Adopt Resolution #18-218 Accepting Feasibility Report for Improvement Project #18-02, HY-10 Ramsey Street Reconstructions

Purpose:
The purpose of this case is to adopt Resolution #18-218 accepting the Feasibility Report for Improvement Project #18-02, HY-10 Ramsey Street Reconstructions.

Background:
City Improvement Project No. 18-02 proposes to reconstruct streets within the HY-10 Ramsey neighborhood including 146th Avenue, 147th Avenue, and Ferret Street. The streets total approximately 1,400 linear feet (0.27 miles) in length. A map showing the location and scope of the proposed improvements is included as Figure 1 in Appendix A in the attached Feasibility Report.
 
The streets were constructed in 1988 with bituminous curb to a width of 40 feet from face-of-curb to face-of-curb, and are generally centered within a 66-foot wide right-of-way.  However, during the Highway 10/Armstrong Interchange project the west end of 146th Avenue was reconstructed and a temporary cul-de-sac was constructed.
 
The storm sewer system consists of openings in the bituminous curb at the north end of the Ferret Street cul-de-sac and the east end of the 146th Avenue cul-de-sac. Utility easements exist north of Ferret Street and along the northern boundary of the eastern Ferret Street cul-de-sac which has shallow ditches leading towards Armstrong Boulevard. Storm runoff from 147th Avenue is collected in catch basins placed as part of the 2012 Sunwood Drive re-alignment project, and is carried under Armstrong Boulevard to existing regional ponds.
 
The existing bituminous pavement section ranges from 1.6 to 6.1 inches thick, with an average thickness of 2.9 inches, and the aggregate base ranges from 4.3 to 15.5 inches thick, with an average thickness of 9.7 inches. This was determined from Ground Penetrating Radar (GPR) analysis performed by Braun Intertec in 2017, as well as from field observations and record plan documents. Copies of Braun Intertec’s GPR results are attached in Appendix C. The pavement section was built on sandy subgrade material generally considered suitable for pavement support.
 
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 2 which indicates these streets require complete reconstruction.  City staff patch the streets at least once per year, particularly before winter so the street can be plowed without further damaging the pavement in the process. Pictures of the street are located in Appendix A in the attached Feasbility Report.
 
On July 11, 2017, the City Council adopted Resolution #17-07-170 authorizing the preparation of a Feasibility Report for the reconstruction of HY-10 Ramsey. These streets were originally included in the City’s CIP as proposed 2015 overlay improvements. However, the overlay work was delayed when construction of the Highway 10 & Armstrong Boulevard Interchange was funded. Then following completion of the Interchange, the pavement was re-evaluated and Staff determined it would be best to reconstruct these streets in the future.  This project is now listed in the current 10-year CIP as a total reconstruction.
 
Upon ordering the Feasibility Report, the City Council directed Staff to review the existing street alignments and explore whether the streets should be reconstructed in the same locations, or whether it might make sense to realign or extend one or more of the streets to better serve existing properties and/or to connect to the new Bunker Lake Industrial Park.
 
Engineering Staff explored numerous alternative street alignments and/or extensions.  In May of 2018, the Development Review Committee (DRC), consisting of Staff from various departments, reviewed several design alternatives and recommended the following.  Reconstruct all streets in their current footprints using pavement sections similar to the existing sections, and replace all existing bituminous curb on 146th Avenue and Ferret Street.  The DRC also recommended extending the existing watermain 147th Avenue to the west side of Ferret Street since 147th Avenue will likely not be modified during redevelopment, and construct concrete curb and gutter along 147th Avenue to Ferret Street.  Due to the uncertainty of future redevelopment scenarios, Staff determined there are too many unknowns to justify the expense of realigning or extending any of the streets at this time.
 
This Feasibility Report proposes to reconstruct the existing bituminous pavement section using the Full Depth Reclamation (FDR) process. This process generally involves reclaiming the entire existing bituminous pavement section, along with an inch or more of the existing aggregate base material. A portion of this reclaim (ground and mixed) material is proposed to be spread and compacted on top of the reshaped and compacted existing aggregate base.  Three and one-half inches of bituminous pavement is proposed to be placed on top of a minimum of 6 inches of aggregate base/reclaim material.  This pavement section generally meets the existing pavement section on these streets, and would generally meet the City of Ramsey’s standard pavement design for residential streets.
 
Though the design strength of the proposed pavement section may be slightly less than a typical industrial park pavement section, Staff believes it will provide a useful life of at least 30 years based on the life achieved by the existing pavement section.  And due to the large number of parcels currently on the market in this development, Staff believes there is great potential for redevelop of HY-10 Ramsey within the next 10 to 20 years, which could result in the potential realignment of streets.
 
The engineer’s opinion of probable costs including streets, drainage, and public water utilities is $287,646.45. Estimated costs include 10-percent contingency costs plus 23-percent indirect costs for administrative, engineering, finance and legal costs. A summary of the engineer’s opinion of probable costs is included in Appendix B in the attached Feasibility Report.
 
The project is proposed to be funded using a combination of special assessments to benefitting properties, street reconstruction bond proceeds, and stormwater utility funds. Sewer and Water Utility Funds would be used to pay for any public utility improvements.
 
Nine (9) parcels have been identified as receiving special benefit from the improvements. Four of the parcels have permanent structures, and the other five are undeveloped. Several of these parcels are currently listed for sale, including two City-owned parcels. These parcels are identified in the preliminary Assessment Map and Roll, which is attached in Appendix C.
 
Assessments were calculated using the area method, which is typically used for commercial applications. 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 proposed for October 8, 2019. 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.
 
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.
 
On August 28, 2018, the City Council adopted Resolution #18-174 accepting the draft Feasibility Report and ordering a public input meeting for the reconstruction of HY-10 Ramsey. Staff conducted a public input meeting on September 13, 2018 with the intent of explaining the proposed improvements, estimated costs, and funding program, including the use of special assessments, but even though meeting notices were mailed to all owners of benefiting properties, which included all properties having access onto street segments proposed to be improved, none of the property owners attended the meeting, or called in advance to discuss the project.
 
Following the public input meeting, Staff was contacted by two benefiting property owners.  Both stated they would be opposed to reconstructing the streets at this time due to the uncertainties associated with the future redevelopment potential.  The property owners stated they are fine with the condition of the pavement as is, and asked if the City had received any complaints from other property owners.  Staff has not received any such complaints, and believes this development will redevelop within the next 10 to 20 years, and that new streets will be required because of redevelopment.  For these reasons, Staff recommends that this project be shelved until such time that it is no longer needed, or until the property owners request that the streets be repaired.

Notifications are not required for this case.

This project could be constructed in 2019 and funded through 5-year Street Reconstruction Overlay Program bondss.  However,  Staff recommedns not reconstructing these streets at this time in light of the high potential for redevelopment.

Alternatives:
Alternative #1– Motion to adopt Resolution #18-218 Accepting Feasibility Report for Improvement Project #18-02, HY-10 Ramsey Street Reconstructions, along with Staff's recommendation to shelve the project until such time that it is no longer needed or the adjacent property owners request that the streets be repaired.

Alternative #2 – Motion of other.

No funds are required based on Staff's recommendation to shelve the project. 

Staff recommends alternative #1.

Adopt Resolution #18-218 Accepting Feasibility Report for Improvement Project #18-02, HY-10 Ramsey Street Reconstructions, along with Staff's recommendation to shelve the project until such time that it is no longer needed or the adjacent property owners request that the streets be repaired.