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Council Meeting Minutes December 13, 1994 Page 6 Council Business. continued The engineer's estimate on this project was $281,000. The bids contained a base bid and an "add-on" price for winter construction of the Phase I utilities. The "add- on" is an option requested by Rottlund to enable an earlier start. Utilities in the remaining portions will be installed next spring after soil corrections are completed. However, Rottlund has decided not to take advantage of the "add-on" price. Therefore, the bid for the project from Shield Construction would be $243,155.85 About 61 % of the cost is for sanitary sewer, watermain and storms ewer laterals within the plat and will be paid by Rottlund. The sanitary sewer and watermain outside of the plat and the storm sewer main line will be paid by the City. Rottlund will purchase the site next year after contamination has been remediated. Staff recommends the bid be awarded contingent upon obtaining a surety from Rottlund to pay the cost associated with the utility contract if Rottlund later decided not to proceed with the project. Rottlund would have 30 days to provide the surety. Benke asked that if the bid was approved without the "add-on" does that preclude that Rottlund could not change their mind. Proper confirmed that the arrangement provides for any changes by Rottlund. Gunderman asked if remediation issues delayed the project. Community Development Director Kevin Locke said Rottlund decided to go ahead with the bids to accelerate the construction process, however, they then decided to wait and not pay the premium. Locke feels it would be an extreme event, in terms of contamination, if Rottlund decided to not go ahead. The scenario relates to a small pocket of contaminated soil where the dry cleaners were located. The contaminated area has been removed and test samples sent to the EP A to determine the type of contamination. The primary action that the MPCA required for remediation is the removal of the source which was essentially performed. It is the City's expectation that the MPCA will determine the City has resolved the problem. This would then allow for the transfer of the site to Rottlund. Motion by Larson, seconded by Gunderman, to AWARD THE BID FOR BRIGHTON GREEN TOWNHOME UTILITIES, PROJECT 94-7, TO SIDELD CONSTRUCTION, CONTINGENT UPON NEGOTIATING AND EXECUTING AN AMENDMENT TO TIlE ROTTLUND DEVELOPMENT AGREEMENT AND OBTAINING A PERFORMANCE GUARANTEE IN A FORM ACCEPTABLE TO THE CITY MANAGER. 3 Ayes - 0 Nayes, Motion Carried. (Samuelson momentarily out of the room) Proper presented the agreements for the reconstruction of Silver Lake Road. The total estimated project cost is $4,740,433; the City responsibility would be $767,017. A breakdown of the City's costs shows $668,700 coming from the City MSA account and $98,317 from local funds. The City hopes to receive MnDot approval for the 3rd St./Wexford Heights Drive and Windsor Lane signals to qualify for Federal funding. If MnDot does not approve these systems; the local fund amount would increase to $159,250. MnDot may allow the City to use MSA funds for the storm sewer costs estimated at $62,849. If allowed, the MSA total will increase by $62,849 which is desirable for the City. Council Business I Brighton Green Townhomes Utilities Report 94-294 I Agreements for Reconstruction of Silver Lake Road Report 94-295 I