2. Medical Arts and Colonial Sq: Accept Bids Appr Assess Agmt Special Assess Hearing Awd Contr 101 c72
CITY OF MEMORANDUM
CHA jj �� i u��(� u TO: � U
HASS1 Paul Oehme, Director of Public Works /City Engineer
7700 Market Boulevard
PO Box 147 FROM: Alyson Fauske, Assistant City Engineer C'
Chanhassen, MN 55317
DATE: September 13, 2010
Administration SUBJ: Medical Arts and Colonial Square Parking Lot Rehabilitation
Phone: 952,227,1100 Project 10 -05: Accept Bids, Approve Assessment Agreement,
Fax: 952.227.1110
Hold Special Assessment Hearing and Award Contract
Building Inspections
Phone: 952,227.1180 PROPOSED MOTION
Fax: 952.227.1190
Engineering "The City Council accepts the bids and awards the contract for the Medical
Phone: 952.227.1160 Arts and Colonial Square Parking Lot Rehabilitation Project 10 -05 to
Fax: 952.227.1170 Bituminous Roadways in the amount of $236,820.50.
Finance The City Council adopts the assessment roll for City Project 10 -05, Medical
Phone: 952.227.1140 Arts and Colonial Square Parking Lot Rehabilitation."
Fax: 952.227.1110
Park & Recreation City Council approval requires a simple majority vote of the City Council
Phone: 952.227.1120 present.
Fax: 952.227.1110
Recreation Center POLICY DECISION /ACTION TO BE CONSIDERED
2310 Coulter Boulevard
Phone: 952.227.1400 Prior to the completion of the assessment hearing, any property owner wishing to
Fax: 952.227.1404 object to their assessment must file a signed, written objection or they waive their
right to appeal. The Council may accept or modify the assessment amount as
Planning & presented.
Natural Resources
Phone: 952227.1130 PROJECT SUMMARY
Fax: 952.2271110
The Medical Arts and
Public Works Colonial Square parking lots , •* r. GNan V _
1591 Park Road q p g - ,' low t " 0 !. ,
are located in the downtown lit C mow-
��-
Phone: 952.227.1300
and provide surface parking • r,
Fax: 952.2271310 for 406, 470, 480 and 560 s x st ' - . .�
West 78` Street. .>
Senior Center West , r1� - JCL
Phone: 9522271125 �� ��� ri _ aii"' 1 }r a • Fax 952.227.1110 These parking lots are 20 i Z � r '*"
years old and have L 4 . •
Web Site • W. 78th Street \ ; -- -- ` ' '
numerous potholes and
wwwci.chanhassen.mn.us ;ass ,NA
alligator cracks.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Medical Arts and Colonial Square Parking Lot Rehab. Assessment Hearing
September 13, 2010
Page 2
The Medical Arts parking lot is owned by the City; however, an easement, covenants and
restriction agreement dated October, 1987 outlines that this parking lot can be used for the
parking requirements of 470, 480 and 560 West 78 Street (PIDs 254610010, 254610020 and
251720020, respectively). The agreement states the property management company is
responsible for plowing the parking lot; the City is responsible for other maintenance of the
parking lot.
The Colonial Square parking lot is privately owned and maintained. The property owner
requested that the City include this parking lot in City Project 10 -05 since a mill and overlay is
warranted. A special assessment agreement is need for this project since some of the work is
proposed to be constructed on private property.
Some storm sewer and draintile will be installed in the project area to alleviate drainage issues on
the site.
ASSESSMENT HEARING PROCEDURE
Staff will provide a brief explanation of the work along with the proposed assessment amount.
Any issues that the City Council wishes to discuss regarding the project financing is appropriate
during the public hearing portion of the project. Public testimony should be received for the
project. The property owners should be reminded that if they wish, they must file a written
objection with the City either prior to or during the actual project hearings. Objections after the
public hearing are invalid.
The assessment objection is a request by the property owner for the Council to review the
assessment amount. Staff may have an immediate response to individual comments, or in some
circumstances, the objection should be received and referred to staff for investigation. The
remaining assessment roll should be adopted. If the City Council feels the objections cannot be
addressed immediately, a report will be presented to Council regarding all objections on that
particular project at the next City Council meeting. Council should adopt the remaining
assessment roll at that time in order for the process to stay on schedule. If there are no objections
filed, or if Council feels confident staff's investigation will not result in any changes being made
to the assessment roll, a motion by the City Council adopting the assessment roll as prepared is
needed for the project.
