ITEM 7.2 Resolution 15-77P
OtCI�ezoF
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Public Works
City Engineer Wagner
December 14, 2015
PRESENTER(s):
REVIEWED BY:
ITEM #:
City Engineer Wagner
City Administrator Johnson
7.2
AGENDA ITEM DETAILS
RECOMMENDATION:
Staff recommends approval of Resolution 15-77 Accepting a Feasibility Report regarding the Public
Improvements for extension of a street to approximately 1,100 feet south of 85th St in the Great River
Center development and setting an improvement hearing date.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No Yes
BACKGROUND/JUSTIFICATION:
To facilitate the development of Great River Centre 3rd Addition's Clutlot A public improvements must be
constructed. These improvements include a typical commercial street with bituminous trail and concrete
sidewalk, watermain and services, sanitary main and services and storm sewer. Currently no street exists
to service this or adjacent lots. Water and sanitary sewer has been stubbed towards the property south of
85th Street.
City staff has been in communication with the potential property owner/developer. They have requested
that the City consider constructing the public street and utilities and assess the adjacent benefiting
property owners. City Staff has completed the Feasibility Report that was requested by the City Council
on September 14, 2015 and request acceptance.
SUPPORTING DOCUMENTS: x ATTACHED ❑ NONE
• Resolution and Feasibility Report
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to Approve Resolution 15-77 Accepting a Feasibility Report regarding the Public Improvements
for extension of a street to approximately 1,100 feet south of 85th St in the Great River Center
development and setting an improvement hearing date.
BUDGET INFORMATION
FUNDING: BUDGETED x YES
Assessments
DEED Grant & Other City Financing Methods NO
WAC Funds
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
RESOLUTION NO. 2015-77
RESOLUTION RECEIVING REPORT
AND CALLING HEARING ON IMPROVEMENT
WHEREAS, pursuant to a resolution of the council adopted October 12, 2015, a
report has been prepared by Hakanson Anderson Associates, Inc. with reference to
infrastructure improvements to extend Quaday Avenue NE from 85t" Street to
approximately 1100' south, this report was received by the council on December 14,
2015;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF OTSEGO,
MINNESOTA:
1. The council will consider the making of such improvement in accordance
with the report and the assessment of benefiting property for all or a portion of the cost
of the improvement pursuant to Minnesota Statutes Chapter 429 with the estimated total
cost of the improvement being $635,393.
2. A public hearing shall be held on such proposed improvement on the 11th
day of January, 2016 in the council chambers of the city hall at 7:00 p.m. and the clerk
shall give mailed and published notice of such hearing and improvement as required by
law.
Adopted by the council this 14t" day of December, 2015.
Motioned By:
Seconded By:
All in Favor:
Those Opposed:
Jessica Stockamp, Mayor
Tami Loff, Clerk
ot394 Res Receiving Report and Calling Hearing on Improvement - Quaday Ave
I�
CITY OF 0
ot e
MINNESOTA
FEASIBILITY REPORT
FOR
PROPOSED PUBLIC STREET AND UTILITY IMPROVEMENTS WITHIN
GREAT RIVER CENTRE
CITY OF OTSEGO, MINNESOTA
December 2015
Prepared by:
� Hakanson
�I�Anderson
3601 Thurston Avenue
Anoka, MN 55303
Telephone: 763-427-5860
hereby certify that this plan, specification or report was prepared by me or under my
direct supervision and that I am a duly Licensed Professional Engineer under State of
Minnesota Statutes Sections 326.02 to 326.16.
26052 December 9, 2015
Ronald JC7`er O Reg. No. Date
December 9, 2015
Honorable Mayor and Council Members
City of Otsego
13900 90th St
Otsego, MN 55330
RE: Feasibility Study for Proposed Public Street and Utility Improvements within
Great River Centre
Dear Mayor & Council Members:
Please find enclosed a feasibility report for the above referenced project.
We have determined that the project is technically feasible and will benefit the properties
proposed to be assessed. The project is does not need to be added to another project to
make economic sense.
We are available to discuss the contents of the report at your convenience.
Sincerely,
HAKANSON ANDERSON ASSOCIATES, INC.
