PUBLIC HEARING: Adopt Resolution #17-03-057 Accepting Feasibility Report and Ordering Plans and Specifications for Improvement Project #17-00, Sunwood Drive Reconstruction

Purpose:
The purpose of this case is to conduct a Public Hearing and adopt Resolution #17-03-057 accepting the Feasibility Report and ordering Plans and Specifications for Improvement Project #17-00, Sunwood Drive Reconstruction.

Background:
City Improvement Project 17-00 proposes to reconstruct Sunwood Drive between Ramsey Boulevard/County State Aid Highway (CSAH) 56 and Bunker Lake Boulevard /County Road 116 which totals approximately 3,050 linear feet (0.58 miles). A map showing the scope of the proposed improvements is included as Figure 1 in Appendix A of the attached Feasibility Report.

City staff annually evaluates and rates the pavement condition of all city streets using the Pavement and Surface Evaluation Rating (PASER) system. In the fall of 2016, this segment of Sunwood Drive received PASER ratings of 3 to 4, meaning the pavement is in poor to very poor condition requiring complete reconstruction.  Pictures of the existing pavement are located in Appendix A of the attached Feasibility Report.

Existing Conditions
Based on record plans, this segment of Sunwood Drive was constructed in 1996 using B618 concrete curb and gutter at a consistent width of 40 feet from face-of-curb to face-of-curb, centered within an 80 foot wide right-of-way. Record plans show that 3½ inches of bituminous pavement was constructed over 5 inches of class 5 aggregate base. However, recently completed soil borings and pavement corings revealed an average of about 4¾ inches of bituminous pavement along the corridor. Eight (8) foot wide parking lanes are delineated along both sides of the street using 4 inch wide white striping.

The existing storm sewer system consists of concrete catch basins and pipes which drain runoff from the street to adjacent low-lying areas. Sanitary sewer and watermain also exist under the pavement.

An off-street bituminous trail exists along the north side of Sunwood Drive but the trail is in relatively good condition so no improvements are proposed to the trail as part of this project.

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). Copies of WSB’s and NTI’s reports are included in Appendix D of the attached Feasibility Report.

Proposed Improvements
Damaged sections of existing concrete curb and gutter will be removed and replaced, as will concrete cross gutters at driveways and intersections which facilitate drainage preventing pockets of standing water which freeze in the winter causing unsafe conditions for drivers and pedestrians.

The existing bituminous pavement is proposed to be reconstructed using a process called Stabilized Full Depth Reclamation (SFDR).  The proposed SFDR process includes milling the top 3 inches or so of existing bituminous pavement and disposing of the millings off site. All remaining existing bituminous pavement is proposed to be reclaimed (ground up and mixed) with the existing class 5 aggregate base (about 1 inch of reclaim material will need to be hauled off site to make grades work).  The reclaim material will then be spread on top of the existing subgrade and a stabilizing agent will be added to increase its strength. The stabilized reclaim material will be shaped and compacted into a 5 inch lift, after which 4 inches of new bituminous pavement will be placed on top. The new pavement section will 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 current State Aid design standards.  No storm sewer improvements are therefore proposed, other than casting adjustments.

The existing sanitary sewer and watermain appear to be in good condition but inspections will be completed during final design to ensure no repairs are needed prior to completing the proposed improvements.

Estimated Costs
The engineer’s opinion of probable costs for completing the proposed improvements on Sunwood Drive as outlined in the attached draft Feasibility 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 Feasibility Report.

Funding Sources
The improvements are proposed to be funded using a combination of funds.  These funds include an estimated $447,950 in Street Reconstruction and Overlay Program (SROP) bond funds which will be paid back over a 10 year term through the general fund, an estimated $7,300 in stormwater utility funds, and $151,750 is proposed to be collected from special assessments to benefiting properties which equals 25% of eligible construction costs as allowed per the City’s adopted Special Assessments Policy. A total of 9 parcels receive special benefit from the improvements as identified in the preliminary assessment map and roll in the Feasibility Report.

Special Assessments
The City’s adopted Special Assessments Policy specifies that special assessments are to be used to pay for 25% of eligible street reconstruction improvement costs, which equals $151,750 for this project. Preliminary assessments are calculated using methods that result in reasonable and equitable distribution of assessments that are uniform upon the same class of properties within the assessable area. The test for determining the validity of a special assessment is whether the improvement for which the assessment was levied has increased the market value of the property against which the assessment was levied in at least the amount of the assessment.