ASSESSMENT OBJECTIONS
Objections may be filed up to and at the public hearing. At the time of this submittal, no written
objections have been received. If any written objections are received in the interim prior to the
Council meeting, They will be provided to the Council at the public hearing. Staff comments and
recommendations will also be provided at the public hearing. The City Council may choose to
adopt staff's recommendation or revise the assessment roll. If additional objections are filed
either prior to or at the hearing, they should be received and if necessary referred to staff for
investigation and resolution.
Medical Arts and Colonial Square Parking Lot Rehab Assessment Hearing
September 13, 2010
Page 3
PROJECT SUMMARY: ASSESSABLE COSTS
Improvements within the project include the mill and overlay of the parking lots and
miscellaneous storm sewer work. One hundred percent (100 %) of the street improvement costs
are proposed to be assessed against the benefitting properties.
PROJECT COSTS AND ASSESSMENTS
The construction cost for this project is $236,820.50. The total project cost has been calculated to
be $256,121.37 which includes a 3% construction contingency and 5% indirect costs.
Staff proposes that the owner of 406 West 78 t
Street, known as "Colonial Square ", benefits \`
from 100% of the improvements within the area rK,
shown in red. The proposed final benefitting _ $ ,b.. -•
area varies slightly from the feasibility report. ! ; ' ` 14) 1 4 06 78th St W
The proposed benefitting area reflects the actual 0,1
parking requirement for Colonial Square and ` � 1 w „� o -3
includes drive aisles. !� A �
1111111 u i <
The remainder of the project cost is proposed to _ �� 1111111 1:
be allocated to 470, 480 and 560 West 78
4 y
Street according to their respective parking �:;"� _ 4 _.
requirements. . ,
010041. C WEST 78TH STREET
The proposed assessments are summarized as follows:
Property Assessment Methodology Benefit Final
Description Determination Assessment
406 West 78 Street 100% benefit of red shaded
(Colonial Square) area shown above 3,312 s.y. $51,792.44
470 West 78 Street 106 stalls, or 40.9% of
(Medical Arts) area not shaded in red $83,570.53
__._.._.._...-- .- -.._ -- Portion of project outside of
480 West 78 Street red shaded area shown 53 stalls, or 20.5% of $41,887.43
(Medical Arts) above. Benefit based on area not shaded in red
- - required parking stalls. ---.___ ___�_ ^---------------- .___..._.
560 West 78 Street 100 stalls, or 38.6% of
$78,870.97
(Axel's Restaurant) area not shaded in red '
$256,121.37
The recommended final assessments are 30% lower than the feasibility study estimates.
G:\ENG\PUBLIC \_2010 PROJECTS \ 10-05 Medical Arts pkg lot rehab \09 -13 -10 assessment hmg.docx
Medical Arts and Colonial Square Parking Lot Rehab Assessment Hearing
September 13, 2010
Page 4
BID OPENING /AWARD OF CONTRACT
Bids were received, opened and read out loud on Friday, July 30, 2010 at 2:00 p.m. Seven bids
were received. The lowest bidder is Bituminous Roadways at $236,820.50. The bids have been
tabulated and are summarized below.
Bidder Total Bid
1. Bituminous Roadways $236,820.50
2. Midwest Asphalt Corporation $251,433.75
3. Minnesota Roadways $267,542.05
4. GMH Asphalt Corporation $270,674.25
5. WM Mueller & Sons $273,381.65
6. Northwest Asphalt $277,338.75
7. Barber Construction $319,498.00
Bituminous Roadways worked on the Public Works parking lot. Their work, ability to manage a
project like this, and customer service delivery has been acceptable.
FUNDING SUMMARY
The 2010 CIP budgeted $350,000 for this project. One hundred percent (100 %) of the project
cost will be funded by levied assessments.
Attachments: 1. Assessment Roll
2. Special Assessment Agreement
3. Resolutions
4. CIP sheet
G:\ENG\PUBLIC \_2010 PROJECTS \10 -05 Medical Arts pkg lot rehab \09 -13 -10 assessment hrng.docx
MEDICAL ARTS & COLONIAL SQUARE PARKING LOT REHABILITATION
PROJECT NO. 10 -05
FINAL ASSESSMENT ROLL
LEGAL DESCRIPTION
ASSESSMENT
PID OWNER SITE ADD LOT BLK PLAT_NAME AMOUNT
251730010 CHANHASSEN REALTY CO. 406 W. 78TH STREET 001 001 CHADDA 2ND ADDITION $51,792.44
254610010 CHANHASSEN MEDICAL ARTS LP 470 W. 78TH STREET 001 001 MEDICAL ARTS ADDITION $83,570.53
254610020 CHANHASSEN MEDICAL ARTS II LLC 480 W. 78TH STREET 001 002 MEDICAL ARTS ADDITION $41,887.43
251720020 BONFIRE RESTAURANT COMPANY LLC 560 W. 78TH STREET 002 001 CHADDA ADDITION $78,870.97
TOTAL $256,121.37
PUBLIC IMPROVEMENT
AND
SPECIAL ASSESSMENT AGREEMENT
AGREEMENT made this day of , 2010, by and between
the CITY OF CHANHASSEN, a Minnesota municipal corporation ( "City ") and Chanhassen
Realty Company (the "Property Owner ").
