PUBLIC HEARING - Adopt Resolution #20-043A Accepting Feasibility Report and Ordering Plans and Specifications for Puma Street Improvements, Improvement Project #20-04

Purpose:
The purpose of this case is to consider adopting Resolution #20-043A accepting the attached Feasibility Report and ordering Plans and Specifications for Puma Street Improvements between 150^th Lane and Alpine Drive, Improvement Project #20-04.

Background:
Existing Infrastructure
The proposed improvements addressed in the attached Feasibility Report is the last in a series of projects providing street, trail and trunk utility improvements required to serve numerous commercial and residential developments in the immediate area.
 
In 2006, Bunker Lake Boulevard was improved west of Armstrong Boulevard.  The easterly 2,650 feet or so was constructed with trunk 18-inch polyvinyl chloride (PVC) sanitary sewer and 16-inch ductile iron pipe (DIP) watermain under a permanent bituminous pavement section. The westerly 1,400 feet or so of Bunker Lake Boulevard to Puma Street, as well as all of Puma Street between Bunker Lake Boulevard and Alpine Drive, was constructed without trunk utilities and only a temporary pavement section generally consisting of 3 inches of aggregate base under 2 inches of bituminous pavement.  Based on future demand, trunk utilities were ultimately proposed to be extended to and along Puma Street, after which the temporary pavement sections would be replaced with permanent pavement sections.
 
In the fall of 2017, municipal utility extension improvements were constructed along the westerly 1,400-feet or so of Bunker Lake Boulevard to Puma Street. These trunk utilities were required to serve portions of the new Riverstone residential development west of Puma Street, as well as a portion of the new Bunker Lake Industrial Park development south of Bunker Lake Boulevard.  In March of 2017, Bolton Menk updated their Future Business Park study to include concept designs and estimated costs for extending trunk utilities to Puma Street.  A copy of the updated report is attached in Appendix D of the attached Feasibility Report.
 
In late 2017 through early 2018, trunk utility improvements were extended along Puma Street, north of Bunker Lake Boulevard. These utility improvements were required to serve a majority of the Riverstone residential development, future commercial and residential development east of Puma Street, plus some undeveloped land in the Northfork development, west of the Riverstone development. These development areas are all designated as municipal urban service areas (MUSA) thereby requiring service by City sewer and water.
 
In the summer and fall of 2018, permanent street sections were constructed on the sections of Bunker Lake Boulevard and Puma Street where the trunk utility improvements were recently constructed.
 
Need for Proposed Improvements
The proposed Puma Street improvements are ultimately being driven by two proposed residential developments, one on each side of Puma Street south of Alpine Drive, including Alpha Development by AKM Farm/Paxmar, and Riverstone 4th Addition by Capstone Homes. Figures showing the locations and scope of both developments are included in Appendix A of the attached Feasibility Report.
 
Capstone Homes plans to start developing the north half of the Riverstone residential development in the spring of 2020, which will require approximately 1,050 feet of Puma Street and an adjacent regional trail south of Alpine Drive to be reconstructed, replacing existing temporary bituminous pavement sections with permanent bituminous pavement sections, including concrete curb and gutter, storm sewer, and associated appurtenant improvements.  Municipal trunk utilities must also be extended.
 
Proposed Improvements
On February 10, 2020, the City Council ordered the attached Feasibility Report to explore the necessity, feasibility and cost-effectiveness of the proposed Puma Street improvements, including the scope and estimated costs of the improvements, available funding sources, and whether the improvements should be completed alone or in connection with other improvements.
 
Streets / Trails
The north segment of Puma Street is an existing temporary bituminous pavement section, as is the regional trail west of Puma Street.  After the temporary sections are removed, permanent bituminous pavement sections will be constructed.  The north end of Puma Street is proposed to be realigned as shown in Figure 1 in Appendix A.
 
