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CITY COUNCIL AGENDA REPORT
MEETING DATE: DECEMBER 9, 2013
AGENDA #: 8A
PREPARED BY: SENG THONGVANH, PROJECT ENGINEER
PRESENTED BY: SENG THONGVANH
AGENDA ITEM: PUBLIC HEARING TO CONSIDER APPROVAL OF A RESOLUTION ORDER-
ING THE MAPLE LANE, MUSHTOWN ROAD, AND PANAMA AVENUE
STREET IMPROVEMENT PROJECT (PROJECT #14-011) AND PREPARATION
OF PLANS AND SPECIFICATIONS
DISCUSSION: Introduction
The purpose of this agenda item is to hold the Public Hearing to consider approval
of a resolution ordering the Maple Lane, Mushtown Road, and Panama Avenue
Improvement Project and the preparation of plans and specifications. A super ma-
jority (4/5) is needed to approve the resolution.
Histo
Each year the City reconstructs street segments that are scheduled for reconstruc-
tion as part of its Capital Improvement Program (CIP) and have exceeded their
useful design life. The City uses the Capital Improvement Program and its Pave-
ment Management Program to plan for infrastructure improvements and the fi-
nancing for capital improvements. At its September 9, 2013 meeting the City
Council adopted Resolution 13-126 authorizing staff to prepare a Feasibility Re-
port for the Maple Lane, Mushtown Road, and Panama Avenue Improvement Pro-
ject as outlined in the CIP.
The Maple Lane / Mushtown Road / Panama Avenue neighborhood is considered
in the report and includes improvements to Maple Acres, O'Rourke Addition, Parts
of S 11, T 114, R 22 and Parts of S 2, T 114, R 22. These properties were platted
and developed in the 1950's and 1960's. A map of the project area (Figure 1) is
included in the Feasibility Report. The proposed improvements include street re-
construction, sewer and water construction, storm sewer, storm water quality, con-
crete curb and gutter, and appurtenant work. The Feasibility Report also includes
total estimated costs, preliminary assessment amounts, and a project financing
summary. Also included in the report are design criteria, estimates and infor-
mation on watermain, sanitary sewer, storm sewer, and streets. Details on each
can be found in the Feasibility Report.
On November 12, 2013, the City Council accepted the feasibility report and sched-
uled the public hearing.
If this project proceeds, the City intends on using the M.S. Chapter 429 process as
this process applies to all projects that will be financed in whole or in part through
special assessments or bond proceeds.
Current Circumstances
The properties deemed to specially benefit from the improvements, in most cases
the properties abutting the streets located in the project area, are subject to as-
sessment. Each of the affected property owners have been notified in accordance
with the statute regarding tonight's Public Hearing.
A Public Information Meeting was held on December 5, 2013 to provide the prop-
erty owners an opportunity to discuss the project in an informal setting prior to the
Public Hearing. Staff presented the proposed improvements, project costs, esti-
mated assessments and answered general questions regarding the project. Com-
ments will be presented at the Public Hearing.
Property acquisition on public improvement projects can be a long process. The
process for this project must begin immediately in order to keep the project on
schedule. Property acquisition services are a special service which cannot be
completed by City Staff. In anticipation of the project, the City solicited pricing
from WSB and Associates for property acquisition services. WSB and Associates
recently performed property acquisition services for the Arcadia lmprovement Pro-
ject and the Welcome Avenue Improvement Project. WSB and Associates pro-
vided a quote in the amount of $24,020.00 for these services. Other expenses in-
cluding appraisals, title work, and other expenses will be passed through to the
City. The City has evaluated the quote and believes the costs to be reasonable.
Conclusion
City Staff is prepared to discuss each of the concerns presented at the Public
Hearing. If the Council deems the issues that have been brought up need to be
addressed in the project plans and specifications, direction could be given to staff.
The purpose of this Public Hearing is to determine whether the project should
move forward to the next step, which is preparation of plans and specifications
which will provide greater information about expected project cost and, therefore,
the assessments associated with the improvements. Once the plans and specifi-
cations are completed, they will be submitted to the City Council for approval and
authorization to advertise for bids. The Council could decide not to continue with
the project upon receipt of bids. A separate Assessment Hearing will be con-
ducted following review of the proposed assessments by the City Council's As-
sessment Review Committee.
In summary, the project is feasible from an engineering and economic standpoint.
