Plastic Ctr & Alliant, Asbury Rd Widening Agreement
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MEMORANDUM
July 13, 2006
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Consideration of Approval for City Manager to Negotiate and Execute an
Agreement with Plastic Center Inc. and a Utility Relocation Agreement
with Alliant Energy for the Asbury Road Eastbound Thru-Lane Widening
Project
On December 19, 2005, the City Council approved the PUD and Conceptual
Development Plan for the Sam's Club development at the Northwest Arterial and
Asbury Road, and provided that Asbury Road will be improved with an additional
eastbound thru-Iane from the Northwest Arterial/Asbury Road intersection to the new
access serving the Sam's Club property. The City will construct the additional
eastbound thru-Iane according to prevailing City standards and specifications for such
improvements, utilizing funds placed on deposit by Wal-Mart Stores, Inc. for that
purpose under the terms of an escrow agreement entered into between Wal-Mart
Stores, Inc. and the City.
City Engineer Gus Psihoyos recommends City Council authorization to negotiate and
execute an agreement with Plastic Center Inc. and Alliant Energy to facilitate public
improvements for the construction of the Asbury Road Eastbound Thru-Lane Widening
Project that would make Plastic Center Inc. responsible for up to $115,000 to
accomplish the construction of the additional lane and for additional work required to
accommodate future development of their site. This is within the estimate for this work;
however, if it exceeds that amount, it will be shared equally by Plastic Center Inc. and
the City.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Gus Psi hoyos, City Engineer
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MEMORANDUM
July 13, 2006
FROM:
Michael C. Van Milligen, City M~an~g. er.
Gus Psihoyos, City Engineer
, -_.~ .
Consideration of Approval for the City Manager to Negotiate and
Execute an Agreement with Plastic Center Inc. and a Utility
Relocation Agreement with Alliant Energy for the Asbury Road
Eastbound Thru-Lane Widening Project
TO:
SUBJECT:
INTRODUCTION
The purpose of this memorandum is to recommend that the City Manager request City
Council consideration and authorization to negotiate an agreement with Plastic Center
Inc. and Alliant Energy to facilitate public improvements for the construction of the
Asbury Road Eastbound Thru-Lane Widening Project.
BACKGROUND
Ordinance No. 69-05, adopted by the City Council on December 19, 2005, approved the
PUD and Conceptual Development Plan for the Sam's Club development at the
Norwest Arterial and Asbury Road. The Ordinance provided in part that Asbury Road
will be improved with an additional eastbound thru-Iane from the Northwest
Arterial/Asbury Road intersection to the new access serving the Sam's Club property.
The City will construct the additional eastbound thru-Iane according to prevailing City
standards and specifications for such improvements, utilizing funds placed on deposit
by Wal-Mart Stores, Inc. for that purpose under the terms of an escrow agreement
entered into between Wal-Mart Stores, Inc., and the City.
DISCUSSION
The City has hired Buesing & Associates to complete the engineering design services
for the Asbury Road Eastbound Thru-Lane Widening Project. Preliminary design plans
for the east lane widening will require the southerly curb line to be constructed within
approximately one (1) foot from the existing right-of-way line and the Plastic Center Inc.
property line. We would prefer to avoid construction so close to the Plastic Center Inc.
property line, which will require acquisition of property from Plastic Center Inc. and will
require a temporary construction access easement from Plastic Center Inc. to place
embankment fill, perform grading, storm sewer construction and utility relocations.
The construction of the new Asbury Road-Sam's Club entrance will also require the
installation of traffic signal equipment and fiber optic interconnect to the Northwest
Arterial signals. The traffic signal equipment will be placed directly across from the
Sam's Club entrance, south of the Asbury Road eastbound thru-Iane which is located
on Plastic Center Inc. property. As a result, this will require acquisition of additional
property from Plastic Center Inc.
Current utilities (gas, phone & cable) that are located within the City right-of-way will
need to be relocated outside of the proposed pavement footprint for the Asbury Road
eastbound thru-Iane widening. Because the new east lane will be constructed within
approximately one (1) foot of the existing southerly property line, additional public right-
of-way will need to be acquired for the placement of the relocated utilities.
