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HomeMy WebLinkAbout8A - Special Assessment Public Hearing - Brooksville Hills Phase II MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT October 19, 2009 SA lARRY POPPlER, ASSISTANT CITY ENGINEER (1) SPECIAL ASSESSMENT PUBLIC HEARING FOR THE BROOKSVILLE HillS PHASE" RECONSTRUCTION PROJECT AND (2) CONSIDER APPROVAL OF A RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR THE PROJECT. Introduction This agenda item is necessary to adopt the assessment roll for the Brooksville Hills Phase II Reconstruction Project that includes Mandan Avenue, Franklin Circle, Summer Street, Itasca Avenue from Crossandra to Summer Street, Robinson Circle, and Franklin Trail from Brooks Circle to Summer Street. Historv The 2009 Street Reconstruction Project #09-011 is included in the 2009 Capital Improvement Program and has received numerous City Council approvals to date. At the April 6, 2009 Council Meeting, the Council awarded bids for the improvement project. Project 09-011 includes sanitary sewer, water main, storm sewer and street reconstruction. The City has executed a contract with Quiring Excavating to construct the project. The project is mostly complete as much of the street work, driveways, and sod have already been installed. At its regular meeting of September 21, 2009, the Council approved Resolution 09-128, which declared the cost to be assessed, ordered the preparation of the assessment roll and established the date of the Assessment Hearing as October 19, 2009 for the Brooksville Hills Phase II Reconstruction Project. The Assessment Review Committee met on October 20, 2008, March 23, 2009, and September 28, 2009 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 All benefiting property owners have been mailed a Statement of Special Assessments, which included information pertinent to their property such as the total proposed assessment amount and the assessment rate. The Notice of the Special Assessment Hearing was published in the newspaper on September 26, October 3, and October 10, 2008. www.cityofpriorlake.com RICouncil\2009 Agenda Reportsl10 19 09IBrookSvJ(~~~@a4Jb&800 / Fax 952.447.4245 Under State Statute, the City may only assess a property up to the amount the property is specially benefited by the public improvement. Special benefit is defined as the difference between fair market value before and after the project. The Property owners who believe that the proposed assessment exceeds the special benefit have a right to appeal their assessments in District Court. In order to perfect their right to appeal their assessment a property owner must submit their written and signed objections to the proposed assessment to the City Manager prior to the Assessment Hearing or present it to the City Council at the Assessment Hearing. Within 30 days of the Assessment Hearing, the property owner must also file the appeal in District Court. No appeals were received at the time this report was prepared. We have apprised each of the property owners of our Deferred Assessment Program. ISSUES: 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 width on this project from 31 feet to 28 feet and using existing on site granular material. 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 2009 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. The Assessment Review Committee met on September 28, 2009 to review the project, assessment method, and the proposed assessments. While the project scope and assessment method remain the same, the Assessment Review Committee proposed adjustments to the assessments based on the bid and work performed. Those adjustments have been made and calculated resulting in an overall decrease from the original proposed assessment provided to property owners. Number of Units The total number of units that will be assessed has been increased to allocate one unit to the Water Treatment Facility. Street and Storm Sewer Reconstruction Pursuant to the assessment policy, the street and storm sewer reconstruction should be assessed at up to 40% of the total project cost against the 58 benefiting properties, based upon the special benefit created for each such property. Assessment Method The Assessment Review Committee recommends the unit method of assessment for the Brooksville Hills Phase II Reconstruction Project due to the fact that the lots in the project area are of similar size and/or value. The assessment rate is proposed at $6,367/unit. The original estimated assessment computed at the time of the Feasibility Report was $6,928/unit. As a note of comparison, in 2008, the City assessed $6,051/unit on the Brooksville Hills R:\Council\2009 Agenda Reports\ 10 19 09\Brooksville PH II AH agenda.DOC Phase I project. The difference in the assessments can be primarily attributed to the different soil conditions. FINANCIAL IMPACT: The total project cost for Project 09-011 is $1,463,677.00. Funding for this project is being provided by the Water and Sewer Fund, Water Quality Fund, General Fund Streets operating budget, special assessments, and street improvement bonds. The Council approved the issuance of general obligation street improvement bonds in May, 2009 and initial transfers from the Water & Sewer and Water Quality Funds in April, 2009 for this project. A final project reconciliation will be prepared when the project is completed. The anticipated completion date is Fall 2010. The Council should open the public hearing at the time set forth in the notice, receive public input and then close the public hearing. If certain issues need additional study, those issues could be referred to the Assessment Review Committee for evaluation and recommendation; otherwise, it would be appropriate to approve the attached resolution. Statute requires that special assessments be certified to the County by November 30th. Since property owners must be allowed 30 days to payoff their assessments interest free, the assessment roll must be adopted prior to November 1, 2009. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution adopting the assessment roll as submitted. 2. Approve a resolution subject to Council approved changes. 3. Close the hearing and direct the Special Assessment Review Committee to examine issues or concerns raised at the hearing and provide a recommendation for Council action at a future meeting. RECOMMENDED Alternative # 1 MOTION: Reviewed by: Fr!5~~i~anager R:\Council\2009 Agenda Reports\10 19 09\Brooksville PH II AH agendaDOC RESOLUTION ADOPTING ASSESSMENTS FOR THE BROOKSVILLE HILLS PHASE" RECONSTRUCTION PROJECT Motion By: Second By: WHEREAS, Pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessments for the Brooksville Hills Phase II Reconstruction Project 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 proposed assessment for the Brooksville Hills Phase II Reconstruction Project, a copy of which is attached hereto and made part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 3. The assessments shall be payable on an equal principal method extending over a period of ten (10) years for paving. 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 six (6) percent per annum from the date of adoption of this assessment resolution. To the first installment shall be added seventy-three (73) days of interest on the entire assessment from the date this resolution is adopted to December 31, 2009. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 4. 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 the payment, except that no interest will be charged if the entire assessment is paid within thirty (30) days, and the individual may at any time thereafter, pay to the City's Finance Director the entire amount of the assessment remaining unpaid, excepting the installment portion appearing upon the current year's property tax statement. 5. The Finance Director shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of Scott County. Such assessments shall be collected and paid to the City in same manner as other municipal taxes. 6. The portion of the cost of such improvements to be paid by the City is hereby declared to be $1,094,391.00, and the portion of the cost to be assessed against benefited property owners is declared to be $369,286.00. PASSED AND ADOPTED THIS 19TH DAY OF OCTOBER, 2009. YES NO I Haugen I Erickson I Hedberg I LeMair I Millar HauQen Erickson Hedberg LeMair Millar Frank Boyles, City Manager www.cityofpriorlake.com RICouncil\2009 Agenda Reportsl1 0 19 09IAH Brr~~~i~s~~6n,~~O / Fax 952.447.4245