Adopt Resolution #17-10-272 Accepting Feasibility Report and Ordering Public Hearing for Improvement Project #18-01, North Forty Street Reconstructions

Purpose:
The purpose of this case is to adopt Resolution #17-10-272 accepting the Feasibility Report and ordering a Public Hearing on November 14, 2017, for Improvement Project #18-01, North Forty Street Reconstructions.

Background:
City Improvement Project #18-01 proposes to reconstruct streets within the North Forty neighborhood including 163^rd Lane, Alpaca Street, Chameleon Street, and 164^th Lane.  The streets total approximately 2,750 linear feet (0.52 miles) in length.  A map showing the location and scope of the proposed improvements is included in the attached Feasibility Report as Figure 1 in Appendix A. 
 
The North Forty neighborhood was constructed in 1989.  Based on results from the geotechnical report and ground penetrating radar (GPR) analysis performed by Braun Intertec, field observation and record plan documentation, the bituminous pavement section ranges from 1.3 to 3.7 inches thick with an average of 2.2 inches.  The aggregate base ranges from 1.4 to 8.4 inches thick with an average of 4.4 inches. The road section was built on sandy subgrade material generally considered suitable for pavement support.  The streets were constructed with bituminous curb to a width of 30-feet from face-of-curb to face-of-curb, and are generally centered within a 66-foot right-of-way.  The storm sewer system consists of a catch basin at the intersection of 163^rd Street and Alpaca, a bituminous flume between 16420 and 16450 Alpaca Street, a bituminous flume at 16427 Chameleon Street, and a bituminous flume on the cul-de-sac on 164^th Lane.  The storm sewer systems drain to 3 low-lying areas located within drainage and utility easements.
 
City staff evaluates and rates the condition of pavement sections on all City streets on an annual basis using the Pavement Surface Evaluation and Rating (PASER) system.  In the summer of 2017, the pavement section of the above-referenced street segments were rated with a PASER rating of 4 which indicates these streets require complete reconstruction, and for City staff to patch the streets at least once per year, particularly before winter so the street can be plowed without damaging the pavement in the process.  Pictures of the street are located in Appendix A.
 
Proposed improvements include replacing existing bituminous curb with B618 concrete curb and gutter and reconstructing the existing bituminous pavement section using the Full Depth Reclamation (FDR) process.  This process involves reclaiming the entire existing bituminous pavement section along with a portion of the existing aggregate base material.  A portion of this reclaimed (ground and mixed) material would then be spread and compacted on top of the reshaped and compacted subgrade.  Then 3.5 inches of bituminous pavement would be placed, generally meeting the City of Ramsey’s standard pavement design.
 
The existing storm sewer system will be upgraded to meet City design standards.  This will include additional catch basins placed along the roadway, and replacing the existing bituminous flumes where possible. 
 
The engineer’s opinion of probable costs for completing the proposed improvements on the North Forty as outlined in this report is $518,685.13.  Estimated costs include 5% contingency costs plus 23% indirect costs for administrative, engineering, finance and legal costs.  A summary of the engineer’s opinion of probable costs is included in Appendix B.
 
A total of 15 assessable parcels have been identified.  Staff recommends applying 25-percent of the eligible improvement costs equally across the 15 assessable properties using the “per lot” assessment method.  This results in a proposed preliminary assessment rate of $8,644.75 per assessable parcel.
 
Staff recommends ordering a special benefit consultation report for this project to verify the proposed assessment amount will not exceed the benefit to the properties.  If the report concludes the benefit to the properties is less than the proposed preliminary assessment rate, Staff will then propose to lower the assessment rate accordingly during the Assessment Hearing, which is scheduled for October 9, 2018.  If the report verifies the assessment rate as proposed is justified, Staff will propose to adopt the final assessment roll using the rate as preliminarily proposed.
 
Five soil borings were completed by Braun Intertec to assist with the preparation of this report.  Pavement design recommendations were offered by Braun and Staff considered and incorporated to varying degrees while preparing this report.  Ground Penetrating Radar (GPR) was conducted on all street segments within the project.  The GPR identifies existing bituminous pavement and aggregate base thicknesses, and is used to help staff determine the appropriate treatment.  Copies of Braun Intertec’s GPR results and Geotechnical Exploration report are included in Appendix C of the Feasibility Report.
 
This improvement project, which is listed in the City’s current 10-year Capital Improvement Plan, is proposed to be funded using a combination of special assessments to benefiting properties, street reconstruction bond proceeds, and storm sewer funds.
 
Staff has not yet discussed the proposed improvements with local property owners.  However, Staff has scheduled a meeting for November 7, 2017 with local property owners for the purpose of explaining the proposed improvements and assessments in more detail, and to gather their input on the project, including any information which should be explored in more detail during development of plans and specifications.  Staff will incorporate comments and present this information to Council during the Public Hearing. 
 
This project would best be constructed in conjunction with the River’s Bend Street Reconstructions and the Stanhope Terrace Street Reconstructions projects, is necessary, feasible, and cost-effective from an engineering standpoint, and can be constructed as proposed herein.

Upon Council approval, Staff will publish the Public Hearing Notice in the Anoka Union Herald on October 27 and November 3, 2017.  Staff will also mail Public Hearing Notices to the owners of all benefiting properties.

Observations:
Developed properties along the project corridor may have private irrigation systems. Impacts to these systems may occur where the existing curb and gutter is being replaced. Staff will notify property owners in writing of the pending construction as far in advance of construction as possible to allow them time to move their irrigation system components out of the construction area, after which they may replace the components in their original locations.

Alternatives:
Alternative #1 – Motion to adopt Resolution #17-10-272 accepting the Feasibility Report and ordering a Public Hearing on November 14, 2017, for Improvement Project #18-01, North Forty Street Reconstructions.

Alternative #2 – Motion to deny adoption of Resolution #17-10-272 at this time.

The Feasibility Report will be completed in-house as part of Staff’s regular duties.

The current Capital Improvement Plan (CIP) estimates costs for reconstructing these streets at $900,000. Estimated project costs and funding sources will be further refined during preparation of the Feasibility Report.

Per the attached Feasibility Report, the engineer’s opinion of probable project costs is $518,685.13.  A total of 15 residential parcels will benefit from the proposed improvements and are preliminarily proposed to be assessed for 25-percent of eligible project costs which totals $129,671.28.  This equates to preliminary assessments of $8,644.75 per parcel. The City will fund the remaining 75-percent of project costs, which totals $389,013.85.  The City’s costs will be funded using Street Reconstruction and Overlay Program bond funds, as well as a small amount of Stormwater Utility Funds.

Staff recommends Alternative #1 to allow the project to be constructed as part of the 2018 Street Maintenance Program, and to allow for the use of special assessments to pay for a portion of the project costs per the applicable provisions of the City Charter, the City’s Special Assessments Policy, and Minnesota Statute, Chapter 429.

Motion to adopt Resolution #17-10-272 accepting the Feasibility Report and ordering a Public Hearing on November 14, 2017, for Improvement Project #18-01, North Forty Street Reconstructions.