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ITEM 4.1 Wokson Hills/Autumn WoodsOtSTY.F O MINNESOTA ✓ DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Public Works Ron Wagner, City Engineer February 13, 2017 PRESENTER(s): REVIEWED BY: ITEM #: City Engineer Wagner Interim City Administrator 4.1 Flaherty AGENDA ITEM DETAILS RECOMMENDATION: Hold public improvement hearing regarding improvement of streets within Wokson Hills (59th Street, 58th Street and Quenroe Avenue) and Autumn Woods (56th Street, 57th Street and Quilley Avenue). ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Yes —At this meeting BACKGROUND/JUSTIFICATION: Consistent with the Capital Improvement Plan (CIP) and the Annual Street Renewal Plan, streets are rated and placed in order of City Councils and staff's recommendation to complete an improvement project. Thus the 2017 Street Renewal Project for the streets in Wokson Hills and Autumn Woods is proposed. The streets within Wokson Hills and Autumn Woods are paved. The existing roadway consists of a 2 %' of bituminous surface approximately 24' feet wide. The pavement is 28-30 years old and is experiencing extensive block and thermal cracking as well as some surface raveling due to its age. The value of existing housing is positively benefited by accessing a bituminous paved street in good condition. The existing street surfaces in Wokson Hills and Autumn Wood have PCI (Pavement Condition Index) Ratings of 51 and 57 respectively, well below the average in the City of Otsego. Typically, pavements with PCI Ratings around 50 are in their final stages of useful life and will need to be reconstructed or overlaid in the very near future. If the project is not completed in a timely fashion, the street will quickly deteriorate to a point where an overlay would not be the prudent construction practice and a much more expensive reclaim and repave would need to occur. Our estimates show this would cost two to three times as much. City Council authorized the preparation of a Feasibility Study to determine what needs to be completed to remedy the issues, determine a cost estimate and allocate costs. A public hearing is being held to present the study to the residents. The council will hear resident's comments or concerns regarding the possibility of continuing toward a project and with regard to the potential for assessments in accordance with MN State Statue 429. The feasibility report estimated the total project cost to be $205,373.00. After conducting final design and specification work, the estimated total project cost is $204,855.00. The project will be paid for from the City's Pavement Management Fund with funding being 50% special assessments to benefitting properties and 50% general property tax levy dollars. If the City Council chooses to move forward with the project, the next steps would be to approve plans and specifications that have been prepared by the City Engineer and to authorize staff to advertise for bids on the project. SUPPORTING DOCUMENTS: X ATTACHED ❑ NONE List: Feasibility Report Current Project Cost Estimate Proposed Construction Plans Nagel Associates Estimated Benefit Summary Resolution Accepting Plans and Specifications and Authorizing Advertisement for Bids POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Motion to Approve Plans and Specifications for the 2017 Street Renewal project consisting of patching and an overlay of the streets within Wokson Hills and Autumn Woods and Resolution 2017-14 authorizing advertisement for bids. RLJDGET INFORMATION FUNDING: BUDGETED Pavement Management Fund - 201 Yes: CIP Budget Estimate of $194,507 0 OtCITY OF e 0 MINNESOTA FEASIBILITY REPORT FOR 2017 OTSEGO STREET RENEWAL PROJECT OF PROPOSED STREET OVERLAYS WITHIN WOKSON HILLS AND AUTUMN WOODS SUBDIVISIONS CITY OF OTSEGO, MINNESOTA January 2017 Prepared by: � Halcanson II�Anderson 3601 Thurston Avenue Anoka, MN 55303 Telephone: 763-427-5860 I 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. Ronald J. ner 26052 Reg. No. Date TABLE OF CONTENTS TITLE SHEET TABLE OF CONTENTS I. INTRODUCTION.......................................................................................1 II. PROPOSED PROJECT............................................................................1 Ill. INITIATION................................................................................................ 2 IV. FEASIBILITY.............................................................................................2 V. RIGHT-OF-WAY / EASEMENTS...............................................................2 VI. PERMITS..................................................................................................2 VII. COMPLETION...........................................................................................2 VIII. PRELIMINARY PROJECT SCHEDULE....................................................3 IX. ESTIMATED PROJECT COST.................................................................4 X. PROPOSED FUNDING.............................................................................4 XI. ESTIMATED ASSESSMENT.....................................................................5 XII. CONCLUSION AND RECOMMENDATION ..............................................6 EXHIBITS LOCATIONMAP..................................................................................................A PHOTOS.............................................................................................................. B PROPOSEDSTREET SECTIONS....................................................................... C BENEFITING PROPERTIES MAPS..................................................................... D 4 PROPOSED STREET OVERLAY WITHIN WOKSON HILLS AND AUTUMN WOODS SUBDIVISIONS CITY OF OTSEGO, MN INTRODUCTION The purpose of this Feasibility Report is to present the City of