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HomeMy WebLinkAbout2.B. Engineering and Public Infrastructure Installation ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Work Session Date: February 11, 2014 AGENDA ITEM: Engineering and Public Infrastructure AGENDA SECTION: Installation Discussion PREPARED BY: Dwight Johnson, City Administrator AGENDA NO Kim Lindquist, Community Development Director �i• j, ATTACHMENTS: Draft Policy; Minutes from Council Special APPROVED BY: Worksession 11-19-13; Preliminary Development Schedule RECOMMENDED ACTION: Discussion Item p ISSUE At the November 19,2013 City Council worksession, the Council discussed engineering and installation of public improvements for private development. There were several options reviewed;public engineering and private installation,public engineering and public installation, and private engineering and private installation.After discussion about the pros and cons of each option, the Council determined that they wanted to be flexible to assist developers but did not want to compromise the quality of the City's public infrastructure. Staff was directed to provide a draft policy that would be similar to the Woodbury policy for engineering and infrastructure. The policy attached has engineering for all public infrastructure to be conducted by the City. Installation of public infrastructure can be undertaken by the developer's agent, so long as certain conditions enumerated in the policy are met. HISTORY On July 2, 1996, the City Council approved a resolution adopting a public infrastructure installation policy relating to engineering and installation of public improvements. The policy clarified that"it is in the best interest of the City that all new streets and utilities added to the public system shall be designed and inspected by engineers employed by the City."There were five reasons for adopting the policy: 1. To ensure consistency and compatibility with the City's existing utility system. 2. To ensure consistency and compatibility with the City's Comprehensive Plan,including the Storm water Management Plan, the Sanitary Sewer Plan, the Potable Water System Plan, the Transportation Plan and its Wetland Management Plan. 3. To ensure maximum control by the City of system components that will ultimately be operated, maintained and reconstructed by the City. 4. To ensure quality construction acceptable to the City Standards. 5. To ensure that the City's tax dollars are not spent in educating numerous design personnel about City ordinances, standards and procedures. On May 12, 2010, the City Council discussed a request by Warren Israelson to allow hire to engineer and install infrastructure in the community,which would be inconsistent with the adopted public infrastructure policy. After discussion with the Council,it was determined that the City would not vary from the policy but would have staff work with Mr. Israelson to determine correct cost estimates and sureties. DISCUSSION At the November worksession, Council directed staff to draft a policy modification that would allow flexibility for private construction of public infrastructure. Modeled after the Woodbury policy, staff has provided draft language for the Council's review. This policy amendment would should be adopted and integrated into the current resolution on file pertaining to infrastructure installation.Additionally,if the Council would like to move forward, staff would work with the City Attorney to modify the standard development agreement and what the proper form would be for financial securities. Before embarking on the change, staff wants to ensure both planning and engineering understand the roles and responsibilities so we can properly convey the new process to developers. RECOMMENDATION Provide feedback regarding draft policy. After any additional modifications, staff will bring the item to the Council for formal action. 2 ROSEMOUNT DRAFT PUBLIC INFRASTRUCTURE POLICY Design, Construction and Construction Administration The design, construction and construction administration of public infrastructure necessary to serve new residential developments shall be completed as follows: A. Design. All public infrastructure improvements shall be designed by the City, either by City staff or its consultant(s),under the direct supervision of the City Engineer. Private design of public infrastructure improvements results in costly and duplicated review effort by the City with no corresponding benefit and lack of continuity if the design engineer changes during the project. B. Construction. Public infrastructure shall usually be constructed by the City through public bid and construction practices. However, at the City Administrator's sole discretion, developer(s) may be allowed to contract privately for the construction of public infrastructure improvements necessary to serve their development. Upon request, the City Administrator will evaluate a project's eligibility for private construction based on criteria that include but are not limited to: • Financial wherewithal of the developer to adequately secure the project