Consider 2012 Street Maintenance Program

Staff has been developing the 2012 Street Maintenance Program (SMP) for several weeks, and is seeking direction from the Council on how best to approach maintenance activities for this construction season.  In light of recent discussions centered on long term road maintenance in the City, it has been difficult creating a program that would be supported by the Council and community.  Until a final decision is made on long term funding to achieve the City's road maintenance goals there is limited funding available to complete all the scheduled improvements.

Attached is a map showing all the roadway segments that are due to receive some sort of maintenance treatment for calendar years 2011 and 2012.  As you can see there are approximately 74 miles of roadway needing work at an estimated cost of $5,595,400, and the current budgeted amount for the 2012 SMP is $495,000.  Further complicating the situation is whether the Council is considering the elimination of assessments for maintenance activities (sealcoats and overlays) and replacing it with another funding option.  The current City assessment policy has 2012 sealcoats at a rate of 15% of the total project costs, which are being phased out completely by the end of 2013, and overlays at a rate of 50% of the total project costs.  If the Council is considering amending this policy it is difficult to develop a program that can be supported by the residents if another option may be available in the near future.  The uncertainty of funding long term road maintenance activities, coupled with the City Charter provision that allows counter-petitioning of projects by impacted residents, further intensifies the situation.

On February 14, during presentation of the case to consider a long term road maintenance policy, there was discussion with respect to the 2012 SMP.  With the notion being that a long term funding solution would be forthcoming relatively soon with respect to future road maintenance it was discussed that this years SMP should only include sealcoats, and consideration should be given to potentially eliminating the associated assessments.  There are several reasons why the idea of eliminating assessments for this year was considered; the current sealcoat assessment rate of 15% is negligible compared to overlays and reconstructions, there was concern expressed by the Council on how to retroactively respond to resident complaints associated with the shift in road maintenance funding, elimination of the public hearing (429 assessment process) would save time and money, and it would remove the ability for residents to counter-petition the improvements.

Based upon this preliminary feedback staff presented a case to the Public Works Committee on February 21, 2012 seeking direction on how best to proceed with the 2012 SMP.  It was the consensus of the Committee to initiate a program that contained sealcoats only, and that the program should be tailored in a way that assessments would be eliminated.  Staff stated that they would prepare a program based upon their feedback and present the information as a stand-alone case at the next regularly scheduled City Council meeting, as opposed to being a report from Public Works on the consent agenda.  Staff has developed a program that meets those stated goals (see attached) and only utilizes dedicated funding sources.

The 2012 SMP is comprised of approximately 21 miles of sealcoats at an estimated cost of $574,000, and will be funded by TIF #4, the City's general fund, state aid (MSA), and developers' first sealcoat escrows from development agreements.  Staff is also evaluating the need for sealcoating parking lots in parks, at water tower #1, and at the public works facility.  Those items would be funded through the parks and/or facilities maintenance budgets, and additional information related to this will be available at the Council meeting.  Staff still intends to hold an informational open house with impacted residents to explain the project, process, and solicit feedback on items of concern within the project area that may need to be included in the project scope (drainage fixes, etc.). 

If it is the Council's direction to continue with assessments for partially funding the improvements we will need to hold a public hearing to accept the feasibility study and order the improvements at the first regular meeting in April.  Following the public hearing we are required by City Charter to wait 60 days to initiate the project to determine whether or not any of the individual improvements contained within the feasibility report are going to be counter-petitioned.  Following this timeline staff would be requesting Council to initiate the project and authorize the preparation of plans and specifications on June 12th.  Bidding would commence thereafter in late June/early July, and implementation would occur in late July/early August.  This schedule does not provide much wiggle room if the weather is uncooperative at this time of year, as we cannot extend the timeline for application of sealcoat material beyond the middle of August.  There are restrictions in the specifications that would prohibit the installation of sealcoat material beyond this timeline without the City assuming some risk.  We would also then need to hold another public hearing in September to levy the assessments and still allow the residents to pay in full for a period of 30 days before Anoka County certifies them to the tax roll in mid-October.

Staff recommends that the City Council ratify the Public Works Committee's recommendation, and direct staff to prepare the 2012 SMP as all sealcoat applications with the elimination of assessments.

Preparation and implementation of the 2012 SMP is primarily financed through the City's General Fund, TIF #4, MSA, and developers' first sealcoat escrows.  Depending on the scope of improvements contained within the final approved program; after considering the potential parking lot improvements, soliciting feedback from impacted residents, and evaluating the various neighborhoods in the field, additional funding sources may be added to the program.  The final scope and funding package for the 2012 SMP will be included in a feasibility study for Council consideration at a later date.

Motion to direct staff to move forward with the 2012 SMP by concentrating efforts on a sealcoat only program, including the elimination of assessments.

-or-

Motion to call the public hearing to consider the 2012 SMP at the April 10, 2012 regular City Council meeting.