HomeMy WebLinkAbout4.C.2. Approve a Cost Reimburement Agreement with O'Brien Developoment and Holding Company , LLC for Concrete Alley Consent Business 4. C. 2.
SHAKOPEE
TO: Mayor and City Council
FROM: Bruce Loney, Public Works Director
DATE: 09/15/2015
SUBJECT: Approve a Cost Reimbursement Agreement with O'Brien Development
and Holding Company, LLC for Concrete Alley (D,E)
Action Sought
Authorize the appropriate city officials to execute the attached Addendum to
Right-of-Way Permit with O'Brien Development and Holding Company LLC for a
Concrete Alley by the Public House.
Background
Scott O'Brien of O'Brien Development and Holding Company, LLC is combining
lots for a Public House restaurant development off of Spencer Street and CR 101. A
drainage issue has been identified with the site and the area.
In order to properly handle the drainage, a concrete alley with an inverted crown, is
needed to provide a system to drain away from the Public House Building.
In the City's assessment policy, improved alleys in the Central Business District are
to be assessed 25% and the City's share is 75%. Staff has been working with Mr.
O'Brien and his engineer on a design and associated costs of the improvements.
Staff along with the city attorney has prepared an Addendum to Right-of-Way
Permit for Alley Reconstruction for the City's reimbursement cost. The City would
pay 100% of storm sewer work in the alley and 75% of the alley. The funding for
the work would come from the Surface Drainage fund.
The work would be done by the contractor for the O'Brien Public House and under
a right of way permit by the City. This addendum is the mechanism for the City of
reimburse the developer.
Recommendation
Staff recommends approval of the Addendum Right-of-Way Permit for Alley
Reconstruction as constructing a concrete alley now before the Public House is
open will be less disruptive. Also the drainage of the area can be directed away
from the building.
Budget Impact
The improvement affects the Surface Drainage Fund. Current estimates for concrete
alley is $22,500 and Storm Sewer work is $8,000 so the estimated cost to the city is
$24,875.00.
Relationship to Vision
This supports Goals D & E: Maintain, improve and create strong partnerships with
other public and private sector entities; and Deliver effective and efficient public
services by a staff of well-trained, caring and professional employees.
Requested Action
Authorize the appropriate city officials to execute the attached Addendum to
Right-of-Way Permit with O'Brien Development and Holding Company LLC for a
Concrete Alley by the Public House.
Attachments: Plans
addendum agreement
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Addendum to Right of Way Permit for Alley Reconstruction
1. The applicant shall do all of the work according to the plans and
specifications approved by the City's public works director.
2. The City will reimburse the property owner for 75% of the construction
costs of the concrete work.
3. The City will reimburse the property owner for the construction cost of the
storm sewer pipe and manholes within the alley.
4. The property owner will be responsible for all other costs associated with the
work.
O'Brien Development and Holding Company, LLC
By
Its
City of Shakopee
By
Its Director of Public Works
467872v1 JJT SH155-23