Adopt Resolution #16-02-033 Ordering Feasibility Report for Improvement Project 16-00 Division B; 2016 Street Maintenance Program Overlay Improvements

Purpose:
The purpose of this case is to consider adopting Resolution #16-02-033 ordering a Feasibility Report for overlay improvements proposed to be completed as part of the 2016 Street Maintenance Program.

Background:
In early 2015, City staff developed a five-year (2015 through 2019) Street Reconstruction and Overlay Plan (SROP) which identified the following street segments as being good candidates for receiving overlay improvements in 2016 based on their Pavement and Surface Evaluation Rating (PASER) values.
 

• Sunwood Drive – Ramsey Boulevard to Bunker Lake Boulevard
• Sunwood Drive – Sunfish Lake Boulevard to Krypton Street/Court

The five-year SROP was developed to allow the City to secure GO bond funding for proposed street reconstruction and overlay improvements.  The SROP is intended to be updated annually, allowing it to become an ongoing fiscal planning tool that continually anticipates future capital expenditures and funding sources.  As such, staff plans to evaluate whether these street segments are still the best candidates to receive overlays in 2016, or whether other street segments included in the five-year SROP are better overlay candidates for 2016.  This evaluation will occur during preparation of the Feasibility Report, and decisions will be made based on several factors including available funding, impacts to adjacent properties, coordination with other proposed pavement maintenance projects, and overall cost-effectiveness of the proposed overlay improvements.  This evaluation is particularly relevant this year considering the large estimated cost of the 2016 street reconstruction project (Andrie Street and 164^th Lane), and since special assessments may not be able to fund a portion of the overlay improvements for the segment of Sunwood Drive between Sunfish Lake Boulevard and Krypton Street/Court.
 
The City’s Special Assessments Policy allows 25% of pavement overlay project costs to be specially assessed against benefiting properties. Minnesota Statutes Chapter 429 allows special assessments to be levied against benefiting properties when a Feasibility Report is prepared and accepted by the City Council in conjunction with the required Public Hearing process. Staff is therefore requesting City Council to adopt Resolution #16-02-033 directing the City Engineer to prepare a Feasibility Report for the proposed overlay improvements.  The purpose of the Feasibility Report is to advise the Council in a preliminary manner as to whether the proposed improvements are necessary, cost-effective, and feasible, and as to whether the overlay improvements should be made as proposed or in connection with other improvements. The report will also include estimated costs for the recommended improvements, as well as a preliminary funding program and project schedule.
 
The proposed 2016 overlay improvements will be designated as Improvement Project #16-00, Division B; 2016 Street Maintenance Program Overlay Improvements.

No notifications are required for this case.

Observations:
While preparing the Feasibility Report, City Staff will evaluate the remaining street segments proposed to receive overlay improvements over the remaining life of the five-year SROP to determine when overlay improvements should be completed on each segment to most cost-effectively maintain the pavement sections of these streets.  This information can then be communicated to the public using maps posted online via the City’s website. Staff will also evaluate the magnitude of potential impacts to adjacent properties for each of the remaining overlay projects, including financial impacts, to allow staff to contact impacted property owners as far in advance of the overlay projects as possible.  This is particularly relevant to the segment of Sunwood Drive between Ramsey Boulevard and Bunker Lake Boulevard which will include assessments to abutting businesses and industries.

Staff anticipates completing the Feasibility Report in early March which would allow Council to accept the Feasibility Report and order the Public Hearing on March 8^th.  Staff would then conduct a Public Input Meeting with impacted property owners prior to the Public Hearing, which would likely be held on March 22^nd.  These dates will be defined within the project schedule in the Feasibility Report. This schedule will allow the project to proceed in a timely manner so competitive bids can be received this spring.

Alternatives:
Alternative Action #1 – Motion to adopt Resolution #16-02-033 ordering a Feasibility Report for Improvement Project #16-00, Division B; 2016 Street Maintenance Program Overlay Improvements.

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.

As previously outlined, the City of Ramsey adopted a five-year SROP identifying two segments of Sunwood Drive as receiving overlay improvements in 2016.  By adopting the five-year SROP the City was allowed to utilize GO bonds to fund the proposed street reconstruction and overlay improvements included in the SROP.  And by following the Chapter 429 process, along with the requirements of the City’s Charter and Special Assessments Policy, the City can utilize special assessments to benefiting properties to fund a portion of the overlay improvement costs.

More details on estimated project costs and funding sources will be included in the Feasibility Report and will be discussed with Council at the time they are asked to accept the Feasibility Report and order the Public Hearing.

Staff recommends approval of Alternative Action #1 to allow the 2016 Street Maintenance Program Overlay Improvements to be completed in a timely and cost-effective manner.

Adopt Resolution #16-02-033 ordering Feasibility Report for Improvement Project #16-00, Division B; 2016 Street Maintenance Program Overlay Improvements.