Adopt Resolution #15-01-018 Accepting Feasibility Report and Ordering Public Hearing for IP 13-10; Garnet Street and 168th Avenue Reconstruction

Purpose:
The purpose of this case is to accept the attached Feasibility Report and order a Public Hearing for February 10, 2015 City Improvement Project #13-10, Garnet Street and 168th Avenue Reconstruction.  Based on the proposed project schedule contained within the attached Feasibility Report this project can be completed in the summer/fall of 2015 utilizing special assessments as a partial funding source.
 
Background:
City of Ramsey Improvement Project 13-10 proposes to reconstruct two pavement segments including Garnet Street between 167th Street and the north plat line of Now & Then Estates, and 168th Avenue between Garnet Street and the west cul-de-sac.  Both street segments have bituminous pavement and curbing and no storm sewer or public utilities.  The segment of Garnet Street to be reconstructed measures approximately 1,350 feet in length, and the segment of 168^th Avenue NW west of Garnet Street measures approximately 670 feet in length.  The total length of these two street segments is approximately 2,020 linear feet, or 0.38 miles.  A map showing the location and scope of the proposed improvements on these two streets is included in the attached Feasibility Report as Figure 1 in Appendix A.
 
Both streets were originally constructed in 1988 and received one sealcoat application in 2006.  Both streets are relatively flat and therefore not able to efficiently shed stormwater runoff, resulting in oil being stripped from the pavement more quickly than normal leading to degradation of the pavement.  Both streets have a Pavement and Surface Evaluation Rating (PASER) of 1 and are therefore considered to be among the worst streets in the City in terms of pavement condition.  In fact, large areas of Garnet Street are no longer paved so Public Work’s has been filling the non-paved areas with class 5 aggregate in an attempt to maintain the streets in passable condition.  However, each spring when the ground thaws the street becomes extremely difficult to navigate and maintain due primarily to the poor underlying soils which become unstable when saturated with groundwater.  Pictures showing the condition of these two streets are included in the attached Feasibility Report at the end of Appendix A.
 
In addition to reconstructing the pavement sections of Garnet Street and 168^th Avenue, staff is proposing to construct a 6-foot wide concrete sidewalk with City right-of-way along the east side of Garnet Street and the north side of 168^th Avenue.  These new sidewalk segments would connect the existing 6-foot concrete sidewalk segment that dead ends east of Garnet and south of 169^th Lane NW to the existing sidewalk on north of 167^th Avenue. These sidewalks both connect to the bituminous trail west of TH 47 so adding the new sidewalk segments will close a significant gap in the existing pedestrian facilities in this developing area.  Figure 2 in the attached Feasibility Report shows the existing pedestrian facilities in the area.
 
The Feasibility Report also explores costs to construct public utilities during street reconstruction for the following reasons.  First, the City would receive benefit by constructing watermain as previously noted and recommended by staff.  Second, the proposed improvements have an estimated design life of 60-years and considering that adjacent properties were developed over 20 years ago, they could soon begin to experience failing septic systems or wells meaning residents may want to connect to utilities before the end of the project design life, which would require the street to be reconstructed before its useful life is over.  And third, residents may request to connect to City utilities as part of this project to capitalize on significant cost savings offered per the recently adopted Special Assessments Policy.  Council is therefore asked to direct staff whether the plans should be bid with any or all public utilities included in the base bid, whether the plans should be bid with any or all of the public utilities included as an alternate bid, or whether public utilities should be omitted from the plans altogether.
 
As noted in the Feasibility Report, staff does recommend constructing new 8” watermain along Garnet Street as stubs exist at both ends of the street segment to be reconstructed so connecting the stubs would provide a looped watermain system and allow for better maintenance of the water supply system, including the ability to isolate smaller areas when parts of the main need to be shut down for maintenance.  Staff also recommends extending 8” watermain along 168^th Avenue since 8” watermain is planned to be extended to the west end of 168^th Avenue during future phases of the Brookfield residential development.
 
On April 23, 2013, the City Council adopted Resolution #13-04-074 authorizing the preparation of a Feasibility Report for the reconstruction of Garnet Street and 168^th Avenue to address their deteriorated pavement sections.  At the time, the City was in the process of exploring options for adopting a reliable, long-term funding source for street reconstruction projects, but a reliable funding source was not identified at the time so the Feasibility Report was never completed.
 
On February 25, 2014, the City Council adopted Resolution #14-02-034 again authorizing the preparation of a Feasibility Report for the reconstruction of Garnet Street and 168^th Avenue.  Since then, the City Council has adopted a Special Assessments Policy that has the potential to fund up to 25% of the applicable project costs.  The funding section of this report includes more detail on proposed assessments.
 
