Adopt Resolution #16-09-174 Ordering Preparation of Assessment Roll and Calling for Assessment Hearing for 2016 Mill and Overlay Improvements; Improvement Project 16-00 Division B

Purpose:
The purpose of this case is to adopt Resolution #16-09-174 ordering the preparation of an assessment roll and calling for an Assessment Hearing on October 25^th for 2016 Mill and Overlay Improvements; Improvement Project 16-00 Division B on October 25^th, 2016.

Background:
Project Purpose
Each year City staff visually inspects the pavement condition of all public streets and rates them using the Pavement and Surface Evaluation Rating (PASER) method.  A numerical PASER rating between 1 and 10 is assigned to each street segment. Streets with a PASER rating of 1 are considered to need a complete reconstruct, while streets with a PASER rating of 10 are considered new pavement sections.  The 0.8 mile segment of Sunwood Drive between Sunfish Lake Boulevard and the bridge located between 147^th Lane and Krypton Street was constructed in 1996, received sealcoats in 2002 and 2008, and in 2015 was assigned PASER ratings of 4 to 5 meaning this street segment was a timely candidate to receive mill and overlay improvements.  Staff anticipates that the mill and overlay improvements will extend the life of the pavement approximately 20 years, at which time a second mill and overlay project will likely be proposed.

Existing Conditions
This segment of Sunwood Drive is an urban section which includes B618 concrete curb and gutter, storm sewer, and an average of 3½ inches of bituminous pavement over 4 inches of class 5 aggregate base. The street is 30 feet wide between Sunfish Lake Boulevard and 145^th Lane, and 40 feet wide over the remainder of the segment. The right-of-way is 80 feet wide throughout the corridor.  Sanitary sewer and water supply systems exist throughout the corridor but should are not anticipated to require any repairs over the estimated 20 year design life of the mill and overlay improvements.

Proposed Improvements
City of Ramsey Improvement Project #16-00 Division B proposed to remove and replace 200 feet of concrete curb and gutter, completion of a 2-inch full-width mill and overlay of the existing bituminous pavement, various utility casting adjustments and repairs, upgrades to two pedestrian curb ramps at the “eyebrow” north of Sunwood Drive near the east end of the project, and miscellaneous other appurtenant improvements.  The title sheet of the attached plans show the location and scope of the proposed improvements.


Additional Required Improvements
During construction it was discovered that five areas of Sunwood Drive were constructed with less than 2-inches of bituminous pavement.  Therefore, approximately 1½“ of the existing aggregate base was removed in each area and approximately 1½” of base bituminous pavement was placed on top of the remaining compacted aggregate base to provide a minimum of 3½“ of bituminous pavement along this segment of Sunwood Drive.  The additional pavement tonnage required to complete this work will be paid through the existing bituminous pavement pay item.
 
During construction it was also discovered that an additional 580 linear feet of concrete curb and gutter needed to be removed and replaced due to significant cracking and failing joints.  Such damage allows stormwater runoff to infiltrate through the curb and into the pavement base and subgrade thereby weakening the pavement base and increasing the potential for damage due to freeze-thaw cycles.  This additional footage of curb and gutter removal and replacement is well in excess of 25% of the plan quantity so staff negotiated a linear foot cost with the contractor for the removal and replacement of this additional curb and gutter to be considered by Council in a separate case this evening.
 
It was also discovered during construction that one catch basin needed to be reconstructed by hand using block and mortar instead of using a prefabricated concrete catch basin as specified in the plans.  This was due to the existing elevations and geometry of the storm sewer pipes. This additional work is also being considered by Council in a separate case this evening.

Anoka County requires that assessments be certified to the County Auditor by November 30th for collection on next year’s taxes.  This deadline will be met by conducting the Assessment Hearing at the October 25th City Council meeting, which will also allow adequate time for the publication and mailing of notices.
 
Following Council approval, an Assessment Hearing Notice will be published in the City’s official newspaper on Friday, September 30th, and Assessment Hearing Notices will be mailed to all benefiting property owners as required per Minnesota State Statute Chapter 429.

Observations:
At the time this case was prepared construction was substantially complete.  Construction should be completed by the time the Assessment Hearing is conducted on October 25^th.
  
Alternatives:
Alternative Action #1 – Motion to adopt Resolution #16-09-174 ordering the preparation of an assessment roll and calling for an Assessment Hearing for 2016 Mill and Overlay Improvements; Improvement Project 16-00 Division B on October 25^th, 2016.

Alternative Action #2 – Motion to deny adoption of Resolution #16-09-174 at this time.

This improvement project was included in the City’s 5-year Capital Improvement Plan for construction in 2016 and was proposed to be funded using a combination of street reconstruction and overlay bond funds, special assessments to benefiting properties, and stormwater utility funds.

The contract amount for this project (Valley Paving, Inc.) is $179,196.21 which is $83,665.79 below the engineer’s construction cost estimate of $262,862.00.  Final project costs, which will include actual construction costs and indirect costs covering administrative, engineering, finance and legal fees, are estimated to be $232,783.68 using 14% of construction costs for and indirect cost estimate.  This estimated cost assumes Council approval of Change Order #1 and no significant quantity revisions or other change orders prior to completion of construction.
 
Per the City’s adopted Special Assessments Policy, special assessments amounting to 25% of eligible street overlay project costs are intended to fund a portion of overlay projects.  However, since only three properties have direct access onto the improved street segment and are therefore considered to receive direct benefit from the improvements, preliminary special assessment amounts were approved at $950 per benefiting property, which was selected based on special assessments collected from recently completed overlay projects.  This totals $2,850 in special assessments which amounts to about 1.4% of total project costs.
 
Project costs will be funded using a combination of street overlay bond proceeds, special assessments to benefiting properties, and stormwater utility funds in the following amounts:
 

• Special assessments = $2,850 (a total of 3 benefiting properties assessed at $950 each)
• Street overlay bond funds = $217,905.68 ($2,850 to be paid back from special assessments)
• Stormwater utility funds = $14,878

 
Street overlay bonds were issued in the amount of $300,000 to cover all eligible project costs, including costs to be recovered through special assessments to benefiting properties.
 
A special benefit consultation report was not ordered for this project due to the minimal amount of special assessments.

Staff recommends Alternative Action #1.

Motion to adopt Resolution #16-09-174 ordering the preparation of an assessment roll and calling for an Assessment Hearing for 2016 Mill and Overlay Improvements; Improvement Project 16-00 Division B on October 25th, 2016.