Adopt Resolution #18-174 Accepting Draft Feasibility Report and Ordering Public Input Meeting for Improvement Project #18-02, HY-10 Ramsey Street Reconstructions

Purpose:
The purpose of this case is to accept the Draft Feasibility Report and order a Public Input Meeting at 9 AM on September 13, 2018, for Improvement Project #18-02, HY-10 Ramsey Street Reconstructions.

Background:
City Improvement Project No. 18-02 proposes to reconstruct public street segments within the HY-10 Ramsey development including 146^th Avenue, 147^th Avenue, and Ferret Street. The length of the street segments proposed to be reconstructed total approximately 1,400 linear feet (0.27 miles). A map showing the scope of the proposed improvements is included as Figure 1 in Appendix A of the attached Draft Feasibility Report.
 
These streets were constructed in 1988 with bituminous curb and pavement at a width of 40 feet from face-of-curb to face-of-curb, and are generally centered within a 66-foot wide right-of-way.  However, in 2015, the west end of 146^th Avenue was reconstructed as a cul-de-sac during the Highway 10/Armstrong Interchange project, and in 2012, the east end of 147^th Avenue was reconstructed during the reconstruction of the intersection of Armstrong Boulevard/Sunwood Drive/147^th Avenue.
 
The storm sewer system consists of openings in the bituminous curb at the north end of the Ferret Street cul-de-sac and the east end of the 146^th Avenue cul-de-sac. Utility easements exist north of Ferret Street and along the northern boundary of the eastern Ferret Street cul-de-sac which has shallow ditches leading towards Armstrong Boulevard. Stormwater runoff from 147^th Avenue is collected in catch basins installed with the 2012 Sunwood Drive re-alignment project, and is directed under Armstrong Boulevard via storm sewer to existing regional ponds east of Armstrong Boulevard.
 
The existing bituminous pavement section ranges from 1.6 to 6.1 inches thick, with an average thickness of 2.9 inches, and the aggregate base ranges from 4.3 to 15.5 inches thick, with an average thickness of 9.7 inches. Pavement section thicknesses were determined using data collected by Braun Intertec in 2017 via Ground Penetrating Radar (GPR), as well as from field observations and record plan documents. Copies of Braun Intertec’s GPR results are included in Appendix C of the attached Draft Feasibility Report. The pavement section was built on sandy subgrade material generally considered suitable for pavement support.
 
City staff annually evaluates and rates the condition of pavement sections on all City streets 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 2, indicating these streets require complete reconstruction.  City staff patch these streets at least once per year, particularly before winter so the streets can be plowed without further damaging the pavement. Pictures of the streets are located in Appendix A of the attached Draft Feasibility Report.
 
On July 11, 2017, the City Council adopted Resolution #17-07-170 ordering preparation of a Feasibility Report for the reconstruction of streets in HY-10 Ramsey. These streets were originally included in the City’s CIP as proposed 2015 overlay improvements. However, the overlay work was delayed when construction of the Highway 10 & Armstrong Boulevard Interchange was funded. Following completion of the Interchange, the pavement was re-evaluated and Staff determined the pavement was no longer viable for overlay improvements and instead required reconstruction.  This project is now included in the current 10-year CIP as a reconstruction project.
 
When the City Council ordered the Feasibility Report, Staff was directed to review the existing streets in HY-10 Ramsey and explore whether the streets should be reconstructed in the same locations, or whether it might make sense to realign or extend one or more of the streets to better serve existing properties and/or to connect to Bunker Lake Industrial Park.
 
Staff therefore explored numerous alternative street alignments and/or extensions. In May of 2018, the Development Review Committee (DRC), which consists of Staff from various departments, reviewed several design alternatives and recommended reconstructing the streets in their current footprints using a pavement section similar to the existing section while replacing all existing bituminous curb on 146^th Avenue and Ferret Street, and to extend the existing watermain and construct concrete curb and gutter along 147^th Avenue to Ferret Street since this street will likely not be modified during redevelopment. In the end, due to the uncertainty of future development/redevelopment scenarios, Staff determined there are simply too many unknowns to justify the expense of realigning or extending street segments at this time.
 
Attached is a figure showing the properties currently for sale in HY-10 Ramsey (to the best of Staff’s knowledge) which indicates the potential for redevelopment may exist in the not too distant future.  However, at this time Staff is proposing to reconstruct the streets in the same locations as they exist today with a similar pavement section as the existing section, which should provide a design life of at least 30 years.
 
