Adopt Resolution 15-02-049 Ordering Cooperative Agreement for Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements; Improvement Project #15-20

Purpose:
The purpose of this case is to conduct a Public Hearing and order a Cooperative Agreement for proposed City Improvement Project #15-20, Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements.
 
Background:
City of Ramsey Improvement Project #15-20 proposes to reconstruct the segment of Jarvis Street between Highway 10 and 165th Avenue that is mutually owned and maintained by the cities of Elk River and Ramsey, and to improve the Burlington Northern Santa Fe railroad crossing to allow future establishment of a quiet zone.  A map showing the location and scope of the proposed improvements is attached.
 
The City of Elk River will be the lead agency for this project since the improvements to Jarvis Street are part of their larger 2015 street maintenance project for which they previously completed a feasibility report and are working on the final design.  While the final design is nearly complete, Ramsey’s staff is currently working with Elk River’s design consultant to ensure that all design elements impacting the City of Ramsey will meet our standards, as well as the Lower Rum River Watershed Management Organizations stormwater management and treatment requirements since this project will require a permit from the WMO.
 
On January 27^th, 2015 the Ramsey City Council directed staff to complete a Feasibility Report, which was received by the City Council on February 10^th and is attached for reference.
 
Existing Conditions
The existing shared segment of Jarvis Street is a 22-foot wide rural bituminous pavement section with maximum 2-foot wide aggregate shoulders, shallow ditches, driveway culverts, and no public utilities (watermain or sanitary sewer).  It has a Pavement and Surface Evaluation Rating (PASER) of 2, ranking its pavement condition among the worst in the City.

Proposed Improvements
Jarvis Street is proposed to be reconstructed as a 36-foot wide urban section (two 12-foot through lanes and two 6-foot bike lanes) including concrete B618 curb and gutter on both sides, storm sewer culverts under driveways as needed, and curb cuts with concrete flumes to direct stormwater runoff from the street into ditches.
 
No public utilities are proposed to be constructed since there are no plans to extend utilities to serve this area of the City in the foreseeable future.

Public Input
On February 18^th, a public information meeting was held at City Hall to solicit input from the property owners proposed to be assessed.  These property owners all have direct access onto Jarvis Street.  In attendance were 2 of the 10 property owners proposed to be assessed for the project.
 
Street reconstruction - In general, the property owners in attendance supported the project but questioned the need for concrete B618 curb and gutter as proposed along Jarvis Street.  They suggested removing the curb and gutter to reduce project costs.  Staff informed them that this was discussed with the Public Works Committee and that staff recommended adding curb and gutter to better facilitate drainage, and to help protect the edges of the new pavement.  It is staff’s position that the concrete curb and gutter will pay for itself over the life of the street due to reduced maintenance costs.  According to Elk River’s cost estimate, the cost for the B618 curb and gutter along the City of Ramsey’s side of Jarvis Street is about $41,500.
 
Pedestrian facilities – Two of the property owners in attendance stated they sometimes walk along Jarvis Street and support widening the street as proposed.

Observations:
In 2014, City of Ramsey staff rated this section of Jarvis Street with a PASER rating of 2, warranting a total reconstruction. While this is not the worst street in the City of Ramsey, it ranks quite close and as such is included in the 2015 – 2019 5-year CIP for street reconstruction projects.
 
Though the adjacent property uses are different on either side of the shared segment of Jarvis Street, with industrial properties in Elk River and residential properties in Ramsey, Jarvis Street is designated as a Municipal State Aid Street by both cities and as such must be reconstructed to State Aid standards as proposed by Elk River.

Reconstructing Jarvis Street in 2015 fits well with the current list of CIP projects including the reconstruction of Andie Street and 164th Lane in 2016.  This is because access to 164th Lane will be required from Jarvis Street while reconstructing 164^th Lane, so reconstructing Jarvis Street in 2016 would not allow for such access.
 
The Feasibility Report proposes to use special assessments to benefiting properties to fund a portion of the proposed improvements.  The use of special assessments must conform to the requirements set forth in State Statute Chapter 429, chapter 8 of the City Charter, applicable City codes, and the recently adopted Special Assessments Policy.  In order for the City of Ramsey to meet the project schedule as proposed by the City of Elk River, a Cooperative Agreement will need to be executed within the next 45 days.
 
The City of Elk River has been working with their consultant, Bolton & Menk, Inc., to prepare final plans and specifications for this project. Staff received a set of 90% plans on February 3^rd and has reviewed the plans.  Staff is working with Bolton & Menk to address several design elements, including stormwater management questions.  City staff is also discussing stormwater requirements with the Lower Rum River Watershed Management Organization as related to the proposed widening of the road, but does not anticipate any significant cost impacts to the project at this time.
 
As noted in the attached feasibility report, this project is necessary, cost-effective and feasible from an engineering standpoint, and can be constructed as proposed.

Alternatives:
Alternative Action #1 – Motion to adopt Resolution #15-02-049 Ordering Cooperative Agreement for Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements; IP #15-20, as proposed by staff.

Alternative Action #2 – Motion to adopt Resolution #15-02-049 Ordering Cooperative Agreement for Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements; IP #15-20, with the following modifications to the proposed design: ____________________.

Alternative Action #3 – Motion to deny adoption of Resolution #15-02-049 at this time.

The Feasibility Report was completed in-house as part of staff’s regular duties.

Based on Elk River’s estimated cost-share information, the City of Ramsey’s share of the project costs totals $920,305.50, though this number may change slightly based on staff’s continued discussions of the project with Elk River, their consultant, and the LRRWMO.  This estimated cost accounts for 50% of the costs for reconstructing the shared segment of Jarvis Street and the required railroad crossing quiet zone improvements.  The City of Elk River is agreeable to paying the City of Ramsey’s share of the costs up-front with an interest-free payback period of 3-years for calendar years 2016, 2017, and 2018.
 
Elk River’s estimated costs include 10% contingency costs plus 10% indirect costs for administrative, engineering and legal costs. No costs are proposed for temporary easements.
 
This improvement project, which is listed in the City’s current 5-year Capital Improvement Plan, is proposed to be funded using a mix of Public Improvement Revolving (PIR) funds, special assessments, and stormwater utility funds.
 
Preliminary special assessments are proposed in the Feasibility Report in the amount of $4,500 per lot. This totals $45,000 for the 10 single-family residential properties having direct access to the shared segment of Jarvis Street.  This amount is $2,000 per lot less than the assessments proposed for the Garnet Street and 168^th Avenue Reconstruction project given that only half of Jarvis Street is in the City of Ramsey, and since no utilities are proposed with this project.

The table below shows the estimated project costs and funding sources per improvement category.
 
 

	Assessments	City Funds	Total
Surface/Street	$45,000	$549,335	$594,335
Storm Sewer	–	$85,945	$85,945
Quiet Zone Improvements	–	$240,025	$240,025
TOTALS	$45,000	$875,305	$920,305

 
Staff will present more detailed information on project costs, financing and assessments during the hearing, including 5 and 10 year assessment payoff amounts.

Staff recommends Alternative Action #1, and would support Alternative Action #2 if Council wishes to make minor modifications to the project.

Staff does not recommend Alternative Action #3 due to the need to reconstruct Jarvis Street and the beneficial timing of the project if completed in 2015.