Adopt Resolution #23-157 Approving Plans and Specifications and Authorizing Bids for Improvement Project #23-20, COR Mass Grading

Purpose:
The purpose of this case is to adopt Resolution #23-157 approving plans and specifications and authorizing advertisements for bids for Improvement Project #23-20, COR Mass Grading.
 
Background:
Attached is The COR Analysis Update as prepared by Bolton and Menk, Inc..
 
On February 21, 2023, the Public Works Committee (PWC) reviewed The COR Analysis Update and identified the following immediate COR Infrastructure priorities;

• Grading, lining and installing storm sewer for the Waterfront stormwater pond,
• Filling low-lying COR properties using fill from the Waterfront pond excavation,
• Reconstructing Zeolite Street,
• Reconstructing and realigning the north end of Center Street, and
• Constructing Ramsey Parkway between the Sunwood Drive roundabout and Willemite Street.

 
During the February 28, 2023, City Council work session, Council confirmed these priorities by consensus. Minutes from this meeting are also attached.
 
Based on these identified priorities, Bolton and Menk, Inc. prepared the attached COR Infrastructure Design Services Proposal to identify the associated scope of services and estimated costs required for design services, as well as estimated construction costs.
 
Per the attached proposal, significant progress can be made in 2023 to achieve the identified priorities by completing the following work tasks;

• Grading, lining and installing storm sewer for the Waterfront stormwater pond,
• Filling low-lying COR properties using fill from the Waterfront pond excavation,
• Design and prepare plans and specifications for Zeolite Street,
• Design and prepare plans and specifications for the north end of Center Street, and
• Design and prepare plans and specifications for Ramsey Parkway between the Sunwood Drive roundabout and Willemite Street.

 
Tree clearing is required before The COR can be mass graded.  This work, designated as Improvement Project #23-17, COR Tree Clearing, is underway and will be completed by the end of July.
 
Plans for The COR Mass Grading, designated as Improvement Project #23-20, which involves grading the Waterfront pond and filling various low-lying COR parcels with the resulting fill, were prepared by Bolton and Menk per the COR Infrastructure Design Services Proposal and are ready to be advertised for bids. Authorizing advertisements for bids this evening will allow bids to be opened on August 4th, allowing Council to award a contract for construction on August 8th. Final completion of mass grading operations is proposed to be complete by November 10, 2023.
 
Estimated costs for The COR Mass Grading, which includes excavation of The Waterfront stormwater pond, stripping topsoil from properties proposed to receive fill from The Waterfront, documenting and compacting underlying soils, distributing excavated fill material from The Waterfront to specified elevations, spreading salvaged topsoil on the newly placed and compacted fill, and establishing turf, totals $ $7,509,215. The cost breakout is as follows;

• $5,741,620 for Grading
• $1,499,530 for Storm sewer
• $112,305 for Sanitary Sewer
• $155,730 for Watermain 

 
Zeolite Street will remain closed to traffic during mass grading operations.
 
Design and plan preparation for the three segments of Zeolite Street, Center Street, and Ramsey Parkway is underway and will be completed this fall.  Street profiles were designed to set ground elevations along these streets to allow for mass grading operations. The remainder of the design and plan preparation work will continue to occur this Summer and Fall. Construction of these streets may then be completed in 2024 or later.      

Following Council approval, bid advertisements will be published in the Anoka Union Herald on Friday, July 14th, and Friday, July 21st, 2023.  

Observations:
Staff verified that contractors are available to bid on and complete The COR mass grading project in 2023.  
 

The attached proposal from Bolton and Menk identifies the following not-to-exceed estimated costs. As noted on page 5 of the attached proposal, costs will be less if individual projects are combined and constructed as larger projects and not individually.

• Design services costs for all identified improvements = $548,181
• Construction costs for identified 2023 improvements (not including streets and associated storm sewer, sidewalks, trails, sanitary sewer and watermain) = $5,874,000

 
Construction-related services such as staking, administration, and observation are not included in the above design services cost estimate.  When construction of the identified improvements occurs, a separate construction services proposal will be submitted by BMI.  

Proposed COR infrastructure project funding sources include;

• TIF 14 Bonds (street, sidewalk and trail costs)
• Stormwater Funds (stormwater management costs)
• Sanitary Sewer Funds (sanitary sewer costs)
• Watermain Funds (watermain costs)

 
Finance Director Lund and the City’s financial consultant, Ehlers, recommend using tax increment bonds for the approximate $7,000,000 in COR improvements, which includes the HY-10 Ramsey Improvements (excluding municipal utilities) and the COR Infrastructure Improvements.  Attached is a 15-year tax increment bond run provided by Ehlers. According to Ehlers, the City will have the annual $640,000 needed to make the necessary debt service payments due to increment generated by various developments within The COR.  The 15-year bond term expires before 2040. 
 
Issuing a tax increment bond requires increment to be available in the amount of 20% of the bond.  The city does not currently have $7M in the TIF 14 district and the issuance of debt allows the city the flexibility to keep the current TIF 14 funds (approximately $2M for other improvements in the future).  The issuance of debt is a cleaner process as it avoids the need for the set-up of internal loans from other funding sources, tracking these loans with not only pay back when increment becomes available, but also tracking interest. 
 
City staff will inspect construction and process pay requests.  

Staff recommends adopting Resolution #23-157 approving plans and specifications and authorizing advertisements for bids for Improvement Project #23-20, COR Mass Grading.   

Adopt Resolution #23-157 approving plans and specifications and authorizing advertisements for bids for Improvement Project #23-20, COR Mass Grading.