Adopt Resolution #20-106 Approving Plans and Specifications and Authorizing Advertisements for Bids for Puma Street Improvements, Improvement Project #20-04

Purpose:
The purpose of this case is to consider adopting Resolution #20-106 approving plans and specifications and authorizing advertisements for bids for Puma Street Improvements, Improvement Project #20-04.

Background:
Existing Infrastructure
The improvements proposed with this project are the last in a series of improvement projects providing street, trail and trunk utility improvements to serve numerous commercial and residential developments in the general 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, approximately 1,400 linear feet of municipal trunk utility extension improvements were constructed along the west end 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 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/fall of 2018, permanent street and trail improvements were constructed on the sections of Bunker Lake Boulevard and Puma Street where trunk utility improvements were constructed.
 
Proposed Improvements
The proposed Puma Street Improvements are 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 on the east side of Puma Street, and Riverstone 4th Addition by Capstone Homes on the west side. Figures showing the locations and scope of both developments are attached to this case.
 
This spring Capstone Homes began development of Riverstone 4^th Addition, which is located on the north half of the Riverstone residential development.  Currently there are no plans to begin construction of the Alpha/AKM Farms development.
 
Streets and Trails
Approximately 1,000 feet of Puma Street and the adjacent regional trail south of Alpine Drive must be realigned and reconstructed to replace the existing temporary street section with a permanent street section including bituminous pavement, concrete curb and gutter, storm sewer, and associated appurtenant improvements.  Municipal trunk utilities must also be extended.
 
The proposed street and trail improvements 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 were developed, submittals were made to the State Aid office to obtain all required State Aid approvals before awarding a contract for construction.
 
Trunk Watermain
Trunk 16-inch DIP watermain is proposed to be extended to the north to serve the Riverstone 4^th Addition and the Alpha/AKM Farms development with water, and to provide a looped watermain system along Puma Street and Alpine Drive to more reliably serve properties in the immediate area, provide better fire flows, and provide better water quality by removing a dead end.  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 with this project.
 
Trunk Sanitary Sewer
Trunk sanitary sewer (8” PVC) is proposed to be extended to the north to serve the Riverstone 4th Addition and the Alpha/AKM Farms development with sanitary sewer.  The sewer is not designed to serve properties north of Alpine Drive with municipal sewer.  Those properties can be served, if needed, from a future trunk sewer line along Armstrong Boulevard.
 
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.

Pending Council approval, advertisements for bids will be published twice in the City’s official newspaper, the Anoka Union Herald, as well as in Finance and Commerce, on Friday, May 29th, and Friday, June 5th.  

Alternatives:
Alternative #1 – Motion to adopt Resolution #20-106 approving plans and specifications and authorizing advertisements for bids for Puma Street Improvements, Improvement Project #20-04.

Alternative #2 – Motion denying adoption of Resolution #20-106 at this time.  

Bolton & Menk prepared final plans and specifications for the Puma Street improvements.  The have estimated construction costs for this project at $837,175. This includes $419,565 for street and trail improvements, $91,865 for storm sewer improvements, $148,000 for trunk sanitary sewer improvements, and $177,745 for trunk water improvements. Estimated project costs, including 25-percent indirect costs for administrative, engineering, finance and legal costs, total $1,046,468.75.
An engineering services proposal was previously secured from Bolton & Menk on March 17, 2020, which included a not-to-exceed fee of $8,930 for construction administration and staking, which will be considered at the time bids are accepted.
 
Based on previous direction, project costs are proposed to be funded in part by the City, in part by Capstone Homes, and in part by AKM Farms/Paxmar.  The proposed cost contributions are outlined in the cost share model attached to this case.  The City is proposed to contribute to the costs since the City owns 4 acres of real property fronting Puma Street, and since Puma Street is a collector street.
 
As previously discussed, 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.  As such, the Chapter 429 assessment process will continue to be followed, which will require a final assessment hearing on October 13, 2020.
 
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 current and continued development in the area.

Motion to adopt Resolution #20-106 approving plans and specifications and authorizing advertisements for bids for Puma Street Improvements, Improvement Project #20-04.
 
A roll call vote is required.