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Home My WebLink About07(A) - Public Hearing to Consider Approval of a Resolution Ordering Improvements for the 2020 Mill and Overlay Project STR20-000001 Report ITEM: 7A CITY COUNCIL AGENDA REPORT MEETING DATE: February 3, 2020 PREPARED BY: Andy Brotzler, Public Works Director/City Engineer PRESENTED BY: Andy Brotzler AGENDA ITEM: Public Hearing to Consider Approval of a Resolution Ordering Improvements for the 2020 Mill and Overlay Project STR20- 000001 GOAL AREA Transportation & Mobility OBJECTIVE: 1. Maintain quality local street system based on a financially stable plan that meets Overall Condition targets. RECOMMENDED ACTION: The purpose of this agenda item is to receive comments on the 2020 Mill and Overlay Project and if appropriate, order the improvements. Approval of the resolution ordering the improvements requires a 4/5th vote. BACKGROUND: On November 4, 2019 the City Council ordered the preparation of a feasibility study. 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 be either initiated by a petition of the affected property owners, or at the direction of the City Council. This project was initiated at the direction of the City Council. Identification of the areas proposed for the mill and overlay in 2020 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 2020 Mill and Overlay Project. Street From To Windsor Lane Blind Lake Trail End Wellington Court Windsor Lane End Wyndam Court Windor Lane End Blind Lake Trail Fish Point Road 390ft past Windsor Lane Lexington Count Blind Lake Trail End Wilderness Trail Blind Lake Trail 50ft past Wilderness Trail Cul-De-Sac Crimson Court Blind Lake Trail End Cottonwood Lane Fish Point Road Adelmann Street SE Maps of the proposed project area are included in the Feasibility Report. City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 Item 7A Page | 2 The 2020 Mill and Overlay Project includes approximately 1.6 miles of roadway. The proposed work type for the project includes the full-width milling of streets and placement of a two-inch overlay. Unfortunately, the streets 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 to continue with the placement of a chip seal prior to overlay of the road. This was first completed with the 2019 Mill and Overlay project. The process includes a full width mill of the entire street from curb to curb. Then prior to paving the new bituminous surface, a chip seal will be performed on the underlying pavement. The chip seal acts like 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 explored the necessity of rehabilitating the roadways as part of the City’s on-going Street Improvement program. 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 the Public Hearing is to determine if the project should move forward. The prosed assessments have been established according to the City’s 2020 Fee Schedule and are not dependent upon the actual construction costs. Per the Assessment Policy and 2020 Fee Schedule, the assessment rate in 2020 for street overlay projects is $1,290 for single family and $1,032 for multifamily (0.8 x 1,290). 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. Item 7A Page | 3 At the January 6, 2020 City Council meeting, the Council accepted the feasibility report and scheduled the Public Hearing for February 3, 2020 FINANCIAL IMPACT: The 2020 Mill and Overlay Project is proposed to be financed by Special Assessments, tax levy and reserves of the Permanent Improvement Revolving (PIR) Fund. The 2020 budget anticipated a total cost of $700,000. The project as shown in the feasibility report is estimated at $680,000. Staff recommends moving forward with the project as presented. Once bids are received and the actual costs are known, streets segments can be eliminated from the project to stay within the $680,000 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 and hearing requirements outlined in state statute 429. ALTERNATIVES: 1. Conduct the public hearing and approve a Resolution Ordering the Improvements for the 2020 Mill and Overlay Improvement Project, City Project STR20-000001. 2. Deny this item for a specific reason and provide staff with direction. ATTACHMENTS: 1. Resolution - Public Hearing to Consider Approval of a Resolution Ordering Improvements for the 2020 Mill and Overlay Project STR20-000001 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 20-024 A RESOLUTION ORDERING THE IMPROVEMENTS FOR THE 2020 MILL AND OVERLAY PROJECT 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 2020 Mill and Overlay Project; and WHEREAS, On January 6, 2020; the City Council accepted the Feasibility Report and called for a Public Hearing to be held for the 2020 Mill and 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 3rd of February 2020, 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 a 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 an improvement is necessary, cost-effective, and feasible as detailed in the feasibility report. 3. The City Council by the required statutory 4/5th vote does hereby order the project outlined in the feasibility report. 4. The Public Works Director is hereby designated as the Engineer for these improvements and is authorized to record project expenses in the Permanent Improvement Revolving Fund (#501-43500.00-55020-PIR20-000001) 5. The City Council authorizes the following preliminary funding source for the project: 6. The City Council authorizes the intent to issue General Obligation Bonds for this project. 7. Proceeds from the bond sale will be deposited in the Permanent Improvement Revolving Fund. 8. 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 amount not to exceed $680,000 in accordance with the Internal Revenue Service Reimbursement Regulations (Treasure Req. 1.150-2). 9. The City may declare other separate statements of reimbursement intent in connection with specific public improvement projects as they are initiated under Minnesota Statutes, Chapter 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, cost 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 3rd day of February 2020. VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager C:\\Users\\aorlofsky\\AppData\\Local\\Temp\\Resolution - Public Hearing to Consider Approval of a Resolution Ordering_624567\\Resolution - Public Hearing to Consider Approval of a Resolution O.docx 2