Ron Id J. er, PE
RJ W: rjw
Enclosures
cc: Lori Johnson, City Administrator
Tami Loff, City Clerk
Adam Flaherty, City Finance Director
D. Daniel Licht, City Planner
Andy MacArthur, City Attorney
Kevin Lamson, City Street Operations Manager
Kurt Neidermeier, City Utilities Manager
S:\Municipal\AOTSEGO\394\FEASIBILITY\OT394Feasibility Report.doc
CONTENTS
I. OBJECTIVE...................................................................................................................1
II. PROPOSED IMPROVEMENTS................................................................................. 1-2
A. Project Location...................................................................................................... 1
B. Existing Conditions................................................................................................. 1
C. Proposed Improvements......................................................................................... 2
III. INITIATION.................................................................................................................2
IV. PERMITS.................................................................................................................3
V. PRELIMINARY PROJECT SCHEDULE........................................................................ 3
i. Table I — Project Schedule
VI. PROPOSED FUNDING................................................................................................. 4
A. Estimated Project Cost....................................................................................... 4
i. Table II — Project Cost
B. Estimated Assessment/TIF/DEED Grant.........................................................4-5
i. Table III — Project Funding
VII. CONCLUSION AND RECOMMENDATION.................................................................. 5
Exhibits
Exhibit A -
Project Location Map
Exhibit B -
Proposed Site Layout
Exhibit C -
Proposed Typical Street Section
Exhibit D -
Preliminary Cost Estimate
Exhibit E -
Benefiting Properties Exhibit
Exhibit F -
Benefiting Property Assessment Summary
I. OBJECTIVE
The purpose of this Feasibility Report is to present the City of Otsego with a
preliminary examination of constructing public street and utilities improvements in the
Great River Centre (GRC) development in Otsego, Minnesota. The report discusses the
proposed scope of improvements, preliminary cost estimates, potential assessment
costs, and a proposed project schedule. The report has been prepared in compliance
with Minnesota State Statutes 429 for projects resulting in special assessments.
II. PROPOSED IMPROVEMENTS
A. Project Location
The proposed project will extend QuadayAvenue NE and utilities from 85th Street
NE to approximately 1,100 feet south and is located predominantly within the NW1/4 of
the SW1/4 of Section 23 Township 121N, Range 23W, in Otsego, Minnesota. The
improvement will be located within Outlot A of the Great River Centre 3rd Addition's
Outlot A as well a small area within platted right-of-way of the Otsego Commercial Park
development. 3 parcels will abut the proposed project. The project area and street
location is depicted on Exhibit A of this report.
B. Existing Conditions
Prior to the development, the property was tilled for agriculture production. The
area is currently undeveloped and unused commercial lot within in the southeast corner of
GRC commercial development and is under tax forfeiture. Some minor grading changes,
including a stormwater pond, were completed during the development of GRC. Most of
the land is within the FEMA (Federal Emergency Management Agency) Zone AE or flood
fringe due to its proximity to the Mississippi River. The 1 % probability flood elevation at
this location of the Mississippi River is 861. The predominant elevations of the site are
one to two feet below 861. Since the area is considered flood fringe and not flood way,
filling is allowed. Any structures in this area would need to be constructed to an elevation
of 864 or higher and a LOMR (Letter of Map Revision) required removing it from the flood
plain. Upon receiving a LOMR from FEMA the structure would have the ability to obtain
normal insurance.
Water and sewer utility lines are located at the northwestern corner of the property
near 85th Street. The utility lines are stubbed for future extension and are within a
drainage and utility easement. The existing storm pond located in Outlot K of GRC, was
designed and built with the commercial development to accommodate improvements to
the proposed project area site. Outlot K is owned by the City of Otsego. The storm pond
outlets to the TH (trunk highway) 101 ditch and then through culverts under TH101 to the
Mississippi River.
A small portion of a wetland has been identified and delineated near the
intersection of 85th Street within the project area.
