PUBLIC HEARING: Adopt Resolution #17-11-286 Approving Feasibility Report and Ordering Plans and Specifications for Improvement Project #18-01, The North Forty Street Reconstructions 

Purpose:
The purpose of this case is to adopt Resolution #17-11-286 approving Feasibility Report and ordering Plans and Specifications for Improvement Project #18-01, North Forty Street Reconstructions.

Background:
City Improvement Project #18-01 proposes to reconstruct four street segments within the North Forty residential neighborhood including;

• 163^rd Lane between Armstrong Boulevard and Alpaca Street,
• Alpaca Street between 163rd Lane and 165th Avenue,
• Chameleon Street between 163rd Lane and 164th Lane, and
• 164^th Lane between Chameleon Street and the termini cul-de-sac.

These street segments total approximately 2,750 linear feet in length.  A map showing the location and scope of the proposed improvements is included in the Feasibility Report as Figure 1 in Appendix A, which is included as an attachment to this case.
 
These street segments were constructed in 1989.  Per field observations, record plan documents, and results from Braun Intertec’s geotechnical report and ground penetrating radar (GPR) analysis, the bituminous pavement section ranges from 1.3 to 3.7 inches thick with an average of 2.2 inches, the aggregate base ranges from 1.4 to 8.4 inches thick with an average of 4.4 inches, and the pavement section was built on sandy subgrade material, generally considered suitable for pavement support.  The streets were constructed with bituminous curb to a width of 30-feet from face-of-curb to face-of-curb, and are generally centered within 66-foot right-of-ways.
 
The storm sewer system consists of a catch basin at the intersection of 163^rd Street and Alpaca, a bituminous flume between 16420 and 16450 Alpaca Street, a bituminous flume at 16427 Chameleon Street, and a bituminous flume on the cul-de-sac on 164^th Lane.  The storm sewer systems drain to 3 low-lying areas located within drainage and utility easements.
 
City staff evaluates and rates the condition of pavement sections on all City streets on an annual basis using the Pavement Surface Evaluation and Rating (PASER) system.  In the summer of 2017, the pavement sections of these street segments were rated with a PASER rating of 4, indicating that these streets require complete reconstruction.  City staff patch the streets annually, particularly before winter so the streets can be plowed without further damaging pavement in the process.  Pictures of the street are included in Appendix A of the Feasibility Report.
 
Proposed improvements include removing existing bituminous curb and replacing with B618 concrete curb and gutter, and reconstructing the existing bituminous pavement section using the Full Depth Reclamation (FDR) process.  The FDR process involves milling the entire existing bituminous pavement section, along with an inch or more of existing underlying aggregate base. This reclaim material would then be spread over the reshaped and compacted subgrade between the concrete curb and gutter, and then the top 3½ inches of reclaim material would be removed and hauled off site.  Then 3½ inches of new bituminous pavement would be installed over the remaining compacted reclaim material, resulting in a 7-ton pavement design, which is standard for residential streets.
 
The existing storm sewer system is proposed to be improved to meet City design standards.  This will include additional catch basins placed along the roadway, and replacing existing bituminous flumes, where possible. 
 
The engineer’s opinion of probable costs for completing the proposed improvements on the North Forty as outlined in this report is $518,685.13.  Estimated costs include 5% 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 Feasibility Report.
 
Fifteen (15) parcels have been identified as receiving special benefit from the improvements.  These parcels are identified in the preliminary Assessment Map and Roll, which are included in Appendix C of the Feasibility Report.  Staff recommends assessing 25-percent of eligible improvement costs equally across these 15 parcels using the “per lot” assessment method.  This results in a proposed preliminary assessment rate of $8,644.75 per assessable parcel.
 
Staff recommends ordering a special benefit consultation report for this project to verify the proposed assessment amount will not exceed the benefit to the properties.  If the report concludes 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 9, 2018.  If the report verifies the assessment rate as proposed is justified, Staff will propose to adopt the final assessment roll using the rate as preliminarily proposed.
 
Five soil borings were completed by Braun Intertec to assist with the preparation of this report.  Pavement design recommendations were offered by Braun Intertec, and Staff considered and incorporated to varying degrees while preparing the report.  Ground Penetrating Radar (GPR) was conducted on all street segments within the project.  The GPR identifies existing bituminous pavement and aggregate base thicknesses, and is used to help staff determine the appropriate treatment.  Copies of Braun Intertec’s GPR results and Geotechnical Exploration report are included in Appendix C of the Feasibility Report.
 
This improvement project, which is listed in the City’s current 10-year Capital Improvement Plan, is proposed to be funded using a combination of special assessments to benefiting properties, street reconstruction bond proceeds, and storm sewer funds.
 
This project would best be constructed in conjunction with the River’s Bend Street Reconstructions and the Stanhope Terrace Street Reconstructions projects, is necessary, feasible, and cost-effective from an engineering standpoint, and can be constructed as proposed herein.

In accordance with State Statutes, the attached Notice of Public Hearing was published in the Anoka Union Herald on October 27 and November 3, 2017, and Public Hearing Notices were mailed to all benefiting property owners identified in the preliminary assessment roll.

