9.1. SR 06-02-2008Item # 9.1.
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MEMORANDUM
TO: Mayor and City Council
FROM: Terry Maurer, Public Works Director
DATE: June 2, 2008
SUBJECT: 193"d Avenue Improvement Update
As we prepare to make our final submittals Yo_VInDOT for the '193"' ~yvenue corridor
extension, I wanted to take a Few ruinutes to give the Council an update on the project's
status. The items I would likcl7~ to briefly discuss are as follows:
A. Euvixomneutal Documentation
Our Project Memorandum required because of the Federal funding in this Project
has been approved and signed by the h'edcral Highway Administration and MnDOT.
hherefore, all work on the environmental documentation is complete.
B. Wetland Issues
The Technical Evaluation Panel (TEP) has reviewed the proposal and given general
approval to the purchase of wetland credits to mitigate the areas where the new road
corridor will impact existurg wetlands. We ue working with Niclu Yo fain up the
exact number of wetland credits that will need to be parchased. Purchasing the
wetland credits will be much more cost-effective than Hying to dcvcioP wetlands on
the project site and lien maintaining them for a period of five years. The one issue
that is still ongoing with regards to wetlands is approval by the Corps of Engineers
for the wetland impact to the areas tinder their jurisdiction. That pesnnt application
has been subnn¢ed, but could take. 60 - 90 days fox final appro~=al.
C. Land Acquisition
As you are aware, the Sherburne County Court has approved the City's petition for
enmrent domain on four parcels (Maas, Ualviu (Z), and Howse.). The week of Map
L the city placed the appraised value of those four pieces of property with the court;
therefore, the land is technically the city's at this point in time. On May 23"'there
cvas a viewing conducted with the landowners' attorneys, the city's attorney, and the
court-appointed commissioners which I also attended. It sounds like commissioner
hearings will not be held until sometune this fall. Therefore., it may be some time
193' :AvcvuC Coai~or Update t'age ~
~unc 2, 2008
before the final cost detexnnnation for the acdiusition of diesc four properties is
complete.
All other properties needed for the project have been secured with one exception.
Attached to this- memo for your consideration is a letter from NIr. and Mrs. Burandt.
As the City Council directed some dine ago, we have worked closely with the
Rurandts to mitigate and ininitnizc impacts to their property. The adjustments we
hate made nzclude a slight change nx the alignment of the road to move it further
away from their property line, the addition of a chain link fence along the majority of
the length where the road is in close pxo~imity to their property line, and
adjustments to the wetland culvert system to add extra protection to the portion of
the wetland nn their property. We have reduced the impact to their property to an
area .25 acres on a temporary basis fox giadulg purposes. As you can see from the
letter submitted by Mr. and 'Vars. Burandt, they axe requestuig a x'10,000 payment fox
the temporary casement of .25 acres. I have briefly discussed with t~4rs. Burandt the
potential of providing them an offsetting piece of property, once the road project is
complete. The city has acquired more property than is needed fox the road
improvement from the Maas property in order to grade a steep hill. Once the lidl is
graded, a portion of that property could he turned over to the Buxandts, hi fact, the
Burandt fence line is slightly off of their pmpeity on the Maas property (now city
propertf~). By providing them a small sliver of land when the project is complete,
thciz fence would be back on the property that they would own. I have kept nc~
Burandts informed when this issue would be discussed by the Council and I do
expect that they wilt be in attendance.
D. Plans and Specifications
There are a few items that I want to touch on with the Council relative to the plans
and specifications before they axe subnritted to MnDO'T' for final approval. 'T'hese
include:
1. Sanitax~sewex and water extensions
BxVan Adams of the N'lk River Municipal Utilities would like to see water
e_xtendcd under 193` Avenue to provide a needed loop in the water system
from the properties developed south of CS[~H '13 to the areas north along
1'H 169. VJe believe that this is a reasonable route far looping of the
watcrmain system.
A portion of die 193`s Avenue new corridor is within the city's sanitary sewer
district All land lying west of Tyler Street is in the Urban Sexvicc llisttict,
while lands east of Tyler Street axe not. Flowever, the only sizable piece of
property with future development potential, without piecing several paecels
together, would be the Burandt property. Phis could be serviced in the
future should it develop by extending sewer from Twrrr Lakes Estates just
south of CSAH 13 at Tyler Street northward along "Tyler to service the
Burandt property. If we were to put sanitary sewer under 193"' ilvenue with
the road extension, it could rin n out to be a very expensive insurance policy
which may never be needed. My recommendation would be to allow the
water extension for looping of the Ctiliry's water system, but nor extend
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sanitarc sewer at this time since there is another corridor which could be
utilized, should development occur in the fixture.
2. Street Lighting
It wottld be our intent to ask the Elk River DZunicipa] Utilities, as has been
the practice on other stre~ex projects, to light the cnxridox with the standard
fixtures at dieit prescribed spacing, once the improvement is complete.
Therefore, the plans and specifications do not include anv street lighting
component.
