HomeMy WebLinkAboutVIII-05 Accept Proposal and Authorize Work - 2025 Neighborhood Infrastructure Improvements Special Benefit Analysis City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Ryan Stempski – Public Works Director
Date: August 5, 2024
Item: Accept Proposal and Authorize Work – 2025 Neighborhood Infrastructure Improvements Special
Benefit Analysis
Council Action Requested:
The Council is requested to authorize the Engineering Department to enter a contract with Valbridge
Property Advisors for the purpose of completing a special benefit analysis for the proposed 2025
Neighborhood Infrastructure Improvements Project.
Background Information:
On May 6, 2024, the City Council authorized the Engineering Department to conduct a special benefit
analysis as part of the feasibility study for the 2025 Neighborhood Infrastructure Improvements Project.
This analysis is instrumental for determining the appropriate assessment amounts that will be levied to
property owners abutting the streets proposed for improvement.
A total of five companies were solicited for these services and only two proposals were received. The
other three firms solicited stated that they could not complete the work within the requested timeline
due to their existing workload. The two proposals provided are as follows:
Valbridge Property Advisors – $20,000
Nagell Appraisal & Consulting – $2,400
After detailed review of these proposals and consulting with City Attorney Land, Valbridge Property
Advisors were selected to provide the special benefit analysis for this project. Although their proposal
was not the lowest cost, their scope of services more appropriately aligned with expectations of the
proposal. The project area does include several non-residential (i.e. Regina Hospital) properties that add
complexities to the analysis. This cost aligns with amounts paid for these services in past years for the
Neighborhood Infrastructure Improvements program ($30,500 paid in 2021, $15,000 paid 2022/2023).
Financial Impact:
The estimated cost of these services at $20,000 falls within the anticipated administrative costs for the
2025 Neighborhood Infrastructure Improvements Project. This project, if authorized for
bidding/construction following preparation of the Feasibility Report, will ultimately be paid for utilizing
bonded debt, enterprise funds, and private assessments.
Attachments:
Proposed 2025 Neighborhood Infrastructure Improvements Project Map
Agreement for Professional Services - Valbridge Property Advisors – Special Benefit Analysis for 2025
Neighborhood Infrastructure Improvements Project
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AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT (“Agreement”) is made and executed this ___ day of ____________, 2024, by and between the City of Hastings, 101 4th Street East, Hastings, Minnesota 55033, (“City”) and Valbridge Property Advisors, 1515 Central Parkway, Suite 120, Eagan, Minnesota 55121 (“Consultant”).
WHEREAS, the City has accepted the proposal of the Consultant for certain professional services; and WHEREAS, Consultant desires to perform the services for the City under the terms and conditions
set forth in this Agreement.
NOW THEREFORE, in consideration of the mutual consideration contained herein, it is hereby agreed as follows:
1. SERVICES.
a. City agrees to engage Consultant as an independent contractor for the purpose of performing certain professional services (“Services”), as defined in the following documents:
i. A proposal dated July 26, 2024, incorporated herein as Exhibit A. ii. Where the terms and conditions of this Agreement and those terms and conditions included in Exhibit A specifically conflict, the terms of this
Agreement shall apply.
b. Consultant covenants and agrees to provide Services to the satisfaction of the City in a timely fashion, as set forth in Exhibit A, subject to Section 7 of this Agreement.
c. Consultant agrees to comply with all federal, state, and local laws and ordinances
applicable to the Services to be performed under this Agreement. The Consultant represents and warrants that it has the requisite training, skills, and experience necessary to provide the Services and is appropriately licensed and has obtained any necessary permits from all applicable agencies and governmental entities.
2. PAYMENT. a. City agrees to pay and Consultant agrees to receive and accept payment for Services as set forth in Exhibit A.
b. Any changes in the scope of the work of the Services that may result in an increase to the compensation due the Consultant shall require prior written approval by the
31st July
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authorized representative of the City or by the City Council. The City will not pay additional compensation for Services that do not have prior written authorization.
c. Consultant shall submit itemized bills for Services provided to City on a monthly basis. Bills submitted shall be paid in the same manner as other claims made to the City.
