Adopt Resolution #19-012 Accepting Petition Opposing Brookview Estates Street Reconstructions, Improvement Project #19-02

Purpose:
The purpose of this case is to consider adopting Resolution #19-012 accepting a petition opposing Brookview Estates Street Reconstructions, Improvement Project #19-02.
 
Background:
City Improvement Project No. 19-02 proposes to reconstruct streets within the Brookview Estates neighborhood including 173^rd Avenue and Germanium Street measuring approximately 2,662 feet (0.50 miles) in length.  Appendix A of the attached Feasibility Report includes a figure showing the project scope and pictures of the existing streets.  A project location map is attached to this case.
 
These streets were constructed in 1979 as rural sections with bituminous pavement at a width of 24 feet, and are generally centered within a 66-foot wide right-of-way.  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 2018, these pavement sections had a PASER rating of 3 indicating these streets require reconstruction.
 
Existing Conditions
The existing bituminous pavement section ranges from 2.0 to 6.0 inches thick, with a median thickness of 3.6-inches. The aggregate base ranges from 0.8 to 5.0 inches thick, with a median thickness of 2.7-inches. These depths were determined from Ground Penetrating Radar (GPR) analysis performed by Braun Intertec in 2017, as well as from field observations and record plan documents. Copies of Braun Intertec’s GPR results are attached in Appendix C of the attached Feasibility Report. The pavement subgrade primarily consists of poorly graded sands with silts, which is acceptable for pavement support with proper preparation.
 
The storm sewer system generally consists of ditches along both sides of the streets within right-of-way and/or drainage and utility easements. Storm runoff collects in the ditches along Germanium Street and is carried north to the Trott Brook through an outlet pipe located in the north cul-de-sac. Storm runoff collects in the ditches along 173^rd Avenue and flows across land to the Rum River to the east.
 
Proposed improvements
This project proposes to reconstruct the existing bituminous pavement sections using the Full Depth Reclamation (FDR) process that involves reclaiming the existing bituminous pavement section with a portion of the underlying aggregate base. The reclaimed (ground and mixed) material would be spread and compacted on top of reshaped and compacted aggregate base or subgrade. Three and one-half inches of new bituminous pavement would then be placed over the compacted reclaim material to meet the City’s standard pavement design for residential streets.
 
Ditch sections may require minor surface grading in a few areas to re-establish positive drainage.
 
Estimated Costs
The engineer’s opinion of probable costs for the proposed improvements is $502,555.46. Estimated costs include 5-percent contingency costs plus 23-percent indirect costs for administrative, engineering, finance and legal costs. A summary of the engineer’s opinion of probably costs is included in Appendix B in the attached Feasibility Report.
 
Funding Program
This improvement project, which is listed in the City’s current 10-year Capital Improvement Plan (CIP), is proposed to be funded using a combination of special assessments to benefiting properties, street reconstruction bond proceeds, and storm sewer funds.
 
Twenty-one benefiting parcels are identified in the Feasibility report. Benefiting properties are proposed to be equally assessed for 25-percent of eligible project costs using the “per lot” assessment method identified within the City’s adopted Special Assessments Policy.  Preliminary assessments are $4,418.30 per benefiting property.  Final assessments are based on final project costs.
 
Costs incurred to date include all Staff time required to prepare the Feasibility Report and the draft plans and specifications.  Consultant costs incurred to date include NTI’s fees for completing soil borings and a Geotechnical Report at a cost of $3,250, and Hakanson Anderson’s fees for collecting topographical survey at a cost of $4,100.
 
Public Comment
Staff conducted a public information meeting for this project at 5:00 PM on Thursday, November 8, 2018.  The purpose of the meeting was to present the proposed improvements, estimated costs, funding program, and preliminary project schedule to benefiting property owners, and to receive public input on the project.
 
