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Home My WebLink About7A - Centennial Street Imp. CITY COUNCIL AGENDA REPORT SUBJECT: JULY 6,1999 7A SUE MCDERMOTT, ASSISTANT CITY ENGINEER GREG IlKKA, PUBLIC WORKS DIRECTOR/CITY ENGINEER CONDUCT ASSESSMENT HEARING FOR CENTENNIAL STREET IMPROVEMENT PROJECT #99-12 AND CONSIDER APPROVAL OF THE FOllOWING RESOLUTIONS: DATE: AGENDA #: PREPARED BY: REVIEWED BY: ~;JJ ~ '9.Q.:XX ADOPTING THE ASSESSMENT ROLL FOR THE CEf;n:ENNIAL STREET IMPROVEMENT PROJECT D€~\N4 ALL ~E;:'P~~:M~ P~~J:gTR THE CENTENNIAL DISCUSSION: HISTORY Centennial Street is one of the few remaining gravel streets in the community. It is a neighborhood street, approximately 500 feet long which ends in a cul-de-sac and serves 6 households. construction of this street to a city standard bituminous street with curb and gutter was approved for inclusion in the 1999 Capital Improvement Program. CONTRACT AWARD At the April 19, 1999 Council Meeting, the Council approved plans and specifications and authorized the advertisement for bids for Centennial street Improvements. . Bids were received and opened on May 25, 1999. The bids have been checked and tabulated. The low bidder was K.A. Witt Construction, Inc., of New Prague, MN in the amount of $59,085.75. Their bid was over the Engineer's Estimate of $52,741.75. Based on references provided by K.A. Witt Construction, Inc., staff believes the contract would be successfully completed by this contractor. ASSESSMENTS At the June 7, 1999 Council Meeting, the Council approved Resolution 99-56 which declared the cost to be assessed and ordered the preparation of the assessment roll. In addition, Resolution 99-57 was approved establishing the 162QQ~RS!99&~g. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER date of the Assessment hearing as July 6, 1999 for the Centennial Street Improvement project. CURRENT CIRCUMSTANCES ASSESSMENTS All benefiting property owners have been mailed a Statement of Special Assessments which included information pertinent to their property such as the total assessment amount and the assessment rate. A Public Hearing notice has been mailed to each property owner indicating time and place of the Assessment Hearing. The Public Hearing Notice has also been published in the newspaper for two weeks. The total project cost for the Centennial Street project is $75,009.98. There are five (5) benefiting properties in the project area. It is proposed to be funded through trunk reserve funds and assessments. $6,005.00 for water main improvements would be paid through the trunk reserve and $69,004.98 would be assessed against the benefiting properties. A copy of the assessment roll is attached showing the proposed assessments per parcel. The Assessment Review Committee recommended assessing the project on a uhit basis. Each unit was determined per the City's Assessment Policy utilizing the existing plat drawings on file for these areas as well as records for prior assessments. The assessment terms are to be for ten (10) years. Added to the first installment will be an additional 178 days of interest which accounts for the remainder of 1999 following the Assessment Hearing. An interest rate of 80/0 will be charged in accordance with City Assessment Policy. Prior Lake Code, Chapter 1-13, allows for the deferment of assessment principal and interest if the following four criteria are satisfied: 1. Applicant must be 65 years of age or older. 2. The qualifying property must be the homestead of the applicant. 3. Annual gross income shall not exceed the income limits as set forth by family size according to Attachment "A" of Ordinance 86-3. 4. Total special assessment to be deferred must exceed $1,000.00. The property owners have a right to appeal their assessments as per Minnesota Statutes Chapter 429. G:\AGENDA99\ASSESSCT.DOC FINANCIAL IMPACT: G:\AGENDA99\ASSESSCT.DOC Written objections must be signed and filed with the City Manager prior to the Assessment Hearing or presented to the Council at the Hearing. ISSUES ASSESSMENTS 1) The Assessment Review Committee recommends that if the project moves forward, that the Unit Assessment method be used. The proposed unit rate is $11,500.83. There are six (6) assessable units on Centennial Street, with two (2) of the units under the same ownership. The owner of these units has expressed opposition to the project (attached). In addition, a letter of opposition was received in November which was signed by all of the Centennial Street residents. 