Resolutions authorizing the City Manager to enter into an amended Subdivision Agreement, including cost participation for the construction of City infrastructure and to enter into an agreement with ISG to provide construction engineering services for the Hoffman Road Extension for Mesenbrink Subdivision; Improvement Project 11134.

Adoption of attached resolutions.

On December 9, 2024, the City Council approved a Resolution of Final Plat for the Subdivision known as Mesenbrink Subdivision. An attachment to the council and a condition of the approval was the requirement for execution of a subdivision agreement known as Mesenbrink Subdivision between Mesenbrink Construction and Engineering, Inc. and the City of Mankato. The purpose of the subdivision agreement is to provide for the construction of improvements required to provide public improvements to the Subdivision, and to address costs associated with utility and road extensions. A subdivision agreement has been executed, but an amendment is required to define the public improvements within Hoffman Road and, more specifically, the city costs associated with the proposed trunk utility oversizing.
 
During preliminary and final design of the proposed Hoffman Road Extension project, studies were completed to analyze the utility needs of not only the proposed development, but the potential service area beyond the extent of the Mesenbrink Subdivision. Based on these studies, the recommendation was made for the proposed utilities constructed within the new extension of Hoffman Road to be oversized in order to provide additional flow capacity for future development beyond just the immediate Mesenbrink Development. Typical practice is for the cost associated with this oversizing to be the responsibility of the city with the understanding that the oversizing cost is most
economical when completed as part of the initial installation. Furthermore, the city’s intent will be to recoup the costs of this oversizing as part of payment for water and sanitary sewer connection fees required by future subdivisions. 

In order to facilitate the construction of Hoffman Road for Mesenbrink Subdivision, staff recommend authorizing the City Manager to amend the subdivision agreement and to enter cost participation for construction of oversized City infrastructure not to exceed $500,000.
 
At the time of this report, the contractor had secured all necessary permits required to proceed with construction except for the City of Mankato Land Disturbance permit. The contractor is actively working with city staff with the goal of starting work relating to erosion control and rough grading immediately. Construction of the new underground utilities is anticipated to begin shortly thereafter. The work relating to Hoffman Road is expected to be substantially complete by the end of 2026. Final completion is expected in early 2027.
 
In order to facilitate the construction of this project, staff recommends authorizing the City Manager to enter into a professional services agreement with ISG for construction services and subconsultant Braun Intertec for material testing services for the Hoffman Road Extension for Mesenbrink Subdivision project in the amount of $215,500. As outlined in the Subdivision Agreement, the payment for this work is the responsibility of the developer and billed to the Subdivider in the amount of the actual costs incurred.