Otsego with a preliminary examination of municipal street improvements for streets within Wokson Hills and Autumn Woods subdivisions in Otsego, Minnesota (see Exhibit A — Project Location Map). The report discusses the proposed scope of improvements, preliminary cost estimates and a project schedule. The report has been prepared in compliance with Minnesota State Statutes 429 for projects resulting in special assessments. Wokson Hills was constructed in 1987. The Autumn Woods Additions were constructed between 1988 and 1989. The area south of 60th Street and east of TH101, which includes both Wokson Hills and Autumn Woods, was part of Frankfort Township until the City of Otsego annexed the area in 1994. The conditions of the streets within Wokson Hills and Autumn Woods have deteriorated to a point that an overlay is recommended. The amount of crack filling and patching necessary is increasing and becoming substantial (see Exhibit B — Photos). If the streets are not overlayed soon the condition of the existing pavement will be too poor to overlay and a full depth reclaim would be necessary. The existing street surface in Wokson Hills and Autumn Wood have PCI (Pavement Condition Index) Ratings of 51 and 57 respectively, well below the average in the City of Otsego. Typically, pavements with PCI Ratings of 50 or less are in their final stages of useful life and will need to be reconstructed or overlayed in the very near future. The Wokson Hills and Autumn Woods streets have been included on the Street Renewal list and included in the Capital Improvement Plans (CIP) for several years. Due to this, the City Council authorized a Feasibility Report be completed to determine costs and potential sources of funding. The existing roadway consists of a 2 Y2" of bituminous surface approximately 24' feet wide. 2 1/2" thick bituminous does not meet the current requirement for residential streets which is a minimum of 3'/2". The pavement is 28-30 years old and is experiencing extensive block and thermal cracking as well as some surface raveling due to its age, all of which an overlay can be a good remedy. Cracks or areas that dip or heave and areas where the pavement is disintegrating (pothole) would need to be removed and patched prior to the overlay. II. PROPOSED PROJECT The proposed street improvement project consists of improving streets within Wokson Hills, specifically 59th Street, Quenroe Avenue, and 58th Street as well as streets within Autumn Woods, specifically Quilley Avenue, 56th Street, and 57th Street. Improvement work includes full depth patching in required areas, bituminous milling and placement of a 1 Y2" overlay and topsoil shouldering. The proposed street typical section would be in general conformance with current City Street Standards. The street section would be a paved rural section with no curb and gutter. Existing driveways would be matched (elevation and material) with the overlay (see Exhibit C). Surface water within the project area will be conveyed the via the existing storm sewer system through a combination of driveway culverts, ditches and cross culverts. Center line culverts will be reviewed for structural integrity and replaced if needed. No ditch work or driveway culvert replacement is included as part of this project. III. INITIATION The feasibility report was initiated by the City Council due to issues regarding the age and pavement condition of the streets. IV. FEASIBILITY From an engineering standpoint, the project is feasible, and the value of existing housing is positively benefited by accessing a bituminous paved street in good condition. It 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. V. RIGHT-OF-WAY / EASEMENTS The existing streets and proposed street improvements are located within the existing 66 foot wide right-of-way. VI. PERMITS No permits would be required to accomplish the work. VII. COMPLETION This project is proposed to be completed during the 2017 construction season. 2 VIII. PRELIMINARY PROJECT SCHEDULE The preliminary project schedule for the 2017 Otsego Street Renewal Project: Table I City of Otsego Streets within Wokson Hills and Autumn Woods Preliminary Project Schedule 2017 1. 2. City Council Receives Feasibility Report and Schedules Public Hearing and Orders Plans and Specs City Council Holds Public Hearing for Improvement Project January 9 February 13 3. City Council Approves Plans and Specifications and City Council Approves March 20 and Authorizes to Advertise for Bid 4. Open Bids April 18 5. City Council Considers Award of April 24 Contract or Discontinues Process 7. If Awarded, Contractor Completes By August 31 Construction 8. City Council Holds Assessment Hearing September or October and Adopts Assessment Roll 3 IX. ESTIMATED PROJECT COST Included in this report is a detailed estimate of construction improvements. The costs quoted herein are estimates only and prices. The quantities are estimates also. The contractor will be completed. The cost estimates are based on previous projects cost: Table II estimates the cost for the paved rural section. costs for the street are not guaranteed paid only for work Table II City of Otsego Overlay of Streets within Wokson Hills and Autumn Woods Preliminary Cost Estimate - Rural Section X. PROPOSED FUNDING The funding for this project is expected to be provided by two sources, the City of Otsego and the benefiting property owners. The project costs could be split between the City of Otsego and the benefiting properties (see Exhibit D). The benefiting property owners are proposed to be assessed approximately $102,686.40 and the City would provide the remaining 50% of the cost approximately $102,686.60. Past street renewal projects have been assessed this method since 2014. CI Estimated Unit cost per Extended Total Item Description Quant ity •- Unit Per Mobilization 1 LS $8,504.00 $ 8,504.00 