5.5. SR 06-07-2010^~/
Elk
River
REQUEST FOR ACTION
To Item Number
Ma or and Ci Council 5.5.
Agenda Section Meeting Date Prepared by
Administration une 7, 2010 ohn Anderson P.E.
Item Description Reviewed by
Main Street Pavement Rehabilitation Project Lori ohnson, Ci Administrator
Reviewed by
Action Requested
Consider adoption of the attached two resolutions ordering the assessment hearing and establishing the
amount to be assessed.
Bacl~ground/Discussion
The City Council authorized advertising for bids for this project on May 3, 2010. Bids were opened on
June 1, 2010. The low bid in the amount of $443,874.70 was submitted by Rum River Contracting. The
resolutions the council is asked to consider set the date of the Assessment Hearing to June 28, 2010 and
set the maximum amount that can be assessed to properties to be $354,212. This amount represents 70%
of the total cost being assessed to the properties. The assessment rate to an individual property would be
$4,167.20,
The City Council has discussed establishing a policy that discounts the assessment rate due to the fact
that the roadway in question handles more than local traffic. The Council may at their discretion provide
staff with direction as to what, if any, adjustment factor to apply to this assessment. The Feasibility Study
for this project included a draft policy that provides adjustments to the assessment rate to account fox
traffic volumes. This draft policy has been updated with the project costs as bid. The draft policy is
attached for the council to consider adjustments to the assessment amount. MnDOT has conducted
their regularly scheduled traffic counts on Main Street and the data shows the ADT to range from 4,950
to 6,200 along this portion of Main Street. A reduction to 40%, of the origina170% assessed, would
equal an assessment rate of $1,666.88. A reduction to 25%, of the origina170% assessed, would equal an
assessment rate of $1,041.80.
Financial Impact
The total project cost is $506,017 which includes the construction cost of $443,875, and overhead cost of
$62,142. The overhead cost includes preliminary engineering of $29,000 and construction related
engineering of $19,000. The City has budgeted $400,000 from the street improvement fund for this
project and $100,000 from special assessments.
Attachments
^ Resolution Determining the Assessment Cost
^ Resolution Establishing the Date for the Assessment Hearing
^ Bid Tabulation
^ Draft policy on High Volume Roads (revised 6-2-10)
ActlOn Motion by Second by Vote
FOllow Up
RESOLUTION 10-
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION DETERMINING ASSESSED COST OF
IMPROVEMENT AND ORDERING PREPARATION OF
PROPOSED ASSESSMENT ROLL IN THE MATTER OF
2010 MAIN STREET PAVEMENT REHABILITATION
WHEREAS, costs have been determined for the 2010 Main Street Pavement Rehabilitation improvement
consisting of a contract price of $443,874.70, and expenses incurred or to be incurred by the
City in the making of the improvement in the amount of $62,142.30, for a total of the
improvement of $506,017.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the Ciry of Elk River, Minnesota:
1. Based upon the Ciry Assessment Policies, it is determined that the portion of this improvement to be
paid by the City and not assessed to benefited properties is $151,805.
2. The portion of the cost to be assessed against benefited properties pursuant to the Elk River Ciry
Assessment Policies shall be 70% of the project which amounts to $354,212.
3. The assessments shall be payable in equal annual installments and shall extend over a period of five
years, the first of the installments to be payable on or before the first Monday in January, 2011, with
interest at the rate of 3.5% per annum from the date of the adoption of the assessment resolution.
4. The Ciry Administrator with the assistance of the Project Engineer shall forthwith calculate the
proper amount to be specially assessed for such improvement against every assessable lot, piece, or
parcel of land, without regard to cash valuation, as provided by law, and shall have available at the
City Administrator's office a copy of the proposed assessment roll for public inspection.
5. Upon completion of the proposed assessment roll, the City Administrator shall notify the Council
and schedule a public hearing upon the proposed assessment, causing notice of the hearing by
publication and mail to be made at least two weeks prior to the hearing.
Passed and adopted this 7~ day of June 2010.
