7.1. SR 07-20-2009REQUEST FOR ACTION
To Item Number
Ci Council 7.1.
Agenda Section Meeting Date Prepared by
Public Works ul 20, 2009 Te Maurer, Public Works Director
Item Description Reviewed by
Norfolk, Morton, Lowell, King Avenues Area Street
Improvement -Public Hearing/Assessment Hearing Reviewed by
Action Requested
The City Council is requested to conduct a public hearing/assessment hearing for the Norfolk,
Morton, Lowell, King Avenues Area Street Improvement Project. After the hearings are closed,
the Council is requested to consider adoption of the attached three resolutions: The first,
Ordering the Improvement (requires 4/5 vote of the Council); the second, Adopting the
Assessment Roll; and the third, Accepting the Bid and Authorizing Execution of the Contract.
Background/Discussion
After an informational hearing was held on Apri122, 2009 with the affected property owners, the
City Council authorized preparation of plans and specs and bidding the project on July 7, 2009,
anticipating this evening's public hearing/assessment hearing. There were a total of seven bids
received. Following is a list of bidders and their total bids. The complete bid tabulation is
attached.
Compan Name Bid Amount
Rum River Contractin $238,156.60
North Valle ,Inc. $244,561.90
Northwest As halt $258,510.25
Hardrives, Inc. $266,821.90
W.B. Miller, Inc. $280,731.36
G.M.H. As halt Co oration $281,597.20
Knife River Inco orated ~ $303,175.08
The feasibility for the project estimated the construction cost for street, storm sewer
improvements and some minor watermain improvements at $411,000. The low bid received
from Rum River Contracting is approximately 40 percent under the feasibility estimate. At the
close of the public hearing/assessment hearing and the passage of the resolution ordering the
improvement and the resolution adopting the assessment roll, we will be prepared to recommend
the award of the contract to Rum River Contracting as the lowest responsible bidder.
At Monday evening's meeting, the public hearing/assessment hearing for the project is scheduled,
I will be prepared with a presentation that will briefly discuss the project, go through a cost
analysis, and discuss the assessment. Allowing a small percentage for contingency above the bid
Norfolk, Morton, Lowell, King Improvement Page 2
July 2Q 2009
of Rum River Contracting, since it is a per unit contract, I will be prepared to recommend that the
City Council reduce the assessment rate per unit from $4,500 to $3,750.
One of the issues that the City Council should be prepared to address is whether or not the
residential properties at the corners of Main Street with Norfolk, Morton, and Lowell Avenues
should be included in the assessment of this project. Currently, they are all included in the
assessment roll and have been noticed of this hearing and the proposed assessment to their
property. As a way of background, Main Street was reconstructed in 1988 and all of these
properties were assessed for that street reconstruction at that time. In the 2003 and 2005 street
reconstruction projects there were also properties similar to these affected at the corners of Main
Street and streets within those projects. Those properties were eliminated from the assessment
roll of the 2003 and 2005 projects because they had previously paid an assessment in 1988 for the
Main Street reconstruction.
Somewhat different than these residential properties are the First National Bank and Dare
Funeral Home properties. They are proposed to be assessed two units each for the work on King
Avenue. As you are aware, Main Street in front of these properties was overlaid last year and no
assessment was levied.
At the time of this memo, staff has not received any written objection to the proposed
assessment. The only contact we have received is the email all Council members received from
Don and Kitty Schumacher, who are unable to attend the meeting. A copy of that email is
attached for your reference.
At the close of the public hearing/assessment hearing, it would be appropriate for the City
Council to consider adoption of the resolutions. The first resolution orders the improvement and
requires a 4/5 vote of the City Council; the second resolution adopts the assessment roll. This
can be adopted with any changes the city deems appropriate based on input at the public hearing.
This would include reducing the assessment rate from $4,500 per unit to $3,750 per unit. The
final resolution awards the contract to Rum River Contracting in the amount of $238,156.60.
Financial Impact
Based on the recommended reduction in the assessment rate from $4,500 per unit to $3,750 per
unit, the city's contribution to this project will be approximately 1 /3 the cost with approximately
2/3 of the cost being assessed to the affected properties. The city has budgeted in the Capital
Improvement Program for this street reconstruction with the city's share coming from Street
Reserves. There will be a small contribution from the Elk River Municipal Utilities for minor
adjustments to the water system in the area that they have requested.
Attachments
• Bid tabulation
• Resolution Ordering the Improvement
• Resolution Adopting the Assessment Roll
• Resolution Accepting the Bid and Authorizing Execution of the Contract
• Assessment Roll
• E-mail from the Schumachers
• Letters from residents received after this memo was submitted
Norfolk, Morton, Lowell, King Improvement
July zo, zoos
Page 3
Action Motion by Second by Vote
Follow Up
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RESOLUTION 09-
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ORDERING THE IMPROVEMENT IN THE MATTER OF
NORFOLK, MORTON, LOWELL, KING AVENUES AREA
STREET IMPROVEMENT OF 2009
WHEREAS a public hearing relating to the Norfolk, Morton, Lowell, King Avenues Area Street
Improvement was held before the Elk River City Council after ten days mailed notice and
two weeks published notice of the hearing was given; and
WHEREAS the City Council has duly considered the Feasibility Report and those matter presented at the
public hearing by those person desiring to be heard on the matter;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota:
1. The Norfolk, Morton, Lowell, King Avenues Area Street Improvement is hereby ordered as
recommended in the Feasibility Report dated May 11, 2009.
Passed and adopted this 20~ day of July, 2009.
