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5.0. HRSR 02-26-2001 ITEM '5.0 Aih ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY MEMORANDUM TO: Housing & Redevelopment Authority City Council FROM: Pat Klaers, City Administrator DATE: February 26, 2001 SUBJECT: Downtown Sidewalks Attached for your review is material from the City Engineer regarding the sidewalk project.This material includes a feasibility study, resolutions for City Council consideration,and the notice to downtown property and business owners regarding the March 1, 2001 Informational Meeting. Downtown sidewalks are not a new topic for either the HRA or the City • Council and the sidewalks were discussed in detail at both the January 22 and February 12, 2001 meetings. On February 12, 2001, assessment options that would generate between $42,900 and $58,500 were reviewed. A final assessment amount and method can be picked from any of the three examples that were offered on February 12, 2001, or a higher/lower amount could be selected.For discussion purposes, the feasibility report includes an assessment amount of$1500 per unit and the assessment formula be 50%per unit and 50% per footage. This amount and method generates $58,500 in assessments. At the February 15, 2001, Utilities Commission meeting this project was discussed. The Utility Commission was "OK" with the concept of paying for the removal of the sidewalk on the north side of Main Street provided that the city funds the sidewalk replacement. It was noted that the Utilities could do spring work in the King/Main area even if the downtown business and property owners desire the sidewalk project be completed after the Arts Soup Festival. Almost any way you work this estimated $290,000 project, the HRA ends up paying somewhere in the neighborhood of$215,000. As previously reviewed with the HRA, it is suggested that the current fund balance of the HRA, • which stands at $90,000, be applied toward this project and that the balance due of approximately $125,000 be financed by the HRA over a 4-5 year P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment • period. In this manner, the HRA can retain some flexibility and have some funds available for other projects. The balance would be funded by way of an internal loan from another city reserve. • IF74.ri:e?-- • vii Howard R. Green Company February 19, 2001 File: 812420J-0325 Honorable Mayor and City Council City of Elk River 13065 Orono Parkway P.O. Box 490 Elk River, MN 55330-0490 RE: DOWNTOWN SIDEWALK REPLACEMENT PROJECT Dear Council Members: Attached is the feasibility study authorized by Resolution 01-06 for assessment of a portion of the cost of the Downtown Sidewalk Replacement improvement. As discussed at the City Council meeting the evening this feasibility study was ordered, the study proposes to assess$58,500 in project cost based on a 50/50 split between unit cost and front footage cost. There are a total of 39 units in the assessment area. In order to keep the project on the schedule that was discussed at the last City Council 1111 meeting, three actions of the City Council are necessary. They are as follows: 1. Adoption of the attached resolution receiving the feasibility study and ordering the public hearing. 2. Adoption of the attached resolution determining the cost to be assessed and preparation of the assessment roll. 3. Adoption of the attached resolution setting the assessment hearing for the project. The public hearing and assessment hearing will be scheduled for the March 19, 2001, City Council meeting. If you have any questions regarding this project or the process, I will be in attendance at your February 26, 2001, City Council meeting. Sincerely, Howard R. Green Company Terry J. aurer, P.E. TJM:tw 5 Attach. C:\TEMP\Ltr 02-19-01 Council.doc 1326 Energy Park Drive • St. Paul, MN 55108 • 651/644-4389 fax 651/644-9446 toll free 888/368-4389 RESOLUTION 01 -_ A RESOLUTION FOR THE CITY OF ELK RIVER .4111) A RESOLUTION RECEIVING THE FEASIBILITY REPORT AND ORDERING A PUBLIC HEARING ON THE IMPROVEMENT IN THE MATTER OF THE DOWNTOWN SIDEWALK REPLACEMENT IMPROVEMENT OF 2001 WHEREAS the Feasibility Report ordered by the Council in Resolution 01-06 has been prepared with reference to the Downtown Sidewalk Replacement Improvement and was received by the City on Monday, February 26, 2001; and WHEREAS the Feasibility Report recommends that the proposed improvement is feasible; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota: 1. The City Council will consider the Downtown Sidewalk Replacement Improvement as described in the Feasibility Report and the assessment of the property abutting this proposed improvement for all or a portion of the cost of the improvement pursuant to Minnesota Statutes, Section 429 at an estimated total cost for the improvement of$290,100. 2. A public hearing shall be held before the City Council on the proposed improvement on the 19th day of March, 2001, at 6:00 o'clock p.m. at Elk River City Hall Council Chambers. 