PUBLIC HEARING: Adopt Resolution #15-03-073 Authorizing Plans and Specifications for 2015 Street Maintenance Program - Division B; Improvement Project 15-00

Purpose:
The purpose of this case is to conduct a public hearing and authorize plans and specifications for Division B of the 2015 Street Maintenance Program; City Improvement Project #15-00.
 
Background:
On February 10^th, 2015 the Ramsey City Council ordered a feasibility report for Division B of the 2015 Street Maintenance Program which proposes to mill and overlay existing bituminous pavement sections on approximately 3-miles of public streets in four developments as follows:
 

• Northfork - 160^th Lane, Inverness Lane, Royal Road, Turnberry Court, Turnberry Turn, and York Circle
• Pondvale Estates - 150^th Lane and Helium Street
• Rolling Green - 165^th Lane, 166^th Lane, Coquina Street, Dolomite Street, and Ebony Street
• Woodland Green - 156^th Lane

Figures showing the proposed project locations and street segments identified above are attached for reference. 
Council accepted the Feasibility Report on March 10^th, and ordered a Public Hearing for March 24^th, 2015.  The purpose of this Public Hearing is to present information about the project to the public including a description of the proposed improvements, estimated project costs, and proposed funding sources, which includes the use of special assessments.  Property owners may then address the City Council with their questions or concerns regarding this project.
 
Special assessments are preliminarily proposed at $1,280 per benefiting property, which includes all properties having direct access to each of the improved streets.  The preliminary assessment rate equals 25% of the project costs based on the estimated costs identified within the Feasibility Report.  To be consistent with previous projects, and because each of the properties proposed to be assessed for the improvements all receive roughly the same level of benefit, the proposed assessment rate of $1,280 per property was applied equally over all street segments within the overall project.
 
It is important to note that City staff visually inspects each public street segment throughout the City, generally on an annual basis, to determine pavement conditions.  Staff uses the Pavement and Surface Evaluation Rating (PASER) method to assign a numerical rating between 1 and 10 to each street segment. Streets rated with a 1 are considered to be failed pavements in need of complete reconstruction, while streets rated with a 10 are considered to be in excellent condition requiring no improvement. The street segments proposed to receive overlays in 2015 had 2014 PASER ratings of 3 or 4 making them excellent candidates for bituminous pavement overlays, which will extend the life of the pavement approximately 20 years.
 
The existing right-of-ways along the street segments proposed to receive overlays as part of this project vary in width from 60 to 80 feet. The paved street segments vary in width from 24 to 32 feet. All proposed street segments in this project were constructed with varying thicknesses of bituminous pavement, and most have bituminous curbing.  Some of the street segments utilize storm sewer systems to provide stormwater drainage.

No sanitary sewer or water supply system improvements are proposed as part of this project.
 
A public information meeting was held on Wednesday, March 18^th to present information about the proposed project to property owners proposed to be assessed for 25% of the project costs.  This includes all properties having direct access to improved streets.  During the meeting the following questions were asked of City staff in attendance, which included the City Engineer and Public Works Superintendent.  Staff’s general response follows each of the questions in italicized text.
 
 

1. Can/will the preliminary assessment amount change?  Staff response: Assessments for overlays are proposed to capture 25% of project costs so yes, assessments could be increased or reduced based on actual construction costs but would probably not change significantly.
2. Is the assessment amount the same for everyone?  Staff response: The preliminary assessment amount of $1,280 is the same for everyone, regardless of the street or neighborhood, since each property is assumed to receive similar benefit.
3. How do lot sizes compare across the project areas?  Staff response: Lot sizes vary across the project areas with sizes ranging from one-quarter acre (Pondvale Estates) to over three acres (Northfork).
4. Could the assessments be split out by project area?  Staff response: The adopted Special Assessment Policy allows assessments to be applied using one or a combination of three different methods including; i) per lot, ii) area, or iii) adjusted front footage.
5. Could some streets or areas be removed from the project?  Staff response: The scope of the project could change based on comments received at the public information meeting or at the public hearing, or if the bids received come in higher than anticipated.
6. How long could my access be restricted during construction?  Staff response: The longest anyone’s access would be restricted during construction is about 15 minutes. Mill and overlay operations move quite quickly.
7. Will sidewalks be added to any streets?  Staff response: No new sidewalks are proposed to be constructed with this project.

