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Home My WebLink About8J - Assessment Rolls CITY COUNCIL AGENDA REPORT DATE: AGENDA #: PREPARED BY: SUBJECT: SEPTEMBER 18, 2000 8J SUE MCDERMOTT, CITY ENGINEER CONSIDER APPROVAL OF THE FOLLOWING RESOLUTIONS: q{:) s.~ OO-~ AND OO-~ DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLLS FOR THE 2000 IMPROVEMENT PROJECTS (PROJECT 12-00 OAK RIDGE AREA STREET RECONSTRUCTION AND PROJECT 13-00 FAIRLAWN SHORES TRAIL AND FISH POINT ROAD OVERLAY). ~"l ~3 OO-~ AND 00-* ESTABLISHING THE DATE OF THE ASSESSMENT HEARINGS FOR THE 2000 IMPROVEMENT PROJECTS (PROJECT 12-00 OAK RIDGE AREA IMPROVEMENTS AND PROJECT 13-00 FAIRLAWN SHORES TRAIL AND FISH POINT ROAD OVERLAY. DISCUSSION: HISTORY Both Project 12-00 and Project 13-00 are included in the 2000 Capital Improvement Program and have received numerous City Council approvals to date. At the June 19, 2000 Council Meeting, the Council awarded bids for the improvement projects. Project 12-00 includes storm sewer and street reconstruction on Oak Ridge Circle, Flandrau Circle, Fulbright Circle, Indian Ridge Circle, Euclid Avenue, Maves Trail, Forsythe Road, Shannon Trail, Prior Circle and Shannon Circle. The City has executed a contract with Northwest Asphalt to construct the project. Project 13- 00 includes a bituminous overlay on portions of Fish Point Road and Fairlawn Shores Trail and watermain repair on Fish Point Road. Both projects will be substantially complete by this meeting. The Assessment Review Committee met on June 12, 2000 to review these projects and the proposed assessments. 162ao.~~~knAve. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 1 The purpose of the committee is to assist the staff in its evaluation of all properties in accordance with the City's Assessment Policy and review the staff proposed assessment rolls. The committee consists of two councilmembers (currently Councilmembers Petersen and Gundlach), the City Manager, Finance Director, and City Engineer. The Assessment Review Committee (ARC) recommended assessing both projects on a unit basis. The unit basis assessment means each property owner in a project, regardless of front footage, will have the same assessment. The ARC recommended conducting the assessment hearings for the projects after the contract award when the project was substantially complete. CURRENT CIRCUMSTANCES 1) Project 12-00, Oak Ridge Court/Prior Hill Area Reconstruction: The ARC recommended to assess the Oak Ridge Court/Prior Hill Area properties on a unit basis due to the homes within the project area being comparable in size and market value. A letter (attached) was received from one resident of the Prior Hill subdivision who expressed opposition to combining the two areas and assessing a single lot rate for each of the two areas. The total project cost for Project 12-00 is $1,167,292, It is proposed to be funded through tax levy, trunk reserve funds and assessments. $797,269 is to be paid through a tax levy and trunk reserve; and 40% of the assessable project costs, or $370,023, be assessed against the benefiting properties. There are 82 benefiting units in the project area. Based on the foregoing, the proposed unit assessment is $4,512.47. 2) Project 13-00, Fish Point Road and Fairlawn Shores Trail Overlay Improvements: The Assessment Review Committee recommended to assess the Fish Point Road and Fairlawn Shores Trail properties on a unit basis as well due to the homes within the project area being comparable in size and market value and each received essentially the same benefits. The school district owns the equivalent of twenty-eight (28) assessable units along Fish Point Road. G:IAGENDA(\99ASSESS.DOC FINANCIAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: G:IAGENDA(\99ASSESS.DOC The total project cost for the Fish Point Road and Fairlawn Shores Trail project is $162.826 and is proposed to be funded through tax levy, trunk reserve funds and assessments. $104,147 is to be paid through a tax levy and trunk reserve; and 40% of the assessable project costs, or $58,679, be assessed against the benefiting properties. There are 63 benefiting units (this includes the School District's 28 equivalent units) in the project area. Based on the foregoing, the proposed unit assessment is $931.42. Staff recommends that the City Council declare the costs to be assessed, order preparation of the assessment rolls, and establish the Assessment Hearing date as October 16, 2000 for both projects as per the attached resolutions. These improvements will be financed through the issuance of $1,125,000 of general obligation bonds. The alternatives are as follows: 1 . Approve Resolutions OO-XX and OO-XX declaring the costs to be assessed and ordering the preparation of the proposed assessment rolls for Projects 12-00 Oak Ridge/Prior Hill Area Improvements and 13-00 Fish Point Road and Fairlawn Shores Trail Overlay Improvements; and approve Resolutions OO-XX and DO-XX establishing October 16, 2000 for the assessment hearings. 2. Deny the resolutions for a specific reason and provide staff with direction. 