3.a) and b) 2013-2017 Capital Improvement Program (CIP) Update-Street Maintenance Program and Other Road Projects ��-�
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SC1��l�TI�IA
Memo •
To: Mayor and City Council
From: Anne Hurlburt,City Administrator
Date: June 15,2012 for Special Meeting of June 18,2012
Re: (CIP)Update for 2013 through 2017
Street Maintenance Program and Other Road Projects
On June 18,the Council will hold the second of two scheduled wark sessions to discuss the annual
Capital Improvements Plan(CIl')update. These meetings will provide input to the draft CIP and
budget that will be prepared in June and July and presented to the Council for its first 2013 budget
workshop scheduled for July 31. This meeting will focus on the street maintenance program and the
other road projects in the CIl',with specific discussion of options for Melanie Trail.
Street Maintenance Program(CIP Project PW-001)
This project encompasses all of the city's contractual street maintenance activities and is currently
funded at$300,000 per year from the city's General Fund(tax levy dollars.) All activities related to
implementing the 2008 Pa�ement Management Plan(such as seal coating and crack filling projects)
plus"routine"contractual maintenance work(such as dust control, striping,tree removal and small
patching jobs)are part of this annual budget.
The Pavement Management Plan anticipated that an annual budget of over$600,000 per year would
be needed to fully fund the strategies laid out in the plan to m�imize the life of existing pavements.
Generally, streets with a PASER(condition)rating of 7 or higher would receive patching,crack fill,
and seal coat treatments. Streets rated 5 to 6 would receive a mill and overlay. Streets rated 3 to 4
would be schedule for full-depth reclamation and paving. The most cost-effective option for streets
rated 1 to 2 would be complete reconstruction.
Since the plan was prepared,the city has not fully funded its recommendations. Assessing at least part
of the costs(a minunum of 20%) far reclamation and paving or complete reconstruction would be
required in order to utilize debt financing. Other options, such as turning some paved roadways back
to gravel,have recently been discussed.
Melanie Trail was rated 1 to 2 on the PASER system. This year staffrecommended that part of the
street could potentially be returned to gravel, similar to what was done with 237�'street in 2011.
Before making a decision on how to address the condition of Melanie,the Council decided to invite
6/15/2012
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the residents to a meeting to discuss the various options. A letter was sent and residents are expected
to attend the June 18 meeting.
Attached is a summary of the options that staff will present at the meeting. The five options range
from full reconstruction to"do nothing." A new option not previously discussed is to apply a thin
overlay and hand patching. This could extend the life of the road by about 5 years,so should be
considered a temporary solution that could delay the need for reconstruction.
If, after discussion the Council selects a preferred approach it would be logical to also adopt the same
strategy for other streets in a similar condition. Any direction the Council would give should be used
to develop a written pavement management policy. It should also be used to update the Pavement
Management plan,which has not been updated since 2008. T'his can be done at a reasonable cost if
staff is trained to update the ratings.
As additional input to this discussion, staffhas attached cost estimates for reclaiming and replacing a11
bituminous roads rated 1 to 2 and 3 to 4,which was initially provided to the Council in March and
updated for the June 18 meeting. An estimate of the impacts of debt financing,which was prepared
for the April 10,2012 Council work session,is also attached.
Other Road Projects in CIP
There are two other road projects in the CIP that the Council has not yet discussed in 2012:
• Street Paving(Project PW-001, $1,775,000}—this project would complete the paving of most of
the remaining gravel roadways in the city. The plan currently shows that work on this project
would start in 2013 (engineering&easement acquisirion)with construction completed in 2014.
Financing would be through debt to be repaid by a combination of assessment and tax levy.
• Ozark Ave. Extension(Project PW-003, $333,333�this project would complete a new road
segment envisioned by the Comprehensive Plan. The plan currently shows this project in 2014. It
is unlikely that construcrion would occur before the abutting land is developed and right-of-way
dedicated.
The Council should discuss whether the timing of these two projects should be changed in when the
CIP is updated this year.
Attachments:
• Melanie Trail Options,June 18,2012
• Cost Estimates,Reclaim and Replace Bituminous Roads Rates 1 to 2 and 3 to 4
• Impact of Debt Financing,April 10 Council Work Session
CITY OF SCANDIA
Melanie Trail Improvements Informational Meeting
Summary of Options to Consider
June 18, 2012
The pavement surface on Melanie Trail No. is generally in poor condition. For
discussion purposes, the City has identified several possible options for
addressing the poor surface conditions. Information on five possible options is
presented below.
Full Reconstruction
• This option would include removing the existing bituminous, excavating
into the subgrade, and providing a new aggregate base and paved
surface.