3. TERM. The term of this Agreement is identified in Exhibit A. This Agreement may be
extended upon the written mutual consent of the parties for such additional periods as they deem appropriate, and upon the same terms and conditions as herein stated. 4. TERMINATION.
a. Termination by Either Party. This Agreement may be terminated by either party upon thirty (30) days’ written notice delivered to the other party to the addresses listed in Section 13 of this Agreement. Upon termination under this provision, if there is no default by the Consultant, Consultant shall be paid for Services rendered
and reimbursable expenses incurred until the effective date of termination.
b. Termination Due to Default. This Agreement may be terminated by either party upon written notice in the event of substantial failure by the other party to perform in accordance with the terms of this Agreement. The non-performing party shall have
fifteen (15) calendar days from the date of the termination notice to cure or to submit
a plan for cure that is acceptable to the other party. 5. SUBCONTRACTORS. Consultant shall not enter into subcontracts for any of the Services provided for in this Agreement without the express written consent of the City, unless
specifically provided for in Exhibit A. The Consultant shall pay any subcontractor involved
in the performance of this Agreement within ten (10) days of the Consultant’s receipt of payment by the City for undisputed services provided by the subcontractor. 6. STANDARD OF CARE. In performing its Services, Consultant will use that degree of
care and skill ordinarily exercised, under similar circumstances, by reputable members of
its profession in the same locality at the time the Services are provided. No warranty, express or implied, is made or intended by Consultant’s undertaking herein or its performance of Services.
7. DELAY IN PERFORMANCE. Neither City nor Consultant shall be considered in default of
this Agreement for delays in performance caused by circumstances beyond the reasonable control of the nonperforming party. For purposes of this Agreement, such circumstances include, but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war, riots, and other civil disturbances; strikes, lockouts, work slowdowns, and
other labor disturbances; sabotage; judicial restraint; and inability to procure permits, licenses
or authorizations from any local, state, or federal agency for any of the supplies, materials, accesses, or services required to be provided by either City or Consultant under this
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Agreement. If such circumstances occur, the nonperforming party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the
circumstances preventing continued performance and the efforts being made to resume
performance of this Agreement. Consultant will be entitled to payment for its reasonable additional charges, if any, due to the delay. 8. CITY’S REPRESENTATIVE. The City has designated Cody Mathisen to act as the City’s
representative with respect to the Services to be performed under this Agreement. He shall
have complete authority to transmit instructions, receive information, interpret, and define the City’s policy and decisions with respect to the Services covered by this Agreement. 9. PROJECT MANAGER AND STAFFING. The Consultant has designated Nathan Hansen
to be the primary contact for the City in the performance of the Services. He shall be
assisted by other staff members as necessary to facilitate the completion of the Services in accordance with the terms established herein. Consultant may not remove or replace these designated staff without the approval of the City.
10. INDEMNIFICATION.
a. Consultant and City each agree to indemnify, and hold harmless each other, its agents and employees, from and against legal liability for all claims, losses, damages, and expenses to the extent such claims, losses, damages, or expenses are caused by its
negligent acts, errors, or omissions. In the event claims, losses, damages, or expenses
are caused by the joint or concurrent negligence of Consultant and City, they shall be borne by each party in proportion to its own negligence. b. Consultant shall indemnify City against legal liability for damages arising out of
claims by Consultant’s employees. City shall indemnify Consultant against legal
liability for damages arising out of claims by City’s employees. 11. INSURANCE. During the performance of the Services under this Agreement, Consultant shall maintain the following insurance:
a. General Liability Insurance, with a limit of $2,000,000 for any number of claims arising out of a single occurrence; b. Professional Liability Insurance, with a limit of $2,000,000 for any number of
claims arising out of a single occurrence.
Consultant shall furnish the City with certificates of insurance, which shall include a provision that such insurance shall not be canceled without written notice to the City. The City shall be named as an additional insured on the General Liability Insurance policy.
