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HomeMy WebLinkAbout7A 2019 Mill and Overlay Public Hearing Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JANUARY 22, 2019 AGENDA #: 7A PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: JASON WEDEL AGENDA ITEM: PUBLIC HEARING TO CONSIDER APPROVAL OF A RESOLUTION ORDERING THE IMPPROVEMENTS FOR THE 2019 MILL AND OVERLAY IMPROVEMENT PROJECT, CITY PROJECT #PIR19-000001 GOAL AREA AND OBJECTIVE: Transportation & Mobility 1. Maintain quality local street system based on a financially stable plan that meets Overall Condition targets. DISCUSSION: Introduction The purpose of this agenda item is to receive comments on the 2019 Mill and Overlay Project and if appropriate order the improvements. Approval of the resolution ordering the improvements requires a 4/5th vote. History On November 5, 2018, the City Council ordered the preparation of a feasibility study for the 2019 Mill and Overlay Project (Street Project #PIR19-000001). The feasibility study was necessary because a portion of the funding for this project is proposed to come from special assessments. State Statutes dictate that a feasibility study can either be initiated by a petition of the affected property owners, or at the direction of City Council. This project was initiated at the direction of the City Council. Identification of the areas proposed for mill and overlay in 2019 are a result of the City’s ongoing Pavement Management Program. The program was implemented to maximize the useful life of the City’s streets in a cost effective manner. Based on the Pavement Management Program data and field reviews by City staff, the following streets were identified to be included in the 2019 Mill and Overlay Project. Street From To Pike Lake Trail CSAH 42 Carriage Hills Parkway Fountain Hill Drive Pike Lake Trail End Fountain Hills Court Fountain Hills Drive End Robin Road Pike Lake Trail Hummingbird Trail Hummingbird Trail Pike Lake Trail Bluebird Trail Bluebird Trail Carriage Hills Parkway End Partridge Court Bluebird Trail End Seagull Circle Robin Road End Hummingbird Court Hummingbird Trail End Regal Pass NW Jeffer’s Pass End Jeffer’s Pass CSAH 21 Fairway Height Road Majestic Lane Jeffers Pass End Maps of the proposed project area are included in the Feasibility Report. At the December 17, 2018 City Council meeting, the Council accepted the feasibility report and scheduled the Public Hearing for January 22, 2019. Current Circumstances The 2019 Mill and Overlay Project affects approximately 2.84 miles of roadway throughout the City. The proposed work type for 2019 is slightly different that was has been done historically. In the past, the City has performed a mill and overlay where the bituminous pavement is edge milled and a layer of pavement, typically 1.5” thick, is placed. Unfortunately, the streets that are of age and needing an overlay are streets that were constructed in the 1990’s, prior to the City’s design requirements of including a two foot sand subgrade beneath the streets. Since these streets do not have the sand subgrade they are more susceptible to movement due to the ground beneath them freezing and thawing which makes them crack. Therefore when the City completes a mill and overlay of the street the cracks reflect from beneath the street up through the new pavement. This has raised concerns from residents who are being assessed for a new street surface and they see cracks appear within a year of the mill and overlay being completed. To address this concern, staff is recommending modifying the construction methods for 2019. Rather than doing an edge mill, a full width mill of the entire street from curb to curb will be completed. Then prior to paving the new bituminous surface a chip seal will be performed on the underlying pavement. The chip seal acts as an elastic buffer between the older pavement beneath and the new pavement above. This is called an underseal and has been used by a number of surrounding communities as well as Scott County. The City of Eden Prairie uses this method and they have seen great success in minimizing the amount of reflective cracking coming up through their mill and overlay projects. Replacement of the curb and gutter will still occur where there is cracked or damaged curb and in locations to improve drainage. The feasibility report provides additional detail on the project and explores the necessity of rehabilitating the roadways as part of the City’s ongoing Street Improvement program. Conclusion City Staff is prepared to discuss each of the concerns presented at the Public Hearing. If the Council deems the issues that have been brought up need to be addressed in the project plans and specifications, direction could be given to staff. The purpose of this Public Hearing is to determine if the project should move forward . Completion of plans and specifications would be the next step. Once they have been completed, they will be submitted to City Council for approval and authorization to advertise for bids. The Council could decide not to continue with the project upon receipt of the bids. It is recommended to hold the Assessment Hearing in the fall so that property owners can see the results of the project prior to the assessment hearing. However, the proposed assessments have been established according to the City’s 2019 Fee Schedule and are not dependent upon the actual construction costs nor will they cover the entire project cost. Therefore the assessment hearing could be held any time. ISSUES: This will be the third pavement mill and overlay project that will be completed under the revised City Assessment Policy. The City Council approved amendments to the Assessment Policy so that street reclamation and street overlay projects would be assessed at their regular