RECITALS
A. Property Owner is the fee owner of property legally described as Lot 1, Block 1
Chadda 2 Addition, Carver County, Minnesota, having a street address of 406 West 78 Street,
Chanhassen, Minnesota, and a property identification number of 251730010 (the "Subject
Property").
B. Property Owner has requested that the City construct parking lot improvements on
the Subject Property and assess the cost to the Subject Property in conjunction with The Colonial
Square Parking Lot Rehabilitation Project, City Project 10 -05.
C. The City has previously ordered Public Improvement Project 10 -05.
NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS
THE PARTIES AGREE AS FOLLOWS:
1. PUBLIC IMPROVEMENT. The City will construct the parking lot
improvements on the Subject Property as part of Public Improvement Project 10 -05 (the "Public
Improvement "). If the City has not awarded a contract for the Public Improvement by September
30, 2010, this Public Improvement and Special Assessment Agreement shall be null and void.
2. TEMPORARY EASEMENT. The Property Owner hereby grants the City, its
contractors, agents and assigns, a temporary construction easement over, on, and across the Subject
Property for purposes of constructing the parking lot improvements on the Subject Property
commencing upon the execution of this Agreement and terminating when the construction work,
including any warranty work, has been completed. The Property Owner covenants with the City
152626v01 1
RNK:06 /25/2010
that it is the fee owner of the Subject Property, that it has the right to grant this easement to the
City; that there are no unrecorded interests in the Subject Property, and that it will indemnify and
hold the City harmless for any breach of the foregoing covenants.
3. SPECIAL ASSESSMENT. If the City Constructs the Public Improvement
including the parking lot, the City will assess the cost of the Public Improvement, $51,792.44
against the Subject Property. The assessment shall be spread over ten (10) years, together with 5.25
percent (5.25 %) interest per year on the unpaid balance. Interest shall accrue from the date of the
adoption of the special assessment roll. The first installment shall be due and payable with taxes in
2011. The Property Owner waives any and all procedural and substantive objections to the Public
Improvement and special assessment, including but not limited to hearing requirements and any
claim that the assessment exceeds the benefit to the Subject Property. The Property Owner waives
any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. If the special assessment is
not timely paid or is set aside for any reason, then, instead of paying the special assessment, the
Property Owner shall pay the City on demand an amount equivalent to the unpaid special
assessment together with any legal fees the City may incur.
4. BINDING EFFECT; RECORDING. This Agreement shall be binding upon the
Property Owner and the Property Owner's successors, heirs and assigns. This Agreement may be
recorded against the title to the Subject Property.
CITY OF CHANHASSEN
BY:
Thomas A. Furlong, Mayor
(SEAL)
AND
Todd Gerhardt, City Manager
STATE OF MINNESOTA )
( ss.
COUNTY OF CARVER
The foregoing instrument was acknowledged before me this day of
, 2010, by Thomas A. Furlong and by Todd Gerhardt, respectively the Mayor
and City Manager of the City of Chanhassen, a Minnesota corporation, on behalf of the corporation
and pursuant to the authority granted by its City Council.
152626v01 2
RNK:06/25/2010
NOTARY PUBLIC
152626v01 3
RNK:06 /25/2010
PROPERTY OWNER:
STATE OF MINNESOTA )
( ss.
COUNTY OF ( ‘` J )
The regoing instrument was acknowledged before me this day of
f
Se %ofem � , 2010, by /'r h r /. //
, the Property Owner.
NOTARY PUBLIC
l 1': SHAR WN LOCAKER
NOTARY PUBUC4WKIESOTA
DRAFTED BY: r Mf' Coarnbdon&au*Jan at,ZDfS
ve, CAMPBELL KNUTSON
Professional Association
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
Telephone: (612) 452 -5000
RNK:srn
152626v01 4
RNK:06/25/2010
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: September 13, 2010 RESOLUTION NO: 2010 -
MOTION BY: SECONDED BY:
A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT
FOR THE MEDICAL ARTS AND COLONIAL SQUARE PARKING LOT
REHABILITATION PROJECT NO. 10-05
WHEREAS, pursuant to an advertisement for bids for the Medical Arts and Colonial Square Parking
Lot Rehabilitation Project, bids were received, opened and tabulated according to law, and the following bids
were received complying with the advertisement:
Bidder Total Bid
1. Bituminous Roadways $236,820.50
2. Midwest Asphalt Corporation $251,433.75
3. Minnesota Roadways $267,542.05
4. GMH Asphalt Corporation $270,674.25
5. WM Mueller & Sons $273,381.65
6. Northwest Asphalt $277,338.75
7. Barber Construction $319,498.00
AND WHEREAS, Bituminous Roadways is the lowest responsible bidder with a total bid awarded of
$236,820.50.
NOW THEREFORE, BE IT RESOLVED by the Chanhassen City Council:
1. The mayor and clerk are hereby authorized and directed to enter into a contract with Bituminous
Roadways in the name of the City of Chanhassen for the Medical Arts and Colonial Square Parking Lot
Rehabilitation Project according to the plans and specifications therefore approved by the City Council
and on file in the office of the city clerk.
2. The city clerk is hereby authorized and directed to return forthwith to all bidders the deposits made
with their bids, except that the deposits of the successful bidder and the next lowest bidder shall be
retained until a contract has been signed.
Passed and adopted by the Chanhassen City Council this 13 day of September, 2010.
ATTEST:
Todd Gerhardt, City Manager Thomas A. Furlong, Mayor
YES NO ABSENT
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: September 13, 2010 RESOLUTION NO: 2010 -
MOTION BY: SECONDED BY:
A RESOLUTION ADOPTING ASSESSMENT ROLL FOR THE
MEDICAL ARTS AND COLONIAL SQUARE PARKING LOT
REHABILITATION PROJECT NO. 10-05
WHEREAS, pursuant to proper notice duly given as required by law, the Council has met
and heard and passed upon all objections to the proposed assessment for the improvement of:
Medical Arts and Colonial Square Parking Lots
NOW THEREFORE, BE IT RESOLVED by the City Council of Chanhassen, Minnesota:
1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, if
hereby accepted and shall constitute the special assessment against the lands, named therein,
and each tract of land therein included is hereby found to be benefited by the proposed
improvement in the amount of the assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period of
ten (10) years, the first of the installments to be payable on or before the first Monday in
January, 2011, and shall bear interest at the rate of 5.25 percent (5.25 %) per annum from the
date of the adoption of this assessment resolution. This assessment will show up on the first
property tax statement for 2011. To the first installment shall be added interest on the entire
assessment from the date of this resolution until December 31, 2010. To each subsequent
installment when due shall be added interest for one year on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the
assessment to the county auditor, pay the whole of the assessment on such property, with
interest accrued to the date of payment, to the city treasurer, except that no interest shall be
charged if the entire assessment is paid within 30 days from the adoption of this resolution
(anticipated date of adoption is September 13, 2010); and he may, at any time thereafter,
pay to the city treasurer the entire amount of the assessment remaining unpaid, with interest
accrued to December 31 of the year in which such payment is made. Such payment must be
made before November 15 or interest will be charged through December 31 of the next
succeeding year. The property owner decides not to prepay the assessment before the date
given above, the rate of interest that will apply is 5.25 percent (5.25 %) per year. The right
to partially prepay the assessment is not available.
4. The clerk shall forthwith transmit a certified duplicate of this assessment to the county
auditor to be extended on the property tax lists of the County. Such assessments shall be
collected and paid over in the same manner as other municipal taxes.
Passed and adopted by the Chanhassen City Council this 13 day of September, 2010.
•
ATTEST:
Todd Gerhardt, City Manager Thomas A. Furlong, Mayor
YES NO ABSENT
1
Capital Improvement Program 2010 thru 2014 Department Street Improvements
City of Chanhassen, MN Contact Paul Oehme
Type Improvement
Project # ST -024 yP p
Useful Life
Project Name Medical Arts Parking Lot Improvements ti
Category Streets/Highways
Account #1 Account #3
Priority n/a
Account #2 Account #4
Description 1 Total Project Cost: 5350,000 '
The downtown Medical Arts parking lot is currently owned and maintained by the City. The property owners are responsible for plowing the lot in
the winter, but the City is responsible for maintenance of the parking lot. The lot is 20 years old and needs to be improved. The bituminous
pavement has many potholes and allegatored pavement distress. The improvements are proposed to be assessed back to the benefiting property
owners.
1
Justification
I
The parking lot has reached the end of its service life and should be improved.
1
Expenditures 2010 2011 2012 2013 2014 Total
Construction 350,000 3J0,000 1
Total 350,000 350,000
1
•
Funding Sources 2010 2011 2012 2013 2014 Total
Assessment/Revolving Assess 350,000 350,000
Total 350,000 350,000 1
1
Budget Impact/Other I 1
•
•
1
•
1
1
1
104