HomeMy WebLinkAboutA036 - Council Action Form dated April 27, 2010 with copy of temporary construction easement ITEM # 39
DATE: 04-27-10
COUNCIL ACTION FORM
SUBJECT: SHARED USE PATH SYSTEM EXPANSION (FROM CHRISTOPHER
GARTNER PARK TO AMES MIDDLE SCHOOL)
BACKGROUND:
On February 9, 2010, City Council approved an alternative shared use path alignment
from Christopher Gartner Park through the Estates of Nature's Crossing and South Fork
subdivisions to the Ames Middle School, and directed staff to draft a supplemental
project agreement with The Estates of Nature's Crossing Subdivision developer that
details the work to be performed and the shared funding arrangements.
The developer has agreed to install or pay for all costs with the exception that the City
will pay a set amount of $14,000. This amount approximates a three-way split of the
costs of that segment between the City, the Estates of Nature's Crossing developer,
and the South Fork Subdivision owner. This arrangement will enable the construction of
this eastern segment to occur prior to the development of South Fork Subdivision. A
project agreement that details those provisions has been developed and is attached.
This agreement calls for the developer to submit a letter of credit to secure the financing
of construction, engineering, and construction inspection expenses. The developer has
informed the City that this Letter of Credit will be submitted on or shortly after April 28,
2010. Therefore, approval of the agreement and award of the construction contract are
contingent upon receipt of the Letter of Credit.
On Wednesday, April 21, 2010, bids were received as follows:
Engineer's Estimate $ 124,700.00
Absolute Concrete $ 75,999.95
Manatt's, Inc. $ 88,152.60
TK Concrete, Inc. $ 93,137.50
Con-Struct, Inc. $ 94,501.00
Completing this section of shared use path will provide a safer travel route to the Middle
School next fall, rather than waiting until the entire area develops, which is estimated to
be at least five years.
Funding for the City's share of this project was not included in the current year's
budget. It was hoped that constructing the Skunk River Trail with Stimulus II funds
would create savings in the Shared-Use Path Expansion program to cover the $14,000
City portion for this path. However, we were recently informed by the Iowa Department
of Transportation that the Stimulus II program will not move forward. Thus, the $14,000
i
will need to come from the Local Option Sales Tax Fund available balance if the
City Council hopes to take advantage of this opportunity to complete this project
earlier than expected.
It should be remembered that a portion of this shared-use path will be a double-wide
sidewalk along Cochrane Parkway.
ALTERNATIVES:
1a. Approve the supplemental project agreement with the developer of The Estates
of Nature's Crossing, contingent upon receipt of the Letter of Credit in the
amount of$64,500 by May 6, 2010.
b. Accept the report of bids for the Shared Use Path System Expansion
(Christopher Gartner Park to Ames Middle School).
C. Approve the final plans and specifications for the Shared Use Path System
Expansion (Christopher Gartner Park to Ames Middle School).
d. Award the Shared Use Path System Expansion (Christopher Gartner Park to
Ames Middle School) to Absolute Concrete of Slater, Iowa, in the amount of
$75,999.95, contingent upon receipt of the Letter of Credit in the amount of
$64,500 by May 6, 2010.
2. Report the bid amounts, but delay the final approval of the developer agreement
and award of bid until the next Council meeting after the necessary Letter of
Credit has been provided by the developer.
3. Reject the project.
MANAGER'S RECOMMENDED ACTION:
Moving ahead with this new alignment will facilitate the 2010 completion of the path
connection between South Dakota Avenue and the Ames Middle School. This will finish
the final link in this trail between Daley Park and State Avenue. This also allows for
children walking or bicycling to school to avoid crossing the busy accesses to the middle
school along Mortensen Avenue.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, thereby approving the project agreement with the developer of The
Estates of Nature's Crossing contingent upon receipt of the Letter of Credit in the
amount of $64,500 by May 6, 2010, accepting the report of bids, approving the final
plans and specifications, and awarding the Shared Use Path System Expansion
(Christopher Gartner Park to Ames Middle School) to Absolute Concrete of Slater, Iowa,
in the amount of $75,999.95, contingent upon receipt of the Letter of Credit in the
amount of$64,500 BY May 6, 2010.