• Based on an estimated cost of$140/LF, a Full Reconstruction Project
Cost would be approximately $784,000
• Project costs would come from a combination of assessments and city
participation. If assessed at the minimum of 20% of the project cost, the
assessment would be approximately $5,060 per assessable residential
unit (plus accumulated interest).
Reclaim and Replace Bituminous
• This option would include grinding the existing bituminous into a granular
material, shaping the material and placing a new bituminous surFace over
the material.
• Based on a cost estimate of$75.00/LF, a Reclaim and Replace
Bituminous Project Cost would be approximately $420,000
• Project costs would come from a combination of assessments and city
participation. If assessed at the minimum of 20% of the project cost, the
assessment would be approximately $2,710 per assessable residential
unit (plus accumulated interest).
Thin Overlav and Hand Patch
• This option would include having the city maintenance staff completed
hand patching, minor ditch (drainage) improvements, and providing a thin
bituminous overlay in the most deteriorated portion of the road. The far
north and south ends of the road would not receive an overlay. This
option would be completed by the city maintenance department.
• A thin overlay and patch project would have an approximate cost of
$47,000
• Project costs would likely be 100% city maintenance funds.
Turn Roadwav back to Gravel
• This option would remove the existing bituminous surface, add a minimal
amount of Class 5 material and grade the entire street.
• Turning the road back to gravel would have a Construction Cost of
approximately $37,800
• Project costs would likely be 100% city maintenance funds.
Do Nothinq
• This option would leave the existing road as is.
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Reclaim and Replace Bituminous
Roads Rated 1-2
Scandia -)une 2012
Total $75 per $140 per
Street Len th Width Foot Foot Cost
Quinell Ave. N(East of Hwy 95) 4000 24 3400 400 $311,000.00
ZZHtI1 StCe2t N(Lofton to Meadow) 4000 24 3600 400 $326,000.00
Melanie Trail N 5600 24 5600 $420,000.00
237th Street N (west ot o�dfe�d) 2300 22 1900 400 $198,500.00
Novak Ave N 500 22 500 $37,500.00
236th Street N (west ot o�dtie�d) 2900 22 2900 $217,500.00
Kirk Ave N��o�m or zsocn� 3200 22 3200 400 $296,000.00
OfV11eII Ct(south of Hay Lake) 12�� 22 12�� �90,�0�.0�
Feet 23700 $1,896,500.00
Miles 4.5
Reclaim and Replace Bituminous
Roads Rated 3-4
Scandia -7une 2012
Total $75 per $1450 per
Street Len th Width Foot Foot Cost
230th Street N 3200 24 3000 200 $253,000.00
238th Street N 3300 24 3000 300 $267,000.00
Oakhill Road N 12700 24 12700 $952,500.00
Oldfield Ave N 5200 24 5200 $390,000.00
Oren Road N 4800 22 4400 400 $386,000.00
209th Street N 800 22 800 $60,000.00
Old Marine Trail N 5900 24 5500 400 $468,500.00
199th Street N 5300 22 5100 200 $410,500.00
Oxboro Ave N 7450 22 7150 300 $578,250.00
Orwell Ave N 2970 24 2970 $222,750.00
Feet 51620 $3,988,500.00
Miles 9.8
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Impact of Debt Financing
April 10, 2012 Council Work Session
Current Debt
Year Tax Levies Required
2012 $351,558
2013 $341,406
2014 $330,853
2015 $319,862
2016 $153,170
2017 $115,450
2018 0
Example of New Debt Issue
Construction Cost: $1,500,000
Total Cost: $1,580,000
Assumptions: 2012, 10-yr issue,2.5692%net rate, 209�o assessed for 10 yrs at 4.509�0
rax
Copacity Annual Tax/mpact,Home Market Va/ue
Annual Tax Levy Rate
Year Required Increase $100,000 $150,000 $200,000
2013 $130,000 2.32�0 23.21 34.82 46.43
2014 $140,000 2.48% 24.75 37.13 49.50
2015 $145,000 2.54% 25.38 38.07 50.76
2016 $145,000 2.51% 25.13 37.70 50.26
2017 $147,000 2.52�0 25.23 37.84 50.45
2018 $150,000 2.55% 25.49 38.23 50.97
2019 $150,000 2.529�0 25.23 37.85 50.47
2020 $150,000 2.50`Yo 24.98 37.47 49.97
2021 $150,000 2.47% 24.74 37.10 49.47
2022 $150,000 2.45% 24.49 36.74 48.98
2023 $0 0% 0 0 0
Average Annual: $24.86 $37.30 $49.73
Average Monthly: $2.07 $3.11 $4.14
Source: Northland Securities,3/28/12