Adopt Resolution #15-09-228 Ordering Preparation of Assessment Roll and Calling for Assessment Hearing for Garnet Street and 168th Avenue Reconstruction; Improvement Project 13-10

Purpose:
The purpose of this case is to adopt Resolution #15-09-228 ordering the preparation of an assessment roll and calling for an Assessment Hearing for Garnet Street and 168th Avenue Reconstruction; Improvement Project 13-10.

Background:
City of Ramsey Improvement Project 13-10 involves reconstructing two paved street 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 plat line of Now & Then Estates. 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 both streets is attached as Figure 1.

Existing Conditions
Both streets were constructed in 1988 using bituminous pavement and curbing. The existing soils in this area are predominantly composed of a mixture of silty sands and clays which do not provide good structural support for pavements. No storm sewer or public utilities exist under the streets, with the exception of the north and south ends of Garnet Street where trunk water and sanitary sewer stubs exist, and a storm sewer culvert that exists under Garnet Street just north of 168^th Avenue. Both streets have received one sealcoat application in 2006. Since both streets are relatively flat they were not able to efficiently shed stormwater runoff, resulting in stormwater runoff pooling on the pavement for extended periods of time which then strips oil from the pavement leading to accelerated degradation of the pavement.

Both streets have a Pavement and Surface Evaluation Rating (PASER) of 1 ranking them as two of the worst streets in the City in terms of pavement condition. In fact, several areas of Garnet Street no longer have bituminous pavement and are instead paved with class 5 aggregate to allow the streets to remain in passable condition. Then each spring when the ground thaws the streets becomes extremely difficult to navigate and maintain due primarily to the poor underlying soils which become unstable when saturated with groundwater.

Proposed Improvements
Subgrade corrections were completed along both street segments to provide a uniform, stable subgrade base to ensure the new pavement sections can achieve a 60-year design life with minimal maintenance.  The subgrade corrections consisted of excavating 3-feet of unsuitable subgrade materials and backfilling the voids with clean imported select granular borrow. Per the adopted Special Assessments Policy, the cost to correct unsuitable subgrade soils is not an eligible special assessment cost so these costs will be paid with City funds.

Both streets were reconstructed to match the existing widths of 31-feet from back-of-curb to back-of-curb.  Concrete curb and gutter and storm sewer was constructed along both streets to better facilitate drainage and to protect the edges of the new pavement.  Six-foot wide concrete sidewalks were constructed within City right-of-ways along the east side of Garnet Street and the north side of 168^th Avenue. The new sidewalk connects the existing 6-foot concrete sidewalk east of Garnet Street between the dead-end sidewalk stub south of 169^th Lane and the existing concrete sidewalk north of 167^th Avenue.  Since these sidewalks connect to the regional bituminous trail west of CSAH 5, adding the sidewalks closed a significant gap in the existing pedestrian facilities in this developing area.  Lastly, public utilities were constructed with this project including 8-inch DIP watermain under both Garnet Street and 168^th Avenue with 1” copper water service lines to serve each property in the future, and 8-inch PVC trunk gravity sanitary sewer with 4” PVC sewer service lines were also installed.

Construction is nearing completion and the project will be substantially complete by the time the Assessment Hearing is held.

No notifications are required for this case.  Upon approval of this case, City staff will publish one notice of the hearing in the City’s official newspaper, the Anoka Union Herald, on Friday, September 25^th.  Individual notices of the hearing will also be mailed to each property owner proposed to be assessed for the improvements at least 2 weeks before the hearing.

Observations:
Anoka County requires that assessments be certified to the County Auditor by the end of November for collection on next year’s taxes.  This deadline will be met by conducting the Assessment Hearing at the October 13^th City Council meeting, which will also allow adequate time for the publication and mailing of notices as required per Minnesota State Statute Chapter 429.

Alternatives:
Alternative Action #1 – Motion to adopt Resolution #15-09-228 ordering the preparation of an assessment roll and calling for an Assessment Hearing for Garnet Street and 168th Avenue Reconstruction; Improvement Project 13-10.

Alternative Action #2 – Motion to deny adoption of Resolution #15-09-228 at this time.

This improvement project is included in the City’s 5-year Capital Improvement Plan for construction in 2015 and is proposed to be funded using a combination of street reconstruction and overlay bond funds, special assessments to benefiting properties, and sewer, water and stormwater utility funds.

Per the City’s adopted Special Assessments Policy, special assessments amounting to 25% of applicable street reconstruction project costs are targeted for reconstruction projects.  However, based on the existing large lot sizes (2+ acres) and property frontages (200+ linear feet) along these streets, the preliminary special assessments were set at $6,500 per lot which totals $78,000 for the 12 single-family residential properties with direct access onto the improved street segments.  This amount was selected based on input received from a certified real estate appraiser.  Since such time, the City Council approved the preparation of a special assessment benefit appraisal consultation for this project to verify that the special assessment would not exceed the benefit to affected properties.  Based on the final special benefit consultation report, it is anticipated that properties benefiting from the improvements and proposed to be assessed will be enhanced in value by approximately $23,000 to $26,000 per property.  Staff will address the large discrepancy between the preliminary special assessments amount and the anticipated property value enhancement identified in the special benefit consultation report during the Assessment Hearing on October 13th.

Motion to adopt Resolution #15-09-228 ordering the preparation of an assessment roll and calling for an Assessment Hearing for Garnet Street and 168th Avenue Reconstruction; Improvement Project 13-10.