2
DO NOT WRITE IN THE SPACE ABOVE THIS LINE,RESERVED FOR RECORDER
Prepared by:Douglas R.Marek City of Ames Legal Department,515 Clark,Ames,Iowa 50010(Phone: 515-239-5146)
A SUPPLEMENTAL AGREEMENT PERTAINING TO
ESTATES AT NATURE'S CROSSING SUBDIVISION
AND CONSTRUCTION OF A SHARED USE PATH CONNECTING
CHRISTOPHER GARTNER PARK AND AMES MIDDLE SCHOOL
THIS AGREEMENT,made and entered into this day of April,2010,by and between .
the CITY OF AMES,IOWA(hereinafter called"City"),and PINNACLE PROPERTIES AMES,L.L.C.,
and its successors and assigns (hereinafter called"Developer"),
WITNESSETH THAT:
WHEREAS,the parties hereto previously entered into an Agreement dated December 15,2006,
providing for construction ofbike paths and sidewalks as part of the subdivision platting and development
of Estates at Nature's Crossing Subdivision; and,
WHEREAS, pursuant to that previous Agreement and conditions of plat approval by City,
Developer is responsible for the costs associated with the construction of a shared use path along the north
side of College Creek within Estates at Nature's Crossing; and,
WHEREAS,the City Council,by resolution on February 9,2010,approved an alternate shared
use path alignment from Christopher Gartner Park through Estates of Nature's Crossing Subdivision and
South Fork Subdivision and connecting to the Ames Middle School; and,
WHEREAS, the City has determined that it is now appropriate and necessary to complete
construction of said shared use path with financial assistance from the City in the amount of fourteen
thousand dollars ($14,000.00); and,
WHEREAS, the Developer has opted to pay cash in advance for the balance of the cost of
construction,without special assessment; and,
WHEREAS, the Developer and the City now desire to specify the manner of payment by the
Developer to the City for construction costs so that the Project may proceed in a timely fashion.
Page 1 of 4
NOW,THEREFORE,the parties hereto have agreed and do agree as follows:
I
PURPOSE
A. It is the purpose of this Agreement to document, record, and give notice of a certain
method of payment by the Developer to the City for the construction of the shared use path from Gartner
Park to Ames Middle School Project("Project"),including Engineering Administration and Construction
Inspection fees as provided in the Ames Municipal Code, and to provide for the security of said payment
pending completion of the construction.
B. This Agreement does not create or vest in any person or organization,other than the City,
any rights or cause of action with respect to any performance,obligation,plan, schedule, or undertaking
stated in this Agreement,with respect to the Developer. This Agreement does not prevent the City from
amending, modifying, or releasing the Developer from some or all of the provisions of this Agreement.
No person shall have any cause of action or recourse against the City or Developer by reason of any such
amendment,modification,or release.
II
LOCATION OF ALTERNATE SHARED USE PATH ALIGNMENT
The parties agree that the Agreement dated December 15,2006,providing for construction ofbike
paths and sidewalks as part of the subdivision platting and development of Estates at Nature's Crossing
Subdivision and the City Council resolution of February 9,2010,approving an alternate shared use path
alignment from Christopher Gartner Park through Estates of Nature's Crossing Subdivision and South
Fork Subdivision and connecting to the Ames Middle School shall be construed to mean that the Developer
and the City shall mutually agree to the location of the easement within Lot T, South Fork Subdivision..
III
METHOD OF PAYMENT
A. Developer shall provide to the Cityby Apri123,2010,cash or an irrevocable letter of credit
or payment bond, in a form acceptable to the City Attorney, in an amount of not less than sixty-four
thousand five hundred dollars ($64,500.00).
B. The City shall make payments to the contractor in accordance with the terms of the
construction contract and shall draw down on the cash or letter of credit for payments for work performed
under the Project. The City shall provide copies of all invoices and payments for the Project to the
Developer at the time that payment is made to the construction contractor for construction work or to the
City for Engineering Administration and Construction Inspection fees.