Stephanie A. Klinzing, Mayor
ATTEST:
Tina Allard, City Clerk
RESOLUTION 10 -
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION ESTABLISHING THE DATE FOR THE ASSESSMENT HEARING IN THE
MATTER OF THE 2010 MAIN STREET PAVEMENT REHABILITATION PROJECT
WHEREAS, by a resolution passed by the Council on May 3, 2010, the City Clerk was directed to prepare
a proposed assessment roll of the cost of the 2010 Main Street Pavement Rehabilitation
Project; and
WHEREAS, the Clerk has notified the Council that such proposed assessment roll will be completed and
filed in the Clerk's office for public inspection by the appropriate time.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota:
1. A hearing shall be held on the 28th day of June, 2010, in the City Hall at 6:30 p.m. to pass upon such
proposed assessment and at such time and place all persons owning property affected by such
improvement will be given an opportunity to be heard with reference to such assessment.
2. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be
published once in the official newspaper at least two weeks prior to the hearing, and shall state in the
notice the total cost of the improvement. The City Clerk shall also cause mailed notice to be given to
the owner of each parcel described in the assessment roll not less than two weeks prior to the
hearings.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date
of payment, to the City of Elk River, except that no interest shall be charged in the entire assessment
is paid within 30 days from the adoption of the assessment. The owner of any property may at any
time thereafter pay to the City of Elk River the entire amount of the assessment remaining unpaid,
with interest accrued to December 31st of the year in which such payment is made. Such payment
must be made before November 15th or interest will be charged through December 31st of the
succeeding year.
Passed and adopted this 7th day of June, 2010.
Stephanie A. Klinzing, Mayor
ATTEST:
Tina Allard, City Clerk
2010 MAIN STREET PAVEMENT REHABILITATION
CITY OF ELK RIVER
BIT TABULATION
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14475 Luinm DAB.
Fny;~n. ~1ti SS]'/J
IIIr IT PRICE 7~1T,l !.PRICE
1 IZATION
2021
501 MOBB LS t.00 000.00
56 56 000.00 56 000.00 36.000.00 37 500.00 37 500.00 $4 500.00 34 500.00 55,500.00 55,500.00
2 .
.
501 REMOVE CONCRETE CDRH
2104 I.F 440 ,
53.00 31320.00 33.15 $1.38600 $4.12 31,812.80 32.50 SI 100.00 Si.IO 52,244.00
3 .
503 REMOVECONCRETE WALK
2104 SF 2
551 51.50 $3826.50 30.79 32,015.29 31.24 33,163.24 32.50 36377.50 50.89 32270.39
4 .
505 REMOVE CONCRETE DRIVEWAY PAVEMENT
2104 SY ,
7.7 51000 377.00 SI0.50 380.85 311.25 t<~"~~ 545.00 5346.50 321.10 3162.47
5 .
511 SAWING BITUMINOUS PAVEMENT LDEPTH)
2104 LF 86 53.99 - 32.10 5180.60 32.25 5193.50 31.99 3430.00 54.30 3369.80
6 .
523 SALVAGE SIGN
2104 EACH 4 SiU.W 320000 552.10 5210.00 348.00 3192.00 550.00 3200.00 548.5(1 3194.00
7 .
501 SIJBGRADE PREPARATION
2112 AD ST 64.1 32W.99 512.820.00 $125.40 $8038.14 $245.00 515704.50 5200.00 512820.00 3110.00 $7,05100
8 .
604 FALL DEPTH PAVEMENT RECLAMATION (P
2331 SY 29
572 50.95 528,09340 50.55 316 64.60 30.86 325431.92 50.76 52247472 Sl.ii 345,83660
9 .
0")
501 MBL BFFUMR10U3 SURFACE 2
2232 SY ,
470 35.50 52 585 00 33.15 S1 480.50 310.00 34 700 00 58.25 33 877.50 54.70 32 209.00
10 .
.
501 TYPE MV3 WEAR COURSE MIXTURE VWE35035H
2350 TON 3
800 344.34 $168492.00 345.39 $172,48200 34560 5173280.00 348.00 318240000 $50.00 3190,00000
11 .
