08/05/1997 - City Council SpecialAGENDA
SPECIAL CITY COUNCIL MEETING
Tuesday
August 5,1997
5:00 p.m.
Municipal Center Lunchroom
I. ROLL CALL & ADOPTION OF AGENDA
II. VISITORS TO BE HEARD
III. VOLUNTEER FIRE RELIEF ASSOCIATION PENSION
IV. PROJECT 689 — HAYES/DELOSH STORM SEWER — FINAL
ASSESSMENT ROLL
V. PROJECT 717R -- OPTIONS FOR IMPROVEMENTS TO
RANIER LANE
VI. OTHER BUSINESS
VII. ADJOURNMENT
rh
-
-- city of eagan
TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: AUGUST 1., 1997
SUBJECT: SPECIAL CITY COUNCIL 1VIEETING/AUGUST 5,1997
A Special City Council meeting was scheduled for Tuesday, August 5, 1997 at 5:00 p.m, in
the lunchroom of the Municipal Center building to discuss three (3) items, including: 1)
Volunteer Fire Relief Association Pension; 2) Hayes Addition; and 3) Options for
Considering Improvements to Ranier Lane.
Volunteer Fire Relief Association Pension
The City Administrator and Director of Finance met with representatives of the Relief
Association on numerous occasions since the May 15 Special City Council meeting. At that
meeting, the City Council directed staff, along with the Relief Association, to discuss the
concept of changing the retirement plan for Fire volunteers from a defined benefit plan to a
defined contribution plan.
Enclosed on pages 3 through _JA_ is a copy of a memo prepared by the City
Administrator that provides a summary of the meetings and issues that staff and the Relief
Association have discussed during the past 60 days.
DIRECTION TO BE CONSIDERED: To provide the Relief Association with direction
regarding a change -over from a defined benefit plan to a defined contribution plan.
The Public Works Director would like to review with the City Council the proposed
assessable area for the storm sewer improvements to the ravine through the Hayes and
Delosh Additions. The original project that was approved at the public hearing proposed to
spread these costs on an area -wide basis. The assessable area, in addition to including the
Hayes and Delosh additions, extends into the Valley View Plateau and Post Additions.
While a preproject appraisal supports the majority of the proposed assessments, the staff
would like to receive Council feedback regarding the proposed assessment amount and
extent of assessable area in relationship to pending future public improvements.
II
Enclosed on pages through is a memo prepared by the Public Works
Director providing a summary of the issues for council consideration.
DIRECTION TO BE CONSIDERED: Provide some guidelines to staff in preparing the
final assessment roll for Project 689 - Hayes/Delosh Storm Sewer.
At the May 6' Council meeting, the City Council canceled Project 717 after a feasibility
report estimated the costs at $14,000 - $17,000 per lot to upgrade the street to City standards
with concrete curb and gutter, bituminous surfacing and storm sewer. However, several
residents were still insistent that something be done with the current gravel road conditions
on Rainer Lane. Subsequently, the Council directed staff to look at alternative
improvements other than the City standard. The Engineering Division has prepared a report
of these options, enclosed on pages through , that should help the Council in
JI
providing direction to the City staff as to what type of public improvement should be
considered for either Rainer Lane only or the entire Country Home Heights.
DIRECTION TO BE CONSIDERED: To select a street improvement standard to be
considered for either Rainer Lane only or the entire Country Home Heights subdivision so
that a formal public improvement process can be initiated.
!S! Thomas L. Hedges
City Administrator
2
city of eagan
TO: Honorable Mayor and City Councilmembers
FROM: City Administrator Hedges
DATE: July 30,1997
SUBJECT: Volunteer Fire Relief Association Pension
MEMO
At a Special City Council Meeting held on May 15,1997, the City Council was
presented information regarding a potential switch of the retirement plan for the
volunteers from a defined benefit plan to a defined contribution plan. Certain
advantages and disadvantages of both plans were discussed. As a result of that
discussion which included members of the Relief Association, the consensus
was that the City should proceed ahead with the concept and engage the
appropriate technical support to evaluate all aspects of a conversion. Concern
was expressed about the potential cost of the conversion to the new plan and
what might happen to future obligations of the City.
Since that meeting, the City Administrator and Director of Finance have
continued to meet with the representatives of the Relief Association for the
purpose of gaining a better understanding of the workings of the new plan and to
formulate the public policy issues for consideration by the City Council. The most
recent meeting was held on July 22,1997, at which time it was determined that
an appropriate understanding had been reached and that significant issues were
ready for Council consideration. Again, it is important that periodic approval or
consideration be given by the Council before the process gets ahead of the
policy issues.
