PUBLIC HEARING: Adopt Resolution #18-230 Approving Feasibility Report and Ordering Plans and Specifications for Improvement Project #19-02, Brookview Estates Street Reconstructions

Purpose:
The purpose of this case is to conduct a Public Hearing then consider adopting Resolution #18-230 approving the Feasibility Report and ordering plans and specifications for City Improvement Project #19-02, Brookview Estates Street Reconstructions.

Background:
City Improvement Project No. 19-02 proposes to reconstruct streets within the Brookview Estates neighborhood including 173^rd Avenue and Germanium Street. The streets total approximately 2,662 linear feet (0.50 miles) in length. Figure 1 in Appendix A in the attached Feasibility Report shows the scope of the proposed improvements.

Existing Conditions
The streets were constructed in 1979 as rural sections with bituminous pavement to a width of 24 feet, and are generally centered within a 66-foot wide right-of-way.

Sanitary sewer and watermain are not present under these streets.
 
The storm sewer system generally consists of ditches along both sides of the road within the right-of-way and drainage and utility easements. Storm runoff collects in the ditch along Germanium Street and is carried north to the Trott Brook through an outlet pipe located in the north cul-de-sac. Storm runoff collects in the ditch along 173^rd Avenue and goes across land into the Rum River to the east.

The existing bituminous pavement section ranges from 2.0 to 6.0 inches thick, with a median thickness of 3.6-inches, as determined from Ground Penetrating Radar (GPR) analysis performed by Braun Intertec in 2017, as well as from field observations and record plan documents.  The existing aggregate base ranges from 0.8 to 5.0 inches thick, with a median thickness of 2.7-inches.  The pavement section was built on primarily poorly graded sands with silts subgrade material, which is generally considered suitable for pavement support with the proper preparation.

Seven (7) soil borings were completed by Northern Technologies (NTI) to assist Staff with preparing the Feasibility Report. Pavement design recommendations were also offered by NTI, and Staff considered and incorporated NTI’s recommendations to varying degrees while preparing the report.
 
Copies of Braun Intertec’s GPR results and NTI’s Geotechnical Exploration Report are attached in Appendix C in the attached Feasibility Report.


The City 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 2018, the pavement section of the above referenced street segments were rated with a PASER rating of 3 which indicates these streets require complete reconstruction.
 
Pictures of the existing streets are located in Appendix A in the attached Feasibility Report.

Proposed Improvements
The existing bituminous pavement section will be reconstructed using the Full Depth Reclamation (FDR) process, which involves reclaiming the existing bituminous pavement section, along with a portion of the underlying aggregate base. The reclaim material generated by this process is then spread over the reshaped and compacted existing aggregate base between the curb and gutter.  Excess reclaim material is then removed and hauled off site to allow 3½-inches of new bituminous pavement to be placed over the remaining compacted reclaim material.  This results in a 7-ton pavement design, which is the City standard for residential streets.
 
Existing ditches will likely require some re-grading.  Driveway culverts are generally not anticipated to be affected by this project. Additional storm sewer is anticipated to be added to improve storm runoff water quality prior to flowing into Trott Brook.  Drainage easements may also be needed in one or more locations.

Estimated Costs
The engineer’s opinion of probable costs for completing the proposed improvements outlined in this report is $502,555.46. Estimated costs include 5-percent contingency costs plus 23-percent indirect costs for administrative, engineering, finance and legal costs. A summary of the engineer’s opinion of probably costs is included in Appendix B in the attached Feasibility Report.

Funding Program
This project is proposed to be funded using a combination of street reconstruction bond proceeds in the amount of $371,754.41, special assessments to benefiting properties in the amount of $92,784.30, and storm sewer funds in the amount of $38,016.75.
 
A total of 21 benefiting parcels have been identified as eligible for special assessments. Staff recommends applying 25-percent of all eligible project costs equally across the 21 assessable properties using the “per lot” assessment method as allowed by the City’s adopted Special Assessments Policy. Eligible project costs include all costs except those related to subgrade corrections. This results in a proposed preliminary assessment rate of $4,418.30 per assessable parcel.
 
