HomeMy WebLinkAbout15.A.1. Reimbursement Agreement with Ryan Companies
\s.A. \.
CITY OF SHAKOPEE
Memorandum
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
SUBJECT: Approval of Reimbursement Agreement with Ryan Companies US, Inc.
for Design Costs on Improvements on Proposed Dean Lakes Plat
DATE: November 18, 2003
INTRODUCTION:
The developer of Dean Lakes (formerly Valley Green Corporate Center) has requested the
city start on designing the improvements for Dean Lake Boulevard, Dean Lake Trail and
Meadow Lane within the proposed plat of Dean Lakes. Attached are a reimbursement
agreement between the developer and city for design costs and an extension agreement
between the city and WSB & Associates, Inc. for the design services as requested by the
developer.
BACKGROUND:
The developer for Dean Lakes will be petitioning the City to construct Dean Lake
Boulevard, Dean Lake Trail, Meadow Lane and utility extensions within the proposed
plat of Dean Lakes if approval of the plat and developer agreement occurs. The
developer is requesting the city to begin design work now for the three major streets and
utility extensions for the project in order to meet the schedule of their residential builder.
Attached is an unsigned reimbursement agreement for Council review and approval, as
prepared by the City Attorney.
The plans and specifications for these improvements will be done by WSB & Associates,
Inc. and an extension agreement proposal is attached for Council review and approval.
In discussions with the City Attorney, if a reimbursement agreement were approved, Staff
and City Attorney would recommend one additional condition in the standard agreement
to be included as follows:
. Approval of this agreement does not imply any approval to the platting, PUD and
CUP approval process.
The developer of Dean Lakes is requesting to proceed with the design of the major roads
and utilities to serve the site. Part of the financial discussions with this project is for the
City to install these improvements and assess the cost over a ten-year period.
The estimated cost of the improvements including engmeenng, financial and
administration costs is $4,240,000.00. The land use and financial considerations of the
project will be discussed at length at a special meeting on December 9, 2003. The
developer has been informed of the risk in proceeding in this fashion at this time. The
developer wants to proceed with the design in order to meet the schedule of the
residential builder if approvals are given to the project.
Staff has asked and received a proposal from WSB & Associates, Inc. for the design
work. WSB & Associates was the designer on C.R. 83/C.R. 16 Project and is assisting
staff in the review of the Dean Lakes proposal.
If Council agrees to enter into the reimbursement agreement, then the appropriate actions
would be to authorize the execution of an agreement with Ryan Companies US, Inc. for
city cost reimbursement and authorize the execution of an agreement with WSB &
Associates, Inc. for the design of the improvements.
ALTERNATIVES:
1. Authorize the appropriate City officials to execute a reimbursement agreement
with Ryan Companies US, Inc. for the preparation of plans and specifications for
the Dean Lakes improvements including Dean Lake Boulevard, Dean Lake Trail
and Meadow Lane including utility extensions and to reimburse the city of costs
associated with this design work.
2. Do not approve the reimbursement agreement with Ryan Companies US, Inc.
3. Table this item for additional information.
4. Authorize the appropriate City officials to execute an extension agreement with
WSB & Associates, Inc. for the preparation of plans and specifications for the
Dean Lakes improvements including Dean Lake Boulevard, Dean Lake Trail and
Meadow Lane including utility extensions.
5. Do not authorize the extension agreement.
RECOMMENDATION:
Staff recommends Alternative No. 1 and No.4, if Council accepts the request from the
developer for the City to begin design work on roadways within Dean Lakes and to
reimburse the city of those costs. If the Council does not want to proceed at this time,
then voting against agreement is the appropriate action. Proceeding with the design at
this time is to accommodate the developer's schedule and is at their request. Staff would
not begin any design work on this project until the security for payment of design services
is in place.
ACTION REQUESTED:
1. Authorize the appropriate City officials to execute a reimbursement agreement
with Ryan Companies US, Inc. for the preparation of plans and specifications for
the Dean Lakes improvements on Dean Lake Boulevard, Dean Lake Trail and
Meadow Lane including utility extensions and to reimburse the city of costs
associated with this design work.
2. Authorize the appropriate City officials to execute an extension agreement with
WSB & Associates, Inc. for the preparation of plans and specifications for the
Dean Lakes improvements to Dean Lake Boulevard, Dean Lake Trail and
Meadow Lane including utility extensions.
~~
Public Wor s Director
BUpmp
MEM5975
REIMBURSEMENT AGREEMENT
This Agreement is entered into as of November _, 2003, by and between the City of
Shakopee ("City") and Ryan Companies US, Inc ("Ryan").
RECITALS
A. Ryan has submitted a proposed development known as Dean Lakes pursuant to which
Ryan proposes to develop a mixed use development on property located in the Southeast
Quadrant of Highway 169 and County Road 83 ("Development").
B. In order to meet the infrastructure needs for the Development, the following Public
Improvements need to be constructed: See Exhibit A -- all public improvements within
the plat of Dean Lakes including street construction, turn lanes, storm sewer, sanitary
sewer, watermain, street lighting, sidewalk and bituminous trail and appurtenant work
("Public Improvements").
C. Ryan has requested that the City proceed with the engineering and design of the Public
Improvements and is willing to reimburse the City for the costs incurred by the City in
the design of the Public Improvements. Ryan acknowledges that but for its agreement to
reimburse the City for these costs, the City would not be proceeding with the design of
the Public Improvements.
D. The estimated cost for the design work for the Public Improvements is $225,000.00
In consideration of the mutual covenants conditions and provisions in this Agreement, the
City and Ryan agree as follows:
1. The Recitals are true and correct and are incorporated by reference into this Agreement.
2. The City is authorized to retain WSB & Associates to design the Public Improvements.
3. Ryan agrees to reimburse the City for 100% of the project costs incurred by the City in
designing the Public Improvements. For the purposes of this Agreement, the term "project
costs" includes all internal and out of pocket costs incurred by the City, including but not
limited to engineering, legal, and administrative expenses.
4. Simultaneously with executing this Agreement, Ryan shall submit to the City $225,000 in
cash or by a certified letter of credit approved by the city attorney made payable to the City
upon which the City may draw in the event Ryan defaults in any of its obligation under this
Agreement.
5. This Agreement is binding on the parties and their respective successors and assigns and
shall be governed by the laws of the State of Minnesota.
6. Ryan may terminate this Agreement for any reason by providing written notice of
termination to the City, provided however that Ryan will be responsible for reimbursing the
City for all project costs incurred up to the date that the City receives the written notice of
termination.
7. The invalidity or unenforceability of any provision in this Agreement shall not in any way
affect the validity or enforceability of any other provision, and this Agreement shall be
construed in all respects as if such invalid or unenforceable provisions had never been part
of the Agreement.
8. This Agreement constitutes the entire agreement between the parties concerning the
engineering and design of the project, and unless otherwise provided in this Agreement, any
other agreements or understandings, whether oral or written, with respect to such matters are
superseded and revoked. This Agreement may not be modified or amended except by a
writing signed by each party.
9. Nothing in this Agreement is intended to obligate the City in any way to approve, in whole
or in part, any aspect of the Dean Lakes development.
City of Shakopee
By
Its Mayor
By
Its City Administrator
By
Its City Clerk
Ryan Companies US, Inc.
By
Its
JJT-240356vl 2
SH155-79
.... ~"! ~
b' 48 Hou", b.forA.T~910NE CALL ~31f!H ~
OPHER 5T 2 ';:1=1 1lI1l1~ ~
Tn Clt... Area 651-454-000 == i ~~ t
w ""'- - W~
--- !
---- -. l
- .
- - I ~
-T '- ~
- .
- - - - I - - ---- - - .. ~n . 1 _ (~),
~ .r:J;, / .', I
...-. ;i;
:;:5-g
..,
,/'" ::, .
,r ,h. .
",r"''' r J ';:1"
- " ,;" I
- .."
~ ,."
-- ""
-- lll;
- I~ l
~
~ ~ ! ~
~ ~ ~ is
DEAN LA~E 05/98)
OHW ~ 747.0 (-'/749.0
lDOYR FLOOD -
"- 1 i'i I! !
~ "i"" 'II I' !
/ .- -1_. L I" ,l ~
1) IJ = < r--rz~ ~J
- - . ",. ; I .,. I '. -. _ ~ ,I .
Illl, I:W:: 1:1 I t I! I; ~l/~ ii' H /m-r."" I! i
9 ~: ~~~ ~~ f{~~ ~. '~rv,f ~ """- ~ a
~ .- ,z "" S" '3~ ~"
- - · , 'I · ,'<...U _ I
' . _.
" , l
=1
S!
EXlSl1r<<3
LEGEND p_oseo -=- =
PRCPmTY In:: _ _
llll)lT<J: WAY
1 ~. __
PHASING S 1/4stC1KIOUNE _______
~ · 005 1/""1/4 !IE"""""'" ______ _ _ _
""'"""'" '"" '" - , . - - - , - - =- -,
~ ~,,-- .-., .
