HomeMy WebLinkAbout15.C.5. Reimbursement Agreement with Tollefson Development, Inc. and Extensions Agreement with WSB & Associates
jS,C.S;
CITY OF SHAKOPEE
Memorandum
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
SUBJECT: Authorize Reimbursement Agreement with
Tollefson Development, Inc. and Authorize an
Extension Agreement with WSB & Associates, Inc. for the
Design of 1 ih Avenue, from CSAH 15 to C.R. 79
DATE: August 17, 2004
INTRODUCTION:
Attached is a reimbursement agreement between Tollefson Development, Inc. and the
City of Shakopee for the design of 1 ih Avenue, from CSAH 15 to C.R. 79, as prepared
by the City Attorney. Also attached is an extension agreement from WSB & Associates,
Inc. for the preparation of plans for 17th Avenue, from CSAH 15 to C.R. 79. These
agreements are for Council consideration in moving forward with the design to provide
information associated with the Countryside Development by Tollefson Development
and the new high school and possible secondary school for Independent School District
(IS D) #720.
BACKGROUND:
Tollefson Develorment, Inc. has submitted several concept plans for their 170 acres of
land abutting Ii Avenue, from CSAH 15 to C.R. 79. An EA W is currently being
prepared for this proposed development, which consists of single-family residential land
use. Also adjacent to 17th Avenue, from c.R. 77 to C.R. 79, is a proposed new high
school by ISD #720. In meetings with the developer, school district, staff and their
design teams for the new high school, staff is recommending that 17th A venue be
designed by a City consultant, WSB & Associates, Inc. A set of plans would be done to
meet State Aid requirements, Scott County and MnlDOT approval, coordination with
Shakopee Public Utilities Commission (SPUC) and the City of Shakopee, as well as
coordinate 1 ih A venue design between the two developments being Countryside
Development and the new high school for ISD #720.
Attached is a reimbursement agreement for the design of 1 ih Avenue with Tollefson
Development, Inc. During the design phase and also during the platting stage of the
proposed development, a reimbursement agreement and the developer's agreement will
need to address participating costs between the City and Tollefson Development for the
construction of 1 ih A venue. The City will also then enter into an agreement between the
City and the County for cost participation of work associated with the 17th Avenue
improvements. The extension agreement, that is attached from WSB & Associates, Inc.,
does describe the approach and tasks associated with the design of the improvements and
the coordination needed between the City, County, SPUC, developer, MnlDOT and ISD
#720. Part of this process is cost split calculation for funding sources participation
between the City, County and developer.
It is proposed that the City consultant will design this roadway and the developer will
construct the roadway with their financing and their contractor. The City will then enter
into a developer's agreement and/or reimbursement agreement with the developer on cost
sharing for 1 ih Avenue. The exact cost participation between the developer, City and
County will be worked on as part of the design proposal and will be brought back to the
City Council at a future Council meeting.
Also, included in this memo for Council information and review on this item are the
following:
1. Letter dated July 23, 2004 from Mike Bur1ager, ISD. #720, Business Services
Manager.
2. Letter dated August 10,2004 from Jon McBroom, ISD. #720 Superintendent.
3. Letter dated July 28, 2004 from Matthew Weiland, Vice President of Tollefson
Development, Inc. requesting the design of 1 ih Avenue.
4. Concept drawing of Countryside Development.
ALTERNATIVES:
1. Authorize the appropriate City officials to enter into a reimbursement agreement
with Tollefson Development, Inc. and the City of Shakopee for the design of 17th
Avenue, from CSAH 15 to CR. 79.
2. Do not enter into a reimbursement agreement with the developer at this time.
3. Authorize the appropriate City officials to enter into an extension agreement with
WSB & Associates, Inc. for the design of 17th Avenue, from CSAH 15 to C.R. 79.
4. Do not enter into an extension agreement with WSB & Associates, Inc. at this
time.
5. Table for additional information.
RECOMMENDATION:
Staff recommends Alternative No. 1 and No.3, as the developer has agreed to have the
City's consultant design 17th Avenue, from CSAH 15 to CR. 79 and agreed to pay all
costs. This roadway design is necessary for development to be completed and to meet the
time line and schedules for the construction ofthe new high school by ISD #720.
