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6.3. SR 01-13-2003 Howard R, Green Company January 6, 2003 File: 818860J-0030 Item 6.3. Honorable Mayor and City Council City of Elk River 13065 Orono Parkway Elk River, 55330 RE: BOSTON STREET AND CONCORD STREET IMPROVEMENTS FEASIBILITY STUDY Dear Council Members: Attached is a copy of the feasibility study for the Boston Street and Concord Street Utility and Street Improvements. This feasibility study was authorized by the City Council on November 12, 2002. As you are aware, last fall we received a petition from residents on Boston Street asking for City sanitary sewer and water improvements. We expanded the area to also include Concord Street and on October 22, 2002, held an informational meeting with residents of both streets. The majodty of those in attendance were interested in pursuing further the possible extension of City sanitary sewer and water. Therefore, the City Council authorized the preparation of this report. The feasibility study indicates that there are 21 assessable properties and a total cost to be assessed of $367,500 for an assessment rate of $17,500 per parcel for sanitary sewer, water, and restoration improvements. The report proposes that the City contribute $92,000 in addition for the upgrading of existing streets to an urban standard including concrete curb and gutter. It is recommend that this $92,000 come from the City Street Reserve fund. Attached is a resolution receiving a feasibility study and ordering a public hearing on the improvements to be held on Monday, February 10, 2003. We would recommend adoption of the attached resolution. If you have any questions regarding this issue, I will be in attendance at your January 13, 2003 City Council Meeting. Sincerely, Howard R. Green Company -l-e~ j~.~~ TJM:sw Enclosures Ltr-010603-Council 1326 Energy Park Drive · St. Paul, MN 55108 · 651/644-4389 fax 651/644-9446 toll free 888/368-4389 RESOLUTION 03- 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 BOSTON STREET AND CONCORD STREET UTILITY AND STREET IMPROVEMENT OF 2003 WHEREAS the Feasibility Report ordered by the Council in Resolution 02-103 has been prepared with reference to the Boston Street and Concord Street Utility and Street improvement and was received by the City on January 13, 2003; 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: The City Council will consider the Boston Street and Concord Street 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 $459,000. A public hearing shall be held before the City Council on the proposed improvement on the 10t' day of February, 2003, at 6:30 o'clock p.m. at the 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. Passed and adopted this 13th day of January, 2003. ATTEST: Stephanie A. Klinzing, Mayor Sandra A. Peine, City Clerk o./gen./form/resolution/A-8 Project No.818860J-0030 FEASIBILITY STUDY FOR BOSTON STREET AND CONCORD STREET UTILITY AND STREET IMPROVEMENTS ELK RIVER MINNESOTA JANUARY 2003 CERTIFICATION PAGE 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. Terry J. Ma~r~,~J~.E. Lic. No. 15316 Date Prepared by: Kdstina Thompson, E.I.T. Januaw 6,2003 Dam Howard R. Green Company 1326 Enemy Pa~ Ddve St. Paul, MN 55108 Phone: 651-644-4389 Fax: 651-644-9446 Toll-Fme: 1-888-368-4389 TABLE OF CONTENTS I. INTRODUCTION ............................................................................................................. 1 II. PROJECT SCOPE .......................................................................................................... 1 III. NECESSITY AND COST-EFFECTIVENESS ...................................................................2 IV. EXISTING CONDITIONS ................................................................................................ 2 V. PROPOSED IMPROVEMENTS ...................................................................................... 3 VI. RIGHT-OF-WAY, EASEMENTS AND PERMITS ............................................................. 4 VII. ESTIMATED PROJECT COST ........................................................................................ 4 VIII. FINANCING ..................................................................................................................... 5 IX. ASSESSMENTS ............................................................................................................. 5 X. PROJECT SCHEDULE ................................................................................................... 