Agenda - Council Work Session - 01/08/2013

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CC Work Session 3.2. Meeting Date: 01/08/2013 By: Shane Nelson, Engineering /Public Works Title: Consider Feasibility Report for Riverdale Drive Extension Background: The City of Ramsey has received a $702,000 grant to help in the funding of the reconstruction and extension of Riverdale Drive from Armstrong Blvd (CSAH83) to Traprock Street. The project is another step forward towards readiness for an Armstrong Blvd (CSAH83) Interchange with TH10. The project also eliminates access to TH10 at Alpaca Street and modifies access at Traprock Street. Those access changes are safety related and are a large reason the grant was awarded to the City of Ramsey along with promotion of a south frontage road to TH10. The $702,000 grant requires award of the contract by June 30th of 2013. In conjunction with the road project, it is proposed that sanitary sewer and watermain be installed under the new roadway consistent with the City's Comprehensive Water and Sewer Study's. Constructing the sanitary sewer and watermain under the roadway now will prevent the road from being dug up at some point in the future to install the utilities. The attached feasibility report focuses on the cost of installing the utilities and discusses two alternatives for the City to recapture the initial capital investment of installing the utilities. Notification: N/A Observations: The attached report analyzes two methods for recapturing the capital cost of the utilities. The first method, which entirely utilizes connection charges to recapture the investment, is different than an assessment in several aspects, as follows: • The connection charge method utilizes a set rate(s) for connection to City utilities. In contrast, the assessment method would utilize the actual lateral costs of the project plus the connection charges for the trunk and other system facilities. • A public improvement hearing and an assessment hearing are required for the assessment method. These hearings are not required for the connection charge method. • A mandatory 60 -day waiting period after the public improvement hearing is required by the City Charter for the assessment method. The waiting period is not required for the connection charge method. • With the assessment method, the property value increase of the properties being assessed must be greater than or equal to the amount of the assessment. • The assessment method does have a timing advantage, as the timetable is known for recapturing the investment (typically 20 years for sewer and water) Recommendation: Upon consideration of several factors, staff recommends that the City utilize the connection charge method. Funding Source: The funding sources for this project are discussed within the attached report. Council Action: