PUBLIC HEARING: Adopt Resolution #18-231 Approving Feasibility Report and Ordering Plans and Specifications for Improvement Project #19-03, Wood Pond Hills & Chestnut Ridge Street Reconstructions

Purpose:
The purpose of this case is to conduct a Public Hearing then consider adopting Resolution #18-231 approving the Feasibility Report and ordering plans and specifications for City Improvement Project #19-03, Wood Pond Hills and Chestnut Ridge Street Reconstructions.
 
Background:
City Improvement Project No. 19-03 proposes to reconstruct streets within the Wood Pond Hills and Chestnut Ridge neighborhoods including 146th Avenue, Helium Street, and Krypton Street. The streets total approximately 3,310 linear feet (0.63 miles) in length. Figure 1 in Appendix A in the attached Feasibility Report shows the scope of the proposed improvements.
 
Existing Conditions
These streets were constructed between 1992 and 1994 as urban sections using bituminous pavement, surmountable concrete curb and gutter, and concrete storm sewer. The streets were constructed to a width of 30-feet from face-of-curb to face-of-curb, and are generally centered within 60-foot wide right-of-ways.
 
Sanitary sewer and watermain infrastructure exist under each of the streets and are generally considered to be in good operating condition.
 
The existing storm sewer system consists of concrete catch basins that collect stormwater runoff from the curb and gutter, and concrete storm sewer pipes that route the runoff to stormwater ponding areas where the runoff is stored and treated.  The storm sewer system is also generally considered to be in good condition with only minor maintenance work proposed.
 
The existing bituminous pavement section ranges from 1.6 to 5.0 inches thick, with a median thickness of 2.5-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 section ranges from 1.3 to 8.4 inches thick, with a median thickness of 4.1-inches.  The pavement section was built on generally poorly graded sand with silt subgrade material generally considered suitable for pavement support with proper conditioning.
 
Ten (10) 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 in 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 sections of the above referenced street segments were rated with a PASER rating of 2, with the exception of the south half of Krypton Street receiving a rating of 4. PASER ratings of 4 and below generally indicate the street requires complete reconstruction.
 
Pictures of the existing streets are located in Appendix A in the attached Feasibility Report.
 
Proposed Improvements
All damaged concrete curb and gutter sections are proposed to be removed and replaced.
 
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.
 
No improvements are proposed to the existing sanitary sewer and watermain infrastructure.  However, these systems will be tested, and if repairs are needed they will be completed separately and paid for with utility enterprise funds.
 
Storm sewer catch basins are proposed to be repaired as needed, including resetting of castings.
 
Estimated Costs
The engineer’s opinion of probable costs for completing the proposed improvements outlined in this report is $372,236.52.  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 $291,590.84, special assessments to benefiting properties in the amount of $76,918.30, and storm sewer funds in the amount of $3,727.38.
 
A total of 59 benefiting parcels have been identified as eligible for special assessments. Staff recommends applying 25-percent of all eligible project costs equally across the 59 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 and public utility improvements. This results in a proposed preliminary assessment rate of $1,303.70 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 on Wednesday, November 7, 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 3 of the 59 identified benefiting properties attended.  In summary, none of the property owners objected to the project, and most of the questions pertained to special assessments, particularly payment options.  Staff will present this information in more detail to Council during 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 #18-231 approving the Feasibility Report and ordering plans and specifications for Improvement Project #19-03, Wood Pond Hills and Chestnut Ridge Street Reconstructions.

Alternative #2 – Motion denying adoption of Resolution #18-231 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 $372,236.52. Staff proposes to fund the improvements using a combination of street reconstruction bond proceeds in the amount of $291,590.84, special assessments to benefiting properties in the amount of $76,918.30, and storm sewer funds in the amount of $3,727.38.

A total of 59 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 $1,303.70 per parcel. The City will fund the remaining 75% of eligible project 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 #18-231 approving the Feasibility Report and ordering plans and specifications for Improvement Project #19-03, Wood Pond Hills and Chestnut Ridge Street Reconstructions.