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ITEM 5.1 Street Renewal Project Quam/62nd Streetly OtsezoF MINNESOTA V DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Public Works Ron Wagner, City Engineer April 10, 2017 PRESENTER(s): REVIEWED BY: ITEM #: City Engineer Wagner Interim City Administrator 5.1 Flaherty AGENDA ITEM DETAILS RECOMMENDATION: Hold public improvement hearing regarding improvement of Quam Avenue (border with St. Michael north to 62nd St) and 62nd St (Quam Avenue east to cul-de-sac). ARE YOU SEEKING APPROVAL OFA CONTRACT? IS A PUBLIC HEARING REQUIRED? No Yes —At this meeting BACKGROUND/JUSTIFICATION: Consistent with the Capital Improvement Plan (CIP) and the Annual Street Renewal Plan, streets are rated and placed in order of City Councils and staff's recommendation to complete an improvement project. Thus the 2017 Street Renewal Project for Quam Avenue and 62nd Street overlay. Quam Avenue (border with Otsego north to 62nd St) and 62nd St (Quam Avenue east to cul-de-sac) are paved. The existing roadway consists of a 2 Yz' of bituminous surface approximately 36 feet wide for Quam Avenue and 24 feet wide for 62nd Street. The pavement is 21 years old and is experiencing extensive block and thermal cracking as well as some surface raveling due to its age. The value of existing housing is positively benefited by accessing a bituminous paved street in good condition. The existing street surfaces of Quam Avenue and 62nd Street have PCI (Pavement Condition Index) Ratings of 48, 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 overlaid in the very near future. If the project is not completed in a timely fashion, the street will quickly deteriorate to a point where an overlay would not be the prudent construction practice and a much more expensive reclaim and repave would need to occur. Our estimates show this would cost two to three times as much. St. Michael is improving Quam Avenue south of the two cities boundary and connecting this potential project to that much larger project will lower the overall cost to complete the project. 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 is being held tonight to present the study to the residents and to determine if the City will continue forward with the 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 authorize advertisement for bids. The total estimated project cost is $46,193 and is proposed to be funded using approximately 16% assessments and 84% City funds. The CIP estimate for this project was $57,057. Cost included in the CIP but not needed in the actual project are patching (to be completed by Otsego Public Works) and storm sewer (deemed in good shape). Estimated assessments are based average of previous overlay projects and appraisals estimated value of benefit for properties in the area. SUPPORTING DOCUMENTS: X ATTACHED ❑ NONE List: Feasibility Report Current Project Cost Estimate Proposed Construction Plans Resolution Authorizing Advertisement for Bids POSSIBLE MOTION Please word motion as you would like it to appear in the minutes. Motion to adopt Resolution 2017-31 Authorizing Advertisement for Bids. BUDGET INFORMATION FUNDING: BUDGETED Pavement Management Fund - 201 Yes: CIP Budget Estimate of $57,057 Y CITY OF 0 Ot MINNESOTA FEASIBILITY REPORT FOR 2017 OTSEGO STREET RENEWAL PROJECT OF PROPOSED STREET OVERLAYS OF QUAM AVENUE AND 62ND STREET CITY OF OTSEGO, MINNESOTA March 2017 Prepared by: Hakanson Anderson 3601 Thurston Avenue Anoka, MN 55303 Telephone: 763-427-5860 I 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. Won -'•J. WOO el� 26052 Reg. No. S:\Municipal\AOTSEGO\392\2017\QUAM AVENUE\ot392-2017 Feasibility Quam-62nd.docx e !" Dat TABLE OF CONTENTS TITLE SHEET TABLE OF CONTENTS I. INTRODUCTION.. ............................ ................................................. 1 II. PROPOSED PROJECT............................................................................ 1 III. INITIATION............................................................................................... 2 IV. FEASIBILITY.............................................................................................2 V. RIGHT-OF-WAY / EASEMENTS.............................................................. 2 VI. PERMITS.................................................................................................. 