Adopt Resolution #17-05-119 Approving Plans and Specifications and Authorizing Advertisements for Bids for Improvement Project #17-09, Bunker Lake Boulevard Utilities Extension

Purpose:
The purpose of this case is to adopt Resolution #17-05-119 approving plans and specifications and authorizing advertisements for bids for Improvement Project #17-09, Bunker Lake Boulevard Utilities Extension.

Background:
Two development proposals currently exist for the Future Business Park area.
 
The first development is proposed by Capstone Homes who proposes to construct a residential development consisting of about 300 single family homes.  This development, known as Riverstone, is proposed to be located within the area bordered by the Northfork golf course, Alpine Drive, Puma Street, and Highway 10.  This development is in the City’s MUSA area and as such is proposed to be served by City sewer and water.  Capstone appears to be firmly committed to this project, especially considering the non-refundable payments they have made to the current property owner.
 
The second development is proposed by PSD, LLC (PSD) who is considering constructing a new business park on 45 acres of land between Bunker Lake Boulevard and Highway 10, east of Puma Street.  This concept stage proposal was presented to the City Council at the March 28th Work Session.  PSD indicated they have a letter of intent to purchase the land from Hageman Holdings.  The PSD proposal includes making all building sites "pad ready" in anticipation of future construction.  This work would include mass site grading, storm water pond grading, and installation of utility stubs. While this development proposal is at concept stage only at this time, PSD appears to be firmly committed to this proposal.
 
When Bunker Lake Boulevard was improved west of Armstrong Boulevard in 2006, approximately the first 2,650 feet of Bunker Lake Boulevard west of Armstrong Boulevard was constructed with public trunk utilities (sanitary sewer and watermain) under a full pavement section.  The remaining 1,400 feet or so of Bunker Lake Boulevard to Puma Street, as well as all of Puma Street between Bunker Lake Boulevard and Alpine Drive, was only constructed with a temporary pavement section consisting of a few inches of aggregate base under roughly 2 inches of bituminous pavement.  No public utilities were installed under the temporary pavement sections along Bunker Lake Boulevard or Puma Street.
 
The existing trunk watermain along Bunker Lake Boulevard is 16-inch ductile iron pipe (DIP).  The existing trunk sanitary sewer is 18-inch polyvinyl chloride (PVC) pipe.  These trunk utilities were intended to be extended to and along Puma Street based on demand, after which the streets will be constructed to their ultimate designs.  The trunk utilities are currently located 3 or more feet south of the edge of the existing pavement section so extending the utilities can be accomplished by closing one lane of traffic on Bunker Lake Boulevard.  Access to the existing home in the northeast corner of the intersection of Bunker Lake Boulevard and Puma Street can therefore be maintained at all times during construction.
 
In March 2017, Bolton Menk updated the Future Business Park report to include estimated costs for extending trunk utilities to Puma Street.  A copy of the updated report is attached.  Per the report, estimated costs to extend the 16-inch trunk watermain line 1,400 feet to Puma Street, including fire hydrants and service stubs to abutting properties to the north and south, is $154,000.  Estimated costs to extend the 18-inch trunk sanitary sewer line 1,400 feet to Puma Street, including manholes and service stubs to abutting properties to the north and south, is $179,000.  These costs include 30% contingency and indirect costs.  All costs to extend the utilities are proposed to be paid through City sewer and water funds.  The developer’s share of these costs will be recovered through their trunk utility fees at the time of development.

The City is currently working with Capstone Homes to develop an assessment agreement that will allow the City to construct the remaining public infrastructure needed to support their development, including trunk utilities, streets, and sidewalks/trails along Bunker Lake Boulevard and Puma Street. The assessment agreement will allow the City to assess the developer for a pro-rata share of construction costs.  The assessment agreement will be presented to the City Council for consideration of approval at a later date.

Capstone Homes proposes to begin construction of the Riverstone development this summer, with development of the lots on the south end occurring first.  In order to issue Certificates of Occupancy, the homes must be served by City sewer and water which will require the existing trunk utilities to be extended along Bunker Lake Boulevard through Puma Street. By completing this work as a City improvement project in advance of the assessment agreement improvements, Capstone Homes will be able to connect more homes to City sewer and water in the fall of 2017 due to the time that will be saved by extending trunk utilities to Puma Street in advance.
 
Per City Council direction, Staff has prepared plans and specifications for extending both public trunk utility lines (sanitary sewer and watermain) along Bunker Lake Boulevard through its intersection with Puma Street this summer to support the current Riverstone development proposal and all future development proposals within the Future Business Park area.  Attached is a copy of the draft plans for the proposed improvements.
 
The proposed schedule for this project is as follows:

• April 25th – City Council authorizes plans and specifications
• May 23rd – City Council approves plans and specifications and authorizes bids
• June 21st – Public bid opening
• June 27th – City Council accepts bids and awards contract
• July 10th – Begin construction
• August 25th – Complete construction

No notifications are required for this case.

Observations:
City Staff prepared plans and specifications for completing the trunk utilities extension improvements in-house.  Staff proposes to administer the project and to stake and inspect construction.
 
Staff will continue to work with all property owners along the west end of Bunker Lake Boulevard to ensure all proposed utility service stubs are properly located to minimize or prevent future impacts to Bunker Lake Boulevard.
 
Repairs to the existing temporary street section due to the utilities extension work was evaluated during development of the plans.  The plans include the use of aggregate base as a temporary street surfacing over a small area of the south edge of Bunker Lake Boulevard since the street is proposed to be reconstructed to its permanent condition in the spring of 2018.  The City’s aggregate base stockpile on the future Public Works campus site can be used for the temporary aggregate surfacing.
 
Alternatives:
Alternative #1 – Motion to adopt Resolution #17-05-119 approving plans and specifications and authorizing advertisements for bids for Improvement Project #17-09, Bunker Lake Boulevard Utilities Extension.
 
Alternative #2 – Motion to deny adoption of Resolution #17-05-119 at this time.
 

The Engineer’s Estimate based on the attached draft plans is $425,000, which includes 23% indirect costs.

Bolton & Menk’s estimated costs per their future business park study totaled $333,000, which included 30% contingency and indirect costs.

All costs required to extend the trunk utilities are proposed to be paid through City sewer and water funds.
 

Staff recommends alternative #1 to support current and future development within the Future Business Park area.

Adopt Resolution #17-05-119 approving plans and specifications and authorizing advertisements for bids for Improvement Project #17-09, Bunker Lake Boulevard Utilities Extension.