6.3. SR 05-01-2006
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Plannin jEn ineerin Ma 1, 2006
Item Description
Na les Streetj186th Avenue Feasibility Report
Introduction
Late last year, the City Council authorized this feasibility report which analyzes the extension of
sanitary sewer and water together with permanent streets on Naples Street and 186th Avenue. The
history of this project dates back to 1990 when the fIrst petition was received from the
neighborhood asking the City to assist in taking over ownership and maintenance of the then
private dirt road in the area.
Discussion
In the preparation of the attached feasibility study, a neighborhood meeting was held on March
30, 2006. Eight of the properties were represented at that meeting. It was apparent from the
meeting and phone conversations with property owners prior to the meeting that the number of
property owners in favor of the proposed improvements and the number of property owners
against the proposed improvements are the same as they were in 2002. In 2002, one of the
property owners appeared at Open Mike, asking for the City to look at sanitary sewer, water and
permanent streets for the area. At that time, the City Council authorized an informational
meeting to be held but did not order a feasibility report. After the informational meeting,
residents were encouraged to write "yes" or "no" next to their names on a sign-up sheet,
indicating yes, they were in favor of the proposed improvements, or no, they were not. It appears
that in 2006, the split of those for and against the proposed improvements are exacdy the same.
In 2002, the City opted not to proceed after the informational meeting.
If the City Council were to decide to proceed to a public hearing based on this feasibility study,
they should bear in mind that the conclusion of the feasibility report is the total cost cannot be
assessed to the abutting properties. It is staffs opinion that 100 percent assessment of the project
cost could not be sustained in the event of an assessment appeal. Also, staff is recommending
that if the Council wants to move forward to a public hearing, that an appraiser be retained to
render a general opinion of what is the maximum assessable cost that can be levied against the
properties in question. Also, staff would recommend that the Planning Department make a
determination of how many properties in the area could be further subdivided if sanitary sewer
and water were available. Based on these two pieces of information a maximum assessment per
parcel could be determined. Then this information would be presented at the public hearing. If
the City Council wishes to follow this direction, attached is a resolution which accepts the
feasibility report and orders the public hearing for July 17, 2006 leaving enough time for the
analysis of the property prior to the hearing.
Financial Impact
The total estimated project cost is $413, 400. The portion that would be determined to be non-
assessable would need to be funded by the City. At this point in time, that amount is
undetermined, but could likely be as much as one-third the cost of the total project.
Attachments
. Feasibility Report
. Resolution Receiving the Feasibility Report and Ordering the Public Hearing
Action Requested
Discussion by the City Council of the feasibility report and the history of this proposed
improvement and determination of whether or not to proceed to a public hearing. If the City
Council desires to proceed to a public hearing, staff would request direction as to how to
determine total assessable amount of the estimated project cost.
Council Action
Motion by _
Second by _
Vote
Follow Up
S:\EngineerImprovProj\2006 Improvement Projects\Naples St-186th Ave\OS 0106 cc memo. doc
RESOLUTION 06 .
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION RECEIVING THE FEASIBILITY REPORT
AND ORDERING A PUBLIC HEARING ON THE
IMPROVEMENT IN THE MATTER OF THE NAPLES STREET 1186TH AVENUE
UTILITY AND STREET IMPROVEMENT OF 2006
WHEREAS, the feasibility Report ordered by the Council in Resolution 05-126 has been prepared
with reference to the Naples Street/186th Avenue Utility and Street improvement
and was received by the City on May 1, 2006; 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 Naples Street/186th Avenue Utility and Street
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 $413,400.
3.
A public hearing shall be held before the City Council on the proposed improvement on the
1m day of July, 2006, at 6:30 o'clock p.m. at Elk River City Hall Council Chambers.
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.
2.
Passed and adopted this 1st day of May, 2006.