Page 1
S:\Municipal\AOTSEGO\394\FEASIBILITY\OT394Feasibility Report.doc
C. Proposed Improvements
This proposed improvement project involves the construction of a City street in
conformance to City standards for a commercial/industrial type street. The
commercial/industrial street will be 46' back of curb to back of curb and matches those
already installed within Great River Centre. A 10' wide bituminous trail and 6' wide
concrete sidewalk are proposed along the west and east sides of Quaday Avenue
respectively. Public utilities will be located within the street for nearly the entire length of
road. The street is proposed to be located along the westerly edge of GRC 3rd Addition
Outlot A. A small portion of the existing ROW dedicated for Quaday Avenue as part of
the Otsego Commercial Park, will be utilized. With one exception, a 45 MPH design
speed shall be utilize as required by the City for collector streets. A 30 MPH design
speed will be used for the horizontal curve as Quaday Avenue approaches the
intersection to 85th Street. This is proposed for multiple reasons: a more perpendicular
intersection of Quaday Avenue with 85th Street, to minimize the amount of wetland
impact, to maximize the remaining portion of Outlot A for development, and allows better
access to property(s) to the east of Outlot A. The street will be designed to not have an
elevation lower than 859 or 2' lower than the 1 % probability flood elevation in order to
meet the City requirements. A temporary or interim 100' diameter cul-de-sac would be
constructed at the south end for vehicles to turn around. See Exhibit B for the proposed
street and cul-de-sac layout.
Sanitary sewer and watermain service would be extended to all lots. The proposed
layout of sanitary sewer and watermain are located in Exhibits B. The watermain would
be extend the entire length of the project and be available for extension and looping
purposes. Sanitary sewer would extend to Pear the south end of the project and would be
able to service slab on grade constructed buildings typical of commercial/industrial type
buildings already within the GRC development. Sanitary sewer extension to the south will
not occur. Sanitary sewer service to areas south will be provided from the south and the
west.
III. INITIATION
A light industrial company approached the City of Otsego regarding relocating and
exdpanding their current business within the tax forfeiture property of Great River Centre
3r Addition Outlot A. The property currently does not have the infrastructure to facilitate
its planned zoning use. The City of Otsego focused on potential funding sources
necessary to complete the infrastructure improvements. One of those funding sources
was assessments to benefitting properties, thus causing the Otsego City Council to
authorize the completion of an appraisal of those properties and a Feasibility Report for
the infrastructure project.
Page 2
SAMunicipal\A0TSEG0\394\FEASIBILITY\OT394 Feasibility Report.doc
IV. PERMITS
A Minnesota Pollution Control Agency (MPCA) NPDES General Construction
Stormwater permit will be required for this project. A small area of wetland fill is proposed
and will require a permit though it is estimated that the amount of fill will be de-minimus.
Typical MN Department of Health and MPCA permits required for the extension of
municipal water and sewer lines will be obtained. No other permits should be required for
this project.
V. PRELIMINARY PROJECT SCHEDULE
The schedule for this project will be affected by the date the City Council orders the
preparation of plans and specifications. A more precise project schedule will be prepared
by our office once the City Council has determined these dates. We have prepared a
preliminary schedule shown in the following table.
Table I
Project Schedule
Great River Centre Improvements
September 14, 2015
City Council Orders Feasibility Report
December 14, 2015
City Council Accepts Feasibility Report &
Sets Date for Improvement Hearing
December 14, 2015
Council Approves Plat
December 14, 2015
Council Order Plans and Specs
January 11, 2016
Improvement Hearing with Property Owners (if
necessary)
February 8, 2015
Council Approves Plans, Orders Advertising
Februa /March of 2016
Bid Project — Sell Property to Developer
March 8, 2016
Open Bids
March 14, 2016
Set Assessment Hearing (if necessary) &
City Council Awards Project
May, 2016
Project Begins
July 15, 2016
Substantial Completion
August, 2016
Set Assessment Hearin if necessary)
September, 2016
Assessment Hearin (if necessary)
July 1, 2017
Final Completion
Page 3
S:\Municipal\AOTSEGO\394\FEASIBILITY\OT394Feasibility Report.doc
VI. PROPOSED FUNDING
A. Estimated Project Cost
Costs for street construction along with the proposed trail, sidewalks and public
utilities of storm water, sanitary sewer and water were analyzed. A summary of the
estimated cost is as follows:
Table II
Great River Centre Improvements
STREET & UTILITY CONSTRUCTION
PROJECT ESTIMATED COST
ITEM
STREET
STORM SEWER
SANITARY SEWER
WATERMAIN
TOTAL ESTIMATED CONSTRUCTION COST
OVERHEAD 25%
TOTAL ESTIMATED PROJECT COST
A detailed cost estimate is located in Exhibit D.
