PUBLIC HEARING: Adopt Resolution #17-11-285 Approving Feasibility Report and Ordering Plans and Specifications for Improvement Project #18-00, Stanhope Terrace Street Reconstructions

Purpose:
The purpose of this case is to adopt Resolution #17-11-285 approving Feasibility Report and ordering Plans and Specifications for Improvement Project #18-00, Stanhope Terrace Street Reconstructions.

Background:
City Improvement Project 18-00 proposes to reconstruct three street segments within the Stanhope Terrace residential neighborhood including;

• Ute Street north of Alpine Drive through the north cul-de-sac,
• 154^th Lane between Ute Street and Roanoke Street, and
• 153^rd Court west of Roanoke Street through the west cul-de-sac.

These streets total approximately 2,800 linear feet.  A map showing the location and scope of the proposed improvements is included in Figure 1 in Appendix A of the Feasibility Report, which is included as an attachment to this case.
 
These street segments were constructed in 1991.  Per field observations, record plan documents, and results from Braun Intertec’s geotechnical report and ground penetrating radar (GPR) analysis, the bituminous pavement section ranges from 1.6 to 6.1 inches thick with an average of 2.9 inches, the aggregate base ranges from 2.1 to 10.6 inches thick with an average of 4.9 inches, and the pavement section was built on sandy subgrade materials generally considered suitable for pavement support.  The streets were constructed with bituminous curb to a width of 29-feet from face-of-curb to face-of-curb, and are generally centered within 66-foot wide right-of-ways.
 
The storm sewer system consists of concrete catch basins and pipe that drain runoff from the street to adjacent low-lying areas.  Two catch basins are located along 154^th Lane and drain runoff from the street to a low-lying area with a drainage and utility easement located on the northern 75 feet of 4851 154^th Lane.  Three catch basins are located near the intersection of Ute Street and 154^th Lane.  Storm runoff not collected by these catch basins drains to Alpine Drive and Roanoke Street and collects in those storm sewer systems.
 
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 3, which indicates these streets require complete reconstruction.  City staff patch these streets annually, particularly before winter so the streets can be plowed without further damaging the pavement.  Pictures of the street are located in Appendix A of the Feasibility Report.
 
Proposed improvements include removing existing bituminous curb and replacing with B618 concrete curb and gutter, and reconstructing the existing bituminous pavement section using the Full Depth Reclamation (FDR) process.  The FDR process involves milling the entire existing bituminous pavement section, along with an inch or more of existing underlying aggregate base. This reclaim material would then be spread over the reshaped and compacted subgrade between the concrete curb and gutter, and then the top 3½ inches of reclaim material would be removed and hauled off site.  Then 3½ inches of new bituminous pavement would be installed over the remaining compacted reclaim material, resulting in a 7-ton pavement design, which is standard for residential streets.
 
The existing storm sewer system is in good condition and generally meets City design standards and therefore requires only minimal improvements, including resetting the castings after concrete curb and gutter placement, which will include replacing adjustment rings and re-grouting the inside of the catch basins to a smooth finish.
 
The engineer’s opinion of probable costs for completing the proposed improvements outlined in this report is $430,934.81.  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 of the Feasibility Report.
 
Sixteen (16) parcels have been identified as receiving special benefit from the improvements.  These parcels are identified in the preliminary Assessment Map and Roll, which are included in Appendix C of the Feasibility Report.  Staff recommends assessing 25-percent of eligible improvement costs equally across these 16 parcels using the “per lot” assessment method.  This results in a proposed preliminary assessment rate of $6,733.36 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 Intertec, and Staff considered and incorporated Braun’s recommendations 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 are attached 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.
 
This project would best be constructed in conjunction with the River’s Bend and The North Forty Street Reconstructions projects, is necessary, feasible, and cost-effective from an engineering standpoint, and can be constructed as proposed herein.

In accordance with State Statutes, the attached Notice of Public Hearing was published in the Anoka Union Herald on October 27 and November 3, 2017, and Public Hearing Notices were mailed to all benefiting property owners identified in the preliminary assessment roll.

Observations:
The proposed improvements should have a serviceable life of 60 years, assuming that proactive, regular pavement maintenance treatments are performed during the life of the improvements.
 
Developed properties along the project corridor may have private irrigation systems. Impacts to these systems may occur when existing bituminous curb and gutter is replaced with concrete curb and gutter. 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.
 
Public Comment
On November 1, 2017, Staff conducted a Public Information Meeting from 5:30 - 7:00 pm at City Hall.  Notices for this meeting were mailed to all benefiting property owners.  Seven (7) property owners attended the meeting.  The meeting was conducted as an open house forum, with Staff responding to questions one-on-one from 5:30 – 6:00 pm, and again from 6:35 – 7:00 pm.  A formal presentation was provided by Staff from 6:00 – 6:35 pm, which addressed all aspects of the project including project purpose, scope, and schedule, existing conditions, proposed improvements, estimated project costs, proposed funding sources, including special assessments, and a primer on the Public Hearing.
 
In general, the main comment received was that special assessments are difficult for property owners to absorb, that assessments make it difficult to sell your property, and that these projects should be funded through the general fund.
 
Residents also questioned why concrete curb and gutter is being proposed.  Staff noted that while bituminous curb does exist on numerous streets throughout the City, the observed life expectancy is less than half that of concrete curb and gutter, and that concrete curb and gutter better directs snow plow drivers preventing damage to sod, mailboxes, landscaping, and irrigation system components.  Concrete curb and gutter also better directs drainage along the edges of streets and driveways, and does not degrade as bituminous gutters do.
 
When Staff discussed that irrigations systems are not repaired by the City as part of these projects and that property owners are responsible for repairing their own systems, one resident asked if the City would consider reimbursing residents rather than repairing their systems.  Staff responded that this is not currently an option.
 
Any comments received after this case was prepared will be presented to Council before the Public Hearing is opened.

Alternatives:
Alternative #1 – Motion to adopt Resolution #17-11-285 approving Feasibility Report and ordering Plans and Specifications for Improvement Project #18-00, Stanhope Terrace Street Reconstructions.

Alternative #2 – Motion to deny adoption of Resolution #17-11-285 at this time.

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

The current Capital Improvement Plan (CIP) estimates costs for reconstructing these streets at $850,000.

Per the attached Feasibility Report, the engineer’s opinion of probable project costs is $430,934.81.  A total of 16 residential parcels will benefit from the proposed improvements and are preliminarily proposed to be assessed for 25-percent of eligible project costs which totals $107,733.70.  This equates to preliminary assessments of $6,733.36 per parcel. The City will fund the remaining 75-percent of project costs, which totals $323,201.11.  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.
 
Assessments are proposed to be assessed over a term of ten years, with interest rates proposed at two percent above the bond interest rate.
 
Staff proposes to request Council authorization to order a benefit appraisal consultation for this project in accordance with the City’s Special Assessments Policy at the time Council awards a construction contract.

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 Chapter 8 of the City Charter, the City’s Special Assessments Policy, and Minnesota Statute Chapter 429.

Motion to adopt Resolution #17-11-285 approving Feasibility Report and ordering Plans and Specifications for Improvement Project #18-00, Stanhope Terrace Street Reconstructions.