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Home My WebLink About7B-Maplewood Improvement Project Assessment Roll ib� PRI0+P U 4646 Dakota Street SE !r�SolvP Prior Lake,MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: OCTOBER 13, 2014 AGENDA#: 7B PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTER: SENG THONGVANH AGENDA ITEM: PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION APPROVING THE ASSESSMENT ROLL FOR THE MAPLEWOOD STREET PUBLIC IMPROVEMENT PROJECT (CITY PROJECT#14-012) DISCUSSION: Introduction This agenda item is necessary to adopt the assessment roll for the Maplewood Street Improvement Project (City Project#14-012). 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 improvement 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 contractor is working towards substantial completion of the project. At its regular meeting of September 8, 2014, the Council approved Resolution 14-131, which declared the cost to be assessed, ordered the preparation of the assessment roll and established the date of the Assessment Hearing as October 13, 2014 for the Maplewood Street Improvement Project. The Assessment Review Committee met on September 18, 2014 to review the Maplewood Street Improvement 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 for the project and additional costs for granular placement. 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 September 27, October 4, and October 11, 2014. Under State Statute, the City may only assess a property 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. 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. 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 30th. Since property owners must be allowed 30 days to pay off their assessments interest free, the assessment roll must be adopted prior to November 1, 2014. 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 properties. 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. We had hoped that this project would be completed in August. It was not nor is it completed now. The contractor left the site for a week since the city refused to pay for extra fill required by water conditions which were indicated on the plans. Moreover, Xcel Energy was called upon to relocate three power poles. Considerable delay waiting for this work to be complete. Now, a leak has been detected in a water line. It should be located and corrected before the street is constructed. The project is to be completed by October 6. Since it is not, we are considering a liquidated damages claim. 2 FINANCIAL The initial total project cost for Project 14-012 was $524,191.17. Due to IMPACT: higher 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 granular material. This will add approximately $17,376 to the cost for street construction. 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 improvements based on bids received for the Maplewood Street Improvement Project. 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 assessment 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: Assessments $120,375.55 Tax Le $180,563.33 Water Fund $167,307.86 Sewer Fund $73,320.43 PjctTotal Cost" $541,567.1711 "Includes project support costs 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 August, 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. Conduct the public hearing and 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 Motion and second for alternative #1. MOTION: 3 o� Pxro) ti U 4646 Dakota Street SE jNiVE50�Q Prior Lake,MN 55372 RESOLUTION 14-xxx A RESOLUTION ADOPTING ASSESSMENTS FOR THE MAPLEWOOD STREET IMPROVEMENT PROJECT, CITY PROJECT#14.012 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 Maplewood Street Improvement Project, City Project# 14-012. 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 Maplewood Street Improvement Project, City Project#14-012, 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,the first of the installments to be payable on or before the first Monday, in January 2015, and shall bear interest at the rate of four and one hundredths (4.01) percent per annum from the date of the adoption of this assessment resolution. To the first installment of each assessment shall be added interest on the entire assessment from October 13, 2014 until December 31 of the year in which the first installment is payable, and to each subsequent installment 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 he/she may, at any time thereafter, pay to the city treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 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 13th DAY OF OCTOBER 2014. VOTE Hedberg Keeney McGuire Morton Soukup Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager of -7: p•