Stephanie A. Klinzing, Mayor
ArrEST:
Joan M. Schmidt, City Clerk
S:\EngineerImprovProj\2006 Improvement Projects\Naples St-186th Ave\Res recv feas-order ph.doc
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FEASIBILITY STUDY
NAPLES STREET AND 186TH AVENUE STREET
AND UTILITY IMPROVEMENTS
CITY OF ELK RIVER
MARCH 2006
--v1-~
BDM
CONSULTING ENGINEERS, PLC
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FEASIBILITY STUDY
NAPLES STREET AND 186TH AVENUE STREET
AND UTILITY IMPROVEMENTS
CITY OF ELK RIVER
MARCH 2006
I hereby certify that this plan, specification, or report was prepared by me or under my direct
supervision and that I am a duly registered Professional Engineer under the laws of the State of
Minnesota.
~~auaJ
Terry J. Maur , .E.
Lie. No. 15316
~/~Lj;0~
Date
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TABLE OF CONTENTS
INTRODUCTION .......... .................. .......... .............................. ....... ....... ......... ....... ........ 1
PROJECT SCOPE ............ ................ .......... ........................... ........................ ................. 1
PROJECT HISTORy......... ..................... ........... ........................ ....................... ............. 1
NECESSITY AND COST-EFFECTIVENESS................... .................... .......................2
RIGHT OF WAy............................................................................................................ 2
PROPOSED IMPROVEMENTS......... ........... ......................... ....................................... 2
PERMITS........................................................................................................................4
INFORMATIONAL MEETING .... ............... .... ........................ ........ ............................ 4
PROJECT COSTS..................... ...... ...... .............. ..... ....................................... ...............4
PROJECT FINANCING..... ..... ...................... ...... ....................... .................................... 5
PROJECT SCHEDULE. ....... .., .......... ......... ........... ............. ....... .......... ... ....... ........ ......... 7
CONCLUSION............................................................................................................... 7
EXHIBITS 1 - 5
APPENDIX A
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I. INTRODUCTION
This feasibility report for utilities and street construction on Naples Street and 186th Avenue was
authorized based on a petition received by the Elk River City Council and adoption of Council
Resolution 05-126 passed on November 21,2005. The location of the proposed project is presented
on Exhibit 1.
II. PROJECT SCOPE
The purpose of this study is to analyze the feasibility of extending city sanitary sewer and watermain
into the neighborhood of Naples Street and 186th Avenue. The street would then be reconstructed to
an urban standard with concrete curb and gutter. This study will discuss the history of the project, the
proposed improvements, right of way needs, estimated project costs, proposed funding, and possible
project schedule. This project will be accomplished under Minnesota Statute 429, and will thus
require a public hearing and an assessment hearing. Project costs consist of estimated construction
costs plus overhead, which includes City administration, engineering, fiscal, and legal expenses. The
City's current assessment policy and past practices will be used "as a guide to discuss financing
methods for this project.
III. PROJECT HISTORY
The first petition for improvements in this area was received in August of 1990. At that time, this
was considered a private road serving the residential properties on Naples Street and I 86th Avenue.
The petition sought the City's help in upgrading the road and taking over the maintenance. Through a
series of informational meetings and discussions with the property owners, by the mid-1990's, the
City had agreed to take over maintenance of the gravel road, if in fact the residents would provide
easements to the City for access to the road. By the mid-1990's, all but four properties had given the
City the necessary easements. At that point in time, the City crews went in, made a minor gravel road
upgrade, and have been providing snowplowing services since. In 2002, a resident of the area
appeared at a City Council meeting Open Mike session and requested City consideration of extending
sanitary sewer, water and permanent streets to the area. The City Council authorized staff to do some
preliminary work on this issue and hold an informational meeting. That informational meeting was
held in October of 2002 and the outcome was that the neighborhood was almost evenly split with
those interested in City improvements and those disinterested. No further actions were taken on this
proposed project until the most recent petition was received in October of2005.
