 approving a cooperative agreement with the City of Savage for the 150th Street and TH 13 Improvement Project; and WHEREAS, The Cooperative Agreement outlined the cost participation between the Cities of Savage and Prior Lake; and WHEREAS, The City of Prior Lake has agreed to pay for property acquisition costs in excess of$862,000 as outlined in the agreement; and WHEREAS, A provision of the agreement specified that any costs above 110% of$862,000 require written approval from the City of Prior Lake; and WHEREAS, The appraisals are now complete for the project and the sum of the property acquisitions amount to$1,030,150 which is approximately 120%of the original estimate. 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 City of Prior Lake hereby authorizes property acquisition up to$1,030,150 for the 150th Street and TH 13 Improvement Project. PASSED AND ADOPTED THIS 9th DAY OF FEBRUARY 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager