H-2. Park Road/Park Place Street Rehabilitation Project 16-04: Accept Bids and Award Contract; Assessment Hearing and Approve Resolution Requesting Advancement of State Aid Funds \ Y o — �
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CITY OF CHANHASSEN
e r£ ✓ Chanhassen is a Community for Life-Providing for Today and Planning for Tomorrow
MEMORANDUM
TO: Paul Oehme, Director of Public Works/City Engineer CA`r
FROM: Alyson Fauske, Assistant City Engineer 01/4)1
DATE: June 26, 2017
SUBJ: Park Road/Park Place Street Rehabilitation Project No. 16-04: Accept Bids and
Award Contract; Assessment Hearing
PROPOSED MOTION
"The City Council adopts the attached resolution accepting the bids and awards the contract for
the Park Road/Park Place Street Rehabilitation Project No. 16-04 to Valley Paving in the
amount of$856,210.45.
The City Council adopts the assessment roll and resolution for the Park Road/Park Place Street
Rehabilitation Project No. 16-04.
The City Council adopts the resolution requesting advancement of State Aid Funds."
City Council approval requires a simple majority vote of those present.
POLICY DECISION/ACTION TO BE CONSIDERED
Prior to the completion of the assessment hearing, any property owner who wants to 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 presented.
BACKGROUND
On November 23, 2015, the City Council approved the consultant contract with WSB &
Associates and authorized preparation of the feasibility study.
On March 10, 2016, an open house was held to discuss the proposed project; there were no
visitors at the open house.
At the March 14, 2016 meeting, the City Council accepted the feasibility study and called the
public hearing.
On April 11, 2016, the City Council held the public hearing and authorized the preparation of
plans and specifications.
PH 952.227.1100• www.ci.chanhassen.mn.us • FX 952.227.1110
7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317
Paul Oehme
Park Road/Place Street Rehabilitation Project:
Accept Bids,Award Contract,Assessment Hearing
June 26,2017
Page 2
The 2016 Minnesota State Legislative Session ended without approval of the bonding bill,
therefore City Project No. 16-04 was put on hold.
On February 13, 2017, the City Council authorized preparation of an addendum to the feasibility
study to update the estimated project costs and funding.
At the April 10, 2017 meeting, the City Council held the public hearing, approved the plans and
specifications and authorized the advertisement of bids.
On May 9, 2017, bids were opened.
At the May 22, 2017 meeting, the City Council called the assessment hearing.
An open house was held on June 20, 2017 to provide a project update and answer questions
about the proposed assessments.
DISCUSSION
The current Capital Improvement Program includes the rehabilitation of Park Road and Park
Place in 2017. These streets were selected using the City's Pavement Management Program and
site investigations. This project includes approximately 0.8 miles of streets. Park Road was
constructed in 1982 and Park Place was constructed in 1987. The 2015 surveyed pavement
condition scores for Park Road range between 47 and 51. A PCI of 100 represents a new street.
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Figure 1: Pavement Condition Scores
In 2005, Park Place was sealcoated which appears to have covered up more severe pavement
distresses. Due to the age and history of Park Place, it is recommended to include this street in
Paul Oehme
Park Road/Place Street Rehabilitation Project:
Accept Bids,Award Contract,Assessment Hearing
June 26,2017
Page 3
the 2016 project. Park Road is a 41-foot wide urban street within an 80-foot wide right of way.
Park Place is 33 feet wide urban street within a 60-foot wide right of way.
The majority of the water main in this area is 10" diameter ductile iron pipe. There are no
known water main breaks within the project area. Valve and hydrant repairs will be completed
by the Utilities staff. Anode bags are proposed to be installed with this project to prolong the life
of the water main.
The sanitary sewer has been televised. Proposed repairs to this system include addressing noted
areas of inflow/infiltration and spot repairs to replace/repair damaged pipe. New casting and
self-sealing lids will be installed with this project. The sanitary sewer repair work will be
incorporated into the inflow/infiltration project.
Work on the public storm sewer includes interior repairs to the catch basins and manholes.
A culvert known as Bridge. No. R0612 was built in 1950 and lies under the east end of Park
Road. The culvert is currently in disrepair and is rated as structurally deficient and should be
replaced with this project.
BID OPENING/AWARD OF CONTRACT
Bids were received, opened and read out loud on Tuesday, May 9, 2017 at 2:00 p.m. Four bids
were received. The lowest responsible bidder is Valley Paving, Inc. at $856,210.45. The bids
have been tabulated and are summarized below.
Bidder Total Bid
1. Valley Paving, Inc. $856,210.45
2. Park Construction Company $911,264.39
3. OMG Midwest, Inc. (dba Chard) $935,817.90
4. GMH Asphalt Corporation $949,321.48
Valley Paving, Inc. has not previously worked for the City of Chanhassen.
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.
An 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. If the City
Council feels an objection cannot be addressed immediately, the objection should be received
Paul Oehme
Park Road/Place Street Rehabilitation Project:
Accept Bids,Award Contract,Assessment Hearing
June 26,2017
Page 4
and referred to staff for investigation. The remaining assessment roll should be adopted in order
for the process to stay on schedule. At the next City Council meeting, a report will be presented
to Council regarding all objections.
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.
PROJECT COST, ASSESSMENTS AND FUNDING
Budgets for the proposed work have been included in the 2017 CIP. A summary of the total bid
cost, the engineer's estimate and CIP budget is below:
Funding Source Budget Feasibility Bid*
Estimate
Revolving Assessment Fund $100,000 $73,400.25 $61,611.15
(Park Place Improvements)
Bridge Replacement: Bridge $313,354.50
Bonding or MSA Funds
Municipal State Aid (MSA) $1,100,000 $1,066,454.95 $613,957.41
Funds
Total $1,200,000 $1,139,855.20 $988,923.07
*The bid cost includes 5% construction contingency and 10% indirect costs.
City Council is recommended to adopt a resolution requesting advancement of State Aid Funds
for this project. The original resolution was adopted January 11, 2016, however, since one year
has lapsed the State requires a new resolution.
The City's assessment practice is to assess 40% of the street improvement cost to the benefitting
properties on an assessable area basis. A copy of the City's Assessment Policy is attached for
reference. The estimated preliminary and proposed final assessments are summarized below.
Paul Oehme
Park Road/Place Street Rehabilitation Project:
Accept Bids,Award Contract,Assessment Hearing
June 26,2017
Page 5
Parcel Owner Parcel Assessable Estimated Final
No. Area Area Assessment Assessment
1 Road Runner Repair, Inc. 2.89 2.89 $8,100 $6,000
2 Road Runner Repair, Inc. 2.39 2.39 $6,700 $4,960
3 Retail Tech, LLC 2.43 2.43 $6,810 $5,040
4 Retail Tech, LLC 1.92 1.92 $5,380 $3,980
5 Gary Goll 1.75 1.75 $4,900 $3,630
6 GMP Properties, LLC 1.61 1.61 $4,510 $3,340
7 Core Mpls. Industrial 1.58 1.58 $4,430 $3,280
8 Core Mpls. Industrial 2.02 2.02 $5,660 $4,190
9 Core Mpls. Industrial 0.6 0.6 $1,680 $1,240
10 United Mailing, Inc 1.71 0 $0 $0
11 United Mailing, Inc 2.51 0 $0 $0
12 United Mailing, Inc 3.34 3.34 $9,360 $6,930
13 ISTAR Minnesota, LLC 9.92 9.92 $27,790 $20,580
14 ISTAR Minnesota, LLC 14.1 14.1 $39,500 $29,250
16 Core Mpls. Industrial 3.39 3.39 $9,500 $7,030
17 Core Mpls. Industrial 2.96 2.96 $4,150 $3,070
18 Carla Brockpahler 2.55 2.55 $7,140 $5,290
19 MG, LLC 1.16 1.16 $3,250 $2,410
20 City of Chanhassen 2.33 2.33 $6,530 $4,830
21 Prince R. Nelson 2.65 2.65 $7,420 $5,500
22 Christians Properties, LLC 1.3 1.3 $3,640 $2,700
23 Alfred A. Iverson 3.55 3.55 $9,940 $7,360
24 Alfred A. Iverson 6.32 6.32 $17,700 $13,110
25 Chanhassen HRA 11.65 11.65 $32,640 $24,170
The total amount proposed to be assessed is $167,890. The assessments are being proposed for
an eight-year term at an interest rate of 6%. Staff recommends that the Council extend the
interest-free period to November 1, 2017 after substantial project completion is anticipated.
SCHEDULE
Work can begin as early as July, 2017 with substantial completion by October 31, 2017.