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IV. NECESSITY AND COST-EFFECTIVENESS
Naples Street and 186th Avenue currently are gravel with limited drainage and no public utilities.
There are properties built adjacent to the Elk River. There are also vacant properties and parcels that
could be split further, if City sewer and water was available. The proposed project would provide
City sewer. and water and a permanent urban street. This would allow for the development of the
undeveloped parcels and potentially splitting of additional lots off of some ofthe developed parcels.
The project would minimize Street Department maintenance efforts and the scope is large enough to
keep construction bid prices competitive. From these standpoints, the project is cost-effective.
V. RIGHTOFWAY
As indicated earlier, in the mid-1990's all but four property owners on Naples Street and 186th
Avenue signed easements for utility, drainage and road purposes. Exhibit 2 shows the properties that
have given the easements and those that have not. For any type of improvement to proceed regarding
public utilities and permanent streets, the other four easements would be necessary. Costs presented
later in this report assume that the additional four easements would be given and eminent domain
would not be used by the City to acquire the necessary easements.
VI. PROPOSED IMPROVEMENTS
a. Sanitary Sewer
Sanitary sewer to service Naples Street and 186th Avenue would be extended from the existing lift
station in the Fox Haven Addition immediately to the east. Sanitary sewer would be extended along
the boulevard area in the location of the bituminous pathway to Naples Street. It would then be
extended northerly to the intersection with 186th Avenue and then westerly to the termini of 186th
Avenue. The sewer would be deep enough to provide gravity flow from the lowest level of the
existing homes in the area. Four-inch service stubs would be extended to the easement line of each
existing home and to each potential lot split in the area.
The proposed sanitary sewer improvements are shown on Exhibit 3 and the estimated costs are
presented in the Project Cost section of this report.
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b. Watermain
There currently is watermain on 185th Avenue at the Naples Street intersection. This watermain
would be extended up Naples Street and then westerly to the end of 186th Avenue. Each existing
home would receive a one-inch water service extended to the easement line. Additional services
would be extended to undeveloped lots or potentially future lots to be split from existing properties.
Fire hydrants would be strategically placed along the route for fire protection.
The proposed watermain improvements on shown on Exhibit 4 and the estimated costs are presented
in the Project Cost section of the report.
c. Street/Storm Drainage
It is proposed to construct a permanent urban-style street after the installation of sanitary sewer and
watermain on Naples Street and 186th Avenue. The street would meet the City requirements for
width, being 32 feet wide face-of-curb to face-of-curb. As shown on Exhibit 5, the pavement section
will consist of 3 12" of bituminous and 6" of aggregate base to provide a section that meets the City
standard. Soil borings will be obtained during the preparation of plans and specifications to verify
pavement design requirements.
An integral part of the street design is the concrete curb and gutter which collects runoff and directs it
to the storm sewer inlets. Concrete curb protects the edge of the bituminous surface and adjacent
boulevard area from erosion. The proposed concrete curb and gutter will be a barrier-style.
Driveway aprons will be accomplished by transitioning from the street to the driveway. Each
driveway will be reviewed during the preparation of plans and specifications to determine the
transition required. All driveways will receive a 4-foot wide concrete driveway apron where the
existing driveway approach meets the new concrete curb section. Catch basins and small diameter
storm sewer pipe will be used to convey runoff from the street to the Elk River. Given this developed
nature of this neighborhood, it is unlikely there will be opportunity to provide ponding. Therefore,
storm water inlets and manholes will use sumps and other devices to provide sediment control prior to
discharging into the Elk River. The estimated cost for the proposed street and storm drainage
improvements are included in the project cost section of the report.
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VII. PERMITS
Several permits will be required prior to the proposed construction of the improvements. Required
permits include but are not limited to the following:
. Minnesota Department of Health
. Minnesota Pollution Control Agency
. Minnesota Pollution Control Agency (NPDES)
Watermain
Sanitary Sewer
Erosion/Sediment Control
VIII. INFORMATIONAL MEETING
An informational meeting was held on Thursday, March 30, 2006 relative to these proposed
improvements. A total of eight properties were represented. The Appendix contains the sign-up
sheet, presentation materials and minutes of the informational meeting.
