City Council Agenda Packet 06-16-2003 Special
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Mayor:
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AGEN$A
SPECIAL CLOSED MEETING - M NTICELLO CITY COUNCIL
Monday, .June 16,2 )03 - 6:00 p.m.
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Bruce Thielen
Council Members:
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Roger Carlson, Glen Posusta Robbie Smith and Brian Stumpf
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Consideration of bids for Core Street Rceonftruetion Project No. 2002-l4C.
Consideration of Resolution Declaring intedt to Reimburse Project Costs through Bond Sale
Proceeds. !
Call the special meeting to order.
Adjourn
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1.
Consideration of Pro' ect A ward for Cor Cit
Monticello Project No. 2002-14C (City SB)
A. REFERENCE AND BACKGRO
At the April 14, 2003 City Council eeting, the City Council authorized the
preparation of plans and specificati ns for the Downtown Core City Street
Improvement Project located south f CSAH 75, west of Trunk Highway 25,
north of 7th Street, and east of Elm ~treet. This project area was further separated
into projects located north and sout of the railroad tracks. In addition, the
watermain improvements along Ra sey Street related to the new well
development were included to be bi as a part of this project. The bid documents
were prepared to accommodate a bi award in the following three manners:
1. North of the railroad trac s plus Ramsey Street
2. South of the railroad trac s plus Ramsey Street
3. North and south of the r lroad tracks plus Ramsey Street
Bids were received on Friday, June 3, 2003 at the Monticello Community
Center. Two bids were received for the project, with a low bid of $2,534,905.65
submitted by Buffalo Bituminous of Buffalo, Minnesota. The second bid was
from Northdale Construction, in the ount of $2,993,957.26. The Engineer's
Estimate was $3,011,176.25.
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The Feasibility Report for this proje1t had assumed a $2.4 million construction
cost, but did not include the followi g items that were added after completion of
the Feasibility Report.
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· The sanitary sewer on 3rd Str et between Maple Street and Locust Street
has been identified for replac ment.
· New sanitary sewer extensio s have been added on Walnut Street from
Broadway Street south to mi -block, and one block of Vine Street south of
4th Street.
Sanitary sewer will also be c nstructed along Elm Street to provide
service to existing and propo ed development in that area.
Approximately 300 feet of w termain has been added on Locust Street to
extend the watermain stub fr m Broadway Street to 3rd Street to complete
a loop in that area.
A watermain loop has been a ded on 5th Street between Elm Street and
Vine Street to complete a 100 in that area.
Storm sewer has been added n Locust Street and 3rd Street to provide
service for the redevelopment of the Landmark Square site.
The Ramsey Street project w s not included in the Feasibility Report.
Changes in the street construction program include the construction of a
smaller diameter cul-de-sac with concrete curb and gutter along Vine
Street between 4th Street and t e railroad tracks. This section of Vine
Street is proposed to be cons cted as a 30-foot wide residential street to
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F:\WPWIMJ494.()(N)(jI60J.Ag.nd4 lltm.doc
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provide access to proposed ~edevelopment in that area. The 30-foot width
is the City's minimum stan4ard for streets with a cul-de-sac.
· Minnesota Street is currentI a 36-foot wide street south of 4th Street that
dead-ends just north of the ailroad tracks. A smaller diameter cul-de-sac
was added at the south end f Minnesota Street just north of the tracks to
provide a turn around area f, r snow plows and other equipment used to
maintain that roadway. Thifmay be eliminated if the large church parking
lot is not developed.
The estimated construction cost of t e project with these additions was increased
to $3,011,176.25. I
The project staging will be develop d by the Contractor for approval by City staff.
Extreme care will be taken such tha the Contractor will complete the work in a
fashion to minimize disruption to ar a businesses and property owners. Further,
3rd Street is not allowed to be opene for construction prior to July 14,2003, after
the Riverfest parade is complete. T e project is scheduled for substantial
completion by October 1 st if one-hal of the project is completed, or November 1 st
if the entire project is completed. Fi al wear course installation and striping will
be completed in the spring of 2004 t allow for one complete freeze-thaw cycle
on the new construction. I
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The project would be financed as fOllows:
Bid Project Cost* I
Indirect Costs (28%) I
Total Project Costs i
Less State Aid I
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Subtotal i
Less Utility Fund Contribution (~amsey Street)
Subtotal I
Less Assessments** I
Subtotal
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Core Street Fund Contribution i
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Represents low bid with dediction for total project award.