Observations:
The proposed improvements should have a serviceable life of 60 years, assuming that proactive, regular pavement maintenance treatments are performed during the life of the improvements.
 
Developed properties along the project corridor may have private irrigation systems. Impacts to these systems may occur when existing bituminous curb and gutter is replaced with concrete curb and gutter. Staff will notify property owners in writing of the pending construction as far in advance of construction as possible to allow them time to move their irrigation system components out of the construction area, after which they may replace the components in their original locations.
 
Public Comment
On November 1, 2017, Staff conducted a Public Information Meeting from 5:30 - 7:10 pm at City Hall.  Notices for this meeting were mailed to all benefiting property owners.  Eleven (11) property owners attended the meeting.  The meeting was conducted as an open house forum, with Staff responding to questions one-on-one from 5:30 – 6:05 pm, and again from 6:50 – 7:10 pm.  A formal presentation was provided by Staff from 6:05 – 6:50 pm, which addressed all aspects of the project including project purpose, scope, and schedule, existing conditions, proposed improvements, estimated project costs, proposed funding sources, including special assessments, and a primer on the Public Hearing.  Numerous comments were received during this meeting as summarized below.
 
Similar to the other two meetings, one of the main comments was that it is difficult for property owners to pay special assessments, especially when they are as high as the assessment being proposed with this project.  Property owners generally do not budget for assessments.  Special assessments also make it difficult to sell your property.  In general, those in attendance were opposed to paying special assessments and felt these projects would be better funded through the general fund.
 
Attendees also questioned the addition of concrete curb and gutter, noting that the existing bituminous curb has been in place for 28 years and is not falling apart yet.  Staff responded that while bituminous curb exists on numerous streets throughout the City, the observed life expectancy is typically much less than that of concrete curb and gutter, and that concrete curb and gutter better directs snow plow drivers increasing safety and preventing damage to sod, mailboxes, landscaping, irrigation system components, etc.  Concrete curb and gutter also better directs drainage along the edges of streets and driveways, and does not degrade over time as bituminous gutters do.  Another common comment was that adding concrete curb and gutter would be completely out of context for this neighborhood.
 
Another question received was why the City is not paving gravel streets first.  Why spend money on streets that are already paved when other streets are not paved yet?  Staff noted that gravel roads do not fail in a similar manner as paved roads and are therefore not as high a priority as paved roads when it comes to maintaining all 180 miles of public roads in the City.
 
Another question raised was what guarantee do the property owners who are being assessed for this work have that the new street will be maintained properly to protect their investment?  Several property owners are concerned about this based on the lack of previous maintenance completed on these streets after they were first paved.  The property owners asked what the City’s plan is for maintaining these and other streets throughout the City.  Staff responded that current Staff and City Council are committed to maintaining the public streets, as evidenced by the $500,000 that is budgeted annually for sealcoating to help proactively maintain public streets, as well as the 5-year Street Reconstruction and Overlay Bond program.  The property owners agreed this is a good start, but they are still concerned that this will change over time as Council members change.    
 
Questions were also posed regarding property owner’s rights for opposing assessments. Staff briefly discussed Chapter 8 of the City Charter, including the right to petition against a project. One resident requested a petition form template, which was emailed to them the following day, along with a link to the City Charter on the City’s web site.
 
Attached is a copy of 3 comment cards received during the Public Information Meeting containing additional information.
 
Any comments received after this case was prepared will be presented to Council before the Public Hearing is opened.

Alternatives:
Alternative #1 – Motion to adopt Resolution #17-11-286 approving Feasibility Report and ordering Plans and Specifications for Improvement Project #18-01, North Forty Street Reconstructions.

Alternative #2 – Motion to deny adoption of Resolution #17-11-286 at this time.

The Feasibility Report was completed in-house as part of Staff’s regular duties.

The current Capital Improvement Plan (CIP) estimates costs for reconstructing these streets at $900,000.

Per the attached Feasibility Report, the engineer’s opinion of probable project costs is $518,685.13.  A total of 15 residential parcels will benefit from the proposed improvements and are preliminarily proposed to be assessed for 25-percent of eligible project costs which totals $129,671.28.  This equates to preliminary assessments of $8,644.75 per parcel. The City will fund the remaining 75-percent of project costs, which totals $389,013.85.  The City’s costs will be funded using Street Reconstruction and Overlay Program bond funds, as well as a Stormwater Utility Funds.
 
Assessments are proposed to be assessed over a term of ten years, with interest rates proposed at two percent above the bond interest rate.
 
Staff proposes to request Council authorization to order a benefit appraisal consultation for this project in accordance with the City’s Special Assessments Policy at the time Council awards a construction contract.

Staff recommends Alternative #1 to allow the project to be constructed as part of the 2018 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 Chapter 8 of the City Charter, the City’s Special Assessments Policy, and Minnesota Statute Chapter 429.

Motion to adopt Resolution #17-11-286 approving Feasibility Report and ordering Plans and Specifications for Improvement Project #18-01, North Forty Street Reconstructions.