and of the institution providing the security on the developer's behalf. • Type of security provided (i.e., letter of credit, cash escrow, third party agreement, etc.). • Developer's and/or contractor's prior experience and proven ability to successfully complete a similar project in Rosemount and/or other community including reference checks if necessary. • Ability to provide 2-year warranty bond. • Necessity of incorporating other benefitted properties into public improvement plans. • Evaluation of the overall development plan. • Size and phasing of the proposed development. • Other City-related issues. All terms and conditions under which the City would allow private construction will be memorialized in a Developers Agreement. Approval for developer-constructed infrastructure improvements for one development addition will not automatically grant the developer the right to complete future additions on that basis. Each addition will be evaluated independently based on satisfactory completion of the work, compliance with the Developers Agreement and criteria set forth within this policy. The City reserves the right to require all public improvements to be constructed publicly. If public trunk utilities are constructed privately, the area charge credit will not exceed the area charges for the Preliminary Plat or Planned Unit Development. C. Construction Administration. Construction administration for all public infrastructure improvements,including those constructed under private contract, shall be performed by City staff and/or consultant(s) under the direct supervision of the City Engineer. Construction administration includes but is not limited to inspection, documentation, pay requests, as-builts, surveying, field staking, testing and monitoring. ' CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA I i • RESOLUTION 1996 - ' A RESOLUTION ADOPTING AN IMPROVEMENT POLICY FOR PUBLIC INFRASTRUCTURE INSTALLATION • i WHEREAS, it is the City's responsibility to provide and ensure the public health, safety and welfare through the City's infrastructure including the sanitary sewer system, potable water system, storm water drainage system, transportation systems and related appurtenances. These facilities are owned, operated, maintained and ultimately reconstructed by the City which has enormous amounts of money invested in these systems. Because of these financial obligations it is important for the City to clarify the City's policy towards constructing new public improvements in developments, and WHEREAS, It is the policy of the City Council of the City of Rosemount that it is in the best interest of the City that all new streets and utilities added to the public system shall be designed and inspected by engineers employed by the City, hereinafter referred to as the "City Engineer", for the following reasons: 1. To ensure consistency and compatibility with the City's existing utility system. 2. To ensure consistency and compatibility with the City's Comprehensive Plan, including the Storm Water Management Plan,the Sanitary Sewer Plan, the Potable Water System Plan, the Transportation Plan and its Wetland Management Plan. 3. To ensure maximum control by the City of system components that will ultimately be operated, maintained and reconstructed by the City. 4. To ensure quality construction acceptable to City Standards. 5. To ensure that the-City's tax dollars are not spent in educating numerous design personnel about City ordinances, standards and procedures. WHEREAS, all plans and specifications for improvements will be prepared by the City Engineer or the Consultant designated by the City Engineer and there will be two options for which the developer and City Council may choose for actual construction of the improvements, which are listed within the policy. NOW THEREFORE BE IT RESOLVED, the City Council of the City of Rosemount adopts the IMPROVEMENT POLICY FOR PUBLIC INFRASTRUCTURE INSTALLATION". ADOPTED this 2nd day of July, 1996. Cathy Busho, Mayor ATTEST: Susan M. Walsh, City Clerk Motion by: . Second by: li Voted in favor: Voted against: ROSEMOUNT CITY COUNCIL SPECIAL WORK SESSION PROCEEDINGS NOVEMBER 19, 2013 2.B. Engineering and Public Infrastructure Installation City Administrator Johnson provided a summary of the staff report. He also provided his interpretation of a meeting that Mayor Droste had with a sales representative for Lennar. The representative claimed that the City caused delays in selling homes.Mr.Johnson stated that staff documented the approvals process with the developer and third party issues as provided in the packet.Mr.Johnson explained that the conversation with the sales representative lead to the question of whether the City should engineer projects or allow for private installation. Mr. Johnson also noted that staff has found a way to speed up the development process approximately two weeks. In the future,all bid openings that occur on Fridays will be added to the next Council meeting agenda for consideration.Council Member DeBettignies stated he was happy to see the process change as two weeks is valuable to