3. Table this item for a specific reason. A motion and second to approve Resolutions DO-XX and 00- XX declaring the costs to be assessed and ordering the preparation of the proposed assessment rolls for Projects 12-00 Oak Ridge/Prior Hill Area Improvements and 13-00 Fish Point Road and Fairlawn Shores Trail Overlay Improvements; and approve Resolutions DO-XX and DO-XX establishing October 16, 2000 for the assessment hearings. T ~() RESOLUTION OO~ 1-0 RESOLUTION DECLARING COSTS TO BE ASSESSED 'IV N E S o't ~ AND ORDERING PREPARATION OF PROPOSED ASSESSMENTS OAK RIDGE CIRCLE, FLANDRAU CIRCLE, FULBRIGHT CIRCLE, INDIAN RIDGE CIRCLE, EUCLID AVENUE, MAVES TRAIL, FORSYTHE ROAD, SHANNON TRAIL, PRIOR CIRCLE AND SHANNON CIRCLE IMPROVEMENTS. CITY PROJECT 12.00 \.J f SECOND BY M G MOTION BY: WHEREAS, a Contract has been let and costs have been determined for the improvement of Oak Ridge Circle. Flandrau Circle. Fulbright Circle. Indian Ridge Circle, Euclid Avenue. Maves Trail. Forsythe Road. Shannon Trail, Prior Circle and Shannon Circle Project 12-00 and the contract price for such improvements is $953,818 and the expenses incurred or to be incurred in the making of such improvements amount to $213,474, so that the total cost of the improvements will be $1,167.292.00. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. The portion of the cost of such improvements is to be paid by the City is hereby declared to be $797,269.46, and the portion of the cost to be assessed against benefited property owners is declared to be $370,022.54. 2. 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 a minimum of 8% per annum from the date of the adoption of the assessment resolution. 3. 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 he shall file a copy of such proposed assessment in his office for public inspection. 4. The City Manager shall upon the completion of such proposed assessment, notify the Council thereof. Passed and adopted this 18th day of September, 2000, YES NO Mader *= Mader Ericson Ericson Gundlach Gundlach Petersen Petersen Vacant Vacant 16200\~1a~s~~.tlla,tf'aoo..ake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER .. ~. ~~uT'- RESOLUTION oo-~I 4~ ~/NNESO~~ RESOLUTION ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR OAK RIDGE CIRCLE, FLANDRAU CIRCLE, FULBRIGHT CIRCLE, INDIAN RIDGE CIRCLE, EUCLID AVENUE, MAVES TRAIL, FORSYTHE ROAD, SHANNON TRAIL, PRIOR CIRCLE AND SHANNON CIRCLE IMPROVEMENTS CITY PROJECT #12-00 MOTION:~ SECOND: JP WHEREAS, by a resolution passed by the Council on September 18, 2000, the City Manager was directed to prepare a proposed assessment of the cost of improvements for Projects 12-00 Oak Ridge Circle, Flandrau Circle, Fulbright Circle, Indian Ridge Circle, Euclid Avenue, Maves Trail, Forsythe Road, Shannon Trail, Prior Circle and Shannon Circle Reconstruction; and WHEREAS, the City Manager notifies the Council that such proposed assessment will be completed and filed in his office for public inspection. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. A hearing shall be held on the 16th day of October, 2000, in City Council Chambers at 7:30 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. 2. The City Manager is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing, and he 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. 3. 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 entire assessment is paid within 30 days from the adoption of the assessment. He 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 18th day of September, 2000 Mader I I Mader Ericson Ericson Gundlach \ Gundlach Petersen / \ Petersen Vacant Vacant YES NO 16~Q~Uessk~.6dC, Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER .. .T.....--.....-........-............---.........-- RESOLUTION OO~~.l 1-0 :Jr ~~ /IVNESO RESOLUTION ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR FISH POINT ROAD AND FAIRLAWN SHORES TRAIL OVERLAY IMPROVEMENTS CITY PROJECT #13-00 MOTION: \\~ SECOND: 0? WHEREAS, by a resolution passed by the Council on September 18, 2000, the City Manager was directed to prepare a proposed assessment of the cost of improvements for Projects 13-00 Fish Point Road and Fairlawn Shores Trail Overlay Improvements; and WHEREAS, the City Manager notifies the Council that such proposed assessment will be completed and filed in his office for public inspection. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. A hearing shall be held on the 16th day of October, 2000, in City Council Chambers at 7:45 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. 2. The City Manager is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing, and he 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. 3. 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 entire assessment is paid within 30 days from the adoption of the assessment. He 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 18th day of September, 2000 Mader \ J Mader Ericson Ericson Gundlach Gundlach Petersen [I Petersen Vacant Vacant YES NO {Seal} Frank Boyles City Manager City of Prior Lake l<Gi.