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HomeMy WebLinkAbout8B 2018 Overlay Plans - Authorize Bids Reportc Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: APRIL 16, 2018 AGENDA #: 8B PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISINGMENT FOR BIDS FOR THE 2018 MILL & OVERLAY IMPROVEMENT PROJECT (STR18- 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 2018 Overlay Project History On December 4th, 2017 City Council adopted Resolution 17-198 authorizing staff to prepare a Feasibility Report for the 2018 Overlay Improvement Project, which is the first step in the 429 process. On, February 5, 2018 City Council accepted the Feasibility Report and scheduled a Public Hearing. The Public Hearing was scheduled for March 5, 2018 but due to inclement weather, the hearing was rescheduled for this evening (April 16, 2018) 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 23, 2018. 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 second pavement overlay project that will be completed under the revised City Assessment Policy. Per the Assessment Policy, the assessment rate in 2018 for the street overlay project is $1,200 for single family and $960 for multifamily (0.8 x $1,200). Commercial and industrial parcels are assessed based on their 2 Residential Equivalent Density (RED). The assessment period is over 5- years. This is the same rate from 2017. 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 extent 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 2018 Mill and Overlay Project is proposed to be financed by Special Assessments and a transfer from the General Fund to the Permanent Improvement Revolving (PIR) Fund. The total cost is estimated at $630,000 which includes $482,306.40 in special assessments. The remaining funding of $147,693.60 will come from the General Fund transfer. The approved 2018 Capital Improvement Program and Budget contemplated bonding the full overlay project cost. However, staff is recommending that we only bond for the assessment portion of the overlay cost and fund the remaining portion with a transfer from the General Fund. Repayment of the bonds will be provided by Special Assessments. The funding source and the corresponding estimated amounts are shown below: General Fund Transfer $147,693.60 Assessments 482,306.40 Total $630,000.00 Utilizing special assessment and the PIR fund for overlay projects allows the city to complete four miles of street mill and overlay projects annually as compared to two miles completed in prior years. The overlay project will have an annual tax impact of about $150,000-$210,000. This is LESS than the amount that was levied in the General Fund Streets department in prior years for about two miles of overlay. The PIR fund allows the City more flexible use of revenues from special assessments. For the City’s annual street mill and overlay projects, financed with PIR Bonds, the revenues can be used for any authorized purpose of the PIR Fund. For example, special assessments collected from a previous improvement could be used to provide upfront funding for the future improvement. PIR Fund Bonds are secured by revenues of the Fund and not solely by the special assessments of the financed improvements. It is anticipated that, over time, the fund will be self-sustaining. Until we develop special assessment prepayment history, we anticipate that the City will bond for the special assessment portion, levy or transfer funds for a 3 portion of the costs and fund the remainder with prepayments of special assessments collected from prior year(s) improvements. ALTERNATIVES: 1. Motion and second to approve a Resolution Ordering the 2018 Overlay Project, City Project #STR18-000001 as proposed or with amendments. 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: Alternative #1. Approval of this agenda item requires a 3/5ths vote. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 18-___ A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS AND AUTHORIZING THE ADVERTISEMENT FOR BIDS FOR THE 2018 MILL & OVERLAY PROJECT (STR18- 000001) Motion By: Second By: WHEREAS, Pursuant to Agenda Item 7A, adopted on April 16, 2018, the Public Works Director has prepared plans and specifications for the 2018 Mill & 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 hearby approved. 3. The City Public Works Director 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 Public Works Director until May 23, 2018 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 Public Works Director, will then be tabulated and will be considered by the Council at the regular June 4, 2018 City Council meeting. No bids will be considered unless sealed and filed with the City Public Works Director 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 16th day of April 2018 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager