Consider 2012 Street Maintenance Program

Staff has been developing the 2012 Street Maintenance Program (SMP) for several weeks, and is seeking direction from the Council on how best to approach maintenance activities for this construction season.  In light of recent discussions centered on long term road maintenance in the City, it has been difficult creating a program that would be supported by the Council and community.  Until a final decision is made on long term funding to achieve the City's road maintenance goals there are limited funding available to complete all the scheduled improvements.

Attached is a map showing all the roadway segments that are due to receive some sort of maintenance treatment for calendar years 2011 and 2012.  As you can see there are approximately 74 miles of roadway needing work at an estimated cost of $5,595,400, and the current budgeted amount for the 2012 SMP is $495,000.  Further complicating the situation is whether the Council is considering the elimination of assessments for maintenance activities (sealcoats and overlays) and replacing it with another funding option.  The current City assessment policy has 2012 sealcoats at a rate of 15% of the total project costs, which are being phased out completely by the end of 2013, and overlays at a rate of 50% of the total project costs.  If the Council is considering amending this policy it is difficult to develop a program that can be supported by the residents if another option may be available in the near future.  The uncertainty of funding long term road maintenance activities, coupled with the City Charter provision that allows counter-petitioning of projects by impacted residents, further intensifies the situation.

Staff has come up with a couple of options for the Council to consider in developing the 2012 SMP, and they include:

•  A typical program, similar to what has historically been done on an annual basis, with a mix of overlays and sealcoats.
• A sealcoat only program.

Another item to consider for implementing the 2012 SMP includes the project schedule, as staff must follow the Minnesota State Statute 429 assessment process, which includes specific timing for legal notices and public hearings.  Additionally, staff would like to conduct an open house with impacted residents to explain the project, process, and solicit their feedback on items of concern within the project area that may need to be included in the project scope (drainage fixes, etc.).  If we intend to complete the project this summer, and assess the improvements this fall, we will need to hold a public hearing to accept the feasibility study and order the improvements in March.  Following the public hearing we are required by City Charter to wait 60 days to initiate the project to determine whether or not any of the individual improvements contained within the feasibility report are going to be counter-petitioned.  Following the timeline this would have us preparing plans and specifications in May, bidding the project in June/July, and undertaking the work in July/August.  We cannot extend the timeline much beyond the end of August for completion, as there are restrictions for the application of sealcoat materials, and we still need to hold the public hearing to levy the assessments and allow the residents to pay in full for a period of 30 days before Anoka County certifies them to the tax roll in mid-October.

If the Council is considering to fund long term road maintenance activities in another way, which includes the elimination of assessments, staff could then forego the required Minnesota 429 public hearing process.  This would result in time savings to develop and administer the program, as the schedule is typically a function of the state required assessment process, and eliminate the City Charter counter-petition provision.  Should any of the individual projects contained with the 2012 SMP be counter-petitioned, we are prohibited from undertaking those improvements for a period of one year.  Due to the timing constraints outlined above we would not be able to add another area into the 2012 program if one or more projects are defeated by counter-petition, thus reducing the overall project and pushing out those needed maintenance improvements into subsequent years.  Doing so only exacerbates the current problem because it defers additional street segment maintenance needs into future years, and results in the program falling farther behind.

Preparation and implementation of the street maintenance program is primarily financed through the City's General Fund and TIF #4.  Depending on the scope of improvements contained within the final approved program, after soliciting feedback from impacted residents and evaluating the various neighborhoods in the field, additional funding options may be included in the program.  The investigation and final funding package for the 2012 SMP will be included in the feasibility study and discussed by the City Council at a public hearing.

Staff is seeking direction from the Council on how best to proceed with the 2012 SMP and is recommending that the 2012 Street Maintenance Program entail sealcoating only.