IX. PROJECT COST
The estimated construction and project costs for the proposed street and utility improvements are
summarized in Table 1. Based on past experiences on similar projects in the City, the overhead items
have been estimated at 28% of the construction cost. These overhead costs include City
administration, engineering, design, construction staking, inspection, fiscal, and legal expenses.
Table 1
Naples Street/186th Avenue Utility and Street Improvement
Project Cost Estimate
Street and Storm Sewer Improvements
Sanitary Sewer Improvements
Watermain Improvements
Estimated Total Construction Cost
Contingency (10%)
Overhead (28%)
Total Project Cost
$ 164,300
72,100
63,100
$ 299,500
30,000
83.900
$ 413,400
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x. PROJECT FINANCING
Typically it has been the City's past practice to fund these types of improvements with a per unit
assessment. Units are determined by residential single family lots equivalents. If a property can be
further subdivided, creating more single family lots after the improvements are made, that parcel
would be assessed more units. If a property is unable to further subdivide even with the proposed
improvements, that property would be given one unit. However, in this area, there is no unified
property shape. Some properties have much more frontage and less area; others have a larger area.
Table 2 provides a listing of properties by owners name and PIN number, together with their frontage
and acreage and an example of how much the assessment would be if the total project cost were
spread 100 percent on front footage versus 100 percent on an area basis.
As it can be seen by the previous table, there is no clear cut way to assess these costs against the
benefited properties. The other item that is clear from this exhibit is that the assessment amount in
100 percent assessed scenario against these properties will likely result in assessment amounts which
cannot be sustained through an assessment appeal. It is staffs opinion that if this project is to move
forward, the City will have to subsidize the cost of the improvements to get the proposed assessments
to a level that is sustainable through an assessment appeal. If this project is to move forward, staff
would recommend that before the public hearing, an appraiser be hired to determine generally what is
a sustainable assessment level against these properties for street and utility improvements.
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XI. PROJECT SCHEDULE
The following project schedule is shown for demonstration purposes of a likely timeframe to
implement the Naples Street and 1 86th Avenue Street and Utility Improvement project.
City Council Authorizes Feasibility Study
Informational Meeting is Held by City Staff
City Council Receives Feasibility Study/Orders Public Hearing
City Council Authorizes the Hiring of an Appraiser to Determine
Maximum Assessment Amounts
City Council Holds Public Hearing
City Council Orders Project and Preparation of Plans/Specifications
City Council Approves Plans and Specifications/ Authorizes
Advertisement for Bids
Bids are Received
City Council Holds Assessment Hearing
City Council Awards Bids
Construction is Initiated
Construction is Completed
November 21, 2005
March 30, 2006
May 1, 2006
May 1, 2006
July 17, 2006
July 17,2006
August 7, 2006
August 30, 2006
September 5, 2006
September 5, 2006
September 2006
June 2007
XII. CONCLUSION
The total estimated project cost for the Naples Street/186th Avenue Improvement Project is $413,400.
As stated earlier and shown in Table 2, there is no clear cut way to equitably spread these
assessments. Both a front footage assessment or an area assessment tends to favor certain properties
while penalizing others. If this project is too move forward, an equitable assessment scenario likely
using both front footage and area must be determined. Also as stated earlier, it is unlikely that the
total cost of the improvement can be assessed against the benefited properties and withstand an
assessment appeal. Therefore, the recommendation is to hire an appraiser to determine the maximum
assessable cost and if the project is to move forward and have the City subsidize the costs that are
determined not to be assessable.
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APPENDIX A
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MINUTES OF THE INFORMATIONAL MEETING
NAPLES STREET AND 186TH AVENUE
THURSDAY, MARCH 30, 2006
A. ATTENDEES
See attached sign-up sheet.
