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ITEM 6.1A James Addition0tCITeF MINNESOTA C. DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Public Works Ron Wagner, City Engineer February 8,2016 PRESENTER(s): REVIEWED BY: ITEM #: Ron Wagner, City Engineer Lori Johnson, City Administrator 6.1 A AGENDA ITEM DETAILS RECOMMENDATION: Approve Resolution receiving feasibility report regarding improvement of streets within James Addition — 88th Street NE (Page Ave. NE to West Plat Line), 87th Street NE (Page Ave. NE to Packard Ave. NE) & Packard Ave. NE (871h Street NE north including cul-de-sac) and set a date for a Public Hearing for residents to be presented project scope and possible assessment costs. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Yes BAC KG RO U N D/J U STI F I CATION: The streets within James Addition are paved. The existing roadway consists of a 2 %" of bituminous surface approximately 24' feet wide. The pavement is 26 years old and is experiencing block, alligator, and thermal cracking due to its age. The value of existing housing is positively benefited by accessing a bituminous paved street in good condition. The existing street surface has a PCI (Pavement Condition Index) Rating of 42, well below the average in the City of Otsego. Typically, pavements within PCI Ratings of 50 or less are in their final stages of useful life and will need to be reconstructed or overlayed in the very near future. City Council authorized the preparation of a Feasibility Study to determine what needs to be completed to remedy the issues, determine a cost estimate and allocate costs. A public hearing to present the study to the residents will need to be held at a council meeting with council possibly continuing toward a project with the potential for assessments in accordance with MN State Statue 429. A resolution will be presented later during this meeting, to determine if the council wishes to prepare plans and specifications for the purpose of obtaining bids for the project. Estimated assessments could vary some, dependent on a City Council decision on four secondary accesses. The feasibility report includes the four properties in question and sets the proposed assessments at $2,483.87 per unit. If the four properties are removed the feasibility report would be amended and the proposed assessment would rise to $2,851.85 per unit. SUPPORTING DOCUMENTS: X ATTACHED ❑ NONE Feasibility Report • Resolution 2016-14 • Nagel Associates Engagement Letter Motion: Approve Resolution 2016-14 Receiving Feasibility Report regarding streets within James Addition — 88th Street NE (Page Ave. NE to West Plat Line), 87th Street NE (Page Ave. NE to Packard Ave. NE) & Packard Ave. NE (87th Street NE north including cul-de-sac) and calling a Public Hearing for residents to be presented project scope and possible assessment costs and approve Nagel Associates Engagement Letter BUDGET INFORMATION FUNDING: BUDGETED: X YES Assessments ❑ NO Pavement Management Fund - 201 ACTION TAKEN ❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes) COMMENTS: FEASIBILITY REPORT FOR PROPOSED STREET OVERLAY STREET WITHIN JAMES ADDITION CITY OF OTSEGO, MINNESOTA February 2016 Prepared by: 1111Hakanson Anderson 3601 Thurston Avenue Anoka, MN 55303 Telephone: 763-427-5860 hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under State of Minnesota Statutes Sections 326.02 to 326.16. Ronald J. W er 26052 Reg. No. D e S;\Municipal\AOTSEGO\392\2016\ot392-2016 Feasibility.doc TABLE OF CONTENTS TITLE SHEET TABLE OF CONTENTS I. INTRODUCTION .................... ..... 1 .............................................................. ll. PROPOSED PROJECT............................................................................ 1 III. INITIATION............................................................................................... 2 IV. FEASIBILITY.............................................................................................2 V. RIGHT-OF-WAY / EASEMENTS.............................................................. 2 VI. PERMITS.................................................................................................. 