Stephanie Smith, Project EngineerW

MEMORANDUM v TO: Paul Oehme, Director of Public Works/ City Engineer o FROM: Stephanie Smith, Project EngineerW 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 9522271100 Fax 952. 2271110 DATE: October 24, 2016 SUBJECT: PROPOSED MOTION 2017 Street Rehabilitation Project No. 17-01: Accept Feasibility Study; Call Public Hearing Building Inspections Phone: 952. 227.1180 Fax 952. 227.1190 Engineering Phone 952. 227.1160 Fax 952. 227.1170 The City Council adopts the attached resolution accepting the feasibility report for the 2017 Street Rehabilitation Project No. 17-01 and calls the public hearing for November 28, 2016. City Council approval requires a simple majority vote of the City Council present." Finance Phone: 9522271140 Fax: 952. 227.1110 Park & Recreation Phone 952. 2271120 Fax 952. 2271110 Recreation Center 2310 Coulter Boulevard Phone: 952. 227.1400 Fax 952. 227.1404 Planning & Natural Resources Phone: 952. 227.1130 Fax: 952. 227.1110 Public Works 7901 Park Place Phone: 952. 227.1300 Fax 952. 227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Website www.ci.chanhassen. mn. us At the August 22, 2016 work session, staff reviewed with Council the proposed 2017 Street Rehabilitation in the Lake Susan Hills area. On September 12, 2016, the City Council authorized preparation of the feasibility study. On October 18, 2016, staff held an Open House for the proposed project. Every year the City considers streets that are in poor condition to be rehabilitated or reconstructed. For the 2017 Street Rehabilitation Project, staff is proposing to rehabilitate approximately 1. 9 miles of kv streets in the Lake Susan Hills neighborhood. The street segments within the proposed project were 11o identified by the City' s Pavement Management software in conjunction with site investigations. Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow

Paul Oehme 2017 Street Improvement Project: Accept Feasibility Study; Call Public Hearing October 24, 2016 Page 2 The proposed improvements generally consist of reclaiming the pavement surface and the aggregate base underneath the pavement. Atypical areas with insufficient base underneath the pavement will be reconstructed. Minor drainage improvements and some draintile installation are also included within the project area. For the municipal water system, gate valve and hardware replacements are proposed along with minimal hydrant replacement. Sanitary sewer work proposed includes spot repairs of damaged manhole structures and inflow/infiltration remediation within the manholes. City staff hosted an Open House for the neighborhood on October 18 from 4: 30pm to 6: 00pm. Residents discussed the proposed project and told staff about their property and experience in the project area. Residents reiterated concerns about the current condition of the street and subsurface drainage in the project area and inquired into the assessment process. Resident correspondence will be included in the staff report for the public hearing. A feasibility report was prepared by the Engineering Department staff. It is estimated the City will save between $85, 000 and $ 100, 000 with feasibility report preparation, design and construction observation not being outsourced. A copy of the feasibility report is available in the Engineering Department. Below is a summary of the feasibility findings: The approximate 1. 9 miles of streets in the project area were constructed between 1989 and 1993. Sealcoats were performed in 1993, 1997 and 2005. A non-structural overlay was done on the northern leg of Lake Susan Hills Drive, Egret Court, Heron Drive and Ibis Court in 2002. All streets within the project are urban residential streets with concrete curb and gutter. Lake Susan Hills Drive, Flamingo Drive and Heron Drive have a 5 -foot concrete sidewalk on one side. Pavement condition scores generated by the City' s pavement management software were considered when determining street segments within the proposed rehabilitation area. Street segments are surveyed every three years and a score or Overall Condition Index (OCI) is assigned to the street segment. An OCI of 100 represents a new road. The streets within the Lake Susan Hills neighborhood were last surveyed in 2015, and the OCI ranged from 30. 3 to 65. 6. The proposed standard improvements include reclaiming the full depth of bituminous plus 4. 5"- 6. 5" of the aggregate base of the street. The top four inches of reclaimed material will be removed and two, 2 -inch lifts of asphalt are proposed to be installed. Select sidewalk panels that are damaged or may create a tripping hazard are proposed to be replaced during this project, but would be paid for as part of the annual sidewalk maintenance rather than from the budget for this project. Hardware replacement is proposed on gate valves and will include the installation of zinc anode bags to forestall corrosion. Minimal hydrant replacement is proposed for this project. Sanitary sewer manholes with degraded concrete rings are proposed to have the rings replaced with this project. Infiltration barriers and sealed manhole covers are proposed for all sanitary structures to prevent future infiltration. The City' s Public Works department will repair the infiltration between manhole joints in-house rather than be included with the proposed project. g:\ eng\ public\_ 2017 projects\ 17-01 street rehab\ communication\ 161024_ cc_ accept teasibility.docx