ACTION REQUESTED:
1. Authorize the appropriate City officials to enter into a reimbursement agreement
with Tollefson Development, Inc. and the City of Shakopee for the design of 1 ih
Avenue, from CSAH 15 to C.R. 79.
2. Authorize the appropriate City officials to enter into an extension. agreement with
WSB & Associates, Inc. for the design of 1 ih Avenue, from CSAH 15 to C.R.
79.
!le:w~
Public Works Director
BUpmp
ENGRJ2005PROJECT/17THA VENUElWORD/DESIGN
August 12,2004
Mr. Bruce Loney, P.E.
Public Works Director/City Engineer
City of Shakopee
129 Holmes Street South
Shakopee, MN 55379-1376
Re: Extension Agreement for Professional Services
Estimate of Cost to Provide Engineering Services
17th A venue Extension from County Road 79 to County Road 15
WSB Project No. 1566-06
Dear Mr. Loney:
According to our Agreement for Professional Services within the City of Shakopee 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 A.
The attached work plan describes the approach and tasks proposed to be completed by WSB. It
should be noted that the work plan includes engineering design for roadway plans, storm sewer
plans, sanitary sewer plans, and water main plans. This cost assumes that the design survey
work is complete and no Feasibility Report will be required. Soils information will be provided
by Tollefson Development and from previous construction and adjacent developers. Any
additional soil borings will be considered additional services. WSB will collect topographic
information from the adjacent developers for development of base maps. Should insufficient
data be available, design surveys will be conducted to collect any additional data required at an
additional cost on a cost-reimbursable basis as necessary in accordance with our current fee
schedule. It is further understood that the City of Shalcopee will provide the construction
observation and material testing during construction.
Weare proposing to complete this work as described in the design services on a cost-
reimbursable basis in accordance with our current fee schedule based on an estimated $2.2
million to $2.5 million in construction costs. Payment of services for the design phase is
estimated between $165,000 to $187,500. It is proposed that all work under the design portion
of the contract would be considered complete after the preconstruction conference.
Construction management and construction survey services could be initiated after the
preconstruction conference if so requested by the City.
Weare available to begin work 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
on August 17, 2004.
C:\Documents and SettingsIBLoneylLocal Settings\Temporary Internet Files \OLK4D3 \081204-bl.doc
Mr. Bruce Loney, P.E.
Shakopee, MN
August 12, 2004
Page 2
We would propose to complete the project according to a tentative schedule noted as follows:
Approval extension agreement ............................................................................ August 17,2004
Commence work ..................................................... ....... ........................... .......... August 18, 2004
Submit plans to MnDOT & Scott County for review ........................................October 29,2004
Receive final plans specs approval ............................................................... December 10, 2004
(assuming 3-week review time by MnDOT)
Approve plans & specifications ..................................................................... December 21, 2004
The City of Shakopee 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,
WSB & Associates, Inc.
Donald W. Sterna, P.E. City Administrator
Vice President
City Clerk
Mayor
Date
C:\Documents and SettingsIBLoneyILocal SettingslTemporary Internet Files IOLK4D3 \081204-bl. doc
Exhibit A
Scope of Services
17th Avenue Extension from
County Road 79 to County Road 15
City of Shakopee, MN
WSB Project No. 1566-06
WORK PLAN
1. Project Management
This task includes planning and coordination of all work tasks, establishment and monitoring of
budgets, and correspondence with the City of Shakopee, Scott County, S.P.U.C., Independent
School District #720, Mn/DOT and Tollefson Development 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. Don Sterna is proposed to manage the project for WSB & Associates, Inc.
(WSB).
2. Data Collection
Available data will be collected from the City, Scott County, Mn/DOT, private utility companies,
and adjacent developers as necessary, to prepare the construction documents.
3. Soils Report
Soils information will be provided by Tollefson Development and from previous construction and
adjacent developers. Any additional soil borings will be considered additional services.
4. Construction Plan
The construction plans 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 in the preliminary layouts from Scott
County, IDS #720 and Tollefson Development plans, includes the following activities:
- Surface improvements including all street-related issues on 17th A venue, County
Roads 79, 77 and 15.
- Laterial and trunk storm sewer design.
- Waterrnain and sanitary sewer design.
- Agency coordination with City, County, SPUC, Developer, Mn/DOT, and School
District.
- Cost split calculation for funding source participation (City, County, Developer,
and School District).
- 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.