2 VII. COMPLETION VIII. PRELIMINARY PROJECT SCHEDULE .................................................... 3 IX. ESTIMATED PROJECT•COST..:............................................................... 4 X. PROPOSED FUNDING............................................................................ 4 XI. ESTIMATED ASSESSMENT.................................................................... 5 XII. CONCLUSION AND RECOMMENDATION .............................................. 5 EXHIBITS LOCATIONMAP.................................................................................................. A PROPOSEDSTREET SECTIONS...................................................................... B BENEFITING PROPERTIES MAPS.................................................................... C PROPOSED STREET OVERLAY OF QUAM AVENUE AND 62ND STREET CITY OF OTSEGO, MN INTRODUCTION The purpose of this Feasibility Report is to present the City of Otsego with a preliminary examination of municipal street improvements for streets of Quam Avenue and 62nd Street 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. Quam Avenue and 62nd Street were paved in 1996 in conjunction with the completion of TH101 to a 4 lane expressway. The streets are only accessible through St. Michael via Quam Avenue from CSAH 36. The conditions of Quam Avenue and 62nd Street have deteriorated to a point that an overlay is recommended. The amount of crack filling and patching necessary is increasing and becoming substantial. If the streets are not overlayed soon the condition of the existing pavement will be too poor to overlay and a full depth reclaim would be necessary. The existing street surfaces of Quam Avenue and 62nd Street have PCI (Pavement Condition Index) Ratings of 48, 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. Quam Avenue and 62 d Street 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. Quam Avenue consists of a 2 Y2" of bituminous surface approximately 36 feet wide. 62nd Street consists of 2 %2" of bituminous surface approximately 24 feet wide. 2 Y2" thick bituminous does not meet the current requirement for residential streets which is a minimum of 3 Y2". The pavement is 21 years old and is experiencing extensive block and thermal cracking as well as some surface raveling due to its age, all of which an overlay can be a good remedy. Cracks or areas that dip or heave and areas where the pavement is disintegrating (pothole) would need to be removed and patched prior to the overlay. This work can be completed by Otsego Public Works. II. PROPOSED PROJECT The proposed street improvement project consists of improving Quam Avenue and 62nd Street by providing a 1 %2" overlay. Other work includes skin patching areas, bituminous milling and topsoil shouldering. The proposed street typical section would be in general conformance with current City Street Standards. The project will be tied to a reconstruction project being completed by the City of St. Michael. The City of St. Michael project is much larger and abuts this project and is of the same general type of construction nature. Tying the Quam Avenue and 62nd Street project to the City of St. Michael project will reduce costs by sharing such items as advertisement, preconstruction meeting, testing, observation, mobilization, bond and overall scale of project. These cost, if the project were completed alone, would likely increase the cost by at least 10%. The street section would be a paved rural section with no curb and gutter. Existing driveways would be matched (elevation and material) with the overlay (see Exhibit B). 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. Nc ditch work or driveway culvert replacement is included as part of this project. Ill. INITIATION The feasibility report was initiated by the City Council due to issues regarding the age and pavement condition of the streets. IV. FEASIBILITY From an engineering standpoint, the project is feasible, and the value of existing housing is positively benefited by accessing a bituminous paved street in good condition. It can be accomplished as proposed and is being constructed in conjunction with another 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 2017 construction season. 