Adopt Resolution #18-035 Approving Plans and Specifications and Authorizing Advertisements for Bids for Stanhope Terrace Street Reconstructions, Improvement Project #18-00

Purpose:
The purpose of this case is to adopt Resolution #18-035 approving plans and specifications and authorizing advertisements for bids for Stanhope Terrace Street Reconstructions, Improvement Project #18-00.

Background:
Attached is a copy of the plans prepared by City staff for Improvement Project #18-00, Stanhope Terrace Street Reconstructions.
 
This project proposes to reconstruct three street segments within the Stanhope Terrace residential neighborhood including;

• Ute Street north of Alpine Drive through the cul-de-sac,
• 154^th Lane between Ute Street and Roanoke Street, and
• 153^rd Court west of Roanoke Street through the cul-de-sac.

These street segments total approximately 2,800 feet in length as shown on the title sheet of the attached plans.
 
These streets were constructed in 1991.  Based on 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 1.6 to 6.1 inches thick (average = 2.9 inches), the aggregate base ranges from 2.1 to 10.6 inches thick (average = 4.9 inches), and the pavement section was built on sandy subgrade materials generally considered suitable for pavement support.  The streets were constructed with bituminous curb to a width of 29-feet from face-of-curb to face-of-curb, and are generally centered within 66-foot wide right-of-ways.
 
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 section of the above-referenced street segments were rated with a PASER rating of 3, which indicates these streets require complete reconstruction.  City staff patch these streets annually, particularly before winter so the streets can be plowed without further damaging the pavement.
 
Proposed improvements include removing existing bituminous curb and replacing it with B618 concrete curb and gutter, then 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 generally consists of concrete catch basins and pipes that drain runoff from the streets to adjacent low-lying areas.  Two catch basins are located along 154^th Lane and drain runoff from the street to a low-lying area encumbered by a drainage and utility easement over the northerly 75 feet of 4851 154^th Lane.  Three catch basins are located near the intersection of Ute Street and 154^th Lane.  Any storm water runoff that is not collected in these five catch basins drains to the existing storm sewer systems in Alpine Drive and Roanoke Street.
 
The existing storm sewer system is in good condition and generally meets City design standards.  The only storm sewer work proposed is resetting the castings after replacing adjusting rings and re-grouting the insides of the catch basins.
 
Municipal sanitary sewer and water utilities do not exist in Stanhope Terrace, and the attached plans do not propose to install such utilities.  
 
Proposed project schedule:
February 12 – Approve Plans and Specifications / Authorize Ads for Bids
February 16 & 23 – Publish Ads for Bids (Anoka Union Herald, Finance & Commerce)
March 15 – Public bid opening
March 27 – Accept Bids / Award Contract
Late May / early June – Begin construction
August 31 – Substantial completion (open to traffic)
October 9 – Assessment Hearing
 

Public notifications were not required in advance of this case.

Upon Council authorization to advertise for bids, advertisements will be published in the Anoka Union Herald and in Finance & Commerce on February 16th and 23rd.

Observations:
The proposed improvements should have a serviceable life of 60 years, assuming that proactive maintenance operations are performed regularly during the life of the improvements.
 
Some properties may have private irrigation systems.  Impacts to these systems may occur because of the proposed improvements. 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 away from construction activities.  After the project is complete, property owners may replace irrigation systems in their previous locations if desired.  As previously discussed, all costs to relocate private irrigation system components will be the responsibility of the property owners.  However, if private irrigation systems are damaged due to negligence on the part of the City’s contractor, the contractor will be responsible to repair the damage.
 
As previously discussed, while preparing the Feasibility Report Staff observed that the Ute Street cul-de-sac is not fully located within existing right-of-way, and that no public easements exist over the areas not located within City right-of-way.  Staff has therefore mailed letters to the two impacted property owners informing them of this issue and asking to meet with them to discuss the potential to obtain roadway easements over the outside edges of this cul-de-sac.  Staff will continue to work with the property owners to obtain the necessary roadway easements to allow the City to reconstruct and maintain the cul-de-sac in perpetuity.  If the necessary roadway easements cannot be secured before construction begins, Staff will need to consider an alternate plan.

Alternatives:
Alternative #1 – Motion to adopt Resolution #18-035 approving plans and specifications and authorizing advertisements for bids for Stanhope Terrace Street Reconstructions, Improvement Project #18-00.

Alternative #2 – Motion to deny adoption of Resolution #18-035 at this time.

The engineer’s opinion of probable project costs for the proposed improvements based on final plans and specifications is $447,453.09.  This cost includes 23% indirect costs for administrative, engineering, finance and legal costs.  By comparison, the Feasibility Report estimated project costs at $430,934.81.
 
The improvements are proposed to be funded using a combination of Street Reconstruction and Overlay Program bond funds ($330,054.82), Stormwater Utility Funds ($5,535), and special assessments to benefitting properties ($111,863.27).
 
Sixteen (16) residential parcels use these streets to access their properties and will therefore receive special benefit from the improvements.  Staff proposes to assess up to 25-percent of eligible project costs equally across these 16 parcels using the “per lot” assessment method.  This results in proposed assessments of $6,991.45 per parcel per the current cost estimate.  Last November, assessments were preliminarily adopted in the amount of $6,733.36 per parcel.
 
Final assessment amounts will be proposed based on actual construction costs and the findings of the special benefit consultation report.  Staff will request Council authorization to order a special benefit consultation report for this project in accordance with the City’s Special Assessments Policy at the time Council awards a construction contract.  The purpose of this report is to help verify that assessments will not exceed the benefit to assessed parcels due to the improvements.
 
Staff proposes to let this project for bids at the same time as the River’s Bend Street Reconstructions project with the intent of realizing cost savings due to economies of scale.  Due to their close proximity, contractors will likely bid on both projects, allowing for lower unit bid prices due to increased quantities.

Staff recommends Alternative #1.  This will allow the project to be constructed as part of the 2018 Street Maintenance Program, and will allow for the use of special assessments to pay for up to 25% of eligible 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 #18-035 approving plans and specifications and authorizing advertisements for bids for Stanhope Terrace Street Reconstructions, Improvement Project #18-00.