Adopt Resolution #19-264 Ordering Feasibility Report for Improvement Project #20-02, 2020 Overlay Improvements

Purpose:
The purpose of this case is to adopt Resolution #19-264 ordering a Feasibility Report for Improvement Project #20-02, 2020 Overlay Improvements.
 
Background:
Pavement and Surface Evaluation Rating (PASER) values are assigned annually to all public street segments.  Street segments with a PASER value between 3 and 6 indicates the segments may be good candidates for overlays.  Overlays are typically completed every 20 years on bituminous pavement sections, until such time that the street needs to be reconstructed.
 
Overlay improvements increase the structural capacity of the pavement section, and help prevent stormwater runoff from infiltrating into the underlying aggregate base and subgrade sections.  Overlays are one tool the City uses to cost-effectively maintain streets over their serviceable life, which when properly constructed is anticipated to be 60 years.
 
Attached is a figure showing the street segments proposed to receive overlay improvements in 2020 per the 2020 – 2029 Capital Improvement Program (CIP).  The streets are located in the following residential developments:

• Klemish
• Klemish and Flores
• Sunfish Square
• Sunfish Square 2^nd Addition
• Windemere Woods
• Windemere Woods 2^nd Addition

 
The proposed improvements are designated as City Improvement Project #20-02, 2020 Overlay Improvements.

Notifications are not required for this case.

Observations:
Feasibility Reports explore numerous aspects of proposed improvements including whether they are feasible, necessary and cost-effective, whether they should be completed alone or in conjunction with other improvements, and to explore design options, if necessary. Estimated project costs and funding sources will also be explored in more detail than was done to develop the Capital Improvement Program (CIP).  A preliminary project schedule will also be developed.

Special assessments can be used to fund all or a portion of eligible project costs, regardless of whether bonds are used as a funding source.  Cities may use Municipal State Aid (MSA) or General Funds to fund road improvement projects and still assess a portion of the costs based on applicable local assessment policies and state statutes.  For City of Ramsey projects this includes the applicable provisions of Chapter 8 of the City Charter, the City’s Special Assessments Policy, and Minnesota Statute Chapter 429.  Per the City of Ramsey’s adopted special assessments policy, special assessments of up to 25-percent of eligible project costs are intended to fund a portion of all overlay improvement projects.  Prior to 2014, the City did not issue debt (bond) when assessing sealcoat and overlay improvements.  Instead, funds were taken from the MSA, Public Improvement Revolving (PIR), and General Funds.  The City’s last 5-year Street Reconstruction and Overlay Plan (SROP) expired in 2019 so in order for bonds to be used as a funding source a new 5-year SROP would first need to be developed and adopted.  Attached are copies of the documents referenced herein.

While preparing the Feasibility Report, Staff proposes to conduct a public engagement workshop and will mail invitations to owners of properties accessing the street segments proposed to receive overlay improvements.  The purpose of the meeting will be to explain the need for and scope of the improvements, anticipated construction impacts, estimated costs, proposed funding program, and preliminary project schedule.  Benefits of such meetings are that Staff may be made aware of planned events at properties that require increased communications and coordination with the property owner to ensure access is available for the event.  Staff may also learn of issues observed by property owners that should be addressed before or as part of the overlay improvements.
 
No ground penetrating radar or pavement coring data exists for these streets and Staff is not proposing to complete such work at this time.  Instead, Staff will complete field reviews and will research as-built plans and other documentation to determine if any of the street segments have degraded to the point that a reconstruction is now required, and to determine if pavement patching may be required before overlay improvements are completed, similar to work completed on the 2018 overlay improvements project.

Alternatives:
Alternative #1 – Motion to adopt Resolution #19-264 ordering a Feasibility Report for Improvement Project #20-02, 2020 Overlay Improvements.

Alternative #2 – Motion to deny adoption of Resolution #19-264 at this time.

The Feasibility Report will be prepared in-house as part of Staff’s normal duties.

The current CIP lists the estimated project costs at $495,120 with $117,630 coming from special assessments to benefiting properties, $200,000 coming from TIF #8, $152,890 coming from the Road Reconstruction / Overlay Fund, and $24,600 from the Stormwater Utility Fund.  The Road Reconstruction / Overlay Fund has a current balance of over $400,000.

Preparing the Feasibility Report will allow Staff to refine the estimated project scope and costs before requesting authorization to prepare plans and specifications.

Staff recommends alternative #1.

Motion to adopt Resolution #19-264 ordering a Feasibility Report for Improvement Project #20-02, 2020 Overlay Improvements.