- ~-- " - -- ~ ~
." "'.. .. "-< ~ ,= . -~ " -- ::: ::'.-- . -
42AC V1U J -_.' _._ ......... """" ~ z
-- -,_. - -- -.- '''''''''' "'.- w. w
.. -"", .- - z><. ,
--- ". 1=- =, _. ~ "':I' w
-...- " -~ ~ w, >_
"' · J """"""'" .- · _ ~ 'iliz, :i!a;
...- - -'.. ~-
.. . ~.,'- .--. -- ~. >Ii
T A '~"_' _.~, '.'.__ " ~ ~
EXHIBI =.__. _ ~ <<i, ~
"'o.JC ~ :>1:"::>:: lD
' 0" 0
I ~ ~
J g
! .. ,
. '- '. .'
' " i' ""
i l-,~ ,
!
I
~
,
!
t
~
,
,
d
~i
~!
:!
..
WSB
& Associates, Inc.
November 13,2003
Mr. Bruce Loney, P.E.
Public Works Director/City Engineer
City of Shakopee
129 Holmes Street South
Shakopee, MN 55379-1376
Re: Estimate of Cost to Provide Engineering Services
Valley Green Corporate Center I Dean Lake Residential Development
City of Shako pee
Dear Mr. Loney:
According to our Agreement for Professional Services within the City of Shako pee and Section
I-C-2 (Major Projects), this extension agreement is written to provide you with an estimate of
cost for engineering services for the above-referenced project. We are proposing to complete
the work as detailed on the attached scope of services, Exhibit AA@.
The attached work plan describes the approach and tasks proposed to be completed by WSB &
Associates, Inc. (WSB). It should be noted that the work plan includes final engineering design
for roadway plans, stonn sewer plans, sanitary sewer plans and watermain plans for that portion
of the project that will be part of the 429 process. This proposal assumes that no Feasibility
Report will be required.
Payment of services is estimated between $168,000 and $180,000 assuming a $3.3 million
estimated construction cost. It is also understood that the developer is requesting the City to
begin work on the design prior to Council ordering Plans and Specifications. WSB estimates
that not more than $40,000 would be spent between November 18 and December 9, 2003.
It is proposed that all work under the contract would be considered complete after the project is
awarded. It is WSB' s understanding that the construction services are not requested at this time
to be part of this proposal.
We are available to begin work plan as soon as authorized by the City, and we anticipate to
complete the project according to the following schedule, assuming that we receive the notice to
proceed.
We would propose to complete the project according to a tentative schedule noted as follows:
4150 Olson
Memorial Highway Approval extension agreement ............... ............................................ ........November 18, 2003
Order plans and specs ....... .................................... ........ ................................ December 9, 2003
Suite 300 Receive plans and specs / Order ad for bid....................................................... January 6, 2004
Minneapolis Receive bids..... .............................. ........................ ....... ............. ................... February 11, 2004
Minnesota A ward contract.................................................. ............................................ February 17, 2004
55422 Begin construction.. ..... ................................................................................. February 23, 2004
763.541-4800 Substantial construction completion ................. .................................... .... ........... Summer 2004
F:\WP\V]}'1\Proposal\Shakopee\VaIley Green Proposa1.doc
763.541.1700 FAX Minneapolis. St. Cloud. Equal Opportunity Employer
Mr. Bruce Loney, P.E.
Sltakopee, MN
November 13, 2003
Page 2
The City of Shako pee agrees to reimburse WSB & Associates for these services in accordance
with Section IV of the Agreement for Professional Services. If this agreement meets with your
approval, please sign below and return one copy to our office.
Sincerely,
Donald W. Sterna, P.E. City Administrator
Vice President
City Clerk
Mayor
Date
F;\WPViIN\PROPOSALISHAKOPEEW ALLEY GREEN PROPOSAL.DOC
Exhibit A
V ALLEY GREEN CORPORATE CENTER /
DEAN LAKE RESIDENTIAL DEVELOPMENT
City of Shakopee, MN
WORK PLAN
. Project~anagelDent
This task includes planning and coordination of all work tasks, establishment and monitoring of
budgets, and correspondence with the City of Shakopee on a periodic basis. The project manager will
provide technical direction on all aspects of the project, review all work products, and prepare monthly
progress reports. The project manager will serve a primary role in the many design considerations.
. Data Collection
Available data will be collected from RLK Kuusisto, the City, Scott County, :M::n/DOT, private utility
companies, and adjacent developers as necessary, to prepare the construction documents.
