7.2.
CC Regular Session
- Meeting Date:
- 10/13/2015
- By:
- Bruce Westby, Engineering/Public Works
Information
Title:
Adopt Resolution #15-10-256 Approving Change Order #1 and Amended Assessment Agreement for Ridgepoint Development Improvements, Improvement Project #15-21
Purpose/Background:
Purpose:
The purpose of this case is to approve Change Order #1 and an amended Assessment Agreement for the Ridgepoint Development Improvements, Improvement Project #15-21.
Background:
Village Bank owns the real property upon which the Ridgepoint seven (7) unit single-family residential development is proposed to be constructed per the Assessment Agreement between Village Bank and the City of Ramsey as approved by the City Council on August 11th. Per the attached executed Assessment Agreement, the City of Ramsey was to construct the required stage 1 and stage 2 improvements for the Ridgepoint development and assess all costs back to Village Bank over a period of three (3) years by prorating the improvement costs across each of the seven residential properties based on property size. The Assessment Agreement incorporated a 10% contingency cost to help ensure the assessments would cover actual construction costs.
Village Bank utilized the engineering consulting firm of Hakanson Anderson to complete the final design and prepare plans and specifications for bidding the proposed improvements. Upon bidding the plans, the lowest bid received was from Douglas-Kerr Underground in the amount of $544,925.55. On August 11th the City Council accepted bids and awarded a construction contract to Douglas-Kerr Underground.
Construction began on August 28th starting with clearing and grubbing of trees and the removal of existing infrastructure including a portion of the Mississippi River Trail and the east end of Rivlyn Avenue, including the cul-de-sac and several driveway aprons. On September 3rd the contractor starting grading the site and discovered a large volume of undocumented fill containing various construction debris materials. Based on the holes dug on site, the area of the undocumented fill was estimated to be approximately 35,411 square feet at an average depth of 14 feet, which equates to a volume of 495,754 cubic feet, or 18,361 cubic yards (soils plus debris). At that time, work was stopped to allow the contractor to estimate costs for a couple of options.
Option 1 included costs for the contractor to “walk away” from the project which includes all costs for work previously completed, for restoring all infrastructure that was removed, for removing all loose material from the surface of the site, for rough grading the site to allow it to be maintained, and for restoring turf. The contractor recently estimated their “walk away” costs to be about $196,000. After adding costs required for construction administration, inspection, staking and testing, the total estimated cost becomes about $220,000. It is important to note that these costs are only valid if the work is authorized this week. If not, the concrete costs will increase due to cold weather charges required to insulate the concrete upon construction to protect it from freezing.
Option 2 included costs required to clean up the debris including loading, hauling, and disposing of the soils mixed with construction debris in a landfill, including all known costs for testing, permitting, and backfilling excavated areas with imported fill meeting project specifications. The contractor estimated the debris removal costs to be around $823,300. This cost does not include any costs for work previously completed or for restoring the site and would therefore be in addition to all costs required to complete the original project.
A third option was briefly explored which included costs for screening the debris from the encapsulating soils so the contractor would only have to pay to haul and dispose of the screened debris while leaving the existing soils on site for use where appropriate, but this cost was found to be prohibitive.
Based on these costs, Village Bank has determined it is not feasible to totally remove the debris from the site and move forward with the original project at this time, and would like to explore options for financial assistance for the required site cleanup work to allow the development to move forward as proposed in the future.
It is imperative that the infrastructure that was removed be replaced within the next few weeks to allow full use of the Mississippi River Trail and Rivlyn Avenue to continue into the future. Staff is proposing to reconstruct these facilities per the Ridgepoint development plans to ensure the costs spent to reconstruct these facilities will not be thrown away in the event the project moves forward in the future as originally proposed.
The purpose of this case is to approve Change Order #1 and an amended Assessment Agreement for the Ridgepoint Development Improvements, Improvement Project #15-21.
Background:
Village Bank owns the real property upon which the Ridgepoint seven (7) unit single-family residential development is proposed to be constructed per the Assessment Agreement between Village Bank and the City of Ramsey as approved by the City Council on August 11th. Per the attached executed Assessment Agreement, the City of Ramsey was to construct the required stage 1 and stage 2 improvements for the Ridgepoint development and assess all costs back to Village Bank over a period of three (3) years by prorating the improvement costs across each of the seven residential properties based on property size. The Assessment Agreement incorporated a 10% contingency cost to help ensure the assessments would cover actual construction costs.
Village Bank utilized the engineering consulting firm of Hakanson Anderson to complete the final design and prepare plans and specifications for bidding the proposed improvements. Upon bidding the plans, the lowest bid received was from Douglas-Kerr Underground in the amount of $544,925.55. On August 11th the City Council accepted bids and awarded a construction contract to Douglas-Kerr Underground.
