City Council Worksession

South St. Paul JOINT WORKSESSION COUNCIL & EDA SSP City Hall 125 3rd Avenue North Training room Monday, December 9, 2019 6:00 p.m. Council Tours, with meeting starting immediately after (approx. 7:00 p.m.) AGENDA: 1. Wold Architects presentation of Space Needs Study, including tour of City Hall and Public Works facility (no attachment) 2. Library Survey – Final Draft 3. Master Development – Multi-family Expansion Plans 4. 11th Avenue Drainage Discussion 5. Water Tower Logo/Color Selection (19th & Thompson) 6. One Life Health – Rental Licensing 7. 2020 Meeting Schedule 8. CIP Revision 9. Concord Street Improvement – Assessment Discussion 10. Council Comments & Questions A COUNCIL WORKSESSION REPORT DATE: DECEMBER 9, 2019 5 DEPARTMENT: Engineering ADMINISTRATOR: JRH AGENDA ITEM: Alice Water Tower Logo ACTION TO BE CONSIDERED: Information only: for input and discussion OVERVIEW: The City is moving forward with the reconditioning of the Alice Water Tower, which includes removal of the existing coatings and repainting of the entire interior and exterior of the tower. The reconditioning work is proposed to be completed in 2020. Water towers are very visible landmarks for a community and as such the painting typically includes the installation of a City’s name and/or logo and in some cases more elaborate designs. Below are pictures of the existing Alice Tower and the Thompson Avenue Tower, which was the last one that was repainted. The Thompson Tower previously had “South St. Paul” spelled out but that was replaced with the City logo as shown on the photo below. The current Alice Tower has “South St. Paul” on two sides and an “All American City” shield on two sides. Based the direction taken on the Thompson Tower, I would propose that we utilize the City logo on the Alice Tower when it is repainted, however I wanted to seek Council input on that decision. Alice Tower Thompson Tower A COUNCIL WORKSESSION REPORT DATE: DECEMBER 9, 2019 8 DEPARTMENT: Engineering ADMINISTRATOR: JRH AGENDA ITEM: Capital Improvement Plan Revision ACTION TO BE CONSIDERED: Information item only; for input & discussion OVERVIEW: The City’s Capital Improvement Plan and the anticipated 2020 project budget for next year includes the Seidl’s Lake Lift Station project at a budgeted cost of $781,000 and a 2020 street improvement project (Stickney Avenue area reconstruction) at a budgeted cost of approximately $1.2 million. To assist in funding the Seidl’s Lake project, the City sought $781,000 of General Obligation bond money from the legislature to fund the lift station project in 2018. It appears that the estimated cost used for the funding application was taken from a feasibility study completed in 2004. The City was successful in obtaining the grant and the final grant agreement was executed in late 2019. UPDATE: The consultant selected to complete the project design of the Seidl’s Lake Lift Station has been reviewing alignment options and design scenarios as part of the final design process. All of the scenarios require the extension of a forcemain and gravity storm sewer system for a four block section of 4th Street South from 14th Avenue South to 10th Avenue South. The system downstream of 10th Avenue South has sufficient capacity to accept the new water without any modifications based on the modeling. For the purpose of the project cost, the engineers have assumed directional drilling where feasible to minimize the surface impacts where possible, but there are segments that must be installed by direct bury that will require street impacts. At this time, the consultant’s estimate on the total construction cost based on the most efficient design option is approximately $1.5 million. As stated above the design estimate assumes construction techniques to minimize the surface impacts and restoration. However, a review of the four block section of 4th Street South being impacted by the project indicates that: 1. A majority of the existing watermain is cast iron and approximately 70 years old 2. One block of the sanitary sewer main is corrugated metal pipe of unknown condition 3. The street condition ratings are only one level below requiring a full reconstruction 4. 4th Street South has all side frontages, which are not assessable under the City’s current assessment policy As has been discussed with the Council, the City has substantial infrastructure needs that have been exacerbated by limited past investment in utility infrastructure (specifically watermain) improvements/replacements on past projects. It is staff’s opinion that the City must begin taking City Council WS Report – Capital Improvement Plan Revision December 9, 2019 Page 2 of 2 a more holistic improvement focus when looking at projects to begin addressing these needs in the most cost effective manner (i.e. completing utility improvements with street projects and vice versa). With that in mind and the factors listed above, I am recommending that instead of utilizing trenchless techniques for the forcemain installation, we complete a full reconstruction of the roadway with watermain and sanitary improvements within this 4 block section. This would add to the overall project costs, but it would provide some cost savings for the forcemain installation (direct bury versus directional boring) that could be captured to help pay for the street reconstruction. SUMMARY: Based on the consultant’s current estimate, the Seidl’s Lake Lift Station project cost is estimated at $1.8 million including 20% for design and construction services. The City has secured $781,000 in grant dollars for the project and the remaining cost will be shared between South St. Paul, West St. Paul, and Inver Grove Heights. The exact percentage split has not been determined, but the cost sharing scenarios developed at the time of the feasibility estimate that South St. Paul’s share will be 26% - 76% of the costs not funded through the grant. This would result in $265,000 to $775,000 of City contribution. If we move forward with a more holistic approach on the four block section of 4th Street South, we estimate an additional $450,000 of City costs for a total cost to the City of up to $1.2 million would be needed for the project. Based on the expenditures that have been programmed in the 2020 budget, I would recommend that the City delay the 2020 street improvement project (Stickney Avenue area reconstruction) and direct those dollars to fund the City’s share of the Seidl’s Lake Lift Station improvements and the reconstruction of the 4 block section of 4th Avenue South including replacement of the CIP watermain and improvements to the sanitary sewer system. If the Council agrees with this direction, the next steps will be to meet with the partner Cities and the Water Management Organization to get approval of this concept and to discuss formalizing the exact cost split for the project. A key factor will be that the other communities agree that the cost savings that will be realized on the forcemain installation if we fully reconstruct the street will be paid to South St. Paul to offset the cost of the reconstruction. A COUNCIL WORKSESSION REPORT DATE: DECEMBER 9, 2019 9 DEPARTMENT: Engineering ADMINISTRATOR: JRH AGENDA ITEM: Concord Street Improvement – Assessment Discussion ACTION TO BE CONSIDERED: Information only: for input and discussion OVERVIEW: As with all street projects, City staff is recommending a portion of the Concord Street improvement project cost be assessed to the property owners adjacent to the project corridor. Since the project’s inception, the funding scenarios have assumed $1.0 million of assessments. That figure was an approximation at the time of the concept plan and was used only for budgeting purposes with no review of the corridor properties. In general, the project corridor is difficult to apply the City’s standard assessment policy to, given the varying frontage types, access differences, property sizes, and varied land uses. As outlined in the 429 process, a City can only assess the amount the project improves the property value. In the case of this project, the strict application of the City’s assessment policy would result in the assessments to some properties that we believe would be beyond that threshold. Over the last few months, Kimley Horn and City Staff have been gathering property information, reviewing the City’s assessment policy, and developing various assessment scenarios to determine a fair method for determining assessment values. Based on this work we feel it may be necessary to apply a cap on the assessment amounts that is tied to a certain percentage of the property’s value. At the work session we will provide a summary of the assessment scenarios reviewed and a recommendation on the capped percentage rate to be applied for Council consideration and input.