Adopt Resolution #20-015 Ordering a Feasibility Report and Calling a Public Hearing for the Development Initiated Puma Street Extension Improvements, Improvement Project #20-04

Purpose:
The purpose of this case is to consider adopting Resolution #20-015 ordering a Feasibility Report and calling a Public Hearing for Improvement Project #20-04, Development Initiated Puma Street Extension Improvements.

Background:
The proposed improvements addressed in this case are the latest in a series of projects providing necessary street and utility improvements to serve commercial and residential developments in the immediate area.  The Puma Street Extension Improvements are being driven by two residential development projects, one on each side of Puma Street south of Alpine Drive (Riverstone by Capstone Homes and Alpha Development by AKM Farm/Paxmar).  Attached are draft layouts for both developments.

In the fall of 2017, municipal utility extension improvements were constructed along approximately 1,400-feet of Bunker Lake Boulevard, east of Puma Street. These utility extensions were required to serve portions of the Riverstone residential development west of Puma Street, as well as a portion of the Bunker Lake Industrial Park development south of Bunker Lake Boulevard and east of Puma Street.

In late 2017 and early 2018, municipal utility extension improvements were constructed along Puma Street, north of Bunker Lake Boulevard. These utility improvements support a majority of the Riverstone residential development, future commercial and residential development east of Puma Street, plus a small area of undeveloped land in the Northfork development, west of the Riverstone development. These areas are within the City’s urban service areas (MUSA) thereby requiring service by City sewer and water.
 
During the summer and fall of 2018, permanent roadway improvements were completed on the sections of Bunker Lake Boulevard and Puma Street where the utility improvements were completed.
 
Capstone Homes plans to start developing the north half of the Riverstone residential development this spring as shown on the attached plat.  This will require the northern half of Puma Street to be reconstructed to replace the existing temporary pavement section with a permanent pavement section, as well as the extension of municipal utilities (sanitary sewer and water).
 
Trunk watermain will be extended to Alpine Drive to allow for a looped watermain system to serve all properties in the immediate area from more than one direction.  Alpine Drive is scheduled to be reconstructed in 2025 per the City’s current Capital Improvement Program (CIP), at which time trunk watermain will be constructed from Armstrong Boulevard to Puma Street.
 
Capstone Homes has asked the City to assess them for their share of the costs for this work, which includes all costs benefitting the Riverstone development west of Puma Street.  Staff has been working with Capstone Homes to finalize the assessment program, which the City Council is being asked to approve via a separate case on the regular agenda this evening.
 
Despite the clear benefit to their property and share of the demand created by their future development, the property owner east of Puma Street has previously objected to the proposed cost share.  It is possible that they will agree to some cost share, but it is unclear if they support the revised proposal presented at the 2/18 Public Works Committee Meeting. Staff therefore proposes to follow the requirements of State Statute Chapter 429 to allow for the use of special assessments to pay for a portion of the project costs to construct the Puma Street Extension Improvements. Staff has discussed this alternative with the City Attorney. Staff believes this to be the appropriate mechanism to ensure a fair and equitable distribution of costs. Staff continues to discuss with this Property Owner. Based on this zoning classification and lot size, City Charter and Minnesota Statute Chapter 429 authorize this process and do not provide for a counter-petition process. 
 
The first step in the Chapter 429 process is to order a Feasibility Report for the proposed improvements.  Ordering the report tonight would allow the City Council to accept it on March 10th.  The public improvement hearing can also be conducted on March 10th, allowing the project to move forward as quickly as possible.  Both of these actions are reflected in alternative #1.

Upon Council approval to call a public hearing, public hearing notices will be published twice in the City’s official newspaper, the Anoka Union Herald.  Publication dates will be Friday, February 28th, and Friday, March 6th.

Observations:
Preparing a Feasibility Report for the proposed improvements will allow estimated project costs to be refined and further development of the funding program, including the use of special assessments which requires compliance with all applicable provisions of the City Charter, the City’s Special Assessments Policy, and Minnesota Statute Chapter 429.  Copies of these are attached to this case for reference. This does not order a project, it simply sets a process in motion. This does not obligate the City to the project. 
 
The Feasibility Report will explore numerous aspects of the proposed improvements including whether they are feasible and necessary, whether they are cost-effective, and whether they should be completed alone or in conjunction with other improvements.  A preliminary project schedule will also be developed.

Alternatives:
Alternative #1 – Motion to adopt Resolution #20-015 ordering a Feasibility Report and calling a Public Hearing for March 10, 2020, for Improvement Project #20-04, Puma Street Extension Improvements.

Alternative #2 – Motion denying adoption of Resolution #20-015 at this time.

Upon Council authorization, the Feasibility Report will be completed in-house as part of Staff's normal duties.
 
Based on Bolton & Menk’s previous involvement with improvements in this area, as well as Staff’s existing workload, Staff will propose to utilize Bolton & Menk to assist with final design, preparation of plans and specifications, bidding and administering the project, and staking construction.  Estimated costs for these work efforts are included in the attached draft memo from Bolton and Menk dated December 18, 2019.  A revised memo with updated schedule will be prepared and presented at a later date. These costs can then be rolled into the assessment. 

City staff proposes to inspect construction and assist with project administration.

Staff recommends alternative #1 to support future development in the area.

Motion to adopt Resolution #20-015 ordering a Feasibility Report and calling a Public Hearing for March 10, 2020, for Improvement Project #20-04, Development Initiated Puma Street Extension Improvements.