After the interested parties decide that the concept of switching plans is
acceptable, there are basically two (2) parts around which the balance of the
discussion revolves. The first is what does it cost in up front money to make the
conversion and second what are the annual costs of the new plan as compared
to the costs of continuing with the old plan_ The Relief Association
representatives in working with their consultants, Symmetric Investments, Inc,
have presented a plan, which requires no up front contribution by the City. The
concept has not been reviewed by legal counsel so it may or may not be able to
be implemented exactly as presented. Any conversion without an upfront cost is
certainly more attractive.
The second part is what the appropriate level of annual contribution should be.
There is the issue of the equitable relationship between two very different plans.
3
The underling assumption is that the individual firefighters must have a very high
potential to do as well with their pension on the new plan as they would do under
the old plan. In fact it can be argued that the potential needs to be there to do
better under the new plan or it is not worth while for them to assume the risk by
giving up the certainty of a defined benefit.
To make the desired comparisons it is therefore necessary to agree upon a
starting point with the defined benefit plan. Since the most recent three year
agreement with the Relief Association ended on December 31,1996, there is an
expectation that an increase to the defined benefit plan is in order. That is
where certain issues arise because a starting point for consideration of
conversion is not identified. The agreement, which ended in December, was at
a yearly benefit level of $4000 because that was the maximum allowed by State
law. The plan was actually being funded for and monthly benefits were available
at an amount equivalent to a $4200 lump sum level. The Relief Association
representatives feel that the appropriate starting balance for conversion
discussions is $5250 per year of service because that is the number that was in
their most recent request in advance of the State law being changed. That level
makes the funding requirements equivalent without consideration for what
happens to potential benefits. The presentation was actually made as part of the
1997 General Fund budget preparation. When the proposal was made the City
Council authorized the Relief Association to seek special legislation to raise the
State limit. The actual amount that would be considered or approved by the City
Council was not an issue and not specifically addressed because the State law
did not allow any increase to the lump sum pension amount. The recent
legislative session changed the State cap to $5500 per year of service effective
January 1, 1998.
The recently completed actuarial valuation dated January 1, 1996 shows an
annual cost of $365,000 for a defined benefit plan pension of $5250 per year of
service. Based on that potential or assumed City obligation, although not
formally approved by the Council, the firefighters are suggesting that an annual
City contribution of $3650 per year per firefighter is appropriate because there
are approximately 100 firefighters. The same actuarial valuation shows an
annual cost of the plan being funded at $4200 per year of service of $240,000.
The approved 1997 Fire Department budget includes $128,800 for the pension
obligation with another $39,500 having been moved to the contingency account.
Due to the fact that there was no statutory authority to pay more than $4000 per
year of service and no agreement with the Relief Association covering 1997 the
budgeting process was quite undefined. The 1997 budget assumed a State Aid
from the Premium Tax of $178,000, while the actuarial now shows an estimate of
$190,000.
1�
This information is summarized in the following table:
Actuarial valuation shows $190,000.
** City contribution was reduced because of additional funds added to State Aid.
In order to try to determine if an unapproved defined benefit plan is equivalent to
a proposed defined contribution plan a number of assumptions need to be made.
These assumptions then determine how the comparison comes out. The Relief
Association proposal assumes a starting point of $5250 per year and increases
it by 8% per year, which then becomes the baseline against which a defined
contribution plan is compared. Because the funding requirement is roughly
equivalent, the proposed annual City contribution for a defined contribution plan
starts at $3650 per year per fighter and is increased by 4% per year. Finally, an
interest rate of 6.2% is assumed on the investment balance and the plans
become roughly equivalent for a firefighter with 10 years of service. The notion
of being roughly equivalent is also complex in that both years of service and age
will impact the potential benefit under a defined contribution plan where only the
years of service impact a defined benefit plan. Because of the effect of age and
continued growth in a defined contribution plan, a conservative approach would
seem to say that an annual contribution of $3650 should make the plans
equivalent. Again, it is easy to make that sort of statement but it may or may not
be true universally because of all the variables. An additional consideration
which might be important is the fact that a $5250 defined benefit level is not
legal until January 1,1998, when the cap becomes $5500. The effect of this
proposal would escalate the benefit and related cost beyond what is allowed by
State law. Technically, that is not an issue because the new plan is not capped;
however, it is a policy issue in that the City will be funding a plan in excess of
what would be allowed if the conversion had not taken place.