** Assessment revenue based 0 feasibility. It does not include lineal foot
assessment for new curb on 1m Street or Vine Street cul-de-sac. The
assessment total also includ~ $49,600.00 for storm sewer assessment
costs for the Landmark Squ e site. The added sanitary sewer costs will
likely be assessed to the ben fiting property owners.
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Utility Fund Contribution
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Attached are financing plans for both f the other options.
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$
$
$
$
$
$
$
$
$
$
$
2,534,905.65
709,773.58
3,244,679.23
579,334.00
2,665,345.23
148.866.82
2,516,478.41
1,467.390.00
1,049,088.41
500,000.00
628,968.41
F:\WPWIM1494.()(N)6160J-AgtnJ4lttm.dQc
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B.
AL TERNA TIVE ACTIONS:
1.
Consider the award of the e~tire project as bid to Buffalo Bituminous in
the amount of $2,534,905.6 . (This represents a deduction of $18,000.00
for the award of the total pro'ect.)
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2.
Consider the award of the n
and the storm sewer improv
Buffalo Bituminous in the
half, Schedules A-D, plus Ramsey Street,
ents adjacent to Minnesota Street, to
ount of $1,677,031.15.
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3. A ward the south half of the ore City Street Improvement Project, plus
Ramsey Street, to Buffalo Bi uminous in the amount of $992,176.90.
4. Do not award the project at +s time.
STAFF RECOMMENDATION: 1
It is the recommendation of the City dministrator, Public Works Director, and
City Engineer that the project be aw ded, in its entirety, as identified in
Alternative Action 1. The project cat be completed in 2003 as is proposed.
Further, the bid was $500,000 less th n the second bidder, resulting in a very
competitive bid for this project. ,
D. SUPPORTING DATA:
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Bid Tabulation
F:IWPWlMl4U0fNJ6I{j()3.A,.nda fre...Joc
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Assessment amount includes $49,60? for storm sewer assessments to
Landmark Square redevelopment. I
.. Utility Improvement Costs are $746.zto including indirecl expenses.
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Financing Pla~ Area 1-A
Proposed Construction Cost
Plus Indirect Costs (28%)
Total Propo~ed Cost
Core Street Fund Contribution I
Subtotal
Less Assessments *
Utility Fund Contribution **
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$1,560,728.75
437,004.05
$1,997,732.80
- 500,000.00
$1,497,732.80
865,280.00
$632,452.80
F: \ WPWIMJ 494-00lFinancing Plan Area.doc
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Financing Plap Area 1..8
Proposed Construction Cost
Plus Indirect Costs (28%)
Total Prop~sed Cost
Less State Aid
$875,874.20
245,244.78
$1 ,121 ,118.98
- 579,334.00
$541,784.98
- 591,996.24
($50,211.26)
Subtotal
Less Assessments * I
Excess Funds Available after Ass~ssment
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· Includes essessment from Feesibilit I Study in eddition to $58,500 for senitery
sewer construction on Elm Street. 1
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F:\WPWfNl1494-00IFinancing Plan Area.doc
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Council Agenda - 6/16/03
2.
Consideration of acce tin bids and awar in contract for Core Street Reconstruction
Project No. 2002-14C. (WSB)
A.
I
i
I
I
Bids on the above referenced project were rCf. ived at 10 a.m. on Friday, June 13,2003.
Two bids were received with the apparent 10 bidder being Buffalo Bituminous, Inc.
in, the .am?unt of. $2,552,905.65 f. 'or all sch.ed les. Several ite~ls were included in this.rroje~t, one
of which is the sH..icwalk along the north Side f Broadway which was transferred to this proJect
because it was unknown what the time frame is if the City decidcs to put the lights on Broadway
undcrground. The engineer's estimatc for th project, both areas 1 A and IB was $3,002,205.
REFERENCE AND BACKGROUND:
In previous Council discussions on this proje t, there was some question on what the scope of the
project should be. The bids werc set up in Sl ch a fashion as to allow the City some flexibility in
determining how much of the Phase I area w uld be done. The City Engineer will have a
recommendation based on thc bid results. I
I
B.
