Agenda - Council - 05/26/2015 - Laserfiche WebLink

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lour 1111.1siion: To work together to reiposihty grow our community, and to provide quality, coat -effective, and efficient government ierrlcas. CC Regular Session 7. 1. Meeting Date: 05/26/2015 By: Bruce Westby, Engineering/Public Works Information Title: Approve draft Assessment Agreement for Ridgepoint Residential Development Improvements, Improvement Project 15-21 Purpose/Background: Purpose: The purpose of this case is to approve the draft Assessment Agreement that provides for repayment of City funds used to construct proposed Ridgepoint seven (7) unit single-family residential development improvements, Improvement Project #15-21. Background: Village Bank owns the real property upon which the Ridgepoint seven (7) unit single-family residential development is proposed to be constructed, and has requested the City of Ramsey to construct the required stage 1 and stage 2 improvements for the Ridgepoint development. Village Bank will then repay the City over a period of three (3) years per the attached draft Assessment Agreement (Exhibit 1). Village Bank is not comfortable funding construction of the required improvements themselves due to certain regulatory language that prohibits banks from speculating in real estate. Village Bank utilized the engineering consulting firm of Hakanson Anderson to complete the final design and to prepare plans and specifications for the proposed Ridgepoint development improvements. Staff has preliminarily reviewed the plans and specifications and considers them to be acceptable for constructing the proposed development improvements, though staff has not yet completed a thorough examination of the estimated quantities and costs. The Engineer's estimate based on the final plans and specifications totals $482,222. The draft Assessment Agreement was developed by the City Attorney and was subsequently reviewed and approved by Village Bank. The final Assessment Agreement, which will require City Council approval through an adopted resolution, will incorporate the actual bid prices and will therefore be presented to Council for approval immediately before Council is asked to accept bids and award a contract for Improvement Project #15-21. Staff will recommend adding a contingency cost to the bids to help ensure the assessments identified in the final Assessment Agreement will be adequate to cover final construction costs. On Tuesday, May 19th, the Public Works Committee reviewed the draft Assessment Agreement with Staff and representatives from Village Bank and unanimously voted to recommend Council approval of the draft agreement as attached. If the Council has questions or concerns related to specific terms and conditions of the draft Assessment Agreement, Finance Director Lund and a representative from the City's financial consultant, Ehlers & Associates, will be available to address such questions. Representatives from Village Bank will also be available to answer