12. OWNERSHIP OF DOCUMENTS. Professional documents, drawings, and specifications prepared by the Consultant as part of the Services shall become the property of the City
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when Consultant has been compensated for all Services rendered, provided, however, that Consultant shall have the unrestricted right to their use. Consultant shall retain its rights in
its standard drawing details, specifications, databases, computer software, and other
proprietary property. Rights to proprietary intellectual property developed, utilized, or modified in the performance of the Services shall remain the property of the Consultant. 13. NOTICES. Notices shall be communicated to the following addresses:
If to City: City of Hastings 101 4th Street East Hastings, MN 55033 Attention: City Administrator
Or e-mailed: dwietecha@hastingsmn.gov If to Consultant: Valbridge Property Advisors 1515 Central Parkway, Suite 120
Eagan, MN 55121
Attention: Nathan Hansen Or emailed: nhansen@valbridge.com
14. INDEPENDENT CONTRACTOR STATUS. All services provided by Consultant, its
officers, agents and employees pursuant to this Agreement shall be provided as employees of Consultant or as independent contractors of Consultant and not as employees of the City for any purpose.
15. GENERAL PROVISIONS.
a. Assignment. This Agreement is not assignable without the mutual written agreement of the parties.
b. Amendments. Any modification or amendment to this Agreement shall require a
written agreement signed by both parties. c. Waiver. A waiver by either City or Consultant of any breach of this Agreement shall be in writing. Such a waiver shall not affect the waiving party’s rights with respect to
any other or further breach.
d. Governing Law. This Agreement shall be construed in accordance with the laws of the State of Minnesota and any action must be venued in Dakota County District Court.
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e. Severability. If any term of this Agreement is found be void or invalid, such invalidity shall not affect the remaining terms of this Agreement, which shall
continue in full force and effect.
f. Data Practices Compliance. All data collected by the City pursuant to this Agreement shall be subject to the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13.
g. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes all prior communications, understandings and agreements relating to the subject matter hereof, whether oral or written.
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CITY OF HASTINGS
By: Mary Fasbender, Mayor
By:
Kelly Murtaugh, City Clerk Date:
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VALBRIDGE PROPERTY ADVISORS (“CONSULTANT”)
By: Its:
Date:
Nathan Hansen, MAI, ASA
Senior Managing Director
7/31/2024
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Nathan Hansen, MAI, ASA Valbridge Property Advisors | Minneapolis-St. Paul
Senior Managing Director 1515 Central Parkway, Suite 120
Eagan, MN 55121
651-370-1466
nhansen@valbridge.com
July 26, 2024
Cody Mathisen, P.E.
Principal Engineer
City of Hastings Public Works
1225 Progress Drive
Hastings,
Re: Special Benefit Analysis
The City of Hastings is requesting proposals to perform a special benefits appraisal for the City’s
prospective 2025 Neighborhood Infrastructure Improvements Project. The service being requested is
an appraisal report that summarizes the special benefit to be derived from improvements planned
with the project. It is requested that the report be based on market analysis of comparable
improvements completed in the region for properties of similar use to those identified for analysis.
To Cody Mathisen:
Thank you for your interest in obtaining valuation services. This letter and the attached documents reflect
our formal interest in the assignment.
Report Type
We will provide a Special Benefit Analysis. Instead of appraising individual properties or land parcels, we
will quantify the probable special benefit (value added) resulting from the proposed project. This analysis
will be applicable to properties within the project area.
Purpose/Intended Use
The purpose of the analysis is to estimate the anticipated range of special benefits for properties affected
by the street improvements in the project area. The intended use of this consultation is to guide the City of
Hastings in analyzing the special benefits derived from completing the roadway improvement projects.
Please refer to the attached exhibits provided by the client for project details.
Intended Users
The intended users of this report are the Client (City of Hastings) and no others.
EXHIBIT A VIII-05
Scope of Report
In estimating anticipated special benefit to properties in the project area, individual properties or land
parcels will not specifically be appraised. Rather, this analysis attempts to quantify probable special benefit
directly, which can then be applied to typical properties within the project area.