Construction began on August 28th starting with clearing and grubbing of trees and the removal of existing infrastructure including a portion of the Mississippi River Trail and the east end of Rivlyn Avenue, including the cul-de-sac and several driveway aprons. On September 3rd the contractor starting grading the site and discovered a large volume of undocumented fill containing various construction debris materials. Based on the holes dug on site, the area of the undocumented fill was estimated to be approximately 35,411 square feet at an average depth of 14 feet, which equates to a volume of 495,754 cubic feet, or 18,361 cubic yards (soils plus debris). At that time, work was stopped to allow the contractor to estimate costs for a couple of options.
Option 1 included costs for the contractor to “walk away” from the project which includes all costs for work previously completed, for restoring all infrastructure that was removed, for removing all loose material from the surface of the site, for rough grading the site to allow it to be maintained, and for restoring turf. The contractor recently estimated their “walk away” costs to be about $196,000. After adding costs required for construction administration, inspection, staking and testing, the total estimated cost becomes about $220,000. It is important to note that these costs are only valid if the work is authorized this week. If not, the concrete costs will increase due to cold weather charges required to insulate the concrete upon construction to protect it from freezing.
Option 2 included costs required to clean up the debris including loading, hauling, and disposing of the soils mixed with construction debris in a landfill, including all known costs for testing, permitting, and backfilling excavated areas with imported fill meeting project specifications. The contractor estimated the debris removal costs to be around $823,300. This cost does not include any costs for work previously completed or for restoring the site and would therefore be in addition to all costs required to complete the original project.
A third option was briefly explored which included costs for screening the debris from the encapsulating soils so the contractor would only have to pay to haul and dispose of the screened debris while leaving the existing soils on site for use where appropriate, but this cost was found to be prohibitive.
Based on these costs, Village Bank has determined it is not feasible to totally remove the debris from the site and move forward with the original project at this time, and would like to explore options for financial assistance for the required site cleanup work to allow the development to move forward as proposed in the future.
It is imperative that the infrastructure that was removed be replaced within the next few weeks to allow full use of the Mississippi River Trail and Rivlyn Avenue to continue into the future. Staff is proposing to reconstruct these facilities per the Ridgepoint development plans to ensure the costs spent to reconstruct these facilities will not be thrown away in the event the project moves forward in the future as originally proposed.
Notification:
No notifications are required for this case.
Observations/Alternatives:
Observations:
The amended Assessment Agreement will be presented to the City Council at the Council meeting. Staff is proposing that the developer pay cash for all project costs and restoration. These costs could be assessed to the two parcels as it is currently platted, but the City would need to require cash securities in 125% of this amount because (as it sits) the land has a negative value and would not be suitable collateral for the payment of assessments.
The contractor believes they can complete construction of the “walk away” improvements by the end of October.
Alternatives:
Alternative #1 – Motion to adopt Resolution #15-10-256 approving Change Order #1 and amended Assessment Agreement for Ridgepoint Development Improvements, Improvement Project #15-21, contingent on approval by the City Attorney.
Alternative #2 – Motion to deny adoption of Resolution #15-10-256 at this time.
The amended Assessment Agreement will be presented to the City Council at the Council meeting. Staff is proposing that the developer pay cash for all project costs and restoration. These costs could be assessed to the two parcels as it is currently platted, but the City would need to require cash securities in 125% of this amount because (as it sits) the land has a negative value and would not be suitable collateral for the payment of assessments.
The contractor believes they can complete construction of the “walk away” improvements by the end of October.
Alternatives:
Alternative #1 – Motion to adopt Resolution #15-10-256 approving Change Order #1 and amended Assessment Agreement for Ridgepoint Development Improvements, Improvement Project #15-21, contingent on approval by the City Attorney.
Alternative #2 – Motion to deny adoption of Resolution #15-10-256 at this time.
Funding Source:
City Improvement Project 15-21 is proposed to be funded in cash from the developer, but in the event an amended Assessment Agreement is used the Public Improvement Revolving fund would be used to pay for the improvements, which would then be paid back in full over a period of three years using the special assessments levied against the property owner via the amended Assessment Agreement.
Recommendation:
Staff recommends approving Alternative #1, contingent on City Attorney approval of the amended Assessment Agreement.
Action:
Motion to approve or deny adoption of Resolution #15-10-256.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Kurt Ulrich | Kurt Ulrich | 10/08/2015 05:03 PM |
| Bruce Westby (Originator) | Bruce Westby | 10/12/2015 04:27 PM |
- Form Started By:
- Bruce Westby
- Started On:
- 10/06/2015 06:27 PM
- Final Approval Date:
- 10/12/2015