502 TYPE LV3 NON-WEARINGCOURSE MIXTTBU3 VNW35030H
2350 TON ,
3
600 543.00 5163400.00 544.85 $170430.00 544.95 517081000 347.00 $178600.00 350.00 3190,000.00
12 .
502 BFFUMB40U5 MATERIAL FOR TACK COAT
2357 GAL ,
1
553 $2.50 53,682.50 52.20 53 416.60 52.20 $3 416 60 52.25 53 494.25 52.10 33261.30
13 .
602 ADJUST VALVE BOX
2504 EACH ,
21 S 185.00 33 885.00 3315.00 56 615,00 5225.00 S4 725.00 5220 00 $4 620.00 5222.00 34,662 00
14 .
522 ADNST FRAME AND RMG CASTING
2506 EACH 21 $373.00 5783300 5450.00 59450.00 5315.00 $6615.00 5350.00 37350.00 5307.00 56447.00
li .
521 B43TALL CASTNG = i01C)
2506 EACH 1 $495.00 5495.00 3550.00 5550.00 5649.00 3649.00 5650.00 365000 $634.00 3634.00
IG .
501 4" CONCRETE SIDEWALK
2521 SF 2
884 33.10 38 940.40 34.17 312 026.29 $3.30 39 517.20 33.00 38 652 00 $3.85 511,103.40
17 .
501 CONCRETE CURB AND GUTTER 8618
2531 LF ,
440 514.20 56,248.00 321.64 $9 609.60 514.45 36 358,00 SI5.00 SG 600.00 520.90 39, I9G.00
IB .
2531604 8"CONCRETE VALLEY GUTFER SY 5.0 554.00 3270.00 $87.55 3437.75 5155.00 5775.00 345.00 3225.00 348.50 3242.50
I9 2531604 8"CONCRETE VALLEY GUTTER TRIANGULAR SECTION EACH 4 5500.00 32000.00 31,31840 3527360 361800 32472.00 5550.00 32,200.00 $592.00 52,368.00
20 602 TRUNCATED DOMES PEDESTRIAN CURB RAMP)
2531 EACH 17 5256.00 34,352.00 5296.64 55 042.88 390.00 51 530.00 $100.00 51 700.00 3108.00 51,836.00
21 .
601 TRAFFIC CONTROL
2563 LS 1.00 33 000.00 33 000.00 33,502.00 33 502.00 33 500.00 33,500.00 37 000.00 37,000.00 53 770.00 53,770.00
22 .
602 INSTALL SIGN M CONCRETE
2564 EACH 3 3200.00 5600.00 32 W 00 5618.00 $200.00 5600.00 5200 00 3600.00 $323.00 5969.00
23 .
603 4" SOLID LINE WHITE -EPOXY
2564 LF 5284 30.28 $1 479.52 $0 29 51 532.36 50.29 31,532.36 30.28 31,479.52 30.32 31 690.88
24 .
603 4" DOUBLE SOLID LINE YELLOW -EPOXY
2364 LF 3
341 50.58 31 937.78 S0.G0 32,004.60 50.60 32,004.60 30.58 31 937.78 30.67 $2,238.47
25 .
603 4"BROKEN LME YELLOW-EPOXY
2564 LF ,
810
2 S00G 3168.60 3006 5168.60 50.07 5196.70 $0.06 5168.60 SO.OG 3166.60
.
603 24"SOLID WHITE STOP BAR)-EPOXY
2564 LF ,
170 56
00 020.00
51 $G.IB 51,010.60 56.20 51054.00 36.00 51020.00 36.45 51,096.50
2G .
EPOXY
6 3'X6'ZEBRA CROSSING WHITE 3F 972 .
53
00 ,
52916.00 53.09 33,003.48 53.09 33003.48 53.00 52,916.00 33.25 33,159.00
27 -
2564.61
602 B4LE'1' PROTECTION
573 EACH 40 .
3150 00 SG 000.00 $113.30 34 532.00 $85.00 53 400.00 3150.00 $6 000.00 5101.00 54,040 00
28 .
2
SPEC STANDARD PROCTOR SUBGRADE EACH 2 395
00 3190.00 597.85 3191.70 598.00 5196.00 595.00 5190.00 3129.00 5258.00
29 BJPLACE DENSITYffi MOISTURE SIE3GRADE
E EACH IS .
