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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 49567F01,OWG OCTOBER 1995 COMM. 49567 IjSonestroo Aosene A Anderlik d Associates Existing Profile Grode •r a 3' MAX. HEIGHT BUILT UP SEDIMENT. pIPRAP a OVER TIME. (Typ) .QAE31ON BAS K T D IT C H O K Typical Profile , j I . i W a 10 4 Q Q .3 2 E 4 3 V 2 { P OPO�S D 7 FUTURE {l.4YESADD.PRIV 'V1E' cr?RACE AT BF.IDGc =S RA �-- — 2 9 1 8 1 7 Ex.2" FROM PO 10 I SRO cctL5,0 DEL ADD. o� 1 Ex. 3G" BASKET 012-77 l 4 --�?�-- J 0 S t P .3 2 3 4 i o �o I 5 O QQ 2 QO � 2' � " ado O� N Hayes1 Ravine C. 3 2 L G/i7�i r7 ►'L r.�..... - - — RErgOSLASIE ME4NDEA) 1 RA ANE, RESHAAEEX ING CHANNE AND CONSTRIJCTEROS/4NCONTAOL —454TURES (WR/CWSON (GRASSES, SAN09AR AU 0#V TO *RWVTEAOS/ON. `- _C 100 wo STORM SEWER-IMPROVEDEN-T_S , � m DELO SH RAVIN�E�TORATION 8onestroo BIO ENGINEERING Rosene � Anderlik b EAGAN, MINNESOTA FIGURE 3 Associates HAYES ADDITION/DELOSH ADDITION STORM SEWER IMP. — CITY PROJ. No. 689 / S OCTOBER 1995 COMM. 9 ` 49557F�J,,.DWG PRELIMINARY SUBJECT M REVISION 0 o No3 X 1 4 2 43-00,132--W 31-00 22-00 021-00 � y wcNvll:w AT. • ,� q 012-01 � 1 QQ �s HI,HVIEA AVE v J . X r c 4" (157 = 0 �C c o N 06 0 3 1 k t L 0 0 3 I BRIDGEVIEW AVE. X �( X X .. X �• 091-00 092-00 ?HR�DGE AVE. i s Y 0 Y00 s aPLATEA _ X X A � 2 X W X 5 �C osM��y,}C1 P� ITY0 E7AN S 3 012-77 I X a� X 5 �• CITY OF EAGAN � 1 030-75 vi 02D-5 SKYLINE ROAD 0 ,b 2 3 4 J 2� 1 a tl a �¢ ApQ oPO CIRCLE 3-00 62-00 5 4 i F+. 1-0D 6 5 � � 7 3 G� 6 a �� 7 1 2 3 4 5 6 12 10 S 132-0c8 6 011-00 RUSTIC HILLS DR. 1 z 1 L vYi , 10 9 060-00 D. '� 2 133-00 10D-00 R 14 3 4 010-78 15 180-00 17 4 � 131-00 110-00 18 N Dsz-oo 18,30 31 1-00 103-00 z i 14 12 1 1 oe 070700 V7 Z 1 112-M 1 d07 6 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/