Provide Recommendation on Elk River's Cost-Share Proposal for Reconstructing Jarvis Street in 2015.

The City of Elk River is proposing to reconstruct Jarvis Street between Highway 10 and 165^th Avenue as part of their 2015 street reconstruction program.  This work includes the proposed reconstruction of approximately 3,800 feet of Jarvis Street that is shared between the City of Elk River and the City of Ramsey as the boundary line between the cities is centered in the street.

As is discussed in the attached letter, the City of Elk River is proposing to reconstruct Jarvis Street as a 9-ton road with bituminous pavement and concrete curb and gutter at a width of 32-feet. A 10-foot bituminous trail is also proposed to be constructed along the west side of Jarvis Street.  This trail will serve to connect the City of Ramsey's Mississippi River Trail, which is being constructed along the south side of Highway 10, to Elk River's proposed Mississippi River Trail which is proposed to be routed through the City of Elk River and not along Highway 10.

This work is not included in the City of Ramsey’s Capital Improvement Program (CIP) for 2015 so the City of Elk River is offering to cover the upfront costs for the improvements and to allow the City of Ramsey up to three years to pay back our portion of the costs, which is currently proposed to be fifty-percent of the reconstruction costs along the shared length of Jarvis Street.

Elk River is also proposing to improve the Jarvis Street railroad crossing during the project to allow this crossing to become a railroad quiet zone.  Though this railroad crossing is located entirely within the City of Elk River, City of Ramsey businesses and residents would also benefit from the quiet zone.  Elk River is therefore asking the City of Ramsey to contribute fifty-percent of the cost for these improvements as well.

Approximately 15 minutes for presentation and discussion.

Although the adjacent property uses are very different on either side of the shared section of Jarvis Street, with industrial use properties in Elk River and residential properties in Ramsey, Jarvis Street is designated as a Municipal State Aid Street by both cities so it makes sense to reconstruct Jarvis Street as a 9-ton, 32-foot wide street per State Aid standards.

City of Ramsey staff most recently rated this section of Jarvis Street with a PASER rating of 3, which requires reconstruction. While this is not one of the worst streets in the City of Ramsey, it is certainly in poor condition and in need of reconstruction within the near future.  And reconstructing this section of Jarvis Street in conjunction with the reconstruction of 164th Lane/Andrie Street would not be a good option as access to 164th Lane/Andrie Street would need to be maintained along Jarvis Street during construction.

Based on Elk River’s current estimated costs, which are included in the attached letter, as well as the proposed 50-percent cost share, the City of Ramsey’s total share of costs is estimated to be $971,000.  The probable funding sources for this work would likely include a mix of State Aid funds and general funds designated for street reconstruction projects.

If this project is constructed and the City of Ramsey agrees to participate in funding the project as proposed, the City will then be responsible for paying back roughly $324,000 per year over a term of 3 years. This would obviously impact the City's street reconstruction program as currently proposed and would require Staff to review current and proposed budget allocations for future projects to determine which of the currently programmed projects could still be funded during this 3 year term, which would likely include fiscal years 2016, 2017, and 2018.

Due to the mutual benefits provided by this project and the ability to pay the costs back interest-free over a 3 year term, Staff recommends serious consideration of Elk River's proposal.

Motion recommending approval or denial of the City of Elk River's proposal.