02-12-2014 Council Agenda - Laserfiche WebLink

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Street Improvement with or without Watermain It has been consistently presented by City staff that the improvement of Schletty Drive and the installation of watermain are tied together. This position has been developed through discussions at staff level with both engineering and fire and safety and an interpretation of the City's Watermain Assessment Policy. The policy outlines that watermain should be constructed in conjunction with any street /road improvement. However, it also acknowledges that some watermain projects are not feasible due to a variety of factors including excessive costs relative to property benefits and that the final decision to proceed with watermain projects rests solely with the City Council. It is our opinion that the extension of watermain along Schletty is feasible given the existing water stub already in place at the intersection with Little Canada Road and the anticipated costs. However, the City Council should provide direction on the need to provide water service to Schletty Drive as part of a street improvement and if one should be dependent on the other. Assessments We have already noted the uniqueness of Schletty Drive and that carries into equitably assessing the costs of the project. Reviewing the City's assessment policy and past actions on unique projects in the past we have developed various assessment options that may make sense for Schletty Drive, A comparison of assessment options has been prepared and is attached to this memo. In an attempt to determine more accurate watermain construction costs we did contact a contractor for pricing and modified our watermain costs and associated assessments based on that information. It resulted in a slight increase in the total watermain costs. A description of the street and watermain assessment scenarios moving left to right in the columns of the attached spreadsheet follows: Scenario 1 (Feasibility): The first scenario shown is what was prepared for the feasibility based on applying the capped maximum front foot street assessment rate and the capped watermain assessment rate to the benefiting properties. Properties already served with watermain received a credit for the present value of their previous payment at the time of hookup. Scenario 2: This option would provide for assessment of the street reconstruction utilizing the capped maximum front foot assessment rate as in Scenario 1. However several of the properties fronting Schletty Drive already have water service and sufficient documentation does not exist to assess those properties for the watermain improvement. Their removal from the assessable properties would result in a higher watermain cost to those not served. Staff indicated at the Public Hearing that a more equitable per unit watermain assessment may be to divide the watermain cost between all developable properties fronting Schletty Drive. The City would be responsible for the costs to the properties already served. Scenario 3: There was discussion at the Public Hearing about the possibility of rehabilitating the roadway without removal and replacement of the curb and gutter. This is not possible due to the installation of the watermain, however this scenario revises the street assessment amounts to reflect the amount that would be assessed if this method of improvement were completed. The estimated 10062 Flanders Court NE — Blaine, MN 55449 — (763) 780 -0450 fax (763) 780-0452 Z:PROJ1120572E - 2014 Street & Utility Improvements \0030 \Memo- 020714 -CC (Schletty Improvement Direction).doc