Staff recommends ordering a special benefit consultation report for this project to verify the proposed assessment amount will not exceed benefit to the properties. If the report concludes the benefit to assessed 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 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 improvement project is listed in the City’s current 10-year Capital Improvement Plan.

Public Comment
Staff conducted a public information meeting for this project at 5:00 PM on Thursday, November 8, 2018.  The purpose of the meeting was to present the proposed improvements, estimated costs, funding program, and preliminary project schedule to benefiting property owners, and to receive public input on the project.  Property owners from 2 of the 21 identified benefiting properties attended.
 
In summary, the property owners agreed that the pavement was in poor condition and needed to be repaired but they thought the estimated project cost was too high and questioned why the City couldn’t maintain the roads in a less expensive manner.  Staff explained that the pavement is past the point of applying an overlay as it would fail well before the end of its anticipated useful life of 20 years due to the poor condition of the underlying pavement.  It was discussed that overlay projects generally cost about one-quarter as much as a street reconstruction project, but that the City can’t keep applying overlays on top of overlays without incurring additional project expenses due to the need to tie into driveways and ditches/ boulevards given the increasing elevation of the road.  Staff explained that overall, the most cost-effective manner to maintain streets is to crackseal and sealcoat pavement every 7-years or so, to overlay the pavement roughly every 20-years, then to reconstruct the pavement after two overlays at approximately 60-years.  This is a widely accepted standard pavement maintenance schedule for cities such as Ramsey that have good underlying soils. 
 
One of the property owners asked if the project was already a done deal, or if they had any ability to stop it.  Staff explained that Chapter 8 of the City Charter provides a petition process for Council initiated improvements such that if a petition is signed by 60-percent or more of the owners of real property proposed to be assessed for the improvements, the Council cannot vote on the same improvement for at least one year following the Public Hearing.
 

Public Hearing notices were published in the Anoka Union Herald on October 26 and November 2, 2018. Staff also mailed Public Hearing notices to owners of all benefiting properties as required by law.

Observations:
If these streets are not reconstructed in 2019, they will need to be added to the next 5-year SROP to allow reconstruction between 2020 and 2024 instead. However, this would reduce the amount of pavement maintenance work that can be completed in 2019 since no new streets can be added to the current 5-year SROP, which is attached for reference. This is the final year of the 2015 - 2019 Street Reconstruction and Overlay Program (SROP).

Developed properties along the project corridor may have private irrigation systems. Impacts to these systems may occur during construction. 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.

Survey work has begun to allow data to be collected before snow covers the ground.

Alternatives:
Alternative #1 – Motion to adopt Resolution #18-230 approving the Feasibility Report and ordering plans and specifications for Improvement Project #19-02, Brookview Estates Street Reconstructions.

Alternative #2 – Motion denying adoption of Resolution #18-230 at this time.

The Feasibility Report was completed in-house as part of Staff's normal duties.

Per the attached Feasibility Report, the engineer’s estimate of project costs is $502,555.46. Staff proposes to fund the improvements using a combination of street reconstruction bond proceeds in the amount of $371,754.41, special assessments to benefiting properties in the amount of $92,784.30, and storm sewer funds in the amount of $38,016.75.

A total of 21 residential parcels will benefit from the proposed improvements and are preliminarily proposed to be assessed for 25-percent of eligible project costs, which equates to a preliminary assessment of $4,418.30 per parcel.  The City will fund the remaining 75% of eligible project costs, and 100% of all ineligible project costs, which includes subgrade correction costs.

Staff recommends Alternative #1.  This will allow the improvements to be completed in 2019, while providing for the use of special assessments to pay for up to 25-percent 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 #18-230 approving the Feasibility Report and ordering plans and specifications for Improvement Project #19-02, Brookview Estates Street Reconstructions.