Public Hearing - Adopt Resolution #16-10-201 Adopting Assessment Roll Certifying 2016 Mill and Overlay Improvement Assessments, Improvement Project #16-00 Division B

Purpose:
The purpose of this case is to adopt Resolution #16-10-201 adopting the assessment roll certifying assessments for 2016 Mill and Overlay Improvements, Improvement Project #16-00 Division B.

Background:
Project Purpose
The City of Ramsey’s long-term Street Maintenance Program provides for various city streets to receive mill and/or overlay improvements each year to cost-effectively maximize the life expectancy of street pavement sections throughout the City. Milling and/or overlaying streets helps increase the structural integrity of pavement sections, while also providing most of the benefits received from crackseal and sealcoat improvements.
 
Division B of the 2016 Street Maintenance Project involved a full-width pavement mill and overlay on the 0.8 mile segment of Sunwood Drive between Sunfish Lake Boulevard and the bridge located between 147^th Lane and Krypton Street.  This segment of Sunwood Drive 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 these 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.
 
Attached is the title sheet of the plans which shows the general location and scope of the improvements.
 
Previous Conditions
This 0.8 mile segment of Sunwood Drive is an urban section with 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 which are not anticipated to require any repairs over the estimated 20 year design life of the mill and overlay improvements.

Completed Improvements
City of Ramsey Improvement Project #16-00 Division B removed and replaced damaged concrete curb and gutter sections, repaired and/or replaced several deteriorating catch basins, completed a 2 inch full-width mill and overlay of the existing bituminous pavement, adjusted and repaired various utility castings, upgraded two pedestrian curb ramps at the “eyebrow” north of Sunwood Drive near the east end of the project to comply with current ADA standards, and provided miscellaneous other appurtenant improvements.  And during construction it was discovered that five areas of Sunwood Drive were constructed with less than 2 inches of bituminous pavement so approximately 1½ inches of existing aggregate base was removed and replaced with 1½ inches of bituminous pavement to provide a minimum of 3½ inches of bituminous pavement throughout this entire segment of Sunwood Drive, thereby allowing for a second mill and overlay in the future when needed.

Notice for this Assessment Hearing was published in the City’s official newspaper, the Anoka Union Herald, on Friday, September 30th, and individual Assessment Hearing notices were mailed to all property owners proposed to be assessed for the improvements as required per Minnesota State Statute Chapter 429.  Attached is a copy of the Assessment Hearing notice mailed to residents.
 
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 on October 25th.

Observations:
Proposed Final Assessments
The final proposed assessment amount for this project is $950.00 per each of the three (3) benefiting properties, which totals $2,850.  Each of the properties proposed to be assessed has direct access to the improved segment of Sunwood Drive.
 
The proposed final assessment amount is intended to recover 25% of eligible project costs once pro-rated for each of the residential properties.  This cost was arrived at by dividing 25% of the project costs across an equivalent number of residential properties along the project corridor.  This assessment rate was then compared to the final assessment rate levied for the 2015 overlay improvements which totaled $728.90 per property (the 2015 project did not include a full width mill which adds significant cost to the project), which appeared to be very comparable.  Since each property proposed to be assessed received the same level of benefit the proposed assessment rate was applied equally to each using the “per lot” assessment method as allowed per the City’s adopted Special Assessment Policy.  The proposed special assessments conform to the requirements set forth in State Statute Chapter 429, chapter 8 of the City Charter, applicable City code, and the City’s adopted Special Assessments Policy, which are attached to this case for reference.
 
Attached are copies of the final assessment map and roll for this project.  The proposed final assessment amount is the same assessment amount preliminarily approved by Council on April 12, 2016.
 
All work has been completed. Staff is working with the contractor to determine final construction costs, which will be presented in detail at the time Council is requested to approve final payment.  Final project costs are estimated to be $233,000 which includes indirect costs for administration, engineering, finance and legal fees estimated at 14% of construction costs.

A special benefit consultation report was not completed for this project due to the small number of identified benefiting properties and the minimal amount of special assessments proposed to be collected.

The proposed interest rate for special assessments is 3.75%, and assessments are proposed to carry a 10 year term. The attached hearing notice includes a schedule of payment showing annual payments including principal and interest.

No assessment deferrals have been requested or are proposed with this project.

Public Comment
Prior to the April 12^th Improvement Hearing only one property owner proposed to be assessed for the improvements contacted staff, but after providing additional information to this property owner regarding the proposed assessment there was no further contact.  At the time this report was written, no additional comments regarding special assessments were received therefore Staff does not anticipate receiving any objections to the final assessments during the Assessment Hearing.

Alternatives:
Alternative #1 – Motion to adopt Resolution #16-10-201 adopting the assessment roll certifying  2016 Mill and Overlay Improvements, Improvement Project #16-00 Division B.

Alternative #2 – Motion to deny adoption of Resolution #16-10-201 at this time.

This improvement project is included in the City’s current 5-year Street Reconstruction and Overlay Plan, and is proposed to be funded using a combination of street reconstruction and overlay bond funds, special assessments to benefiting properties, and stormwater utility funds in the following estimated amounts:
 

• Special assessments = $2,850 (3 benefiting properties assessed $950 each)
• Street overlay bond funds = $214,122 ($2,850 to be paid back from special assessments)
• Stormwater utility funds = $18,878

 
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.

Staff recommends Council approval of alternative #1.

Approve or deny adoption of Resolution #16-10-201 adopting the assessment roll certifying assessments for 2016 Mill and Overlay Improvements, Improvement Project #16-00 Division B.