Adopt Resolution #17-07-170 Ordering Feasibility Report for Improvement Project #18-02, Hy-10 Ramsey Street Reconstructions

Purpose:
The purpose of this case is to adopt Resolution #17-07-170 ordering a Feasibility Report for Improvement Project #18-02, Hy-10 Ramsey Street Reconstructions.

Background:
The City of Ramsey’s current 10-year Capital Improvement Plan, which covers calendar years 2017 to 2026, identifies numerous streets proposed to be reconstructed in 2018 as part of the City’s long-term Street Maintenance Program.  Though none of the streets in Ramsey Hy-10 are listed in the current CIP, these streets were originally proposed to receive mill and overlay improvements in 2015.  However, due to the pending construction of the Armstrong Interchange and the re-evaluation of the condition of the streets, staff determined it would be best to reconstruct these streets in the future.
 
Approximately 0.27 miles of streets in the Hy-10 Ramsey development, which is located in the south-central portion of the City, are in need of reconstruction.  These streets, which are identified in the attached figure, include:

• 146^th Avenue, 250 feet east of Ferret Street
• 147^th Avenue, 250 feet east of Ferret Street
• Ferret Street, north of 146th Avenue

 
Upon Council authorization, the Feasibility Report will be prepared in-house.  While preparing the report, Staff will explore available options for minimizing project costs, such as by reclaiming existing pavement sections rather than removing and replacing all existing pavement.
 
The Feasibility Report will utilize data currently being gathered using Ground Penetrating Radar and soil borings per previous Council approvals.

No notifications are required for this case.

Observations:
Preparing a Feasibility Report for the proposed improvements will allow staff to refine estimated project costs and develop a proposed funding program, and allows for the use of special assessments against benefiting properties as a partial funding source.

The Feasibility Report will explore numerous aspects of the proposed improvements including whether they are feasible and necessary, whether they are cost-effective, and whether they should be completed alone or in conjunction with other improvements.  Estimated costs will be explored in greater detail than was used to estimate costs for the CIP.  A more detailed project funding program will also be explored, including a description of the methodology used to calculate individual special assessments for benefiting parcels.  A proposed project schedule will also be explored in greater detail.

While preparing the Feasibility Report, Staff will conduct a public information meeting with the business and property owners of Hy-10 Ramsey to explain the need for the proposed improvements, the scope of the improvements, estimated costs, proposed funding program, and proposed schedule.
 
Staff anticipates requesting Council acceptance of the Feasibility Report this September to allow the project to proceed in a timely manner with construction beginning in the spring of 2018.  This will also provide for compliance with all applicable provisions of the City Charter, the City’s Special Assessments Policy, and Minnesota Statute Chapter 429.

Alternatives:
Alternative #1 – Motion to adopt Resolution #17-07-170 ordering a Feasibility Report for Improvement Project #18-02, Hy-10 Ramsey Street Reconstructions.

Alternative #2 – Motion to deny adoption of Resolution #17-07-170 at this time.

The Feasibility Report will be completed in-house as part of Staff’s regular duties.  No additional expenditures are anticipated.

Based on 2013 cost estimates, the City of Ramsey is funding approximately $11,000,000  for Street Maintenance Program costs over the 5-year period from 2015 to 2019. This equates to an average 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 $1,700,000 to fund mill and overlay and street reconstruction projects. Per the adopted Special Assessments Policy, special assessments may fund up to 25% of mill and overlay and street reconstruction projects. Staff therefore proposes to use street reconstruction and overlay bonds to pay for project costs initially, after which up to 25% will be paid back over time using special assessment proceeds.

Staff recommends Alternative #1.

Motion to adopt Resolution #17-07-170 ordering a Feasibility Report for Improvement Project #18-02, Hy-10 Ramsey Street Reconstructions.