2 VIII. PRELIMINARY PROJECT SCHEDULE The preliminary project schedule for the 2017 Otsego Street Renewal Project: Table I City of Otsego Quam Avenue and 62"d Street Preliminary Project Schedule 2017 1. City Council Receives Feasibility Report and Schedules Public Hearing and March 13 Orders Plans and Specs 2. City Council Holds Public Hearing for April 10 Improvement Project 3. City Council Approves Plans and Specifications and City Council Approves April 10 and Authorizes to Advertise for Bid 4' Open Bids TBD by St. Michael 5. City Council Considers Award of TBD by St. Michael Contract or Discontinues Process 7' if Awarded, Contractor Completes By August 31 Construction $' 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 Quam Avenue and 62"d Street Preliminary Cost Estimate - Rural Section 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 (see Exhibit C). Typically, street renewal projects have been assessed 50% benefitting property owners and 50% City. Due to the limited number of assessable properties and the need for the benefit to equal or exceed the assessment it was deemed appropriate to assess an average amount of previous overlay projects within 0 Estimated Quantity 1 Unit Type LS Cost per Unit $1,200.00 Extended $ Total Per 1,200.00 Item Description Remove Bituminous Pavement (Full Depth) 64 SY $10.00 $ 640.00 Sawing Bit Pavement (Full Depth) 99 LF $5.00 $ 495.00 Aggregate Base Class 5 (Road) 3 Ton $17.00 $ 51.00 Type Sp 9.5 Wearing Course Mixture (2,C) - Overlay 529 Tons $65.00 $ 34,385.00 Type Sp 9.5 Wearing Course Mixture (2,C) - Driveway 8 Tons $100.00 $ 800.00 Bituminous Material For Tack Coat 300 GAL $3.50 $ 1,050.00 Turf Establishment 1 LS $500.00 $ 500.00 Pulverized Topsoil Borrow 26 CY $25.00 $ 650.00 4" Solid White (Paint) 1984 LF $0.10 $ 198.40 4" Double Solid Yellow (Paint) 992 LF $0.20 $ 198.40 ••Total Overhead .Total46,193.00 15% $ �� :� 6,025.00 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 (see Exhibit C). Typically, street renewal projects have been assessed 50% benefitting property owners and 50% City. Due to the limited number of assessable properties and the need for the benefit to equal or exceed the assessment it was deemed appropriate to assess an average amount of previous overlay projects within 0 Otsego and an amount supported by a resent appraisal of benefit of similar construction in the immediate area. XI. ESTIMATED ASSESSMENT There are a total of 3 potential benefiting properties with this project. The per unit method of assessment was used as all the benefiting properties are single family homes and use the street in much the same manner. The estimated cost per unit was determined to be $2,500.00 (Table III Benefiting Property Assessment Summary). Table III Benefiting Property Assessment Summary for Quam Avenue and 62nd Street Ref# PID# NAME PROPERTY ADDRESS PROPOSED ASSESSEMENT 1 118-500-353206 Paul D Levenson 6140 Quam Avenue NE $2,500.00 2 118-500-353307 Jeffery M & Sunday Burg uest 16224 62nd St NE $2,500.00 3 118-500-353204 Winter Family LP 16200 62nd St NE $2,500.00 $7,500.00 The assessment portion of the project would be approximately 16% of the total project. XII. CONCLUSION AND RECOMMENDATION This report analyzed the feasibility of improving the Quam Avenue (St. Michael border to 62nd Street) and 62nd Street (Quam Avenue to cul-de-sac). The proposed improvements are necessary, cost effective and feasible from a technical and engineering stand -point, and benefit the properties proposed as shown on Exhibit C. The project is proposed to be funded by assessing the benefiting properties as well as receiving funds from the City of Otsego. 5 EXHIBIT A LOCATION MAP FOR QUAM AVENUE & 62ND STREET BITUMINOUS OVERLAY CITY OF se oto JINNE$OTA LEGEND D STREETS TO BE OVERLAID UIIH M., 09, 2017 — 10c22— K\cad_eng\PR0.EM k(UM4PAL\07901-2017\W— k Md\OT901-2017 FFA9EiUTY.d.g 150 0 150 300 SCALE IN FEET EXHIBIT A EXHIBIT B 2' TAPER TOPSOIL SHOULDER AS NEEDED 1 TYPICAL SECTIONS 18' 12' DRIVE LANE 18' 12' DRIVE LANE 6' SHOU CITY OF o se MINNESOTA 2- TAPER TOPSOIL SHOULDER AS NEEDED TAPER TOPSOIL SHOULDER AS NEEDED 2' 12' )US ROADWAY SECTION A AS SHOWN BELOW TACK 11" WEAR COURSE OVERLAY (SPWEA240C) OR EQUIVALENT 24" EXISTING BITUMINOUS 4"-6" EXISTING CLASS 5 AGGREGATE BASE SUSGRADE TYPICA.L OYERLAY 1 QUAM AVENUE TYPICAL SECTION 2 NO SCALE 12' 2' TAPER TOPSOIL SHOULDER AS NEEDED SECTION A AS SHOWN BELOW TACK 1j" WEAR COURSE