Exhibit A - Design Services Page 1 C:\DOCUMENTS AND SEITINGSlBLONEYiLOCAL SEITINGSITEMPORARY INTERNET
FlLESlOLK4D3\/7TH AVE (CR 79-/5) EXHA/.DOC
- Preparation of cross-sections at 50-foot intervals.
- 50-scale plan and profile sheets for street construction, and roadway storm sewer
construction.
- Erosion control/landscaping.
- Streetscaping (if required).
- Construction staging and traffic control.
- Sanitary sewer plans.
- Watermain plans.
- Storm sewer plans.
- Signing and Striping plans.
- 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.
5. Design Survey
WSB will collect topographic information from the adjacent developers for development of base
maps. Should insufficient data be available, design surveys will be conducted to collect any
additional data required at an additional cost on a cost-reimbursable basis as necessary in
accordance with our current fee schedule.
6. 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.
7. Project Bidding
Upon approval of the bidding documents by the City, WSB will distribute the necessary number of
plan sets to the developer 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 developer would not be billed for the plan
printing.
Exhibit A - Design Services Page 2C;\DOCUMENTS AND SETTINGSIBLONEYlLOCAL SETTINGSlTEMPORARY INTERNET
FILESIOLK4D3117TH AVE (CR 79-15) EXHAI.DOC
~
WSB 2004 Rate Schedule
& Associates. Inc.
Billing
Rate/Hour
Principal $116.00
Associate $109.00
Sr. Project Manager $101.00
Project Manager/Engineering Specialist III $91.50
Registered Engineer/Engineering Specialist II $82.50
Project Engineer/Engineering SpecialistUSr. Construction Observer $74.00
Graduate Engineer $65.00
Construction Observer $67.00
Engineering Technician IV/Scientist III $60.50
Engineering Technician IIUScientist II $55.00
Engineering Technician IUScientist I $49.00
Engineering Technician I $43.00
Office Technician II $53.00
Office Technician I $29.50
Registered Land Surveyor $103.00
Survey (Two-Person Crew) $122.00
Survey (Three-Person Crew) $145.00
GPS Equipment $39.00
All costs associated with word processing, vehicle mileage, cell phones, reproduction
of common correspondence and mailing are included in the above hourly rates.
Reimbursable expenses include costs associated with plan, specification and report
reproduction, permit fee, delivery cost, etc.
Rate Schedule is adjusted annually.
REIMBURSEMENT AGREEMENT
This Agreement is entered into as of August _, 2004, by and between the City of
Shakopee ("City") and Tollefson Development Inc. ("Tollefson").
RECITALS
A. Tollefson has submitted a proposed development, known as Countryside Addition,
("Development") pursuant to which Tollefson proposes to develop approximately 172
acres of residential property located between CSAH 15 and CSAH 79 and south of
Trunk Highway 169.
B. In order to meet the infrastructure needs for the Development, the following Public
Improvements need to be constructed: (1) approximately one mile of 17th Avenue; and
(2) the extension of sanitary sewer, storm drainage system and watermain.
C. Tollefson has requested that the City proceed with engineering and design of the Public
Improvements and Tollefson is willing to reimburse the City for the costs incurred by
the City in the design of the Public Improvements. Tollefson acknowledges that but for
its agreement to reimburse the City for these costs, the City would not be proceeding
with the design ofthe Public Improvements.
E. Tollefson has also proposed to provide the easements necessary to construct the Public
Improvements within the Development.
F. The estimated cost for the design work for the Public Improvements is $187,500.
In consideration of the mutual covenants conditions and provisions in this Agreement, the
City and Tollefson 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. Tollefson 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 costs incurred by the City, including engineering and legal fees, and any
administrative expenses. Tollefson shall make payment to the City within ten days after the
City has provided a written invoice to Tollefson.
4. Simultaneously with executing this Agreement, Tollefson shall submit to the City $187,500
in cash or a certified letter of credit approved by the City Attorney made payable to the City
upon which the City may draw if Tollefson defaults in any of its obligations under this
Agreement.
JJT-251836vl
SH155-23 1
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. Tollefson may terminate this Agreement for any reason by providing written notice of
termination to the City, provided however that Tollefson will be responsible for reimbursing
the City for all project costs incurred up to the date that the City receives 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.
CITY OF SHAKOPEE
By
Its Mayor
By
Its City Administrator
By
Its City Clerk
TOLLEFSON DEVELOPMENT INC.
