Adopt Resolution #15-09-229 Ordering Preparation of Assessment Roll and Calling for Assessment Hearing for Jarvis Street Reconstruction & Railroad Crossing Quiet Zone Improvements; Improvement Project 15-20

Purpose:
The purpose of this case is to adopt Resolution #15-09-229 ordering the preparation of an assessment roll and calling for an Assessment Hearing for the Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements, Improvement Project #15-20.  A map showing the location and scope of the improvements is attached as Figure 1.

Background:
City of Ramsey Improvement Project #15-20 involves the reconstruction of Jarvis Street between Highway 10 and 165th Avenue, which is mutually owned and maintained by the cities of Elk River and Ramsey, and improvements to the Burlington Northern Santa Fe railroad crossing to allow future establishment of a quiet zone.  The City of Elk River is the lead agency for this project as the improvements to Jarvis Street are being completed as part of their overall 2015 Street Improvement Project.  A Joint Powers Agreement (JPA) was executed between the two cities to define the obligations of each in regards to constructing and funding the project.

Existing Conditions
The existing shared segment of Jarvis Street was 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 had a Pavement and Surface Evaluation Rating (PASER) of 2 based on 2014 field ratings which warranted a total reconstruction.

Proposed Improvements
Jarvis Street is being reconstructed as a 36-foot wide urban section (two 12-foot through lanes and two 6-foot bike lanes) including concrete 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 roadside 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.
 
Construction is nearing completion and the project will be substantially complete by the time the Assessment Hearing is held.

No notifications are required for this case.  Upon approval of this case, City staff will publish one notice of the hearing in the City’s official newspaper, the Anoka Union Herald, on Friday, September 25^th.  Individual notices of the hearing will also be mailed to each property owner proposed to be assessed for the improvements at least 2 weeks before the hearing.

Observations:
Anoka County requires that assessments be certified to the County Auditor by the end of November for collection on next year’s taxes.  This deadline will be met by conducting the Assessment Hearing at the October 13^th City Council meeting, which will also allow adequate time for the publication and mailing of notices as required per Minnesota State Statute Chapter 429.

Alternatives:
Alternative Action #1 – Motion to adopt Resolution #15-09-229 ordering the preparation of an assessment roll and calling for an Assessment Hearing for Jarvis Street Reconstruction & Railroad Crossing Quiet Zone Improvements; Improvement Project 15-20.

Alternative Action #2 – Motion to deny adoption of Resolution #15-09-229 at this time.

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.

The total estimated cost participation for the City of Ramsey for this project is $575,779.22 which accounts for 50% of the costs to reconstruct the shared segment of Jarvis Street, and 50% of the costs to complete required railroad crossing quiet zone improvements including moving the railroad crossing arms and extending the width of the crossing surface which must be completed by Burlington Northern Santa Fe (BNSF).  It should be noted that the JPA does not identify specific costs, but rather obligates the City of Ramsey to funding 50% 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.


Per the City’s adopted Special Assessments Policy, special assessments amounting to 25% of applicable street reconstruction project costs are targeted for reconstruction projects.  However, based on the existing large lot sizes and property frontages, the preliminary special assessments were set at $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.  This amount was selected based on input received from a certified real estate appraiser.  Since such time, the City Council approved the preparation of a special assessment benefit appraisal consultation for this project to verify that the special assessment would not exceed the benefit to affected properties.  Based on the final special benefit consultation report, it is anticipated that properties benefiting from the improvements and proposed to be assessed will be enhanced in value by approximately $7,500 to $8,000 per property.  Staff will address the discrepancy between the preliminary special assessments amount and the anticipated property value enhancement identified in the special benefit consultation report during the Assessment Hearing on October 13th.

Staff recommends Alternative Action #1.

Adopt Resolution #15-09-229 ordering the preparation of an assessment roll and calling for an Assessment Hearing for Jarvis Street Reconstruction & Railroad Crossing Quiet Zone Improvements; Improvement Project 15-20.