Attachments: 1. Resolutions
2. Assessment Roll
3. Assessment Policy
4. CIP sheet
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES,MINNESOTA
DATE: RESOLUTION NO: 2017-XX
MOTION BY: SECONDED BY:
A RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT
FOR THE REHABILITATION OF PARK ROAD AND PARK PLACE
PROJECT NO. 16-04
WHEREAS,pursuant to an advertisement for bids for the Park Road/Park Place Street
Rehabilitation Project No. 16-04,bids were received, opened and tabulated according to law, and
the following bids were received complying with the advertisement:
Bidder Total Bid
1. Valley Paving, Inc. $856,210.45
2. Park Construction Company $911,264.39
3. OMG Midwest, Inc. (dba Chard) $935,817.90
4. GMH Asphalt Corporation $949,321.48
WHEREAS,Valley Paving, Inc. is the lowest responsible bidder with a total bid awarded
of$856,210.45;
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 Valley
Paving,Inc. in the name of the Park Road/Park Place Street Rehabilitation Project No.
16-04 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 26th day of June, 2017.
ATTEST:
Todd Gerhardt, City Manager Denny Laufenburger,Mayor
YES NO ABSENT
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES,MINNESOTA
DATE: June 26,2017 RESOLUTION NO: 2017-XX
MOTION BY: SECONDED BY:
A RESOLUTION ADOPTING ASSESSMENT ROLL FOR THE
PARK ROAD/PARK PLACE STREET REHABILITATION PROJECT NO. 16-04
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 Park Road and
Park Place,
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, is 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 eight
(8)years,the first of the installments to be payable on or before the first Monday in January,
2018, and shall bear interest at the rate of 6.00 percent(6.00%)per annum. This assessment will
appear on the first property tax statement for 2018. To the first installment shall be added
interest on the entire assessment from November 1,2017 until December 31,2018. 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 by November 1,2017; and the owner 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. If
the property owner decides not to prepay the assessment before the date given above,the rate of
interest that will apply is 6.00 percent(6.00%)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 26th day of June,2017.
ATTEST:
Todd Gerhardt, City Manager Denny Laufenburger,Mayor
YES NO ABSENT
CITY OF CHANHASSEN
CARVER COUNTY, MINNESOTA
DATE: June 26, 2017 RESOLUTION NO: 2017-XX
MOTION BY: SECONDED BY:
RESOLUTION FOR MUNICIPAL STATE AID FUNDS ADVANCE FOR
CITY PROJECT 16-04: PARK ROAD/PARK PLACE REHABILITATION PROJECT
WHEREAS,the Municipality of Chanhassen is planning to implement a Municipal State Aid Street
Project in 2017 which will require State Aid funds in excess of those available in its State Construction
Account; and
WHEREAS, said Municipality is prepared to proceed with the construction of said project(s)
through the use of an advance from the Municipal State Aid Street Fund to supplement the available funds in
their State Aid Construction Account; and
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WHEREAS,the advance is based on the following determination of estimated expenditures:
Account Balance as of June 11, 2017 $345,675.44
Less estimated disbursements:
Project#194-127-001 $1,100,000.00
Advance Amount (amount in excess of acct. balance) $754,324.56
WHEREAS, repayment of the funds so advanced will be made in accordance with the provisions of
Minnesota Statues 162.14, Subd. 6 and Minnesota Rules, Chapter 8820.1500, Subp. 10b; and
WHEREAS,the Municipality acknowledges advance funds are released on a first-come-first-serve
basis and this resolution does not guarantee the availability of funds.
NOW, THEREFORE,BE IT RESOLVED that the Commissioner of Transportation be and is
hereby requested to approve this advance for financing approved Municipal State Aid Street Project(s) of the
Municipality of Chanhassen in an amount up to $1.10 Million . I hereby authorize repayments from
subsequent accruals to the Municipal State Aid Street Construction Account of said Municipality of future
year allocations until fully repaid.
Passed and adopted by the Chanhassen City Council this 26th day of June, 2017.
ATTEST:
Todd Gerhardt, City Manager Denny Laufenburger, Mayor
YES NO ABSENT
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CITY OF CHANHASSEN
ASSESSMENT PRACTICE
N H a s Updated November, 2014
This Assessment Practice is intended to provide general direction to City Staff in preparation of assessment rolls
to ensure fair and consistent treatment of all properties within the City of Chanhassen. This practice may not
apply in all circumstances at which time the Council will direct staff to determine an alternate assessment
methodology. All benefiting properties that have access or potential future access to the street proposed to be
Reconstructed or Rehabilitated shall be included in the assessment roll. Assessments must be equally
distributed between housing types. Commercial properties will typically be assessed using an area charge or in
some circumstances front footage.