In addition to these two major policy questions, a number of smaller but
important issues remain to be addressed. Those include such things as how are
administrative costs of the new plan to be paid, how long a period should an
S
1996
1997
1997
Actuarial Date
1-1-94
1-1-96
1-1-96
Pro' to 1-1-97
Proj to 1-1-97
Benefit level
lump sum
$4,000
$4,200
$5,250
Benefit level
month)
$28
$28
NIA
Total Cost
$ 223,403
$ 240,000
$ 365,000
Actual/Budget
Cit
$ 66,577**
N/A
$ 168,300
State Aid
188,803N/A
178,000*
Total
$ 255,380
$ 346,300
Actuarial valuation shows $190,000.
** City contribution was reduced because of additional funds added to State Aid.
In order to try to determine if an unapproved defined benefit plan is equivalent to
a proposed defined contribution plan a number of assumptions need to be made.
These assumptions then determine how the comparison comes out. The Relief
Association proposal assumes a starting point of $5250 per year and increases
it by 8% per year, which then becomes the baseline against which a defined
contribution plan is compared. Because the funding requirement is roughly
equivalent, the proposed annual City contribution for a defined contribution plan
starts at $3650 per year per fighter and is increased by 4% per year. Finally, an
interest rate of 6.2% is assumed on the investment balance and the plans
become roughly equivalent for a firefighter with 10 years of service. The notion
of being roughly equivalent is also complex in that both years of service and age
will impact the potential benefit under a defined contribution plan where only the
years of service impact a defined benefit plan. Because of the effect of age and
continued growth in a defined contribution plan, a conservative approach would
seem to say that an annual contribution of $3650 should make the plans
equivalent. Again, it is easy to make that sort of statement but it may or may not
be true universally because of all the variables. An additional consideration
which might be important is the fact that a $5250 defined benefit level is not
legal until January 1,1998, when the cap becomes $5500. The effect of this
proposal would escalate the benefit and related cost beyond what is allowed by
State law. Technically, that is not an issue because the new plan is not capped;
however, it is a policy issue in that the City will be funding a plan in excess of
what would be allowed if the conversion had not taken place.
In addition to these two major policy questions, a number of smaller but
important issues remain to be addressed. Those include such things as how are
administrative costs of the new plan to be paid, how long a period should an
S
agreement cover, and how should the increases to the overall pool of funds
generated by the resignation of non -vested members be factored into annual
funding requirements. Also, the current concept assumes that the City will
assume all risk or benefit from potential changes to the State Aid from the
Premium Tax because the annual contribution uses that as a funding source
without consideration of potential changes.
The City Administrator, Director of Finance and representatives of the Relief
Association will be present at the meeting to answer questions of the City
Council.
City Administrator
TO:
FROM:
DATE:
MEMO
ENGINEERING DIVISION
city of eagan
THOMAS L. HEDGES, CITY ADMINISTRATOR
TOM COLBERT, DIRECTOR OF PUBLIC WORKS
AUGUST 1, 1997
SUBJECT: PROJECT 689, HAYES AND DELOSH .ADDIDTION-STORM SEWER
ASSESSMENT
To determine the extent of the assessable area and maximum assessment for the trunk area
assessment charges for Project 689, Hayes and Delosh Addition - Storm Sewer, so that the final
assessment roll can be prepared and presented to the affected property owners and City Council
for formal adoption and certification.
BACKGROUND
• On November 21, 1995, the City Council held a public hearing and subsequently approved
Project 689 providing for the installation of storm sewer improvements within the Hayes and
Delosh Addition ravine.
• In accordance with the City's Assessment Policy, trunk area availability charges are proposed
to be levied over all property within a drainage district that generates surface water runoff
that would be collected and conveyed through this improvement. The majority of this
drainage district incorporates existing developed single-family residential properties.
• The 1995 trunk area storm sewer assessment rate, $0.076 per square foot, resulted in a
pending assessment ranging from $1,178.00 to $8,633.00, with the majority of the lots in the
range of $1,600 to $2,300.
• A prepoj ect preliminary appraisal/analysis indicated that the storm sewer improvements will
O. benefit properties in the amounts of $1,500.00 to $2,100.00 per lot.
• As a part of the City's 5 -year Capital Improvement Program (CIP), the Valley View Plateau
is programmed for street and utility reconstruction within the next 1-3 years. The streets
within the Valley View Plateau currently do not meet City standards of concrete curb and
gutter with proper drainage facilities. A preliminary cost estimate to bring these streets up to
City standards would cost approximately $7,300.00 per lot.
DISCUSSION
• Should 1) the City proceed with the trunk area assessments under this project to the property
within the Valley View Plateau; or 2) defer these properties and the trunk area assessment to
the proposed street improvements within the next 1-3 years?