3. Street Section/Median Treatments
hhe street section proposed fox the new portion of 193" Avenue is vuy
simile to Orono parizzvay. There is 22 feet of blacktop in each direction
which wilt accommodate one lane of traffic and a wide shoulder for right
turn movements ox a disabled vehicle to pull over. At this point, our plan fox
the medians would be to build them but leave them approximately six inches
low so that median treatments can be undextalien with a separate contract at
a later date, as the Cite Council is working through the median discussion on
the Orono Parkway medians. The medians on 193"' Avemie would not likely
he ready for planting until some tune in late 2009, so there is ample time to
come up with a design.
4. ]ntcxsection of 193"~ Avemie and Evans Street
The intersection of 193"' Avenue and Evans Strcct will be laid out with the
appropriate geometries to support a signal system at a later date. We have
prepared a Signal ~ustiftcarion Report, but at this time, a signal is not
warranted. "1'herefoxe, NhiDO1' would reject a signal being inchided in this
project. That does not preclude the City froth undertaking a signal locally-
fundcd as a separate project. One consideration that the Signal Justification
Report discusses is adding a fourth stop sign as an intexun measure until a
signal is warranted. The Signal Justification Report indicates that afour-wav
stop will operate efficiently and not back up onto the highway. MnDO'1' is
concerned about the potential backup problem.
5. Sidewalk nn the south side of the existing 193` Avenue
The project fox the new portion of the road includes a sidewalk on the north
side and a 10-foot wide bituminous ball on the south side. The sidewalk on
the north side will tie into a sidewalk on the existing portion of 193`a Avenue.
The pathway on the south would terminate at Xavier Street. We could get a
sidewalk immediately behind the curb on the south side of existing 193`d
Avenue, however, it would be difficult in areas to get it through steep
dxivevvays and would require retaining walls where there axe relatively steep
lawns. IVIy suggestion at this time would be to not push the sidewalk through
nn the soud~r side of existing 193` Avenue.
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6. Resteipin~ of existing 193` Avenue
The plan calls for the tcsttiping of existing 193" Avenue beaveen Evans
Strcct and Auburn Street to a 3-lane design with a center left him lane, which
will provide for vehicles waiting to Inakc left turns at intersections or left
nuns into driveways.
E. Project Schedule
Prclinml:uy plans have already been reviewed by MnDOT. ~Y'e have received a
series of general comments and axe making changes to the plans before final
submittal. We are coordinating soil borings nom thatwc have access to the property
which would be a ncccssaly part of the final plan approval. The other item we will
subinit wide the final plans once a determination is made nn dIe Buxandt temporary
casement is Right-of-~~Iay Certificate No. 1 which assures 1~nDOT and the h'edexal
1 Tighma~ administration that the city controls all of the sight-of-way nccessatp to
build the project. ~1e would expect that we will have final approval of the plans and
authorization to bid them contingent upon receipt of the Corps of IJngineexs pernut
fox the wetland issue withui 60 - 90 days. This would allow fox a late stnnlnet bid
with construction beginning in the fall of 2008 and carxvizig nito the 2009
construction season, at which time the improvement would be completed.
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Barbara and David Burandt
19118 Tyler Street NW
Elk River, MN 55330-1928
April 11, 2008
Terry Mauer
Public Works Director
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Dear Mr. Mauer:
David and I are writing to you in order to reach an agreement regarding payment for the temporary
easement onto our land that will result from the construction of the extension of 193rd Avenue.
In talking to you, David and I were under the impression that we would be discussing the monetary
value of the temporary easement sometime this year, in fate winter or spring. On one of the visits you
made to our house last fall, you told us that the City's attorney would be working with the three land
owners that the city would be purchasing land from. You, indicated, however, that you would be
working with David and I to come to an agreement regarding the temporary easement.
We were very surprised when some weeks ago, we received a contract in the mail to be signed and
returned to John Anderson, Engineer. The payment for the temporary easement was "in consideration
of the sum of $1.00, and other good and valuable consideration." We, of course, called Mr. Anderson,
questioning the amount to be paid for the easement. In a follow-up letter we received from Mr.
Anderson, he wrote that "it was our understanding going into this process that your primary goal was to
work with the City staff through the design to insure you were in agreement with the details:' He goes
on to state, "the staff incorporated many of your specific requests into the design of the plans." The
implication in this letter is that we agreed to trade involvement in the planning process for
remuneration for our property. That was never our understanding. As with any activity that involves
more than one party, discussion to seek agreement is a necessary part of the process. But we never
imagined that mutual participation in a project would be considered to be in lieu of monetary payment
for the temporary easement.
The land to be taken for the temporary easement amounts to approximately 0.25 acres for a period of
36 months. The land is zoned "city water and sewer". We expect remuneration that would be
considered by the courts to be "fair" to both the city and the landowner.