Specific elements requested by the client with addressed within the report, as follows:
1. Descriptions of subject properties and neighborhood
2. Descriptions of proposed improvements
3. Highest and best use analysis
4. Market value analysis and sales comparison (before and after infrastructure improvements) data for
properties of similar zoning and intended use within the local region (i.e. residential/institutional,
single/multifamily)
5. Conclusions and recommendations of special benefit to be derived for the various property and
improvement types on the project that can be applied within the state statute Chapter 429, Local
Improvements, Special Assessments process.
6. Special benefit estimates in the analysis are requested to be presented on a per-lot basis for the various
types of properties and varying levels of improvement (reclamation versus reconstruction).
Due Date
Nine (9) weeks from engagement
Report Delivery
One PDF copy and one hard copy will be provided upon request.
Benefits Analysis Fee
The total fee is not to exceed $20,000.
• The client named above is responsible for payment in a timely manner (30 days) and as the reports
are completed and invoiced.
• Any additional meetings, work, testimony or report revisions/updates/upgrades are extra and billed
at $300 per hour.
Information needed by the appraiser
• Project area defined (maps and/or parcels exhibits) – already provided by client in RFP
• Detailed description of the project – already provided by client in RFP
• Project contact for additional questions
Thank you for your consideration. We look forward to the opportunity to work with the City of Hastings on
this important project.
Sincerely,
Nathan Hansen, MAI, ASA
MN Certified General 20302614
Client Signature __________________________________________ Date ______________________________
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Competency
Valbridge Property Advisors | Minneapolis-St. Paul has sufficient knowledge, experience, education,
contacts and resources to competently complete this assignment. Neither the employment to make the
appraisal, nor the compensation for it, is contingent upon the appraised value of the properties. See the
attached list for a list appraisal projects we have completed.
Similar Projects Completed by Valbridge Property Advisors / Insight Realty Advisors.
The following is a list of multi-parcel right-of-way appraisal and appraisal review projects completed by Valbridge
Property Advisors.
• 2023 - Appraisal of 20 Parcels in Zimmerman regarding the reconstruction of CSAH 4 from the intersection
with 10th Street West to the intersection with County Road 45. Property types include multifamily, residential,
and commercial.
• 2023 - Appraisal of 2 Parcels in Medina regarding strip-take acquisitions. Property types included are identified
as residential.
• 2022 - Appraisal project along White Bear Avenue and Larpenteur Avenue in the cities of Maplewood and
Saint Paul, which is included 58 parcels. Property types included single-family residential, multifamily, small
commercial, investment-grade commercial, and church property.
• 2022 - Appraisal project along Larpenteur Avenue and White Bear Avenue in Maplewood and Saint Paul, which
is includes 70+/- parcels. Property types single-family, commercial, and public/quasi-public owned properties.
• 2022 - Appraisal of two properties along Hodgson Road regarding the future road improvements project.
Both properties were church-related use with an underlying land value tied to residential development. They
included Drainage & Utility Easements and Temporary Easements.
• 2021 – Appraisal project along South Shore Boulevard is White Bear Lake and White Bear Township, which is
included 72 parcels. Property types included lakefront residential lots and land, residential lots, church
property, and general land.
• 2021 - Appraisal project along Cedar Avenue and Dodd Boulevard in Lakeville, Dakota County. The property
included 20+/- parcel and property types included commercial, multifamily, single-family, and vacant land.
The project impacts included site improvements and impacts to irrigation systems.
• 2021 - Appraisal project along County Road 96 in Dakota County, which included approximately 45 parcels in
Greenvale Township. Property types included rural residential, agricultural and a mix. Project impacts included
severance damages to the dwellings and impacts to irrigation systems.
• 2021 - Appraisal project along County Road 42 in Apple Valley, Dakota County. Property types included big
box commercial and industrial. The project also included limited consulting work regarding the aggregate site
(gravel pit).
