Adopt Resolution #15-06-144 Approving Joint Powers Agreement with City of Elk River for Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements, Improvement Project #15-20

Purpose:
The purpose of this case is to adopt Resolution #15-06-144 approving the attached Joint Powers Agreement (JPA) with the City of Elk River for completing the Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements, Improvement Project #15-20 as requested by the City of Elk River.  Copies of the JPA and Resolution #15-06-144 are attached to this case.
 
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.  The location and scope of the proposed improvements are shown in Exhibit A in the attached JPA.
 
The City of Elk River will be the lead agency for this project since the improvements to Jarvis Street will be completed as part of their overall 2015 Street Improvement Project which Elk River recently bid and awarded a construction contract to North Valley, Inc. on April 20^th.  Bids were very favorable, with North Valley’s low bid coming in approximately 20% below the engineer’s estimate.  This in turn will reduce the City of Ramsey’s cost share for this project.
 
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).  This segment of Jarvis Street has a Pavement and Surface Evaluation Rating (PASER) of 2 based on 2014 field ratings which warrant a total reconstruction.

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, 2015, a public information meeting was held to solicit input from property owners with direct access onto Jarvis Street who are proposed to be assessed for a portion of the improvement costs. Owners of 2 of the 10 properties proposed to be assessed for the project attended and overall these property owners supported the project, though they questioned the need for B618 concrete curb and gutter as proposed. 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, which the Public Works Committee supported.  Two of the property owners in attendance indicated they walk along Jarvis Street and supported widening the street as proposed.
 
On February 24, 2015, a Public Hearing was conducted as required for the use of special assessments for a portion of the improvement costs.  Testimony received at the Public Hearing again supported the project in general, but questions were again raised regarding the need for B618 concrete curb and gutter and the impacts this might have on access to adjacent properties.  As was discussed at the Hearing, City staff will work with property owners to ensure accesses are reasonably accommodated and maintained as allowed by City code.
 
The City of Elk River’s contract with North Valley, Inc. specifies that work cannot begin on Jarvis Street and 165^th Avenue before July 27^th, 2015, and must be complete by October 9, 2015.  Provided that all permitting and approvals from BNSF and others are in place the contractor intends to begin work on Jarvis Street at the end of July.
 
The attached JPA sets forth the obligations of each City in regards to constructing and funding the project. Ramsey’s City Attorney has reviewed and approved the attached draft JPA, as has the City of Elk River’s staff.  Upon approval by the Ramsey City Council, the JPA will be submitted to Elk River’s City Council for approval, after which the supporting resolutions from each City will be added to the JPA as Exhibits B and C.

No notifications are required for this case.

Observations:
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.  However, 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 in the plans developed by the City of Elk River’s engineering consultant, Bolton Menk, Inc.  City staff worked with Elk River’s consultant to ensure that all design elements impacting the City of Ramsey meet our design standards.

Reconstructing Jarvis Street in 2015 fits well with the current list of CIP projects, including the proposed 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 therefore reconstructing Jarvis Street in 2016 would not allow for such access.

A Lower Rum River Watershed Management Organization permit has been approved for this project.

Alternatives:
Alternative Action #1 – Motion to adopt Resolution #15-06-144 approving a Joint Powers Agreement with the City of Elk River for Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements, Improvement Project #15-20, as attached.

Alternative Action #2 – Motion to adopt Resolution #15-06-144 approving a Joint Powers Agreement with the City of Elk River for Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements, Improvement Project #15-20, with modifications as follows; ________________.

Alternative Action #3 – Motion to deny adoption of Resolution #15-06-144 at this time.

Cost-share information previously provided by the City of Elk River indicated the City of Ramsey’s share of the estimated project costs would total $920,305.50.  This accounts for 50% of the costs to reconstruct the shared segment of Jarvis Street and to complete required railroad crossing quiet zone improvements.  However, based on the bid from North Valley, Inc., the City of Ramsey’s cost participation for all contract items associated with the project will total $394,779.22.  In addition, the City of Ramsey will be responsible for half of the costs associated with moving the railroad crossing arms and extending the width of the crossing surface as required for establishing a quiet zone.  This work must be completed by Burlington Northern Santa Fe (BNSF) outside of Elk River’s contract with North Valley, Inc.  Elk River is still working with BNSF railroad to determine their costs for these improvements, but based on the preliminary estimate of $362,000 the City of Ramsey’s share would be half this amount, or $181,000.  Therefore, the total estimated cost participation for the City of Ramsey for the entire project is $575,779.22 (about 40% less than originally estimated).
 
The JPA does not identify specific costs, but rather obligates the City of Ramsey to funding half of the identified project improvements.  However, the JPA also obligates the City of Elk River to paying the City of Ramsey’s share of the project costs up-front with an interest-free payback period of 3-years for calendar years 2016, 2017, and 2018.

This improvement project is listed in the City’s current 5-year Capital Improvement Plan and 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 which totals $45,000 based on assessments being applied to all 10 single-family residential properties having direct access to the shared segment of Jarvis Street. The Assessment Hearing is scheduled to be held on October 13^th, 2015, at which time the project should be substantially complete and the results of the Council approved special assessment benefit appraisal consultation will be available to assist in verifying that the preliminary special assessment amount does not exceed the benefit received by the assessed properties.

Staff recommends Alternative Action #1, but would support Alternative Action #2 if Council wishes to make minor modifications to the JPA before submitting it to the City of Elk River for approval by their City Council.

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.