HomeMy WebLinkAbout9C - Downtown Street Project
DATE:
AGENDA #:
PREPARED BY:
SUBJECT:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
SEPTEMBER 7, 2004
9C
STEVE ALBRECHT, CITY ENGINEER
CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE
ASSESSED, ORDERING THE PREPARATION OF AN ASSESSMENT ROLL, AND
ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR THE
DOWNTOWN STREET RECONSTRUCTION AND RAINWATER GARDEN
CONSTRUCTION PROJECT, PROJECT 04-01.
HISTORY
The Downtown Street Reconstruction and Rainwater Garden Project are included in
the 2004 Capital Improvements Program and have received several City Council
approvals to date.
The project was awarded to S.M. Hentges and Sons at the April 5, 2004 City Council
meeting. Project 04-01 includes street, watermain, and storm sewer reconstruction
along with landscaping and rainwater garden improvements on Main Avenue and
Dakota Street. The project will be substantially complete by September 30, 2004.
On November 11, 2003 a contract with Xcel Energy was executed for the installation
of streetlights as part of the project. Additionally the City requested that Xcel Energy
bury overhead power along CR 21 from Hastings Avenue to west of Main Avenue
and on Dakota Street from Hastings Avenue to Erie Avenue. The cost for this work
of $87,051 is being paid through the City Requested Facilities Surcharge (CRFS)
Rider and therefore is not included in the project cost. A second phase of overhead
power burial is being contemplated for the remainder of the downtown area north of
CR 21. Xcel Energy is currently preparing an estimate for the Phase 2 burial of
overhead power for consideration by the City. If the City precedes with Phase 2 the
cost for that work will be included in the CRFS and not the project.
On June 21, 2004 the City Council approved a contract with Vesely Electric for the
electrical service connections to downtown buildings required due to the Phase 1
burial of overhead power as described above. The cost for this work is not included
in the CRFS and therefore is included in the project costs. If Phase 2 of the
overhead power burial listed above is requested by the City, additional electrical
service connections to buildings will be required. An estimate for this additional cost
has been included in the project costs, but will be removed if. Phase 2 burial of
overhead power is not completed.
The Special Assessment Committee met on September 1, 2004 to review the project
and the proposed assessments.
G:\Agenda\Agenda04\04-01 ASSESSHEARING.DOC www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
CURRENT CIRCUMSTANCES
The Special Assessment Committee recommends the front footage method of
assessment be used rather than unit or acreage methods because of the
considerable variances in parcel sizes in the downtown. It is necessary that the City
Council confirm this determination. Since the special assessment hearing date is
proposed for the October 4,2004 meeting, individual property owner notices must be
sent to the residents by September 19, 2004. The amount to be assessed is
required to be included in the mail notice.
The total project cost for Project 04-11 is $1,763,480. It is proposed to be funded
through the tax levy, Met Council Grant, Muncipal State Aid (MSA), Tax Increment
Financing (TIF) Bonds and special assessments as shown below.
A total of $785,550 of the project cost will be paid through MSA, TIF Bonds and a
Rain Garden Grant. The balance of the project of $977,930 will be paid through tax
levy and special assessments. The proposed amount to be assessed against
benefiting properties is $391,172 or 40% of the project costs. City owned parcels will
pay $82,110. The per front foot assessment cost based on 3,290 feet of assessable
frontage (excluding City frontage) is $119fff. This cost is approximately 5% less than
the project feasibility report estimated at 125fff.
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 4, 2004 for the Downtown Street Reconstruction and Rainwater Garden
Project and authorize the required notice of public hearing to be published as per the
attached resolutions.
FINANCIAL
IMPACT:
The total project cost for Project 04-01 is $1,763,480. The costs of the project are as
follows:
Construction Contract
Engineering, Legal, Admin. (26%)
Phase 1 & 2 Electrical Services
Street Lights
$1,248,000
$ 324,480
$ 98,000
$ 93,000
Total... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...$1 ,763,480
It is proposed to be funded as described below:
Municipal State Aid
TI F Bonds
City Tax Levy
Rain Garden Grant
Special Assessments
$ 406,800
$ 360,000
$ 586,758
$ 18,750
$ 391,172
Total.. . .. . .. . .. . . .. .. . .. . . .. .. . .. . .. . . .. . .. .. . . .. . .. $1 ,763,4 8 0
G:\Agenda\Agenda04\04-0 1 ASSESS HEARING. DOC
ALTERNATIVES: The alternatives are as follows:
RECOMMENDED
MOTION:
REVIEWED BY:
1. Approve a Resolution declaring the costs to be assessed, ordering the
preparation of the proposed assessment rolls and establishing October 4, 2004 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.
G:\Agenda\Agenda04\04-01 ASSESSHEARING.DOC
RESOLUTION 04-XX
RESOLUTION DECLARING COSTS TO BE ASSESSED, ORDERING THE PREPARATION OF
PROPOSED ASSESSMENT ROLL, AND
ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR
DOWNTOWN STREET RECONSTRUCTION AND RAINWATER GARDEN
CONSTRUCTION PROJECT
CITY PROJECT 04-01
MOTION BY:
SECOND BY:
WHEREAS, a Contract has been let and costs have been determined for the reconstruction of Main
Avenue and Dakota Project, Project 04-01 and the contract price for such improvements is
$1,439,000 and the expenses incurred or to be incurred in the making of such
improvements amount to $324,480 so that the total cost of the improvements will be
$1,763,480.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF PRIOR LAKE,
MINNESOTA:
1. The recital set forth above is incorporated herein.
2. The portion of the cost of such improvements is to be paid by the City is hereby declared to be
$1,372,308 and the portion of the cost to be assessed against benefited property owners is
declared to be $391,172.
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 a minimum of 6% 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
he 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 4th day of October, 2004, 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.
G:\Agenda\Agenda04\04-01 ASSESSHEARING.DOC
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 property 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 7th day of September, 2004.
YES NO
Blomberg Blomberg
Haugen Haugen
LeMair LeMair
Petersen Petersen
Zieska Zieska
{Seal}
Frank Boyles, City Manager
G:\Agenda\Agenda04\04-01 ASSESSHEARlNG.DOC
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City of Prior Lake
CITY PRO.JECT
#04-01
LAKEFRONT
PARK
FIGURE NO. 10
PROPOSED
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CJ BUILDING
c:::l LOT TO BE ASSESSED
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