2 VII. COMPLETION.......................................................................................... 2 VIII. PRELIMINARY PROJECT SCHEDULE .................................................... 3 IX. ESTIMATED PROJECT COST................................................................. 4 X. PROPOSED FUNDING............................................................................ 4 XI. ESTIMATED ASSESSMENT.................................................................... 5 XII. CONCLUSION AND RECOMMENDATION .............................................. 6 *.1;ill`31 LOCATIONMAP.............................................................................................I.... A PHOTOS.............................................................................................................. B PROPOSED STREET SECTIONS...................................................................... C BENEFITING PROPERTIES MAPS.................................................................... D PROPOSED STREET OVERLAY STREETS WITHIN JAMES ADDITION CITY OF OTSEGO, MN I. INTRODUCTION The purpose of this Feasibility Report is to present the City of Otsego with a preliminary examination of municipal street improvements for Streets within James Addition in Otsego, Minnesota (see Exhibit A — Project Location Map). The report discusses the proposed scope of improvements, preliminary cost estimates and a project schedule. The report has been prepared in compliance with Minnesota State Statutes 429 for projects resulting in special assessments. Some of the residents of James Addition have contacted the City regarding street issues over the past several years. Last year a major patch was required to keep the street drivable. The patch was full width and over 100' long. The existing street surface has a PCI (Pavement Condition Index) Rating of 42, well below the average in the City of Otsego. Typically, pavements with PCI Ratings of 50 or less are in their final stages of useful life and will need to be reconstructed or overlayed in the very near future. James Addition streets have been included on the Street Renewal list and included in the Capital Improvement Plans (CIP) for several years. Due to this, the City Council authorized a Feasibility Report be completed to determine costs and potential sources of funding. The existing roadway consists of a 2'/2" of bituminous surface approximately 24' feet wide. 2 '/z" thick bituminous does not meet the current requirement for residential streets which is a minimum of 3 '/2". The pavement is 26 years old and is experiencing extensive block and thermal cracking due to its age. The value of existing housing is positively benefited by accessing a bituminous paved street in good condition. (see Exhibit B — existing photos) II. PROPOSED PROJECT The proposed street improvement project consists of improving streets within James Addition, specifically 88t Street NE (from West plat line to Page Ave. NE), 87th Street NE (from Packard Ave. NE to Page Ave. NE) and Packard Ave. NE (87t" Street NE north including the cul-de-sac). Improvement work includes full depth patching in required areas and placement of a 1 V2" overlay and shouldering. The proposed street typical section would be in general conformance with City Street Standards. The street section would be a paved rural section with no curb and gutter (see Exhibit C). Surface water within the project area will be conveyed the via the existing storm sewer system through a combination of driveway culverts, ditches and cross culverts. Center line culverts will be reviewed for structural integrity and replaced if needed. No ditch work or driveway culvert replacement is included as part of this project. III. INITIATION The feasibility report was initiated by the City Council due to issues regarding the age, pavement condition, and residents' concerns regarding the street. IV. FEASIBILITY From an engineering standpoint, the project is feasible, and will benefit the properties being served. It can be accomplished as proposed, and need not be constructed in conjunction with any other project. The City and the persons assessed should review the project for benefit to determine the economic feasibility of the proposed improvements. V. RIGHT-OF-WAY / EASEMENTS The existing streets and proposed street improvements are located within the existing 66 foot wide right-of-way. VI. PERMITS No permits would be required to accomplish the work. VII. COMPLETION This project is proposed to be completed during the 2016 construction season. 