Bituminous Pavement Removal 1202 SY $5.00 $ 6,010.00 Sawing Bit Pavement (Full Depth) 848 LF $2.50 $ 2,120.00 Mill Bituminous Surface (1.5") 1914 SY $5.00 $ 9,570.00 Bituminous Material For Tack Coat 1067 GAL $3.00 $ 3,201.00 Type SP 9.5 Wearing Course Mixture (2,C) 1720 TON $55.00 $ 94,600.00 Type SP 12.5 Non Wear Course Mixture (2,C) - PATCHES 509 TON $80.00 $ 40,720.00 Remove CMP Culvert 50 LF $5.00 $ 250.00 24" RC Pipe Apron 1 EA $750.00 $ 750.00 24" RC Pipe Sewer Design 3006 CL III 48 LF $50.00 $ 2,400.00 Traffic Control 1 LS $90.00 $ 500.00 Boulevard Topsoil Borrow 135 CY $56.00 $ 7,560.00 Turf Establishment 1 LS $2,000.00 $ 2,00.00 Construction Total 1 $ 00 15% 1$ 26,788.00 6Overhead 00 X. PROPOSED FUNDING The funding for this project is expected to be provided by two sources, the City of Otsego and the benefiting property owners. The project costs could be split between the City of Otsego and the benefiting properties (see Exhibit D). The benefiting property owners are proposed to be assessed approximately $102,686.40 and the City would provide the remaining 50% of the cost approximately $102,686.60. Past street renewal projects have been assessed this method since 2014. CI XI. ESTIMATED ASSESSMENT There are a total of 60 potential benefiting properties with this project. The per unit method of assessment was used as all the benefiting properties are single family homes and use the street in much the same manner, with the exception of one property. This other property is a 40 acre parcel that is currently being farmed. The main accesses to this property appears to be a field access off of Quenroe Avenue in Wokson Hills but the property does also have access to Quilley Avenue in Autumn Woods and therefore will receive 2 assessments in this report. MnDOT owns the property at the northwest corner of the intersection not Quilley Avenue and 53rd Street. MnDOT cannot be assessed for these improvements and therefore this property was removed from the benefiting property total. Therefore, by dividing the total benefiting property assessment cost ($102,686.40) by 60, the number of assessable units, an assessment value is obtained. The estimated cost per unit was determined to be $1,711.44 (Table III Benefiting Property Assessment Summary). Table III Benefiting Property Assessment Summary for Streets within Wokson Hills and Autumn Woods Subdivisions Ref # PID# NAME PROPERTY ADDRESS PROPOSED ASSESSEMENT 1 118-134-001010 Thomas J & Jennifer L Ind kiewicz 16532 59th St NE S1,711.44 2 118-134-001020 Keith R Ernst 16570 59th St NE $1,711.44 3 118-134-001030 Harry T Christensen 16590 59th St NE $1,711.44 118-134-001040 Kevin J & KimberlyL Peterson 16620 59th St NE $1,711.44 118-134-001050 Robert C & Janet M Goble 16650 50th St NE118-134-001060 Mark L Gordon 16678 59th St NE $1,711.44 P64 118-134-001070 Donald G & Ma C Schmaus 16716 59th St NE $1.711.44 118-134-001080 JeffreyR & Donna L Krueger 16736 59th St NE 51,711.44 118-134-002010 Gerald B & Susan L Brown 16551 59th St NE $1,711.44 10 11 12 118-134-002020 118-134-002030 118-134-002040 Michael S & Sandra Moen Vern F & Laurie A Grassel Jeffrey P Schneider 16579 59th St NE 16597 59th St NE 16637 59th St NE $1,711.44 $1,711.44 $1,711.44 13 118.134-002050 Bruce J & Maria A Eilers 16665 50th St NE $1,711.44 14 15 16 118-134-002060 118-134-002070 118.134-002080 Thomas L &Vivian B Woitalla Jill Wisner Kevin D & Denice M Kell 16723 59th St NE 5882 Quenroe Ave NE 5804 Quenroe Ave NE $1,711.44 $1.711.44 $1,711.44 17 118-134-002090 Russell A & Rabin L Smith 5800 Quenroe Ave NE $1,711.44 18 118-134-002100 Rusian & Natallia Liashko 16668 58th St NE 19 11 B-134-002110 Ga W Vlfitthuhn & Tammie L Towle 16642 58th St NE $1,711.44711.44 51, 20 118-134-002120 Todd M & Debra L Jacobson 16610 58th St NE $1,711.44 21 22 118-134-002130 118-134-003010 Wesley M Ness & Jill M Hennessey Kurt M Bauerly 16580 58th St NE 16535 58th St NE $1,711.44 $1,711.44 23 118-134-003020 Mark J Wolf 16581 58th St NE $1.711.44 24 118-134-003030 Steven D & Renae E Mcal ine 16611 58th St NE $1,711.44 25 118-134-003040 David R & Lois M LEE 16645 58th St NE $1,711.44 5 26 118-134-003050 Lucus Munn 16675 58th St NE $1,711.44 27 118-134-003060 Mark D & Denise J Wenz 16703 58th St NE $1,711.44 28 118-134-003070 Carrie L Pomeroy 16735 58th St NE $1,711.44 29 118-135-002010 Bruce K & Jennifer L Folkens 5430 QuIlley Ave NE $1.711.44 30 118-135-002020 Daryl A & Sahvanna I Caldwell 5480 Quilley Ave NE $1,711.44 31 118-135-002030 Jeffrey A & Kay A Carlson 5544 QuIlley Ave NE $1,711.44 32 118-135-002040 Bruce A & Lois B Graham 5590 Quilley Ave NE $1,711.44 33 118-135-002050 Daniel S & Kari Hormann 5634 Quilley Ave NE $1,711.44 34 118-135-002060 Edmond A & Helen C Sworsky 5640 Quilley Ave NE $1,711.44 35 118-135-002070 Jennifer A Erikson 5648 Quilley Ave NE $1,711.44 36 118-135-002080 Michael W & Abigail Hoffman 5650 Quilley Ave NE $1.711.44 37 118-135.002090 Justin Ende 16800 56th St NE $1,711.44 38 118-135-002100 Thomas A & Dawn C Kennedy 16820 56th St NE $1.711.44 39 118-135-002120 Patrick R & Denise M Wallensen 16840 56th St NE $1,711.44 40 118-135-002130 David J & Nancy C Riley 16850 56th St NE $1,711.44 41 118-135-002140 Michael G & Geral n M Wiggins 16860 56th St NE $1,711•44 42 118-135-002150 John B & Kimbedy F Remmen 5656 Quilley Ave NE $1,711.44 43 118-135-002160 Megan Cleary 16851 57th St NE $1,711.44 44 118-135-002170 Richard R & Nancy A Martin 16861 57th St NE $1,711.44 45 118-135-002180 Timothy M & L nelle M Neui ens 16871 57th St NE $1.711.4 46 118-135-002190 Kevin J & Carolyn A Brenny 16824 57th St NE $1.711.44 47 118-135-001110 Christopher P & Stacey D Hyde 5681 Quilley Ave NE $1.711.4 48 118-136-001020 David J & Susan A Wiers alfa 5661 Quilley Ave NE $1,711.44 49 118-136-001030 Seth S & Laura H Richter 5651 Quilley Ave NE $1,711.4 50 118-136-001010 Jeffrey F & Sheri H Mcginty 