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Home My WebLink About4I - Northgate Ctr. Sanitary Sewer Ext. STAFF AGENDA REPORT AGENDA #: PREPARED BY: SUBJECT: DATE: 41 SUE MCDERMOTT, ASSISTANT CITY ENGINEER STATUS REPORT FOR SANITARY SEWER EXTENSION TO NORTHGA TE CENTER FEBRUARY 17,1998 INTRODUCTION: On September 2, 1997, the council passed Resolution 97-80 ordering sanitary sewer improvements for Northgate (previously called Gateway) Center. The property owner, Ronn Hechter, petitioned the council to construct the improvement and signed a Special Assessment Agreement and Waiver in the amount of, $29,200 following the procedures in Minnesota Statutes, Chapter 429 - Local Improvements. The city received one quote in the amount of $66,211.97. Mr. Hechter will not sign a new special assessment agreement and waiver. The staff believes that the council did not approve this project in the amount of $66,211.97 and therefore we have no basis to proceed absent 1) a new petition and special assessment agreement and waiver based on the $66,211.97 figure, and 2) authorization by the council to proceed with the project at this amount. BACKGROUND: The Northgate Center property is located at the northeast corner of Franklin Trail and Westwood Street. The proposed building faces Franklin Trail (CR 39). There is currently no sanitary sewer in this block of Franklin Trail. Due to an existing fiber optic cable in the easement on the east side of Franklin Trail behind the curb, the sewer could not be installed in that location. There is existing sanitary sewer in Westwood Street but the elevation is such that a lift station would be required to serve the Northgate Center property. The Development Review Committee (DRC) met with Mr. Hechter in April to discuss his building plans at which time his plans showed constructing the sewer in the easement on the east side of Franklin Trail to TH 13. Since Scott Rice Telephone has a fiber optic cable in the center of the easement, City staff contacted the property to the north (Norex) to discuss the possibility of Mr. Hechter obtaining an easement from them. The request was denied. The right-of -way on the west side of the street contains underground power lines and large trees that would be affected by construction behind the curb. 162~bec.Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 I Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER DISCUSSION: HECfRSW.DOC Mr. Hechter's engineer revised the plan to show sanitary sewer being constructed beneath Franklin Trail by directional drilling methods. This method allows the pipe to be installed without open cutting the street. City and County staff approved this plan with minor revisions in May. The engineer's estimate of the construction cost was $22,802.75. \:l Mr. Hechter signed a special assessment agreement and waiver (attached) based on a not to exceed amount of $29,200. This amount is based on the engineer's estimate of $22,802.75 plus 28% indirect costs (engineering, survey, bonding, administration, and inspection). Plowe Engineering was hired by the City to complete the plans and specifications that they had started for Mr. Hechter and to obtain quotes and permits for the project. Scott County originally denied a permit for the construction as it is their policy to prohibit utility installation beneath county roadways. A permit to work in , County right-of-way was granted in October based on the construction method and acknowledgment that Franklin Trail will be turned back to the City at some time in the future. In late October we received one quote from S. R. Weidema, Inc. in the amount of $66,211.97 and were unable to obtain additional quotes due to the small size of the project and the fact that the construction season was coming to an end. City staff approached Scott County staff with a request to revise their permit to allow open cutting Franklin Trail to install the sewer. This request was denied. In November, Mr. Hechter was notified that due to the fact that the quote was substantially higher than the original engineer's estimate, in accordance with state law, the City would have to advertise for bids which requires council action. We proposed that Mr. Hechter submit a new petition for staff to take to council to request authorization to approve plans and specifications and advertisement for bids. When the lowest responsible bid is determined, we proposed that