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Home My WebLink About9C CR 12 (#12-002) Assessment Roll and Hearing O� P ��+� ti � v � 4646 Dakota Street SE Prior Lake, MN 55372 �tNIVESO� CITY COUNCIL AGENDA REPORT MEETING DATE: JULY 8, 2013 AGENDA #: 9C PREPARED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR PRESENTED BY: LARRY POPPLER 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 COUNTY STATE AID HIGHWAY 12 IMPROVEMENT PROJECT (CITY PROJECT #12-002) DISCUSSION: Introduction Since 2007, the County has been reconstructing portions of County State Aid Highway 12 starting at State Highway 13 and moving westerly to complete the entire stretch of roadway. The County and City are working on the fourth and final segment .The purpose of this agenda item is to declare the amount to be assessed and schedule the assessment hearing for the final phase of CSAH 12. Historv The City uses the Five Year Capital Improvement Program to plan its infra- structure improvements and the financing for capital improvements. The Sun- set Avenue and County Road 12 projects propose to extend utility connec- tions to properties on Sunset Avenue and on County Road 12 west of Stem- mer Ridge Road. Many of these properties are experiencing failing septic systems and desire City services. In July of 2012, this area was annexed into the City of Prior Lake as part of the Orderly Annexation agreement known as the 6.2 area. At its August 27, 2012 meeting the City Council adopted Resolution 12-125 authorizing staff to prepare a Feasibility Report for the County Road 12 Im- provement Project as outlined in the CIP and required for the Minnesota Stat- utes Chapter 429 process. The Minnesota Statutes Chapter 429 process is required because the City Council intends to specially assess for the improve- ments. County Road 12 includes improvements to Sunrise View, Hillside View, Hilltop Addition, Kalscheuer's 1 St Addition, and Part of S5, T114, R22. A por- tion of these properties were originally platted and developed in 1927. The proposed improvements include the extension of sanitary sewer and water- main, street reconstruction, storm sewer, storm water quality, concrete curb and gutter, and appurtenant work. On October 8, 2012, Council adopted Resolution 12-168 accepting the Feasi- bility Report and a Public Hearing was held on November 13, 2012 for the project. The City Council passed resolution 12-181 ordering the improve- ments. The City Council approved an amendment to the Cooperative Agreement at its March 25�h, 2013 City Council meeting. The County has awarded this pro- ject and work has begun. 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. 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 for the sanitary sewer and watermain work due to the uniformity of benefit received by the benefited parcels. The front footage method is used for the street improvements due to the varying parcel size. 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 August 12, 2013 for the CSAH 12 Improvement Project and authorize the required notice of public hearing to be published as per the attached resolution. ISSUES: The City received a grant from the Public Facilities Authority for the sanitary sewer system connections. This grant program brings $117,407.27 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 assessed until the final grant amount was authorized. The MPCA certified the grant amount on June 27, 2013. Appraisals were obtained for representative parcels in an effort to confirm spe- cial benefit. 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 own- ers are proposed to be assessed 100% for all costs associated with the pro- posed sanitary sewer and watermain improvements after trunk improvements and grant proceeds are subtracted. The City will use Trunk Sewer Fund to fund oversizing of watermain and sanitary sewer. Existing properties will be assessed 40% of the street and storm sewer improvement costs allocated by Scott County to the City for the CSAH 12 project. The remaining 60% of the street and storm sewer costs and the full cost of the trail will be paid through State Aid and tax levy. Also included in the tax levy will be any septic system, credits per the orderly annexation agreement. 2 Of the total project costs including water quality improvements, sanitary sewer and watermain improvements, $2,823,154.73 or 89% will be paid through sources other than special assessment. The proposed amount to be assessed against the benefiting properties is $352,461.54. The City used a front footage assessment for the street improvements. The final front footage assessment rate was determined to be $19.69. The City used the front footage method because lot sizes were dissimilar. The initial estimate was $20 per front foot. There were 16 utility connections. After the trunk costs and grant proceeds were subtracted, the final assessment amount for water was determined to be $11,667.45 and sewer determined to be $4,316.66. Initial estimates calculated the water assessment to be $12,500 and the sewer assessment to be $8,500. The County State Aid Highway 12 Improvement Project is proposed to be fi- nanced by Special Assessments, Tax Levy, Municipal State Aid, Water Fund, Sewer Fund, Trunk Fund, Water Quality Fund, Scott County, and a Clean Wa- ter Grant. Funding sources and amounts are as shown below: Assessments* $352,461.54 Sunset Ave Assessable $21,934.82 Tax Lev ** $53,594.12 Munici al State Aid $181,707.97 Clean Water Grant $117,407.27 Water Fund $61,304.39 Sewer Fund $26,405.90 Trunk Fund $605,015.78 Water Qualit Fund $201,141.73 Park Dedication Credit $33,750.00 WSD Grant $229,288.69 Scott Count *** $1,291,604.06 Pro'ect Total Cost**** $3,175,616.29 *Final assessment figures will be shared at an upcoming City Council meet- ing. ** Includes $27,987.08 for street lighting for CSAH 12 Phase I. ***County Construction cost. Does not include right of way costs or County Administration. *'`**This compares to the original estimate computed as $3,364,560. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution declaring the costs to be assessed, ordering the prep- aration of the proposed assessment roll for the CSAH 12 Improvement Project 12-002, and establishing August 12, 2013 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 Staff recommends alternative #1. MOTION: 3 O � PRIp� ti � U tr� 4646 Dakota Street SE �INNES�� Prior Lake, MN 55372 RESOLUTION 13-xxx A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE CSAH 12 IMPROVEMENT PROJECT 12-002 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 CSAH 12, City Project 12-002, the City cost for the improvements are $1,884,012.23; 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 $1,531,550.69, and the portion of the cost to be assessed against benefited property owners is declared to be $352,461.54. 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 proposetl assessment notify the City Council thereof. 6. A public hearing shall be held on the 12th 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 affectetl 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