5649 Quilley Ave NE $1,711.44 51 118-135-001070 Brian C & Susan R Folkens 5645 Quilley Ave NE $1,711.44 52 118-135-001060 Eric D & Christy A Chapman 5641 Quilley Ave NE $1,711.44 53 118-135-001050 David J & Michelle M Bakke 5631 Quille Ave NE $1,711.44 54 118-135-001040 Charles P Tor erson 5609 Quilley Ave NE $1.711.44 55 118-135-001030 Bradley J & Stephanie J Groves 5571 Quilley Ave NE $1,711.44 56 118-135-001020 Madl n M Post & John Lefebvre 5541 Quilley Ave NE $1,711.44 57 118-135-001010 Paul B & Llsa A Young 5491 QuIlley Ave NE $1,711.44 58 118-172-001010 Sharleen Orth 5451 Quilley Ave NE $1,711.44 59 118.802-024300 MnDOT 16710 53rd St NE $0•00 60 118-802-021100 Fae E Jacobs & Loretta F Moos Unassigned $1.711.4 61 118-802-021100 Fae E Jacobs & Loretta F Moos Unassigned $1,711.44 5102,686.40 The assessment portion of the project would be approximately 50% of the total project. XII. CONCLUSION AND RECOMMENDATION This report analyzed the feasibility of improving streets within the Wokson Hills and Autumn Woods subdivisions. The proposed improvements are necessary, cost effective and feasible from a technical and engineering stand -point, and benefit the properties proposed as shown on Exhibit D. The project is proposed to be funded by assessing the benefiting properties as well as receiving funds from the City of Otsego. C: EXHIBIT A PROJECT LOCATION ' ot§qgo TY OF MINNESOT LEGEND =STREETS TO BE OVERLAID H EXHIBIT A 150 0 150 300 0aa14 2016 — 9:21— SCALE IN FEET K:\cad—n9\PROJECM\4UHIOPAL\OT392\2017\OT392-2017 FEASBUN.drg OT392-201; EXHIBIT B n .. d t� WOKSON HILLS {mrrw 6 r 1 AUTUMN WOODS AUTUMN WOODS EXHIBIT C TAPER TOPSOIL SHOULDER AS NEEDED SEED ---- TYPICAL SECTIONS PROPOSED OVERLAY 12' 12' otCITY OF se o MINNESOTA -1.5" BITUMINOUS WEAR COURSE OVERLAY TACK TAPER TOPSOIL (LVWE45035B) SHOULDER AS „ PER Fr NEEDED " PER FT. EXISTING BITUMINOUS ROADWAY ti 2Y2" EXISTING GRAVEL BASE MILLING @ CONCRETE DRIVEWAY 20' TAPER I A--� MILL YYLUUG— SECTION A -A 6, .- 0" MILLING DEPTHS MILLING - BITUMINOUS DRIVEWAY 2" OVERLAY 3' (MIN) Jon 2017 1CM K\cad—d_m9\PROJECTS\U\4UNIGIPAL\OT792\201]\01792-2017 PEA9®IJTY.drg o" 1.0 DRIVEWAY oll DEPTH A SEED 20' TAPER o" o" MILL WEDGE 3' BACK FROM EXISTING EDGE OF ROAD OR SUFFICIENT DISTANCE TO PROVIDE A MINIMUM SLOPE. IF REQUIRED DISTANCE IS GREATER THAN 10' NOTIFY ENGINEER FOR DIRECTION. EXHIBIT C EXHIBIT D BENEFITING PROPERTIES (61) CITY OF se o MINNESOTA LEGEND ® PROPOSED ASSESSED PROPERTY 750 0 750 300 J. G4,2017 — mmom SCALE IN FEET N:\c.d-.g\FR0 CTS\MUNIOPAL\0T392\2017\OT392-2017 FEAsBun.a.g Currently MnDOT And Not Included Assessment Roll EXHIBIT D City of Otsego 2017 Street Renewal Project Wokson Hills and Autumn Woods ENGINEER'S COST ESTIMATE b, M:.......,A A A /9-- Mmrlo Item No. Spec. Ref Description Estimated Quantity Unit Unit Price Total Estimated Extension 1 2021.500 MOBILIZATION 1 LS $8,471.00 $ 8,471.00 2 2104.500 REMOVE METAL CULVERT 50 LF $5.00 $ 250.00 3 2104.510 REMOVE BITUMINOUS PAVEMENT 1732 SY $5.00 $ 8,660.00 4 2104.510 SAWING BIT PAVEMENT FULL DEPTH 1737 LF $2.50 $ 4,342.50 5 2211.500 CL 5 AGGREGATE BASE 19 TON $18.50 $ 351.50 6 2211.500 CL 5 AGGREGATE DRIVEWAY 8 TON $20.00 $ 160.00 7 2232.500 MILL BITUMINOUS SURFACE 1.5") 2022 SY $5,00 $ 10,110.00 8 2357.500 BITUMINOUS MATERIAL FOR TACK COAT 998 GAL $3.00 $ 2,994.00 9 2360.500 TYPE SP 9.5 WEARING COURSE MIXTURE (2,C) 1684 TON $55.00 $ 92,620.00 10 2360.500 TYPE SP 12.5 NON WEAR COURSE MIXTURE 2,C) - DRIVEWAY/PATCHES 328 TON $100.00 $ 32,800.00 11 2501.520 24" RC PIPE APRON 2 EA $750.00 $ 1,500.00 12 2503.540 24" RC PIPE SEWER DESIGN 3006 CL III ALL DEPTHS) 40 LF $50.00 $ 2,000.00 13 2563.600 TRAFFIC CONTROL 1 LS $900.00 $ 900.00 14 2574.530 BOULEVARD TOPSOIL BORROW 196 CY $56.00 $ 10,976.00 15 2575.560 TURF ESTABLISHMENT 1 LS $2,000.00 $ 2,000.00 2476 nie nn Total - Bid Schedule "B" ' "". Bid Schedule "A" - Select Patching and 1-1/2" Overlay $178,135 15% Administration, Legal, & Engineering $26,720 TOTAL ESTIMATED PROJECT COST $204,855 S:WunlclpaMOTSEG013921201TOT392-2017 EngEsl brent Page i of 1 File # V1611001 Report Type Real Estate Consulting Letter Report Ail Effective Date January 11, 2017 Prepared By: Ethan Waytas, Appraiser William R. Waytas, Appraiser Nagell Appraisal Incorporated 12805 Highway 55, Suite 300 Plymouth, Minnesota 55441 Tel: 952.544.8966 1 Fax: 952.544.8969 NAGELL APPRAISAL INCORPORATED 12805 Highway 55 #300 Minneapolis 952-544-8966 Plymouth, MN 55441 St. Paul 651-209-6159 Established in 1968 Central Fax 952-544-8969 City of Otsego January 13, 2017 Attn: Andrew MacArthur, City Attorney 3601 Thurston Avenue North, #103 Anoka, MN 55303 To Andrew MacArthur: Per your request, this is a letter report is to assist the city for guidance regarding a potential street improvement project within the city (see attached map for the location of the streets in the project). The proposed project is a mill and overlay of existing streets. In addition, the road will be substantially thicker. This report is not an appraisal, but rather provides a preliminary opinion of a general range of market benefit, if any, to properties in the project area. SCOPE OF ASSIGNMENT In accordance with your request, a drive-by viewing of the properties has been made along with some general market comments regarding benefit (if any) for the proposed street improvement project as it relates to the subject market. As noted in the engagement letter, no specific sales data has been collected for this assignment. The general market comments are based on past appraisals, experience, and market information. Pictures of the streets were taken on January 11, 2017 by William Waytas, appraiser, along with an aerial viewing on the county GIS website, and engineer images of the street in summer (snow coverage on January 11, 2017). A project feasibility report was provided by the city that was completed by