The URL can be used to link to this page

Home My WebLink About8A 2019 Overlay Approve Plans-Authorize Bids Report 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: FEBRUARY 4, 2019 AGENDA #: 8A 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 ADVERTISEMENT FOR BIDS FOR THE 2019 MILL AND OVERLAY IMPROVEMENT PROJECT (STR19-000001) GOAL AREA AND OBJECTIVE: Transportation & Mobility 1. Maintain quality local street system based on a financially stable plan that meets Overall Condition targets. 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 2019 Overlay Project. History On November 5th, 2018 City Council adopted Resolution 18-173 authorizing staff to prepare a Feasibility Report for the 2019 Overlay Improvement Project, which is the first step in the 429 process. On December 17, 2018 the City Council accepted the Feasibility Project and scheduled a Public Hearing. The Public Hearing was held on January 22, 2019. Current Circumstances The final plans and specifications for the Improvements have been completed. The attached figure shows the proposed improvement areas. Pending approval of the Resolution presented, staff has tentatively set the bid date of March 6, 2019. 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 and specifications are available at the Public Works Department for review. ISSUES: Assessments This will be the third pavement overlay that will be completed under the revised City Assessment Policy. Per the Assessment Policy and the City’s fee schedule, the assessment rate in 2019 for the street overlay projects is $1,266 for a single family and $1,013 for multifamily (0.8 x $1,266). Commercial and industrial parcels are assessed based on their Residential Equivalent Density (RED). This is a 5.5% increase from 2018 and is based on the Engineering News Record Construction Cost Index. 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. The previous method of funding these projects put pressure on the tax levy. Utilizing special assessments brings greater equity to the City’s funding of transportation improvements. FINANCIAL IMPACT: The 2019 Mill and Overlay Project is proposed to be financed by Special Assessments and the street portion of the General Fund. The total cost is estimated at $700,000 which includes $439,900 in special assessments. The remaining funding of $260,100 will come from the general tax levy and PIR fund reserves. The project as shown in the feasibility study is estimated at $800,000 which is over budget. The overage is partially a result of adding the underseal to the project at an estimated cost of $54,700. Ad Valorem $ 95,000 PIR Fund Reserves $165,100 Assessments $439,900 Total $700,000 Staff recommends moving forward with the project as presented. Once bids are received and the actual costs are known, street segments will be eliminated from the project to stay within the $700,000 budget. The City Council can reduce the scope of the project at the time of award, but it is not possible to add street segments due to the notification requirements outlined in state statute 429. Utilizing special assessments and the PIR Fund for overlay projects allows the City to complete up to four miles of street mill and overlay projects annually as compared to two miles completed in prior years. The PIR Fund allows the City more flexible use of revenues from special assessments. 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 portion of the costs and fund the remainder with prepayments of special assessments collected from prior year’s improvements. ALTERNATIVES: 1. Approve a Resolution Accepting Plans and Specifications and Authorizing Advertisement for Bids for the 2019 Overlay Project, City Project #STR19- 000001. 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. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19-___ A RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS AND AUTHORIZING THE ADVERTISMENT FOR BIDS FOR THE 2019 MILL AND OVERLAY PROJECT (STR19- 000001) Motion By: Second By: WHEREAS, Pursuant to the Agenda Item 8A, adopted on February 4, 2019, the Public Works Director has prepared plans and specifications for the 2019 Mill and 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 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 improvements 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 with be received by the City Public Works Director until March 6, 2019 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 March 18, 2019 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 solely by the City Council. Passed and adopted by the Prior Lake City Council this 4th day of February 2019. VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager X:\Public_Works\Streets\Maint_Activities\MillOverlay2019.mxd SE A G U L L CIR N E SURREYLN NEMITOKACIR NEPART RI D G E CT NEEMBASSYCIR NEFOUNTAINHILLSCT NER O L L I N G O A K S C I R N E ROBIN RD NEPIKE LAKE TRL NEFOUNTAIN HILLS DR NECARRIAGE HILLS PKWY NEHUMMINGBIRD TRL NEBL U E B I R D T R L N E 456742 KNOBHILLPARK 2019 Mill and Overlay City of Prior Lake Minnesota This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information and data from various city, county and state offices and other sources. This document should be used for reference only. No representation is made that features presented accurately reflect true location. The City of Prior Lake, or any other entity from which data was obtained, assumes no liability for any errors or omissions herein. If discrepancies are found, please contact the City of Prior Lake. Updated: 12/10/2018 456781 456742 456778 456712 456782 456718456742 456716 456744 456723 456787 456717 456721 456714 456783 456721 13 282 13 Location Map MAJESTICLN NWREGAL PASS NW FAIRWAY HEIGHTS RD NW JEFFERS P A S S N W 456721