• What extent should the City pose a final trunk area assessment to any or all properties within
the noticed assessment boundaries?
• Location map (Figure 1)
• Proposed improvement location sketch (Figure 3)
• Assessment map
• Pending Assessment Roll
It would be very helpful if the City Council could provide direction to the City staff as to the
extent and amount of proposed special assessments that could be supported through a final
assessment public hearing. The staff can then have the information neighborhood meetings with
the affected property owners to help justify and support this decision prior to the final assessment
public hearing.
I would be available to further discuss any aspect of this project and its complexities if, and
when, necessary.
Respectfully submitted,
�t
Director of Public Works
TAC/ds
Attachments
•
SOON in lost
LOCATION PLAN
EAGAN, MINNESOTA FIGURE 1
HAYES ADD./DELOSH ADD.
STORM SEWER IMP. -- CITY PROJ. No. 689
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PRELIMINARY
SUBJECT M REVISION
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LEGEND
V1f 1007. ASSESSED
X S 2100 MAXIMUM ASSESSMENT
�► +�► IMPROVEMENT
7/17/97 STORM
8KA®ssess689 SEWER ALIGNMENT
HAYES & DELOSH ADDITIONS — STORM SEWER
CITY OF EAGAN 1/ PROJECT 689 ASSESSMENT MAP
PRELLNILNARY ASSESSMENT ROLL
HAYES AND DELOSH ADDITIONS
STORM SEWER
Project No. 689
Revised May 1, 1996
Trunk Area Lateral Storm Total
Parcel Area (SQ. Ft.) Assessment Charge Assessment Assessment
Post Add. No.1
Lot 1
27,790
$ 2,112.04
$ 0
$ 2,112.04
Lot 2
27,790
2,112.04
0
2,112.04
Lot 3
27,580
1,944.08
0
1,944.08
Lot 4
24,060
1,828.56
0
1,828.56
Lot 5
31,660
2.406.15
0
2.406.15
$10,402.87
$10,402.87
Post Add. No. 2
Lot 1
26,600
$ 2,021.60
0
$ 2,021.60
Lot 3
26,340
2,001.84
0
2,001.84
Lot 4
32,440
2,465.44
0
2,465.44
Lot 5
38,300
2,910.80
0
2,910.80
Lot 6
43,890
3.335.64
0
3.335.64
$12,735.32
$12,735.32
Post Add. No. 3
Lot 1, Block 1
15,500
$1,178.00
0
$1,178.00
Lot 2, Block 1
44,000
300
0
3.344.00
$4,522.00
$4,522.00
Valley View Plateau
Lot 1, Block 1
22,025
$ 1,673.90
0
$ 1,673.90
Lot 2, Block 1
22,050
1,675.80
0
1,675.80
Lot 3, Block 1
20,070
1,525.32
0
1,525.32
Lot 1, Block 2
18,800
1,428.80
0
1,428.80
Lot 2, Block 2
19,875
1,510.50
0
1,510.50
Lot 3, Block 2
19,875
1,510.50
0
1,510.50
Lot 4, Block 2
19,875
1,510.50
0
1,510.50
Lot 5, Block 2
19,875
1,510.50
0
1,510.50
Lot 6, Block 2
19,875
1,510.50
0
1,510.50
Lot 7, Block 2
19,875
1,510.50
0
1,510.50
Lot 8, Block 2
19,875
1,510.50
0
1.510.50
$16,877.32
$16,877.32
49567keport.wpd
12
APPENDIX B
PRELIMINARY ASSESSIMEN'T ROLL
HAYES AND DELOSH ADDITIONS
STOR.ti1 SEWER
Project No. 689
Revised May 1, 1996
'Trunk Area Lateral Storm Total
Parcel Area (Sq. Ft.) Assessment Charge Assessment Assessment
Valley View Plateau - Continued
Lot 1, Block 3
23,310
$ 1,771.56
0
$1,771.56
Lot 2, Block 3
21,875
1,662.50
0
1,662.50
Lot 3, Block 3
21,875
1,662.50
0
1,662.50
Lot 4, Block 3
21,875
1,662.50
0
1,662.50
Lot 5, Block 3
21,875
1,662.50
0
1,662.50
Lot 6, Block 3
21,875
1,662.50
0
1,662.50
Lot 7, Block 3
21,875
1,662.50
0
1,662.50
Lot 8, Block 3
21,875
1,662.50
0
1,662.50
Lot 9, Block 3