 
Other more general questions were also asked about the assessment process itself including what the term of the assessment would be (staff recommends 5 years), and whether the assessment would have to be paid off before a property could be sold (staff responded in the affirmative, but noted this would need to be verified).
 
In the interest of full disclosure City staff also explained the special assessment petition provisions contained within Chapter 8 of the City Charter.  Staff also recommended the attendees visit the project web site at http://www.ci.ramsey.mn.us/2015/StreetMaintenance if they thought of additional questions after the meeting.  Business cards were also available in case anyone wanted to contact staff directly at a later date.
 
Staff has also received several phone calls regarding the project.  Based on feedback received to date, both by phone and at the public information meeting, impacted property owners generally understand the need to complete the improvements and do not object to the proposed assessments.  Lastly, Staff anticipates numerous property owners will attend the Public Hearing, though at this time staff is not aware of any unanswered questions or unresolved issues regarding this project.

Observations:
The proposed improvements are consistent with the City’s long-term Street Maintenance Program.
 
Abutting properties with direct access to street segments identified to be improved with this project are proposed to be assessed for 25% of the project costs.  The “per lot” assessment method is recommended due to the similar benefit that will be realized by each property.  The proposed use of special assessments conforms to the requirements set forth in State Statute Chapter 429, chapter 8 of the City Charter, applicable City code, and the recently adopted Special Assessments Policy.
 
According to the attached Feasibility Report, 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 #15-03-073 authorizing Plans and Specifications for the 2015 Street Maintenance Program - Division B; Improvement Project #15-00, as proposed by staff.
 
Alternative Action #2 – Motion to adopt Resolution #15-03-073 authorizing Plans and Specifications for the 2015 Street Maintenance Program - Division B; Improvement Project #15-00, with modifications as follows: ____________________.
 
Alternative Action #3 – Motion to deny adoption of Resolution #15-03-073 at this time.

Plans and specifications will be completed in-house as part of staff’s regular duties.
 
The Engineer’s opinion of probable costs for this project is $634,880.  Estimated costs include 10% contingency costs, plus 25% indirect costs for administrative, engineering, and legal costs.
 
This improvement project is identified in the City’s 5-year Capital Improvement Plan, and is proposed to be funded initially using Street Reconstruction Plan Bonds per the City’s 5-year Street Reconstruction Overlay Program.
 
Preliminary special assessments are proposed in the amount of $1,280 per lot.  A total of 124 assessable properties are identified in the feasibility report resulting in a total assessment amount of $158,720 which equals 25% of the estimated project costs in accordance with the City’s adopted Special Assessments Policy.
 
 

IP #15-00 Division B Estimated Special Assessments 5 - Year Term
		4.100%		Pay-off
Year	Principal Payment	Interest Payment	Total Payment	Balance
				1280.00
2016	256.00	63.84	319.84	1024.00
2017	256.00	41.98	297.98	768.00
2018	256.00	31.49	287.49	512.00
2019	256.00	20.99	276.99	256.00
2020	256.00	10.50	266.50	0.00
Total	$ 1,280.00	$168.84	$ 1,448.80

 
 

Staff recommends approving Alternative Action #1, but would support Alternative Action #2 if Council wishes to direct staff to make minor modifications to the project while preparing plans and specifications.
 
Staff does not support Alternative Action #3 since the proposed improvements are feasible, necessary, and cost-effective from an engineering standpoint, and delaying the work may result in increased project costs in the future.