Staff has not discussed the proposed improvements with local property owners. However, staff is seeking Council approval to schedule a public information meeting for 9:00 AM on September 13, 2018 for the purpose of explaining the proposed improvements, estimated costs, and funding program, including the use of special assessments.  The input gathered at this meeting will be shared with Council before they are asked to order the Public (Improvement) Hearing.  Based on Council direction, the input could help shape development of plans and specifications.
 
The Feasibility Report proposes to reconstruct the existing bituminous pavement section using the Full Depth Reclamation (FDR) process which involves reclaiming (grinding and mixing) the existing bituminous pavement with an inch or more of existing aggregate base material. A portion of this reclaimed material is proposed to be spread and compacted on top of the reshaped and compacted existing subgrade/aggregate base. Three and one-half inches of bituminous pavement is then proposed to be installed on top of a minimum of 6 inches of aggregate base (existing aggregate base/reclaim material). This pavement section would generally match the existing pavement section on these streets, and would meet the City of Ramsey’s minimum standard pavement design.
 
Though the design strength of the proposed pavement section may be slightly less than a typical industrial park pavement section, Staff believes it will provide a useful life of at least 30 years based on the life achieved by the existing pavement section. Staff also believes there is a potential for this development to redevelop within the next 10 to 20 years, resulting in the potential realignment of streets.
 
This project would best be constructed as a stand-alone project and is necessary, feasible, and cost-effective from an engineering standpoint, and can be constructed as proposed herein.

Notifications are not required for this case.  Following Council approval, Staff will mail letters to the owners of the nine benefiting properties proposed to be assessed for a portion of the costs inviting them to a public input meeting at 9 AM on September 13, 2018.  Staff will also attempt to notify these property owners by email.
 
When/if preparation of plans and specifications are approved, Staff will contact the property owner of 14700 147^th Avenue NW to inform them of the proposed project.  This property, along with the City-owned property at 8020 147^th Avenue NW, are not proposed to be assessed since no improvements are proposed adjacent to these parcels.

Observations:
Staff originally intended to conduct a public information meeting with benefiting property owners of HY-10 Ramsey while preparing the Feasibility Report to explain the purpose and need for the proposed improvements, the scope of the improvements, estimated costs, the proposed funding program, and proposed schedule.  However, due to the noted uncertainty regarding future redevelopment scenarios and Staff’s determination that there are too many unknowns to justify the expense of realigning or extending street segments at this time, Staff felt it would be best to discuss the draft Feasibility Report with the Public Works Committee and with City Council before conducting a public input meeting.

If Council orders a public input meeting for September 13^th, any input received will be presented to Council at their September 25, 2018 regular meeting, after which Council will be asked to accept the Feasibility Report and order a Public (Improvement) Hearing for October 9, 2018.
 
Alternatives:
Alternative #1– Motion to accept the Draft Feasibility Report and order a Public Input Meeting at 9 AM on September 13, 2018, for Improvement Project #18-02, HY-10 Ramsey Street Reconstructions.

Alternative #2 – Motion of other.

The engineer’s opinion of probable costs for the proposed improvements, including streets, drainage, and public utilities, is $287,646.65. Estimated costs include 10-percent contingency costs plus 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 of the attached Draft Feasibility Report.
 
The project is proposed to be funded using a combination of special assessments to benefitting properties, street reconstruction bond proceeds, and Stormwater Utility Funds. Water Utility Funds are proposed to pay for public water utility improvements.
 
Nine (9) parcels have been identified as receiving special benefit from the improvements and are proposed to be assessed a total of $61,496.39.  Four of the parcels have permanent structures and the other five are undeveloped.  These parcels are identified in the preliminary Assessment Map and Roll in Appendix C of the attached Draft Feasibility Report.  As previously noted, several of these parcels are currently listed for sale.
 
Assessments were calculated using the area method, which is typically used for commercial applications. Staff recommends ordering a special benefit consultation report for this project to verify the proposed assessment amount will not exceed the benefit to properties. If the report concludes the benefit to any of the properties is less than the proposed preliminary assessment rate, Staff may then propose to lower the assessment rate accordingly for the Assessment Hearing, which is proposed for October 8, 2019.  If the report verifies the assessment rate as proposed is justified, Staff will propose to adopt the final assessment roll using the preliminarily approved rates.

Staff recommends Alternative #1.
 

The Public Works Committee reviewed the draft Feasibility Report on Tuesday, August 21st, and recommends approval of Alternative #1.

Motion to accept the Draft Feasibility Report and order a Public Input Meeting at 9 AM on September 13, 2018, for Improvement Project #18-02, HY-10 Ramsey Street Reconstructions.