2 VIII. PRELIMINARY PROJECT SCHEDULE The preliminary project schedule for the street improvements for Streets within James Addition: Table I City of Otsego Streets within James Addition Preliminary Project Schedule 2016 1. City Council Receives Feasibility Report and Schedules Public Hearing and Feb 8 Orders Plans and Specs 2. City Council Holds Public Hearing for March 14 Improvement Project 3. City Council Approves Plans and Specifications and City Council Approves March 28 and Authorizes to Advertise for Bid 4' Open Bids April 19 5. City Council Considers Award of April 25 Contract or Discontinues Process 7. If Awarded, Contractor Completes By August 31 Construction 8. City Council Holds Assessment Hearing September or October and Adopts Assessment Roll 3 IX. ESTIMATED PROJECT COST Included in this report is a detailed estimate of construction costs for the street improvements. The costs quoted herein are estimates only and are not guaranteed prices. The quantities are estimates also. The contractor will be paid only for work completed. The cost estimates are based on previous projects costs. Table II estimates the cost for the paved rural section. Table II City of Otsego Overlay of Streets within James Addition Preliminary Cost Estimate Rural Section Item Description 1/2" Overlay Estimated Quantity 1050 Unit Type Tons Cost per Unit $ 65.00 Extended Per Unit $ 68,250.00 3 1/2" Patch 350 Tons $ 100.00 $ 35,000.00 Full Depth Saw Cut 100 LF $ 5.00 $ 500.00 Mill 11/2" Deep 250 SY $ 5.00 $ 1,250.00 Remove Pavement 1675 SY $ 5.00 $ 8,375.00 Tack Oil 620 Gallons $ 3.00 $ 1,860.00 Subgrade Prep 6 RDST $ 180.00 $ 1,080.00 Class 5 500 Ton $ 15.00 $ 7,500.00 Culvert Removal 50 LF $ 5.00 $ 250.00 Culvert Replacement 50 LF $ 50.00 $ 2,500.00 Shouldering 290 Ton $ 25.00 Construction TotalM Overhead 15% Project• $ 7,250.00 $ 20,072.25 X. PROPOSED FUNDING The funding for this project is expected to be provided by two sources, the City of Otsego and the benefiting property owners. The project costs could be split between the City of Otsego and the benefiting properties (Exhibit D). The benefiting property owners is proposed to be assessed approximately $77,000 and the City would provide the remaining 50% of the cost approximately $77,000. n XI. ESTIMATED ASSESSMENT By dividing the total benefiting property assessment cost ($77,000) by 31, the number of assessable units, an assessment value is obtained. The estimated cost per unit was determined to be $2,483.87 for the rural section (Table III Benefiting Property Assessment Summary). The per unit method of assessment was used due to all the benefiting properties are single family homes and use the street in much the same manner. Table III Benefiting Property Assessment Summary Streets within James Addition Rural Section The assessment portion of the project would be approximately 50% of the total project. Ref# PID# NAME ADDRESS PROPOSED ASSESSEMENT 1 118-0480-01090 John M & Theresa A Kornberg 15159 87th St NE Otsego MN 55330 $2,483.87 2 1 118-0480-01100 William J & Joy M Dow2ak 15135 87th St NE Otsego MN 55330 $2,403.87 3 118-0480-01110 Daniel J. Fietek 15117 87th St NE Otsego MN 55330 $2,483,87 4 118-0480-01120 Darren L. & Doreen E. Jackson 15073 87th St NE Otsego MN 55330 $2,483.87 5 118-0480-01130 Brent E. & Linda J. Lien 15061 87th St NE Otsego MN 55330 $2,483.87 6 118-0480-01140 Donald & Connie Streeter 8721 Packard Avenue NE Otsego MN 55330 $2,483.87 7 118-0480-01150 Deanna L. & Travis D. Mayer 8731 Packard Avenue NE Otsego MN 55330 $2,493.87 8 118-0480-01160 Timothy A. & Jennifer A. Bray 8743 Packard Avenue NE Otsego MN 55330 $2,483.87 9 118-0480-01170 Michael Dahlheimer 8759 Packard Avenue NE Otsego MN 55330 $2,483.87 10 1 