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4.1. SR 09-20-1993 rei -\) ( ); rIll ITEM 4. 1. TO: MAYOR & CITY COUNCIL FROM: PAT KLAERS, CITY ADMINISTRATOR DATE: SEPTEMBER 16, 1993 SUBJECT: JARVIS STREET At a recent City Council meeting, discussion took place regarding a change order to the 165th Avenue overlay project to include work on Jarvis Street. It is anticipated that this change order will be in the $36,000 range. Twenty-four thousand dollars worth of work is anticipated to be needed on the part of Jarvis Street that borders both Elk River and Ramsey. Elk River requested a financial contribution from Ramsey before proceeding with work on this part of the street that is our common boundary. e Attached for your review is the response from the City of Ramsey. Ramsey indicated very clearly that it wished to be a good neighbor and cooperate with this project. However, they also indicate that they have some assessment procedures that they must follow and are very concerned about setting a precedent in this case. Ramsey has volunteered to pay $9,150 toward this overlay project. Staff recommends accepting this offer and authorizing the change order for the overlay work on all of Jarvis Street. If there were no benefitted property owners on the City of Ramsey's side of this project, I am confident that Ramsey would have split this project with us on a 50/50 basis. However, due to a concern over a precedent setting situation, I can understand the City of Ramsey's position. I feel that we should accept this proposal due to the uncertainty of bid prices in the future for this work and our strong desire to have this street improved at this time. e P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 e - SfP 1 7 1993 City of Ramsey PHONE (612) 427-1410 FAX (612) 427 -5543 15153 NOWTHEN BOULEVARD N.W., RAMSEY, MINNESOTA 55303. TOO (612) 427-8591 Patrick Klaers City Administrator City of Elk River P.O. Box 490 13065 Orono Parkway Elk River, MN 55330 Dear Pat; The Ramsey City Council received your August 25, 1993 letter regarding the Jarvis Street overlay at its September 14, 1993 meeting. As mentioned to you in our phone conversation of September 15, 1993, this overlay project was not budgeted nor contemplated by the City of Ramsey in the near future, therefore, we don't have a defined revenue source to participate in the cost share with the City of Elk River. However, the Ramsey City Council expressed a strong desire to work with our neighboring communities to the extent possible, therefore, if the City of Elk River wishes to pursue this road project during 1993 the City of Ramsey will participate in the funding of the project. Pat, as we discussed, the Ramsey City Council has a concern that if Ramsey funds 100% of its portion of the roadway which would not allow for an assessment against the six benefiting properties in the City of Ramsey, the explanation to the balance of the public on future road improvements will become more difficult. We have had two recent overlay projects with an average parcel assessment of $475, therefore, the City Council assumed that the aggregate assessment for these six parcels for this road project would have been in an amount of $2,850, with the City's share being $9,150. Hence, City Council authorized me to inform you that we can contribute, at this time, the amount of $9,150. Further, if the City of Elk River is not comfortable with this position, we are open to placing this project on our 1994 street maintenance program. We then can consider undertaking our portion of the project as an assessment project which would theoretically result in the City of Ramsey participating to the extent of the $9,150 next year providing the project cost holds at $12,000 with the balance being funded by the six benefitting Ramsey properties [assuming neighborhood project approval]. The Ramsey City Council is unfamiliar with the condition of the road service and the road base. It is my understanding that both your consulting firm of Maier, Stewart & Associates and your public works staff have reviewed the road conditions and are comfortable that an overlay, as opposed to a reconstruction, is the appropriate project at this time. I also understand that the City of Elk River public works forces are intending to provide for some preparatory work prior to the contractor conducting the overlay. Certainly if you are in need of Ramsey assistance in this preparatory work, we are open to providing that assistance. Further, if there are other areas in which the two communities can jointly work together in the future, the Ramsey City Council expressed a strong desire to do so. Perhaps Ramsey forces can take the lead in the next project in order to provide for commensurate benefit back to the City of Elk River for any tipping of the scale away from your community on the Jarvis overlay project. e e e Patrick Klares September 15, 1993 Page 2 Pat, I hope you and your Council understand that the Ramsey City Council strongly desires to participate equally with Elk River on this and future projects. The Ramsey City Council is concerned for the assessment precedents of providing more public funding for this project then would otherwise have been the case. If your City Council has any concerns or questions, hopefully we can positively respond. Thank you for your consideration and for the opportunity to work with the City of Elk River. Sincerely, JQlL Ryan Schroeder City Administrator CC: Ramsey City Council Jessie Hart, Finance Officer Steve Jankowski, City Engineer RS/kaj