Loading...
HomeMy WebLinkAbout8A-Mushtown, Maple, Panama Project O� PR 0 u kn 4646 Dakota Street SE Prior Lake.MN 55372 '�nvxsso'�P CITY COUNCIL AGENDA REPORT MEETING DATE: JANUARY 26, 2015 AGENDA#: 8A PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTED BY: SENG THONGVANH AND LARRY POPPLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE ASSESSED, ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF FOR THE MAPLE LANE, MUSHTOWN ROAD, PANAMA AVENUE IMPROVEMENT PROJECT (TRN14-000001) DISCUSSION: Introduction This agenda item is necessary to set an assessment hearing and to establish the amount to be assessed for the Maple Lane, Mushtown Road, Panama Avenue Improvement Project. History At its September 9, 2013 meeting the City Council adopted Resolution 13- 126 authorizing staff to prepare a Feasibility Report for Maple Lane, Mush- town Road, Panama Avenue Improvement Project as outlined in the CIP and required for the Minnesota Statutes Chapter 429 process. The Minnesota Statutes Chapter 429 process is required because the City Council intends to specially assess for the improvements. The Maple Lane / Mushtown Road / Panama Avenue neighborhood is con- sidered in the report and includes improvements to Maple Acres, O'Rourke Addition, Parts of S 11, T 114, R 22 and Parts of S 2, T 114, R 22. These properties were platted and developed in the 1950's and 1960's. A map of the project area (Figure 1) is included in the Feasibility Report. The proposed improvements include street reconstruction, sewer and water construction, storm sewer, storm water quality, concrete curb and gutter, and appurtenant work. The Feasibility Report also includes total estimated costs, preliminary assessment amounts, and a project financing summary. Also included in the report are design criteria, estimates and information on watermain, sanitary sewer, storm sewer, and streets. Details on each can be found in the Feasi- bility Report which is available upon request. On November 12, 2013, the City Council accepted the feasibility report and scheduled the public hearing. The public hearing was held on December 9, 2013. Staff presented the orig- inal project plus three (3) options prior to the public hearing. A dozen or so residents spoke at the public hearing in opposition to the project. While it was recognized that Mushtown Road is in poor condition, the cost for the project as a whole was the major point of objection. The City Council tabled their discussion after closing the public hearing. Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com The City Council communicated support for Option 3, which eliminated sani- tary sewer and watermain on Maple Lane and provided services through a proposed easement between two properties on Maple Lane. It was estimated that the cost savings would be approximately$10,000 for this option. The City Council also asked that the following additional information be brought back on January 27, 2014. 1. Representative Appraisals 2. Options to reduce project assessment 3. Septic System Credit Information 4. Information on age and condition of the existing septic systems on the project 5. Additional traffic information for Mushtown Road Each of the items were reviewed and presented at the January 27th meeting. An additional Public Hearing was held on March 10, 2014. Staff presented the proposed improvements, funding mechanisms, and estimated assess- ment amounts based on the various funding contributions. There were five residents that spoke at the public hearing. Each of the comments or concerns were addressed at the public hearing. At the Public Hearing the City Council Ordered the project. In accordance with MN Statutes 429, bids must be ac- cepted within one year of the date the project was ordered. In addition to the Public Hearings, the City has held two informational meet- ings to discuss the project. The last informational meeting was an open house held on May 20, 2014 and offered residents the opportunity to comment on the proposed plans. At the open house persons from 21 homes were repre- sented. City Staff explained the proposed design and passed out information regarding the various programs available. Another informational meeting is proposed to be held prior to the Assessment Hearing to share bid results and engage the property owners prior to the hearing. On October 13, 2014 the City Council approved the project plans and speci- fications and authorized the advertisement for bids for the Maple Lane, Mush- town Road, Panama Avenue Improvement Project. Current Circumstances The project includes storm sewer, sanitary sewer, watermain, concrete curb and gutter, aggregate base, bituminous surfacing, and appurtenant work. The construction of this project is proposed to be funded through Assessments, Tax Levy, Grant, Trunk Funds, Water Quality Fund, Street Oversize Fund, and Capital Park Fund. The City received bids on January 14, 2015 for this project. A total of 6 bids were received for the project. The lowest bid was from Chard Tiling and Ex- cavating for $1,497,936.98 which is $31,081 above the engineer's