118-0480-01180 Brian J. Rahn & Cindy J. Bethany 8775 Packard Avenue NE Otsego MN 55330 $2,483.87 11 118-0480-01190 Richard W. & Pamela L. Lam son 8793 Packard Avenue NE Otsego MN 55330 $2,483.87 12 118-0480-03130 Tod K. & Ly L. Vue 8809 Packard Avenue NE Otsego MN 55330 $2,483.87 13 118-0480-03120 Tracy Lindquist 8827 Packard Avenue NE Otsego MN 55330 $2,483.87 14 11 B-0480-03110 Jason C. Will 8841 Packard Avenue NE Otsego MN 55330 $2,483.87 15 118-0480-03100 Dean H. Lowe & Debra K. Ahlberg 8957 Packard Avenue NE Otsego MN 55330 $2,483.87 16 118-0480-03090 Troy L. & Amanda G. Hanson 8971 Packard Avenue NE Otsego MN 55330 $2,483.87 17 118-2730-01010 Zeigler Custom Homes Inc. 8850 Packard Avenue NE Otsego MN 55330 $2,483.87 18 118-2730-01020 Anthony J. & Julie L. Siegler 8836 Packard Avenue NE Otsego MN 55330 $2,483.87 19 118-0670-01010 Keneth W. & Jill L. Paige 15108 88th St NE Otsego MN 55330 $2,483.87 20 118-0480-03070 Larry L. Larson 15136 88th St NE Otsego MN 55330 $2,483.87 21 118-0480-03050 Steven R. & Eileen A. Schuck 15170 88th St NE Otsego MN 55330 $2,483.87 22 118-0480-02070 Byron D. Bethke 15171 88th St NE Otsego MN 56330 $2,483.87 23 118-04BO-02120 Thomas J. Kerchner & Mary Ann Norde 15107 88th St NE Otsego MN 55330 $2,483.87 24 118-0480-02110 Stephanie J. Jesberg 8783 Packard Ave NE Otsego MN 55330 $2,483.87 25 118-0480-02100 Mike Gervais & Kayla Summerland 8719 Packard Ave NE Otsego MN 55330 $2,483.87 26 118-0480-02090 Matthew R. & Michelle R. Beck -Weidner 15140 87th St NE Otsego MN 55330 $2,483.87 27 118-0480-02080 Jacob K. & Janine M. Yioja 15170 87th St NE Otsego MN 55330 $2,483.87 28 118-0480-02010 Scott & Jennifer S. Kasper 8719 Page Ave NE Otsego MN 55330 $2,483.87 29 118-0480-01080 Earl W. & Doris Lieske 15216 85th St NE Otsego MN 55330 $2,483.87 30 118-0480-01070 Sherry Darlene Hult 15194 85th St NE Otsego MN 55330 $2,483.87 31 118-0480-01060 Kevin M. Rudek 15160 85th St NE Otsego MN 55330 $2,483.87 $76,999,97 PID, Names, Addresses checked against County Beacon Tax Records as of 02/2/2016. 5 XII. CONCLUSION AND RECOMMENDATION This report analyzed the feasibility o The proposed improvements are necessary, and engineering stand -point, and benefit the D. f improving streets within James Addition. cost effective and feasible from a technical properties proposed as shown on Exhibit The project is proposed to be funded by assessing the benefiting properties as well as receiving funds from the City of Otsego. L EXHIBIT A 92nd 51. 97s� ST 91 St CIR. ��4i CD Q n 90th ST. NE 1615 CSAH 39 — ST. NE H r �`�`�� �� I I ! 89th ST. NE z L8th ST w m �— o z � � w w NE 88th ST. z 87th z Q w Q oFt CIR. z > QT3 z w Q � w AIL CD U PEE o Q N E 87th ST. w z w pq Ckq C� —1 L14M o 83rd 85th W z Q ST. � w Q a_ w Q 0 Hakanson Anderson Assoc,, Inc. Civil Engineers and Land Surveyors 3601 Thurston Ave., Anoka, Minnesota 55303 763-427-5860 FAX 763-427-0520 www.hokcinson_anderson.com LOCATION MAP EXHIBIT A STREET IMPROVEMENT — JAMES ADDITION CITY OF OTSEGO, MINNESOTA SHEET 1 of SHEEfS am OT392-2016 K:\cad—mg\PROJECTS\AWNICfPAL\oT792\2016\Jame, Addltl--Lac U—dwg EXHIBIT B A 5 i d - a r,..kF"��n SNoF 4y ;. A -AL EXHIBIT C PROPOSED OVERLAY 2' 12' 12' 2' 1.5" BITUMINOUS WEAR COURSE (LVWE450358) TACK�PER2 FOOT WIDE — 2" CL 2 2 FOOT WIDE — 2CL 2 GRAVEL SHOULDER � ` GRAVEL SHOULDER SEED ...,.... ._ SEED EXISFING GRAVEL BASE TOPSOIL EXISTING BITUMINOUS ROADWAY — 2Ya" TOPSOIL PROPOSED PATCH/OVERLAY 2' 12' 12' 2' 1.5" BITUMINOUS WEAR COURSE (LVWE450358) TACK 2 FOOT WIDE — 2" CL 2 GRAVEL SHOULDER 1FT 2 FOOT WIDE — 2" CL 2 P—_ GRAVEL SHOULDER SEED . r _—"--y SEED EXISTING GRAVEL BASE TOPSOIL\-2" BITUMINOUS PATCH AFTER REMOVAL TOPSOIL OF FAILED ASPHALT do VERIFICATION OF SOLID BASE MATERIAL Hakanson Anderson Assoc,, Inc. TYPICAL SECTIONS SHEEP Civil Engineers and Land Surveyors EXHIBIT C 3601 Thurston Ave., Anoka, Minnesota 55303 STREET IMPROVEMENT — JADES ADDITION DF 763-427-5860 FAX 763on.com 520 I —�,] www.hokonson—anderson.com CITY OF OTSEGO, MINNESOTA sHEETs K:\cod—e g\PROJECTS\MUNICIPAL\OT392\2016\James Add[U.