Hakanson Anderson engineering. PROJECT The City of Otsego is proposing to do a mill and overlay of the existing roads within the project areas. The roads in the project are: 59th Street NE, Quenroe Avenue NE, 58th Street NE, Quilley Ave NE, 56th Street NE, and 57th Street NE. Per request, you desire to know the benefit (if any) as it impacts properties in the project area. Motivation for the road improvement project stems from deteriorating road surface. Nagell Appraisal Incorporated 1952.544.8966 Page 1 AREA DESCRIPTION The City of Otsego is an outlying suburban community about 45 minutes northwest of Downtown Minneapolis. Due to the expanding metro area and the proximity of Interstate 94 and County Road 101 and Highway 10, the western and eastern edges of the city experienced significant commercial and residential growth from 2000-2006. Despite the growth, many areas of the city have a rural residential use. From 2008-2010, the subject market (St Michael, Albertville, Otsego, etc.) experienced above average decline in value and significant drop in growth (building permits). The residential market in this area began to show signs of stabilization around mid -2011 and is showing signs of growth in 2014. The population for Otsego in 2010 was 13,571, up from 6,389 in 2000—a 112.4% increase. The 2014 estimated population is 15,047, a 10.9% increase. Single family homes generally range in value between $150,000 and $500,000+ in the City Limits with an average of about $192,000 (MLS statistics). The city is a mixture of residential, industrial, and commercial. Most homes are average to good quality. SUBJECT PROPERTIES The project area consists of mostly single family residential homes (private well and septic systems). There is an agricultural parcel and a vacant lot as well. The vacant lot is owned by MnDOT. Per city information, there are a total of 60 properties in the project area. EXISTING STREETS Physical Condition of the Existing Road: The existing road improvements are showing signs of wear and were originally constructed from 1987 to 1989 per the feasibility report. The road, per the feasibility report, is showing signs of wear indicative of its age, including loss of fine aggregate, large longitudinal and transverse cracking, and patching. The road is considered to be in poor surface condition. The report noted that if the streets are not overlayed soon the condition of the existing pavement will be too poor to overlay and a full depth reclaim would be necessary. Functional Design of the Road: The existing street improvements have a fair look in front of a majority of properties in the project The current roads meet the minimum expectations for accessibility but reflect negatively on the visual appeal of the properties. Overall, the existing street improvements are considered to be in poor surface condition, look dated and reflect likewise on the adjoining properties. Clearly, a mill and overlay is needed now or will be in the very near future. Page 2 Nagell Appraisal Incorporated 1952.544.8966 PROPOSED ROAD IMPROVEMENTS The current road, as noted, is in poor surface condition. The proposed project would be a mill and overlay. In addition to the mill and overlay, the asphalt would be increased from a thickness of 2.5 inches to 3.5 inches. The increase in road thickness is anticipated to help the new road last longer. Mill and overlay is applicable when the road is still structurally stable (surface in poor condition, base is average or good condition), otherwise, total reconstruction could be necessary. If any of the above descriptions change, the benefit due to the project could differ. HIGHEST AND BEST USE The subject project area is located in the eastern portion of the city near Highway 101. Owners in the subject area appear to update their property as needed when site and building components wear out or become dated. Therefore, it is logical to update the road to the subject properties as needed as these are essential property characteristics that are expected in this market. An informed buyer would consider the condition of the road and road bed. A well constructed and good condition road provides aesthetic appeal to a property. Given a choice, a potential informed buyer would likely prefer a newer road over a deteriorating road. If replacement of components of real estate near the end of their economic life in a home or building is postponed, it can be more costly in the long run; delays in replacing components can result in incurring higher interim maintenance costs and potential difficulty in marketing the property. Also, it is typical for the cost of the replacement of an improvement to increase over time. That said it is logical and prudent for market participants to update/replace dated components when needed. Therefore, the highest and best use of the surrounding properties in the project area is for the continued residential use with the proposed infrastructure improvements. Nagell Appraisal Incorporated 1952.544.8966 Page 3 DISCUSSION OF MARKET BENEFIT The below reflects the mill & overlay project. Listed below are the factors that will be taken into consideration concerning the potential benefit to the properties. Description 1) Road Surface Existing Improvements Poor Chan e Mill & Overlay 2) Base Condition Average Average 3) Curb None None 4) Drainage Average Average 5) Storm Sewer Surface Surface 6) City water Private Private 7) City sewer Private Private 8) Sidewalk None None 9) Street Lights Average Average 10) Functional Design of Road Dated Good 11) Traffic Management N/A N/A 12) Median N/A N/A 13) Road Proximity to Properties N/A N/A 14) Visual Impact on Properties Fair Good Based on the preceding grid, the subject properties will improve in 3 of the 11 applicable categories (N/A excluded). Market participants generally recognize that streets need replacing