Public Hearing -  Adopt Resolution #18-012 Accepting Feasibility Report and Ordering Plans and Specifications for Improvement Project #18-03, 2018 Street Overlay Improvements

Purpose:
The purpose of this case is to adopt Resolution #18-012 accepting Feasibility Report and ordering Plans and Specifications for Improvement Project #18-03, 2018 Street Overlay Improvements.

Background:
Numerous public street segments have Pavement and Surface Evaluation Rating (PASER) values between 3 and 5, indicating they are good candidates for receiving pavement overlay improvements.  Overlaying the streets identified within the attached Feasibility Report in 2018 will allow the City to maintain these streets in the most cost-effective manner throughout the serviceable life of the streets.
 
The Feasibility Report includes maps showing the specific street segments proposed to receive bituminous pavement overlay improvements in 2018.  These street segments are located in the following developments:

• Northfork
• Northfork Oaks
• Northfork 2^nd Addition
• Northfork 3^rd Addition
• Northfork Itasca Shores
• The North Forty 2^nd Addition
• The North Forty 3^rd Addition
• Woodland Green

 
The City of Ramsey’s Special Assessments Policy allows 25-percent of eligible overlay project costs to be assessed against benefiting properties.  Per Council approval and direction, Staff prepared a Feasibility Report for the proposed 2018 Street Overlay Improvements.  This allows special assessments to be considered as a funding source per the requirements of the City’s Special Assessment Policy, Chapter 8 of the City Charter, and Minnesota Statute, Chapter 429.  Copies of each document are attached.
 
The proposed improvements are designated as City Improvement Project #18-03, 2018 Street Overlay Improvements.

Staff published Public Hearing Notices twice in the Anoka Union Herald, once on Friday, December 22, and again on Friday, December 29, 2017.
 
Staff also mailed hard copies of the Public Hearing Notices to benefiting property owners via U.S. Mail.

Observations:
The Feasibility Report explores numerous aspects of the proposed improvements including whether they are feasible, necessary, and cost-effective, and whether they should be completed alone or in conjunction with other improvements. Estimated costs and funding sources are also identified within the Feasibility Report, allowing a detailed project funding program to be proposed, which includes the use of special assessments.  A description of the methodology used to calculate individual special assessments for benefiting properties is included in the report. A project schedule is also proposed within the report.

The Feasibility Report incorporates pavement data gathered using Ground Penetrating Radar and soil borings.  This information helped verify the status of the existing pavement sections, and that the proper pavement maintenance treatments are being proposed.
 
The attached Feasibility Report, dated January 3, 2018, incorporates minor revisions to the report dated December 7, 2017, as follows;

• Schedule -  Moved dates for bid authorization, bid opening, and award of contract
• Northfork Itasca Shores Assessment Roll – Added 9190 Andrie Court (map correct)

While project costs are not impacted as a result of these revisions, the proposed assessment rates for Northfork Itasca Shores were reduced from $1,022.49 to $929.54 per property.
 
Public Comment
Staff conducted a public open house from 5:30 – 7:30 PM on January 3, 2018 as identified in the proposed project schedule in the Feasibility Report.  Meeting notices were mailed to all benefiting property owners.  The intent of the open house was to address any questions the public may have on the purpose and scope of the proposed improvements, the estimated costs, the proposed funding program including special assessments, and the project schedule.  Only one person attended and they were supportive of the project as proposed for their neighborhood (Woodland Green).  This was the only public comment received by Staff.

Alternatives:
Alternative #1 – Motion to adopt Resolution #18-012 accepting Feasibility Report and ordering Plans and Specifications for Improvement Project #18-03, 2018 Street Overlay Improvements.
 
Alternative #2 – Motion to deny adoption of Resolution #18-012 at this time.

The Feasibility Report was completed in-house as part of staff’s regular duties.  The preparation of final plans and specifications will also be completed in-house as part of staff’s regular duties.

The City’s 5-year Street Reconstruction and Overlay Program includes the streets listed above as proposed 2018 overlay improvements, allowing the City to utilize street reconstruction bonds to fund the improvements.  The City’s current 10-year Capital Improvement Plan (CIP) also identifies these streets as proposed 2018 overlay improvements.  Copies of each are attached for reference.
 
The Feasibility Report identifies an estimated project cost of $585,460.78.
 
Special assessments are proposed to fund 25% of eligible project costs, totaling $146,365.19.  Proposed special assessment amounts are different for each project area.  To be consistent with past practice, special assessments are proposed to be the same across all properties in a given project area because each property will receive essentially the same benefit based on similar property values.  This is consistent with the “per lot” method of assessment defined within the City’s Special Assessments Policy.  It is important to remember that the Feasibility Report identifies proposed special assessment amounts.  Final assessment amounts may be more or less based on actual construction costs.
 
Street reconstruction bonds will ultimately fund all remaining project costs in the estimated amount of $439,095.59.

Staff recommends approval of Alternative #1, allowing these public streets to be most cost-effectively maintained.

Motion to adopt Resolution #18-012 accepting Feasibility Report and ordering Plans and Specifications for Improvement Project #18-03, 2018 Street Overlay Improvements.