Paul Oehme 2017 Street Improvement Project: Accept Feasibility Study; Call Public Hearing October 24, 2016 Page 3 A quantity of draintile is proposed for this project for installation at the back of curb, as there is a record of resident concerns about subsurface drainage in the project area. Approximately 80 feet of drainage structure replacement is proposed to address problems observed in several drainage structures during inspection. Due to the shallow grade of the northern portion of Flamingo Drive, the project is proposed to include analysis of warrants for additional catch basins to pick up stormwater flow on the street. Because there are no additional impervious surfaces that will be added to the 2017 project area, this project would not trigger any of the Federal, State or Local surface water regulations. The proposed project includes minor water main and sanitary sewer repairs but would not require a permit from the MN Department of Health or the MN Pollution Control Agency, respectively. Because Lake Susan Hills Drive has two intersections with Powers Boulevard ( CSAH 17), a work in right-of-way permit will be required from Carver County. PROJECT FUNDING Special assessments to the benefitting properties are proposed to pay for a portion of the proposed 2017 Street Improvement Project No. 17-01 per the City' s Assessment Policy. The remaining project costs are proposed to be paid from City funds. All utility improvements are proposed to be paid for by the associated utility fund. The preliminary funding is shown below: Funding Source Project Cost Amount Assessments/ Revolving Assessment Fund Stormwater Management Fund Water Utility Fund Sanitary Sewer Utility Fund 1, 105, 000 $ 1, 100, 000 90, 000 500, 000 109, 000 75, 000 127, 000 210, 000 Budgeted Amounts are from the proposed 2017 CIP Budget 1, 431, 000 $ 1, 885, 000 Unit assessments are proposed, meaning each parcel determined to be a benefitting property at the time the assessment roll is approved will pay the same amount. Final assessment amounts will be based on the construction bid price. Preliminary estimated assessments are detailed below: Total Estimated Street Cost: $ 1, 105, 000 40% assessed: 40% of $1, 218, 000 = $ 442, 000 Number of assessable units: 187 Estimated unit assessment: $ 442,000 _ 187 units = $ 2, 400/unit* Estimated assessments have been rounded to the nearest $ 100 The cost estimate includes a 10% construction contingency and a 5% estimate of indirect costs. g:\ eng\ public\_2017 projects\ 17-01 street rehab\communication\ 161024_ cc_ accept feasibitity.docx

Paul Oehme 2017 Street Improvement Project: Accept Feasibility Study; Call Public Hearing October 24, 2016 Page 4 An assessment of $2, 600/ unit was noticed to the neighborhood. However, after site visits and further investigation of the project area, staff reduced the quantity contingency on the estimated reclamation and paving items for the street costs. This lowered the assessment amount from 2, 600/ unit to $ 2,400/ unit shown in the calculation above. SCHEDULE The following schedule is proposed contingent upon City Council approval to proceed with the project: Public Hearing; Order Preparation of Plans and Specifications Approve Plans and Specifications; Order Ad for Bid Bid Opening Assessment Hearing; Award Contract Construction Start Substantial Completion November 28, 2016 January 23, 2017 February 15, 2017 March 27, 2017 June, 2017 August, 2017 Attachments: Resolution CIP Sheets g:\eng\ public\_2017 projects\ 17-01 street rehab\ communication\ 161024_ cc_ accept feasibility. docx

CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: October 24, 2016 RESOLUTION NO: 2016 -XX MOTION BY: SECONDED BY: A RESOLUTION ACCEPTING FEASIBILITY STUDY AND CALLING THE PUBLIC HEARING FOR THE 2017 STREET REHABILITATION (LAKE SUSAN HILLS AREA) PROJECT NO. 17-01 WHEREAS, pursuant to resolution of the Council adopted September 12, 2016, a report has been prepared by City staff with reference to the above -referenced project, and this report is being received by the Council on October 24, 2016, and WHEREAS, the report provides information regarding whether the proposed project is necessary, cost-effective, and feasible. NOW, THEREFORE, BE IT RESOLVED by the Chanhassen City Council: 1. The Council will consider the improvement of such project in accordance with the report and the assessment of abutting properties for a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429 at an estimated total cost of the street improvements of $1, 105,000. 2. Public hearing for the proposed improvements within the 2017 Street Rehabilitation (Lake Susan Hills Areas) Project No. 17-01 shall be held on November 28, 2016 in the Council Chambers of City Hall at 7: 00 PM. The clerk shall give mailed and published notice of the hearing and improvement as required by law. Passed and adopted by the Chanhassen City Council this 240 day of October, 2016. ATTEST: Todd Gerhardt, City Manager Denny Laufenburger, Mayor YES NO ABSENT

