Adopt Resolution 15-01-025 Ordering Feasibility Report for Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements; City Improvement Project #15-20

Purpose:
The purpose of this case is to consider adopting Resolution 15-01-025 ordering the preparation of a Feasibility Report for the proposed Jarvis Street Reconstruction and Burlington Northern Santa Fe Railroad Crossing Quiet Zone Improvements; City Improvement Project #15-20.
 
Background:
In June of 2014, City of Ramsey staff learned the City of Elk River intended to reconstruct Jarvis Street between Trunk Highway 10 and 165^th Avenue as part of their 2015 Street and Utility Improvements project.  This segment of Jarvis Street includes a section approximately 3,800 feet long that is bisected by the political boundaries of the cities of Elk River and Ramsey and is therefore mutually shared between the two cities.  It also includes a Burlington Northern Santa Fe (BNSF) railroad crossing that is currently not designated as a whistle-free quiet zone.  A map showing the location of these improvements is included on the third page of the attached proposal letter from the City of Elk River. 
 
Staff from the two cities met to discuss the proposed improvements to Jarvis Street.  Elk River’s staff noted that the Ramsey City Council provided verbal support for sharing in the costs of reconstructing the shared section of Jarvis Street, as well as the railroad quiet zone improvements, during a joint meeting of the City Councils on May 9^th, 2011.  Since then, the City of Elk River has been developing the Jarvis Street reconstruction and quiet zone improvements project to include as part of their 2015 Street and Utility Improvements project.  Staff from the City of Ramsey agreed that the condition of Jarvis Street is such that it needs to be reconstructed in the foreseeable future, and that the Jarvis Street railroad crossing quiet zone improvements would benefit City of Ramsey residents and businesses.  However, it was also noted that the Jarvis Street reconstruction and quiet zone improvements were not included in Ramsey’s 5-year Capital Improvement Plan (CIP), and that we did not have available funds to pay for the improvements in 2015.  It was therefore discussed that the shared segment of Jarvis Street should be left out of their project and delayed until such time that the City of Ramsey was in a better position to fund our share of the improvements.
 
On August 15^th, 2014, staff from the two cities met again to further discuss the benefits and viability of the project, including potential financing options.  Elk River’s staff noted their strong preference to reconstruct Jarvis Street in 2015 and that they might be willing to pay the City of Ramsey’s share of the costs up-front, and then allow Ramsey to repay our share of the costs back over a three-year period.  On August 28^th, the City of Elk River provided the attached proposal letter to the City of Ramsey formalizing their request for the City of Ramsey to share in 50% of the costs for reconstructing the shared segment of Jarvis Street, plus 50% of the costs for the quiet zone improvements, and that Elk River will pay for Ramsey’s share of the costs up-front while allowing repayment over a three-year period.  Staff has since verified that repayment would be allowed to occur interest-free over calendar years 2016 to 2018, which would not impact the City’s adopted 2015 budget.
 
On September 16^th, 2014 staff presented Elk River’s proposal to the Public Works Committee for consideration of recommending Council approval of the project, pending further direction from Elk River.  It was discussed that though the railroad crossing is located entirely within the City of Elk River, City of Ramsey businesses and residents would share the benefit of the quiet zone so Elk River’s request to share in 50% of the costs seems reasonable.  It was also discussed that Elk River proposed to reconstruct Jarvis Street as a 9-ton road with bituminous pavement and concrete curb and gutter at a width of 32-feet, which appears to be reasonable considering that Jarvis Street is a Municipal State Aid route, and that the concrete curb and gutter will help protect the pavement edges and extend the life of the pavement.  It was also discussed that a 10-foot wide off-road bituminous trail was proposed west of Jarvis Street to connect the City of Ramsey's Mississippi River Trail, which is to be constructed on the south side of Highway 10, to Elk River's section of the Mississippi River Trail, which is proposed to be routed through the City of Elk River (not along Highway 10).  Based on all of the proposed improvements, and assuming a 50/50 cost split, the City of Ramsey’s total cost-share amount was estimated to be $970,728.  The Public Works Committee recommended Council approval of Elk River’s proposal using a 50/50 cost split and three-year payback allowance beginning in calendar year 2016.
 
On October 20^th, 2014, the Elk River City Council reviewed the Feasibility Report for the City of Elk River’s 2015 Street and Utility Improvements project, which included the 32-foot wide street design with 10-foot wide off-road bike trail.  At that time, the Elk River City Council directed their staff to redesign Jarvis Street to a 36-foot wide street with two 12-foot wide through lanes and two 6-foot wide on-road bike lanes and no off-road trail.
 
In January of 2015, Elk River provided the attached City Council case and Feasibility Report to Ramsey City staff, along with the attached memo from their consulting engineer Bolton-Menk, Inc, (BMI) dated October 29^th, 2014 addressing the revised design and estimated project costs.  Based on the BMI memo, as well as the attached 2-page cost estimate that adjusts the estimated costs for the old 32-foot wide street design to the revised 36-foot wide design, the City of Ramsey’s total share of the project costs decreased by $50,422.50 resulting in a total estimated cost-share of $920,305.50.

Notifications are not required for this case.

Observations:
In 2014, City of Ramsey staff rated this section of Jarvis Street with a PASER rating of 2 which warrants a total reconstruction. While this is not the worst street in the City of Ramsey, it ranks quite close and as such is included in the City’s 5-year CIP for street reconstruction projects.
 
Though the adjacent property uses are different on either side of the shared section of Jarvis Street, with industrial properties in Elk River and residential properties in Ramsey, Jarvis Street is designated as a Municipal State Aid Street by both cities and as such must be reconstructed to State Aid standards as proposed by Elk River.

Reconstructing this section of Jarvis Street at the same time as the reconstruction of Andie Street and/or 164th Lane in 2016 and/or 2017 as shown in the current CIP would not be a good option as access to 164th Lane would be required from Jarvis Street from time to time.  Therefore, reconstructing Jarvis Street in 2015 fits well with our scheduled road reconstruction projects.
 
Ordering a Feasibility Report will allow staff to further explore funding options for the proposed improvements, including the use of special assessments to benefiting properties.  At this time, staff anticipates presenting the Feasibility Report to the City Council on February 10^th, 2015.  If special assessments are utilized, the Chapter 429 public process will need to proceed as quickly as possible to allow the project to move forward in 2015 as currently proposed by Elk River.  
 
Alternatives:
Alternative Action #1 – Motion to adopt Resolution 15-01-025 Ordering Feasibility Report for Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements; City Improvement Project #15-20.
 
Alternative Action #2 – Motion to deny adoption of Resolution 15-01-025 at this time.

The Feasibility Report will be completed in-house as part of staff’s regular duties.  No soil exploration work will be required.
 
Based on Elk River’s estimated cost-share information attached, the City of Ramsey’s share of the project costs, estimated at 50%, totals $920,305.50.  The City of Elk River is agreeable to paying the City of Ramsey’s share of the costs up-front with an interest-free payback period of 3-years from 2016 to 2018.  A mix of Public Improvement Revolving (PIR) Funds, storm water utility and special assessments are proposed to be used to pay the City of Elk River back however, funding sources will be explored in more detail within the Feasibility Report.