~_'lA$SMI~Ffslio<tilI:ior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER ."'__........___."~"m_~~_,,"~.._.__"~~__..___"_~'______"..,.,.._ RESOLUTION 00," ~ l\.)J RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENTS FOR FISH POINT ROAD AND FAIRLAWN SHORES TRAIL OVERLAY IMPROVEMENTS, CITY PROJECT 13.00 ~ ~~ SECOND BY MOTION BY: WHEREAS, a Contract has been let and costs have been determined for the improvement of Fish Point Road and Fairlawn Shores Trail Project 13-00 and the contract price for such improvements is $128,972 and the expenses incurred or to be incurred in the making of such improvements amount to $33,854, so that the total cost of the improvements will be $162,826. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. The portion of the cost of such improvements is to be paid by the City is hereby declared to be $104,147, and the portion of the cost to be assessed against benefited property owners is declared to be $58,679. 2. 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 a minimum of 8% per annum from the date of the adoption of the assessment resolution. 3. 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 he shall file a copy of such proposed assessment in his office for public inspection. 4. The City Manager shall upon the completion of such proposed assessment notify the Council thereof. Passed and adopted this 18th day of September, 2000, YES NO Mader E Mader Ericson Ericson Gundlach Gundlach Petersen Petersen Vacant Vacant {Seal} F rank Boyles City Manager City of Prior Lake 16200\RE@@(OO~~SF.BSJ;lID(l}€Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER June 12,2000 fj\Q~L ~ I~ -00 <..C:.(r.e-~c.a.. 1m it @ [E a [IJ it fill UIJ JUN 1 4 2000 ~ By_ Bud Osmundson, P.E. Director of Public Works City of Prior Lake 16200 Eagle Creek Avenue SE Prior Lake, MN 55372 RE: Street Reconstruction Project for Prior Hill and Oak Ridge Court Subdivisions Dear Mr. Osmundson: I am writing to you in regards to the above referenced street improvement project and the assessment method being considered by the assessment committee. It has been explained to me that the city staff intends to recommend utilizing a lot method assessment and combining the Oak Ridge Court subdivision with the Prior Hill subdivision and using a single lot rate for each area. I feel that this recommendation is not valid for the following reasons: 1. The existing street conditions are much worse in the Oak Ridge Court subdivision and those street pavements are much older than the streets in Prior Hill. In fact, the Prior Hill subdivision streets were the last streets installed without concrete curb and gutter in the 1980's. 2. The lot sizes in the Oak Ridge Court subdivision are significantly larger than the Prior Hill subdivision requiring more street pavement to be built per lot. 3. The Prior Hill subdivision streets were not included in previous Capital Improvement Programs as these streets were not in the same condition as Oak Ridge Court, however, these streets were added to this project area recently. 4. The feasibility report did not have a single rate for both areas, but had each area identified with different rates. This is the most compelling reason not to have a single rate for both areas as the feasibility report presented at the public hearing did not contain that rate but a rate for Area 1 and Area 2. Only one resident made a statement on having the assessment rate combined for both areas as he was in favor ofthe project. In summary, if this assessment rate is combined, essentially the smaller lots in Prior Hill will be paying a larger assessment and the larger lots in Oak Ridge Court will be paying a smaller assessment. I believe if this project proceeds, the fairest way to assess would be to have a lot unit assessment but a different rate for Area 1 (Oak Ridge Court) and for ""9""--..--..''.'..--.'."---.......----.-- Area 2 (Prior Hill). This methodogy would be consistent with the feasibility report, which provides more specific details on a project than city policy or practice. The notion that each lot is being provided the same service thus the cost should be the same is not totally correct. It simply costs more to provide the same service to the Oak Ridge Court lots as they are much larger. These streets will cost more on a per lot unit basis whether they are 40%, 60% or 100% assessed of the project costs. Finally, it is one thing to be included in a project where the other streets are clearly in different condition and where our streets are not over a minimum service life of20 years and another matter when we are now going to help lower the assessments for a larger lot subdivision whose streets are much older and worse shape. I hope this letter has outlined my concerns on the assessments and I hope you take this letter to the assessment committee on Monday night. Thank you for considering this letter and whatever your decision is in this matter, please let me know. Sincerely, #/~ " Bruce Loney 5870 Shannon Circle SE Prior Lake, MN 55372