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4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: APRIL 10, 2017
AGENDA #:
PREPARED BY:
9A
JASON WEDEL, INTERIM PUBLIC WORKS DIRECTOR
PRESENTED BY: JASON WEDEL
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT FOR BIDS
FOR 2017 OVERLAY PROJECT (ST17-000001)
DISCUSSION: Introduction
The purpose of this agenda item is to ask the City Council to consider
approval of the plans and specifications and to authorize advertisement for
bids for the 2017 Overlay Project.
History
On November 28th, 2016 City Council adopted Resolution 16-147
authorizing staff to prepare a Feasibility Report for the 2017 Overlay
Improvement Project which is the first stop in the 429 process. On
February 13, 2017, the City Council accepted the feasibility report and
scheduled a Public Hearing. The Public Hearing was held on March 13th,
2017. A motion to order the improvement failed on a 3-1 vote. A motion to
renew this item for consideration at a future City Council meeting when the
full City Council would be present was approved 4-0. This action made it
possible to bring this agenda item before the city council for consideration
when five members are present. .
Current Circumstances
The final plans and specifications for the Improvements have been
completed. The figure included in the feasibility study shows the proposed
improvement areas. Pending approval of the resolution presented, staff
has tentatively set the bid date for May 10th, 2017. Once bids are received
Council will be asked to award the construction contract.
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: Assessments
This will be the first pavement overlay project that will be completed under
the revised City Assessment Policy. Since this is a new city policy it is
expected to be used every year in the future unless amended by city
council vote sometime in the future. The City Council approved
amendments to the Assessment Policy so that street reclamation and
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street overlay projects would be assessed at their regular meeting on May
23, 2016.
It was concluded by the City Council that the use of assessments for
reclamation and overlay projects was appropriate and provides a funding
source that reduces the overall tax levy by distributing a portion of the
costs to the benefitting property owners.
Per the Assessment Policy, the assessment rate in 2017 for street overlay
projects is $1,200 for single family and $960 for multifamily (0.8 x $1,200).
Commercial and industrial parcels are assessed based on their Residential
Equivalent Density (RED). The assessment rate will be adjusted annually
with an escalator based on the Construction Cost Index (CCI). The
assessment period is over 5-years.
Based on the age of the City’s existing streets, the City is entering a time
period where more streets are in need of timely mill and overlay projects to
extend their useful lives at a cost less than waiting until the street is in need
of complete reconstruction.
The previous method of funding these projects put pressure on the tax
levy. Moreover, it was not equitable to other properties which were
assessed for reconstruction when properties receiving overlays also
specially benefit and should share in the cost as well. Utilizing special
assessments brings greater equity to the City’s funding of transportation
improvements.
FINANCIAL
IMPACT:
The 2017 adopted Budget included the issuance of $300,000 in Revolving
Fund Bonds to partially finance the 2017 overlay project. Based on the
scope of the project, the bond amount will need to be increased slightly.
The remainder of the cost will be paid by the tax levy. Repayment of the
bonds will be provided by Special Assessments. The funding source and
the corresponding estimated amounts are shown below:
Ad Valorem $166,643
Assessments $350,357
Total $517,000
No other funding sources are currently available to assist with this project.
It is important to note that if the City Council does not support the proposed
special assessment for this project under any circumstances, the project
should be voted down now. If the council moves forward with the project
now and then after it is completed reduces or eliminates the assessments
for this project at the assessment hearing, the only alternative would be to
increase the general tax levy or draw from the reserve to cover the project
budget shortfall.
ALTERNATIVES: 1. Approve a Resolution Ordering the 2017 Overlay Project, City
Project #STR17-000001 as proposed or with amendments.
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2. Deny this item for a specific reason and provide staff with direction.
3. Table this item until some date in the future.
RECOMMENDED
MOTION:
A motion and a second for approval of Alternative #1. Approval of this
agenda item requires a 4/5ths vote.
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-___
A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS AND AUTHORIZING
THE ADVERTISEMENT FOR BIDS FOR THE 2017 OVERLAY PROJECT (STR17-000001)
Motion By: Second By:
WHEREAS, Pursuant to Agenda Item 8E, adopted on April 10, 2017, the Interim Public Works
Director has prepared plans and specifications for the 2017 Overlay Project.
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, 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 on Quest CDN an advertisement for bids for the making of the improvement
pursuant to the attached plans and specifications. The advertisement shall be published no
less than 21 days prior to the bid opening, shall state that the bids will be received by the
City Manager until May 10, 2017 at 10:00 a.m. at which time the bids will be publicly opened
at the Maintenance Center at 17073 Adelmann St SE by the Interim Public Works Director,
will then be tabulated and will be considered by the Council at the regular May 22, 2017,
City Council meeting. 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 soley by
the City Council.
Passed and adopted by the Prior Lake City Council this 10th day of April, 2017
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager