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HomeMy WebLinkAbout7B - Credit River Road Public Hearing O� PRIp� N U 4646 Dakota Street SE Prior Lake, MN 55372 `�INx�so�P CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 22, 2014 AGENDA#: 713 PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTED BY: SENG THONGVANH AGENDA ITEM: PUBLIC HEARING TO CONSIDER APPROVAL OF A RESOLUTION ORDER- ING THE IMPROVEMENT AND PREPARATION OF PLANS AND SPECIFICA- TIONS FOR THE CREDIT RIVER ROAD IMPROVEMENT PROJECT (PROJECT #15-000006) DISCUSSION: Introduction The purpose of this agenda item is to hold the Public Hearing to consider approval of a resolution ordering the Credit River Road Improvement Project and the prepa- ration of plans and specifications. A super majority (4/5) is needed to approve the resolution. History 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 August 25, 2014 meeting the City Council adopted Resolution 14-124 authorizing staff to prepare a Feasibility Report for the Credit River Road Improvement Project as outlined in the CIP. The Credit River Road neighborhood is considered in the report and includes im- provements to Borgerding Addition, Brooksville Hills 1St Addition, Brooksville Hills 8th Addition, Costello's Addition, S 02, T 114, R 22 Block 001, Lot 002 & 003 and portions of Sections 1 & 2, Township 114, Range 22. These properties were plat- ted and developed from as early as 1920's to as late as the 1990's. A map of the project area (Figure 1) is included in the Feasibility Report. The proposed im- provements include street reconstruction, storm sewer, storm water quality, sani- tary sewer, watermain, concrete curb and gutter, and appurtenant work. On November 24, 2014, 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 17, 2014 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. 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 October 28th and November 14th, 2014 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. 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 project due to the fact that the lots in the project area are of similar size and/or value. The estimated assessment rate per the Feasibility Report is pro- posed at $14,785/unit. Note that the amount of the actual assessment will be cal- culated based on the bids received and final construction costs. 2 Homes on One Side of Roadway Due to the lack of homes on one side of the roadway, the number of homes to levy the assessment are less than other local street projects. The Assessment Review Committee recognized this distinction and recommended that benefit appraisals be completed for this project. The benefit appraisals may suggest a lower assess- ment amount. The benefit appraisals are underway and are expected to be com- plete in January or early February. Forcemain and Lift Station Replacement The capacity issues related to the Credit River Lift Station were discussed at the November 14'ARC meeting as well as the November 24th Council meeting. A memo dated November 13th drafted by Larry Poppler was reviewed. Due to the circumstances, the replacement of forcemain under Credit River Road from Ev- anston to the Credit River Lift Station is necessary to gain the needed capacity. Due to this replacement and disturbance to Credit River Road, the Assessment Review Committee recommended proceeding with the project. Trunk Highway 13/County Road 21 Future Plans The ARC reviewed 3 options for the TH 13/CR 21 future plans. The options in- cluded: 1. Existing Alignment - Reconstructing Credit River Road with the City's typical section within the existing road alignment at Evanston Avenue. Option 1 would likely mean that this stretch of Credit River Road (ap- proximately 300 feet) would be reconstructed again when the intersec- tion project takes place. 2. Shift Alignment- Reconstructing Credit River Road with the City's typi- cal section and shifting road alignment to account for expansion of County Road 21. The shifting of the road alignment (option 2) would require property acquisition and would cost approximately $9,000. This option would not necessarily mean this area of Credit River Road would not be impacted again with the TH 13/CR 21 intersection. It would give the City an opportunity during the design of the intersection project to try to minimize impacts or avoid reconstructing this portion of Credit River Road again. 3. Temporary Road Section - Building a temporary street section for the area that may be impacted by future construction of the TH 13/CR 21 intersection. Option 3 would provide a cost savings of approximately $33,000. The ARC recommended that if this option were chosen the assessed parcels would be the same as the other two options as they would not be assessed with the TH 13 and CR 21 project. The ARC recommended that the final decision on which road option to use at this location be deferred until additional design information is available that would bet- ter illustrate impacts of each option. 3 FINANCIAL The Credit River Road Improvement Project is proposed to be financed by Special IMPACT: Assessments, tax levy, Sewer Fund, Water Fund, and Trunk Sewer Fund. Funding sources and amounts are as shown below: ITEMS COST Street/Storm Sewer* $1,046,434.50 Watermain $ 253,018.00 Sanitary Sewer $1,092,475.00 Street Lights $ 10,000.00 City's Proiect Support Costs** $ 258,349.04 TOTAL PROJECT COST $2,660,276.54 *Includes Water Quality Costs **City's Project Support Costs includes the following: Engineering Administration Financing Assessments $399,185.10 Sewer Fund $300,387.18 Water Fund $309,744.95 Water Quality Fund $16,420.67 Trunk Sewer Fund $939,105.96 Tax Lev $695,432.67 Project Total Cost $2,660,276.54 ALTERNATIVES: 1. Conduct the public hearing and in the absence of compelling information to the contrary, approve Resolution 14-XX ordering the Credit River Road Improve- ment 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 Motion and second for alternative#1. MOTION: 4 O� PRip� ti U 4646 Dakota Street SE �tINNESO�p' Prior Lake,MN 55372 RESOLUTION 14-xxx ORDERING IMPROVEMENTS AND PREPARATION OF PLANS AND SPECIFICATIONS FOR CREDIT RIVER ROAD IMPROVEMENT PROJECT (PROJECT#TRN15.000006); FINANCING THE CREDIT RIVER ROAD 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 Credit River Road; and WHREAS, on November 24, 2014; the City Council adopted Resolution 14-183 accepting the Feasibility Report and calling for a Public Hearing to be held on the Credit River Road 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 22nd day of December, 2014, at which time all persons desiring to be heard were given an opportunity to be heard thereon; and WHERES, since the project was initiated by the City Council it must be approved by 4/5ths vote in accordance with Minnesota Statutes 429.031 Subdivision 1(f); 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 and specifications for the improvements delineated in City Council Resolution 14-183 adopted on November 24, 2014 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 (#501-43500.00-55020-TRN15-000006). 5. The Engineer shall prepare plans and specifications for the making of such improvements for Credit River Road. 6. The City Council authorizes the following preliminary funding sources and corresponding transfers to the Construction Fund for the project: Assessments $399,185.10 Sewer Fund $300,387.18 Water Fund $309,744.95 Water Quality Fund $16,420.67 Trunk Sewer Fund $939,105.96 Tax Lev $695,432.67 Project Total Cost $2,660,276.54 7. The City has determined 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). 8. The City may declare 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. 9. 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. 10. 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. 11. This Declaration is intended to constitute a Declaration of the Official Intent for the purposes of the Reimbursement Regulations. 2 PASSED AND ADOPTED THIS 22ND DAY OF DECEMBER 2014. VOTE Hedberg Keeney McGuire Morton Soukup Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager 3