. Soils Report
No additional subsurface exploration will be needed due to the amount of previous soil borings. Any
additional soil borings will be considered additional services.
. Construction PlanlBidding Documents
The construction planslbidding documents phase includes the bulk of our effort on the project. Some
of the activities associated with this phase and included in the project fee are as follows:
- Description of the Project
It is our understanding that the project, as outlined at the October 20, 2003 meeting includes
the following activities:
- Surface improvements including all street-related to the 429 process.
- Traffic signal system addition of loop detectors Valley Green Corporate Center
access.
- Storm sewer design.
- Sanitary sewer design.
- Watermain design.
- Agency coordination.
- Final Design
This phase will include the development of bidding documents as necessary to facilitate
construction, as well as receive the necessary agency approvals. Preparation of these
documents includes, but is not limited to, the following tasks.
- Preparation of cross-sections at 50-foot intervals.
- 50-scale plan and profile sheets for street construction, and roadway stonn sewer
construction.
- Erosion control turf establishment.
- Streetscaping plans (if required).
Page 1 F:\WPWIMPROPOSALISHAKOPEEiEXHA J J J J03.DOC
Exhibit A
V ALLEY GREEN CORPORATE CENTER I
DEAN LAKE RESIDENTIAL DEVELOPMENT
City of Shakopee, MN
- Construction staging and traffic control.
- Traffic signal system additions.
- Storm sewer plans.
- Sanitary sewer plans.
- Watermain plans.
- Roadway cross sections.
- Specification.
- WSB will utilize the standard City of Shakopee specification and details. Project-
specific items will be addressed in a special provision section, as well as a
supplementary general condition section.
. Permits
All necessary permits will be acquired as a part of the construction plan preparation. The cost of the
permits would be paid by the City of Shakopee.
. Project Bidding
Upon approval of the bidding documents by the City, WSB will distribute the necessary number of
plan sets to the City for distribution. WSB will bill the City for the expenses of the plan printing. If
requested, WSB will sell the plan sets to prospective bidders and will not refund that deposit to the
unsuccessful bidders. In this case, the City would not be billed for the plan printing.
. Construction Management/Observation
This will be addressed at the time the project is awarded.
. Record Drawings
These will be completed on a cost-reimbursable basis upon completion of the project.
Page 2 F:IWPWlN<PROPOSALISHAKOPEEIEXHA 1III03.DOC
i~' {J.
~ / ' (
'-, R 't U15e,()
RE~URSEMENTAGREEMENT
This Agreement is entered into as of November _, 2003, by and between the City of
Shakopee ("City") and Ryan Companies US, Inc ("Ryan").
RECITALS
A. Ryan has submitted a proposed development known as Dean Lakes pursuant to which
Ryan proposes to develop a mixed use development on property located in the Southeast
Quadrant of Highway 169 and County Road 83 ("Development").
B. In order to meet the infrastructure needs for the Development, the following Public
Improvements need to be constructed: See Exhibit A -- public improvements within the
plat of Dean Lakes including street construction, turn lanes, storm sewer, sanitary sewer,
watermain, street lighting, sidewalk and bituminous trail and appurtenant work ("Public
Improvements").
C. Ryan has requested that the City proceed with the engineering and design of the Public
Improvements and is willing to reimburse the City for the costs incurred by the City in
the design of the Public Improvements. Ryan acknowledges that but for its agreement to
reimburse the City for these costs, the City would not be proceeding with the design of
the Public Improvements.
D. The estimated cost for the design work for the Public Improvements is $225,000.00
In consideration of the mutual covenants conditions and provisions in this Agreement, the
City and Ryan agree as follows:
1. The Recitals are true and correct and are incorporated by reference into this Agreement.
2. The City is authorized to retain WSB & Associates to design the Public Improvements.
3. Ryan agrees to reimburse the City for 100% of the project costs incurred by the City in
designing the Public Improvements. For the purposes of this Agreement, the term "project
costs" includes all internal and out of pocket costs incurred by the City, including but not
limited to engineering, legal, and administrative expenses.
4. Simultaneously with executing this Agreement, Ryan shall submit to the City $225,000 in
cash or by a certified letter of credit approved by the city attorney made payable to the City
upon which the City may draw in the event Ryan defaults in any of its obligation under this
Agreement.
5. This Agreement is binding on the parties and their respective successors and assigns and
shall be governed by the laws of the State of Minnesota.
