Public Hearing - Adopt Resolution #16-10-202 Adopting Assessment Roll Certifying Andrie Street and 164th Lane Reconstruction Assessments; Improvement Project #16-00 Division C

Purpose:
The purpose of this case is to adopt Resolution #16-10-202 adopting the assessment roll certifying Andrie Street and 164th Lane Reconstruction assessments; Improvement Project 16-00 Division C.

Background:
Improvement Project #16-00 Division C involved the reconstruction of approximately 9,963 linear feet (1.89 miles) of public streets in the Northfork development including Andrie Street from Alpine Drive to 164^th Lane (approx. 6,312 feet), and 164th Lane from Andrie Street to Jarvis Street (approx. 3,651 feet).  Attached is the title sheet of the construction plans which shows the location and scope of the improvements.  Both of these street segments are included in the City’s Municipal State Aid Street system therefore all improvements to these streets are required to meet minimum Minnesota Department of Transportation (MnDOT) State Aid standards.
 
Previous Conditions
Andrie Street and 164^th Lane were constructed in 1985 using bituminous pavement and bituminous curb at a width of 31 feet from back-of-curb to back-of-curb.  A Geotechnical Report was completed in conjunction with the Feasibility Report.  The findings of the Geotechnical Report were based on results gathered from 22 soil borings completed to depths of 10 feet.  The soil borings showed that the original bituminous pavement sections along the improved streets varied in depth from 1½ to 4 inches, that the aggregate base varied in depth from 3 to 7 inches, and that the subgrade soils generally consist of sands and silty sands.
 
Several areas along these streets were relatively flat, and the storm sewer system was generally insufficient to effectively drain stormwater and irrigation system runoff from the streets.  This resulted in an accelerated deterioration of the bituminous pavement and curbs.
 
Both streets were sealcoated in 1992 and 1999, but no overlays were completed on the streets.  In recent years both streets required a significant amount of pothole patching.  The pavement condition of both streets was reviewed by City staff in the fall of 2015 and both streets were assigned Pavement and Surface Evaluation Ratings of 2.  This meant the pavement sections were past the point of considering mill and overlay improvements, and that a complete reconstruction was required instead.

Improved Conditions
Both streets were reconstructed to a width of 33 feet from back-of-curb to back-of-curb, which is 2 feet wider than the previous street width.  This width was ultimately approved by the City Council based on input received from numerous property owners who attended and provided comments at the various public input meetings and City Council meetings that were conducted during development of this project.  The owners generally voiced a desire to keep street widths as narrow as practical to minimize traffic speeds and to prevent the loss of mature boulevard trees along the corridor.  A further consideration was the requirement to meet minimum MnDOT State Aid standards.  The existing 66 foot wide right-of-way along both street segments was not modified.
 
B618 concrete curb and gutter was constructed in place of the previous surmountable bituminous curb.  The new pavement section was constructed using 3½ inches of bituminous pavement over 6 inches modified class 5 aggregate base, meeting MnDOT State Aid standards for a 9-ton pavement rating.  The improved streets are anticipated to have a 60 year life, assuming regular maintenance operations will be completed at prescribed intervals.
 
Storm sewer system improvements, in addition to the use of concrete curb and gutter, included removal of existing catch basins, manholes, and pipes within the streets, and installation a more robust storm sewer system that can more effectively drain runoff from the streets due to stormwater and irrigation systems.  The new storm sewer improvements meet MnDOT State Aid standards for pavement spread and pipe capacities.
 
A parking lane is now designated along the east side of Andrie Street and the north side of 164^th Lane using 4” solid white pavement striping.  The opposing sides of the streets are signed “NO PARKING” using a minimal number of signs that are placed as discretely as possible, primarily along property lines, to minimize visibility when looking out windows.  No centerline or edge stripes were placed with this project. 
 
Public utilities do not exist within these street corridors and no plans exist to serve this area with public utilities so sanitary sewer and watermain improvements were not completed with this project.

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 $6,636.40 per each of the sixty five (65) benefiting properties, which totals $431,366.  Each of the properties proposed to be assessed has their primary access onto the improved section of Andrie Street or 164^th Lane.  The preliminarily approved assessment was set at $9,150 per property.
 
The proposed final assessment is intended to recover 25% of eligible project costs per the City’s adopted Special Assessment Policy.  Since each property proposed to be assessed received the same level of benefit the proposed assessment rate was applied equally to each benefiting property 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 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 being proposed with this project.


Public Comment
Attached is a document containing City staff responses to public comments received regarding special assessments for this project, as well as several frequently asked questions regarding special assessments.

Alternatives:
Alternative #1 – Motion to adopt Resolution #16-10-202 adopting the assessment roll certifying assessments for Andrie Street and 164th Lane Reconstruction, Improvement Project 16-00 Division C.

Alternative #2 – Motion to deny adoption of Resolution #16-10-202 at this time.

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

Construction is not yet complete but the project will be substantially complete within the next few weeks. However, since the vast majority of work is complete and because the remaining work is easily quantifiable, Staff is confident the final construction costs will be very close to the project bid price of $1,568,162.65. Final project costs will be presented in detail at the time that Council is requested to approve final payment, but this will not occur until next year to allow time to verify that turf establishment was completed properly, and to allow approval of all punch list work items following final inspection in the spring.  Final project costs are estimated to be $1,929,000 which includes indirect costs for administration, engineering, finance and legal fees estimated at 23% of construction costs.

A detailed breakout of project costs will be presented during the Assessment Hearing.
 
Special assessments for this project are based solely on eligible project costs which do not include costs related to oversizing the existing street, either in width or pavement thickness, as required to meet MnDOT State Aid standards.  Estimated costs required for oversizing the streets to meet State Aid standards, which includes costs to widen the street by 2 feet and to increase the pavement section to a 9-ton design, total $203,358.75 based on bid prices.  The estimated assessable project cost per bid prices is therefore $1,725,481.31.  This results in a total project assessment amount of $431,366 based on 25% of eligible project costs. This assumes final project costs will be equal to bid prices and that assessments are approved by Council at 25% of final eligible construction costs.  The preliminarily approved assessment amount was $9,150 per parcel.
 
The special benefit consultation report completed for this project by the firm of Patchin Messner Dodd & Brumm anticipates that properties benefiting from the improvements and proposed to be assessed will be enhanced in value by approximately $8,500 to $9,500 per property.  A copy of this report will be available at the Assessment Hearing on October 25th.

Staff recommends Council approval of alternative #1.

Approve or deny adoption of Resolution #16-10-202 adopting the assessment roll certifying assessments for Andrie Street and 164th Lane Reconstruction, Improvement Project 16-00 Division C.