Adopt Resolution #16-09-175 Ordering Preparation of Assessment Roll and Calling for Assessment Hearing for Andrie Street and 164th Lane Reconstruction; Improvement Project 16-00 Division C

Purpose:
The purpose of this case is to adopt Resolution #16-09-175 ordering the preparation of an assessment roll and calling for an Assessment Hearing for Andrie Street and 164th Lane Reconstruction; Improvement Project 16-00 Division C on October 25^th, 2016.

Background:
City of Ramsey Improvement Project #16-00 Division C includes the reconstruction of approximately 9,963 linear feet (1.89 miles) of public streets in the Northfork development including Andrie Street from Alpine Drive to 164^th Lane (approx. 6,312 feet), and 164th Lane from Andrie Street to Jarvis Street (approx. 3,651 feet).  Attached is the title sheet of the plans which shows the scope and location of the improvements.

Existing Conditions
Andrie Street and 164^th Lane were constructed in 1985 using bituminous pavement and bituminous curbs at a width of 31 feet from back-of-curb to back-of-curb.  Both streets were constructed using minimal grades and an insufficient number of catch basins to effectively drain stormwater runoff from the streets, which have accelerated the deterioration of the pavement sections.  In the fall of 2015, the pavement sections of the above-referenced street segments had PASER ratings of 2 meaning they are past the point of overlaying and instead require complete reconstruction.

Proposed Improvements
The proposed design provides for reconstructing both streets to a width of 33 feet from back-of-curb to back-of-curb (2 feet wider than the existing street) using B618 concrete curb and gutter, a bituminous pavement section of 3½“ bituminous pavement over 6” of modified class 5 aggregate base, an improved storm sewer system, and a designated on-street parking lane along one side of the streets (north and east sides), including signing and striping to designate the on-street parking lane.  No centerline or edge striping is proposed but NO PARKING signs are proposed along the side of the streets without designated on-street parking (south and west sides).  This design provides a compromise allowing the City to meet Minnesota Department of Transportation (MnDOT) State Aid standards, while also addressing comments received from the Northfork property owners regarding keeping street widths as narrow as practical to minimize traffic speeds and the loss of mature boulevard trees.
 
Public utilities do not exist within these street corridors and the City has no plans to serve this area with public utilities so sanitary sewer and watermain improvements were not included with this project.

Anoka County requires that assessments be certified to the County Auditor by November 30th for collection on next year’s taxes.  This deadline will be met by conducting the Assessment Hearing at the October 25th City Council meeting, which will also allow adequate time for the publication and mailing of notices.
 
Following Council approval, an Assessment Hearing Notice will be published in the City’s official newspaper on Friday, September 30th, and Assessment Hearing Notices will be mailed to all benefiting property owners as required per Minnesota State Statute Chapter 429.

Observations:
Construction is still in progress but Staff anticipates the project will be substantially complete by the time the Assessment Hearing is held on October 25^th.
 
Alternatives:
Alternative Action #1 – Motion to adopt Resolution #16-09-175 ordering the preparation of an assessment roll and calling for an Assessment Hearing for Andrie Street and 164th Lane Reconstruction; Improvement Project 16-00 Division C on October 25^th, 2016.

Alternative Action #2 – Motion to deny adoption of Resolution #16-09-175 at this time.

This improvement project is included in the City’s 5-year Capital Improvement Plan for construction in 2016.  Funding is proposed to include a combination of street reconstruction bond funds, special assessments to benefiting properties, and stormwater utility funds.

The contract amount for this project (Douglas-Kerr Underground, LLC) is $1,568,162.65 which is $421,712.45 below the engineer’s construction cost estimate of $1,989,875.10.  Final project costs, which include actual construction costs and indirect costs covering administrative, engineering, finance and legal fees, are estimated to be $1,928,840.06 using 23% of construction costs for an indirect cost estimate.  This estimated cost assumes no significant quantity revisions or change orders will occur before construction is complete.  A detailed breakout of project costs will be presented during the Assessment Hearing.
 
Special assessments for this project are based solely on eligible project costs which do not include costs related to oversizing the existing street, either in width or pavement thickness as required to meet MnDOT State Aid standards.  Estimated costs required for oversizing the streets to meet State Aid standards, which includes costs to widen the street by 2 feet and to increase the pavement section to a 10-ton design, total $203,358.75 based on bid prices.  The estimated assessable project cost per bid prices is therefore $1,725,481.31.  This results in a total project assessment amount of $431,370.33 based on 25% of eligible project costs, and individual assessments of $6,636.47 per parcel based on 65 benefiting properties. This assumes final project costs will be equal to bid prices and that assessments are approved by Council at 25% of final eligible construction costs.  The preliminarily approved assessment amount was $9,150 per parcel.
 

Staff recommends Alternative Action #1.

Motion to adopt Resolution #16-09-175 ordering the preparation of an assessment roll and calling for an Assessment Hearing for Andrie Street and 164th Lane Reconstruction; Improvement Project 16-00 Division C on October 25th, 2016.