HomeMy WebLinkAbout8B Adopt Assessment Roll Sunset Avenue O .� PRip
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4646 Dakota Street SE
`�r�so'�A Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: AUGUST 12, 2013
AGENDA #: 8B
PREPARED BY: SENG THONGVANH, PROJECT ENGINEER •
PRESENTER: SENG THONGVANH
AGENDA ITEM: CONDUCT A PUBLIC HEARING TO CONSIDER A RESOLUTION
ADOPTING THE ASSESSMENT ROLL FOR THE SUNSET AVENUE
IMPROVEMENTS PROJECT #13-011
DISCUSSION: I ntroduction
This agenda item is necessary to adopt the assessment roll for the Sunset
Avenue Improvements Project (City Project #13-011).
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 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.
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 12-124 ,
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 improvements.
The Sunset Avenue neighborhood is considered in the report and includes
improvements to Sunrise View, Sunrise View 1St Addition, and Part of Gov't
lots 1& 2 S8, 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. The recommendation of the Feasibility Report was to proceed with
the project.
On October 8, 2012, Councit adopted Resolution 12-167 accepting the
Feasibility Report and calling for a Public Hearing on November 13, 2012
for the 2013 Improvement Project. At the November 13, 2012 Public
Hearing, a number of people spoke regarding the project.
In addition to the Public Hearing, the City has held three informational
meetings to discuss the project. The last informational meeting was held
on April 17, 2003 after bids were received for the project.
On February 25, 1013 the City Council approved the project plans and
specifications and authorized the advertisement for bids for the Sunset
Avenue Improvements Project. The City received bids on March 27, 2013
for this project. A total of three bids were received for the project.
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 Sunset Avenue 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 prope�ty 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. Appraisals were conducted several properties on the
project. The appraisals suggest that the benefit exceeds the assessment.
The property owners who believe that the proposed assessment exceeds
the speciat 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 30t Since property owners must be 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.
2
The City will use 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 improvements. 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 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 assessed until the final grant amount was
authorized. The MPCA certified the grant amount on June 27, 2013.
FINANCIAL
IMPACT: The proposed amount to be assessed against the benefiting properties is
$798,786.84. There are 26 benefiting units in the project area that are
being 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 assessment 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
' proceeds 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 Assessment Policy states that interest rates charged should be 2%
over the bonding rate. Interest rates for this project are proposed at 4.25%.
The Sunset Avenue Improvements Project is proposed to be financed by
Special Assessments, Tax Levy, Sewer Trunk Fund, and a Clean Water
Grant. Funding sources and amounts are as shown below:
Assessments $798,786.84
Tax Le $361,645.40
Clean Water Grant $110,919.39
Trunk Fund $1,962.00
Pro'ect Total Cost* $1,273,313.63
*Includes indirect costs
The Council approved the issuance of general obligation street
improvement bonds on July 22, 2013 and initial transfers from the Water &
Sewer and Water Quality Funds for this project. A fina� project
reconciliation will be prepared when the project is completed. The
anticipated substantial completion is Fall 2013.
3
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
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4646 Dakota Street SE
'�i�v� Prior Lake, MN 55372
RESOLUTION 13-xxx
A RESOLUTION ADOPTING ASSESSMENTS FOR THE SUNSET AVENUE IMPROVEMENTS
PROJECT, CITY PROJECT #13-011
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 Sunset Avenue
Improvements Project, City Project # 13-011.
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 Sunset Avenue Improvements Project, City Project #13-011, 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 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-two (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 12TH DAY OF AUGUST, 2013.
YES NO
Hedber Hedber
Keene Keene
McGuire McGuire
Morton Morton
Souku Souku
Frank Boyles, City Manager
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