19,550
1,485.80
0
1,485.80
Lot 10, Block 3
23,360
1,775.36
0
1,775.36
Lot 1, Block 4
21,430
1,628.68
0
1,628.68
Lot 2, Block 4
21,875
1,662.50
0
1,662.50
Lot 3, Block 4
21,875
1,662.50
0
1,662.50
Lot 4, Block 4
21,875
1,662.50
0
1,662.50
Lot 5, Block 4
21,875
1,662.50
0
1,662.50
Lot 6, Block 4
21,430
1,628.68
0
1,628.68
Lot 7, Block 4
21,430
1,628.68
0
1,628.68
Lot 8, Block 4
21,875
1,662.50
0
1,662.50
Lot 9, Block 4
21,875
4662.50
0
1,662.50
Lot 10, Block 4
21,875
1,662.50
0
1,662.50
Lot 11, Block 4
21,875
1,662.50
0
1,662.50
Lot 12, Block 4
21,430
1,628.68
0
1,628.68
Lot 1, Block 5
22,000
1,672.00
0
1,672.00
Lot 2, Block 5
22,500
1,710.00
0
1,710.00
Lot 3, Block 5
22,500
1,710.00
0
1,710.00
Lot 4, Block 5
22,500
1,710.00
0
1,710.00
Lot 5, Block 5
22,500
1,710.00
0
1,710.00
Lot 6, Block 5
22,000
1.672.00
0
1.672.00
$44,996.94
$44,996.94
Valley View Plateau No. 2
Lot 1, Block 1
51,070
$3,881.32
0
$3,881.32
Lot 2, Block 1
25,110
1,908.36
0
1,908.36
Lot 3, Block 1
25,110
1,908.36
0
1,908.36
Lot 1, Block 2
14,990
139`24
0
1,139.24
$8,837.28
$8,837.28
49567VepcwLwpd 1,3 13
APPENDIX B
PRELIMINARY ASSESSMENT ROLL
HAYES AND DELOSH ADDITION'S
STORM SEN'D'ER
Project No. 689
Revised May 1, 1996
Trunk Area Lateral Storm Total
Parcel Area (Sq. Ft.) Assessment Charge Assessment Assessment
Haves Addition (1)
Lot 1, Block 1
15,870
0
$ 2,875.00
$ 2,875.00
Lot 2, Block 1
18,346
0
3,323.00
3,323.00
Lot 3, Block 1
20,638
0
3,738.00
3,738.00
Lot 4, Block 1
29,003
0
5.254.00
5.254.00
$15,190.00
$15,190.00
$El/s Section 4
Parcel 051-00
39,000
$ 2,964.00
0
$ 2,964.00
Parcel 052-00
30,000
2,280.00
0
2,280.00
Parcel 053-00
30,000
2,280.00
0
2,280.00
Parcel 062-00
51,000
3,876.00
0
3,876.00
Parcel 063-00
30,000
2,280.00
0
2,280.00
Parcel 091-00
113,600
8,633.60
0
8,633.60
Parcel 092-00
109,150
8,295.40
0
8,295.40
Parcel 011-75 m
0
0
0
_ $30.609.00
$30.609.00
Total
$128,980.73
$15,190.00
$144,170.73
Lateral storm sewer cost equals lateral benefit from trunk sewer for 12" diameter pipe from
Eagan's 1995 Utility Fees (350 LF x $43.40/L.F. _ $15,190).
a, Hayes Addition and Parcel 011-75 (Delosh Addition) are proposed to be assessr d their trunk area
assessment charge in accordance with their development agreement with the City of Eagan.
Note: Trunk Area Assessment Charge based on Single Family Rate of $0.076 per square foot.
495671report.wpd / 14
"-
w
TO:
FROM:
DATE:
MEMO
ENGINEERING DIVISION
�-- city of eagan
TOM COLBERT, DIRECTOR OF PUBLIC WORKS
JOHN GORDER, DEVELOPMENT/DESIGN ENGINEER
JULY 25, 1997
SUBJECT: RAINIER LANE/COUNTRY HOME HEIGHTS GRAVEL
STREET STABILIZATION ANALYSIS
CITY PROJECT NO. 717A
Attached is the executive summary for the above -referenced project in which options
are outlined to stabilize and control dust and erosion on the streets within Country
Home Heights and, specifically, Rainier Lane. Also included are detailed cost estimates
for each option.
Please contact me with any questions or comments you may have regarding this
summary.
D elopment/Design Engineer
/s
RAINIER LANE/ COUNTRY HOME HEIGHTS
GRAVEL STREET STABILIZATION ANALYSIS
EXECUTIVE SUMMARY
AUGUST, 1997
Prepared by: John Gorder, P.E.
