7.1.
CC Regular Session
- Meeting Date:
- 05/26/2015
- By:
- Bruce Westby, Engineering/Public Works
Information
Title:
Approve draft Assessment Agreement for Ridgepoint Residential Development Improvements, Improvement Project 15-21
Purpose/Background:
Purpose:
The purpose of this case is to approve the draft Assessment Agreement that provides for repayment of City funds used to construct proposed Ridgepoint seven (7) unit single-family residential 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, and has requested the City of Ramsey to construct the required stage 1 and stage 2 improvements for the Ridgepoint development. Village Bank will then repay the City over a period of three (3) years per the attached draft Assessment Agreement (Exhibit 1). Village Bank is not comfortable funding construction of the required improvements themselves due to certain regulatory language that prohibits banks from speculating in real estate.
Village Bank utilized the engineering consulting firm of Hakanson Anderson to complete the final design and to prepare plans and specifications for the proposed Ridgepoint development improvements. Staff has preliminarily reviewed the plans and specifications and considers them to be acceptable for constructing the proposed development improvements, though staff has not yet completed a thorough examination of the estimated quantities and costs. The Engineer’s estimate based on the final plans and specifications totals $482,222.
The draft Assessment Agreement was developed by the City Attorney and was subsequently reviewed and approved by Village Bank. The final Assessment Agreement, which will require City Council approval through an adopted resolution, will incorporate the actual bid prices and will therefore be presented to Council for approval immediately before Council is asked to accept bids and award a contract for Improvement Project #15-21. Staff will recommend adding a contingency cost to the bids to help ensure the assessments identified in the final Assessment Agreement will be adequate to cover final construction costs.
On Tuesday, May 19th, the Public Works Committee reviewed the draft Assessment Agreement with Staff and representatives from Village Bank and unanimously voted to recommend Council approval of the draft agreement as attached.
If the Council has questions or concerns related to specific terms and conditions of the draft Assessment Agreement, Finance Director Lund and a representative from the City’s financial consultant, Ehlers & Associates, will be available to address such questions. Representatives from Village Bank will also be available to answer questions.
The purpose of this case is to approve the draft Assessment Agreement that provides for repayment of City funds used to construct proposed Ridgepoint seven (7) unit single-family residential 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, and has requested the City of Ramsey to construct the required stage 1 and stage 2 improvements for the Ridgepoint development. Village Bank will then repay the City over a period of three (3) years per the attached draft Assessment Agreement (Exhibit 1). Village Bank is not comfortable funding construction of the required improvements themselves due to certain regulatory language that prohibits banks from speculating in real estate.
Village Bank utilized the engineering consulting firm of Hakanson Anderson to complete the final design and to prepare plans and specifications for the proposed Ridgepoint development improvements. Staff has preliminarily reviewed the plans and specifications and considers them to be acceptable for constructing the proposed development improvements, though staff has not yet completed a thorough examination of the estimated quantities and costs. The Engineer’s estimate based on the final plans and specifications totals $482,222.
The draft Assessment Agreement was developed by the City Attorney and was subsequently reviewed and approved by Village Bank. The final Assessment Agreement, which will require City Council approval through an adopted resolution, will incorporate the actual bid prices and will therefore be presented to Council for approval immediately before Council is asked to accept bids and award a contract for Improvement Project #15-21. Staff will recommend adding a contingency cost to the bids to help ensure the assessments identified in the final Assessment Agreement will be adequate to cover final construction costs.
On Tuesday, May 19th, the Public Works Committee reviewed the draft Assessment Agreement with Staff and representatives from Village Bank and unanimously voted to recommend Council approval of the draft agreement as attached.
If the Council has questions or concerns related to specific terms and conditions of the draft Assessment Agreement, Finance Director Lund and a representative from the City’s financial consultant, Ehlers & Associates, will be available to address such questions. Representatives from Village Bank will also be available to answer questions.
Notification:
No notifications are required for this case.
Observations/Alternatives:
Observations:
In addition to assessing the property owner for the improvement construction costs, assessments will be levied for City staff time required to administer and inspect construction which is estimated at 5.5% of construction costs, and for construction testing which is estimated at 2% of construction costs.
Alternatives:
Alternative Action #1 – Motion to approve the draft Assessment Agreement for Ridgepoint residential development improvements, Improvement Project 15-21 as proposed.
Alternative Action #2 – Motion to approve the draft Assessment Agreement for Ridgepoint residential development improvements, Improvement Project 15-21 with the following modifications: ____________________.
Alternative Action #3 – Motion to deny approval of the draft Assessment Agreement at this time.
In addition to assessing the property owner for the improvement construction costs, assessments will be levied for City staff time required to administer and inspect construction which is estimated at 5.5% of construction costs, and for construction testing which is estimated at 2% of construction costs.
Alternatives:
Alternative Action #1 – Motion to approve the draft Assessment Agreement for Ridgepoint residential development improvements, Improvement Project 15-21 as proposed.
Alternative Action #2 – Motion to approve the draft Assessment Agreement for Ridgepoint residential development improvements, Improvement Project 15-21 with the following modifications: ____________________.
Alternative Action #3 – Motion to deny approval of the draft Assessment Agreement at this time.
Funding Source:
City Improvement Project 15-21 is proposed to be funded from the Public Improvement Revolving (PIR) fund, which will then be paid back over a period of three years using the special assessments levied against the property owner via the Assessment Agreement.
Recommendation:
Staff recommends approving the draft Assessment Agreement for the Ridgepoint residential development improvements. As noted earlier, Council will still need to adopt a resolution approving the final Agreement prior to awarding a contract to construct the improvements.
Action:
Motion to approve or deny the draft Assessment Agreement for the Ridgepoint residential development improvements, Improvement Project #15-21.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Diana Lund | Bruce Westby | 05/20/2015 04:42 PM |
| Bruce Westby (Originator) | Bruce Westby | 05/20/2015 05:17 PM |
| Diana Lund | Diana Lund | 05/21/2015 07:13 AM |
| Brian Hagen | Tim Gladhill | 05/21/2015 10:35 AM |
| Kurt Ulrich | Kurt Ulrich | 05/21/2015 01:02 PM |
- Form Started By:
- Bruce Westby
- Started On:
- 05/19/2015 04:07 PM
- Final Approval Date:
- 05/21/2015