545
00 3675.00 346.35 3695.25 348.00 3720.00 345.00 5675.00 545.20 5678.00
30 SP
C
PEC CONCRETE TESTING EACH 4 .
00
3185 3740.00 3190.55 1762.20 5195.00 5780.00 3181.00 5740.00 3178.00 5712.00
31 S
SPEC INPIACE DENSTTYffiAIR VOIDS BHTIMINOUS) EACH 17 .
SI0
00 3170.00 536.05 SG 12.85 338.00 $646.00 336.W 3595.00 3291.00 54,947.00
32
T BID TOTAL . 5443 874.70 3449,667.33 3416 565.53 4471,939.37 5109,314.91
I HEREBY CERTIFY THAT THLS IS AN ACCURATE TABULATION OF
THE BIDS RECEIVED FOR THE ABOVE MENTIONED PROJECT. ~_~ INDICATES MATH ERROR CORRECTED IN THE TABULATION
~-~o.~
JOHN M. ANDERSON, P.E.
June 2, 2010
MN REG. NO. 25889
226212 -BID TAHULATION.xIs 622010 I of 1
Draft Policy on Adjustments to Street Improvement Assessments to account for Traffic
Volumes (April 2010) (Revised June 2, 2010 with bid information)
The City of Elk River has identified a need to modify the existing assessment policy to
account for traffic volumes. Primarily, past assessable projects have been on local
streets and not on through streets with higher traffic volumes. The proposed project on
Main Street from Orono Road to Lowell Avenue has brought the issue to the forefront.
The following is a draft policy dealing with the issue and suggests factors to apply to
assessments to provide an adjustment to the assessment rate to account for through
traffic. The Draft Policy presented provides a range for the adjustment factors. We
suggest the City Council identify specific numbers they wish to apply for each range.
The method described in this policy does not represent the only way to approach this
issue. In discussing the matter with other City's there are a number of ways this topic is
addressed. The City of Woodbury limits the assessment to not exceed the cost of an
assessment on a comparable residential street. The City of Hasting cuts the
assessment to 25% of the cost on all Municipal State Aid Streets. The City of Hopkins
has a set cap dollar amount that can not be exceeded.
Background
The following is a summary of how the current City's assessment policy has been
applied to projects in the past. This summary is presented to provide a historical
perspective on what assessments have been in the past.
Types of projects
Assessable projects can involve street improvements in many different forms.
These forms are considered categorized into the following three divisions
Reconstruction, Reclamation and Overlay as it relates to assessable street
projects.
Reconstruction involves removal and replacement of the roadway surface, and
aggregate base. It also generally includes the removal and replacement or
addition of concrete curb.
Reclamation involves grinding the existing bituminous surface and blending it
with the existing aggregate base. The mixture of ground up asphalt and gravel is
shaped and compacted and the bituminous surface is placed on top of this
surface.
Overlay involves adding bituminous on top of an existing surface. This process
can include removal (mill) of a portion of the existing bituminous surface either
along the edge or across the entire width.
Types of Land Use
Assessments have been scaled based on land use in previous assessments.
The following is a listing of types of land use and the number of residential
equivalents per land use
Single family Residential - 1 unit
Multi family -Townhouse - 0.75 unit
Multi family - Twinhomes - 0.75 unit
Multi family -Apartment - 0.25 unit
Multi family -Condominium - 0.25 unit
Commercial within or adjacent to residential - 2.0 units
Commercial Property -varies based on area
Church - 1 unit per potential developable residential unit
School - 1 unit per potential developable residential unit
Agriculture - 1 unit per parcel
Project Type
Historically the following break down has generally been followed related to
percent assessed for various project types and we suggest continuing to use
these factors
Reconstruction - 33%
Full Depth Reclamation - 70%
Overlay - 100%
Previous Assessments Amounts
Reconstruction
Assessments for reconstruction projects have been targeted to cover
approximately 1/3 of the project cost. The assessment rates applied historically
were based on the projected cost of the reconstruction and not an exact total
final project cost. Previous assessments for reconstruction projects area shown
below
Project
1988 -Main Street (6500 -5200 ADT)
2003 - 4~' Street Area
2003 -Boston Concord Area
and sewer
2006 -Dodge Avenue (4400 ADT)
2006- Waco (2900 ADT)
2005 - 5`~ Street Area
2006 -Highland Road (3000 ADT)
Assessment
per foot, average assessment
$1,000 per parcel
$5,000
$ 17,500 includes street and water
commercial property amount varied
50% of cost assessed to commercial
property
$6,000
$6,500
Reclamation
There is only one project of this type so far and this project took place in 2009.
