Adopt Resolution #17-01-016 Ordering Feasibility Report for Improvement Project #17-02, Rivers Bend Street Reconstructions

Purpose:
The purpose of this case is to adopt Resolution #17-01-016 ordering preparation of a Feasibility Report for the Rivers Bend Street Reconstruction improvements, proposed to be completed as part of the 2017 Street Maintenance Program.

Background:
City staff previously identified various street segments whose Pavement and Surface Evaluation Rating (PASER) values indicated that these streets should receive mill and overlay improvements in 2017 to maintain the streets in the most cost-effective manner.  These street segments are listed below, and are generally shown in Figure 1 attached.
 

• 147th Lane – Xkimo Street to Waco Street
• 148th Avenue – Yakima Street to Xkimo Street
• Xkimo Street – 147th Lane to 149th Avenue
• Yakima Street – 148th Avenue to 149th Avenue

On December 13, 2016, Staff requested Council authorization to prepare a Feasibility Report for a proposed 2017 Mill and Overlay Improvements project designated as City Improvement Project #17-02.  As was noted in the case, Staff proposed to complete pavement corings while preparing the Feasibility Report to minimize risks associated with existing pavement thickness issues encountered while overlaying Sunwood Drive in 2016 which resulted in increased project costs. These issues occurred when the milling machine encountered existing pavement that was less than 2” thick.  This resulted in the need to excavate a couple of inches of existing aggregate base material so patches of new bituminous base course could be constructed to provide a surface for the new bituminous wear course to adhere to.  Twelve pavement corings were therefore taken on these streets which unfortunately showed that insufficient pavement exists to complete mill and overlay operations on as originally proposed.
 
Staff is therefore requesting Council authorization to prepare a Feasibility Report for reconstructing the entire existing bituminous pavement section on these streets instead.  Staff will attempt to minimize project costs by replacing only damaged concrete curb and gutter, similar to what was proposed with the mill and overlay improvements.  Staff will also compare estimated costs for completing a traditional pavement removal and replacement project where the existing pavement is broken into chunks and hauled off site, versus a pavement reclamation project where the existing pavement is ground up on site and either hauled away for use on another project, or mixed with some of the existing aggregate base to strengthen the base for the new pavement section, thereby being reused on site.  This analysis will be discussed with Council in detail at the time the Feasibility Report is presented for approval.

The City of Ramsey’s Street Assessments Policy allows 25% of street reconstruction project costs to be assessed against benefiting properties.  Staff is therefore requesting that the City Council order a Feasibility Report for the proposed Rivers Bend Street Reconstruction improvements to meet the requirements of Minnesota Statue Chapter 429 and allow special assessments to be considered as a partial funding source.

No notifications are required for this case.

Observations:
Preparing a Feasibility Report will allow staff to further refine estimated costs and propose a funding program for the proposed improvements, while also allowing the City to consider using special assessments against benefiting properties as a partial funding source for this project.

The Feasibility Report will explore numerous aspects of the proposed improvements including whether they are feasible and necessary, whether they are cost-effective, and whether they should be completed as proposed or in conjunction with some other improvement project. The estimated costs of the proposed improvements will be explored in more detail, as will a project funding program including a description of the methodology used to calculate individual assessments for benefiting parcels. A proposed project schedule will also be identified.

Staff anticipates requesting Council acceptance of the Feasibility Report on January 24th and ordering a Public Hearing for February 14th.  This schedule will allow the project to proceed in a timely manner for 2017 construction, while also complying with all applicable provisions of the City Charter, the City’s Special Assessments Policy, and Minnesota Statute Chapter 429.

Alternatives:
Alternative #1 – Motion to adopt Resolution #17-01-016 ordering a Feasibility Report for Improvement Project #17-02, Rivers Bend Street Reconstructions.

Alternative #2 – Motion to deny adoption of Resolution #17-01-016 at this time.

The Feasibility Report will be completed in-house as part of Staff’s regular duties.  Pavement corings were previously completed which verified that the existing pavement section is insufficient for milling operations. No further expenses are anticipated

The City’s current Capital Improvement Plan (CIP) identifies the streets listed above as proposed 2017 mill and overlay improvements.  Changing the project to a full reconstruct would still allow the City to utilize street reconstruction and overlay bonds to fund the proposed improvements.

The preliminary cost estimate for constructing the proposed Rivers Bend Street Reconstructions project is $225,000.  More details on estimated project costs and funding sources and amounts will be addressed within the Feasibility Report and will be discussed in detail when the Feasibility Report is presented to Council for consideration of approval.
 
Based on 2013 cost estimates, the City of Ramsey is funding approximately $11,000,000 for annual Street Maintenance Program projects over the 5-year period from 2015 to 2019. This equates to an average annual expenditure of $2,200,000 to fund all sealcoat, mill and overlay, and street reconstruction projects. The City currently budgets $500,000 annually for sealcoat projects, leaving $1,700,000 to fund all annual mill and overlay and street reconstruction projects. Per the recently adopted Special Assessments Policy, special assessments may be utilized to fund a portion of mill and overlay and street reconstruction projects. Staff therefore proposes to use street reconstruction and overlay bonds to initially fund this street reconstruction project, after which a portion will be paid back over time using special assessment proceeds.

Staff recommends Alternative #1 to allow the project to be constructed as part of the 2017 Street Maintenance Program, and to allow for the use of special assessments to pay for a portion of the project costs per the applicable provisions of the City Charter, the City’s Special Assessments Policy, and Minnesota Statute Chapter 429.

Motion to adopt Resolution #17-01-016 ordering a Feasibility Report for Improvement Project #17-02, Rivers Bend Street Reconstructions.