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CR 91-23 Opportunity Court Extension . January 29, 1991 Council Report: 91-23 AWARD OF BID OPPORTUNITY COURT EXTENSION Proposed Action. staff recommends the following motion: Move that Council adopt Resolution 91-12. Resolution Concurrinq with Award of Bid - Opportunity Court Extension. Overview. Council authorized the city to enter into an agreement with the city of Minnetonka concerning the extension of Opportunity Court to Smetana Drive. The agreement authorized Minnetonka to let the contract for such a project and a bid opening was held October 10, 1990. Unable to obtain a temporary construction easement from an abutting property owner, the Minnetonka council was compelled to reject all bids, modify project plans, and authorize re-advertisement for bids. The Hopkins city council took concurring action when it adopted Resolution 90-152. A second bid opening was held January 23, 1991, and the low bidder was Imperial Developers, Inc. At its January 28, 1991 meeting the Minnetonka Council approved the award of bid to Imperial in the amount . of $664,838.70. Primary Issues to consider. 0 why is concurring action from the Hopkins Council necessary? In order to comply with the agreement signed with the city of Minnetonka and to adhere to State Aid rules concerning this project, the Hopkins Council needs to concur with action taken by the city of Minnetonka. supporting Information. 0 Engineer's recommendation letter to Minnetonka 0 Bid tabulation 0 Minnetonka Council report and resolution 0 Hopkins Resolution 91-12 r9aw~() L,~- ,J James Gessele Engineering Supervisor . . ~~Q ~'\ ~G ?J~\ ~ ~ "'\ ~'1 j~ January 23, 1991 Mr. David J. Sonnenberg, P.E. Director of Engineering City of Minnetonka 14600 Minnetonka Boulevard Minnetonka, MN 55345-1597 RE: Opportunity Court Extension S.A.P. No. 142-128-06 <l~mD S.A.P. No. 132-348-03 City Improvement Project No. 4795 ReM Project No. 10054.02 rieke Dear Dave: 41rroll uller After review of all the bid proposals submitted to the City of Minnetonka for , :ssociates, inc. en~neers the above captioned project, Imperial Developers, Inc., of Bloomington, arc itects Minnesota has submitted the lowest responsible bid. The Contractor has land surveyors submitted a list of equipment and manpower to be used for this project which equal opportunity appears to be adequa te to construct this project according to the plans and employer specifications. Therefore, we recommend that Imperial Developers, Inc. be awarded the project. llltfJJkV Peter J. Carlson, P.E. RIEKE CARROLL MULLER ASSOCIATES, INC. 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MEETING OF JANUARY 28, 1991 RE: ITEMS PERTAINING TO THE OPPORTUNITY COURT EXTENSION PROJECT NO. 4795: A. RESOLUTION ESTABLISHING JUST COMPENSATION FOR A PORTION OF PAUL STEINER'S PROPERTY B. AUTHORIZATION OF PURCHASE AGREEMENT FOR A PORTION OF PAUL STEINER'S PROPERTY C. RESOLUTION AWARDING BID FOR THE STREET RECONSTRUCTION " HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL: On June 18, 1990, by Resolution No. 90-9051, the Council ordered the ci ty Engineer and ci ty Attorney to acquire the necessary property for improvements to extend Opportuni ty Court to the north and connect to an easterly extension of Smetana Drive. In order to construct the street it is necessary to obtain right-of-way from three parcels. One of these properties is owned by Paul Steiner. . The City retained BCL Appraisals to prepare an independent fee appraisal to determine the value of the property taken. The appraisal determined that the value as of November 11, 1990 is $112,000. A supplemental appraisal indicates that the property is receiving a benefit from the new road in the amount of $17,000. The net value is $95,000. The city Assessor has reviewed the appraisal and has found it to be acceptable. The acquisition of this right-of-way is an eligible item for reimbursement as part of this Municipal State Aid project. The City is acquiring 47,487 square feet of land from Mr. and Mrs. Paul N. steiner for the Opportunity Court extension roadway. Additionally, the City is acquiring 14,390 square feet until November 1, 1992 to facilitate the construction of the roadway. The land is valued at $0.83 per square foot. Approximately 25 percent of the land the City is purchasing lies below the 100-year flood elevation which is considered to have no value. The value of the property being purchased, therefore is determined as follows: 7,487 s.f. x 75% x $0.83/s.f. - $29,560.66 rounded down to $29,500 Severance damages in the amount of $82,500 accrue to the . remainder of the property because the property will be more difficult to develop due to the reduction in the amount of high ground available, the increased costs of soil corrections, and for the temporary easement. The state of Minnesota requires the Ci ty to follow these procedures to be eligible for state Aid funding for the project. () Q \~ J\\~ ~ 0 . I " )\ ec,. COUNCIL LETTER NO. 91 - 20 . MEETING OF JANUARY 28, 1991 PAGE 2 . Mr. steiner submitted an independent fee appraisal to the city which indicated the value of the property to be purchased is $116,000. Mr. steiner indicated in the early stages of the project that he would dedicate 25 feet of right-of-way along the southerly portion of his property. However, the scope of the project has changed in that the city is requiring that the total 66 feet of right-of-way be acquired. city staff and Mr. steiner originally agreed upon a purchase price of $112,000. Staff subsequently raised the issue of special benefit, however, and suggested as a compromise that the amount of this benefit be established at $14,000 rather than the $17,000 in the city's appraisal. The lesser amount is the value of the 25 feet of right-of-way which