OVERLAY (SPWEA240C) OR EQUIVALENT 23" EXISTING BITUMINOUS 4"-6" EXISTING CLASS 5 AGGREGATE BASE SUBGRADE A TYPICAL OVERLAY 2 62ND STREET TYPICAL SECTION 2 NO SCALE EXHIBIT B Yw 09, 2017 — 1P.2Iom K \ood— q\PROF_CTS\YUMQPAL\0TSD1-201]\Guvm h 62ntl\OT901-201] FEAR&YTYArg OT392-2017 EXHIBIT C BENEFITING PROPERTIES (3) otCITY OF o se ?41NNESOTA LEGEND ® PROPOSED ASSESSED PROPERTY M. 09, 2017 — 10.21— \cod_mg\PR"Ci \UMIOPAL\07901-2017\Wom k 62nd\OT901-2017 P 9911TYAd q 150 0 150 300 SCALE IN FEET EXHIBIT C 2017 Quam Avenue and 62nd Street Overlay Project (to by included with St. Michael's 2017 construction project) ENGINEER'S COST ESTIMATE Rid Arharlifla "A" - 1-119" nvPrlav Item No. Spec. Ref Description Estimated Quantity Unit Unit Price Total Estimated Extension 1 2021.501 MOBILIZATION 1 LS $1,200.00 $ 1,200.00 2 2104.505 REMOVE BITUMINOUS PAVEMENT FULL DEPTH 64 SY $10.00 $ 640.00 3 2104.513 SAWING BIT PAVEMENT FULL DEPTH 99 LF $5.00 $ 495.00 4 2211.501 AGGREGATE BASE CLASS 5 ROAD 3 Ton $17.00 $ 51.00 5 2360.501 TYPE SP 9.5 WEARING COURSE MIXTURE 2,C - OVERLAY 529 Tons $65.00 $ 34,385.00 6 2360.501 TYPE SP 9.5 WEARING COURSE MIXTURE 2,C - DRIVEWAY 8 Tons $100.00 $ 800.00 7 2357.502 BITUMINOUS MATERIAL FOR TACK COAT 300 GAL $3.50 $ 1,050.00 8 2575.555 TURF ESTABLISHMENT 1 LS $500.00 $ 500.00 9 2574.525 IPULVERIZED TOPSOIL BORROW 26 CY $25.00 $ 650.00 10 2582.502 4" SOLID WHITE PAINT 1984 LF $0.10 $ 198.40 11 2582.502 4" DOUBLE SOLID YELLOW PAINT 992 LF 1 $0.20 $ 198.40 total - Bid Schedule "A" �V+v,!vr.Ov Bid Schedule "A" - 1-1/2" Overlay $40,168 15% Administration, Legal, & Engineering $6,025 TOTAL ESTIMATED PROJECT COST $46,193 S:\MunicipalVAOTSEGO\901\2017\QUAM AVENUE\OT901-2017 EngEst.xlsx Page 1 of 1 U ,§ � I , B/ § _« )\` 2vHO w »S JO *lo cj : §3 ,§ - ` 0935 O JO x i1 0 / j } } � [ § � [ } } z 2 : = z \ ( \ ) § \ # r 3 ! uj) _ / ( / ® ( ) : 2 ( \ \ * § $ Ln z § ( ( \ 0 \ \ } j \ Bk§ : E ; { � § ~ / C, 2 / y E»§ \ \ _ LlG3 77r o )|\ » � - ƒ / 6 ) ® ( \ z� � i ! n } � & j IT /� \ \� A\ OZ ` aN Gga1 : ONZ9 °�-------- \- � ® ,- "( �\ §� \3 § B/ )\` : §3 } � [ § � [ } } z 2 : = z \ ( \ ) § \ # r 3 ! _ / ( / ® ( ) : 2 ( \ \ * § $ § ( ( _ \ \ } j \ Bk§ : � E7 � § §k § w K) gi dy - LD \ \ \ Oiw / §] 10 k C4 /\\ � �.\ § K | §; {2 - §§ § < _ ` , \/§ 77rm § 4§ � � � \ §) § k� } i RESOLUTION NO. 2017-31 RESOLUTION ORDERING ADVERTISEMENT FOR BIDS FOR THE 2017 STREET RENEWAL PROJECT WHEREAS, a resolution of the City Council adopted the 13th day of March 2017, fixed a date for a public hearing for the 2017 Street Renewal Project, City Improvement Project No. 17-10 for the improvements Quam Avenue NE(boundary with St. Michael north to 62nd Street NE) and 62nd Street NE (Quam Avenue NE east to cul-de-sac), by patching and overlaying the existing street surface in accordance with the feasibility report and the assessment of benefiting property for all or a portion of the cost of the improvements pursuant to Minnesota Statutes Chapter 429, and WHEREAS, ten days' mailed notice and two weeks' published notice of the hearing was given, and the hearing was held thereon on the 10th of April, 2017, at which all persons desiring to be heard were given an opportunity to be heard thereon, WHEREAS, a resolution of the City Council adopted the 6th day of March, 2017 designated Hakanson Anderson as the engineer and authorized the preparation of plans and specifications for the improvements and has presented such plans and specifications to the council for approval; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA: 1. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report. 2. Such improvement has no relationship to the comprehensive municipal plan. 3. Such plans and specifications, dated March 2nd, 2017, a copy of which is attached hereto and made a part hereof, are hereby approved 4. The project is a portion of a larger City of St. Michael project. The City of St. Michael will follow all legally required steps to advertise, receive, and award the bid. Once the final bid amount has been established, St. Michael shall provide to Otsego all necessary information for the Otsego City Council to determine whether or not to proceed with its portion of the Project. Adopted by the council this 10th day of April, 2017. Motioned By: Seconded By: All in Favor: Those Opposed: Jessica Stockamp, Mayor Tami Loff, Clerk