We offer you two options for consideration by the city. They are
1. Settlement: $10,000 for a temporary easement for 0.25 acres/36 months;
2. Alternative: Have two land appraisals completed. One by an appraiser who would
represent the city and one by an appraiser who would represent the owner. If you are
interested in this option, we would expect the city to pay for both appraisals and prior to
the appraisals being done; we would expect to agree to the selection of the appraiser who
would conduct the appraisal from the owner's perspective. Based on the results of these
appraisals, a "fair and equitable' settlement would be reached.
We look forward to talking to you in the near future about this issue. Our home number is {763 441-
2537.
Sincerely,
David Burandt
,~
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Barbara Burandt
ver
MEMORANDUM
TO: Mayor and City Council
FROM: Tim Simon, Finance Director
DATE: June 2, 2008
SUBJECT: 193rd Project Financing
The engineer estitnate provided for the '193`j project is y~3.~ million which includes land
acquisition- Sec attached spreadsheet on the breakout of the estimated costs.
The financing fox the 193`d project will be paid from our can cnt and firtttre state-aid
allorincnts and Sr~FETL-.~,-Lli federal fcmds over the nest 4 - 5 pears depending on the final
cost of the land acquisition and construction bid. To finance the upfront consRUClion costs
we received approval for a tt-ansportation revolving loan in the amount of `$2.4 million, at a
interest rate of 1.311 percent repaid over 5-peas, with xepavment fiom our futtue 1ti'funicipal
State-aid allotment On Jwie '16, I will bane the required bond resolutions for the
transportation rewlving loan with the lylinneso[a Public Facilities Authority. "Chc land
acgcusition costs will also be repaid out of the_14SA allotment, but based on the appraisals it
hopefully will be under the X1.2 budgeted amount.
Attachments:
• Approval letter fox the transportation xecolving loan
• Project budget
/ `,.
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April 29, 2008
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The Honorablo f Elk River Khnzmg
Mayor, City
-_ - " 13065 Orono P5 5330 MAY ~ 2 ~~08
Elk River, MN
Dear Mayor Klinzing:
lication for a Minnesota Pub lc ril 29,
ou that the City of Elk River's aP Loan Fund was approved on Ap
I am pleased to inform Y Transportation Revolving
Facilities Authority (Auth4~ 1 500 5-year loan to the City will bare an interest rate of 1.31
2008. The Authority's $2,
percent. a ers
estimate that the Authority'sazlnd wrt~lgthe Crry issuing a general obligation
We conservatively
approximately $113,082 in interest costs Como ect.
bond at current market rates to finance the p J ,
The loan award is contingent ~pQ~ a~~~ent for the projecEwillRbe sengto you shorrtly•0~ bond
and related certifications. Th
uestions about the Authority's financing to the City of Elk River or about the
eneral, please feel free to contact Stephen LaFontaine, your program
If you have any q _
ro ems In g
Authority's p gr - -
representative, at 651/259-7471.
~G
Dan ~L~lroy, Chair
Nfly Public Facilities Authority
Minnesota Public Facilities Authority
1" National Bank Building • 332 Minnesota St., 8nife E200 • Saint Paul, MN 55101-1351 • USA
651-25')-74G9.800-657-3858 • Fax: G51-296-8833 • TFY/I'DD: 651-296.3900
vnvw.positivelyminnesota. cam/Community/assistance/pfa.htm
An equal oppanuniry employer arrd service provider
Minnesota Public Facilities Authority
TRLF Loan Application
PROJECT BUDGET -Form 3
Borrower:
Requested from Otlrer ($): Other ($):
NON-CONSTRUCTION Start Date End Date TRLF ($) Total Cost
_
Prelimina Desi n del,-2a~~ S~~' -1a>~7 =~~~Gi3~
Final Desi n Jvf - ~^~' "1 1 e.;- / u'1' ~-'i ~'~?
A reements&Petmits ~r~,A.~'7 ll~>~-!ca'> /;,;i,?;1
Le al &Financin Related Fees ,. ~z~c7
Nan-Construction Subtotal na na
RIGHT OF WAY ~~.~. ~-y,~-,`~
I~Q~ ~~a f
Fl ~ , 3~
r~ ~~,~
2 S~ ~,
f -- - -
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CONSTRUCTION {~U~.Y_au3`f fi ~~-~~ rL' , - a 1> s' e'r; <? `, u; ~~
Right of Way &Construction Subtotal 2 zv~~r~-~> ~~9-5~r~ri~i~
Contingencies (up to 5% of Right of ___
Wa and Construction Subtotal) _na na
TOTAL na na ~ ~~~ (~ `.~~ ~ ~~`~)
Show the estimated cost or the as-bid costs, if available, for each activity. The allowable limit for contingencies are up to 5% of the Right of Way and
Construction line items.
Start Date and End Date columns. Enter the dates you expect each activity to be started and completed. The repayment of the principal on the PFA
loan is required [o commence within three years after execution of [he loan agreement and interest payments are [o begin no later than one year after [he
execution of the loan agreement. Capitalized interest is considered an eligible loan cost.
Please provide [he estimated or as bid cost, if available, for each activity.
o5-U7