Adopt Resolution #19-079 Approving Plans and Specifications and Authorizing Advertisements for Bids for Improvement Project #19-01, Ford Brook Estates Street Reconstruction

Purpose:
The purpose of this case is to adopt Resolution #19-079 approving plans and specifications and authorizing advertisements for bids for Improvement Project #19-01, Ford Brook Estates Street Reconstruction.

Background:
City Improvement Project No. 19-01 proposes to reconstruct 180th Lane and Krypton Street in the Ford Brook Estates neighborhood.  These streets total approximately 860 linear feet (0.16 miles) in length.  Maps are attached to this case showing the general location and overall scope of the proposed improvements.

Existing Conditions
Krypton Street and 180^th Lane were constructed in 1981 as rural sections with bituminous pavement at a width of 24 feet.  Both streets are generally centered within a 66-foot wide right-of-way.
 
Attached is a street segments summary sheet detailing segment lengths, widths, curb type, 2017 PASER ratings, construction year, maintenance history, and pavement section information obtained from ground penetrating radar readings.
 
The existing bituminous pavement section ranges from 1.2 to 6.4 inches thick, with a median thickness of 4.3 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 2.4 to 6.8 inches thick, with a median thickness of 4.1 inches. The pavement section was built on silty sand and lean clay subgrade materials.  Clay subgrade is not good for pavement support and typically requires subgrade corrections.

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 2 which indicates these streets require complete reconstruction.
 
Sanitary sewer and watermain do not exist in this neighborhood.
 
The storm sewer system consists of ditches along both sides of the streets within the right-of-way and drainage and utility easements. Storm runoff is generally carried in the ditches to the ditch along TH 47 and directed north to Ford Brook.

Proposed Improvements
The existing bituminous pavement and aggregate base will be removed along with 2-feet of unsuitable subgrade materials.  Geotextile fabric will be placed over the shaped and compacted subgrade.  Two-feet of compacted select granular borrow (sand) will be placed over the fabric.  Drain tile will run along the outside edges of the geotextile fabric and will be connected to a storm sewer structure to help drain low points.  Then, four-inches of imported aggregate base will be placed, followed by 3½-inches of new bituminous pavement.  This results in a 7-ton pavement design, which is the City standard for residential streets.

Existing ditches will require re-grading due to the subgrade corrections. Some driveway culverts will also require replacement.  The culvert crossing 180^th Lane will also be replaced, with a storm manhole placed in the center of the street to accommodate drain tile connections.  A new swale will also be graded across the southeast corner of the property in the northwest corner of the intersection of 180^th Lane and Highway 47.


Proposed project schedule:
March 26 – Approve Plans and Specifications / Authorize Ads for Bids
March 29 & April 5 – Publish Ads for Bids (Anoka Union Herald, Finance & Commerce)
May 1 – Public bid opening
May 14 – Accept Bids / Award Contract
Late May / early June – Begin construction
August 16 – Substantial completion (open to traffic)
September 10 – Order Assessment Hearing
October 8 – Conduct Assessment Hearing

Public Comment
Staff conducted a public information meeting for this project 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 3 of the 8 identified benefiting properties attended.  None of the owners objected to the project.  Most of the questions pertained to special assessments, as well as the reasoning behind the School Districts request to enlarge the cul-de-sac. The residents questioned why the School District would ask the City to expand the cul-de-sac when they continue to see buses stop on Highway 47 in other locations.  The property owners did not formally object to increasing the size of the cul-de-sac, they just didn’t understand why this request was being made now as they asked the School District to pick up and drop off kids in the cul-de-sac years ago when there were far more kids in the neighborhood, yet their request was denied.  Now they say there are only a few kids in the neighborhood and the cul-de-sac expansion will increase project costs, and possibly their assessments, so they wanted to better understand if other options are available.
 