NEW CONSTRUCTION: 100%assessed to benefitting properties
Assessable Costs Include:
• Construction of a new street—Typically not a City project.
• Installation of water main, storm sewer and sanitary sewer systems where it did not previously exist.
RECONSTRUCTION: 40%assessed to all benefitting properties
Assessable Costs Include:
• Reconstruction of an existing street.
• Installation or repair of concrete curb and gutter associated with a street reconstruction project.
Notes:
• If a residential property benefits from a collector or commercial street reconstruction project, the
assessment amount for the residential property shall be based on a 31-foot wide street.
• Replacement or repair of an existing water main, storm sewer and sanitary sewer will not be assessed to
the benefitting properties. The City will pay 100%of these improvement costs out of the associated
enterprise fund.
REHABILITATION: 40%assessed to all benefitting properties
Assessable Costs Include:
• Edge or full-depth mill and overlay, cracksealing and full-depth repair of problem areas within the street
rehabilitation project area, installation or repair of curb and gutter.
• Replacement or repair of existing water main,storm sewer and sanitary sewer will not be assessed to the
benefitting properties. The City will pay 100%of these improvement costs out of the associated
enterprise fund.
Notes:
• If a residential property benefits from a collector or commercial street rehabilitation project,the
assessment amount for the residential property shall be based on a 31-foot wide street.
ASSESSMENT PAYMENT OPTIONS
• Term for Reconstruction projects shall be 10 years.
• Term for Rehabilitation projects shall be 8 years.
• The interest rate of the assessment projects shall be the Wall Street Journal Prime Rate (at the date of the
assessment hearing) plus 2%.
REGULAR MAINTENANCE: Properties are not assessed
• Projects Include: Pothole filling, Patching, Cracksealing, Sealcoating
g:\eng\forms\assessments\assessment practice 111814.doc
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Capital Improvement Program 2017 thru 2021 Department Street Improvements
1
City of Chanhassen, MN Contact Paul Oehme
Project# ST-012 Type .Improvement
Project Name Useful Life Unassigned
jAnnual Street Improvement ProgramCategory Streets/Highways
Account#1 601-xxxx-4751 Account#3 Priority n/a
Account#2 Account#4
Description Total Project Cost: 530,680,000
Annual project to rehabilitate and reconstruct streets in the City. Current 5-year plan shows the following neighborhood areas:
0
2017-Minnewashta Manor area and Lake Susan Hills Drive area
MSA-Park Road and Park Place
2018-Orchard Lane area
MSA-Lake Drive East and Dakota Ave(Highway 5 to Lake Drive East)
IIP
2019-Choctaw area,Kurvers Point area and 96th Street
MSA-Minnewashta Parkway overlay and trail
2020-Chan View area
MSA-Lake Lucy Road(Highway 41 to Galpin Blvd)and trail
2021 -Stone Creek area and Ches Mar Drive
Justification
The City uses a Pavement Management System to monitor the condition of the City streets. While proper preventative maintenance extends the �]
life of the street and is cost effective,a street will eventually deteriorate to a point that further maintenance is no longer cost effective. �]
Rehabilitation projects extend the life of the street. In cases when utilities or poor sub grade needs to be replaced or where streets have
deteriorated to a point where rehabilitation will no longer be practical,reconstruction of the street is necessary. A feasibility study is written to
consider the merits of the project and scope of work.
IP
Prior Expenditures 2017 2018 2019 2020 2021 Total
16,405,0001 Construction 4,375,000 2,700,000 2,300,000 3,800,000 1,100,000 14,275,000
Total Total 4,375,000 2,700,000 2,300,000 3,800,000 1,100,000 14,275,000
Prior Funding Sources 2017 2018. 2019 2020 2021 Total
16,405,000 Assessment/Revolving 3,275,000 1,600,000 1,100,000 3,300,000 1,100,000 10,375,000
Assess Fund
Total MSA 1,100,000 1,100,000 1,200,000 500,000 3,900,000
Total 4,375,000 2,700,000 2,300,000 3,800,000 1,100,000 14,275,000
Budget Impact/Other
0
This project may decrease maintenance costs.
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0
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II
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