Consider Authorizing Work Order for WSB to assist with Shovel Ready Certification Process

PURPOSE:
(1) Consider authorizing work order for WSB to assist with Shovel Ready Certification Process.

BACKGROUND
Please see attached City Council Strategic Plan, Strategic Imperative 1 (Tactics 2 and 4).  Please see attached EDA Workplan, Priority 1 (Sell Surplus City-Owned Land).  In summary, staff has been directed to attain State of Minnesota development ready certifications (known as "DEED Shovel Ready" certifications) for available City-owned land, and the future business park(http://mn.gov/deed/government/shovel-ready/program-overview/index.jsp). 
 
The purpose of this case is to authorize WSB to complete/ direct a large majority of the work required to complete the proposed development certifications.  Please see attached WSB MEMO/Work Order, and Information Table for details.  WSB is a professional services organization, specializing in Civil Engineering and City Planning (http://www.wsbeng.com/).

 

NA

STAFF NOTES
(1) In response to a handful of development inquires made on the City-owned parcel located off Ramsey Boulevard and 142nd Ave (#37, former B&A), staff did authorize Hakanson Anderson complete some pre-development engineering work in early 2016.  That work is attached.  The purpose of that work was to "tee-up" the site for a future development ready certification (i.e. the work WSB will be completing).  In summary, the City has a large majority of the data needed for a shovel ready certification today, for parcel #37.  This site is slightly unique property, in that it requires an extension of public utilities to be developed.

(2) Two major development "unknowns" exist in The COR today: (A) what is the cost/ alignment of the remaining portion of Ramsey Parkway and Zeolite Street, and (B) what is the cut/ fill needed, associated cut/fill costs, for The COR--and what is the City's plan for Lake Ramsey, and for stormwater infiltration in The COR.  Staff believes both questions play a very important role in the "development readiness" of The COR.  And, these are the first questions prospect developers/ businesses ask staff when considering The COR (especially for listings #46 and #48).  Staff is working with WSB to develop a proposal for Item A (concept layout and feasibility report for Ramsey Parkway and Zeolite).  Internally, the City's Engineering Department is working on Item B.

ALTERNATIVES
(1) Authorize the attached WSB not-to-exceed work order.
(2) Amend the attached work order.
(3) Complete a competitive RFQ process.
(4) Don't move forward with the shovel ready process/ re-consider scope.

 

Both the EDA Workplan and City Council Strategic Plan identify TIF #1 as the proposed funding source for this work.  As a result, in 2015, $130,000 was budgeted by staff in TIF #1. 

Shovel Ready Budget:
Hakanson Anderson (past work, paid), $9,000
WSB (this case), $106,000*
Connexus Energy (future rebate), +$18,000

STAFF NOTES
The City has about 16 separate property listings.  Staff does not recommend the City complete an individual certification for each individual property listing (can range from $10,000-$30,000 per certification).  Staff is recommending the City (1) eliminate all properties currently under contract for sale from our shovel ready workslist, (2) eliminate small properties, with low asking prices, from the shovel ready worklist, and (3) combine logical properties into one certification, rather than handle individually.  With the above in mind, the City is able to reduce the number of certifications from roughly 16 to 6, which will be a major cost savings.

WHY WSB?
WSB & Associates is the City of Ramsey Community Development Department's "contract" planning firm.  Meaning, when the Planning Department needs additional resources or support, WSB is utilized, based on a previously agreed upon set of rates/ fees.  Due to the role WSB plays for the City now, and projects they have worked on in Ramsey, they are uniquely equipped to "hit-the-ground-running" on the proposed work.

The primary agent WSB will be assigning to this work is Jim Gromberg.  Mr. Gromberg worked for the State of Minnesota, Department of Employment and Economic Development (DEED) for a number of years.   A major responsibility of Mr. Gromberg was to administer the DEED Shovel Ready program.  Additionally, Mr. Gromberg worked for the City of Ramsey for a number of years.  With both items in mind, Mr. Gromberg (WSB) brings a unique ability to efficiently and effectively complete this work.  Whereas, other engineering firms would likely lack direct experience with the DEED Shovel Ready program.

RECOMMENDATION
Staff recommends the EDA/ City Council authorize the attached work, as proposed by WSB.  This work will nearly complete the development ready certification process for city-owned land.  It should be noted, outside of obtaining a shovel ready status for city-owned property, the City will also receive the benefit of MN DEED marketing efforts (which explicitly advertise DEED Shovel Ready Certified properties at a local and national level).
 

Motion to:
Authorize the attached work order with WSB & Associates, not to exceed $86,661; subject to final review and amendments by the City Attorney.