6 XI. SUMMARY AND RECOMMENDATIONS ........................................................................7 APPENDIX A INFORMATIONAL MEETING MINUTES AND SIGN IN SHEET APPENDIX B ASSESSMENT AMORTIZATION APPENDIX C EXHIBIT 1 - LOCATION MAP EXHIBIT 2 - TYPICAL SECTION EXHIBIT 3 - PROPOSED IMPROVEMENT EXHIBIT 4 - PROPERTIES TO BE ASSESSED iii I. INTRODUCTION In early Fall 2002, the Elk River City Council authorized Howard R. Green Company to hold an informational meeting with residents who live adjacent to Boston Street and Concord Street between Mississippi Road and Orono Road, as shown on Exhibit 1. The meeting determined interest in extending public utilities, including sanitary sewer and watermain to serve the area, along with reconstruction of the roadway to an urban style street. City Council direction was in response to a petition signed by the majority of the residents on Boston Street requesting the extension of sanitary sewer and water. The City Council included Concord Street in this study because it would be the last block not served by public utilities in this area. A neighborhood informational meeting was held on October 22, 2002. Information was provided to those in attendance regarding the concept for extension of utilities and reconstruction of the roadway. Those in attendance were asked to indicate their preference for proceeding with the feasibility study. A majority of those present on both streets were in favor of proceeding. Minutes of the informational meeting and the sign in sheet are provided in Appendix A. On November 12, 2002, the Elk River City Council adopted Resolution 02-103 authorizing Howard R. Green Company to prepare a Feasibility Study for the Boston Street and Concord Street Utility and Street Improvement Project in the City of Elk River. II. PROJECT SCOPE This study will discuss the existing conditions, proposed improvements, estimated construction costs, and overhead costs, which include city administration, engineering, fiscal, and legal expenses. The City's Assessment Manual and past practices will be used as guidelines to discuss financing methods for the proposed improvements. III. NECESSITY AND COST-EFFECTIVENESS The improvements proposed in this study are necessary for a number of reasons. The proposed sanitary sewer improvements will replace on-site septic systems on relatively small lots. The proposed watermain improvements will connect to the City's existing system at multiple locations providing an added benefit of a looped system. The proposed improvements will be developed into a project large enough to ensure a competitive bidding process. Therefore, the proposed improvements will be cost- effective. Based on the information contained within this report, the proposed improvements are necessary, cost-effective, and feasible from an engineering standpoint. IV. EXISTING CONDITIONS Utilities At present, Boston Street and Concord Street, between Mississippi Road and Orono Road, are the only streets in the surrounding area without City sanitary sewer and water. Eight-inch PVC sanitary sewer and 16-inch DIP watermain were extended along Orono Road in 1991 as part of the Western Area Phase 1 Project. Properties along Boston Street and Concord Street that also abut Orono Road had sanitary sewer and water services extended to their property line as part of that project. However, it appears that the property located at 12926 Orono Road only had a watermain service extended to the property line, with the sanitary sewer service planned for the time when utilities were extended on Boston Street. 12-inch DIP watermain was extended along Mississippi Road outside of the roadway in 1993 as part of the Mississippi Oaks 1st Addition. Street The existing roadway for both streets consists of a 24-foot asphalt rural section road. There is currently no storm sewer on either road, with drainage directed to roadside ditches. Existinq Private Utilities Private utilities which have facilities in or near the project area will be notified of the proposed construction and requested to incorporate repairs and replacements with the project as needed at their cost. Private utilities include Qwest Communications, Elk River Municipal Utilities, Charter Communications, North Star Access, Sherburne Telesystems, and Minnegasco. V. PROPOSED IMPROVEMENTS Utilities This report proposes that 8-inch PVC sanitary sewer pipe be extended along both Boston Street and Concord Street. As shown on Exhibit 2, sanitary sewer would be extended south to Mississippi Road from the existing 8-inch sanitary sewer stubs that were provided during the Western Area Phase 1 Project. From that point it would be further extended in the boulevard along Mississippi Road to the east and west to provide utility service to properties that front on Mississippi Road. A 4-inch service would be extended to the property line of each home. Exhibit 2 shows the proposed 8-inch DIP watermain extended on both Concord Street and Boston Street. Extending the watermain in this manner would provide a looped system with connections to the 12-inch water main on Mississippi Road and to the 16- inch water main on Orono Road. Fire hydrants will also be installed in strategic locations that will provide for improved fire protection to the area. A 1-inch copper service would be extended to the property line of each home. Street Both streets are within the City's urban service district and therefore are proposed to be constructed to an urban standard. The City Council adopted a standard urban typical section as part of the Pavement Rehabilitation Report in October 2002. It consists of a 32-foot wide roadway with concrete curb and gutter, as shown on Exhibit 2. 