B. PRESENTATION
City Engineer Terry Maurer went through a PowerPoint presentation which laid out the
project history, the proposed improvements extending sewer and water on Naples Street and
186th Avenue, and completing the project with an urban-style bituminous paved permanent
street. Also, the need for right-of-way from some properties was discussed, together with
the estimated project costs and possible methods of assessment.
C. QUESTIONS AND ANSWERS
At the close of the presentation, there was a period for questions and answers. The
following is a summary of the questions asked and the answers provided:
Q. Why are we here talking about this again - we have talked about it several times over
the years. Who is bringing it up again?
A. The City received a petition signed by a number of property owners. In November
of last year, the City ordered this feasibility study based on that petition. This
informational meeting is part of preparing the feasibility study.
Q. How will the City determine whether or not to proceed with the project?
A. The City will receive the feasibility study and the minutes from this meeting. It
appears as if the people in favor and people opposed to these improvements are
similar to the way they were in 2002 when this project was also discussed. The City
Council will decide after receiving the feasibility study whether or not to proceed to a
public hearing, or decide that the positions of the property owners have not changed
and it is not necessary to proceed to a public hearing. If it proceeds to a public
hearing, a notice will be sent to each individual and the hearing will be held before
the City Council. You will have an opportunity to give testimony directly to the City
Council.
Q. How would the City Council determine to assess the project? Would it be on front
footage or would it be on acreage?
A. It seems like there is no clear cut way to assess this project that would be equitable to
all properties. We have shown 100% frontage and 100% acreage assessments to
show the difference on the various properties. As you can see, each method makes a
substantial difference on some properties because of their shapes or sizes. The
public hearing would be the time that the City Council would listen to the report and
testimony from the public and give some direction to staff as to how to calculate
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Naples Street-186m Avenue Informational Meeting
March 30, 2006
Page 2
various assessment scenarios. My guess would be that the Council may direct staff
to do a study to determine how many lots could be split further and assess based on
potential lots in the area once sewer and water is available, so that lots that could be
further subdivided would pay a higher cost while lots that could not be further
subdivided would not pay as high a cost.
Q. Does not State law say that an assessment cannot be any more than the increase in
value of the property?
A. That is correct, and in the scenarios I have shown tonight, there are likely properties
that the potential assessment would be more than the increase in value. The size of
lots out here and the cost of the improvement, it may be necessary to have the City
subsidize a portion of this for the project to move forward. That is another item
that the City Council would have to discuss and determine whether or not they are
willing to help subsidize this project to make it happen. Staff recommendation to
the City Council would be that if the project is to move forward, that we get some
appraisals in the area to determine what is the threshold of assessment against
properties that an appraiser feels are sustainable.
Q. The question was asked whether the properties on the frontage road (185m Avenue)
would be included in the project?
A. They were not included in the petition or the feasibility, however, I do believe that if
this project moves forward, the Council will be asked to look at whether or not the
project should be expanded to include those properties, since they are all generally
part of the same neighborhood.
Q. What is the dimensional size of a lot for development, if sewer and water is
available?
A. Generally, I believe that the ordinance requires 80 feet of frontage and 12, 000 -
14,000 square feet. Comer lots are required to be slightly larger and there may be
other ordinance requirements for lots abutting the Elk River that would require them
to be slightly larger.
Q. How many of the properties out there could split off lots?
A. A general discussion was held regarding which properties could potentially split
additional lots, including properties that could work in concert with each other and
create additional lots between them.
Being there were no more questions, the informational meeting was adjourned at 6:55 p.m.
Submitted by,
Terry J. Maurer, PE
City Engineer
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signin sheet
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Informational Meeting
PROJECT NAME:
OWNER:
DATE OF MEETING:
Naples Street/186th Avenue
City of Elk River
Thursday March 30.2006
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