3. The City Clerk shall provide two published notices (one week apart) in the official newspaper with at least three days between the last publication date and the hearing, and mailed notice ten days prior to the hearing as required by law. Passed and adopted this 26th day of February, 2001. ATTEST: Stephanie A. Klinzing, Mayor Sandra A. Peine, City Clerk C:\TEMP\RESOLUTIONS NOTICE.doc RESOLUTION 01 - 4111 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 DOWNTOWN SIDEWALK REPLACEMENT IMPROVEMENT OF 2001 WHEREAS costs have been determined for the Downtown Sidewalk Replacement improvement consisting of a contract price of $263,700.00 and expenses incurred or to be incurred by the City in the making of the improvement in the amount of $26,400.00 for a total cost of the improvement of $290,100.00. NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Elk River, Minnesota: 1. Based upon the City Assessment Policies, it is determined that the portion of this improvement to be paid by the City and not assessed to benefited properties is $231,600.00. 2. The portion of the cost to be assessed against benefited properties pursuant to the Elk River City Assessment Policies shall be $58,500.00. 3. The assessments shall be payable in equal annual installments and shall extend over a period of three or five years, the first of the installments to be payable on or before the first Monday in January, 2002, with interest at the rate of 6.50% per annum from the date of the adoption of the assessment resolution. 4. The City 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 to 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 26th day of February, 2001. ATTEST: Stephanie A. Klinzing, Mayor Sandra A. Peine, City Clerk C:\TEMP\RESOLUTIONS NOTICE.doc RESOLUTION 01 - • A RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT IN THE MATTER OF DOWNTOWN SIDEWALK REPLACEMENT IMPROVEMENT OF 2001 WHEREAS by a resolution passed by the Council on February 26, 2001, the City Clerk was directed to prepare a proposed assessment of the cost of the Downtown Sidewalk Replacement Improvement of 2001; and WHEREAS the Clerk has notified the Council that such proposed assessment has been completed and filed in his office for public inspection. NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Elk River, Minnesota: 1. 2. 3. A hearing shall be held on the 19th day of March, 2001, in the City Hall at 6:00 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. 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 she shall state in the notice the total cost of the improvement. She 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. 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 Finance Director, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of the assessment. He may at any time thereafter, pay to the County the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. Passed and adopted this 26th day of February, 2001. Stephanie A. Klinzing, Mayor ATTEST: Sandra A. Peine, City Clerk C:\TEMP\RESOLUTIONS NOTICE.doc ,v0Fciii 1.41 to.kg A • ,.6- February 19, 2001 File: 812420J-0325 Dear Property Owner/Business Owner: As you are aware, the City Council and HRA are considering a downtown sidewalk replacement project. The proposed project would replace all of the "red" sidewalk with concrete brick pavers. In order to further discuss the proposed project and answer any questions you may have, City and Municipal Utilities staff have scheduled the following project informational hearing. PROJECT INFORMATIONAL HEARING DOWNTOWN SIDEWALK REPLACEMENT PROJECT THURSDAY, MARCH 1, 2001 6:00 p.m. ELK RIVER CITY HALL COUNCIL CHAMBERS Several issues will be discussed at the project informational hearing. These will include the following: • Timing of the proposed improvement • Placement of electric utility underground • What to expect during construction • Concrete paver product chosen • Proposed assessments This project does have the potential of levying an assessment against your property. Therefore, your input is important. If you are unable to attend the project informational meeting, you can submit written comments or questions to me at Elk River City Hall or call me at 763-441-2950. Sincerely, Howard R. Green Company l' Terry aurer, P.E. City Engineer TJM:tw II C:\TEMP\Ltr 02-19-01 Infomtg.doc 11°. 812420J FEASIBILITY FEASIBILITY STUDY FOR THE DOWNTOWN SIDEWALK REPLACEMENT PROJECT jectNo. 812420J-0325 CITY OF ELK RIVER, MINNESOTA Pro Howard R. Green Company Feasibility Study Project No. 812420J City of Elk River 111). FEASIBILITY STUDY DOWNTOWN SIDEWALK REPLACEMENT PROJECT ELK RIVER, MINNESOTA FEBRUARY 2001 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 the laws of the State of Minnesota. (-1(4-(A) 2/2 /G/ Terry J. Maurer, P. . Date Reg. No. 15316 Prepared by: 1 i 1-091^ n- 7--/z z/°1 Kristina Thompson, E.I.T. Date 812420J FEASIBILITY • Howard R. Green Company Feasibility Study Project No. 812420J City of Elk River 4111 1. INTRODUCTION This feasibility study is authorized by the City Council with the adoption of Resolution 01- 06, passed on February 12, 2001. The scope of the feasibility is to consider the replacement of the downtown "red" sidewalks with concrete pavers. This report will briefly discuss the proposed improvements, estimated cost, provide a method of assessing a portion of the project, and provide a schedule for completion of the project. Resolution 01-06 authorizing this feasibility study was adopted by the City Council based on a recommendation from the City's Housing and Redevelopment Authority (HRA). 