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HomeMy WebLinkAbout9B Sunset Ave (#13-011) Assessment Roll and Hearing O� P ��� � � u � 4646 Dakota Street SE Prior Lake, MN 55372 .i COUNCIL AGENDA REPORT MEETING DATE: JULY 8, 2013 AGENDA #: 9B PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTED BY: SENG THONGVANH AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF AN ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR THE SUNSET AVENUE IMPROVEMENTS PROJECT (CITY PROJECT #13- 011) DISCUSSION: Introduction This agenda item is necessary to set an assessment hearing and to establish the amount to be assessed for the Sunset Avenue Improvements Project. Hi StOry The City uses the five-year Capital Improvement Program to plan its infrastruc- ture improvements and the financing for capital improvements. The Sunset Avenue and County Road 12 projects propose to extend utility connections to properties on Sunset Avenue and on County Road 12 west of Stemmer Ridge Road. Many of these properties are experiencing failing septic systems and desire City services. Sunset Avenue was annexed into the City of Prior Lake in 2012 as part of the Orderly Annexation agreement known as the 6.2 area. At its August 27, 2012 meeting the City Council adopted Resolution 12-124 authorizing staff to prepare a Feasibility Report for the 2013 Sunset Avenue Improvements Project as outlined in the CIP and required for the Minnesota Statutes Chapter 429 process. The Minnesota Statutes Chapter 429 process is required because the City Council intends to specially assess for the im- provements. The Sunset Avenue neighborhood is considered in the report and includes im- provements to Sunrise View, Sunrise View 1 St Addition, and Part of Gov't lots 1 & 2 S8, T114, R22. A portion of these properties were originally platted and developed in 1927. Many of these properties are experiencing failing septic systems and desire City services. The proposed improvements include the extension of sanitary sewer and watermain, street reconstruction, storm sewer, storm water quality, concrete curb and gutter, and appurtenant work. The rec- ommendation of the Feasibility Report was to proceed with the project. On October 8, 2012, Council adopted Resolution 12-167 accepting the Feasi- bility Report and calling for a Public Hearing on November 13, 2012 for the 2013 Improvement Project. At the November 13, 2012 Public Hearing, a num- ber of people spoke regarding the project. In addition to the Public Hearing, the City has held three informational meet- ings to discuss the project. The last informational meeting was held on April 17, 2013 after bids were received for the project. On February 25, 1013 the City Council approved the project plans and specifi- cations and authorized the advertisement for bids for the Sunset Avenue Im- provements Project. The City received bids on March 27, 2013 for this project. A total of three bids were received for the project. Current Circumstances The project includes storm sewer, sanitary sewer, lift station, watermain, con- crete curb and gutter, aggregate base, bituminous surfacing, and appurtenant work. The construction of this project is proposed to be funded through as- sessments, tax levy, grant, and Trunk Sewer and Water Fund. Conclusion The Special Assessment Committee has reviewed and agrees with the as- sessment map, assessment rate, and method of assessment. The unit method for the assessment is used due to the uniformity of benefit received by the benefited parcels and the relative consistency in parcel size. ISSUES: The City received a grant from the Public Facilities Authority for the sanitary sewer system connections. This grant program brings $110,919.39 towards the project cost. Because the grant proceeds have a direct bearing on the amount of the assessments, the City needed to wait to declare the amount to be as- sessed until the final grant amount was authorized. The MPCA certified the grant amount on June 27, 2013. The City has secured appraisals for representative properties in an effort to as- sure that the proposed assessments are defensible. Additional appraisals are being completed for additional properties prior to the Assessment Hearing. FINANCIAL The Assessment Policy states that interest rates charged should be 2% over IMPACT: the bonding rate. Interest rates will be shared at the Assessment Hearing. The assessment calculation has been computed in a manner consistent with the latest calculation methods and the Assessment Policy. The property owners are proposed to be assessed 100% for all costs associated with the proposed sanitary sewer and watermain improvements. The City will use the Trunk Sewer Fund to fund oversizing of sanitary sewer. Existing properties will be assessed 40% of the street and storm sewer improvement costs for Sunset Avenue. The proposed future lots will be assessed 100% of the street and storm sewer im- provements. The remaining 60% of the street and storm sewer costs will be paid through the tax levy. Also included in the tax levy will be any septic system, credits per the orderly annexation agreement. The proposed amount to be assessed against the benefiting properties is $804,036.84. There are 26 benefiting units in the project area that are being 2 assessed at 40% of the street and storm sewer improvements. Another 10 units that make up the proposed future lots will be assessed 100% of the street and storm sewer improvements. Based on the foregoing, the proposed street and storm sewer assessment is $9,138.34 per unit for the existing properties and $22,845.86 for proposed future lots. This compares with the original assess- ment estimate of $10,000 per unit and $25,200 per unit, respectively. There are a total of 36 utility connections. After the trunk costs and grant pro- ceeds were subtracted, the final assessment amount for water was determined to be $4,865.58 and sanitary sewer to be $4,522.79. Initial estimates calculated the water assessment to be $5,700 and sanitary sewer to be $3,100. The Sunset Avenue Improvements Project is proposed to be financed by Spe- cial Assessments, Tax Levy, Sewer Trunk Fund, and a Clean Water Grant. Funding sources and amounts are as shown below: Assessments* $804,036.84 Tax Lev $356,395.40 Clean Water Grant $110,919.39 Trunk Fund $1,962.00 Pro'ect Total Cost** $1,273,313.63 *Includes indirect costs 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 August 12, 2013 for the Sunset Avenue Improvements Project and authorize the required notice of public hearing to be published as per the attached reso- lution. 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 Sunset Avenue Im- provements Project 13-011, and establishing August 12, 2013 for the assessment hearing date. 2. Deny the Resolutions for a specific reason and provide staff with direc- tion. 3. Table this item for a specific reason. RECOMMENDED Staff recommends alternative #1. MOTION: 3 O � PRIp� H � U tr1 4646 Dakota Street SE �''INx�so`��' Prior Lake, MN 55372 RESOLUTION 13-x�cx A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE SUNSET IMPROVEMENTS PROJECT 13-011 AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF Motion By: Second By: WHEREAS, Costs have been determined for the improvements of Sunset Avenue, Project #13-011, the City cost are $1,273,313.63; 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 $1,273,313.63, and the portion of the cost to be assessed against benefited property owners is declared to be $804,036.84. 3. Assessments shall be payable on an equal principal installment method extending over a period of 10 years for street improvements and 20 years for sewer and water 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 4.25 % 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 12� day of August, 2013, in City Council Chambers at 7:00 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 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 8th DAY OF JULY, 2013. YES NO Hedber Hedber Keene Keene McGuire McGuire Morton Morton Souku Souku Frank Boyles, City Manager 2