By
Its
JJT-251836vl
SH155-23 2
July 23, 2004
Mark McNeill
City of Shakopee
129 South Holmes Street
Shakopee, Minnesota 55379
Re: Independent School District #720
Shakopee New High School
Dear Mark:
Please deliver this letter to the City Council.
The School District has had a number of previous dialogues with City (and the
County staff), both prior to and after the passage ofthe February 17,2004 bond
referendum for a new high school. The District is currently at a point in our design
development that we need significant input on the design of the infrastructure as it
relates to the high school development on our 96 acre site.
Key issues include, but are not limited to, the following:
1. The design profile and entrance locations and configurations for 17th
Avenue.
2. Regional storm water management concerns which may influence our
storm water design.
3. Sanitary design, connections and over-sizing to accommodate future city
development in the areas surrounding our site.
4. Surrounding infrastructure for pedestrians and impacts to our site.
We are sure that the Council is aware of the School District's need to occupy the
new high school beginning in 2007, and therefore recognizes the need to begin
school construction as early as possible in 2005. The size of our development
requires the District to go through the E.A.W. process, as well as the City's
conditional use and planning process, the duration of which is approximately five
to six months.
Without answers to these infrastructure questions and continued cooperation
through the planning and approval process, we cannot begin that process and may
face delays to the District's complex construction and occupancy schedule.
We look for you to authorize whatever actions necessary including beginning
design for 17th A venue to support City staff in planning this facility together with
us to meet the voter's expectations.
You consideration of this request is greatly appreciated.
Thank you.
Sincerely,
Mike Burlager
Business Services Manager
cc: Jon McBroom, ISD #720
Scott McQueen, Wold Architects
KP/ISD _720/9999/july04
~~_@U2)~~ Superintendent:
Jon McBroom
Business Manager:
PUBLIC SCH Mike Burlager
Human Resources Manager:
Shaleen Roth
District Office
Mr. Bruce Loney
Public Works Director
City of Shakopee
129 Holmes Street South
Shakopee, MN 55379-1376
August 10,2004
Dear Mr. Loney,
District 720 has reviewed the proposed plan for the engineering and construction of 1 ih
Ave. including costs and timeline. The only concern we have at this point is with the
early portion of the timeline. The dates suggested in the tentative schedule really
challenge our schedule for getting our project to bid on time. We need to finalize our
design based on the road and water decisions. If anYthing can be done to move the
plannirig and approval process along quicker it would be on significant benefit to us. The
actual construction of 17th is not critical to our bid timeline.
We appreciate the opportunity to comment on this proposal and the support given our
project by you and City staff.
Respectfull y,
~c/frzJ~
Jon McBroom
Superintendent
505 South Holmes · Shakopee, MN 55379 ALL SCHOOLS ACCREDITED BY THE NORTH CENTRAL ASSOCIATION
(952)496-5101- fax: (952)445-8446 AN EQUAL OPPORTUNITY EMPLOYER
TTY: (952)496-5006
Developers . Land Investment . Property Managers
July 28, 2004
Bruce Loney, Shakopee City Engineer
City of Shakopee
129 South Holmes St
Shakopee, MN
55379
Re: I ih Ave Street Design and Cost Reimbursement Agreement
Dear Mark-
Tollefson Development is formally requesting the City of Shakopee authorize WSB to
start the design work for 1 ih Ave between County 79 and County Rd 15. The extension
of 1 ih Ave through our property is a vital road connection for our project, the new high
school and the City of Shakopee, MN. The design work is needed in order for our
project and the High School project to move forward. Tollefson Development
understands it will be responsible for the cost ofthe design work and will sign a
reimbursement agreement to this effect.
Tollefson Development is also formally requesting that the City and County cost share in
the construction of 1 th Ave. We our requesting a similar reimbursement agreement as
was used on the portion of 17th ave we constructed as part of the Philips Addition. We
would like to sign a reimbursement agreement signed as soon as possible. Tollefson
Development looks forward to working with the City on this project.
Sincerely,
17271l<enyon Ave., Suite #103 · Lakeville, MN 55044 · Phone (952) 435-1010. FAX (952) 435-1020
North Metro Office: Phone (763) 571-6600. FAX (763) 571-6603
Email - info@tdi-mn.com . www.tdi-mn.com
I
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