Stephanie A. Klinzing, Mayor
ATTEST:
Tina Allard, City Clerk
C:\Documents and Settings\jjohnson\Local Settings\Temporary Internet Files\OLK49\Order Improvement.doc
RESOLUTION 09 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ACCEPTING BID AND AUTHORIZING
EXECUTION OF CONTRACT IN THE MATTER OF THE
NORFOLK, MORTON, LOWELL, KING AVENUES
STREET IMPROVEMENT OF 2009
WHEREAS pursuant to a Ciry Council Resolution 09-26, passed at the May 18, 2009 meeting,
competitive bids were solicited and received for the Norfolk, Morton, Lowell, King Avenues
Street Improvement; and
WHEREAS the City Council has considered the amount of the bids and the responsibility of the bidders
and determined that Rum River Contracting Company is the lowest responsible bidder;
NOW, THEREFORE, BE IT RESOLVED by the Ciry 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 Rum River Contracting Company, as is approved by the Ciry Attorney, for the
completion of the Norfolk, Morton, Lowell, King Avenues Street Improvement according to the
approved plans and specifications designated by City Council Resolution.
2. The Ciry 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 20~ day of July, 2009.
Stephanie A. Klinzing, Mayor
ATTEST:
Tina Allard, Ciry Clerk
C:\Documents and Settings\jjohnson\Local Settings\Temporary Internet Files\OLK49\Accept Bid.doc
RESOLUTION 09 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ADOPTING FINAL ASSESSMENT ROLL IN THE MATTER OF
THE NORFOLK, MORTON, LOWELL, KING AVENUES STREET
IMPROVEMENT OF 2009
WHEREAS upon due notice properly made as required by law, the Elk River Ciry Council has met and
heard and passed upon all objections to the proposed assessment for the Norfolk, Morton,
Lowell, King Avenues Street Improvement and has determined the amount to be assessed
against each individual property as the Council deems just;
NOW, THEREFORE, BE IT RESOLVED by the Ciry Council of the Ciry of Elk River, Minnesota:
1. The final assessment roll, a copy of which is attached hereto and incorporated herein by this
reference, is hereby accepted and adopted and shall constitute the special assessment against the
lands therein named. Each such tract of land in the assessment roll is hereby found to be benefited
by the improvement in an amount not less than the amount of the assessment levied against it.
2. Such assessment shall be payable in equal annual installments, including both principal and interest,
amortized in such amount annually as is required to pay the principal with interest at 5% over a
period of 7 - 10 years.
3. The owner of any property so assessed may at any time prior to certification to the County Auditor
of the assessment or the first installment thereof, pay to the City Treasurer the whole of the
assessment on such property, with interest accrued to the date of payment; except that no interest
shall be charged if the entire assessment is paid within 30 days after the adoption of this Resolution.
Prepayment may also be made after the certification of the assessment or first installment thereof by
paying to the Ciry Treasurer/County Auditor the entire amount of the assessment remaining unpaid
with interest. In the case of a payment made before November 15, interest will be calculated through
December 31 of the year in which payment is made. If payment is made after November 15, interest
will be calculated through December 31 of the next succeeding year.
4. The Ciry Administrator shall transmit to the County Auditor a certified duplicate of the attached
assessment roll to be extended on the property tax lists of the County. Such assessment shall be
collected and paid over in the same manner as other municipal taxes.
Passed and adopted this 20th day of July, 2009.
ATTEST:
Tina Allard City Clerk
Stephanie A. Klinzing, Mayor
C:\Documents and Settings\jjohnson\Local Settings\Temporary Internet Files\OLK49\Adopt Assess Roll.doc
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From: Don Schumacher [mailto:dschumacher@charter.net]
Sent: Wednesday, July 08, 2009 12:04 PM
To: sklinzing; Zerwas, Nick; jgumphrey; Westgaard, Matt; pmotin
Cc: Johnson, Lori; Maurer, Terry
Subject: Norfolk Ave., et.al. Street Improvement
To All,
My wife Kitty and I have lived for over 30 years at 212 Norfolk Ave. which is in the proposed
Street Improvement which is scheduled for a hearing on July 20`h. Unfortunately we will both be
out of town at that time. However, we do want to be on record as being very much in favor of the
project for at least the following reasons.
1. The work clearly needs to be done.
2. Some level of infrastructure maintenance should be done every year regardless of
the economy.
3. This is likely an opportune time to obtain a favorable bid(s) for the work because of
the economy.
We urge you to approve the project and thank you for your thoughtful consideration.
Don and Kitty Schumacher
ss July 2oc~
Sub: 2009 Street Rehab Project
From: Neil Fi. & Maria D. Anderson
27 Morton Ave. NW
Elk River, MN 55330
To: Efk River City Council
RECEIVED JUL 1 ~ X009
As property owners involved in this proposed assessment project we are very much in favor of having
the project completed this year. If the final bid comes in Less than anticipated the savings should be
passed onto the property owners by decreasing the assessment. If the city council chooses to delay the
project against the wishes of the property owners it would be appropriate to guarantee the $4500 cost.
My wife and !will not be able to attend the meeting, hence this letter.
L~~~
Neil H. Ande n
Maria D. Anderson
R~GElVED ~UL 1 ~
16 July 2009
Sub: 2009 Street Rehab Project
From: Mrs. Rodney Anderson (tax payer}
1011 Manor Place
Elk River, MN
To: Elk River City Council
As property owner involved in this proposed assessment project we I am very much in favor of having
the project completed this year. If the Tina! bid comes in less than anticipated the savings should be
passed onto the property owners by decreasing the assessment. If the city council chooses to delay the
project against the wishes of the property owners it would be appropriate to guarantee the $4500 cost.
I will not be able to attend the meeting, hence this letter.
Mrs. Rodney Anderson