meeting on May 23, 2016. It was concluded by the City Council that the use of assessments for reclamation and mill and overlay projects was appropriate and provides a funding source that reduces the overall tax levy by distributing a portion of the costs to the benefitting property owners. Per the Assessment Policy, the assessment rate in 2019 for street overlay projects is $1,266 for single family and $1,013 for multifamily (0.8 x $1,266). Commercial and industrial parcels are assessed based on their Residential Equivalent Density (RED). The assessment period is 5-years. Based on the age of the City’s existing streets, the City is entering a time period where more streets are in need of timely mill and overlay projects to extend their useful lives. The previous method of funding these projects put pressure on the tax levy. Utilizing special assessments brings greater equity to the City’s funding of transportation improvements. FINANCIAL IMPACT: The 2019 Mill and Overlay Project is proposed to be financed by Special Assessments, tax levy and reserves of the Permanent Improvement Revolving (PIR) Fund The 2019 adopted budget includes the issuance of $490,000 in general obligation bonds to partially finance the 2019 overlay project. The bond repayment source is special assessments collected on the project and revenues of the PIR Fund. Minnesota Statutes, Section 429.091, Subd. 7a, authorizes the issuance of general obligation bonds secured by the revenues of a permanent improvement revolving fund (PIR Fund). This fund will allow the City more flexible use of revenues from special assessments. For the City’s annual street mill and overlay projects, financed with PIR Bonds, the revenues can be used for any authorized purpose of the PIR Fund. For example, special assessments collected from a previous improvement could be used to provide upfront funding for the future improvement. PIR Fund Bonds are secured by revenues of the Fund and not solely by the special assessments of the financed improvements. The 2019 budget anticipated a total cost of $700,000. The project as shown in the feasibility study is estimated at $800,000. The addition of the underseal added $54,700 to the total cost. Staff recommends moving forward with the project as presented. Once bids are received and the actual costs are known, street segments can be eliminated from the project to stay within the $700,000 budget. The City Council can reduce the scope of the project at the time of award, but it is not possible to add street segments due to the notification requirements outlined in state statute 429. ALTERNATIVES: 1. Conduct the public hearing and unless new substantive information is offered approve a Resolution Ordering the Improvements for the 2019 Mill and Overlay Improvement Project, City Project #PIR19-000001. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item until some date in the future. RECOMMENDED MOTION: A motion and a second for approval of Alternative #1. Approval of this agenda item requires a 4/5th vote. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19-___ ORDERING IMPROVEMENTS AND PREPARATION OF PLANS AND SPECIFICATIONS FOR THE 2019 MILL AND OVERLAY PROJECT # PIR19-000001. Motion By: Second By: WHEREAS, The Prior Lake City Council on its own initiative has determined that it desires to complete the Public Improvements for the 2019 Mill & Overlay Project; and WHEREAS, On December 17, 2018; the City Council accepted the Feasibility Report and called for a Public Hearing to be held for the 2019 Mill & Overlay Project which includes bituminous surfacing and appurtenant work; and WHEREAS, Ten days mailed notice and two weeks published notice of the hearing was given, and the hearing was held on the 22nd day of January 2019, at which time all persons desiring to be heard were given an opportunity to be heard thereon; and WHEREAS, Since the project was initiated by the City Council it must be approved by 4/5ths vote in accordance with Minnesota Statutes 429.031 Subdivision 1(f). NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report. 3. The City Council by the required statutory 4/5ths vote does hereby order the project as outlined in the feasibility report. 4. The Public Works Director is hereby designated as the Engineer for these improvements and is authorized to record engineering expenses in the Construction Fund (#501-43500.00- 55020-PIR19-000001). 5. The Engineer shall prepare plans and specifications for the making of such improvements for the 2019 Mill & Overlay Project. 6. The City Council authorizes the following preliminary funding sources and corresponding transfers to the Construction Fund for the project: Ad Valorem $ 95,000.00 PIR Fund reserves 165,100.00 Assessments $439,900.00 Total $700,000.00 7. The City Council authorizes the intent to issue General Obligation Bonds for this project. 8. Proceeds from the bond sale will be deposited in the Permanent Improvement Revolving Fund. 9. The City has determined to make a declaration of official intent (“Declaration”) to reimburse certain estimated costs for this project from proceeds of bonds expected to be in an amount not to exceed $500,000 in accordance with the Internal Revenue Service Reimbursement Regulations (Treasury Reg. 1.150-2). 10. The City may declare other separate statements of reimbursement intent in connection with specific public improvements projects as they are initiated under Minnesota Statutes, Chapters 429 and 475, or for other capital projects, with the understanding that such additional declarations of reimbursement intent will supplement this resolution. All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. Passed and adopted by the Prior Lake City Council this 22nd day of January 2019. VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager