Adopt Resolution #16-01-003 Accepting Feasibility Report and Ordering Public Hearing for Improvement Project #16-00, Division C; Andrie Street and 164th Lane Reconstruction

City of Ramsey Improvement Project 16-00 Division C proposes to reconstruct the pavement sections and complete other appurtenant work on two urban street segments connecting Alpine Drive and Jarvis Street through the Northfork development in the southwest corner of the City.  The street segments proposed to be reconstructed total approximately 9,990 linear feet (1.89 miles) in length and include Andrie Street (approx. 6,330 linear feet) from Alpine Drive to 164^th Lane, and  164th Lane (approx. 3,660 linear feet) from Andrie Street to Jarvis Street.  A map showing the location and scope of the proposed improvements is included in Appendix A of the attached Feasibility Report.
 
City staff evaluates and rates the condition of pavement sections on all city streets on an annual basis using the Pavement and Surface Evaluation Rating (PASER) system.  In the fall of 2015, the pavement sections of the above-referenced street segments were rated with PASER ratings of 2 ranking them among some of the worst street segments in the City.  A PASER rating of 2 also implies that these streets are past the point of applying an overlay so the streets require complete reconstruction. Pictures of these streets are located at the end of Appendix A of the attached Feasibility Report.
 
Both street segments were constructed in 1985 with bituminous pavement and bituminous curbs at a width of 31 feet from back-of-curb to back-of-curb.  Minimal storm sewer improvements were also constructed with these streets.  Between the bituminous curbing and lack of a sufficient number of catch basins, stormwater runoff did not effectively drain from these streets resulting in the accelerated deterioration of the pavement sections.  The condition of these streets is now such that City staff must patch the streets multiple times a year, particularly before winter months so the streets can be plowed without pulling up pieces of pavement in the process.
 
The proposed design outlined in the Feasibility Report provides for reconstructing both streets using B618 concrete curb and gutter, bituminous pavement, storm sewer improvements, and an on-street bike lane on one side of the streets which requires signing and striping improvements.
 
The on-street bike lane, recommended by the Public Works Committee as a compromise to installing concrete sidewalk which was overwhelmingly opposed by residents in 2008/09 leading to a petition that stopped the project from being constructed at that time, does not allow on-street parking on that side of the street.  The proposed improvements outlined in this report therefore include on-street parking bays (bump-outs) along approximately 35% of the project corridor on the opposite side of the streets.
 
Staff received numerous comments and questions from Northfork residents while preparing this report.  And per Council request, Staff met with residents to discuss the proposed improvements and to gather public input on three separate occasions.  The primary focus of the feedback and questions received were related to the proposed street width and the need for both dedicated pedestrian facilities and on-street parking.  The residents primary concerns were that widening the streets would result in increased vehicle speeds making the corridor less safe for pedestrians, and would result in the removal of mature trees along the corridor.  There was also debate on the need for a dedicated pedestrian facility, as well as on the need for on-street parking and what other options might exist to accommodate pedestrians and on-street parking.
 
In response to the resident’s concerns, Staff ultimately modified the design to include on-street parking along approximately 35% of the project corridor to minimize impacts to existing mature trees.  This amount of on-street parking should also not encourage speeding along the corridor, yet would provide some level of on-street parking, though it would require most people to walk a short distance to their point of destination.
 
There was also much discussion on the basis used for developing proposed assessment amounts. As required by the City’s Special Assessments Policy, which was discussed with the residents, the residential assessments for this project are based strictly on the costs required to reconstruct the streets at their existing width using a standard residential pavement section of 3½ inches of bituminous pavement over 4 inches of class 5 aggregate base.  Assessments are not based on the wider street and more robust pavement design section as proposed to accommodate State Aid design standards.

Since public utilities do not exist within these street corridors, and because the City has no plans to serve this area with public utilities, sanitary sewer and watermain improvements are not being proposed with this project.
 
The engineer’s opinion of probable costs for reconstructing both street segments to State Aid standards is approximately $2,956,000.  Estimated costs include 10% contingency costs, plus 23% indirect costs for administrative, engineering, finance and legal costs.  A summary of the engineer’s opinion of probable costs is included in Appendix B of the attached Feasibility Report.
 
The engineer’s opinion of probable costs for reconstructing both street segments applying only eligible assessment costs is $2,379,000 which again includes 10% contingency costs plus 23% indirect costs for administrative, engineering, finance and legal costs.  A total of 65 assessable parcels have been identified.  Staff recommends applying 25% of the eligible improvement costs equally across the 65 assessable properties using the “per lot” assessment method.  This results in a proposed preliminary assessment rate of $9,150 per assessable parcel.
 
Staff recommends ordering a special benefit consultation report for this project to verify that the proposed assessment amount will not exceed the benefit to the properties.  If the report concludes that the benefit to the properties is less than the proposed preliminary assessment rate, Staff will then propose to lower the assessment rate accordingly during the Assessment Hearing, which is scheduled for October 11^th, 2016.  But if the report verifies that the assessment rate as proposed is justified, Staff will propose to adopt the final assessment roll using the rate as preliminarily proposed.   
 