Capital Improvement Program 2017 rhru 2021 City of Chanhassen, MN Project# ST -012 Project Name Annual Street Improvement Program Account# 1 601- xxxx-4751 Account# 3 Account 42 Account #4 Department Contact Type Useful Life Category Priority Street Improvements Paul Oehme Improvement Unassigned Streets/ Highways n/ a Description Total Project Cost: $ 30,680,000 Annual project to rehabilitate and reconstruct streets in the City. Current 5 -year plan shows the following neighborhood areas: 2017 - Minnewashta Manor area and Lake Susan Hills Drive area MSA - Park Road and Park Place 2018. Orchard Lane area MSA - Lake Drive East and Dakota Ave (Highway 5 to Lake Drive East) 2019 - Choctaw area, Kurvers Point area and 96th Street MSA - Minnewashta Parkway overlay and trail 2020 - Chan View area MSA - Lake Lucy Road ( Highway 41 to Galpin Blvd) and trail 2021 - Stone Creek area and Ches Mar Drive City uses a Pavement Management System to monitor the condition of the City streets. While proper preventative maintenance extends th, of the street and is cost effective, a street will eventually deteriorate to a point that further maintenance is no longer cost effective. abilitation projects extend the life of the street. In cases when utilities or poor sub grade needs to be replaced or where streets have eriorated to a point where rehabilitation will no longer be practical, reconstruction of the street is necessary. A feasibility study is written to sider the merits of the project and scope of work. Prior Expenditures 2017 2018 2019 2020 2021 Total 16, 405,000 Construction 4, 375, 000 2, 700,000 2,300,000 3, 800, 000 1, 100, 000 14,275,000 Total Total 4,375,000 2, 700,000 2,300,000 3,800,000 1, 100,000 14,275,000 Prior Funding Sources 2017 2018 2019 2020 2021 Total 16, 405,000 Assessment/ Revolving 3, 275,000 1, 600,000 1, 100, 000 3, 300, 000 1, 100, 000 10, 375,000 Assess Fund Total MSA 1, 100, 000 1, 100,000 1, 200, 000 500,000 3,900,000 Total 4,375,000 2,700,000 2,300,000 3,800, 000 1, 100, 000 14,275,000 project may decrease maintenance costs.

Capital Improvement Program 2017 rhru 2021 City of Chanhassen, MN Department Contact Surface Water Management Paul Oehme Project# Project Name SWMP-019 Street Improvement Projects - Storm Water Mgmt Type Useful Life Category Improvement Unassigned SWMP Account# 1 720-7025- 4751 Account# 3 Priority n/ a Account #2 Account #4 Description Total Project Cost: $ 2, 685, 000 An annual amount set aside for storm water management infrastructure construction or expansion associated with street improvement projects undertaken by the engineering and public works departments. Justification Street improvement projects frequently require construction or expansion of storm water management infrastructure in order to comply with federal, state and local regulations, as well as protecting existing and proposed development adjacent to the projects. Prior Expenditures 2017 2018 2019 2020 2021 Total 1, 5257o00 construction 500,000 250,000 80,000 250, 000 80,000 1, 160,000 Total Total 500,000 250,000 80,000 250,000 80,000 1, 160,000 Prior Funding Sources 2017 2018 2019 2020 2021 Total 1, 525, 000 Surface Water Utility Fund 500,000 250,000 80,000 250,000 80,000 1, 160, 000 Total Total Total 500,000 250,000 80,000 250,000 80,000 1, 160, 000 new infrastructure will be required. Citywide. No map

Capital Improvement Program City of Chanhassen, MN 2017 thru 2021 Department Contact Sanitary Sewer Improvements Paul Oehme Project # SS -014 Project Name Sanitary Sewer Replacement Type Useful Life Category Improvement Unassigned Utilities Account# 1 701-7025- 4751 Account# 3 Priority n/ a Account# 2 Account# 4 Total Project Cost: $ 2, 110,000 or rehabilitation of existing sanitary sewer with the reconstruction ofthe City street. utilities in the process to select streets an effort to realize cost projects. Prior Expenditures 2017 2018 2019 2020 2021 Total 1, 300,000 Construction 210, 000 250,000 50,000 250,000 50,000 810,000 Total Total 210, 000 250,000 50,000 250,000 50,000 810,000 Prior Funding Sources 2017 2018 2019 2020 2021 Total 1, 3-00-,-00-01 Sewer Utility Fund 210,000 250,000 50,000 250,000 50, 000 810,000 Total Total 210, 000 250,000 50,000 250,000 50,000 810,000

Capital Improvement Program 2017 rhru 2021 City of Chanhassen, MN Project W-024 Project Name Watermain Replacement Account 91 700-7025A751 Account# 3 Account #2 Account #4 Department Contact Type Useful Life Category Priority Water System Improvements Paul Oehme Improvement Unassigned Utilities n/ a Description Total Project Cost: $ 5, 220,000 went of existing water main lines in coordination with the reconstruction of the City street projects or minor fixes of water distribution for street rehabilitation projects. lity considers the condition of the existing utilities in the process to select streets for rehabilitation in an effort to realize cost savings by lidating these projects and also to avoid potential cuts in recently improved streets. If significant repairs are necessary to the existing water replacement may be the most cost effective option. Given the highly corrosive soils in the City, water main replacement is an ongoing x in the City. Prior Expenditures 2017 2018 2019 2020 2021 Total 3,325,000 Construction 75, 000 770,000 100, 000 850,000 100,000 1, 895, 000 Total Total 75,000 770, 000 100,000 850,000 100,000 1, 895,000 Prior Sources 2017 2018 2019 2020 2021 Total 3,325,000 Total Total 75,000 770,000 100,000 850,000 100, 000 1, 895,000 Budget Impact/ Other Chese projects will decrease maintenance costs.