Property owners from 2 of the 21 identified benefiting properties attended. The property owners generally agreed that the pavement was in poor condition and needed to be repaired but thought the estimated project cost was too high and questioned why the City could not maintain the roads in a less expensive manner.  Staff explained that the pavement is past the point of applying an overlay, as it would fail well before the end of its anticipated useful life of 20 years due to the poor condition of the underlying pavement.  It was discussed that overlay projects generally cost about one-quarter as much as a street reconstruction project, and that the most cost-effective manner to maintain streets is to crackseal and sealcoat pavement every 7-years or so, to overlay the pavement every 20-years or so, then to reconstruct the pavement after two overlays at approximately 60-years. This is a widely accepted standard pavement maintenance schedule for cities such as Ramsey that have good underlying soils.
 
One of the property owners asked if the project was already a done deal, or if they had any ability to stop it.  Staff explained that Chapter 8 of the City Charter provides a petition process for City Council initiated improvements such that if a petition is signed by 60-percent or more of the owners of real property proposed to be assessed for the improvements, the Council cannot vote on the same improvement for at least one year following the Public Hearing.
 
Petition Opposing Improvement Project #19-02
On December 10, 2018, the City Administrator received the attached petition opposing the project.  The City Engineer validated the names and addresses of the fifteen petitioners, which represents 71.4% of the twenty-one benefiting properties.
 
On December 18, 2018, the Public Works Committee unanimously passed a motion accepting the petition as valid and directing Staff to mail letters to all benefiting property owners to clearly define the project, ramifications of signing the petition, and options to withdraw their signature if desired.  This direction was based on input from Staff that several property owners had contacted Staff after signing the petition to ask questions about the project scope and the ramifications associated with signing the petition, and that after Staff provided information to the property owners they said they were led to believe something different.
 
On December 21, 2018, the attached letter was mailed to benefiting property owners per direction of the Public Works Committee.  At the time this case was published, no requests had been received to withdraw signatures from the petition. Staff will inform the City Council if any requests are received before the City Council meeting on January 8, 2019. 

Notifications are not required.

Observations:
The City is operating under the final year of its 2015 - 2019 Street Reconstruction and Overlay Program (SROP).  If Germanium Street and 173rd Avenue are not reconstructed in 2019, they could be added to the next 5-year SROP, which would be at the expense of other streets currently listed in the 10-year CIP.
 
Staff reviewed the current 10-year CIP and verified there are no other street improvement projects that can be completed in 2019 in place of this project.
 
Alternatives:
Alternative #1 – Motion to adopt Resolution #19-012 accepting the petition opposing Brookview Estates Street Reconstructions, Improvement Project #19-02, and directing Staff to terminate all work on Improvement Project #19-02 until a valid petition requesting said improvements is received from benefiting property owners, or until the City Council orders said improvements, neither of which shall occur before November 13, 2019.

Alternative #2 – Motion denying adoption of Resolution #19-012 at this time.

Per the attached Feasibility Report, the engineer’s opinion of probable project costs is $502,555.46.  Staff proposed to fund the proposed improvements using a combination of special assessments to benefiting properties, street reconstruction bond funds, and stormwater utility funds, as needed.
 
A total of 21 residential parcels would benefit from the proposed improvements and were preliminarily proposed to be assessed for 25-percent of eligible project costs, which totals $92,784.30.  Subgrade correction costs are not eligible for assessments and are paid 100% by the City.  This equates to preliminary assessments of $4,418.30 per parcel. The City will fund the remaining project costs, estimated at $409,771.16, using a combination of Street Reconstruction and Overlay Program bond funds and Stormwater Utility Funds.

Staff recommends Alternative #1.

Motion to adopt Resolution #19-012 accepting the petition opposing Brookview Estates Street Reconstructions, Improvement Project #19-02, and directing Staff to terminate all work on Improvement Project #19-02 until a valid petition requesting said improvements is received from benefiting property owners, or until the City Council orders said improvements, neither of which shall occur before November 13, 2019.