6. Ryan may terminate this Agreement for any reason by providing written notice of
termination to the City, provided however that Ryan will be responsible for reimbursing the
City for all project costs incurred up to the date that the City receives the written notice of
termination.
.
,
7. The invalidity or unenforceability of any provision in this Agreement shall not in any way
affect the validity or enforceability of any other provision, and this Agreement shall be
construed in all respects as if such invalid or unenforceable provisions had never been part
of the Agreement.
8. This Agreement constitutes the entire agreement between the parties concerning the
engineering and design of the project, and unless otherwise provided in this Agreement, any
other agreements or understandings, whether oral or written, with respect to such matters are
superseded and revoked. This Agreement may not be modified or amended except by a
writing signed by each party.
9. Nothing in this Agreement is intended to obligate the City in any way to approve, in whole
or in part, any aspect of the Dean Lakes development.
City of Shakopee
By
Its Mayor
By
Its City Administrator
By
Its City Clerk
Ryan Companies US, Inc.
By
Its
JJT -240356v 1 2
SH155-79
.
.
Exhibit A
Petition for Public Improvements
Dean Lakes
Shakopee, MN
Streets to be constructed as part ofthe 429 Public Improvements within Dean Lakes:
. Dean Lake Boulevard
. Dean Lake Trail
. Meadow Lane
J~ {). {
REIMBURSEMENT AGREEMENT
This Agreement is entered into as of November _, 2003, by and between the City of
Shakopee ("City") and Ryan Companies US, Inc ("Ryan").
RECITALS
A. Ryan has submitted a proposed development known as Dean Lakes pursuant to which
Ryan proposes to develop a mixed use development on property located in the Southeast
Quadrant of Highway 169 and County Road 83 ("Development").
B. In order to meet the infrastructure needs for the Development, the following Public
Improvements need to be constructed: See Exhibit A -- public improvements within the
plat of Dean Lakes including street construction, turn lanes, storm sewer, sanitary sewer,
watermain, street lighting, sidewalk and bituminous trail and appurtenant work ("Public
Improvements").
C. Ryan has requested that the City proceed with the engineering and design of the Public
Improvements and is willing to reimburse the City for the costs incurred by the City in
the design ofthe Public Improvements. Ryan acknowledges that but for its agreement to
reimburse the City for these costs, the City would not be proceeding with the design of
the Public Improvements.
D. The estimated cost for the design work for the Public Improvements is $225,000.00
In consideration of the mutual covenants conditions and provisions in this Agreement, the
City and Ryan agree as follows:
1. The Recitals are true and correct and are incorporated by reference into this Agreement.
2. The City is authorized to retain WSB & Associates to design the Public Improvements.
3. Ryan agrees to reimburse the City for 100% of the project costs incurred by the City in
designing the Public Improvements. For the purposes of this Agreement, the term "project
costs" includes all internal and out of pocket costs incurred by the City, including but not
limited to engineering, legal, and administrative expenses.
4. Simultaneously with executing this Agreement, Ryan shall submit to the City $225,000 in
cash or by a certified letter of credit approved by the city attorney made payable to the City
upon which the City may draw in the event Ryan defaults in any of its obligation under this
Agreement.
5. This Agreement is binding on the parties and their respective successors and assigns and
shall be governed by the laws of the State of Minnesota.
6. Ryan may terminate this Agreement for any reason by providing written notice of
termination to the City, provided however that Ryan will be responsible for reimbursing the
City for all project costs incurred up to the date that the City receives the written notice of
termination.
7. The invalidity or unenforceability of any provision in this Agreement shall not in any way
affect the validity or enforceability of any other provision, and this Agreement shall be
construed in all respects as if such invalid or unenforceable provisions had never been part
of the Agreement.
8. This Agreement constitutes the entire agreement between the parties concerning the
engineering and design ofthe project, and unless otherwise provided in this Agreement, any
other agreements or understandings, whether oral or written, with respect to such matters are
superseded and revoked. This Agreement may not be modified or amended except by a
writing signed by each party.
9. Nothing in this Agreement is intended to obligate the City in any way to approve, in whole
or in part, any aspect of the Dean Lakes development.
City of Shakopee
By
Its Mayor
By
Its City Administrator
By
Its City Clerk
Ryan Companies US, Inc.
By
Its
JJT-240356vl 2
SH155-79
Exhibit A
Petition for Public Improvements
Dean Lakes
Shakopee, MN
Streets to be constructed as part of the 429 Public Improvements within Dean Lakes:
. Dean Lake Boulevard
. Dean Lake Trail
. Meadow Lane