One property owner that attended the Public Hearing later in November again questioned why the School District wanted the cul-de-sac to be enlarged at this time.  Staff has been in contact with the School District numerous times over the last several months and has received the same answer numerous times.  According to the School District, buses are not allowed to stop in dedicated turn lanes along Highway 47 so they need to turn onto 180^th Lane and therefore need a larger cul-de-sac to turn around.
 
Staff prepared final plans and specifications to include an alternate bid for enlarging the Krypton Street cul-de-sac as requested by the School District. Per the City’s Special Assessments Policy, Staff would recommend that this cost be fully paid by the City since it would expand the existing width, which is considered an ineligible cost in the policy.

Public notifications were not required in advance of this case.

Upon Council authorization, advertisements will be published in the Anoka Union Herald and in Finance & Commerce on March 29 and April 5, 2019, as required per State Statute.

Observations:
The proposed improvements should have a serviceable life of 60 years, assuming that proactive maintenance operations are performed on a regular basis 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.
 
This is the final year of the 2015 - 2019 Street Reconstruction and Overlay Program (SROP).  If this project is not completed in 2019, it should be added to the next 5-year SROP to allow reconstruction between 2020 and 2024 instead.  This would reduce the overall scope of pavement maintenance work to be completed in 2019 since no new streets can be added to the current 5-year SROP.
 
This project, along with Improvement Project #19-01, will be the first projects to be bid electronically through QuestCDN.  Moving to full electronic bids will help streamline the bidding process for both the City and the bidders.  Attached is a new specification for electronic bid requirements that was incorporated into the project specifications.  Staff will elaborate on this during our presentation to Council.

Alternatives:
Alternative #1 – Motion to adopt Resolution #19-079 approving plans and specifications and authorizing advertisements for bids for Improvement Project #19-01, Ford Brook Estates Street Reconstruction.

Alternative #2 – Motion denying adoption of Resolution #19-079 at this time.

Plans and specifications were prepared in-house as part of Staff's normal duties.


Estimated Costs
The engineer’s opinion of probable costs as prepared with the Feasibility Report was $239,464.57.  Those costs included 5-percent contingency costs plus 23-percent indirect costs for administrative, engineering, finance and legal costs.
 
Based on final plans and specifications, estimated construction costs for the base bid are $187,352.50.  Adding 23-percent for indirect costs results in estimated project costs of $230,443.58.
 
Based on final plans and specifications, estimated construction costs for the alternate bid are $11,058.30.  Adding 23-percent for indirect costs results in estimated project costs of $13,601.70.
 
If both the base and alternate bids were to be awarded, the estimated total construction costs would be $198,410.80, and after adding 23-percent for indirect costs, the estimated total project cost would be $244,045.28.

Funding Program
This project is proposed to be funded using a combination of the following funds;

• Street reconstruction bonds = $185,624.46*
• Special assessments = $33,076.00
• Storm sewer funds = $25,344.82

            * After collecting assessments (bonds must initially cover assessments).
 
A total of 8 benefiting parcels have been identified as eligible for special assessments. Staff recommends applying 25-percent of all eligible project costs equally across the 8 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 any public utility improvements.  A preliminary per parcel assessment rate of $3,919.90 was adopted by Council in November 2018.  Based on estimated project costs, the assessment rate per benefiting parcel would be $4,134.50.
 
Final assessment amounts will be calculated after construction is complete and actual construction costs are known.  The findings of the special benefit consultation report will also be known at that time.
 
Staff proposes to let this project for bids at the same time as Improvement Project #19-03 with the intent of realizing cost savings due to economies of scale.  Most contractors will likely bid on both projects, allowing for lower unit bid prices due to increased quantities.
 
The City will fund the remaining 75% of eligible project costs, plus 100% of all ineligible project costs, which includes all subgrade correction costs, plus all costs required to expand the cul-de-sac per the total alternate bid cost.

Staff recommends Alternative #1.  This will allow the project to be constructed as part of the 2019 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 #19-079 approving plans and specifications and authorizing advertisements for bids for Improvement Project #19-01, Ford Brook Estates Street Reconstruction.