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Home My WebLink About5L - Assessment Roll for 2008 Improvement Project 08-011 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: CITY COUNCil AGENDA REPORT AUGUST 4, 2008 5l lARRY POPPlER, ASSISTANT CITY ENGINEER CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF AN ASSESSMENT ROll FOR THE 2008 IMPROVEMENT PROJECT, AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR THE 2008 IMPROVEMENT PROJECT (PROJECT 08-011) Introduction This agenda item is necessary to set an assessment hearing and the amount to be assessed for the 2008 Improvement Project. Historv The 2008 Street Reconstruction Improvement Project #08-011 is included in the 2008 Capital Improvement Program and has received numerous City Council approvals to date. At the April 7, 2008 Council Meeting, the Council awarded bids for the improvement projects. Project 08-011 includes sanitary sewer, water main, storm sewer and street reconstruction. The City has executed a contract with SM Hentges to construct the project. The project is already considered substantially complete as the streets, driveways, and sod have already been installed. The Assessment Review Committee met on November 7,2007 to review the project, assessment method, and the proposed assessments. While the project scope and assessment method remain the same, the proposed assessments have been adjusted based on the bid and work performed. Current Circumstances The Special Assessment Committee recommends the unit method of assessment due to the uniformity of benefit received by the benefited parcels and the relative consistency in parcel size. The City Council should confirm which assessment method should be applied. Since the special assessment hearing date is proposed for September 2nd, individual property owner notices must be sent to the property owners by August 15th. The amount to be assessed must be included in the mailed notice. The City has employed a number of different strategies to keep the overall costs and assessments low. A couple of these strategies include reducing the street widths on this project to 28 feet and using existing on site granular material. www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 The assessment calculation has been computed in a manner consistent with the latest calculation methods. In 2005, restoration impacts due to utilities were subtracted from the assessment calculation. The 2008 project was also computed in that manner. Other subtractions from the assessment calculation include private driveway reconstruction and the construction of the extra width on Franklin Trail. FINANCIAL IMPACT: The total project cost for Project 08-011 is $1,497,409.00. This cost is proposed to be funded through tax levy, enterprise fund, water quality fund, capital parks fund, streets operating budget, and special assessments. Of the total project costs, $1,152,507.00 or 77% will be paid through sources other than special assessment. The proposed amount to be assessed against the benefiting properties is $344,902.00. There are 57 benefiting units in the project area that are being assessed at a 40% rate. Based on the foregoing, the proposed assessment is $6,051 per unit. This compares with the original assessment estimate of $6,973 per unit. Staff recommends that the City Council declare the costs to be assessed, order preparation of the assessment roll, and establish the Assessment Hearing date as September 2nd, 2008 for the Brooksville Hills phase I reconstruction project including Brooks Circle, Fillmore Avenue, Franklin Trail, and Itasca Avenue and authorize the required notice of public hearing to be published as per the attached resolutions. These improvements will be financed through the issuance of $943,748.00 of general obligation bonds plus approximately $553,661.00 that will be contributed from other funds (Le., Enterprise Fund, including the SewerlWater and Water Quality Funds and Capital Park Fund). ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution declaring the costs to be assessed, ordering the preparation of the proposed assessment rolls for the 2008 Improvement Project 08-011, and establishing September 2, 2008 for the assessment hearing date. 2. Deny the Resolutions for a specific reason and provide staff with direction. 3. Table this item for a specific reason. RECOMMENDED MOTION: Staff recommends alternative #1. ReVi7~J I~l Frank Boyles. euer!"' 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 08- xx A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE 2008 IMPROVEMENT PROJECT 08-011 AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF Motion By: Second By: WHEREAS, a contract has been let and costs have been determined for the improvement of Brooksville Hills Phase I, Project 08-011, the City cost for the improvements are $1,497,945.00; and WHEREAS, the City Manager notifies the City Council that such proposed assessment will be completed and filed in the City Manager's office for public inspection. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The portion of the cost of such improvements to be paid by the City is hereby declared to be $1,497,945.00, and the portion of the cost to be assessed against benefited property owners is declared to be $344,902.00. 3. Assessments shall be payable on an equal principal installment method extending over a period of 10 years for street improvements. The first installment shall be the annual principal plus interest calculated from the public hearing date to the end of this year plus twelve months of the next year and shall bear interest at the rate of 6% per annum from the date of the adoption of the assessment resolution. 4. The City Manager, with the assistance of the City Engineer shall forthwith calculate the proper amount to be specially assessed for such improvements against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and shall file a copy of such proposed assessment in the office of the City Manager for public inspection. 5. The City Manager shall upon the completion of such proposed assessment notify the City Council thereof. 6. A public hearing shall be held on the 2nd day of September, 2008, in City Council Chambers at 6:00 P.M. to pass upon such proposed assessment and at such time and place all persons owning property affected by such improvement will be given the opportunity to be heard with reference to such assessment. 7. The City Manager is hereby directed to cause a notice of the public hearing on the proposed assessment to be published once in the official newspaper of the City at least two weeks prior to the hearing, and the City Manager shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. 8. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Finance Director, except that no interest will be charged if the R:\Council\2008 Agenda Reports\08 04 08\Assess Br~lfei~!i\!lilri\sN.I9b~.com Phone 952.447.9800 / Fax 952.447.4245 be charged if the entire assessment is paid within 30 days from the adoption of the assessment. The owner may, at any time thereafter, pay to the City Finance Director the entire amount of the assessment remaining unpaid, excepting the installment portion appearing upon the current year's property tax statement. PASSED AND ADOPTED THIS 4th DAY OF AUGUST, 2008. YES NO Haugen Erickson Hedberg LeMair Millar Haugen Erickson Hedberg LeMair Millar Frank Boyles, City Manager R:\Council\2008 Agenda Reports\08 04 08\Assess Brooksville resolution.DOC