3 The zoning of the property adjacent to Boston Street and Concord Street is Rlb, single family residential. Storm Drainage The construction of an urban style street section will allow for the removal of the existing roadside drainage ditches and will necessitate the extension of storm sewer mains. Extending the existing storm sewer system that runs along Orono Road to the south with minimal sized pipes and constructing inlets at appropriate locations on both streets would provide adequate drainage to this area. VI. RIGHT-OF-WAY, EASEMENTS, AND PERMITS Right-of Way and Easements Temporary construction easements may be required throughout the project area to accommodate matching of driveways and finished grading of front yard areas. Verbal permission will be secured from private property owners during the construction process should work need to be completed on private property, outside of obtained rights-of-way. Permi~ Several permits will be required prior to construction of the proposed improvements. Required permits include, but are not limited to, the following: · Minnesota Pollution Control Agency · Minnesota Department of Health · Minnesota Pollution Control Agency · Sherburne County Sanitary Sewer Watermain Grading Right-of-Way VII. ESTIMATED PROJECT COST The estimated construction costs and associated overhead costs for the proposed improvements are summarized in Table 1 below. In accordance with the City's 4 assessment manual, the overhead costs have been estimated at 28% of the total construction cost. The overhead cost includes City administration, engineering design, construction staking and inspection, and fiscal and legal costs. Table 1 Project Cost Estimate Sanitary SewerNVater/Restoration Upgrade to Urban Street Section with Storm Sewer Total Construction Cost Administration, Engineering, Fiscal, & Legal Contingency (5%) Total Project Cost $276,5OO $ 68,5oo $345,000 $ 97,000 $ 17,500 $459,500 VIII. FINANCING Financing methods for the proposed improvements on Boston Street and Concord Street are based on the City's Assessment Manual and past practices. They will include proposed assessments for sanitary sewer, water and restoration improvements to those properties abutting Boston Street, Concord Street and Mississippi Road that have not been previously assessed. As has been the City's past practice when City utilities are extended into a neighborhood, the reconstructed streets on Boston Street and Concord Street are proposed to be built to the City Urban Standard, including concrete curb and gutter and storm sewer. The cost of the street reconstruction beyond restoration of the existing section is proposed to be funded by the City as has been the policy established in other similar projects. It is recommended the City Street Reserve Fund be used for this portion of the financing. The amount is estimated to be $92,000. IX. ASSESSMENTS As stated previously, it is proposed to assess the cost of the sanitary sewer, water and restoration improvements to those properties on Boston Street, Concord Street and Mississippi Road not previously assessed for City utility service. The portion of the project cost to be assessed is estimated at $367,500. As shown on Exhibit 4, three of the four corner properties on Boston Street and Concord Street at Orono Road have previously been assessed for sanitary sewer and water service. Also, on Boston Street there are three houses each located on two lots. The Gilles property (75-468-0140) has had the two lots combined into one tax parcel and therefore will only be assessed one unit. The Larson property (75-468-0120 and 75- 468-0130) and the Demarre property (75-468-0215 and 75-4687-0220) have not had their lots combined. They are legally two separate parcels. As has been the City's policy, if the Larsons and Demarres each combine their two lots into one tax parcel prior to the assessment hearing, they will only be assessed one unit. Assuming the Larsons and Demarrres combine their properties, the total number of assessable units would be 21. Dividing this number of units into the assessable cost, the assessment rate per parcel would be $17,500. Assuming this amount is assessed over a 15-year period at 6.0% interest, an example of an assessment amortization schedule is provided in Appendix B. Other options to lessen the initial burden on homeowners would be a 20oyear period or an increasing annual payment. X. PROJECT SCHEDULE Feasibility to City Council Public Hearing Plans and Specifications Ordered Prepare plans and Specifications Walk Through with Residents Plans and Specifications Approved by City Council Advertise for Bid Assessment Hearing Bid Awarded Begin Construction Construction