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3.a) and b) 2013-2017 Capital Improvement Program (CIP) Update-Street Maintenance Program and Other Road Projects ��-� \ �, . � � �--� � �� .� � � 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 Page 2 of 2 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. V:\1�3&\ 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 R:\ _ ___ 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