Adopt Resolution #17-01-028 Accepting Feasibility Report/Ordering Public Hearing for Improvement Project #17-00, Sunwood Drive Reconstruction

Purpose:
The purpose of this case is to adopt Resolution #17-01-028 accepting the Feasibility Report and ordering a public hearing for Improvement Project #17-00, Sunwood Drive Reconstruction.

Background:
City Improvement Project 17-00 proposes to reconstruct Sunwood Drive between Ramsey Boulevard/CSAH 56 and Bunker Lake Boulevard /CSAH 116 which totals approximately 3,050 linear feet (0.58 miles) in length.  A map showing the location and scope of the proposed improvements is included as Figure 1 in Appendix A of the attached Feasibility Report.
 
This segment of Sunwood Drive was constructed in 1996 with 3.5 inches bituminous pavement, 5 inches class 5 aggregate base, B618 concrete curb and gutter, and concrete storm sewer.  The street was constructed to a width of 40 feet from face-of-curb to face-of-curb, and is centered within an 80 foot wide right-of-way.  The storm sewer system consists of numerous catch basins which drain runoff from the street to adjacent low-lying areas using concrete storm sewer pipes.
 
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 2016, this segment of Sunwood Drive was rated with PASER ratings of 3 and 4, depending on location, which indicates this street is past the point of applying mill and overlay improvements. The current condition of this street requires City staff to patch the street at least once per year, particularly before winter so the street can be plowed without further damaging the pavement in the process.  Pictures of this street segment are located in Appendix A of the attached Feasibility Report.
 
Proposed improvements include removing and replacing all damaged concrete curb and gutter sections, and reconstructing the existing bituminous pavement section using a process called Stabilized Full Depth Reclamation, or SFDR.  For this project, the SFDR process would involve milling the top 3 inches of existing bituminous pavement and disposing of the millings off site.  The remaining 1-plus inch of existing bituminous pavement would then be ground up and mixed with 2 inches of the existing aggregate base.  This reclaim material would then be placed on top of the reshaped and compacted subgrade, after which an asphalt emulsion stabilizer would be injected and mixed into the reclaim material.  This stabilized reclaim material would be placed and compacted on top of the subgrade, then 4 inches of new bituminous pavement would be placed on top.  This would result in a 10-ton pavement design meeting current State Aid pavement design standards.
 
The existing storm sewer system is in good condition and based on preliminary review appears to meet all applicable current State Aid design standards so no improvements are proposed.
 
An off-street 10 foot bituminous bike trail exists along the north side of Sunwood Drive and is in relatively good condition so no improvements are proposed with this project.
 
The engineer’s opinion of probable costs for completing the proposed improvements on Sunwood Drive as outlined in this report is $607,000.  Estimated costs include 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.
 
A total of 9 parcels have been identified as receiving special benefit from the improvements. These parcels are identified in the preliminary Assessment Map and Roll which are in Appendix C of the attached Feasibility Report.
 
A total of four pavement corings were completed by WSB and Associates (WSB) to assist with the preparation of this report.  In addition, eleven soil borings were completed by Northern Technologies, Inc. (NTI).  Both firms offered pavement design recommendations which were considered and incorporated to varying degrees while preparing this report. Copies of WSB’s and NTI’s reports are in Appendix D of the attached Feasibility Report.
 
This improvement project, which is listed in the City’s current Capital Improvement Program, is proposed to be funded using a combination of special assessments to benefiting properties, street reconstruction bond proceeds, and stormwater utility funds.
 
Staff recommends using special assessments to pay for 25% of eligible improvement costs, which totals $151,750 and will be applied across 9 assessable properties using the “area” method of assessment.  All costs for this project are eligible for special assessments since the street is proposed to be reconstructed at its existing width, which meets current State Aid standards, and since the existing and proposed pavement sections both meet 10-ton design standards meaning they are equivalent sections.  This project does not include any ineligible project costs related to the use of special assessments.
 
Staff recommends ordering a special benefit consultation report for this project to verify that the proposed assessment amounts will not exceed the amount of benefit to any of these properties. If the report concludes that the benefit to any property is less than the proposed preliminary assessment rate, Staff would propose to lower the assessment rate accordingly for the Assessment Hearing scheduled for October 10, 2017.  However, if the special benefit consultation report verifies that the assessment rates as proposed are justified, Staff will propose to adopt the final assessment roll using the rate as preliminarily proposed herein.
 