2. PROPOSED IMPROVEMENTS The replacement of the downtown existing "red" sidewalk has been discussed for several years. Two things have occurred which make it appropriate to consider the initiation of this project in the summer of 2001. First is the redevelopment of the northwest corner of Main Street and King Avenue. The second item is the desire by the Elk River Municipal Utilities to bury conduits and electric wires in the downtown area. At several meetings, the City Council and/or HRA have discussed various options for the replacement of the downtown sidewalks. It was concluded that all of the "red" sidewalks should be replaced with a similar concrete paver style as chosen by the development at Main Street and King Avenue. That development will be replacing the sidewalks on both sides of the new building with a concrete paver that is of a cobblestone style in a random pattern with three different size blocks, those sizes being 3" x 6", 6" x 6", and 6" x 9". • The color chosen by the development is Autumn Blend. Exhibit 1 shows what the random pattern style will look like using the intersection of Main Street and Jackson Avenue as an example. In addition to replacing the "red" sidewalks in the downtown areas, it is also proposed to replace sections of concrete curb and gutter which have been damaged over the years, replace sections of flat gray sidewalk on King Avenue which have deteriorated over time and, finally, to connect the two concrete islands at the intersection of Main Street and Jackson Avenue with the curb line to eliminate any cut-through vehicle traffic. The project would also remove and replace all of the pedestrian ramps in the downtown area. 3. PROJECT COSTS This section provides the estimated project costs for the proposed improvements. Overhead, which includes City administration, engineering, legal, fiscal, and assessment roll preparation, is typically estimated at 28% of the construction cost. For the purposes of this project, that overhead rate has been estimated to be 10%, given the relatively simple process this project will go through. The estimated project costs are as follows: Estimated Construction Cost $263,700 Estimated Overhead (10%) 26,400 Estimated Total Project Cost $290,100 812420J FEASIBILITY Howard R. Green Company Feasibility Study Project No. 812420J City of Elk River 4. FINANCING The project is proposed to have a small percentage assessed to the abutting property owners with the remainder funded by the HRA. Various options have been reviewed by the HRA and City Council for the assessment of this project. The chosen alternative is to assess $1,500 per unit, with a unit being determined to be any parcel of property which has a separate tax identification number. A review of the County records indicates that there are 39 parcels in the project area with individual tax identification numbers. Using $1,500 per unit, this means that the total assessment would be $58,500. The method of spreading this assessment was chosen as 50% per unit and 50% by front footage. It was determined that there is a total assessable front footage of approximately 2,500 front feet. Therefore, the assessment rates are $750 per unit and $11.64 per front foot. Applying these rates to each parcel results in the preliminary assessment role shown on Exhibit 2. The remaining project costs will be funded by the HRA with a small portion of the cost being paid for by the Elk River Municipal Utilities, equivalent to the cost of removing the existing sidewalk on the north side of Main Street. 5. PROJECT SCHEDULE The schedule for the Downtown Sidewalk Replacement project, as provided in Table 1 below, is based upon guidelines established in Minnesota State Statues Chapter 429, Local Improvements, Special Assessments. Dates for construction may be revised after the informational hearing. Table 1. PROJECT SCHEDULE • City Council orders Feasibility Study February 12, 2001 • City Council receives feasibility study and orders public February 26, 2001 hearing. • City Council orders preparation of assessment roll and February 26, 2001 assessment hearing • Informational Hearing March 1, 2001 • Public Hearing and Assessment Hearing March 19, 2001 • Order Improvement March 19, 2001 Approval of Plans/Authorization to Bid • Open Bids April 12, 2001 • City Council awards contract April 16, 2001 • Begin construction on sidewalk replacement and ERMU April 23, 2001 underground electric work • Complete construction Mid June, 2001 • • First payment due with real estate taxes May 2002 812420J FEASIBILITY Howard R. Green Company Feasibility Study Project No. 812420J City of Elk River 6. NEED AND COST-EFFECTIVENESS The sidewalk in the downtown area is showing signs of deterioration and is in need of replacement. The Elk River Municipal Utilities has plans to place its electric facilities underground in the downtown area in 2001, which will require replacement of approximately half of the sidewalk. The project is necessary to provide a quality means for pedestrian movement throughout the downtown business district. This project consists of approximately 30,000 square feet of sidewalk to be replaced. The size of the project will insure competitive bidding and from this standpoint, is cost-effective. 7. CONCLUSION Based on the information contained within this report, the Downtown Sidewalk Replacement Project is necessary, cost-effective, and feasible from an engineering standpoint. As previously stated, the cost will be financed through a combination of assessments to benefiting properties, HRA funds, and Elk River Municipal Utilities funds. 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