Mr. Hechter sign a waiver of special assessment in the new amount plus administrative fees. Mr. Hechter was reminded again of his option to proceed with the construction with the contractor of his own choice. Attached is the last correspondence received from Mr. Hechter dated January 29, 1998 after denial of a building permit for the site. The city attorney has provided a copy of the letter to the city's insurance carrier. The purpose of this report is to inform the council of the status of the project and to have a record on file. The only action required is to accept the report for filing. One of our concerns is that if the ACTION REQUIRED: HECTRSW.DOC city should proceed with the project at the cost of $66,211.97 without the special assessment agreement and waiver, Mr. Hechter could then argue that his property only benefits in the amount of $29,200. We are reporting this matter to you because Mr. Hechter has requested a building permit which, after consultation with the city attorney has been denied. No building permit will be issued until the city staff knows that sewer and water will be provided to the site. This is consistent with requirements for a certificate of occupancy. A motJe J .n.3121 '98 8:5121 1121121121 PROPERTY MANAGE TEL 6124398482 P. 1 5" vvt.... City or Prior Lab ] 6Z00 Eape Creek Ave. S.Ii;. Prior La~ MN. 55372- Mr. Fnnk Bowles 1/2f)/~8 Dcar Frank, Anet' :t"OIb~r long period, dn~ the eny Council hlld appl'Ovect the s.. ",". project band upon the Engineering re))or'" pl"epared by the Clly lJf Prior Lab of. which J *lgnod aDd notarized fDr assessment to the properly. It appean that the contrOYerS)' b.. II . .~ the City .,f Prior Lake and Scott County IJ sUlIllctive over the conn'oJ of die ~'n:et, sUU )Ollving !WI without .anl1al'Y 68W1l1.. I have .ptnt it great deal of addldonaJ lflne, dIort &. money along Willi (:OIJ)pJyInC with each' and every IPlln of ~lch boff. a very expe.1~ ardlUBrt &: engineer have revl,ftJd consl" '.: "" ,I)' per contJnUtld ~qiR~a uftlie pWllling. engillecrin& and building Inllpect1ob' department. I have today ~nel" tJ)'ing to make an appolnnuent to fake II building penult been told that tbe City wlll not lune the permk. based QP~n the .anlta..,. .ewer OOt being In place.. At tbt.lbne :dIer being p.-omp11ld along bailed upon a continuing relationship and correspondence I WlU outline the cODwivable dama~s esttmmd below: 1. Land/holding c:oatw.- S280,000. 2. At.chlt_.. .:...... ~1, ClvU EncJDeeJ.blg. Profenional unled - S50,000. 3. Clearing land, SOU C'DJ'..f:djon, Conlpacting & Reports.- 544,000. 4. PrqJrct bidding over 14 months since starting. Property & ConstrucfloD MabllsenllmJ..$71,OOO. 5. Legal-S4S00." 6. Flnandng comndttnent..S26,006. 7. Advel1f$lng..$3S00.+ Total estimated to date $ 479.300. plus below 1. Lou of InCOlDe p~ntial from Ul'W center-$G6,OOO. + Yeal'Jy fOI"W"al'd. 2. Lou of :addltfon..1 ('6lYllnUe hum G'.lteway Ccntllr -512,000.+ Ye8rJy L ".:rd. J. PunltiYe damage. and Legal aJIJt;, C'Dortnulng. I bave been very pattent and al~ altl!lnpted 10 .lId tbs CIty with 1belr p..oceu, I do not feel lbat any fUl'tbeI. ~pEdaJ aS$&l'lEmClltf ~haU e1Cleed tire coa-b tbatwere provided to mem place a 'llnlta..,. s, """ syldern thllf I bad originally bid and that City engllaeerlng had .110 budleted ofwbkh \Ira. YIlI')' dolJe In price. The signed and apJ)ruved tlgures wci-e In line and the CIfy bar RVend OpUOIU to follow to provide a nl.ataJ-y Sewlll' of which should not be dented throlagb .. pnblJ.c: 1.lgbt orwa~. AI this I~m~ I have put on notla Sc;:ut1:.Rlce telephone of me fiber opUa llD.e runnlag tbrouah my pl'opcrty \5itbout perlnlMJlioD or vaDd ClU/elnent righb =-nd I mull al~o give noffce to the City of Prior J.Jakr & Scott County that a~ other Item,. pJa~d without permission be ~moved troJQ Cbe propert,'. I am being denied.. baste right of a property OWDllI' paying p.'operly taxes1be ..lghtm san.ltal'Y Ii, " 'i, throu~.h .. public aa:~s way (F....nkUn TndO. Allhb I1me unlun YOQ have abY other solutions ." whlcll mil}' resolve this IIlhQtlon. of wldeh .- alii more thon Inleredlld .1. heIIrlng. I mud turn lbl. OVer rOl"legal oune. Please mutuct me If you f~1 thefe b lJbother I~ean. to rrsolve the problem. ~ I ec ter for G~. ",.y Center, Norlhgate Center & Properly Management Sel'VlcelE P.O. Box 267 cc; Be.t & Flanag>>a, Any.. nltYPort. MN. 5500J MIb Fr-oeUch, Atty. 430-01.63 fax 4J9-84X2 TMl ZaPPI.ll. Atty.