Adopt Resolution #17-10-273 Accepting Updated Feasibility Report and Ordering Public Hearing for Improvement Project #17-02, River's Bend Street Reconstructions

Purpose:
The purpose of this case is to adopt Resolution #17-10-273 accepting the updated Feasibility Report and ordering a Public Hearing on November 14, 2017, for Improvement Project #17-02, River’s Bend Street Reconstructions.

Background:
City Improvement Project #17-02 proposes to reconstruct four street segments within the River’s Bend residential neighborhood including 147th Lane between Xkimo Street and Waco Street, 148th Avenue between Yakima Street and Xkimo Street,  Xkimo Street between 147th Lane and 149th Avenue, and Yakima Street between 148th Avenue and 149th Avenue.  These streets total approximately 2,774 linear feet (0.53 miles) in length.  A map showing the location and scope of the proposed improvements is included as Figure 1 in Appendix A.
 
These street segments in the River’s Bend neighborhood were constructed in 1985 with between 2 inches and 3.25 inches of bituminous pavement, 4 inches class 5 aggregate base, surmountable concrete curb and gutter, and concrete storm sewer.  The street was constructed to a width of 30 feet from face-of-curb to face-of-curb, and is centered within a 60-foot wide right-of-way.  The storm sewer system consists of catch basins which drain runoff from the street to low-lying areas using concrete storm sewer pipes.
 
City staff evaluates and rates the condition of pavement sections on all city streets on an annual basis using the Pavement and Surface Evaluation Rating (PASER) system.  In the fall of 2016, these street segments within the River’s Bend neighborhood were rated with PASER ratings of 3, which indicates this street is past the point of applying mill and overlay improvements. The current condition of these streets requires City staff to patch the streets at least once per year, particularly before winter so the street can be plowed without further damaging the pavement in the process.  Pictures of this street segment are located in Appendix A.
 
Proposed improvements include removing and replacing all damaged concrete curb and gutter sections, and reconstructing the existing bituminous pavement section using the Full Depth Reclamation (FDR) process.  This process would involve milling the entire existing bituminous pavement section, along with one inch or so of existing aggregate base. This reclaim material would then be spread over the reshaped and compacted subgrade between the curb and gutter, then the top 3½ inches of reclaim material would be removed and hauled off site, after which 3½ inches of new bituminous pavement would be installed over the remaining compacted reclaim material.  This would result in a 7-ton pavement design, which is standard for residential streets.
 
The existing storm sewer system is in good condition.  Only casting adjustments are proposed.
 
The engineer’s opinion of probable costs for completing the proposed improvements on River’s Bend as outlined in this report is $301,738.31.  Estimated project costs include 5-percent contingency costs and 23-percent 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 forty-four (44) parcels have been identified as receiving special benefit from the improvements. These parcels are identified in the preliminary Assessment Map and Roll, which are attached in Appendix C.
 
A total of twelve (12) pavement corings were completed by WSB and Associates (WSB) to assist with the preparation of this report.  WSB offered pavement design recommendations, which were considered and incorporated to varying degrees while preparing this report. A copy of WSB’s report is attached in Appendix D.
 
This improvement project, which is listed in the City’s current Capital Improvement Program, is proposed to be funded using a combination of special assessments to benefiting properties, street reconstructions bond proceeds, and stormwater utility funds.
 
Staff recommends using special assessments to pay for 25-percent of eligible improvement costs, which will be applied across 44 assessable properties using the “per lot” method of assessment, which is the typical method used for single family parcels having approximately the same size. All costs for this project are eligible for special assessments since the street is proposed to be reconstructed at its existing width, and since the existing and proposed pavement sections both meet 7-ton design standards meaning they are equivalent sections.  This project does not include any ineligible project costs related to the use of special assessments.
 
Staff recommends ordering a special benefit consultation report for this project to verify that the proposed assessment amounts will not exceed the amount of benefit to any of these properties. If the report concludes that the benefit to any of the properties is less than the proposed preliminary assessment rate, Staff would propose to lower the assessment rate accordingly at the Assessment Hearing.  However, if the special benefit consultation report verifies that the assessment rates as proposed are justified, Staff would propose to adopt the final assessment roll using the rate as preliminarily proposed.
 
Staff has not yet discussed the proposed improvements or the use of special assessments to pay for a portion of the improvements with property owners.  However, Staff has scheduled a meeting with property owners for the purpose of explain 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.
 
On January 24, 2017, the City Council directed Staff to postpone the River’s Bend Street Reconstructions project until the 2018 construction season, allowing the project to be constructed in conjunction with the Stanhope Terrace Street Reconstructions project.  The intent of this direction was to provide for the most cost-effective project by combining it with a similar project in close proximity, thereby potentially realizing a cost savings due to economies of scale. 
 
This project was initially intended to be a mill and overlay improvements project, but after learning that the existing bituminous pavement section would not allow for a mill and overlay due to pavement thicknesses in some locations of only 2-inches, the project was converted to a full pavement reconstruction.

This project is necessary, feasible, and cost-effective from an engineering standpoint, and can be constructed as proposed in the feasibility report.  Staff proposes to bid and construct the proposed improvements in conjunction with the other two street reconstruction projects proposed for 2018 in the Stanhope Terrace and North Forty developments.

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:
The proposed pavement design should result in a minimum pavement life of at least 30 years, assuming that proactive, regular pavement maintenance treatments are performed during the life of the pavement. While a 60-year design life would typically be targeted for a reconstructed street, this project is not proposing a full street reconstruction due to the good condition of the majority of the existing 30-year old curb and gutter. Therefore, only the bituminous pavement is proposed to be reconstructed at this time as it may make sense to replace the pavement section at the time the rest of the existing curb and gutter is replaced, which may be 30 or more years in the future.

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 #17-10-273 accepting the updated Feasibility Report and ordering a Public Hearing on November 14, 2017, for Improvement Project #17-02, River’s Bend Street Reconstructions.

Alternative #2 – Motion to deny adoption of Resolution #17-10-273 at this time.

City staff prepared the Feasibility Report in-house as part of staff’s normal duties.

WSB and Associates, Inc. prepared a Pavement Evaluations and Recommendations report at a not-to-exceed cost of $3,290.

The engineer’s opinion of probable project costs is $301,738.31.  A total of 44 residential parcels will benefit from the proposed improvements and are preliminarily proposed to be assessed for 25-percent of eligible project costs which totals $75,434.58.  This equates to preliminary assessments of $1,714.42 per parcel. The City will fund the remaining 75-percent of project costs, which totals $226,303.73.  These 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 #17-10-273 accepting the updated Feasibility Report and ordering a Public Hearing on November 14, 2017, for Improvement Project #17-02, River’s Bend Street Reconstructions.