B. Financing and Assessments
ESTIMATED COST
$ 242,741.00
$ 92,890.00
$ 54,360.00
$ 118,323.00
$ 508,314.00
$ 127,079.00
$ 635,393.00
The cost of the project is proposed to be paid for via a DEED grant, tax increment
financing and assessments to benefiting properties. Basic cost includes the construction
of streets, trails, sidewalks, storm sewer, sanitary sewer and watermain. Costforthetrunk
portion of the watermain would be paid from the City's WAC funds.
The amount of payment by each property owner would be based upon an
agreement between the City and the property owners. Properties on the west and south
end of the project received very little benefit according to a preliminary appraisal. The
preliminary appraisal indicated the useable property was marginalized by a wetland
bisecting two of those properties and the southernmost property on the west side not
receiving enough street frontage to accommodate development. The assessments to the
light industrial user who is proposing to purchase the properties were based on preliminary
appraisal amounts and agreement of the parties. The agreement states that properties
are benefitted to the amount of the assessment agreed to. The remaining two east side
properties to be initially owned by the City of Otsego would have assessments allocated to
them proportional by area in comparison to the light industrial users property. A summary
of assessments is located in Exhibit F. Table III summarizes the proposed funding
sources:
Page 4
S:\Municipal\AOTSEGO\394\FEASIBILITY\OT394Feasibility Report.doc
Table III
Great River Centre Improvements
STREET & UTILITY CONSTRUCTION
PROJECT FUNDING
ITEM ESTIMATED COST
DEED GRANT $ 317,696.00
ASSESSMENTS $ 317,697.00
TOTAL PROJECT FUNDING $ 635,393.00
VII. CONCLUSIONS AND RECOMMENDATIONS
This report analyzed the feasibility of constructing a public street (QuadayAvenue)
south of 85th Street within Outlot A of GRC 3rd Addition. The improvements include street,
trail, sidewalk, storm sewer, water and sanitary sewer.
The estimated project cost for these improvements is $635,393. The project will be
funded through assessments to the benefiting properties and the City of Otsego (through
grants or other financing methods). Additional funding for the trunk portion of the
watermain will be provided by the WAC funds.
The project can be accomplished as proposed, and need not be constructed in
conjunction with any other project. The City and the persons assessed should review the
project for benefit to determine the economic feasibility of the proposed improvements.
The proposed improvements are necessary, cost effective and feasible from a technical
and engineering standpoint, and benefits the properties shown on Exhibit E and the list of
owners shown on Exhibit F.
Page 5
S:\Municipal\AOTSEGO\394\FEASIBILITY\OT394Feasibility Report.doc
EXHIBITS
S:\Municipal�AOTSEGO\394\FEASIBILITY\OT394Feasibility Report.doc
LOCATION MAP
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EXHIBIT C
EXHIBIT D
City of Otsego
QUADAY AVENUE IMPROVEMENTS
PRELIMINARY ENGINEER'S COST ESTIMATE
Bid Schedule "A" - Streets & Trail
Item
No.
Description
Unit
Estimated
Quantity
Unit Price
Total Estimated
Extension
1
Mobilization
LS
1
$15,000.00
$15,000
2
lRernove Curb & Gutter
LF
100
$3.00
$300
3
Sawin Bit Pavement Full Depth)
LF
100
$4.00
$400
4
Common Excavation P
CY
1350
$4.50
$6,075
5
Salvaged Topsoil From Stockpile L
CY
368
$3.50
$1,288
6
Salvaged Topsoil in Stockpile E
CY
1650
$3.50
$5 775
7
Aggregate Base Class 5 Mod