developers. Mayor Droste provided information on the engineering and installation processes in Inver Grove Heights.He stated that in Inver Grove Heights the lowest bidder gets the project.City Attorney LeFevere noted that they use the lowest responsible bidder. Mayor Droste also provided information on the conversation with the sales representative from Lennar Homes. Community Development Director Lindquist explained that the delays in the process were due to utility work based upon a third party.Director of Public Works/City Engineer Brotzler added that the two month delay for Lennar's project may have been longer if city staff was not involved in the process as the project lead.City staff lead the resolution of property issues between Lennar and Arcon that was necessary to advance the project. Council Member Shoe-Corrigan stated she wanted to maintain the quality of work within the City. She stated she could support a hybrid method if it's feasible to offer on projects. Council Member Weisensel stated the City could have a design manual. Mr. Brotzler noted that the reality is that even with a design manual for private developer engineers to follow,you still often do not receive plans that meet city standards. This was noted as an issue that led the City of Woodbury to bring the design of development projects back into the city. He stated that the Woodbury model has the city design the project but allows for the developer to hire their own contractors with city permission. Ms. Lindquist stated that we should not assume the only reason developers and builders are not coming here is because of the current practice. She explained that developers are given a timeline when they meet with staff before a project is given full approval. Council Member Shoe-Corrigan understood that it was good to have options for developers but questioned what is reasonable and what staff thinks needs to be done to maintain the city's quality in design. Ms. Lindquist stated that the city does have standards in place for installing infrastructure. Mayor Droste expressed frustration over the city requesting as-built surveys before a certificate of occupancy is issued. Ms. Lindquist explained the process for having the as-built in place before sod is installed to prevent any drainage issues.Further discussion was held on the background for establishing the policy.Mr. Brotzler stated that once the sod is installed it is hard to fix the grading and drainage issue.Often times,homeowners expect the city to fix those drainage issues which has consumed a lot of staff time. Council Member Shoe-Corrigan stated that without the policy it would be very easy for the residents to blame the city. City Administrator Johnson suggested that the policy be discussed at a different time separate from the current issue. Mr.LeFevere stated he has worked in cities that have used both practices for design and installation work.He noted that there will still be contention with projects if the developers install because the city will deal only with the developer and not the contractors. The city will need protection which requires developers to submit a performance bond.He provided experiences he has held in working in other cities. He also provided information on using special assessments. Council Members Shoe-Corrigan,Demuth and DeBettignies supported creating some accommodations if the circumstances for a specific project allow for it. Council Member Weisensel stated that staff should let developers know the options for moving forward.He wanted the information provided upfront.Mr. Brotzler explained that the first conversation with developers on a project includes creating a schedule.He added that the city staff is proactive and has great relationships with the developers.Discussion was held about getting the message out to the public about how infrastructure is built and the process. Mr.Brotzler stated that staff could provide and expand on a sample timeline that could be included on the website. Staff was directed to start exploring communication ideas and develop some hybrid options for moving forward. 4 ROSEMOUNT _ _ _ _ „ P.rtiim nary Development Se uIe Design to construction of basic project is approximately eleven weeks. Mass grading is concurrent with city schedule. Enter Beginning Date _ - Grading Plan Approval and Grading Permit Site Grading Begins Begin Design Begin Final Design(5 weeks)-Developer Payment of City Fees City Council Action: Order Project/Authorize the Prep of Plans and Specs /Subdivision Agreement/Petition&Waiver Site Grading Completed and Certified with City 5 Weeks Receive Plans and Specs/Ratify AFB Advertisement for Bids-Independent Town Pages&Finance&Commerce(10 day advertisement) 2 Weeks Bid Opening 1 Week City Council Action: Receive Bids/Award Contract* 2 Weeks Preconstruction Meeting 1-2 Weeks Begin Construction of City Contract 1-2 Weeks *Construction could begin approximately 2 weeks earlier by allowing bids to be presented at the Council meeting C:\Users\kjhtAppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\OIOX5PM4\Copy of Preliminary Development Schedule