C. If,during the progress of construction,change orders are approved that increase the total
costs in excess of the amounts secured by cash, letter of credit, or payment bond, the Developer shall
immediately provide to the City additional cash,supplemental or replacement letter of credit,or payment
bond,to secure the remaining total amount of the contract plus estimated Engineering and Construction
Inspection fees.
Page 2 of 4
D. Upon final completion,payment,and project closeout of the Project,the City shall
provide a final project accounting for the Project,including Engineering Administration and Construction
Inspection fees, and shall release to the Developer any remaining letter of credit,payment bond,or cash.
If,upon completion,payment, and project closeout of the Project,the remaining cash, letter of credit, or
payment bond is insufficient to cover outstanding amounts owed by the Developer to the City under the
terms of this Agreement, said amounts shall constitute a debt and the Developer immediately shall make
full payment in cash for such debt.
IV
CITY'S REMEDIES
Upon the Developer's failure to comply with the terms of this Agreement,the City may terminate
construction of the Project and pursue debt collection or any other remedies available.
V
COVENANT WITH THE LAND
This Agreement shall run with the Site and shall be binding upon the Developer,its successors and
assigns.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed
effective as of the date first above written.
CITY OF AMES,IOWA
By: Attest by:
Ann H. Campbell,Mayor Diane R.Voss, City Clerk
STATE OF IOWA, STORY COUNTY ss:
On this day of ,20 ,before me,a Notary Public in and for the State of Iowa,personally
appeared Ann H. Campbell and Diane R.Voss,to me personally known,and,who,being by me duly sworn,
did say that they are the Mayor and City Clerk,respectively,of the City of Ames,Iowa;the seal affixed to the
foregoing instrument is the corporate seal of the corporation,and that the instrument was signed and sealed on
behalf of the corporation,by authority of its City Council,as contained in Resolution No. adopted
by the City Council on the day of ,20 ,and that Ann H.Campbell and Diane R.Voss
acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed
of the corporation,by it voluntarily executed.
Notary Public in and for the State of Iowa
Page 3 of 4
PINNACLE PROPERTIES AMES,L.L.C.
By:
Keith D. Arneson,Manager
STATE OF IOWA, STORY COUNTY ss:
This instrument was aclmowledged before me on the day of ,2010,by Keith D.
Arneson, as Manager of Pinnacle Properties Ames,L.L.C.
Notary Public in and for the State of Iowa
Page 4 of 4
TEMPORARY CONSTRUCTION EASEMENT
BE IT KNOWN
That for and in consideration of One dollar($1.00)and other valuable consideration,receipt and
sufficiency of which is hereby acknowledged,Pinnacle Properties Ames, LLC(hereinafter referred to as
Grantors), their successors and assigns, do hereby grant unto the City of Ames,Iowa,subject to the
conditions hereinafter contained,for a period beginning the date of this instrument and ending one year
after said date,an easement to encroach upon and use for purposes pertaining to construction of the Shared
Use Path Expansion Project,that land that is described as:
Outlot T, South Fork Subdivision, Second Addition, in the City of Ames,Iowa.
Within this easement area,the Developer and the City shall mutually agree to the alignment and
location of the shared use path.
The City of Ames shall have the right to extend the term of this easement upon the same terms as
herein stated for an additional period of six months upon giving notice to Grantors or their successors,in
writing,not later than ten days before the expiration of the present term
The City of Ames, Iowa shall cease its use and surrender possession of the land subject to the
easement upon expiration of the easement term. Grantor and the City of Ames agree that an easement for
the Shared Use Path extension across Outlot T, South Fork Subdivision, Second Addition,will be included
in a future subdivision plat at such time as Outlot T is subdivided.
The foregoing rights are granted upon the express condition that the City of Ames, Iowa shall
assume all liability for all damages to the above described property caused by the City's failure to use due
care in the exercise of the rights granted.
DATED this -?'tv day of 52010.
GRANTOR
UA4 I�
STATE OF IOWA, STORY COUNTY, ss:
This instrument was acknowledged before me on
this day of r. 2010,by
r ne so, ,as
of said corporation.
Notary Publi d for the State of Iowa
CINDY L. HOLLAR
o COMMISSION NO. 139989
* MY C MMl SIGN EXPIRESW
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