—L...tf...dw. 392-2D16 EXHIBIT D RESOLUTION NO. 2016-14 RESOLUTION RECEIVING REPORT AND CALLING HEARING ON IMPROVEMENT WHEREAS, pursuant to a resolution of the council adopted January 25, 2016, a report has been prepared by Hakanson Anderson Associates, Inc. with reference to the improvement of Streets within James Addition — 88th Street NE (Page Ave. NE to West Plat Line), 87th Street NE (Page Ave. NE to Packard Ave. NE) & Packard Ave. NE (87th Street NE north including cul-de-sac) and this report was received by the council on February 8, 2016; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF OTSEGO, MINNESOTA: 1. The council will consider the making of such improvement in accordance with the report and the assessment of benefiting property for all or a portion of the cost of the improvement pursuant to Minnesota Statutes Chapter 429 with the estimated total cost of the improvement being $154,000. 2. A public hearing shall be held on such proposed improvement on the 14th day of March, 2016 in the council chambers of the city hall at 7:00 p.m. and the clerk shall give mailed and published notice of such hearing and improvement as required by law. Adopted by the council this 8th day of February, 2016. Motioned By: Seconded By: All in Favor: Those Opposed: Jessica Stockamp, Mayor Tami Loff, Clerk RES 16-12 ot392 Res Receiving Report and Calling Hearing on Improvement - James Addition NAGELL APPRAISAL & CONSULTING 12805 Highway 55 Plymouth, MN 55441 Established in 1968 Minneapolis: 952-544-8966 St. Paul 651-209-6159 Central Fax 952-544-8969 Client: City of Otsego February 3, 2016 Attn: Andrew MacArthur, City Aty. 3601 Thurston Avenue North #103 Anoka, MN 55303 RE: A letter report regarding the special benefit if any for a street improvement project. James Addition Otsego, MN Dear Andrew: Thank you for your interest in obtaining services regarding the properties above. Per our conversation, you indicated a preliminary opinion of market benefit if any to the adjoining properties in the above project. Report Use: The report use is to assist the city for guidance regarding special assessment determination for street improvement project. Value Type: This report is not an appraisal, but rather provides a preliminary letter giving a general range of market benefit if any for properties like those in the project area. Property Description: About 30 residential parcels with varying site sizes. Contact for access, Not necessary. Scope of Report: (1) Drive by viewing of the subject properties and view the neighborhood. (2) Note the physical and/or economic factors that could affect the properties. (3) Comment on market benefit if any based on observations of the market. (4) Provide a general range of benefit if any for properties like those in the project area. No specific sales data will be collected for this assignment. The general market comments are based on past appraisals, experience and market information. Report Format: A Letter Report will be used. It has short statements and descriptions including appropriate photos, maps and exhibits are included. A PDF copy of the report plus two hard copies of report will be provided. Fee: The fee is $1,000. Any meetings, owner contact, appraisal reports, any discovery, preparation and testifying would be extra and billed at $150 per hour. Client named above is responsible for payment in a timely manner. Due Date: The report can be completed in 3 weeks from signed confirmation. Information needed by the appraiser: Feasibility report, maps and description of before and after conditions of the road project. Our company has 12 employees and has been in business since 1968 and has sufficient knowledge, experience, education, resources and contacts to competently complete this assignment. Neither the employment to make this report, nor the compensation for it, is contingent upon the findings. If you agree to the above terms, please sign below and return by fax or mail. If you have any additional questions, please do not hesitate to contact me. Sincerely, Signature William R. Waytas, SRA, CRP Certified General 4000813, MN Date www.nagelimn.com NX 7_� • co cN:IJ —, o co JAE 00 - 1 i' `• N ". _ tit � • x r • � L•r� sa � _ �'•RY !���• ~� •� � >1 ye MOO 4 +Z� s "1 it