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If Council approves plans and specifications and authorizes advertising for bids, bids will be advertised on Friday, <br />March 30, and again on Friday, April 6, both in the City's official newspaper, the Anoka Union Herald, and in <br />Finance & Commerce. <br />Observations/Alternatives: <br />Observations: <br />While preparing plans and specifications, Staff reviewed existing pavement conditions in detail and discovered <br />several areas of severely damaged pavement in three project areas. Staff proposes to complete bituminous pavement <br />patching work in these areas prior to overlaying the streets so the overlay improvements can achieve its design life <br />of 15 to 20 years. The proposed bituminous patching work involves removing the existing damaged pavement, <br />shaping and compacting the existing aggregate base, and placing and compacting new bituminous pavement to the <br />same elevation of the existing pavement. <br />Attached is a copy of the plans prepared by Staff. The proposed pavement patching work is shown on plan sheets <br />20, 21, and 22. Staff estimates this bituminous patching work will increase project costs by $33,000. Also attached <br />are copies of plan sheets 20, 21, and 22 with the areas proposed to receive bituminous patching work highlighted in <br />yellow. <br />The City's adopted Special Assessments Policy allows up to 25-percent of eligible overlay project costs to be <br />assessed against benefiting properties. Staff proposed to assess 25% of eligible project costs when calculating <br />preliminary assessments, which were then adopted by Council. Unless bids come in significantly less than the <br />engineer's estimate based on the attached plans, it is likely the proposed bituminous patching work would result in <br />increased special assessment amounts in three project areas, unless patching costs were to be paid by the City and <br />not assessed to property owners. <br />Staff discussed this with the Public Works Committee on March 20th and presented the four following options to <br />address the increased project costs and potential impacts to special assessments. <br />• Overlay damaged areas as is — This option would likely result in the overlay improvements failing <br />prematurely over areas of severely damaged pavement. Staff does not support this option. <br />• Overlay damaged areas after patching with new pavement — This option should allow the overlay <br />improvements to achieve their design life of 15 to 20 years. Staff supports this option. <br />• Reconstruct affected street segments in 2019 — This option is viable since these improvements are listed in <br />the 5-year Street Reconstruction Overlay Plan. However, street reconstruction costs are typically several <br />times higher than overlay costs meaning special assessments are also typically several times higher. Multiple <br />overlays can therefore typically be performed for the same cost as a reconstruction. It is also important to <br />understand that one of Staff's goals while maintaining streets is to ultimately allow all streets within a <br />neighborhood to be maintained using the same treatment on the same schedule to minimize maintenance costs <br />and impacts to residents. Staff therefore recommends patching the damaged pavement areas in an effort to <br />extend the life of the existing pavement as much as possible before reconstructing. <br />• Do nothing — Staff does not generally support this option. <br />After discussing the patching issue in detail, including the four options outlined above, the Committee unanimously <br />recommended City Council approval of including the proposed bituminous patching improvements with the 2018 <br />Street Overlay Improvements, with all costs for the patching to be paid by the City. <br />Alternatives: <br />Alternative #1 — Motion to adopt Resolution #18-057 approving plans and specifications and authorizing <br />advertisements for bids for 2018 Street Overlay Improvements, Improvement Project #18-03, and to approve of the <br />City paying for all bituminous patching costs. <br />Alternative #2 — Motion to adopt Resolution #18-057 approving plans and specifications and authorizing <br />advertisements for bids for 2018 Street Overlay Improvements, Improvement Project #18-03, and to approve of <br />assessing 25% of the bituminous patching costs to benefiting properties. <br />Alternative #3 — Motion of other. <br />Funding Source: <br />