when nearing the end of a long economic life. A typical buyer in the subject market commonly prefers a new surface road versus dated, older road improvements. In addition to visual benefit, new street improvements provide better and safer use for pedestrians (biking, walking, stroller, rollerblading, etc.) and drivers. The new street will enhance potential for updating the current properties. Properties that indirectly/directly abut or have driveways that exit on the new street will benefit. Based on past appraisals, experience, and general market information, it is not uncommon for properties similar those in the subject market to realize an increase in price for new street improvements. Given the scope of the project (overlay) and the age/quality/condition of houses, properties in the area with newer street improvements could see a price benefit of: • Single family • Agricultural (not platted) . Vacant Lot (MnDot, platted) $2,000 to $2,500 per lot (larger lots on the higher end) $1,000 to $1,500 per lot legally allowed along the road or with a driveway along the road $2,000 to $2,500 Corner lots are based at a pro -rata percentage using street frontage. So if 75% of the frontage is being improved while 25% on the side street(s) is not, then the multiplier would be 75% of the benefit. Page 4 Nagel[ Appraisal Incorporated 1952.544.8966 CONCLUSION The benefit amount noted above should not be construed or relied on as being an appraisal, but are general observations based on the overall market. If an appraisal were made on the individual properties, the actual benefit amount could vary from market observations above. If you have additional questions, please do not hesitate to contact us. Sincerely, Ethan Waytas Certified General MN 40368613 ' "Oe' William R. Waytas, SRA, CRP Certified General MN 4000813 Enclosures: Location Map, Aerial Map View of Project, Subject Photos, Qualifications, Engagement Letter www.nagelimn.com Nagell Appraisal Incorporated 1952.544.8966 Page 5 LOCATION MAP Ste, ,Lv,,,ram_.CeWCty UY R-1, DresSa 1.f ............... E.11 W I S --C-- 0-A, LAeSta paab Rant. Aw S-""' %4 .11— Fbcl,1000� , }Be Bear Lake Pak FW-*ts S T C R 0 1 X St.PWA L..., .6!yport le ed i Wdh Hudson .............. ........ ...... F—cls ....... ............. . .. . ..... V/ R I G H T Ak, P;g qk� vkYoculb"y St--ddln. St.. Cf" to L.ie hlhaw-�W j all ,r : 3, Ste, ,Lv,,,ram_.CeWCty UY R-1, DresSa 1.f ............... E.11 W I S --C-- 0-A, LAeSta paab Rant. Aw S-""' %4 .11— Fbcl,1000� , }Be Bear Lake Pak FW-*ts S T C R 0 1 X St.PWA L..., .6!yport le ed i Wdh Hudson .............. ........ ...... F—cls ....... ............. . .. . ..... L. He 110 'w- Mr Ist L.0 P;g qk� vkYoculb"y St--ddln. St.. Cf" pad f L.ie hlhaw-�W j all ,r : 3, oBigLake 't,% We! a d Pati �Ek �ftjed N, 0 Hem Lake BI orcin 'C A R E R - I gm. ver rove St. V— -Arrck�'chamvhnp Rog— Coon P, pfd Lakes t M 1 11 r 0.., 0101 Luke Pak.. C.— Pk.. Maple Gra S— h�haeyoneal. M. e on s d "Pend—b . Me*. 1 14Go en RA y H E N N ERA Ste, ,Lv,,,ram_.CeWCty UY R-1, DresSa 1.f ............... E.11 W I S --C-- 0-A, LAeSta paab Rant. Aw S-""' %4 .11— Fbcl,1000� , }Be Bear Lake Pak FW-*ts S T C R 0 1 X St.PWA L..., .6!yport le ed i Wdh Hudson Page 6 Nagell Appraisal Incorporated 1952.544.8966 L. He 110 'w- Mr Ist L.0 P;g qk� vkYoculb"y St--ddln. St.. Cf" pad f L.ie hlhaw-�W j all ,r : 3, -Vod .............. —'».. .. .......... . 6nP We a d Pati roova 4 Fell. BI orcin 'C A R E R - I gm. ver rove -- -lei :�., -oih.k.pee rin 7"7 t �Bp Page 6 Nagell Appraisal Incorporated 1952.544.8966 AERIAL VIEW OF PROJECT MAP *Yellow line reflects mill and overlay area (approximate) Nagell Appraisal Incorporated 1952.544.8966 Page 7 SUBJECT PHOTOGRAPHS Page 8 Nagell Appraisal Incorporated 1952.544.8966 - . S 3��` l.. - •.X fit` xf J S Street scene (file photo) Street scene (file photo) • 1" - r 3 _._,.i -z - t Street scene (file photo) Street scene (file photo) Page 8 Nagell Appraisal Incorporated 1952.544.8966 Subject Photographs — continued t Street scene (file photo) Street scene (file photo) 91L Street scene (file photo) Street scene (file photo) Nagell Appraisal Incorporated 1952.544.8966 Page 9 Subject Photographs — continued 7r r-_ T _ L !V Street scene (effective date, snow covered) Street scene (file photo) Street scene (effective date, snow covered) Street scene (effective date, snow covered) Page 10 Nagell Appraisal Incorporated 1952.544.8966 QUALIFICATIONS Appraisal Experience Presently and since 2006, Ethan Waytas has been employed as an employee of Nagell Appraisal Incorporated, an independent appraisal firm (12 employees) who annually prepare 1,500 +/- appraisal reports of all types. He is currently a full time licensed certified general real estate appraiser, as well as the director of the company's IT department. Properties appraised: • Commercial - low and high-density multi -family, retail, office, industrial, restaurant, church, strip - mall, fast-food, convenience stores, auto -service and repair, cinema, numerous special use properties, and subdivision analysis. • Residential — single-family residences, hobby farms, lakeshore, condominiums, townhouses, REO and land. Eminent Domain — extensive partial and total acquisition appraisal services provided to numerous governmental agencies and private owners. • Special Assessment — numerous street improvement and utilities projects for both governmental and private owners. • Clients - served include banks, savings and loan associations, trust companies, corporations, governmental bodies, relocation companies, attorneys, REO companies, accountants and private individuals. • Area of Service - most appraisal experience is in the greater Twin Cities Metro Area (typically an hour from downtown metro). Numerous assignments throughout Minnesota. Professional Membership, Associations & Affiliations License: Certified