The permanent street section must meet all applicable State Aid standards including curb and gutter design, pavement structural capacity, horizontal and vertical curves, lane and shoulder widths, clear zones, etc.  A 9-ton all-weather pavement design will be required for Puma Street.  As plans are developed, submittals will be made to the State Aid office to obtain all required State Aid approvals before awarding a contract for construction.
 
Trunk Watermain
Trunk watermain 16-inch CIP) is proposed to be extended to Alpine Drive to allow a portion of the north end of the Riverstone development to be served by water, and to provide 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 the existing trunk watermain running parallel to Armstrong Boulevard will be connected to the watermain installed under Puma Street as part of this project.
 
Trunk Sanitary Sewer
Trunk sanitary sewer (10” PVC) is proposed to be extended to Alpine Drive to allow a portion of the north end of the Riverstone development to be served by sanitary sewer, and to allow properties north of Alpine Drive to be served by municipal sewer in the future.
 
Storm Sewer
The proposed Puma Street improvements include construction of a permanent urban street section with concrete curb and gutter and storm sewer improvements, including connections to an adjacent stormwater pond in the Riverstone development.

As required by State Statute, a notice of the public hearing was published twice in the City’s official newspaper, the Anoka Union Herald, on Friday, March 13th, and Friday, March 20th.  A copy of this notice is attached.  Also as required by State Statute, notices of the public hearing were also mailed to Capstone Homes and Paxmar on March 11th, along with the attached cover letter.

Observations:
The attached Feasibility Report concludes that the proposed Puma Street Improvements explored within the report are feasible and cost-effective.

Alternatives:
Alternative #1 – Motion to adopt Resolution #20-043A accepting the Feasibility Report and ordering plans and specifications for Puma Street Improvements, Improvement Project #20-04.

Alternative #2 – Motion denying adoption of Resolution #20-043A at this time.

Staff proposes to utilize Bolton & Menk to prepare plans and specifications for the Puma Street improvements since they designed the streets and utilities for the south end of Puma Street, and since they previously surveyed the north end, meaning only minimal survey work would be required to allow design work to commence. An engineering services proposal was therefore secured from Bolton & Menk on March 17, 2020, for preparing plans and specifications, obtaining permits, and bidding the project. The proposal, which is included in Appendix B of the attached Feasibility Report, includes a not-to-exceed fee of $53,125 including $5,500 for Northern Technologies Inc. to complete a Geotechnical Evaluation.  The proposal also includes a not-to-exceed fee of $8,930 for construction administration and staking, which would be considered at the time bids are accepted.
 
A preliminary engineer’s estimate for the proposed Puma Street improvements was prepared by Bolton & Menk and is included in Appendix C of the attached Feasibility Report. The preliminary project cost estimate totals $925,000, which includes $625,000 for street and trail improvements, $70,000 for storm sewer improvements, and $230,000 for trunk utility improvements. Estimated costs include 10-percent contingency and 15-percent indirect (administrative, engineering, finance and legal) costs.
 
Based on consensus direction at the February 11, 2020, joint Planning Commission/City Council work session, a City cost contribution of one-third seemed reasonable given that the City owns 4 acres of real property fronting Puma Street, and since Puma Street is a collector street.  The current cost share model, which is attached to this case, is therefore based on this direction.
 
As was also discussed at the joint work session, Capstone Homes requested that the City assess them for the share of project costs benefitting their property. Conversely, AKM Farm/Paxmar does not support an assessment at this time.  Therefore, the Chapter 429 assessment process is being followed, which requires this public hearing and acceptance of the attached Feasibility Report after.
 
Several funding sources are available to pay for the City’s share of street and trail project costs including the Public Improvement Revolving (PIR) fund, the Anoka County Redevelopment Authority (ACHRA), and Municipal State Aid (MSA) funds.  All project costs required to extend trunk utilities along Puma Street are proposed to be paid through City sewer and water funds. The developer’s share of these costs will be recovered through trunk fees at the time of development.
 
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 #20-043A accepting the Feasibility Report and ordering plans and specifications for Puma Street Improvements, Improvement Project #20-04.