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Home My WebLink About8A Adopt Assessment Roll CSAH 12 o � rRto� N � u r� 4646 Dakota Street SE `�r�so'�A Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: AUGUST 12, 2013 AGENDA #: 8A PREPARED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR PRESENTER: LARRY POPPLER AGENDA ITEM: CONDUCT A PUBLIC HEARING TO CONSIDER A RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR THE CSAH 12 IMPROVEMENT PROJECT CITY PROJECT #12-002 DISCUSSION: Introduction Since 2007, the County has been reconstructing portions of County State Aid Highway 12. The County and City have been working to complete this final segment. This agenda item is necessary to adopt the assessment roll for the CSAH 12 Improvement project. Histo The City uses the Five Year Capital Improvement Program to plan its infrastructure improvements and the financing for capital improvements. The Sunset Avenue and County Road 12 projects propose to e�end 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. 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 Improvement 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 speciatly assess for the improvements. County Road 12 includes improvements to Sunrise View, Hillside View, Hilltop Addition, Kalscheuer's 1St Addition, and Part of S5, T114, R22. A portion of these properties were originally platted and developed in 1927. 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. On October 8, 2012, Council adopted Resolution 12-168 accepting the Feasibility Report and a Public Hearing was held on November 13, 2012 for the project. The City Council passed resolution 12-181 ordering the improvements. The City Council approved an amendment to the Cooperative Agreement at its March 25th, 2013 City Council meeting. The County has awarded this project and work has begun. The Assessment Review Committee met on several occasions to discuss this project. Most recently the Assessment Review Committee met on July 31, 2013 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 bids received and the grant proceeds approved for the CSAH 12 project. 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 July 20, July 27, and August 3, 2013. Under State Statute, the City may only assess a property up to the amount the property is specially benefitted by the public improvement. Specia� benefit is defined as the difference between fair market value before and after the project. Appraisals were completed for several properties in the project area. The appraisals suggest a special benefit which exceeds the assessment. 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. One appeal of the street assessment was receive 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 pubtic 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 30th. Property owners are allowed 30 days to pay off their assessments interest free. ISSUES: 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 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 2 street and storm sewer costs and the full cost of the sidewalk 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. 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. FINANCIAL Of the total project costs including water quality improvements, sanitary IMPACT: 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 j 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 Assessment Poiicy states that interest rates charged should be 2% � over the bonding rate. The interest rate for this project is proposed at 4.25%. The County State Aid Highway 12 Improvement Project is proposed to be financed by Special Assessments, Tax Levy, Municipal State Aid, Water Fund, Sewer Fund, Trunk Fund, Water Quality Fund, Scott County, and a Clean Water Grant. Funding sources and amounts are as shown below: Assessments $345,896.35 Sunset Ave Assessable $21,934.82 Tax Le * $60159.33 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 Quali Fund $201,141.73 Park Dedication Credit $33,750.00 WSD Grant $229,288.69 Scott Coun ** $1,291,604.06 Pro'ect Total Cost*** $3,175,616.29 * Includes $27,987.08 for street lighting for CSAH 12 Phase I. 3 **County Construction cost. Does not include right of way costs or County Administration. ***This compares to the original estimate computed as $3,364,560. The Council approved the issuance of general obligation street improvement bonds on July 22"d, 2013 and initial transfers from the Water & Sewer and Water Quality Funds for this project. A final project reconciliation will be prepared when the project is completed. The ALTERNATIVES: anticipated completion date is Fall 2013. The alternatives are as follows: 1. Approve a resolution adopting the assessment roll as submitted. 2. Approve a resolution subject to Council approved changes. RECOMMENDED MOTION 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. Alternative #1. �'� 4 O � PRIp� ti � U trl 4646 Dakota Street SE `�r�so'�A Prior Lake, MN 55372 RESOLUTION 13-xxx A RESOLUTION ADOPTING ASSESSMENTS FOR THE CSAH 12 IMPROVEMENTS PROJECT, CITY PROJECT #12-002 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 CSAH 12 Improvements Project, City Project # 12-002, 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. I 2. The proposed assessment for the CSAH 12 Improvements Project, City Project #12-002, 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. j 3. The assessment shall be payable on an equal principal method extending over a period of ten (10) years , for street and storm improvements and a period of twenty (20) years for sanitary 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 four and twenty-five hundredths (4.25) percent per annum from the date of adoption of this assessment resolution. To the first installment shall be added one hundred forty-fin►o (142) days of interest on the , entire assessment from the date this resolution is adopted to December 31, 2013. 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. PASSED AND ADOPTED THIS 12� DAY OF AUGUST, 2013. YES NO Hedber Hedbe Keene Keene McGuire McGuire Morton Morton Souku Souku Frank Boyles, City Manager � � � � � o � � a � � � o N � N N N N O� e�l a M1 4 1'�1 �p �tfl i� n � N T O a0 f O� �'/i f�M C f J .�1 ..1 R oi T �D �O !� 1� ? ri 1� d0 � vl ei A r1 eV +y rl rl � N N N N N N N N N � N � N N 1 � p O O � v1 �G n .t ao m .: v N V1 v c a � c e e a � v ��. ri n n �: � i: � e: � � `� � u `.8, u � a w ri ri .i ri ri .y �i .=� .-� � ..� iA N N N N t/� N V! V! N � �A � V� +A tD t0 t�D W b� �O 4D t0 t�0 b � ti e��1 m .�.� .�-� e��l e�1 ��-1 m e��l P'1 T MI l'�! 1'fl (R A1 f/1 Q V' R Q Q < V' O Q O N � � V! 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N S N �1 L' ''S�. Y R1 U i g 8� Y N a ti a Q � � d V ry � � � 2 � r1 � n rl W � C W = u N 4 � N v � a _ o �3� < �o� s�W W � W = _ � b Y Q i $ � �ep � {{yy h � J X � � � o a � �' 3 d � > ., m L �` ! � Jerilyn Erickson From: Nat Kale <nkale@pislwd.org> Sent: Tuesday, August 06, 2013 1:43 PM To: Jerilyn Erickson Cc: Larry Poppler; Mike Kinney Subject: Assessment Jerilyn, Our Board would like us to contest the proposed assessment on our recently acquired parcel along Spring Lake (PID 254900060). The main line of argument is that since the estimated market value of the parcel is $400, and the proposed project is not likely to significantly increase that, the proposed assessment ($8,716.41 for the CSAH 12 improvement project) is disproportionately large relative to the benefit (see MN Statutes 429.051— "The cost of any improvement, or any part thereof, may be assessed upon property benefited by the improvement, based upon the benefits received..."). I can simply draft a letter to you, but it would help me to know if there is specific information that you'll need to process it; if you have an example of a letter submitted by a previous party, I would appreciate it. Thanks, Nat Kale, AICP Prior Lake - Spring Lake Watershed District www.plslwd.Orp Direct: (952) 378-2167 • - O�ce: (952) 447-4166 1 ____---- � �� p ��M� AUG092 08/08/ 13 To the City of Prior Lake, By � �� Attn. City Clerk This letter is to serve as a formal objection to the proposed street and storm sewer assessments to be levied against our property for the County State Aid Highway 12 improvement project. Property address ; 1610 1'70�' street east , Sha,kopee Mn. 55379 Properly PIDs # 119050192 and # 119050195 Thank you for your consideration. If you have any questions or concerns, please feel free to contact us at (952} 403- 0630. 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