General Real Property Appraiser, MN License #40368613 Education -- Graduate of the University of Minnesota: College of Science and Engineering, Twin Cities Campus Bachelor of Science in Computer Science, with distinction, 3.86 GPA. -- General & Professional Practice Courses & Seminars -- Basic Appraisal Procedures -- Basic Appraisal Principles -- 2012-2013 15 -Hour National Uniform Standards of Professional Appraisal Practice -- General Appraiser Sales Comparison Approach -- General Appraiser Income Approach — Part 1 -- General Appraiser Income Approach — Part 2 -- Advanced Income Capitalization -- General Appraiser Report Writing and Case Studies -- Real Estate Finance, Statistics and Valuation Modeling -- 2014-2015 7 -hour National USPAP Update Course -- General Appraiser Site Valuation & Cost Approach -- Advanced Market Analysis and Highest & Best Use -- Advanced Concepts & Case Studies -- Quantitative Analysis Nagell Appraisal Incorporated 1952.544.8966 Page 11 Curriculum Vitae -- continued Appraisal Experience Presently and since 1985, William R. Waytas has been employed as a full time real estate appraiser. Currently a partner and President of the Nagell Appraisal & Consulting, an independent appraisal firm (12 employees) who annually prepare 1,500 +/- appraisal reports of all types. Mr. Waytas was employed with Iver C. Johnson & Company, Ltd., Phoenix, AZ from 1985 to 1987. Properties appraised: • Commercial - low and high-density multi -family, retail, office, industrial, restaurant, church, strip - mall, fast-food, convenience stores, auto -service and repair, hotel, hotel water park, bed & breakfast, cinema, marina, numerous special use properties, and subdivision analysis. • Residential — single-family residences, hobby farms, lakeshore, condominiums, townhouses, REO and land. • Eminent Domain — extensive partial and total acquisition appraisal services provided to numerous governmental agencies and private owners. • Special Assessment — numerous street improvement and utilities projects for both governmental and private owners. Review— residential, commercial and land development. • Clients - served include banks, savings and loan associations, trust companies, corporations, governmental bodies, relocation companies, attorneys, REO companies, accountants and private individuals. • Area of Service - most appraisal experience is in the greater Twin Cities Metro Area (typically an hour from downtown metro). Numerous assignments throughout Minnesota. Professional Membership, Associations & Affiliations License: Certified General Real Property Appraiser, MN License #4000813. Appraisal Institute: SRA, Senior Residential Appraiser Designation, General Associate Member Employee Relocation Council: CRP Certified Relocation Professional Designation. International Right -Of -Way Association: Member HUD/FHA: On Lender Selection Roster and Review Appraiser DNR: Approved appraiser for Department of Natural Resources Testimony -- Court, deposition, commission, arbitration & administrative testimony given. Mediator -- Court appointed in Wright County. Committees -- President of Metro/Minnesota Chapter, 2002, Appraisal Institute. -- Chairman of Residential Admissions, Metro/MN Chapter, Al. -- Chairman Residential Candidate Guidance, Metro/Minnesota Chapter, AI. -- Elm Creek Watershed Commission, Medina representative 3 years. -- Medina Park Commission, 3 years. Page 12 Nagell Appraisal Incorporated 1952.544.8966 Curriculum Vitae -- continued Education -- Graduate of Bemidji State University, Minnesota. B.S. degree in Bus. Ad. -- During college, summer employment in building trades (residential and commercial). -- Graduate of Cecil Lawter Real Estate School. Past Arizona Real Estate License. -- General & Professional Practice Courses & Seminars -- Course 101 -Introduction to Appraising Real Property. -- Numerous Standards of Professional Practice Seminar. -- Fair Lending Seminar. -- Eminent Domain & Condemnation Appraising. -- Eminent Domain (An In -Depth Analysis) -- Property Tax Appeal -- Eminent Domain -- Business Practices and Ethics -- Scope of Work -- Construction Disturbances and Temporary Loss of Going Concern -- Uniform Standards for Federal Land Acquisitions (Yellow Book Seminar) -- Partial Interest Valuation Divided (conservation easements, historic preservation easements, life estates, subsurface rights, access easements, air rights, water rights, transferable development rights) Commercial/Industrial/Subdivision Courses & Seminars -- Capitalization Theory & Techniques -- Highest & Best Use Seminar -- General & Residential State Certification Review Seminar -- Subdivision Analysis Seminar. -- Narrative Report Writing Seminar (general) -- Advanced Income Capitalization Seminar -- Advanced Industrial Valuation -- Appraisal of Local Retail Properties -- Appraising Convenience Stores -- Analyzing Distressed Real Estate -- Evaluating Commercial Construction -- Fundamentals of Separating Real Property, Personal Property and Intangible Business Assets Residential Courses & Seminars -- Course 102 -Applied Residential Appraising -- Narrative Report Writing Seminar (residential) -- HUD Training session local office for FHA appraisals -- Familiar with HUD Handbook 4150.1 REV -1 & other material from local FHA office. -- Appraiser/Underwriter FHA Training -- Residential Property Construction and Inspection -- Numerous other continuing education seminars for state licensing & Al Speaking Engagements -- Bankers -- Auditors -- Assessors -- Relocation (Panel Discussion) Publications -- Real Estate Appraisal Practice (book): Acknowledgement -- Articles for Finance & Commerce and Minnesota Real Estate Journal Nagell Appraisal Incorporated 1952.544.8966 Page 13 ENGAGEMENT LETTTER NAGELL APPRAISAL & CONSULTING 12805 Highway 55 Minneapolis: 952-544-8966 Plymouth, MN 55441 St. Paul 651-209-6159 Established