2) The two properties on each corner of Centennial Street and Candy Cove Trail have been previously assessed with Candy Cove Trail upgrades and therefore can not be assessed with this project. A third property, Cable First Addition, does not have access from Centennial Street. 3) Improvements to the watermain that are necessary include fire hydrant and valve replacement. These costs are proposed to be funded through the Trunk Reserve. CONTRACT AWARD 1) The bid received by K.A. Witt Construction, Inc. is valid for 60 days from the date of the bid opening unless an extension is mutually agreed upon. The 60 day time period expires on July 24, 1999. If Council chooses not to award the bid at this meeting, the July 19th meeting would be the final opportunity. If the proposed assessments are adopted after an assessment hearing financing of the improvements will be as follows: Funding Amount Source Assessments $69,004.98 Trunk $6,005.00 Reserve Project Totals $75,009.98 The numbers shown above for the assessments include 300/0 indirect costs for design, survey, inspection, administration, and financing. At the conclusion of the Assessment Hearing and subsequent adoption of the assessment roll, all property owners will be mailed a follow- up billing statement of their final amount owed. AL TERNA TIVES: RECOMMENDED MOTION: REVIEWED BY: REVIEWED BY: G:\AGENDA99\ASSESSCT.DOC The alternatives are as follows: 1. Approve Resolution 99-XX adopting the assessment roll as submitted or with amendments and approve Resolution 99-XX accepting the bid and awarding the contract for Project 99-12 Centennial Street Improvements to the lowest responsible bidder, K.A. Witt Construction, Inc. for the bid amounting to $59,085.75. 2. Close the hearing and deny Resolution 99-XX adopting the assessment roll and Resolution 99-XX accepting the bid and awarding the contract for Project 99-12 Centennial Street Improvements. The City Council could adopt both Resolutions (Alternative 1) adopting the assessment roll and accepting the bid and awarding the contract if it believes that it is essential to move forward with this road reconstruction project at this time and that the proposed assessment amounts are appropriate. The City Council could close the hearing and deny both resolutions (Alternative 2) if it believes that completion of this road improvement project at this time is not essential because it serves only six properties, that the maintenance costs for the street in its existing condition are not significantly greater than bituminous streets, that the proposed improvement costs are onerous considering the benefit received, and/or that the project could be made more economical at some future date by including it with another project. DESCRIPTION: PROJECT 99-12, CENTENNIAL STREET ASSESSMENT HEARING DATE: 7/6/99 ASSESSMENT RATE: $1 1,500.83 ASSESSMENT CODE:(PA VlNG) 97 INTEREST RATE: 8.00% PAVING: 10 YEARS INITIAL YEAR: 2000 ADDITIONAL INTEREST: 178 DAYS PAYMENT METHOD: EQUAL PRINCIPAL -- ......................... ... .................................................. ........................ .. .................................................. ........................ ~mm~mf;;;;;~;;;;~~;~r;m;;mmm;~; ................................................ .1 ................................................ :::::::::::::::::::::::::::::::::::::::::::::::: .:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.: :;:r~:~:;:f~:~:~:;:~:~:~:~:~:~:~:~:;:~:~:~:~: :::::::::::::::::::::::::::::::::::::::::::::::: ................................................ 1\1111111111111111111 ........................ .:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.: ................................................ ........................ .:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.: ......j......f.ONltS...... :::::::...::~.:;.:.....:....::::::: Lot 1 Block 1 Centennial Addition 25-163001-0 Arnold & Gladys Gruetzmacher 5344 Centennial Street SE $1 1 ,500.83 1 $1 1,500.83 Prior Lake, MN 55372 Lot 2 Block 1 Centennial Addition 25-163002-0 Georgiana Dillon 5375 Centennial Street SE $1 1,500.83 1 $11,500.83 Prior Lake, MN 55372 Lot 3 Block 1 Centennial Addition 25-163003-0 Bernard S Schwan beck 5401 Centennial Street SE $1 1,500.83 1 $11,500.83 Prior Lake, MN 55372 See 36 T1 15 R22 .94 PIO SE1/4 SW1/4 Com 325.66 E of 25-936033-0 James E & Mary Lou Simon NW Cor. E 352.1 1 to POB S 210.7, W 193.9, N 210.7 E to 5366 Centennial Street SE $1 1,500.83 2 $23,001.66 Beg. DOC 121 187 Prior Lake, MN 55372 Sec 36 