This improvement project, which is listed in the City’s current 5-year Capital Improvement Plan, is proposed to be funded using a combination of special assessments to benefiting properties and street reconstruction bond proceeds.
 
This project can best be constructed as a separate project, and is necessary, feasible, and cost-effective from an engineering standpoint and can be constructed as proposed herein.

No notifications are required for this case.

Observations:
Attached are copies of the comment cards received at the three public input meetings, which have been redacted to remove phone numbers and email addresses.  Based on the comments received, staff will be prepared to address questions the Council may have on some of the alternative designs requested by some of the Northfork residents.

As part of the case that will be presented to Council for the January 26th Public Hearing, staff will provide a more comprehensive summary of public comment.  Since the last public input meeting was held the evening of January 6th, Staff did not have sufficent time to prepare a comprehensive summary for inclusion with this case.

Alternatives:
Alternative Action #1 – Motion to adopt Resolution #16-01-003 accepting the Feasibility Report and ordering a Public Hearing for City Improvement Project #16-00, Division C; Andrie Street and 164th Lane Reconstruction, as proposed by staff.

Alternative Action #2 – Motion to adopt Resolution #16-01-003 accepting the Feasibility Report and ordering a Public Hearing for City Improvement Project #16-00, Division C; Andrie Street and 164th Lane Reconstruction, with modifications to the Feasibility Report as follows: ____________________.

Alternative Action #3 – Motion to deny adoption of Resolution #16-01-003 at this time.

 

City staff prepared the Feasibility Report in-house as part of staff’s normal duties.

NTI prepared the attached Geotechnical Evaluation Report at a cost of $5,650.

The total estimated construction cost for the proposed improvements is $2,956,000.  A detailed opinion of probable costs for the proposed improvements can be found in Appendix B of the attached Feasibility Report.  The opinion of probable costs incorporates anticipated 2016 construction costs for the proposed improvements, as well as 10% construction contingencies plus 23% indirect costs for administrative, engineering, financing and legal costs.

The City’s adopted Special Assessments Policy allows assessing up to 25% of eligible project costs for street reconstruction projects.  As such, 25% of eligible project costs are proposed to be recovered through special assessments levied against 65 benefiting properties, which are considered to be properties having direct access to the improved segments of Andrie Street and 164th Lane.  The engineer’s opinion of probable costs for eligible assessment costs totals $2,379,000. Single-family residential property owners are therefore preliminarily proposed to be assessed at the rate of $9,150 per lot.

Since special assessments have not been widely utilized in recent years for street reconstruction projects in Ramsey, and since State Statute and the City Charter do not allow for assessments to exceed the benefit to the property, staff wants to ensure that any assessments applied with this project will not exceed the benefit to assessed properties. Staff will therefore request Council authorization to order a benefit appraisal consultation for this project in accordance with the City’s Special Assessments Policy at the time a construction contract is awarded.

The City contribution to the project will include all funding in excess of the amount collected through special assessments to benefiting properties.  No funds were budgeted for this project. The City would utilize previously encumbered 5-year street reconstruction bonds for the City’s contribution for project costs related to surface (street) improvements.  Stormwater Utility Funds would be utilized for all storm sewer improvements.  Special assessments would be used to pay back a portion of these costs based on the term of the special assessments as adopted by Council at the end of the project.

In summary:
Total Project Cost = $2,956,000
Total Special Assessments = $594,750
Street Reconstruction Bond Funds = 1,823,250
Stormwater Utility Funds = $538,000
 

It is the recommendation of City staff that City Project No. 16-00 Division C is feasible, necessary, and cost-effective from an engineering standpoint.
 
The following staff recommendations related to the proposed project are presented for Council consideration and concurrence:
 

1. Staff recommends reconstructing both street segments in 2016.
2. Staff recommends constructing an on-road bike lane along the east side of Andrie Street and the north side of 164th Lane per the recommendation of the Public Works Committee.
3. Staff recommends widening Andrie Street and 164th Lane to accommodate State Aid design standards (100% City cost).
4. Staff recommends constructing a 9-ton pavement section for Andrie Street and 164th Lane as proposed herein to accommodate State Aid design standards (100% City cost).
5. Staff recommends ordering an assessment appraisal consultation to ensure that special assessments do not exceed the benefit received as a result of the improvements.
6. Staff recommends holding a neighborhood information meeting in March of 2016 to keep residents informed on the status of the project design prior to requesting Council approval of plans and specifications on April 12^th.

In order to ensure that the project can be constructed in 2016, the City Council is asked to take the following actions related to the proposed project:
 

1. Accept the preliminary residential special assessment rate of $9,150 per lot.
2. Adopt Resolution #16-01-003 accepting the attached Feasibility Report, either as is or with minor modifications that can be incorporated before the Public Hearing, and ordering the Public Hearing for January 26, 2016.