ALTERNATIVE ACTIONS:
I.
i
i
I
Th.C Council co:L!d award the bid to Bjiffalo Bituminous, Inc. in the amount of
$2.552,905.65 for all schedules.
The Council conld award the bids bastd on a combination of the schednles bid.
The Council could not award the bids'at this time.
2.
3.
C. STAFF RECOMMENDATION: !
I
An explanation of the various schcdules bid ~nd the recommcndation ofthc City Engineer will be
provided at the meeting.
D. SlJPPORTING DATA: i
Bid tabulation (To be provided at the meetin~)
I
I
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3
Council Agenda - 06/16/03
Consideration of Resolution Declarin J in ent to Reimhurse Pro' ect Costs throuuh
Bond Sale Proceeds. (R.W.)
IRS regulations now require that before a ci y can issue bonds to reimhurse itself for expenses it
has already paid through a bond sale, a resolution needs to he passed indicating which projects
the city will likely sell bonds fix in the futur~. This resolution is simply a technical requirement
required hy the bond counsel. The resolutio 1 being proposed covers various improvement
projects that are currently underway or will e started in the near future. This resolution will
allow the City to finance any of these impro ements in the future by selling bonds. Adoption of
the resolution is not authorizing a hond sale lat this time.
!
I
!
I
Adopt a resolution declaring intent tJ reimhurse expenditures to the proceeds of
hond covering the various projects o'ltIined.
A.
RKFERENCE AND BACKGROlJND
B.
ALTERNATIVE ACTION
1.
2.
Do not authorize the resolution.
c. STAFF RECOMMENDATION
It is the recOlnmendation of the City Admini~trator that the resolution he adopted as
proposed, thus enabling the City to sell bonds to finance the various inlprovement
projects listed, if desired, in the future.
D. SlJPPORTING DATA
Copy of resolution.
.
.
.
RESOLUTION 2003-37
I
RESOLUTION DECLARING T E OFFICIAL INTENT OF TI-IE
CITY OF MONTICE LO TO REIMBURSE
CERTAIN EXPENDITURES FROM THE PROCEItDS OF
BONDS TO BI~ ISSUED BY THE CITY
I
WHEREAS, the Internal R~venue Service has isf,ued Treas. Reg_ I. I 50-2 providing that proceeds of
tax-exempt bonds used to reimburse prior expcn iitures will not be deemed spent unless certain
requirements are met; and
WHERJ':AS, the City expects to incur certain ex )enditures which may be fInance temporarily from
sources other than bonds, and reimbursed from t 1e proceeds of a bond;
NOW, THEREFORE. BE IT RESOLVED BY , FIE CITY COtJNCIL OF THE CITY OF
MONTICELLO ('lllE "CITY") AS FOLLOWS
1.
The City reasonably intends to make expnditures for the projects described in Exhibit A
(the "Projects"), and reasonably intends 0 reimburse itself 1'01' such expenditures from the
proceeds of debt to be issued by the Cit in the maximum principal amount described in
Exhibit A.
7
The City Administrator is authOl--ized to ~. esignate appropriate additions to Exhibit A in
eircu,mstaJ:ces where t~me is of.the. essen 'e, and any such desi~nation sh_al~ be reported to
the C ouncd at the earlIest practJcahle da e and shall be filed wIth the offICIal books and
records of the City as providcd in Secti011 3.
..,
_J.
This resolution is intended to constitute declaration of official intent for purposes of
Treas. Reg. 1. I 50-2 and any successor aw, regulation, or ruling.
Adopted by the City Council this] 6th day of.lu 1e, 2003.
Bruce Thielen, Mayor
ATTEST:
I~ick Wolfsteller, City Administrator
,
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.
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Resolution No. 2003-37
Page 2
EXHI nTA
TO OFFICIAL INT ~~NT RV,SOLliTION
ADOPTED .J JNV, 16,2003
MAXIMUM PRINCIPAL
DATE OF AMOUNT OF DEBT
DV,CLARA TION DES,CRIPTION OF PRe )JECT FOR PROJECT
6-16-03 Core Street ~~ltJ-ect Recoil stmetion $3,002,205
P.-ojcet No. 2002-14
,
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