estimate of $1,466,855. The proposed total project costs (including project support costs) is $1,992,960. The estimated project costs in the feasibility report was $1,740,746. The costs difference of $252,214 is due to the additional costs for property acquisition, addition of trail on Mushtown Road, and alternative 2 bidding of service installations on Panama Avenue. The financial impact sec- tion of this report discusses how the as bid pricing from Chard impacts the funding sources of the project including the assessments. Conclusion Staff recommends that the City Council declare the costs to be assessed, order preparation of the assessment roll, and establish the Assessment Hear- ing date as February 231, 2015 for the Maple Lane, Mushtown Road, Pan- ama Avenue Improvement Project and authorize the required notice of public hearing to be published as per the attached resolution. ISSUES: The Assessment Review Committee has reviewed and agrees with the as- sessment map, assessment rate, and method of assessment. The unit method for the assessment is used due to the uniformity of benefit received by the benefited parcels and the relative consistency in parcel size. While the low bid amount was above the engineer's estimate it was still within 2%. Considering the high number of bids, the low bid appears to be the ap- propriate cost for the project. The engineer's estimate utilized pricing from last year's construction season. This year it appears that pipe and other ma- terial costs have increased. On September 30, 2014, the City learned that they were successful in secur- ing an estimated $249,930 in grant dollars for sanitary sewer components. The original funding computations did not assume that the City would be suc- cessful in receiving grant proceeds. Instead, the Assessment Review Com- mittee recommended that Trunk Sanitary Sewer and Water Funds be utilized to reduce assessments. While the watermain and sanitary sewer pipes are of minimum size, they will also be utilized to serve acreage to the south. The Assessement Review Committee recommends that the grant proceeds be utilized to reduce the assessment amounts but also reduce the sanitary sewer trunk allocation by half. The original grant application to the Public Facilities Authority for the Clean Water Grant calculated the eligible grant amount to be $249,930. Due to ad- ditional costs associated with sanitary sewer installation that are eligible for the grant,the City will be submitting certification to the MPCA for an additional $36,822 for a total grant amount of$286,752. In the past, funding has been kept to the lower amount of the two submitted, but the MPCA has stated that this additional funding may be available for other eligible items. The Assess- ment Review Committee is recommending using $249,930 for the purposes of project funding. If the additional $36,822 is approved, the additional fund- ing would be allocated to the Sewer Trunk Fund. In order to provide sanitary sewer and water services to the homes located along Crystal Lake on Panama Avenue, service pipes need to be installed across Panama Avenue. Scott County has concerns regarding open cutting of Panama Avenue to install the necessary pipes.As part of the bid package, directional drilling (trenchless installation), bid items were included to provide cost comparison analysis. Per bid prices received, open cutting installation would cost $53,961 and directional drilling would cost $74,756. Due to de- touring concerns for Panama Avenue CR 23, reduced risk for workmanship 3 issues for the roadway (settlements), and the required Scott County security for the roadway, the Assessment Review Committee recommends the higher cost/ lower impact alternative of directional drilling. As part of the Orderly Annexation Agreement, septic system credits are avail- able for those systems that meet the age requirements. There are 8 proper- ties that currently meet the age requirement per Scott County records. In or- der to receive the credit, the property owner must provide certification prior to or at the Assessment Hearing. Due to short time line until the Assessment Hearing, the Assessment Review Committee initially had concerns that prop- erty owners may not have enough time to obtain compliance certification to meet the deadline and therefore contemplated conducting the assessment hearing at a later date. In a conversation with a licensed compliance inspec- tor, compliance inspections can be completed the same day if requested. Due to the low number of eligible properties, apparently fast turnaround for com- pliance inspections, and time constraints for awarding the project, it is rec- ommended that the City continue with the process of holding the Assessment Hearing ahead of award. Aside from the assessments, each property owner will also incur additional costs associated with hookup charges and private property work. Based on the the 2015 fee schedule for a typical 5/8"water meter, hookup charges are calculated at $5,746. This permit fee is normally due at the time connection permits are pulled. In