The project involved pavement reclamation, spot curb replacement, and sidewalk
replacement.
2009 -Lowell, Morton, Norfolk $3,750 represents +/- 72% of total project
Overlay
Assessments for overlay projects in the past have been targeted to cover 100%
of the projected project costs. As with any assessment the density of parcels
play a large role in arriving at the actual dollar amount assessed.
Project Assessment
2004 Overlay $1,975
2006 Overlay $2,150
2008 Overlay $1,400
Multiple properties
In previous assessments residential properties have been assessed one unit per
parcel for a typical lot within the neighborhood. If property owners own more
than one parcel the owner has been assessed for each parcel. If the property
owner wishes to combine parcels to one parcel with one property identification
number and the resulting parcel cannot be split into multiple buildable parcels in
the future then the single parcel has been assessed one unit.
Large parcels
Larger parcels that can conceivably be split into multiple parcels in the future are
assessed based on the number of potential buildable single family lots that can
be divided.
Modifications to the Existing Assessment Policy.
The following describes the factors proposed to modify the assessment rate to account
for traffic volumes.
Traffic Volume
Traffic volumes are often considered when assessing. Currently the City only
counts traffic on the roadways that are designated as a part of the MnDOT state
aid system. Traffic volume and the amount of heavy vehicle traffic plays a part in
how a street is designed, built and maintained. The traffic volumes affect the
overall useful life of the pavement. Streets that carry through traffic as well as
local traffic provide benefits to a larger group of residents than local residents.
Proposed Factors to Apply to Assessments by Project Type
The same factors would continue to be applied for certain project types as have
been historically used on previous assessments. The factors for the project
types are as follows:
Reconstruction - 33%
Full Depth Reclamation - 70%
Overlay -100%
Types of Land Use
Land use factors as previously applied on other assessments would continue to
be applied in the same manor on local streets and higher volume streets.
Single family Residential - 1 unit
Multi family -Townhouse - 0.75 unit
Multi family - Twinhomes - 0.75 unit
Multi family -Apartment - 0.25 unit
Multi family -Condominium - 0.25 unit
Commercial within or adjacent to residential - 2.0 units
Commercial Property -varies based on area
Church - 1 unit per potential developable residential unit
School - 1 unit per potential developable residential unit
Agriculture - 1 unit per parcel
Traffic Factor
The following adjustments to the assessment rate based on traffic counts on the
road to be improved are recommended.
ADT Factor
0-3500 100%
3500-6600 40% - 25%
6600 and up 25% - 0%
Proposed methodology to be implemented
1. Determine total project cost (estimated /actual).
2. Multiply residential equivalent factor and total to determine total number of
assessable units.
3. Divide total cost by total number of assessable units to get 100% assessed rate.
4. Multiple 100% assessed rate by project type factor to get project adjusted rate.
5. Multiply project adjusted rate by ADT adjustment factor to get final assessment rate.
Proposed Main Street Example
4950-6200 ADT - 2010 ADT per MnDOT traffic counts
Total Project Cost = $506,017 (based on low bid)
Total assessable units (estimated) = 85
100% assessed rate =$671,500 / 85 = $5,953.14
Project adjusted rate = $5,953.14 x 70% (FDR) _ $4,167.20
Final assessment Rate (high) _ $4,167.20 x 40% _ $1,666.88
Final assessment Rate (low) _ $4,167.20 x 25% _ $1,041.80
The resulting range in proposed assessment is based on applying a range of ADT
adjustment factors of 25% to 40% as suggested in the policy above. The City council
should determine a specific percentage to apply to this factor if this method is intended
to be applied.