Ramsey’s Special Assessments Policy identifies three optional methods for calculating assessments. The 9 identified benefiting properties on this project are zoned E1 or E2 (industrial) so only two assessment methods are recommended; the “adjusted front footage” method and the “area” method. Staff originally considered impacts of both methods as they would be applied in the current context of the policy.  The adjusted front footage method results in less variability between assessments ($9K - $40K), while the area method results in greater variability ($3K - $42K).  Staff initially recommended using the area method since it appeared to better assign benefit based on lot geometry, which seemed to make sense for this project considering the significant differences in lot depths along the corridor.  However, based on feedback received from the consulting appraisal firm that prepared the benefit appraisal consultation reports for recent street reconstruction projects in Ramsey, Patchin Messner Dodd and Brumm, and based on feedback received from staff from other cities that have assessed industrial parcels for street reconstruction improvements, staff now recommends using the adjusted front footage method.
 
Staff therefore calculated preliminary special assessments using the front footage method as shown in the preliminary assessment roll.  Then, Patchin Messner Dodd and Brumm calculated estimated special benefits for each assessable property which was also added to the preliminary assessment roll.  The lesser of the calculated front footage assessment and the estimated special benefit was then used for the proposed preliminary assessment for each assessable property as shown in the Feasibility Report.

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 and are therefore equivalent sections.

Public Input
Staff has met with 6 of the 7 assessable property owners to discuss the proposed improvements and the preliminary assessment roll.  All generally understood the need for the improvements, and only Connexus Energy appears to have significant concerns with the preliminary assessments as proposed in the Feasibility Report.  Connexus Energy concerns are based on the fact that the parcel proposed to be assessed in undeveloped.  Staff met with Connexus Energy representatives on several occasions to discuss the amount of their assessment.  However, based on feedback received from staff from other cities that utilize assessments, as well as from our consulting appraiser, Patchin Messner Dodd and Brumm, staff recommends adopting the preliminary assessments as proposed within the Feasibility Report. To the best of Staff’s knowledge, no City assesses properties differently based on the development status.  All assessments are calculated based on the highest and best use of the properties.

Below is a general summary of comments received from assessable property owners through Thursday, March 9th.  If new comments are received before the Public Hearing staff will present the comments to Council prior to the hearing.
 

• Anderson Dahlen – No feedback has been received from the property owner despite numerous contacts.
• Altron, Inc. – Does not appear to oppose the proposed improvements or their proposed preliminary assessment.
• B & F Fastener Supply – Does not appear to oppose the proposed improvements or their proposed preliminary assessment.
• Class C Components – Does not appear to oppose the proposed improvements or their proposed preliminary assessment.
• Connexus Energy – Does not appear to oppose the proposed improvements but appears to have concerns with the amount of their proposed preliminary assessment based on the undeveloped status of the parcel being assessed.
• In’Tech, Industries – Does not appear to oppose the proposed improvements or their proposed preliminary assessment.
• Vision Ease – Does not appear to oppose the proposed improvements or their proposed preliminary assessment.

Public Hearing Notices were published in the Anoka Union Herald on January 27^th and February 3^rd, 2017, were mailed directly to all assessable property owners, and is posted in City Hall as required by State Statute.  Postponing the public hearing did not require additional mailings, postings, or publications.

Observations:
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 in the Feasibility Report.

The proposed pavement design should provide a useful life of 30 years or more, assuming proactive, regular pavement maintenance treatments are performed throughout the life of the pavement.  While a 60-year design life is typically targeted for reconstructed streets, this project is not proposing a full reconstruction due to the good condition of the majority of existing 20 year old curb and gutter.  At the time the existing concrete curb and gutter that is left in place needs to be reconstructed, which should not occur for 30 years or more, Staff will evaluate whether it would be cost-effective to reconstruct the pavement section again or simply remove and replace the curb and gutter.

Alternatives:
Alternative #1 – Motion to adopt Resolution #17-03-057 accepting the Feasibility Report and ordering Plans and Specifications for Improvement Project #17-00, Sunwood Drive Reconstruction.

Alternative #2 – Motion to deny adoption of Resolution #17-03-057 at this time.

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

The engineer’s opinion of probable costs for the proposed improvements on Sunwood Drive as outlined in the Feasibility Report is $607,000. Assessable industrial parcels are preliminarily proposed to be assessed up to 25 percent of eligible estimated project costs, which are preliminarily estimated at $133,779.60. The City will pay the remaining 75% or more of project costs using the Street Reconstruction and Overlay Program bond funds, estimated at $465,920.40, and another $7,300 from the stormwater utility funds.

NTI completed a Geotechnical Exploration and Engineering Review at a cost of $4,400 which is included in Appendix D of the Feasibility Report. WSB and Associates, Inc. completed Pavement Evaluations and Recommendations at a not-to-exceed cost of $2,687.50 which is also included in Appendix D.

Staff recommends approval of Alternative #1.

Motion to adopt Resolution #17-03-057 accepting the Feasibility Report and ordering Plans and Specifications for Improvement Project #17-00, Sunwood Drive Reconstruction.