Substantially Complete First Assessment Payment with Real Estate Taxes Place Final Bituminous Lift Final Project with Contractor January 13, 2003 February 10, 2003 February 10, 2003 30 -60 days Spring 2003 Spring 2003 30 days April 2003 May 2003 May/June 2003 Fall 2003 May 2004 June 2004 June 2004 Assumes no objections to assessment are received at the assessment hearing. If objections are received, a 30-day period is necessary prior to award of the contract to allow objecting property owners to act on their assessment appeal. Xl. SUMMARY AND RECOMMENDATIONS This project is feasible from an engineering standpoint. It is necessary and cost-effective for a number of reasons. Extending the sanitary sewer down Concord Street and Boston Street will replace on-site septic systems on relatively small lots. The watermain improvements will connect to the existing water system at multiple locations thus providing the benefit of a looped system. Updating the street to an urban roadway with concrete curb and gutter will promote adequate storm drainage and bring these streets up to city standards. The proposed improvements will be developed into a project large enough to ensure a competitive bidding process. Therefore, the proposed improvements will be cost-effective. It is recommended the City accept this feasibility report as presented herein for the improvements as recommended and adopt the proposed schedule calling for a Public Hearing on February 10, 2003. 7 APPENDIX A INFORMATIONAL MEETING MINUTES AND SIGN IN SHEET Informational Meeting Minutes Boston Street & Concord Street October 22, 2002 - 6:00 P.M. Kristie Thompson from Howard R. Green welcomed those present to the neighborhood meeting regarding the proposed reconstruction and addition of utilities for Boston Street and Concord Street from Mississippi Road to Orono Road. (See sign in sheet for those in attendance.) Kristie explained that the purpose of the informational meeting was to gauge neighborhood interest in completing a feasibility study that would determine how the streets would be reconstructed and utilities extended. The feasibility study would also allow the City to determine costs associated with the improvements and how they would be assessed to property owners. It was explained that the majority of residents along Boston Street had signed a petition in favor of the feasibility study and that Council had directed staff to determine interest from residents along Concord Street since that was the last remaining street in the area that was not served with public utilities. It was explained that expressing interest in a feasibility study was not an automatic vote for the improvements but that the issue would be revisited once the study was complete. At this point, Kristie reviewed a general concept for how utilities would be extended and what the typical road section would consist of. A resident stated concern with transitioning to their driveway if barrier curb and gutter was added, which may require lowering the street grade. Kristie explained that the issue would be addressed if the project proceeded to design. The road would most likely require lowering so that yards drained to the street and proposed storm sewer. It was explained that if the project moves forward the issue would be looked at and a profile that resulted in the least impacts to driveway grades would be created. At this point several residents voiced their concern with installation of barrier curb and gutter. Residents wondered if removing the curb and gutter from the project would result in a lower assessment. It was stated that removing the curb and gutter would lower the construction amount but it would not be substantial compared to the overall cost. Residents still expressed interest in this option and Kristie asked those interested to note their opinion on the sign-in sheet. Concem was expressed by residents that concrete sidewalk would be installed. The residents were not in favor of including the sidewalk in the project. It was explained that at this time no sidewalk construction was proposed. A question was asked if the utilities could be extended within the boulevard area to avoid the cost of reconstructing the roadway. It was noted that the overall disruption would be relatively the same. Additional restoration of front yards would be necessary and the road would need to be removed where services were extended to residents across the street from the utilities. It was noted that the overall cost in trying to save sections of roadway would end up approximately the same as if the entire roadway were removed. A resident expressed concern that private utilities would be in the way of the improvements. Kristie noted that the private utilities were installed within the City's right-of-way and would be required to move at their own cost if a conflict were to arise with the City's improvements. It was stated that at this point the City was looking at assessing