Adopt Resolution #18-034 Approving Plans and Specifications and Authorizing Advertisements for Bids for River's Bend Street Reconstructions, Improvement Project #17-02

Purpose:
The purpose of this case is to adopt Resolution #18-034 approving plans and specifications and authorizing advertisements for bids for River’s Bend Street Reconstructions, Improvement Project #17-02.

Background:
Attached is a copy of the plans prepared by City staff for Improvement Project #17-02, River’s Bend Street Reconstructions.
 
This project proposes to reconstruct four street segments within the River’s Bend residential neighborhood including;

• 147th Lane from the west River’s Bend plat line to Waco Street,
• 148th Avenue from the west River’s Bend plat line to Xkimo Street,
• Xkimo Street between 147th Lane and 149th Avenue/Sunwood Drive, and
• Yakima Street between 148th Avenue and 149th Avenue/Sunwood Drive.

These street segments total approximately 2,774 feet in length as shown on the title sheet of the attached plans.
 
These streets were constructed in 1985 using bituminous pavement and surmountable concrete curb and gutter.  Based on 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 0.9 to 5.4 inches thick, the aggregate base ranges from 1.8 to 10.3 inches thick, and the pavement section was built on sandy subgrade materials generally considered suitable for pavement support.  All streets are 30 feet wide from face-of-curb to face-of-curb, centered within 60-foot wide right-of-ways.
 
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 received PASER ratings of 3.  This indicates these street segments are past the point of applying overlay improvements and require complete reconstruction.  City staff patch these streets annually, particularly before winter so the streets can be plowed without further damaging the pavement.
 
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.  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 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 consists of four concrete catch basins located at a low point on Xkimo Street, which drains stormwater runoff from the street into the Rum River via concrete storm sewer pipes.
 
The existing storm sewer system is in good condition and generally meets City design standards.  The only storm sewer work proposed is resetting the castings after replacing adjusting rings and re-grouting the insides of the catch basins.
 
Municipal sanitary sewer and water utilities exist under each street segment.  The attached plans do not propose improvements to these utilities, except for casting adjustments.  These utilities are scheduled to be tested to verify that they are in good operating condition and should not require repairs during the serviceable life of the improvements (60 years).  If the tests reveal that repairs are necessary, this work would be completed separately before any work on this project commences.
 
Proposed project schedule:
February 12 – Approve Plans and Specifications / Authorize Ads for Bids
February 16 & 23 – Publish Ads for Bids (Anoka Union Herald, Finance & Commerce)
March 15 – Public bid opening
March 27 – Accept Bids / Award Contract
Late May / early June – Begin construction
August 31 – Substantial completion (open to traffic)
October 9 – Assessment Hearing

Public notifications were not required in advance of this case.

Upon Council authorization to advertise for bids, advertisements will be published in the Anoka Union Herald and in Finance & Commerce on February 16th and 23rd.

Observations:
The proposed improvements should have a serviceable life of 60 years, assuming that proactive maintenance operations are performed regularly during the life of the improvements.  However, since a majority of the existing concrete curb and gutter is not proposed to be replaced, this curb and gutter will be monitored over time and if it needs to be replaced before the improvements proposed with this project reach the end of their serviceable life, Staff will re-evaluate the pavement condition at that time.
 
Some properties may have private irrigation systems.  Impacts to these systems may occur because of the proposed improvements. 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 away from construction activities.  After the project is complete, property owners may replace irrigation systems in their previous locations if desired.  As previously discussed, all costs to relocate private irrigation system components will be the responsibility of the property owners.  However, if private irrigation systems are damaged due to negligence on the part of the City’s contractor, the contractor will be responsible to repair the damage.
 
Alternatives:
Alternative #1 – Motion to adopt Resolution #18-034 approving plans and specifications and authorizing advertisements for bids for River’s Bend Street Reconstructions, Improvement Project #17-02.

Alternative #2 – Motion to deny adoption of Resolution #18-034 at this time.

The engineer’s opinion of probable project costs for the proposed improvements based on final plans and specifications is $292,308.27.  This cost includes 23% indirect costs for administrative, engineering, finance and legal costs.  By comparison, the Feasibility Report estimated project costs at $301,738.31.
 
The improvements are proposed to be funded using a combination of Street Reconstruction and Overlay Program bond funds ($217,755.20), Stormwater Utility Funds ($1,476), and special assessments to benefitting properties ($73,077.07).
 
Forty-four (44) residential parcels use these streets to access their properties and will therefore receive special benefit from the improvements.  Staff proposes to assess up to 25-percent of eligible project costs equally across these 44 parcels using the “per lot” assessment method.  This results in proposed assessments of $1,660.84 per parcel per the current cost estimate.  Last November, assessments were preliminarily adopted in the amount of $1,714.42 per parcel.
 
Final assessment amounts will be proposed based on actual construction costs and the findings of the special benefit consultation report.  Staff will request Council authorization to order a special benefit consultation report for this project in accordance with the City’s Special Assessments Policy at the time Council awards a construction contract.  The purpose of this report is to help verify that assessments will not exceed the benefit to assessed parcels due to the improvements.
 
Staff proposes to let this project for bids at the same time as the Stanhope Terrace Street Reconstructions project with the intent of realizing cost savings due to economies of scale.  Due to their close proximity, contractors will likely bid on both projects, allowing for lower unit bid prices due to increased quantities.

Staff recommends Alternative #1.  This will allow the project to be constructed as part of the 2018 Street Maintenance Program, and will allow for the use of special assessments to pay for up to 25% of eligible 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 #18-034 approving plans and specifications and authorizing advertisements for bids for River’s Bend Street Reconstructions, Improvement Project #17-02.