If the preparation of the plans and specifications is approved, the work will be com-
pleted by City staff.
ISSUES: The Assessment Review Committee met on November 6th and November 21 St, 2013
at which time the following issues were discussed and recommendations made:
Assessment Map
The Assessment Review Committee recommends assessing the properties as
shown on the assessment map.
Watermain and Sanitarv Sewer
As a first time improvement, pursuant to the Assessment Policy, the watermain
and sanitary sewer will be assessed at 100% of the project costs.
2
Street and Storm Sewer Reconstruction
Pursuant to the Assessment Policy, the street and storm sewer reconstruction
should be assessed at up to 40% of the total project cost against the benefiting
properties. The remaining amounts should be recovered through the general ad
valorem property tax.
Assessment Method
The Assessment Review Committee recommends the unit method of assessment
for the due to the fact that the lots in the project area are of similar size and/or
value. The estimated assessment rate is proposed at $24,362 / unit for utilities
and $11,768 / unit for street improvements on Maple Lane and Mushtown Road.
Due to the long stretch of pipe on Panama Avenue which is necessary to extend
water and sewer to the Panama residents, the Assessment Review Committee
discussed additional funding sources to lower the overall utility assessments.
Review Lift Station Options
As a way to reduce easement acquisition and reduce cost, the Assessment Re-
view Committee asked for further analysis of a lift station option. Two lift station
options were analyzed. Both options ended up costing more money, raising the
assessment rate. A third option was reviewed which reduces watermain and sani-
tary sewer pipe but increases necessary easements. A memo discussing these
options is attached with this report.
FINANCIAL The Maple Lane, Mushtown Road, and Panama Avenue Street Improvement Pro-
IMPACT: ject is proposed to be financed by Special Assessments, tax levy, Street Oversize
Fund and Water Quality Fund. Funding sources and amounts are as shown below:
Assessments $1,217,294
Street Oversize Fund $56,152
Water Qualit Fund $30,000
Tax Lev $437,300
Pro'ect Total Cost $1,740,746
ALTERNATIVES: 1. Approve Resolution 13-XX ordering the Maple Lane, Mushtown Road, Panama
Avenue Improvement project and preparation of plans and specifications.
2. Deny this item for a specific reason and provide staff with direction.
3. Table this item until some date in the future.
RECOMMENDED Staff recommends alternative #1.
MOTION:
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4646 Dakota Street SE
'�IN�so'��' Prior Lake, MN 55372
RESOLUTION 13-xxx
ORDERING IMPROVEMENTS AND PREPARATION OF PLANS AND SPECIFICATIONS FOR MAPLE
LANE, MUSHTOWN ROAD, AND PANAMA AVENUE (PROJECT #14-011); FINANCING THE MAPLE
LANE, MUSHTOWN ROAD AND PANAMA AVENUE IMPROVEMENT PROJECT TO BE UNDERTAKEN
BY THE CITY AND ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS
UNDER THE INTERNAL REVENUE CODE
Motion By: Second By:
WHEREAS, the Prior Lake City Council on its own initiative has determined that it desires to complete the Public
Improvement Project to Maple Lane, Mushtown Road, and Panama Avenue; and
WHREAS, on November 12, 2013; the City Council adopted Resolution 13-168 accepting the Feasibility Report
and calling for a Public Hearing to be held on the Maple Lane, Mushtown Road, and Panama Avenue
Improvement Project which includes sanitary sewer, watermain, storm sewer, aggregate base, concrete
curb and gutter, bituminous surfacing, and appurtenant work; and
WHEREAS, ten days mailed notice and two weeks published notice of the hearing was given, and the hearing was
held on the 9th day of December, 2013, at which time all persons desiring to be heard were given an
opportunity to be heard thereon; and
WHEREAS, since the project was initiated by the City Council it must be approved by 415ths vote in accordance with
Minnesota Statutes 429.031 Subdivision 1(fl; and
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. Such improvement is necessary, cost-effective, and feasible as detailed in the feasibility report.
3. The City Engineer is hereby authorized to prepare plans antl specifications for the improvements
delineated in City Council Resolution 13-168 adopted on November 12, 2013 and by the required
statutory 4/5ths vote does hereby order the project.
4. The City Engineer is hereby designated as the Engineer for these improvements and is authorized to
record engineering expenses in the Construction Fund (#501-48378).