T1 15 R22 .5 5/10 A in SE1/4 SW1/4 Com at INT. 25-936031-0 Albert J Kocher of Hwy 13 E 352.1 l' to Pt of Beg. Thence S 210.7 E 1 16.3' , 5400 Centennial Street SE $1 1,500.83 1 $11,500.83 N to N line W 92.2 to pt of Beg. Prior Lake, MN 55372 TOTAL $69,004.98 PRINTED 6/8/99 G:\PROJECTS\ 1999\ 12CENnASSESS.XLS . Date: June 21, 1999 To: Members of the Prior Lake City Council From: Jim and Mary Lou Simon In response to the declared costs of the Centennial Street project we were lead to believe the costs would be much less than the' actual cost. In lite of this, we would again like to go on record as opposing the project. Originally the cost was to be about $8,000 - $9,000. Now the cost is nearer to $12,000. This increase is totally unacceptable to us as well as our neighbors. We are also being assessed for 2 units when we only have one unit. We were originally going to sub- divide our lot but city regulations make that cost prohibitive. .Re?~ ~ & Mary Lou ~~~~~~ Simon . MOTION BY: RESOLUTION 99-XX RESOLUTION ADOPTING ASSESSMENTS FOR PROJECT #99-12 CENTENNIAL STREET IMPROVEMENTS 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 projects 99- 12 Centennial Street Improvements, and has amended such proposed assessment as it deems just. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. Such proposed assessment, 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 benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessments shall be payable on an equal principal method extending over a period of ten (10) years for paving. 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 eight (8) percent per annum from the date of adoption of this assessment resolution . To the first installment shall be added one hundred- seventy-eight (178) days of interest on the entire assessment from the date of this resolution until December 31, 1999. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 3. 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 the individual may at any time thereafter, pay to the City's Finance Director the entire amount of the assessment remaining unpaid, excepting the installment portion appearing upon the current year's property tax statement. 4. The City Manager shall forthwith transmit a certified duplicate of this 16200 ~~~m Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 A'!'. EQUAL OPPORTUNITY EMPLOYER 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. 5. The final project cost apportionment has been determined to be $75,009.98 of which $6,005.00 shall be paid from the City's Trunk Reserve Fund, and $69,004.98 to be assessed to the benefited property owners as per the attached assessment roll. Passed and adopted this 6th of July, 1999 YES NO Mader Kedrowski Petersen Schenck Wuellner Mader Kedrowski Petersen Schenck Wuellner {Seal} Frank Boyles City Manager City of Prior Lake 99CENT AH.DOC RESOLUTION 99-XX ~ ~~ IlVNESO ACCEPTING BIDS AND AWARDING CONTRACT FOR CENTENNIAL STREET IMPROVEMENTS (CITY PROJECT #99-12) MOTION BY: SECOND BY: WHEREAS, pursuant to an advertisement for bids for the improvement project at Centennial Street (Project 99-12) which includes aggregate base, concrete curb and gutter, bituminous pavement, watermain improvements and appurtenant work; and WHEREAS, The following bids were received, opened, and tabulated according to law and the following bids were received complying with the advertisement: K.A. Witt Construction, Inc. McNamara Contracting, Inc. Northwest Asphalt, Inc. BID $ 59,085.75 $ 66,183.25 $ 66,990.35 CONTRACTORS WHEREAS, it appears that K.A. Witt, Construction, Inc. of New Prague, Minnesota is the lowest responsible bidder. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. The Mayor and City Manager are hereby authorized to enter into a contract with K.A. Witt Construction, Inc. of New Prague, Minnesota in the name of the City of Prior Lake for the Centennial Street Improvement project (Project 99-.12) in the amount of $59,085.75. 2. The City Manager is hereby authorized and directed to return to all bidders the deposits made with their bids once a contract has been signed. Passed and adopted this 6th day of July, 1999. YES NO Mader Kedrowski Petersen Schenk Wuellner Mader Kedrowski Petersen Schenck Wuellner 1620~~~OCreek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER {Seal} Frank Boyles City Manager City of Prior Lake AWIlDCENT.DOC PrkrU18 PUBLIC HEARING TO CONDUCT ASSESSMENT HEARING FOR CENTENNIAL STREET IMPROVEMENTS PROJECT 99-12 * * * July 6, 1999 '-l '-i 7 - L.J t:J s: '- Sl