Adopt Resolution #16-12-242 Ordering Feasibility Report for Improvement Project #17-02, 2017 Mill and Overlay Improvements

Purpose:
The purpose of this case is to adopt Resolution #16-12-242 ordering preparation of a Feasibility Report for the proposed mill and overlay improvements to be completed as part of 2017 Street Maintenance Program.
 
Background:
City staff has identified various street segments whose Pavement and Surface Evaluation Rating (PASER) values indicate the streets should receive mill and overlay improvements in 2017 to maintain the streets in the most cost-effective manner. These improvements will be designated as Improvement Project #17-02, 2017 Mill and Overlay Improvements.

The City of Ramsey’s Street Assessments Policy allows 25% of mill and overlay project costs to be assessed against benefiting properties so staff is requesting that City Council order a Feasibility Report for the proposed 2017 mill and overlay improvements. This report is necessary to meet the requirements of Minnesota Statue Chapter 429 to allow special assessments to be used as a funding source.

The following street segments are proposed to receive mill and overlay improvements in 2017 per the current CIP.
 

• 147th Lane – Xkimo Street to Waco Street
• 148th Avenue – Yakima Street to Xkimo Street
• Xkimo Street – 147th Lane to 149th Avenue
• Yakima Street – 148th Avenue to 149th Avenue

 
Figure 1 (attached) shows the general location of these streets.

No notifications are required for this case.

Observations:
Preparing a Feasibility Report will allow staff to further refine the estimated costs and funding breakdowns for the proposed improvements, and will allow the City to consider using special assessments against benefiting properties as a funding source for this project.

The Feasibility Report will explore numerous aspects of the proposed improvements including whether the proposed improvements are feasible and necessary, whether they are cost-effective, and whether they should be completed as proposed or in conjunction with some other improvement project. The estimated costs of the proposed improvements will be explored in more detail, as will a project funding program including a description of the methodology used to calculate individual assessments for benefiting parcels. A proposed project schedule will also be identified.

If a Feasibility Report is ordered, staff anticipates requesting Council acceptance of the report in late January or early February in anticipation of ordering a Public Hearing for late February or early March as required by Minnesota Statute Chapter 429.  This schedule will allow the project to proceed in a timely manner and to receive competitive bids in the spring of 2017.

Completing the Feasibility Report at this time will allow the City to develop the project in a timely manner and to advertise for bids over the winter when bidding is typically most competitive.

Alternatives:
Alternative #1 – Motion to adopt Resolution #16-12-242 ordering a Feasibility Report for Improvement Project #17-02, 2017 Mill and Overlay Improvements.

Alternative #2 – Motion to deny adoption of Resolution #16-12-242 at this time.

The Feasibility Report will be completed in-house as part of staff’s regular duties.  The only external expenses that are anticipated are to complete pavement corings to verify that sufficient pavement sections exist to complete mill and overlay operations on these streets.  This work is anticipated to cost less than $6,000.  This work is recommended due to issues that were encountered in 2016 when overlaying Sunwood Drive, resulting in additional project costs.  This occurred when milling operations encountered pavement thicknesses that were less than 2” in depth resulting in the need to excavate some subgrade materials in the area of the thin pavement and to create a new base course for the new wear course to adhere to.  By completing pavement corings Staff plans to minimize such risks.

The City’s current Capital Improvement Plan (CIP) identifies the streets listed above as proposed 2017 mill and overlay improvements, allowing the City to utilize street reconstruction and overlay bonds to fund the improvements.

Based on 2013 estimated costs, the City of Ramsey is funding approximately $11,000,000 for annual Street Maintenance Program projects over the 5-year period from 2015 to 2019. This equates to an annual expenditure of $2,200,000 to fund all sealcoat, mill and overlay, and street reconstruction projects. The City currently budgets $500,000 annually for sealcoat projects, leaving approximately $1,700,000 to fund annual mill and overlay and street reconstruction projects. Per the recently adopted Special Assessments Policy, special assessments may be utilized to fund a portion of mill and overlay and street reconstruction projects. Staff therefore proposes to use street reconstruction and overlay bonds to fund the annual mill and overlay and street reconstruction projects, which will be paid back over time in part with special assessment proceeds.

Based on preliminary cost estimates, the proposed 2017 mill and overlay project cost is estimated to cost $175,000.  More details on estimated project costs and funding sources and amounts will be addressed within the Feasibility Report and will be discussed in detail when the Feasibility Report is presented to Council for consideration of approval.

Staff recommends Alternative #1 to allow the project to be completed in the spring/summer of 2017, and to allow for the use of special assessments to pay for a portion of the project costs per the requirements of Minnesota Statute Chapter 429 and the City’s adopted Special Assessments Policy.

Motion to adopt Resolution #16-12-242 ordering a Feasibility Report for Improvement Project #17-02, 2017 Mill and Overlay Improvements.