5. The Mayor and City Manager are authorized to execute the City's Standard Professional Services
Contract with WSB and Associates for provide property acquisition Services for the Maple Lane,
Mushtown Road, and Panama Avenue construction project for a base price in the amount of
$24,020.00 plus expenses. Funding for these engineering services will be drawn from the Construction
Fund Account #501-48378-505.
6. The Engineer shall prepare plans and specifications for the making of such improvements for Maple
Lane, Mushtown Road, and Panama Avenue.
7. The City Council authorizes the following preliminary funding sources and corresponding transfers to
the Construction Fund for the project:
Assessments $1,217,294
Street Oversize Fund $56,152
Water Qualit Fund $30,000
Trunk Fund $437,300
Pro'ect Total Cost $1,740,746
8. The City has tletermined to make a declaration of official intent ("Declaration") to reimburse certain
estimated costs for this project from proceeds of bonds in accordance with the Internal Revenue
Service Reimbursement Regulations (Treasury Reg. 1.150-2).
9. The City may tleclare other separate statements of reimbursement intent in connection with specific
public improvements projects as they are initiated under Minnesota Statutes Chapters 429 and 444, or
for other capital projects, with the understanding that such additional declarations of reimbursement
intent will supplement this resolution. All reimbursed expenditures will be capital expenditures, costs of
issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of
the Reimbursement Regulations.
10. This Declaration has been made no later than 60 days after payment of any original expenditure to be
subject to a reimbursement allocation with respect to the proceeds of bonds, except for the following
expenditures:
a. costs of issuance of bonds;
b. costs in an amount not in excess of $100,000 or five percent of the proceeds of an issue;
or
c. "preliminary expenditures" up to an amount not in excess of 20 percent of the aggregate
issue price of the issue or issues that are reasonably expected by the City to finance the
project for which the preliminary expenditures were incurred. The term "preliminary
expenditures" includes architectural, engineering, surveying, bond issuance, and similar
costs that are incurred prior to commencement of acquisition, construction or rehabilitation
of a project other than land acquisition, site preparation, and similar costs incident to the
commencement of construction.
11. This Declaration is an expression of the reasonable expectations of the City based on the facts and
circumstances known to the City as the date hereof. The anticipated original expenditures for the
Projects and the principal amount of the bonds are consistent with the City's budgetary and financial
circumstances. No sources other than proceeds of bonds to be issued by the City are, or are
reasonably expected to be reserved, allocated on a long term basis, or otherwise set aside pursuant to
the City's budget or financial policies to pay such Project expenditures.
12. This Declaration is intended to constitute a Declaration of the Official Intent for the purposes of the
Reimbursement Regulations.
PASSED AND ADOPTED THIS 9T" DAY OF DECEMBER 2013.
YES NO
Hedber Hedber
Keene Keene
McGuire McGuire
Morton Morton
Souku Souku
Frank Boyles, City Manager
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Memo
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Date: December 2, 2013
To: Assessment Review Committee
From: Engineering Department
Subject: Maple Lane, Mushtown Road, Panama Avenue
RE: Lift Station Option Costs Analysis
City staff was directed by the City Council and Assessment Review Committee to evaluate
additional alternatives for sanitary sewer service for properties located on Panama Avenue as
part of the Maple Lane, Mushtown Road, Panama Avenue Improvement Project. The original
proposed layout can be found on Exhibit 4 of the Feasibility Reported dated November 2013.
This layout proposes to install sanitary sewer mainline from Village Lake Drive on the east side
of Panama Avenue down to the south end of the project limit. Realizing the redundancy of the
proposed layout and long inefficient run of sewer pipe, staff was requested to evaluate costs
associated with using a lift station as an alternative.
This memo evaluates 3(three) new options. The first two options evaluate the use of a lift
station while the third option evaluates an alternative alignment for the sanitary sewer on Maple
Lane. The three options are presented below.
