Adopt Resolution #19-080 Approving Plans and Specifications and Authorizing Advertisements for Bids for Improvement Project #19-03, Wood Pond Hills and Chestnut Ridge Street Reconstructions

Purpose:
The purpose of this case is to adopt Resolution #19-080 approving plans and specifications and authorizing advertisements for bids for Improvement Project #19-03, Wood Pond Hills and Chestnut Ridge Street Reconstructions.
 
Background:
City Improvement Project No. 19-03 proposes to reconstruct streets within the Wood Pond Hills and Chestnut Ridge neighborhoods including 146th Avenue, Helium Street, and Krypton Street. The streets total approximately 3,310 linear feet (0.63 miles) in length. Maps are attached to this case showing the general location and overall scope of the proposed improvements.
 
Existing Conditions
These streets were constructed between 1992 and 1994 as urban sections using bituminous pavement, surmountable concrete curb and gutter, and concrete storm sewer. The streets were constructed to a width of 30-feet from face-of-curb to face-of-curb, and are generally centered within 60-foot wide right-of-ways.
 
Attached is a street segments summary sheet detailing segment lengths, widths, curb type, 2017 PASER ratings, construction year, maintenance history, and pavement section information obtained from ground penetrating radar readings.
 
The existing bituminous pavement section ranges from 1.6 to 5.0 inches thick, with a median thickness of 2.5-inches, as determined from Ground Penetrating Radar (GPR) analysis performed by Braun Intertec in 2017, as well as from field observations and record plan documents. The existing aggregate base section ranges from 1.3 to 8.4 inches thick, with a median thickness of 4.1-inches.  The pavement section was built on generally poorly graded sand with silt subgrade material generally considered suitable for pavement support with proper conditioning.
 
The City 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 2018, the pavement sections of the above referenced street segments were rated with a PASER rating of 2, with the exception of the south half of Krypton Street receiving a rating of 4.  PASER ratings of 3 or less indicate the street requires reconstruction.
 
Sanitary sewer and watermain infrastructure exist under each of the streets.  These utilities were inspected and were found to be in good operating condition so no improvements are proposed at this time.
 
The existing storm sewer system consists of concrete catch basins that collect stormwater runoff from the curb and gutter, and concrete storm sewer pipes that route the runoff to stormwater ponding areas where the runoff is stored and treated.  The storm sewer system was also inspected was generally found to be in good operating condition so only minor maintenance work is proposed including re-grouting some structures and resetting castings.  One sewer pipe has a small hole near the top of the pipe, potentially caused by a boring machine while installing a private utility.  This hole will be inspected during construction to see if the hole requires a patch.
 
Proposed Improvements
All damaged concrete curb and gutter sections are proposed to be removed and replaced.
 
The existing bituminous pavement section will be reconstructed using the Full Depth Reclamation (FDR) process, which involves reclaiming the existing bituminous pavement section, along with a portion of the underlying aggregate base. The reclaim material generated by this process is then spread over the reshaped and compacted existing aggregate base between the curb and gutter.  Excess reclaim material is then removed and hauled off site to allow 3½-inches of new bituminous pavement to be placed over the remaining compacted reclaim material.  This results in a 7-ton pavement design, which is the City standard for residential streets.
 
Proposed project schedule:
March 26 – Approve Plans and Specifications / Authorize Ads for Bids
March 29 & April 5 – Publish Ads for Bids (Anoka Union Herald, Finance & Commerce)
May 1 – Public bid opening
May 14 – Accept Bids / Award Contract
Late May / early June – Begin construction
August 16 – Substantial completion (open to traffic)
September 10 – Order Assessment Hearing
October 8 – Conduct Assessment Hearing
 
Public Comment
Staff conducted a public information meeting on Wednesday, November 7, 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 3 of the 59 identified benefiting properties attended and none of the property owners generally objected to the project, and most of the questions pertained to special assessments, particularly payment options.  Since then, no additional public comment has been received.

Public notifications were not required in advance of this case.

Upon Council authorization, advertisements will be published in the Anoka Union Herald and in Finance & Commerce on March 29 and April 5, 2019, as required per State Statute.

Observations:
The proposed improvements should have a serviceable life of 60 years, assuming that proactive maintenance operations are performed on a regular basis during the life of the improvements.
 
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.
 
This is the final year of the 2015 - 2019 Street Reconstruction and Overlay Program (SROP).  If this project is not completed in 2019, it should be added to the next 5-year SROP to allow reconstruction between 2020 and 2024 instead.  This would reduce the overall scope of pavement maintenance work to be completed in 2019 since no new streets can be added to the current 5-year SROP.
 
This project, along with Improvement Project #19-01, will be the first projects to be bid electronically through QuestCDN.  Moving to full electronic bids will help streamline the bidding process for both the City and the bidders.  Attached is a new specification for electronic bid requirements that was incorporated into the project specifications.  Staff will elaborate on this during our presentation to Council.

Alternatives:
Alternative #1 – Motion to adopt Resolution #19-080 approving plans and specifications and authorizing advertisements for bids for Improvement Project #19-03, Wood Pond Hills and Chestnut Ridge Street Reconstructions.

Alternative #2 – Motion denying adoption of Resolution #19-080 at this time.

Plans and specifications were prepared in-house as part of Staff's normal duties.
 
Estimated Costs
The engineer’s opinion of probable costs as prepared with the Feasibility Report was $372,236.52.  Those costs included 5-percent contingency costs plus 23-percent indirect costs for administrative, engineering, finance and legal costs.
 
Based on final plans and specifications, estimated construction costs are $267,156.35.
Adding 23-percent for indirect costs results in estimated project costs of $328,602.31.
 
Funding Program
This project is proposed to be funded using a combination of the following funds;

• Street reconstruction bonds = $248,619.51*
• Special assessments = $75,691.10
• Storm sewer funds = $4,291.70

            * After collecting assessments (bonds must initially cover assessments).
 
A total of 59 benefiting parcels have been identified as eligible for special assessments. Staff recommends applying 25-percent of all eligible project costs equally across the 59 assessable properties using the “per lot” assessment method as allowed by the City’s adopted Special Assessments Policy.  Eligible project costs include all costs except those related to subgrade corrections and any public utility improvements.  A preliminary per parcel assessment rate of $1,303.70 was adopted by Council in November 2018.  Based on estimated project costs, the assessment rate per benefiting parcel would be $1,282.90.
 
Final assessment amounts will be calculated after construction is complete and actual construction costs are known.  The findings of the special benefit consultation report will also be known at that time.
 
Staff proposes to let this project for bids at the same time as Improvement Project #19-01 with the intent of realizing cost savings due to economies of scale.  Most 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 2019 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 #19-080 approving plans and specifications and authorizing advertisements for bids for Improvement Project #19-03, Wood Pond Hills and Chestnut Ridge Street Reconstructions.