During the preparation of the Feasibility Report, staff was contacted by several residents of Now and Then Estates.  In general, the residents questioned whether utilities would be installed with the project, whether they would be required to connect to utilities, and what cost they would be required to pay, if any, for the proposed improvements. Most of the residents who called said they would like the streets to be reconstructed, and some callers questioned the need for utilities and new sidewalks along these streets.

No notifications are necessary with this case.

Observations:
Staff proposes to correct poor subgrade soils by excavating 3 feet of subgrade and replacing it with clean imported select granular material.  While this will have a significant cost, it will ensure the City will receive the maximum life from the reconstructed street while minimizing maintenance costs over the life of the street.    
 
Staff will solicit public input on all aspects of this project prior to the Public Hearing being held on February 10, 2015.  As noted in the proposed project schedule in the attached Feasibility Report, a neighborhood information meeting is proposed to be held on January 29, 2015.  Staff will mail meeting invitation letters this week if Council orders the Public Hearing.  These letters will include detailed information on the project, including directing the property owners to the City’s web site which will contain all available project information.  
 
This project is necessary, feasible, and cost-effective from an engineering standpoint, and can be constructed as proposed herein.

Alternatives:
Alternative Action #1 – Motion to adopt Resolution 15-01-018 Accepting the Feasibility Report and Ordering the Public Hearing for City Improvement Project 13-10, Garnet Street and 168^th Avenue Reconstruction, as proposed by staff.
 
Alternative Action #2 – Motion to adopt Resolution 15-01-018 Accepting the Feasibility Report and Ordering the Public Hearing for City Improvement Project 13-10, Garnet Street and 168^th Avenue Reconstruction, with the following modifications to staff’s proposed design: ____________________.
 
Alternative Action #3 – Motion to deny adoption of Resolution 15-01-018 at this time.

The Feasibility Report was completed in-house as part of staff’s regular duties.  The Geotechnical Evaluation Report completed by NTI had a cost of $2,525, which is part of the indirect costs.
 
The engineer’s opinion of probable costs per each street segment, including all costs for surface (streets), stormwater, water, and sanitary sewer, is as follows:
 

• Garnet Street = $1,125,000
• 168^th Avenue = $   550,000

Estimated costs include 10% contingency costs plus 25% indirect costs for administrative, engineering, finance and legal costs.  Appendix B of the attached Feasibility Report includes a detailed cost summary.
 
This improvement project, which is listed in the City’s current 5-year Capital Improvement Plan, can be funded using a combination of special assessments to benefiting properties and street reconstruction bond proceeds.
 
Preliminary special assessments are proposed in the Feasibility Report in the amount of $6,500 per lot.  This totals $78,000 for the 12 single-family residential property owners with direct access onto the improved street segments.
 
Sewer, Water and Stormwater Utility Funds would be used to pay for any such improvements constructed.
 
Below is a table showing the complete project cost breakout by funding source.
 

	ASSESSMENTS	CITY FUNDS	TOTAL
Surface	$78,000	$958,000	$1,036,000
Storm Sewer	–	$198,000	$198,000
Water Main	–	$271,000	$271,000
Sanitary Sewer	–	$170,000	$170,000
TOTALS	$78,000	$1,597,000	$1,675,000

Staff recommends selecting alternative action #1 to ensure that this project can be completed in 2015, which will help prevent the City from falling too farther behind on the long-term street maintenance program.
 
The following is a list of staff recommendations related to the proposed design and funding for the project for potential Council consideration/discussion:
 

1. Staff recommends constructing new sidewalks within City right-of-ways along the east side of Garnet Street and the north side of 168^th Avenue at 100% city cost.
2. Staff recommends correcting the subgrade soils by excavating 3 feet of existing subgrade and replacing it with clean imported select granular material at 100% city cost.
3. Staff recommends constructing new bituminous pavement per the City’s standard residential pavement section of 4” aggregate base class 5, 2” bituminous base course, and 1½” bituminous wear course.
4. Staff recommends constructing 8” DIP watermain under both street segments at 100% city cost.
5. Staff recommends ordering an assessment appraisal consultation to ensure that special assessments do not exceed the benefit received as a result of the improvements.
6. Staff recommends holding a neighborhood information meeting on January 29, 2015.

The City Council is asked to act on the following items:

1. Accept the preliminary residential special assessment rate of $6,500 per lot.
2. Authorize an assessment appraisal consultation to ensure that all special assessments are commensurate with benefit received from the proposed improvements.
3. Adopt Resolution #15-01-018 approving this Feasibility Report and ordering a Public Hearing for February 10, 2015 for City Improvement Project #13-10, Garnet Street and 168^th Avenue Reconstruction.