Option 1 (Exhibit A):
Reduction of Costs from Original Layout:
Sanitary Sewer: 870' ($42,000)
Sanitary Sewer Structure: 4 structures ($10,000)
Watermain: 50' ($1,300)
Total = ($65,000)
Additional Costs from Original Layout:
Lift Station & Forcemain: $150,000
Easement: 7 000 SF ($4-5/SF $28,000-35,000)
Total = $185,000
Difference: $120,000
Additional Costs Per Unit: $3,400
Summary:
Option 1 would eliminate the most footage of sanitary sewer along Panama Avenue. However,
this option would also require additional easement as shown on the exhibit. Reduction in
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
watermain length would also be minimal. Savings from reduction in utilities would not offset
additional costs associated with lift station construction and easement acquisition. In terms of
maintenance costs, the lift station will also add additional maintenance responsibilities and
energy costs.
Ontion 2 (Exhibit B):
Reduction of Costs from Original Layout:
Easement: 3,000 SF ($4-5/SF $15,000)
Sanitary Sewer: 680' ($33,000)
Watermain: 600' ($22,000)
Restoration: $10,000
Tota1= ($80,000)
Additional Costs from Original Layout:
Lift Station and Forcemain: $140,000
Total = $140,000
Total: $60,000
Additional Costs Per Unit: $1,600
Summary:
Option 2 reduces the length of sanitary sewer by 680' and watermain by 600'. Easement
acquisition would also be reduced by approximately 3,000 SF as shown on the exhibit. There
will also be cost savings due to less restoration required along Panama Avenue. This alignment
however will require additional easement on the north side of 17146 Maple Lane. Easement on
this property is also proposed to be obtained along Panama Avenue. Acquisition of the required
easements will significantly impact the property. In terms of maintenance costs, the lift station
will also add additional maintenance responsibilities and energy costs.
Option 3 (Exhibit C):
Reduction of Costs from Original Layout:
Sanitary Sewer: 300' ($14,400)
Sanitary Sewer Structures: 2 structures ($5,000)
Watermain: 300' ($11,0001
Total = ($35,400�
Additional Costs from Original Layout:
Easement: 5 100 SF ($4-5/SF $20,000-25,000)
Tota1= $25,000
Difference: ($10,000)
Reduction of Costs Per Unit: $260
Summary:
This option would reduce some system redundancy by eliminating sanitary sewer and watermain
on Maple Lane. Approximately 300' of sewer and watermain would be eliminated with this
alignment. This option eliminates some of the deeper sanitary sewer on Maple Lane as well, As
with Option 2, this alignment will require easement on the north side of 17146 Maple Lane. As
previously discussed, easement acquisition will significantly impact this property.
Recommendation
Options 1& 2 increase costs and the assessment to the property owners and adds a lift station to
the City system. Due to the increased cost and potential for additional maintenance for the lift
station, Staff recommends against these two options. Option 3 has a nominal decrease in the
costs and the assessment and eliminates some deep sanitary sewer on Maple Lane, however it
has a significant impact to 17146 Maple Lane due to a 30 foot wide easement acquisition.
Acquiring this easement would reduce this property's ability for future additions. City Staff
recommend either the original sanitary sewer and watermain alignment as proposed in the
original feasibility report or Option 3. Comments from the public at the Public Hearing may
assist the City in selection of the appropriate alignment.
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L.EGEND
� PROPOSED FIRE HYDRANT
o PROPOSED SANITARY MH
t l PROPOSED LIFT STATION
�� � • � � •� PROPOSED FORCEMAIN
� PROPOSED WATERMAIN
� ° PROPOSED SANITARY SEWER
� PROPOSED 30' EASEMENT
�°� CITY PROJECT#14-011
" � EXHIBIT A
.t,;� : ���.. OPTION 1
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LEGEND
U PROPOSED FIRE HYDRANT
c� PROPOSED SANITARY MH
C i PROPOSED UFT STATION
•� � • � -� •� PROPOSED FORCEMAIN
PROPOSED WATERMAIN
• • PROPOSED SANITARY SEWER
� PROPOSED 30' EASEMENT
o` eR'ok CITY PROJECT #14-011
� , �" � �
" OPTION 2 EXHIBIT B
�'�o.�FS�.
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t...LGEND
t� PROPOSED FIRE HYDRANT
c� PROPOSED SANITARY MH
�-- PROPOSED WATERMAIN
� °• PROPOSED SANITARY SEWER
� PROPOSED 30' EASEMENT
o � rRr
U i -:� CITY PROJECT #14-011
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LEGEND
STREET AND UTILITY
� UTILITY ONLY
�� PR/O
� � � CITY PROJECT #14-011
�' EXHIBIT 1
"° � PROJECT AREA MAP 1
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