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HomeMy WebLinkAbout9A - 2010 Improvement Project for CR 12 (#10-011) O~ PR104> ~ '(' F-. 'li" ... ~ u n, ~llVNESOi~ 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT APRIL 19, 2010 9A LARRY POPPLER, ASSISTANT CITY ENGINEER CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF AN ASSESSMENT ROLL FOR THE 2010 IMPROVEMENT PROJECT, AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR THE 2010 IMPROVEMENT FOR COUNTY ROAD 12 (PROJECT 10- 011) Introduction This agenda item is necessary to set an Assessment Hearing and to establish the amount to be assessed for the 2010 Improvement to County Road 12. Councilor Erickson will not be participating in the discussion of this item or voting on it as his property abuts County Road 12. Historv The 2010 Reconstruction of County Road 12 #10-011 is included in the 2010 Capital Improvement Program and has received numerous City Council approvals to date. At the January 19, 2010 City Council meeting the City held the Public Hearing for the improvements. Since the Public Hearing, the County has collected bids on January 26, 2010 and awarded a contract on February 3, 2010 to Chard Tiling and Excavating for the County Road 12 project. The project area considered in the report includes portions of Butternut Beach, Sunset Shore, Spring Lake Townsite, Auditor's Subd #12, and Christies 151 Add'n. A map of the project area (Exhibit 1) is included in the Feasibility Report and includes County Road 12 (Spring Lake Road) from Walnut Ave to 900 feet west of Howard Lake Road. The proposed improvements include street reconstruction, storm sewer, storm water quality improvements, concrete curb and gutter, and appurtenant work. City utilities under the street are also proposed to be repaired or reconstructed based on need. Selected sections of sanitary sewer are proposed for replacement. Watermain is proposed to be replaced for certain street segments. The design, bidding, and construction for this project will be coordinated by the Scott County Highway Department. The Assessment Review Committee met on January 12, 2010 and March 26, 2010 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 revised costs. www.cityofpriorlake.com Phone 952.447.9800 I Fax 952.447.4245 Current Circumstances The Special Assessment Committee recommends using the unit method for the 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 May 17, 2010 individual property owner notices must be sent to the property owners by May 3, 2010. The amount to be assessed must be included in the mailed notice. The Assessment Hearing is a necessary step in the 429 process. If all or a portion of a public improvement project will be paid through the use of "special assessments" the City is required to follow the procedure set out in Minnesota Statutes Chapter 429. Normal County Roadway projects that are not funded in part by special assessments would not need to follow this procedure. ISSUES: 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 benefiting properties. The remaining amounts should be recovered through the general ad valorem property tax. Assessment MaD The Assessment Review Committee recommends assessing the properties as shown on the assessment map. Creekview Circle Creekview Circle is a private driveway whose only access is off of County Road 12. The four properties off of the gravel drive are proposed to be assessed one unit each. City staff has met with the property owners and they are not interested in upgrades of their private drive and do not feel that a full assessment to each property is fair. The benefit appraisal completed on Creekview Circle indicates that the benefit test is being met. In similar situations in the past, the City has assessed for this situation. Several residents spoke at the Public Hearing against the assessment of the Creekview Circle properties. The Assessment Review Committee has completed an analysis of similar situations and how they were handled in the past. Based on this analysis, the Assessment Review Committee feels that since the benefit test is being met and due to consistency with other projects in the past, that Creekview Circle properties should be a part of the assessment. Assessment Method The Assessment Review Committee recommends the unit method of assessment for the 2010 Improvement Project due to the fact that the lots in the project area are of similar size and/or value. The proposed amount to be assessed against the benefiting properties is $256,165.00. There are 91 benefiting units in the project area that are being assessed at 40% of the street and storm sewer improvements. Based on the foregoing, the proposed assessment is $2,815 per unit. This compares with the original assessment estimate of $3,434 per unit. 2 Conclusion 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 May 17, 2010 for the 2010 Improvement for County Road 12 and authorize the required notice of public hearing to be published as per the attached resolution. FINANCIAL IMPACT: The 2010 Improvement Project is proposed to be financed by special assessments, tax levy, municipal state aid, water quality fund, sewer and water fund, Prior Lake Spring Lake Watershed District grant, private funding, and Scott County funding. Tonight's approval does not approve any payments to the County for the project. Those costs will be approved by the City Council after the City is invoiced by the County for actual costs. Updated funding sources and amounts are as shown below: ITEM COST ASSESSMENT TAX MSA SEWER WATER WSD PRIVATE COUNTY ESTIMATE LEVY & QUALITY GRANT FUNDING FUNDING WATER FUND FUND I Countv Rd 12 $3,100,505 $256,165 $34,355 $350,000 $2,459,985 I Sidewalk/Trail $112,767 $112,767 Watermain $751,150 $751,150 and Sanitary Sewer Water Quality $61,104 $30,552 $30,552 Improvements Private $120,658 $120,658 Driveway Proqram I TOTAL $4,146,184 $256.165 $147.122 $350,000 $751,150 $30,552 $30,552 $120,658 $2,459,985 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 2010 Improvement of County Road 12, and establishing May 17, 2010 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 Alternative NO.1. MOTION: Reviewed (J I ,J ~/- Frank Boyles, Cituler; 3 O~ PRIO~ .... '('" [..., I' .... ~ U h'J ~l1VNESOi~ 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 RESOLUTION 10- xx A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE 2010 IMPROVEMENT OF COUNTY ROAD 12 PROJECT 10-011 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 County Road 12, Project 10-011, the City cost for the improvements are $1,686,198; 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 $1,430,033.00, and the portion of the cost to be assessed against benefited property owners is declared to be $256,165.00. 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 1ih day of May, 2010, 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 www.cityofpriorlake.com R\Council\2010 Agenda RepQrtsl04 19 1 mr.nllnty Rn"r! 1? Rsrnnc:tn lC1jpn R"c:n nnr. Phone 952.447.9800 I Fax 952.447.4245 interest accrued to the date of payment, to the City Finance Director, except that no interest will 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 19TH DAY OF April, 2010. YES NO Myser Erickson Hedberg Keeney Millar Myser Erickson Hedberg Keeney Millar Frank Boyles, City Manager R:\Council\2010 Agenda Reports\04 19 1 O\County Road 12 Reconstruction Reso.DOC