TON
2301
$13.00
$29 913
8
Will Bituminous Surface 1.5"
SY
17
$6.00
$102
9
Bituminous Material For Tack Coat
GAL
281
$3.00
$843
10
Type SP 9.5 Wearing Course Mixture 3,C
TON
475
$68.00
$32 300
11
Type SP 12.5 Wearing Course Mixture 2,B Trail
TON
207
$90.00
$18,630
12
Type SP 12.5 Non Wear Course Mixture 3,C
TON
790
$65.00
$51,360
13
Sidewalk Concrete 3Y46
SF
6288
$5.00
$31,440
14
Concrete Curb & Gutter Design B618
LF
2200
$14.00
$30 800
15
8" Concrete Valley Gutter
SY
48
$75.00
$3,600
16
Truncated Domes
SF
72
$55.00
$3,960
17
Traffic Control
LS
1
$1,500.00
$1,500
18
Sign Panels, Type C
SF
56.25
$32.00
$1,800
19
Silt Fence, Type MS
LF
1200K$2,000.00
0
$2,400
20
Storm Drain Inlet Protection
EACH
9
0
$675
21
Stabilized Construction Exit
LS
1
$2,000
22
Seedin
ACRE
0.5
_00$1,500
23
Erosion Control Blanket - Cate o 2
SY
100
0
$250
24
4" Solid Line White - Paint
LF
2400
$0.0
$240
25
Crosswalk Markin - Paint
SF
216
$1.50
$324
26
24" Solid Line Yellow - Paint
LF
23
$2.45
$66
27
4" Double Solid Line Yellow - Paint
LF
1100
$0.20
$220
rotal - Bid Schedule "A"
Bid Schedule "B" - Storm Sewer
pa.tc' r x i.uu
29
27" RC Flared End Section
EACH
1
$1,750.00
$1 750
30
15" RC Pipe Sewer Design 3006 CL V all depths)
LF
424
$38.00
$16,112
31
18" RC Pipe Sewer Design 3006 CL V all depths)
LF
325
$41.00
$13,325
32
21" RC P' a Sewer Design 3006 CL V all depths)
LF
215
$45.00
$9,675
33
24" RC Pipe Sewer Design 3006 CL V all depths)
LF
290
$47.00
$13,630
34
27" RC Pipe Sewer Design 3006 CL III all depths)
LF
350
$50.00
$17,500
Construct Drainage Structure Design 2' X 3'
EACH
4
$2.000.00
$8,000
36
Construct Drainage Structure Design 48-4020
EACH
3
$2 500.00
$7,500
R35
37
Construct Drainage Structure Design 60-4020
EACH
1
$3,500.00
$3,500
38
Articulated Interlocking Block Open Cell, Type A
SY
16.5
$115.00
$1,898
Total - Bid Schedule "B" $92,890
S.,WunicipallAOTSEGO13941FEASIBIt1TW 394 Feasibility EngEst (9-2315).xlsx Page 1 of2
EXHIBIT D
City of Otsego
QUADAY AVENUE IMPROVEMENTS
PRELIMINARY ENGINEER'S COST ESTIMATE
Item
Estimated
Total Estimated
No.
Description
Unit
Quantity
Unit Price
Extension
Rid Srhadnle "C" - Watermain
39
Connect To Existing 12" Watermain
EA
1
$1,500.00
$1 500
40
Salvage And Reinstall Hydrant, 6" Pipe And 6" Gate Valve
EA
1
$3,000.00
$3,000
41
Hydrant With 6" Valve
EA
4
$4,800.00
$19,200
42
12" Watermain Ductile Iron CI 52
LF
1040
$50.00
$52,000
43
6" Watermain Ductile Iron CI 52
LF
190
$30.00
$5,700
44
12" Butterfly Valve And Box
EA
3
$3,500.00
$10,500
45
6" Gate Valve And Box
EA
4
$2,100.00
$8,400
46
lWatermain Fittings
LBS
4005
$4.50
$18,023
Total - Bid Schedule "C"
Rirl Crharhda "D" - Rani4ary RowP_r
4.118,323
47
Connect To Existing Sanitary Sewer
EA
1
$1.500.00
$1,500
48
8" PVC Pipe Sanitary Sewer SDR 35 12'-14' Depth)
LF
1162
$30.00
$34,860
49
Standard 48" Diameter Sanitary Sewer Manhole 0'-8' Depth)
EA
4
$3,500.00
$14,000
50
Extra Depth Manhole 48" Diameter
VF
20
$200.00
$4,000
total - Bid Schedule "D"
TOTAL PROJECT COSTS
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Total - Bid Schedule "A" - Streets & Trail $242,741
Total - Bid Schedule "B" - Storm Sewer $92,890
STREET CONSTRUCTION Cost $335,631
125% of Construction Costs $419,539
Total - Bid Schedule "C" - Watermain $118,323
Total - Bid Schedule "D" - Sanitary Sewer $54,360
UTILITY CONSTRUCTION Cost $172,683
125% of Construction Costs $215,854
$635,393.00
S:WunlelpaMOTSEGOW41FEASIBILITY\ot394 Feasibility EngEst (9-23-15).x1sx Page 2 or2
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