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CC Work Session 2. 3. <br />Meeting Date: 08/27/2013 <br />By: Bruce Westby, Engineering /Public <br />Works <br />Information <br />Title: <br />Consideration of Long -Term Street Maintenance Program (SMP) Costs and Funding Options <br />Background: <br />In 2009, staff estimated that the required annual cost would be $3,200,000 to fund the city's long -term street <br />maintenance and reconstruction program (SMP) to maintain a Pavement Surface Evaluation and Rating (PASER) <br />system rating of 7 or better on all 141.82 miles of non - Municipal State Aid city streets. This annual cost was <br />determined based on an assumed 40 -year life- expectancy for a typical city street and accounted for all costs <br />required to maintain and eventually reconstruct all roads at the end of their assumed 40 -year life span, excluding <br />initial construction costs. This then resulted in an estimated total cost of $9,588,203 to maintain all non - Municipal <br />State Aid Streets over the 5 year period from 2011 to 2015, which equated to an annual cost of $1,917,640.60. <br />Maintenance costs were also estimated for the same streets for the 10 year period from 2011 to 2020. These costs <br />totaled $72,401,106.00, which equated to an annual cost of $7,240,110.60. <br />Per Council direction, staff has recently been working to re- evaluate these costs, which resulted in the following <br />actions and findings. <br />Recent studies have concluded that streets constructed over solid, well - drained subgrade soils, such as the sands <br />found in the Anoka sand plain which Ramsey is located upon, and that receive regularly scheduled maintenance, <br />should realize a 60 year life expectancy. Therefore, if the City Council continues to annually dedicate the necessary <br />SMP funding required to properly maintain all city streets, our streets should last for 60 years or more between <br />reconstructions. The maintenance program staff recommends consists of crack sealing all streets 3 years after initial <br />construction, overlay, and reconstruction operations. Concurrent crack sealing and seal coating operations should <br />then occur in years 6, 13, 26, 33, 46, and 53, with an overlay and edge milling operation applied in years 20 and <br />40. Then, in approximately year 60, either a reclaim and repave project or a full reconstruction would occur, after <br />which the maintenance cycle would begin all over again. <br />After updating the city streets database, which contains detailed design information for all street segments <br />throughout the city, staff was able to more accurately estimate the annual costs needed to fund our long -term street <br />maintenance and reconstruction program. This required staff to research and apply average 2013 unit bid prices for <br />street maintenance operations including crack sealing, seal coating, overlaying, reclaiming and repaving, and <br />reconstructions. The applied 2013 unit bid prices came from projects bid this year in other nearby cities, as well as <br />from projects we bid this year, including our 2013 Street Maintenance Program. <br />As Council may recall, staff previously planned to develop a dozen typical sections or more to represent typical <br />combinations of street widths and roadway types throughout the city, including urban (curb & gutter, storm sewer <br />and boulevards) and rural (no curb & gutter and ditches) street sections and different pavement sections based on <br />the existence of clay or sand subgrade soils. While this approach would have yielded reasonable cost estimates, by <br />updating our streets database and applying average 2013 unit bid prices, staff was able to much more accurately <br />calculate the estimated costs needed to maintain all city streets over their projected life spans, as well as over the <br />next 5 to 10 years. <br />City staff has been rating and evaluating the pavement condition of all city streets for many years now. In general, <br />roughly 23.5% of city streets are currently rated between 0 and 6, whereas 76.5% are rated between 7 and 10. This <br />indicates that we have been doing a reasonable job of maintaining the majority of city streets at a PASER rating of <br />7 or greater, which is identified as one of the city's Strategic Initiatives in Strategic Imperative II of the recently <br />