Agenda - Council - 06/09/2015 - Laserfiche WebLink

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Cost -share information previously provided by the City of Elk River indicated the City of Ramsey's share of the estimated project costs would total $920,305.50. This accounts for 50% of the costs to reconstruct the shared segment of Jarvis Street and to complete required railroad crossing quiet zone improvements. However, based on the bid from North Valley, Inc., the City of Ramsey's cost participation for all contract items associated with the project will total $394,779.22. In addition, the City of Ramsey will be responsible for half of the costs associated with moving the railroad crossing arms and extending the width of the crossing surface as required for establishing a quiet zone. This work must be completed by Burlington Northern Santa Fe (BNSF) outside of Elk River's contract with North Valley, Inc. Elk River is still working with BNSF railroad to determine their costs for these improvements, but based on the preliminary estimate of $362,000 the City of Ramsey's share would be half this amount, or $181,000. Therefore, the total estimated cost participation for the City of Ramsey for the entire project is $575,779.22 (about 40% less than originally estimated). The JPA does not identify specific costs, but rather obligates the City of Ramsey to funding half of the identified project improvements. However, the JPA also obligates the City of Elk River to paying the City of Ramsey's share of the project costs up -front with an interest-free payback period of 3 -years for calendar years 2016, 2017, and 2018. This improvement project is listed in the City's current 5 -year Capital Improvement Plan and is proposed to be funded using a mix of Public Improvement Revolving (PIR) funds, special assessments, and stormwater utility funds. Preliminary special assessments are proposed in the Feasibility Report in the amount of $4,500 per lot which totals $45,000 based on assessments being applied to all 10 single-family residential properties having direct access to the shared segment of Jarvis Street. The Assessment Hearing is scheduled to be held on October 13h, 2015, at which time the project should be substantially complete and the results of the Council approved special assessment benefit appraisal consultation will be available to assist in verifying that the preliminary special assessment amount does not exceed the benefit received by the assessed properties. Recommendation: Staff recommends Alternative Action # 1, but would support Alternative Action 42 if Council wishes to make minor modifications to the JPA before submitting it to the City of Elk River for approval by their City Council. Staff does not recommend Alternative Action 43 due to the need to reconstruct Jarvis Street and the beneficial timing of the project if completed in 2015. Action: Approve or deny adoption of Resolution # 15-06-144 approving a Joint Powers Agreement with the City of Elk River for Jarvis Street Reconstruction and Railroad Crossing Quiet Zone Improvements, Improvement Project #15-20. Res 15 06 144 JPA IP 1520 Attachments Form Review Inbox Reviewed By Date Diana Lund Diana Lund 06/04/2015 09:33 AM Kurt Ulrich Kurt Ulrich 06/04/2015 11:55 AM Form Started By: Bruce Westby Started On: 04/21/2015 08:08 AM Final Approval Date: 06/04/2015