Mr. steiner originally offered to donate. The purchase agreement was modified to a price of $98,000, which is $3,000 more than the city's appraisal value. Staff believes this is a reasonable compromise given the nebulous nature of establishing the amount of special benefit. Mr. Steiner has agreed to the reduced purchase offer, but has . requested in exchange that utilities be extended to his property line' and that he not be charged for these improvements until building construction occurs on the property. The cost for the sewer and water is estimated to be between $50,000 and $60,000. with the soil conditions on the property, there is some question as to when and if the building construction will occur. Mr. Steiner has agreed to pay the hookup fee within five years whether or not the property is built upon. These terms are contained in the purchase agreement and will be recorded as covenants against his property. On October 10, 1990 bids were opened for the opportunity Court Extension Project No. 4795. On December 10, 1990 the City council rejected the bids because the City was unable to obtain one of the temporary construction easements necessary from the Westbrooke Condominiums on the north side of Smetana Road. Without the right-of-way or a release in place, we were unable to award a State Aid contract. The low bid at that time was submitted by Brown and Cris in the amount of $770,892.40. The project plans were then modified .to eliminate the Westbrooke Condominiums easement and bids were opened on January 23, 1991- Eight bids were received ranging from $664,838.70 to $1,196,078.34. The engineer's estimate for the project was $758,753.25. . The low bidder, Imperial Developers, Inc. , was the grading contractor for the city's central fire station. They have also done several private grading projects within the city. \~fj\ J~\'\ ~ \'?t- \D COUNCIL LETTER NO. 91 - 20 . MEETING OF JANUARY 28, 1991 PAGE 3 In order to ensure that there is no loss of the City's state Aid funds, it is necessary to award the bid prior to February 1, 1991. Based on the foregoing information, it is recommended that the City Council at its meeting of January 28, 1991 adopt the following motions pertaining to the Opportunity Court Extension Project No. 4795: A. That the resolution establishing just compensation in the amount of $95,000 for the acquisition of a portion of land at 5400 Smetana Orive from Mr. and Mrs. Paul N. steiner is hereby approved. B. That the City Manager is hereby authorized to sign a purchase agreement in the amount of $98,000 for a portion of land at 5400 Smetana Drive. C. That the resolution awarding the bid to Imperial Developers, Inc. in the amount of $664,838.70 is hereby approved. . Respectfully submitted, JIY)~ , ames F. Miller City Manager BY: Michael L. Johnson Assistant City Engineer THROUGH: David J. Sonnenberg, P.E. Director of Engineering {ph . ~& ~~~ ~ ~~t- \0 r' t;\, . RESOLUTION NO. 91 - RESOLUTION AWARDING BID FOR THE OPPORTUNITY COURT EXTENSION PROJECT NO. 4795, STATE AID PROJECT NO. 142-128-06 BE IT RESOLVED by the city council of the City of Minnetonka, Minnesota, as follows: Section 1. Background. 1.01. Pursuant to an advertisement for bids for the opportunity Court Extension Project No. 4795, State Aid project No. 142-128-06, bids were received and opened according to the law and the following bids were received complying with the advertisement. Imperial Developers, Inc. $ 664,838.70 S. M. Hentges & Sons, Inc. 675,312.40 widmer, Inc. 726,247.19 Brown & Cris, Inc. 770,892.40 c. S. McCrossan, Inc.. 836,435.11 . WM. Mueller & Sons, Inc. 839,567.10 Carl Bolander & Sons Co. 945,706.60 G. L. Contracting, Inc.. 1,196,078.34 1.02. It appears that Imperial Developers, Inc. of Bloomington, Minnesota is the lowest responsible bidder. Section 2. council Action. 2.01. The Mayor and city Manager are hereby authorized and directed to enter into the attached contract with Imperial Developers, Inc. of Bloomington, Minnesota in the name of the City of Minnetonka for the construction of the Opportunity Court Extension Project No. 4795 according to the plans and specifications approved by the City council and on file in the office of the city Clerk. 2.02 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. / -' RESOLUTION NO. 91 - :. Page two Adopted by the city Council of the City of Minnetonka, Minnesota, on this 28th day of January, 1991. TIMOTHY M. BERGSTEDT, MAYOR ATTEST: I , Elizabeth L. Norton, city Clerk Action on this resolution . Motion for adoption: Seconded by: Voted in favor of: Voted against: Abstained: Absent: Resolution adopted. I hereby certify that the foregoing is a true and correct copy of a resolution adopted by the City council of the City of Minnetonka, Minnesota, at a duly authorized meeting held on the 28th day of January, 1991. Elizabeth L. Norton, City Clerk . . . CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO: 91-12 RESOLUTION CONCURRING WITH CITY OF MINNETONKA - AWARD OF BID PERTAINING TO OPPORTUNITY COURT EXTENSION WHEREAS, the Council in an agreement dated September 4, 1990, authorized the City of Minnetonka to let a contract for construction of Opportunity Court Extension, and WHEREAS, a bid opening was held concerning such a project on January 23, 1991, and WHEREAS, the city Council of the city of Minnetonka has adopted a resolution awarding the bid to Imperial Developers, Inc. in the amount of $664,838.70, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HOPKINS, MINNESOTA: The city of Hopkins hereby concurs with the action . taken by the City Council of Minnetonka concerning the award of bid to Imperial Developers, Inc. for the construction of Opportunity Court Extension. Adopted this 5th day of February, 1991. Nelson W. Berg, Mayor ATTEST: James A. Genellie, city Clerk .