Since Alliant Energy utilities are located within its own private utility easement on a
portion of Plastic Center Inc. property and directly adjacent to City right-of-way, all costs
associated with relocating Alliant utilities will be an additional project expense.
Through the preliminary project development phase, City staff has had several meetings
with representatives from the Pfohl family and Alliant Energy to review the project and
discuss the many coordination issues. Through these discussions it was suggested that
a partnership between the City and Plastic Center Inc. could present significant benefits
to both parties by eliminating additional project costs for property acquisition and
temporary easements and by coordinating construction and utility work to minimize
future reconstruction and relocation costs to Plastic Center Inc. at such a time when its
site is developed. Subsequent negotiations between the City and Plastic Center Inc.
have lead to the following terms and conditions.
Plastic Center Inc. has agreed to contribute $115,000 toward the project and to provide
the City with all necessary property and temporary construction access easement rights
at no additional cost to the City for the installation of traffic signal equipment, placing
embankment fill, performing grading, storm sewer construction and utility relocations.
Any of the $115,000 contribution not required for the project will be refunded to Plastic
Center Inc.
City staff has worked with Alliant Energy to develop a Utility Relocation Agreement
which will allow for the relocation of switchgear, and associated electrical equipment,
currently located within Alliant's private easement, relocating the utilities further to the
south and outside the proposed project limits. The cost to relocate Alliant facilities is
estimated at $125,000.
Plastic Center Inc. has agreed to provide Alliant Energy with a new easement to
facilitate the utility relocation and to operate, reconstruct, maintain and access its
switchgear, and associated electrical equipment following relocation, and to install
additional electrical facilities thereon as required.
Additional discussions have occurred regarding relocating the utilities and placement of
the traffic signal equipment an additional 24 feet to the south so that they will not be
impacted by the construction of a future right turn lane into the Plastic Center Inc.
property when that development occurs. As the preliminary design plans are developed,
staff will continue to work with representatives from the Pfohl family, Alliant Energy and
the other impacted utilities to determine what improvements can be made with the
available funding to accommodate the future development of the Plastic Center Inc.
property.
The current estimate of probable costs for the Asbury Road Eastbound Thru-Lane
Widening Project is summarized as follows:
Total Construction Cost
Estimate
$119,500
18,000
14,650
12,000
~ 164,150
Construction Cost
Contingency
Design Engineering - Buesing & Associates
Construction Engineering & Inspection
Traffic Signal Controller Relocation
Alliant Energy Utility Relocation
Total Project Cost
35,000
125,000
$ 324,150
Pursuant to the escrow agreement between the City and Wal-Mart Stores, Inc. for the
Sam's Club development, Wal-Mart Stores, Inc. agreed to provide $250,000 to cover all
costs associated with the Asbury Road Eastbound Thru-Lane Widening Project,
including but not limited to the costs for land acquisition, design, engineering, utility
relocations, construction and inspection. With the Plastic Center Inc. offer to contribute
$115,000 toward the project, the total project budget is now $365,000. The current
project cost estimate is $324,000, leaving a reserve contingency of $41,000, or
approximately $59,000 when including the $18,000 for construction contingency. Any
remaining funds of the $115,000 contribution would be refunded to Plastic Center Inc.
In consideration of the agreement with Plastic Center Inc., the City has agreed to share
equally with Plastic Center Inc. any additional project costs above the budget amount of
$365,000.
RECOMMENDATION
I recommend that the City Manager request City Council authority to negotiate an
agreement with Plastic Center Inc. and approve the Utility Relocation Agreement with
Alliaint Energy. The agreements will result in benefits to all participating parties in
facilitating the public improvements for the construction of the Asbury Road Eastbound
Thru-Lane Widening Project.,
ACTION TO BE TAKEN
I recommend that the City Council authorize the City Manager to negotiate an
agreement in a form acceptable to the City Manager in all respects with Plastic Center
Inc. and Alliant Energy for the construction of the Asbury Road Eastbound Thru-Lane
Widening Project.
Prepared by Robert Schiesl, Assistant City Engineer
cc: Barry Lindahl, City Attorney
Dawn Lang, Budget Director
Ron Turner, PLS
Dave Ness, Civil Engineer
Tony Pfohl, Plastic Center Inc.
Joe Mauss, Alliant Energy
Ken Buesing, Buesing & Associates