Issue
How to best and most economically stabilize for dust and erosion control the gravel
surface of the streets within the Country Home Heights Addition and on Rainier Lane.
Country Home Heights is one of the oldest subdivisions in the City, platted in 1949.
Sanitary sewer and water main improvements were constructed in 1970 to serve the area.
Storm sewer and street improvements were not constructed at that time except for the
placement of a 4 -inch thick gravel base.
84 single-family lots are served by the approximately 7500 centerline feet of streets
within the Country Home Heights Addition (average frontage of 180 feet). 6 single-
family lots abut the 600 -foot length of Rainier Lane while 5 lots take direct driveway
access onto that street.
The City Council has twice previously denied public improvement projects to upgrade
streets within the Country Home Heights Addition. The first proposed project, City
Project No. 605 — Country Home Heights Storm Sewer & Street Improvements in 1990,
included the upgrade of the streets to the full City standard of concrete curb & gutter,
bituminous surfacing, and storm sewer. The second project proposed, City Project No.
717- Rainier Lane Street & Storm Sewer Improvements in 1997, was in response to a
citizen petition this past spring and included the upgrade of the 600 -foot length of Rainier
Lane to full City street standards. Both projects were denied by the Council based on
large project costs versus the potential benefit to adjacent assessable properties.
At time of denial of the Rainier Lane project, the Council directed staff to review options
for the stabilization of the streets within the Country Home Heights Addition and on
Rainier Lane. This summary outlines those potential options and possible assessments to
benefiting properties.
16
1171011 . 1 I_ I
1. Full Standard Ci4 Streets: The existing gravel streets within the Country Horne
Heights Addition are approximately 20 to 24 feet in width. To upgrade them to full
City street standards to a width of 32 feet would involve reconstruction with
bituminous pavement, concrete curb and gutter and storm. Because the gravel streets
were not originally built to a design that anticipated future urban street construction,
the existing gravel base cannot be effectively salvaged for reuse as base for the urban
standard street.
The average life expectancy for a full standard City street is approximately 25 to 30
years with regular maintenance.
The advantages of the full standard City street versus the current gravel streets
are as follows:
- The recurrent grading and addition of gravel base are eliminated.
- The ongoing chloride treatment to minimize dust is eliminated.
- Erosion resulting from heavy rains is significantly reduced.
- :Locating and accessing manholes and gate valves in emergency
situations is quicker.
- The blockage of existing culverts and storm sewers preventing proper
drainage is reduced.
- The increased loading of sediment and silt in downstream ponding areas
is reduced.
- .Safer driving conditions (increased driver control, rideability, etc.)
Adjoining property values are increased.
Less damage and more efficient snow and ice control during pre and
post -ice conditions.
Detailed cost estimates for the upgrade to the full City street standard for both the
entire Country Home Heights Addition and Rainier Lane only are included in the
attached appendix. The total estimated cost for the upgrade of the streets under this
option are as follows:
Country Home Heights $738,660 $8,794 (84 lots)
(incl. Rainier Lane)
Rainier Lane* $110,505 $18,418 (6 lots)
*Includes costs for storm sewer which benefits portions of Country Home
Heights on Egan Avenue and Inland Road.
2. 2 - Inch Bituminous Overlay Pavement: Past maintenance experience with the
gravel streets in Country Home Heights indicate good, well -draining subgrade soils
with the 4 -inch depth of gravel surface would require minimal or no subgrade
correction prior to paving. Approximately 2 inches of additional gravel base would
also likely be needed to provide slope and crown correction shaping on the streets
before paving. The overlay would be paved to a width of 24 feet. Existing ditches and
swales adjacent to the streets would be maintained under this option to accommodate
drainage.
A 2" bituminous overlay in Country Home Heights can be expected to function
adequately for approximately 10 years with normal routine maintenance. Past City
experience with a similar 2" overlay over gravel on Dodd Road resulted in very poor
performance of the bituminous mat because of several subgrade areas with plastic
soils and poor drainage, heavy construction traffic, and has required substantial on-
going repairs and maintenance.
Advantages of the 2 -inch bituminous overlay pavement versus the current gravel
streets are as follows:
- The driving surface is more stable.
- Rideability is improved.
- Less, more efficient surface maintenance.
- The recurrent grading and addition of gravel base is eliminated.
- The ongoing chloride treatment to minimize dust is eliminated.
Disadvantages of this option are as follows:
- Substandard structural section does have long service life.
- Erodeable and unstable pavement edges without curb, gutter and storm
sewer.