Staff has not yet had an opportunity to discuss the proposed improvements or the use of special assessments to pay for a portion of the improvements with impacted property owners.  However, upon Council acceptance of this report Staff will immediately contact impacted property owners for the purpose of explaining the proposed improvements, how special assessments are proposed to be applied, and to request a meeting to discuss the proposed improvements in more detail and to gather their input on the project, including any information that should be explored in more detail during development of plans and specifications. Staff will then present this information to Council during the Public Hearing on February 14th.
 
This project would best be constructed as a stand-alone 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:
The proposed pavement design should result in a minimum pavement life of 30 years, assuming that proactive, regular pavement maintenance treatments are performed during the life of the pavement.  While a 60-year design life would typically be targeted for a reconstructed street, this project is not proposing a full reconstruction due to the good condition of the majority of existing 20 year old curb and gutter.  Therefore, only the aggregate base and bituminous are proposed to be reconstructed at this time as it may make sense to replace the pavement section at the time the rest of the existing curb and gutter is replaced, which may be 30 or more years in the future.
 
Developed properties along the project corridor may have private irrigation systems.  Impacts to these systems may occur where the existing curb and gutter is being replaced.  On past street reconstruction projects, the City repaired private irrigation systems that were damaged as part of the project.  Staff recommends foregoing this practice on future projects.  Instead, staff recommends notifying property owners in writing of the pending construction as far in advance of construction as possible to allow them to move their irrigation systems out of the construction area, and then replace it once work is complete.

Alternatives:
Alternative #1 – Motion to adopt Resolution #17-01-028 accepting the Feasibility Report and ordering a public hearing for Improvement Project #17-00, Sunwood Drive Reconstruction.

Alternative #2 – Motion to adopt Resolution #17-01-028 accepting the Feasibility Report and ordering a public hearing for Improvement Project #17-00, Sunwood Drive Reconstruction, with the following modifications; __________.

Alternative #3 – Motion to deny adoption of Resolution #17-01-028 at this time.

City staff prepared the Feasibility Report in-house as part of staff’s normal duties.
 
NTI prepared the Geotechnical Exploration and Engineering Review, included in Appendix D, at a cost of $4,400.  WSB and Associates, Inc. prepared the Pavement Evaluations and Recommendations included in Appendix D, at a not-to-exceed cost of $2,687.50.
 
The engineer’s opinion of probable project costs totals $607,000.  Assessable industrial parcels are preliminarily proposed to be assessed for 25 percent of eligible project costs, which total $151,750.   The City will pay for the remaining 75% of project costs, with funds coming from the 5 year Street Reconstruction and Overlay Program bond funds, and from stormwater utility funds.

Staff recommends selecting Alternative Action #1 to allow the project to be developed in a timely manner for construction in 2017.
 
It is the recommendation of City staff that City Project No. 17-00 is feasible, necessary, and cost-effective from an engineering standpoint, and that this project would best be constructed as a stand-alone project as proposed herein.
 
The following Staff recommendations related to the proposed project are presented for Council consideration and concurrence:
 
 

1. Staff recommends reconstructing the segment of Sunwood Drive between Ramsey Boulevard/CSAH 56 and Bunker Lake Boulevard /CSAH 116 as proposed herein in 2017 thereby meeting current State Aid design standards and allowing all project costs to be eligible for the use of special assessments per the City’s Special Assessments Policy.

 
 

2. Staff recommends ordering an assessment appraisal consultation report to ensure that the preliminary special assessments proposed herein will not exceed the benefit received as a result of the improvements in accordance with the City’s Special Assessments Policy.

 
 

3. Staff recommends reconstructing the off-road bike trail along the north side of Sunwood Drive at a later date pending adoption of the City’s Trail Maintenance Policy/Program.

 
 

4. Staff recommends excluding private irrigation system work from this project, and from all future City Improvement Projects, and instead recommends notifying property owners of pending construction as far in advance as possible and instructing them to relocate the irrigation system(s) away from the construction area during construction, then allow replacement in or near the original location after construction is complete.

 
 

5. Staff recommends meeting with all owners of assessable properties, and all area business owners, to inform them of the proposed improvements, the proposed use of special assessments, and to gather their input prior to conducting the Public Hearing and requesting Council authorization to prepare plans and specifications on February 14th.

Motion to adopt Resolution #17-01-028 accepting the Feasibility Report and ordering a public hearing for Improvement Project #17-00, Sunwood Drive Reconstruction, for February 14, 2017.