Adopt Resolution #15-02-036 Ordering Feasibility Report for IP 15-00 Division B; 2015 Street Maintenance Program Overlay Improvements

Purpose:
The purpose of this case is to consider adopting Resolution #15-02-036 ordering a Feasibility Report for the proposed mill and overlay improvements to be completed with the 2015 Street Maintenance Program.
 
Background:
City staff has identified various street segments whose Pavement and Surface Evaluation Rating (PASER) values indicate the streets should receive mill and overlay improvements in 2015 to maintain the streets in the most cost-effective manner.  These improvements will be designated as Improvement Project #15-00, Division B; 2015 Street Maintenance Program Overlay Improvements.
 
Since the City of Ramsey’s Street Assessments Policy allows 25% of mill and overlay project costs to be assessed against benefiting properties, staff is requesting City Council to order a Feasibility Report for the proposed 2015 mill and overlay improvements.  This report is necessary to meet the requirements of Minnesota Statue Chapter 429 to allow special assessments to be used as a funding source.
 
The following street segments are proposed to receive mill and overlay improvements in 2015 as part of the 2015 Street Maintenance Program:
 

• Hwy-10 Ramsey
• Northfork Highlands
• Northfork Oaks
• Northfork Point
• Pondvale Estates
• Pondvale Estates 2nd
• Rolling Green

N/A

Observations:
Preparing a Feasibility Report will allow staff to further refine the estimated costs and funding breakdowns for the proposed improvements, and will allow the City to consider using special assessments against benefiting properties as a funding source for this project.
 
If a Feasibility Report is ordered, staff plans to request Council acceptance of the report on February 24^th in anticipation of ordering a Public Hearing for March 10^th in accordance with Minnesota Statute Chapter 429.  This schedule will allow the project to proceed in a timely manner and to receive competitive bids in the spring of 2015.
 
Alternatives:
Alternative Action #1 – Motion to adopt Resolution #15-02-036 ordering a Feasibility Report for Improvement Project #15-00, Division B; 2015 Street Maintenance Program Overlay Improvements.
 
Alternative Action #2 – Motion to deny adoption of Resolution #15-02-036 at this time.

The Feasibility Report will be completed in-house as part of staff’s regular duties.  No outside work or expenses are anticipated at this time.
 
The City of Ramsey’s 5-year 2015 – 2019 Capital Improvement Plan (CIP) identifies the streets listed above as proposed 2015 mill and overlay improvements, which allows the City to utilize street reconstruction bonds to fund the improvements.
 
Based on 2013 estimated costs, the City of Ramsey will need to fund approximately $11,000,000 for annual Street Maintenance Program projects over the 5-year period from 2015 to 2019.  This equates to an annual expenditure of $2,200,000 to fund all sealcoat, mill and overlay, and street reconstruction projects.  The City currently budgets $500,000 annually for sealcoat projects, which means an additional $1,700,000 is needed annually to fund mill and overlay and street reconstruction projects.  Per the recently adopted Special Assessments Policy, special assessments may be utilized to fund a portion of mill and overlay and street reconstruction projects.  Staff therefore proposes to use street reconstruction bonds to fund the annual mill and overlay and street reconstruction projects, which will be paid back over time in part with special assessment proceeds.
 
Based on preliminary cost estimates, the proposed 2015 mill and overlay projects amount to $644,100, and the 2015 street reconstruction project, Garnet Street and 168^th Avenue, is estimated to cost $1,036,000 (does not include storm sewer, sanitary sewer and water main improvement costs which will be paid from the respective utility funds).  This results in a total estimated cost of $1,680,100 for all 2015 proposed street reconstruction and mill and overlay projects, which is just short of the targeted $1,700,000.
 
More details on estimated project costs and funding sources will be included in the Feasibility Report and will be discussed when the Feasibility Report is presented to Council for approval.