- Undefined delineation between road surface and manicured lawns.
- No curb to contain snow plow equipment, general traffic and parked
vehicles.
Incidental construction requirements associated with the overlay option include such
items as manhole and gate valve adjustments, additional gravel base, and turf
establishment adjacent to the edge of the overlay. These items are included in the
cost estimate detailed in the attached appendix. The total estimated costs (including a
5% contingency and 25% indirect costs) for this option are as follows:
Country Home Heights $144,640 $1,722 (84 lots)
(incl. Rainier Lane)
Rainier Lane $10,620 $1,710 (6 lots)
/K
3
3. Double SealCoat Application: Preparation required of the existing gravel streets
for a double sealcoat would be minimal and could be accomplished by City forces.
No additional gravel would be necessary to apply the double sealcoat to a 24 -foot
width.
A double sealcoat on a gravel street has a service life expectancy of approximately 4
years with occasional patching in areas of repetitive vehicle activity, such as around
mailboxes, street corners, etc. and in areas susceptible to erosion during significant
rainfall events.
Advantages of a double sealcoat application versus the current gravel streets are as
follows:
A semi -stable driving surface is provided.
The street rideablity is improved.
More effective dust control is provided.
Disadvantages of a double sealcoat application are as follows:
Difficult and ineffective patching of failed areas.
- No real structural strength, surface coating only.
Limited life expectancy.
- Driver's perception of a paved surface creates false expectations of
durability.
- Cannot withstand snow and ice control operation during pre- and post -
freeze conditions.
- Erodeable and unstable edges.
A cost estimate is included in the attached appendix. The total estimated
cost(including a 5% contingency and 15% indirect costs) of this option are as follows:
Country Home Heights $24,150 $288 (84 lots)
(incl. Rainier Lane)
Rainier Lane $1,930 $322(6 lots)
4. Double Calcium Chloride Application: This method involves two applications of
liquid calcium chloride solution directly onto the gravel surface; the first applied in
late spring and the second application applied mid -summer at approximately half the
rate of the first. The calcium chloride binds with the existing gravel creating a more
stabilized and less dusty driving surface. Preparation required of the existing gravel
streets for a double calcium chloride application would be minimal and could be
accomplished by City forces. No additional gravel would be necessary to apply the
double application to an 18 -foot width.
A calcium chloride .application has a life expectancy of about 3 months.
Advantages of a double calcium chloride application are as follows:
- A majority of the road dust is controlled.
- Easy and economical to apply.
Disadvantages of the double calcium chloride application are as follows:
- Susceptible to early deterioration after major storm events.
- Limited life expectancy.
- Rideability is not improved.
- Erodeable and unstable driving surface.
- Cannot withstand snow and ice control operations during pre- and
post -freeze conditions.
Past regular maintenance of the streets in Country Home Heights have included a
single calcium chloride application in early summer. The estimated cost of a double
application is shown as follows:
Country Home Heights $2,355 $28 (84 lots)
(incl. Rainier Lane)
Rainier Lane $176 $29 (6 lots)
5. Do Nothing: As mentioned above, regular maintenance includes periodic grading,
ditch cleaning, gravel supplements and single calcium chloride applications as well as
grading and clean up after major storm events. Based on past maintenance
experience, the estimated cost of the single calcium chloride application for all of
Country Home Heights $3,430 and for Rainier Lane $270. Past maintenance records
show the estimated yearly cost of $1,300 for additional gravel and $2,800 for labor to
maintain the streets within Country Home Heights. This results in a total annual
General Fund expenditure of approximately $7,500/year presently being spent on
these substandard gravel streets.
F�
k.
APPENDIX
PRELIMINARY COST ESUMATES
Option 1) Full Standard City Streets:
Country Home Heights (including Rainier Lane)
Qty-.