in 1968 Central Fax 952-544-8969 Client: City of Otsego November 9 2016 Attn: Andrew MacArthur, City Aby. 3601 Thurston Avenue North #103 Anoka, MN 55303 RE: A letter report rogarding tho special benefit if any for a street Improvement project with patch and overlay. Wokson Hills & Autumn Woods Otsego, MN Dear Andrew: Thank you for your interest in obtaining services regarding the properties above. Per our conversation, you indicated a preliminary opinion of market benefit if any to the adjoining properties in the above project_ Report Use: The report use is to assist the city for guidance regarding special assessment determination for street improvement project Value Type: This report is not an appraisal, but rather provides a preliminary letter giving a general range of market benefit if any for properties like those in the project area. Property Description: About 60 residential parcels and lots with varying site sizes. Confact for access, Not necessary. Scope of Report: (1) Drive by viewing of the subject properties and view the neighborhood. (2) Note the physical and/or economic factors that could affect the properties. (3) Comment on market benefit if any based on observations of the market. (4) Provide a general range of benefit if any for properties like those in the project area. No specific sales data will be collected for this assignment The general market comments are based on past appraisals, experience and market information. Report Format: A Letter Report will be used. It has short statements and descriptions including appropriate photos. maps and exhibits are included A PDF copy of the report plus hvo hard copies of report will be provided. I-ee- The fee is ny meetin contact, appraisal reports, any discovery- preparation and testifying would Lxmand billed a�r hour. Client named above is respons:b!e for payment in a timely manner, Due Date: The report can be completed i rom signed confirmation. Information needed by the appraiser: Feasibility report, maps and description of before and after conditions of the road project. Our company has 12 employees and has been in business since 1968 and has sufficient knowledge, experience, education, resources and contacts to competently complete this assignment Neither the employment to make this report, nor the compensation for it, is contingent upon the findings If you agree to the above terms, please sign below and return by fax or mail If you have any additional questions please do not hesitate to contact me. Sincerely, &gnatur - William R. 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IFF ---II W d Z =pJ Q ao 3 JJaz c JZW W jun O OQ 4 N O n� o U N ■ O O S t n I 0 �h 6� r � � M V on° on \ C « `N CNoic \`S+i v \ WLLI h tiJ Y Ij Iql ry I2 \ A V, b[- o } / OZ891 w2 IT � *I o I � I L-bZ89 lR � m i T 0089 Ln ' / $gyp / I 16i �_ —gig 'Oo+rZ— 77mm .—oo+fz--- Oo+zz---oo+lio �65p,1 h + I I r ol`11 ro 'D wLO n LO g@ P�lli 56�a/ � 49 I \ O m � S IO / 0 °/ / 5 -74 5645 1i �6��,� ° s 1' I � L o c� w D z w > k � w � D O ■ � § � LJ ::D 2 w > k w CY ` Z ... .... � \) \ \ P § )E \ � c4 a m, ` /j� \ ]§)0 �r §} !2 Mg �\ iN KE n 2222 k§{)§)\ e e \e n \\ \ \ \o H' K w w ry F -- C/) = «e �O M H Ko `f J I I �o c xo �� Lw z x - `o o_wIt w (10 " os`As -3� 0. �3� 2 _ > wQ h H ml I� W2. �- -_ o�~ Ln Ppm a ata; oa�.20 �I a3�" a3ai >0 N ; O�I O � eita I I H HolyN\ ae W U W e W Rz N a w w 0 d > o� 0 zF z � N m O O Y � F m j K M C Z ® � j RESOLUTION NO. 2017-14 RESOLUTION ACCEPTING OF PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR THE 2017 STREET RENEWAL PROJECT WHEREAS, a resolution of the City Council adopted the 9th day of January 2017, fixed a date for a public hearing for the 2017 Street Renewal Project, City Improvement Project No. 17-02 for the improvements of streets within Wokson Hills (59th Street, 58th Street, and Quenroe Avenue) and Autumn Woods (56th Street, 57th Street, and Quilley Avenue) by patching and overlaying the existing street surface in accordance with the feasibility report and the assessment of benefiting property for all or a portion of the cost of the improvements pursuant to Minnesota Statutes Chapter 429, and WHEREAS, ten days' mailed notice and two weeks' published notice of the hearing was given, and the hearing was held thereon on the 13th of February, 2017, at which all persons desiring to be heard were given an opportunity to be heard thereon, WHEREAS, a resolution of the City Council adopted the 9th day of January, 2017 designated Hakanson Anderson as the engineer and authorized the preparation of plans and specifications for the improvements and has presented such plans and specifications to the council for approval; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA: 1. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report. 2. Such improvement has no relationship to the comprehensive municipal plan. 3. Such plans and specifications, dated February 9th, 2017, a copy of which is attached hereto and made a part hereof, are hereby approved 4. The City Clerk shall prepare and cause to be inserted in the official paper and online at Qwest CDN, an advertisement for bids upon the making of such improvement under such approved plans and specifications. The advertisement shall be published and available online for (3) three week(s), shall specify the work to be done, shall state that bids will be opened and considered by the council at 2:00 p.m. on March 7th, 2017, in the lunch room of City Hall located at, 13400 90th Street NE, Otsego, MN 55330. No bids will be considered unless sealed and filed with the clerk and accompanied by a cash deposit, cashier's check, bid bond, or certified check payable to the clerk for 5.0 percent of the amount of each bid Adopted by the council this 13th day of February, 2017. Motioned By: Seconded By: All in Favor: Those Opposed: Jessica Stockamp, Mayor Tami Loff, Clerk