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Home My WebLink About5G - Maplewood Street Improvement Project Assessments O� PRION ti U 4646 Dakota Street SE Prior Lake_ MN 55372 ��NNESo-,V- CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 8, 2014 AGENDA#: 5G PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTED BY: SENG THONGVANH AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE AS- SESSED AND ORDERING PREPARATION OF AN ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR THE MAPLEWOOD STREET IMPROVEMENT PROJECT (PROJECT#14-012) DISCUSSION: Introduction This agenda item is necessary to set an assessment hearing and to establish the amount to be assessed for the Maplewood Street Improvement Project. History The Maplewood Street Improvement Project #14-012 is included in the Capital Improvement Program and has received numerous City Council approvals to date. At the April 14, 2014 Council Meeting, the Council awarded bids for the improve- ment project. Project 14-012 includes sanitary sewer, water main, storm sewer and street reconstruction. The City has executed a contract with Valley Paving to construct the project. The project is under construction. Much of the underground utilities have been completed and the street work will take place shortly. The Assessment Review Committee met on November 21, 2013 and December 4, 2013 to review Maplewood Street Improvement Project, assessment method, and the proposed assessments. While the project scope and assessment method re- main the same, the proposed assessments have been adjusted based on the bids received for the project and additional costs for granular placement. Current Circumstances The Special Assessment Committee has reviewed and agrees with the assess- ment map, assessment rate, and method of assessment. The front-foot method for the assessment is used due to the project area containing both residential and commercial property. Conclusion The City Council has confirmed the use of front footage assessment for the pro- ject. The Assessment Review Committee will meet prior to assessment hearing notices are sent out to review the final assessment amounts. Since the special assessment hearing date is proposed for October 13th, individual property owner notices must be sent to the property owners by September 29th. The amount to be assessed must be included in the mailed notice. ISSUES: The Assessment Policy states that interest rates charged should be 2% over the bonding rate. The current bonding rate is at 2.01% which would put the interest rate charge for the project at 4.01%. The City tries to employ strategies to keep the overall costs and assessments low. This includes minimizing the construction limits and impacts to adjacent proper- ties. The assessment calculation has been computed in a manner consistent with the latest calculation methods and the Assessment Policy. The assessment calculation was based on 40% of the costs for street and storm sewer construction. The sum of the cost is divided by the total number of front footage within the project area. FINANCIAL The initial total project cost for Project 14-012 was $524,191.17. Due to higher IMPACT: groundwater table encountered onsite, the proposed street section will need to be revised. The street section currently calls for 1' of granular material. Due to the wet conditions, the Geotechnical Engineer is recommending the use of 2' of gran- ular material. This will add approximately $17,376 to the cost for street construc- tion. The total project cost was revised to $541,567.17. Of the total project costs including sanitary sewer and watermain improvements, $421,191.59 or 78% will be paid through sources other than special assessment. The proposed amount to be assessed against the benefiting properties is $120,375.55. There are 6 residential properties and 2 commercial properties in the project area that are being assessed at 40% of the street and storm sewer im- provements based on bids received for the Maplewood Street Improvement Pro- ject. A total of 1,197 lineal front footage was calculated based on the assessment policy and use of existing plats. Based on the foregoing, the proposed assess- ment is $100.56 per front footage. This compares with the original assessment estimate of$109.38 per front footage. The Maplewood Street Improvement Project is proposed to be financed by Special Assessments, Tax Levy, Water Fund, and Sewer Fund. Funding sources and amounts are as shown below: EAssessments $120,375.55 Tax Le $180,563.33 Water Fund $167,307.86 Sewer Fund $73,320.43 Project Total Cost" $541,567.17 "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 October 13th, 2014 for the Maplewood Street Improvement Project and authorize the required notice of public hearing to be published as per the attached resolu- tion. The Council approved the issuance of general obligation street improvement bonds in August, 2014 and initial transfers from the Water Fund and Sewer Fund in April, 2014 for this project. A final project reconciliation will be prepared when the project is completed. The anticipated completion date is Fall 2015. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution as part of the consent agenda declaring the costs to be assessed, ordering the preparation of the proposed assessment rolls for the Maplewood Street Improvement Project 14-012, and establishing October 13, 2014 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 Motion and second for alternative#1. MOTION: 3 O� PRI() U hj 4646 Dakota Street SE Prior Lake,MN 55372 RESOLUTION 14-xxx A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE MAPLEWOOD STREET IMPROVEMENT PROJECT 14.012 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 Maplewood Street, Project 14-012, the City cost for the improvements are $541,567.17; 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 $421,191.59, and the portion of the cost to be assessed against benefited property owners is declared to be $120,375.55. 3. Assessments shall be payable on an equal principal installment method extending over a period of 10 years for street 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 4.01% 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 13th day of October, 2014, 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 http://sp1ash/teams/am/0ctober 4 2010/09 08 2014/Maplewood Street Set Assessment Res.doc 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 SEPTEMBER 2014. VOTE Hedberg Keeney McGuire Morton Soukup Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager 2