Anil
11=
C-99
310
LF
24" RCP Storm sewer @ $32/LF
$9,920
310
LF
21" RCP Storm sewer @ $30/LF
9,300
350
LF
18" RCP Storm sewer @ $26/LF
9,100
1,180
LF
12" RCP Storm sewer @ $24/LF
28,320
7
EA
Std. MH w/ Casting @ $1,200/EA
8,400
22
EA
Std. CB w/ Casting @ $1,000/EA
22,000
1
EA
21" RCP flared end section @ $1,000/EA
1,000
1
EA
15" RCP flared end section @ $600/EA
600
1
EA
Connect to ex. 24" RCP @ $500/EA
500
10,000
CY
Common Excavation @ $5.50/CY
55,000
10,200
TN
Class 5 aggregate base @ $8/TN
81,600
2,200
TN
2331 Bituminous base course @ $14/ TN
30,800
2,200
TN
2341 Bituminous wear course @ $16/TN
35,200
260
TN
Bit. Material for mixture @ $130/IN
33,800
15,000
LF
B618 Conc. Curb & gutter @ $6/LF
90,000
5
EA
Relocate hydrant @ $1,200
6,000
84
EA
Relocate mailbox @ $75/EA
6,300
58
EA
Driveway restoration @ $500/EA
29,000
52
EA
Adjust MH & GV @ $150/EA
7,800
23,000
SY
Sod, type lawn @ $2.50/SY
57,500
2,000
CY
Topsoil borrow @ $8/CY
16,000
1
LS
Traffic control @ $3,000/LS
3000
$541,140
+ 5% Contingencies 27.060
Subtotal $568,200
+ 30% Indirect Costs 170'460
Total $738,660
0
6
Rainier Lane Only*
200
LF
21" RCP Storm sewer @ $30/LF
$6,000
1,145
LF
12" RCP Storm sewer @ $24/LF
27,480
6
EA
Std. MH w/ Casting @ $1,200/EA
7,200
2
EA
Std. CB w/ Casting @ $1,000/EA
2,000
1
EA
21" RCP flared end section @ $1,000/EA
1,000
1,500
CY
Common Excavation @ $5.50/CY
8,250
725
TN
Class 5 aggregate base @ $8/TN
5,800
200
TN
2331 Bituminous base course @ $14/ TN
2,800
100
TN
2341 Bituminous wear course @ $16/TN
1,600
15
TN
Bit. Material for mixture @ $130/1N
1,950
1,100
LF
B618 Conc. Curb & gutter @ $6/LF
6,000
1
EA
Relocate hydrant @ $1,200
1,200
5
EA
Relocate mailbox @ $75/EA
375
5
EA
Driveway restoration @ $500/EA
2,500
3
EA
Adjust MH & GV @ $150,/EA
450
1,500
SY
Sod, type lawn @ $2.50/SY
3,750
200
CY
Topsoil borrow @ $8/CY
1,600
1
LS
Traffic control @ $1,000/LS
1.000
$80,955
+ 5% Contingencies 4.050
Subtotal $85,005
+ 30% Indirect Cost 25,500
Total $110,505
* Includes storm sewer with benefit to Egan Avenue and Inland Road.
7
O TIIO 7117M17
Country Hume Heights (including Rainier Lane)
�•i, iT
11= f.&9
2,200
TN
Cl. 5 Agg. Base(2') @ $8/TN
$17,600
2,200
TN
2341 Bit. Wear course(2") @ $16/TN
35,200
260
TN
Bit. Material for mixture @: $130/TN
33,800
52
EA
Adjust MH & Gate valve @ $150/EA
9,100
5,000
SY
Sod, type lawn @ $2.50/SY
12,500
1
LS
'Traffic control @ $2,000
2.000
$110,200
* 5% Contingencies 5,,J 10
Subtotal
$115,710
+ 25% indirect Costs 28.930
Total
$1449640
Rainier Lane Only
Item f -Q9
180
TN
Cl. 5 Agg. Base(2') @ WIN
180
TN
Type 41 Bit. Wear course(2') @ $16/TN
10
TN
Bit. Material for mixture @ $130/TN
3
EA
Adjust MH & Gate valve @ $150/EA
500
SY
Sod, type lawn @ $2.50/SY
1
LS
Traffic control @ $500
* 5% Contingencies
Subtotal
* 30% Indirect Costs
Total
$1,440
2,880
1,300
450
1.250
57,820
$8,210
2.=
$10,260
Country Home Heights (Including Rainier Lane)
7,500 LF * 24 feet wide / 9 = 20,000 SY @ $1/ SY = $20,000
+5% Contingencies 1,000
Subtotal $21,000
+15% Indirect Costs 3.150
Total $24,150
Rainier Lane
600 LF * 24 feet wide / 9 =1,600 SY @ $1 / SY = $1,600
+5% Contingencies U
Subtotal $1,680
+15% Indirect Costs M
Total $1,930
Country Home Heights (Including Rainier Lane)
15,450 SY @ 0.17 gaUSY = 2,628 gal* $0.74/gal = $1,945
+5% Contingencies 10
Subtotal $2,045
+15% Indirect Costs $14
Total $29355
Rainier Lane
1,200 SY @ 0.17 gal/SY = 205 gal * $0.74/gal = $150
+5% Contingencies $
Subtotal $153
+15% Indirect Costs 23
Total $176
aL/