6.6. SR 09-06-2005
Item 6.6. A-C
13065 Orono Park"way
Elk Rivec MN 55330
August 30, 2005
File: 226-0353D
The Honorable Mayor and City Council
City of Elk River
13065 Orono Parkway
Elk River 1v1N 55330
RE: NORTHSTAR BUSINESS PARK
CONSTRUCTION BIDS/ASSESSMENT HEARING
Dear Council Members:
We have tabulated the bids received on Tuesday, August 30, 2005 for the Northstar Business
Park Improvements. The bid package included the site grading, sanitary sewer, water, storm
sewer, and street construction. There were a total of 16 bidders. The following list provides
the low three bidders and their total bid amount. Also attached is a complete bid tabulation.
Bidder
Amount
Northdale Construction, Inc. $645,415.33
Kober Excavating, Inc. $653,955.14
Barbarossa & Sons, Inc. $659,729.80
The original feasibility study for this project estimated the total construction cost at just over
$1 million. As perspective businesses were identified to locate in the Northstar Business
Park, the layout of the final plat was adjusted, reducing the construction cost slightly. The
revised estimate was approximately $850,000. Northdale Construction's bid is significantly
below this revised construction cost estimate. N orthdale Construction has successfully
completed similar projects in the past, therefore, we would recormnend award to them as the
lowest responsible bidder in the amount of $645,415.33. Attached for the City Council's
consideration is a resolution that would award the Northstar Business Park Improvements to
Northdale Construction.
Funding for the cost of the improvements in the Northstar Business Park is proposed to be
through assessments of all project costs to the benefited buidable lots. These six lots are
owned by the City's Economic Development Authority (ED A). Therefore, the City will be
Phone: 763.635.1000
Fax: 763.635.1090
www.ci.elk-river.mn.us
Northstar Business Park
August 30, 2005
Page 2
assessing the cost against the EDA. Attached are two resolutions for the City Council's
consideration to initiate the assessment process. The first resolution determines the cost to
be assessed and orders the preparation of the assessment roll. You will note that this
resolution indicates a construction price of $740,000. This is the actual Northdale
Construction bid plus a construction contingency, since the assessment is being levied prior
to construction taking place. When final construction costs are known, the assessment will
be adjusted to only include actual costs. The second resolution establishes a date for the
assessment hearing of October 3,2005. We would recommend adoption of both of these
resolutions.
If you have any questions, I will be in attendance at your September 6, 2005 City Council
meetmg.
Sin~l
;UA~\}jjfaat/~
T~;Yj.~~~~~PE
City Engineer
S:\EngineerImprovProj\2005 Improvement Projects\Nonhstar Business Park\08 3005 cc memo.doc
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RESOLUTION 05-
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ACCEPTING BID AND AUTHORIZING
EXECUTION OF CONTRACT IN THE MATTER OF THE
NORTHSTAR BUSINESS PARKMPROVEMENT OF 2005
WHEREAS pursuant to a City COllilcil Resolution 05-83, passed at the August 1, 2005 meeting,
competitive bids were solicited and received for the Northstar Business Park Improvement;
and
WHEREAS the City COllilcil has considered the amount of the bids and the responsibility of the bidders
and determined Northdale Construction, Inc. is the lowest responsible bidder;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota:
1. The Mayor and City Administrator are authorized and directed to execute, on behalf of the City, such
contract with Northdale Construction, Inc. as is approved by the City Attorney, for the completion
of the Northstar Business Park Improvement according to the approved plans and specifications
designed by City Council Resolution.
2. The City Administrator is authorized and directed to forthwith return to all bidders the deposits
made with their bids upon execution of the contract specified above.
Passed and adopted this 6th day of September, 2005.
StephanieA.EJllucing,11ayor
ATTEST:
Joan M. Schmidt, City Clerk
s: \EngineerImprovProj\2005 Improvement Projects \N orthstar Business Park\Acceptbid~authorzcontract.doc
RESOLUTION 05-_
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION DETERMINING ASSESSED COST OF
IMPROVEMENT AND ORDERING PREPARATION OF
PROPOSED ASSESSMENT ROLL IN THE MATTER OF
NORTHSTAR BUSINESS PARK IMPROVEMENT OF 2005
WHEREAS costs have been detennined for the Northstar Business Park Improvement consisting of a
contract price of $740,000.00, and expenses incurred or to be incurred by the City in the
making of the improvement in the amount of $207,200.00, for a total cost of the
improvement of $947,200.00.
NOW, THEREFORE, BE IT RESOLVED by the City Conncll of the City of Elk River, Minnesota:
1. Based upon the City Assessment Policies, it is detennined that the portion of this improvement to be
paid by the City and not assessed to benefited properties is $-0-.
2. The portion of the cost to be assessed against benefited properties pursuant to the Elk River City
Assessment Policies shall be $947,200.00.
3. The assessments shall be payable in equal annual installments and shall extend over a period of 10
years, the first of the installments to be payable on or before the first Monday in January, 2006, with
interest at the rate of 5.50/0 per annum from the date of the adoption of the assessment resolution.
4. The City Administratormth the assistance of the Project Engineer shall forthwith calculate the
proper amolUlt to be specially assessed for such improvement against every assessable lot, piece, or
parcel of land, without regard to cash valuation, as provided by law, and shall have available at the
City Administrator's office a copy of the proposed assessment roll for public inspection.
5. Upon completion of the proposed assessment roll, the City Administrator shall notify the Council
and schedule a public hearing upon the proposed assessment, causing notice of the hearing by
publication and mail to be made at least two weeks prior to the hearing.
Passed and adopted this 6th day of September., 2005.
Stephanie A. Klinzing, Mayor
A TIEST:
Joan M. Schmidt, City Clerk
S:\EngineerImprovProj\2005 Improvement Projects\Northstar Business Park\Res Determ cost-order assessm roll.doc
RESOLUTION 05-_
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ESTABLISHING THE DATE FOR THE ASSESSMENT HEARING FOR
THE NORTHSTAR BUSINESS PARK IMPROVEMENT OF 2005
WHEREAS, by a resolution passed by the COlUlcil on September 6, 2005 the City Clerk was directed to
prepare a proposed assessment roll of the cost of the Northstar Business Park
Improvement; and
WHEREAS, the Clerk has notified the Council that such proposed assessment roll will be completed and
filed in the Clerk's office for public inspection by the appropriate time.
NOW, THEREFORE, BE IT RESOLVED by the Gty Conncil of the City of Elk River, Minnesota:
1. A hearing shall be held on the 3rd day of October 2005, in the City Hall at 6:30 p.m. to pass upon
such proposed assessment and at such time and place all persons owning property affected by such
improvement will be given an opportunity to be heard with reference to such assessment.
2. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be
published once in the official newspaper at least two weeks prior to the hearing, and shall state in the
notice the total cost of the improvement. The City Clerk shall also cause mailed notice to be given to
the owner of each parcel described in the assessment roll not less than tvlO prior to the hearings.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date
of payment, to the City of Elk River, except that no interest shall be charged in the entire assessment
is paid within 30 days from the adoption of the assessment. The owner of any property may at any
time thereafter pay to the City of Elk River the entire amount of the assessment remaining unpaid,
with interest accrued to December 31st of the year in which such payment is made. Such payment
must be made before November 15th or interest will be charged through December 31st of the
succeeding year.
Passed and adopted this 6th day of September 2005.
Stephanie A. Klinzing, Mayor
ATTEST:
Joan M. Schmidt, City Clerk
S:\EngineerImprovProj\2005 Improvement Projecrs\Northstar Business Park\Res Estab Date Assemnt Hear.doc