residents for the improvements on a per unit basis. The question was asked if a resident already had public sewer and water because their property was also adjacent to Orono Road if they would be assessed for the installation of utilities. Kristie stated that if the project progressed to the feasibility study, the City would look at assessing all residents for the street improvements and possibly assessing only those currently without utilities for the extension of the sanitary sewer and watermain. It was also stated that there would be additional costs associated with the project. These included a sewer and water hook-up fee, the cost of running services from the road right-of-way to the home, abandoning the septic system and well, and a monthly charge for usage. Kristie noted that if the project were completed, residents would have two years from the time the utilities were available to hook-up or the City would automatically charge the property owner the hook-up fees and start charging a monthly user fee. Residents along Mississippi Road asked if it would be possible to extend utilities to serve their property in conjunction with the project. Kristie noted that this could be included in the feasibility study if enough interest was expressed. Kristie asked for a consensus of those present regarding their interest in this project. Those present indicated their general acceptance of proceeding to the feasibility stage of the project. They were asked to indicate their interest on the sign-in sheet. A map noting the responses is attached. Kristie stated this information would be provided to the City Council at an upcoming meeting. If it was determined by Council that a feasibility study would be undertaken, notice would be provided to the residents. The Kristie thanked those present for taking the time to discuss this project with staff. The meeting was adjourned. ~oward R. Green Company PRO,TECT NAME: OWNER: bATE OF MEETZN6: ]:nformational Meeting. Boston Street / Concord Street, Street and Utility ]:mprovements City of Elk River 6:00 p.m., Wednesday October 16th, 2002 Name (Print) Mailin~l_AddresslZiP Phone No. , . ' . , '~uck~tl q~I f/eose Lo~/r ~4 1'5~ i)- $1.,-i~ '~ 5ee~..~-t ~,~J,,/5 O:XPROJX818860j\0030\signin.doc APPENDIX B ASSESSMENT AMORTIZATION Project: Project No: Parcel: Owner: ASSESSMENT SCHEDULE Constant Annual Payment Method Boston Street and Concord Street Utility and Street Improvements 818860J Lot: Block: Addition: Example Assessment Interest Start Date: 1-Dec-03 Repayment Period: 15 yrs Interest Rate: 6.00% Assessments: Quantity Utility Improvements 1 Unit Measure LS Unit Price 17,500.00 Amount 17,500.00 YEAR SCHEDULED PRINCIPAL INTEREST PRINCIPAL PAYMENT PAYMENT PAYMENT REMAINING 0 3 $ 45 5 $ 65 75 85 95 10 $ 11 $ 12 $ 13 $ 14 $ 15 $ 1,891.03 $ 751.85 1,801.85 $ 796.96 1,801.85 $ 844.78 1,801.85 $ 895.46 1,801.85 $ 949.19 1,801.85 $ 1,006.14 1,801.85 $ 1,066.51 1,801.85 $ 1,130.50 1,801.85 $ 1,198.33 1,801.85 $ 1,270.23 1,801.85 $ 1,346.45 1,801.85 $ 1,427.23 1,801.85 $ 1,512.87 1,801.85 $ 1,603.64 1,801.85 $ 1,699.86 $ $ 1,139.18 $ 1,004.89 $ 957.07 $ 906.38 $ 852.66 $ 795.71 $ 735.34 $ 671.35 $ 603.52 $ 531.62 $ 455.40 $ 374.62 $ 288.98 $ 198.21 $ 101.99 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 17,500.00 16,748.15 15,951.19 15,106.42 14,210.95 13,261.76 12,255.62 11,189.11 10,058.60 8,860.27 7,590.04 6,243.59 4,816.36 3,303.50 1,699.86 0.00 27,116.90 Total Scheduled Payment Page 1 APPENDIX C EXHIBITS CONCORD STREET/BOSTON STREET ORONO ~ LAKE PARK ORONO COUNTY FAIR GROUNDS ROI SOFTBALL PARK LAKE CITY HALL ORONO ORONO PARKWAY PARK 1 183RD ST, I 181ST LANE 183RD AVENUE 182ND AVENL PROJECT RIVERVIEW DRIVE DESIGNED BY: GWR DRAWN BY: TAE APPROVED By:JM JOB NUMBER 250105M CAD DA'II:: Auqust 6 2002 CAD FILE: O:~CAD~250105M~EXHIBITI.dwq 1526 ENERGY PARK DRIVE ST. PAUL, MINNESOTA 55108 (651) 64-4-4589 ~ R. Green Company CONSULTING ENGINEERS CONCORD STREET/BOSTON PROJECT AREA LEGEND __, - ,-- PROPOSED ....... PROPOSED ..... PROPOSED STREET 8" SANITARY SEWER 8" WATERMAIN STORM SEWER DESIGNED By: GWR DRAWN BY: TAE JOB NUMBER 2.30105 C(~NECT TO WA'IF. RMAIN EXISllNG 1526 ENERGY PARK DRIVE: ST. PAUL, MINNESOTA (651) 644-¢589 CONNECT TO __ :XlSTING WA"IE~MAIN / / PROPOE~..D IMPROVEMENTS EXHIBIT 2 CONCORD STREET/BOSTON STREET IPROPOSED 14' 60' 52' FACE TO FACE 16' 14' ~ F----1.5' 1.5~-~-I  -B618 CONCRETE ;URB & ~U~TER ~--~1 ~/ ~ 2.00~ ~2' ~ SO~ T~C ~OATI'5"K2~50~E MV~ ~ARING COURSE MIX.RE ~ 2' 2350 TYPE LV3 NONWEARING COURSE MIXTURE --6' CLASS 5 AGGREGATE BASE PROPOSED R'W PERMANENT URBAN STREET RESIDENTAL STREET SECTION DESIGNED BY: KT DRAWN BY: LLARSON APPROVED BY:KT JO~ NUMBER 230105M CAD DALE: Auqust 6 2002 CAD FILE: O:\CAD'~230105M\EXHIBITI.dwq 1526 ENERGY PARK DRIVE ST. PAUL, MINNESOTA 5510a I (651) 644--~ Hovva . Green C party CONSULTING ENGINEERS CONCORD STREET/BOSTON STREET PROJECT AREA ASSESSABLE UNITS (21) PREVIOUSLY ASSESSED UNITS (3) jHovvard R Green Company