• 2021 - Appraisals of 8 parcels regarding a street reconstruction project, in Hugo, MN. Property types included
residential parcels and residential development land.
• 2021 - A multi-parcel review assignment for Dakota County in Eagan, MN along County Road 32 (Cliff Road).
This project had 44 parcels and the property types included residential, including single-family, townhomes,
and park land.
• 2021 - Appraisal of 20 Parcels regarding the County Road B2 Reconstruction Project in Roseville, MN. Property
types include single-family, townhomes, multifamily, and a school. Appraisal types included narrative (with
reviews) and direct valuations.
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• 2021 - A multi-parcel review assignment in Grand Rapids, MN along Highway 61. The project includes two
parcels, and the property types were improved commercial parcels.
• 2021 - A multi-parcel review assignment in Randolph Township along CSAH 88. This project had 40+ parcels
and the property types included residential, agriculture, and development land.
• 2020 - Appraisal of 41 Parcels regarding the Cleveland Avenue Reconstruction Project in Saint Paul and Falcon
Heights, MN. Property types include multifamily parcels, neighborhood commercial, institutional property,
and development land. Appraisal types included narrative (with reviews) and direct valuations.
• 2020 - Appraisal of 34 Parcels regarding the reconstruction of County Road 78 (240th Street / 245th Street) near
Hampton, MN. Property types include rural residential and agriculture land.
• 2020 – Appraisal of 14 parcels regarding the Lakeville Street Reconstruction Project, in Lakeville, MN. Property
types included residential parcels, residential development land, and commercial development land.
• 2020 - A multi-parcel review assignment for Dakota County in Eagan and Inver Grove Heights along Lone Oak
Road (County Roads 26 & 63). This project had 63 parcels and the property types included residential,
industrial, commercial and development land. The property included partial and total acquisitions.
• 2019 – Appraisal of 16 Parcels regarding the Lexington Avenue North reconstruction in Shoreview and Arden
Hills, MN. Property types include small commercial, big commercial, residential, and public/church. Appraisal
types included narrative (with reviews) and direct valuations.
• 2019 – Appraisal of 16 Parcels regarding the Lexington Parkway realignment in St. Paul, MN. Property types
include residential, multifamily, and commercial. Appraisal types included narrative (with reviews) and direct
valuations.
• 2019 - Appraisal of 19 Parcels regarding the reconstruction of County Road 73 (Akron Avenue) in Rosemount,
MN. Property types include development land, rural residential and agriculture land.
• 2019 - Appraisal of 10 Parcels regarding the reconstruction of the Highway 169 and 101st Avenue interchange
is Brooklyn Park, MN. Property types included development land, residential land, and an improved church
property.
• 2019 - A multi-parcel review assignment for Dakota County in Castle Rock Township along County Road 78.
This project had 46 parcels and the property types included residential, agriculture, and other related uses.
• 2019 - A multi-parcel review assignment for Dakota County in Vermillion Township along CSAH 62 (190th
Street). This project had 10 parcels and the property types included residential and agriculture.
• 2018 - Appraisal of 9 Parcels regarding the reconstruction of County Road C in Roseville, MN. Property types
include industrial and flex.
• 2018 - Appraisal of 72 Parcels regarding the reconstruction of County Road 23 (Foliage Avenue) in Southern
Dakota County, MN. Property types include rural residential and agriculture land.
• 2018 - Appraisal 11 parcels regarding the reconstruction of County Road 81 in Brooklyn Park. Property types
include commercial/retail properties.
• 2017 - Appraisal of 93 Parcels regarding the reconstruction of County Road 14 (Southview Boulevard) in South
St. Paul, MN. Property types include commercial and residential.
• 2017 - Appraisal of 9 Parcels regarding the reconstruction of County Road 26 (70th Street) in Inver Grove
Heights, MN. Property types include commercial, residential and development land.
• 2016 - Appraisal of 47 Parcels regarding the reconstruction of CSAH 50 (Kenwood Trail) in Lakeville, MN.
Property types include residential and development land.
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