addition, private work to hook up the house to the ser- vice stubs will be at the property owners expense. The cost of the private work will be dependent on individual site conditions and how existing pipes are laid out for each house. The Assessment Review Committee has dis- cussed that these one time charges could be a large burden at one time for property owners. An option to assist the homeowners would be to allow the hookup charges be assessed to the property owners for a 5 year term. The interest rate charged would be the same as the rates charged for street and utilities assessment. In order to take advantage of this option, the property must consent to waive their rights for appeal of the special assessment before or at the assessment hearing. With this option, the property owner still must secure a permit from the City, but their fees for the permit would have already been charged per the assessment. If the permit fees change in 2016 or if the property owner requests a larger meter, the property owner would pay the difference at the time they secured a permit from the City. FINANCIAL The assessment calculation has been computed in a manner consistent with IMPACT: the lastest calculation methods and the Assessment Policy. The property owners are proposed to be assessed 100% for all costs associated with the proposed sanitary sewer and watermain improvements after subtracting trunk amounts and the grant proceeds. Existing properties on Maple Lane and Mushtown Road will be assessed 40% of the street and storm sewer improvement costs for this project after street oversizing and water quality components are subtracted. The remaining 60% of the street and storm sewer costs will be paid through the tax levy. Any septic system credits for this project will be paid through the Sewer Fund. The Maple Lane, Mushtown Road, and Panama Avenue Street Improvement Project was originally proposed to be financed by Special Assessments, tax 4 levy, Street Oversize Fund and Water Quality Fund. The following table re- flects the original funding sources, interim funding sources, and recom- mended funding sources per the Assessment Review Committee meeting held on January 16, 2015. It is also proposed that the trail construction,which is part of the Trail Gaps Analysis, be funded through the Capital Park Fund exclusively. Funding Source Original Interim As Bid** Estimate Estimate Tax Lev $437,300 $388,384 $441,570 Assessments $1,217,294 $906,388 $804,190 Street $56,152 $131,186 Oversize Fund $122,537 Water Quality Fund $30,000 $42,588 $61,918 Trunk Sewer Fund $0 $262,000 $196,500 Capital Park Fund $0 $0 $62,356 Clean Water Grant $0 $0 $249,930 Project $1,740,746 $1,730,546 $1,939,000 Total Cost* Utilities $24,362 $16,906 $13,416 Assessment Unit Street& Utilities $35,575 $26,865 $24,738 Assessment Unit * Includes project support costs **As recommended by the Assessment Review Committee at the January 16, 2015 meeting Of the total project costs including sanitary sewer and watermain improve- ments, $1,134,810 or 59% will be paid through sources other than special assessment. The proposed amount to be assessed against the benefiting properties is $804,190. There are 26 benefiting units in the project area pro- posed to be assessed at 40% of the street and storm sewer improvements after applicable subtractions. There are 38 benefiting units in the project area proposed to be assessed at 100% of the sanitary sewer and watermain im- provements after applicable subtractions. ALTERNATIVES: 1) Approve a resolution declaring the costs to be assessed, ordering prepa- ration of proposed assessment roll and establishing the date of the as- sessment hearing and publication thereof for the Maple Lane, Mushtown Road, Panama Avenue Improvement Project (TRN14-000001). 2) Deny the Resolutions for a specific reason and provide staff with direc- tion. 3) Table this item for a specific reason. RECOMMENDED Alternative#1. MOTION: 5 U rr1 4646 Dakota Street SE NNE'0" Prior Lake, MN 55372 RESOLUTION 15-xxx A RESOLUTION DECLARING COSTS TO BE ASSESSED, ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF FOR THE MAPLE LANE, MUSHTOWN ROAD, PANAMA AVENUE IMPROVEMENT PROJECT (TRN14.000001) Motion By: Second By: WHEREAS, Costs have been determined for the improvement of Maple Lane, Mushtown Road, Panama Avenue, Project #TRN14-000001, the City cost for the improvements are $1,938,999.88; 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 $1,134,810.24, and the portion of the cost to be assessed against benefited property owners is declared to be$804,189.64. 3. Assessments shall be payable on an equal principal installment method extending over a period of 10 years for street improvements and 20 years for sewer and water 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 23th day of February, 2015, 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 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, 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 succeeding year. PASSED AND ADOPTED THIS 26th DAY OF JANUARY 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager 2