Agenda - Council - 06/13/2023 - Laserfiche WebLink

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The attached proposal from Bolton and Menk identifies the following not -to -exceed estimated costs. As noted on page 5 of the attached proposal, costs will be less if individual projects are combined and constructed as larger projects and not individually. • Design services costs for all identified improvements = $548,181 • Construction costs for identified 2023 improvements (not including streets and associated storm sewer, sidewalks, trails, sanitary sewer and watermain) _ $5,874,000 Construction -related services such as staking, administration, and observation are not included in the above design services cost estimate. When construction of the identified improvements occurs, a separate construction services proposal will be submitted by BMI. Proposed COR infrastructure project funding sources include; . TIF 14 Bonds (street, sidewalk and trail costs) . Stormwater Funds (stormwater management costs) • Sanitary Sewer Funds (sanitary sewer costs) . Watermain Funds (watermain costs) Finance Director Lund and the City's financial consultant, Ehlers, recommend using tax increment bonds for the approximate $7,000,000 of identified COR infrastructure improvements, which includes the HY-10 Ramsey Improvements (excluding municipal utilities) and the COR Infrastructure Improvements. Attached is a 15-year tax increment bond run provided by Ehlers. According to Ehlers, the City will have the annual $640,000 needed to make the necessary debt service payments due to increment generated by various developments within The COR. The 15-year bond term will expire before 2040. Issuing a tax increment bond requires increment to be available in the amount of 20% of the bond. The City does not currently have $7M in the TIF 14 district and the issuance of debt allows the city the flexibility to keep the current TIF 14 funds (approximately $2M for other improvements in the future). The issuance of debt is a cleaner process as it avoids the need for the set-up of internal loans from other funding sources, tracking these loans with not only pay back when increment becomes available, but also tracking interest. While bids were advertised, staff reviewed the required tree replacement process and costs per City code. In summary, the required mitigation will involve planting 174 trees, or paying $21,750 into the City Forestry Fund. According to the COR report, 210 trees will ultimately be planted in boulevard areas of COR streets, which will exceed the required mitigation. And if the City counts the trees to be planted in the Waterfront area, the number of trees planted would further exceed the required mitigation. Staff therefore does not anticipate paying any funds into the Forestry Fund for tree replacements. Attached to this case is a construction services proposal from Bolton & Menk at a proposed not -to -exceed fee in the amount of $7,075.00. City staff will inspect construction and process pay requests. Recommendation: Staff recommends alternative # 1. If the City Council decides to award the project, Bolton & Menk recommends awarding the contract to Reshetar Systems, Inc. in the amount of $287,000.00. Outcome/Action: Adopt Resolution #23-128 accepting bids and awarding a construction contract for Improvement Project #23-17; COR Tree Clearing.