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HomeMy WebLinkAbout8B Special Assessment Project #11-011 and Adopting Assessment RollU tr1 4646 Dakota Street SE �Nxsso'O Prior Lake. NM 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: OCTOBER 17, 2011 AGENDA #: 8B PREPARED BY: LARRY POPPLER, CITY ENGINEER / INSPECTIONS DIRECTOR PRESENTER: LARRY POPPLER AGENDA ITEM: (1) SPECIAL ASSESSMENT PUBLIC HEARING FOR THE 2011 IMPROVEMENT PROJECT CITY PROJECT #11 -011, BOUDIN'S NEIGHBORHOOD IMPROVEMENTS, PHASE I; AND (2) CONSIDER APPROVAL OF A RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR THE PROJECT. DISCUSSION: Introduction This agenda item is necessary to adopt the assessment roll for the 2011 Improvement project, Boudin's Neighborhood, Phase I Reconstruction Project which includes Grayling Circle, Rutgers Street, and Watersedge Trail. History The 2011 Improvement Project #11 -011 is included in the 2011 Capital Improvement Programs and has received numerous City Council approvals to date. At the June 6, 2011 Council Meeting, the Council awarded bids for the improvement project. Project #11 -011 includes sanitary sewer, water main, storm sewer and street reconstruction. The City has executed a contract with Pember Companies, Inc. to construct the project. The project had a late start this year but within a three week period, the project will be mostly complete. At its regular meeting of September 19, 2011, the Council approved Resolution 11 -114, which declared the cost to be assessed, ordered the preparation of the assessment roll and established the date of the Assessment Hearing as October 17, 2011 for the 2011 Improvement Project. The Assessment Review Committee met on September 8, 2011 to review the project, assessment method, and the proposed assessments. At the September 19, 2011 City Council Meeting, the Council also passed Resolution 11 -113 amending the Assessment Policy. The amendment allowed the City to charge a lower interest rate than the previous assessment policy. 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 benefitting 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 24, October 1, and October 8, 2011. Under Minnesota Statute, the City may only assess a property up to the amount the property is specially benefitted 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. Conclusion 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 30 Since property owners must be allowed 30 days to pay off their assessments interest free, the assessment roll must be adopted prior to November 1, 2011. ISSUES: The commercial properties near Timothy Avenue and Boudin Street were evaluated by Nagell Appraisal and Consulting. They have determined that these commercial properties show no value benefit as the access for these properties are not part of the improvements. Therefore they are not proposed to be assessed. On the other hand the appraisals affirm the proposed special benefit in all cases for the residential properties which are part of this project. The City tries to employ strategies to keep the overall costs and assessments low. These strategies include keeping the street widths on this project at 24 feet for some streets, reducing street widths on other streets, and minimizing the construction limits. The assessment calculation has been computed in a manner consistent with the latest calculation methods and the Assessment Policy. Subtractions from the assessment calculation include: private driveway reconstruction, Crossroads development contribution, trunk stormwater, utility impacts, the Rutgers signal components, and the parking area for Boudins Park. The assessment calculation was based on 40% of the costs for street and storm sewer construction of both phases of the Boudins reconstruction. The sum of the cost is divided by the total number of units in both project phases. The 2012 project assessment would be the same amount. 2 FINANCIAL The total project cost for Project #11 -011 is $2,737,588.54 This cost is IMPACT: proposed to be funded through tax levy, water fund, sewer fund, water quality fund, grants, and special assessments. Of the total project costs including water quality improvements, sanitary sewer and watermain improvements, $2,002,754.14 or 73% will be paid through sources other than special assessment. The proposed amount to be assessed against the benefiting properties is $734,834.40. There are 87.2 benefiting units in the project area that are being assessed at 40% of the street and storm sewer improvements. (The fractional unit occurs because the fourplex in the development is considered to be 3.2 units pursuant to our special assessment policy.) Based on the foregoing, the proposed assessment is $8,427 per unit. This compares with the original assessment estimate of $8,182 per unit. The Council approved the issuance of general obligation street improvement bonds in August, 2011 and initial transfers from the Water & Sewer and Water Quality Funds in August, 2011 for this project. A final project reconciliation will be prepared when the project is completed. The anticipated completion date is Fall 2012. 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 3 PLO 1 U t� �jNrvyso�� 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 11 -xxx A RESOLUTION ADOPTING ASSESSMENTS FOR THE 2011 IMPROVEMENT PROJECT, CITY PROJECT #11.011 BOUDIN'S NEIGHBORHOOD IMPROVEMENTS, PHASE I 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 2011 Improvement Project, City Project # 11 -011, Boudin's Neighborhood Improvements, Phase I. 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 2011 Improvement Project, City Project #11 -011, Boudin's Neighborhood Improvements, Phase I, 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 benefitted by the proposed improvement in the amount of the assessment levied against it. 3.The assessment 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 four and six hundredths (4.06) percent per annum from the date of adoption of this assessment resolution. To the first installment shall be added seventy -five (75) days of interest on the entire assessment from the date this resolution is adopted to December 31, 2011. 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 $2,002,754.14 and the portion of the cost to be assessed against benefitted property owners is declared to be $734,834.40. PASSED AND ADOPTED THIS 17th DAY OF OCTOBER, 2011. YES NO M ser M ser Erickson Erickson Hedberg Hedber Keeney Keene Soukup Souku Frank Boyles, City Manager