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HomeMy WebLinkAbout5J Order Assesment Roll - Credit River Road Improvements 01 PRION ti tri 4646 Dakota Street SE Prior Lake, MN 55372 41IsogP CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 14, 2015 AGENDA #: 5J PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE ASSESSED, ORDERING PREPARATION OF AN ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR THE CREDIT RIVER ROAD IMPROVEMENT PROJECT (PROJECT #TRN15-000006) DISCUSSION: Introduction This agenda item is necessary to set an assessment hearing and to establish the amount to be assessed for the Credit River Road Improvement Project. History Each year the City reconstructs street segments that are scheduled for recon- struction as part of its Capital Improvement Program (CIP) and have exceeded their useful design life. The City uses the Capital Improvement Program and its Pavement Management Program to plan for infrastructure improvements and the financing for capital improvements. At its August 25, 2014 meeting the City Council adopted Resolution 14-124 authorizing staff to prepare a Feasibil- ity Report for the Credit River Road Improvement Project as outlined in the CIP. The M.S. Chapter 429 process applies to all projects that will be financed in whole or in part through special assessments or bond proceeds. The Credit River Road neighborhood is considered in the report and includes improvements 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 proper- ties were platted 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 Re- port. The proposed improvements include street reconstruction, storm sewer, storm water quality, sanitary sewer, forcemain, lift station, watermain, concrete curb and gutter, and appurtenant work. The Credit River Road project serves to re-build a critical lift station in the southeast region of the City as well as supporting sanitary sewer piping. The project will also replace watermain which has shown a history of breaks through the years. The street pavement condition is such that reconstruction is necessary. This project will address all of the above issues. On November 24, 2014, the City Council accepted the feasibility report and scheduled the Public Hearing. The hearing was held on December 22, 2014 and the City Council adopted Resolution 14-202 ordering the project and prep- aration of plans and specifications. In addition to the Public Hearing, the City has held three informational meet- ings to discuss the project. The last informational meeting was an open house held on March 25, 2015 and offered residents the opportunity to comment on the proposed plans. At the open house, persons from 8 properties were in at- tendance. City staff explained the proposed design and passed out infor- mation regarding the driveway program. The majority of the property owners present inquired about the assessment amount and if the special benefit ap- praisals have been completed. Since the meeting, City staff have been busy finishing up the project plans. As part of the Feasibility Report, potential impacts to Credit River Road due to future reconstruction of the TH 13/CR 21 intersection was evaluated. The main options were to acquire property and place the alignment of Credit River Road where it would not be impacted in the future or build the road in its exist- ing alignment and utilize a temporary section where future impacts may take place. In late 2014, Scott County submitted an application for Federal funding for the TH 13/CR 21 reconstruction project for 2019. Due to the potential of the project moving forward in 2019, City staff reached out to Scott County to discuss the building of Credit River Road to meet the needs of the future TH 13/CR 21 project. Scott County agreed that Credit River Road should be built to accommodate future needs of the area. This would also eliminate future disruption to residents on Credit River Road. In order to facilitate the new alignment of Credit River Road, property acquisition from 5 properties is nec- essary. City staff has designed the alignment of Credit River Road to account for the future alignment and has calculated the amount of right-of-way neces- sary for this work. Scott County will take the lead on the property acquisition portion for the project. The estimated cost for property acquisition is detailed in the Cooperative Agreement. Scott County will be funding the bulk of the property acquisition cost with the City contributing. Appraisals are currently taking place for the properties. On April 13, 2015 the City Council approved the project plans and specifica- tions and authorized the advertisement for bids for the Credit River Road Im- provement Project. At the May 26, 2015 Council Meeting, the Council awarded bids for the improve- ment project. The City has executed a contract with Chard Tiling & Excavating to construct the project. The project is under construction. Much of the under- ground utilities will be completed soon and the street work will take place shortly. Current Circumstances The proposed improvements include street reconstruction, storm sewer, storm water quality, sanitary sewer, forcemain, lift station, watermain, concrete curb and gutter, and appurtenant work. Construction of the project is currently on- going with the anticipated substantial completion date of October 31, 2015. 2 ISSUES: The final alignment of Credit River Road at Evanston Avenue requires that property acquisition is in place prior to construction. Property acquisition is a tedious process that is estimated to take 5-11 months. Scott County has com- pleted appraisals for property acquisition and offers will be made after Septem- ber 15, 2015. Properties will not be acquired in time for construction this sea- son but the City is currently pursuing right of entries that will allow construction along the proposed alignment. If the right of entries are obtained, there may still be time this year to install all the proposed improvements without the need for a temporary road section. If property cannot be acquired in time for con- struction this year, the portion of Credit River Road at Evanston Avenue will be constructed with gravel for temporary access through the winter and con- structed once the property acquisition is complete. The Assessment Review Committee has reviewed and agrees with the assess- ment 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. The estimated assessment rate per the Feasibility Report was proposed at $14,785/unit. With the bid prices, the estimated assessment amount is calcu- lated to be $14,959/unit. A special benefit consultation was completed for the project area. The consultation determined that the special benefit amount is $10,500/unit. As such, the Assessment Review Committee recommends as- sessing the properties $10,500 per unit, which is less than the calculated amount. The total assessment of$283,500 will be 25% of the bonding amount, which would meet statutory requirement that the project assessment amount must be a minimum of 20% of the bonding amount. FINANCIAL The Credit River Road Improvement Project is proposed to be financed by Spe- IMPACT: cial Assessments, tax levy, Street Oversize Fund, Sewer Fund, Water Fund, and Trunk Sewer Fund. The amount shown in the table below is an estimate based on the bid prices received. Funding sources and amounts are as shown below: ITEMS COST Street/Storm Sewer* $1,302,997.15 Watermain $ 331,617.85 Sanitary Sewer $1,141,458.50 Street Lights $ 10,000.00 Scott County Coop Agreement $ 65,000.00 City's Project Support Costs** $ 258,349.04 TOTAL PROJECT COST $3,109,422.54 *Includes Water Quality Costs **City's Project Support Costs includes the following: Engineering Administration Financing 3 Assessments* $283,500.00 Sewer Fund $236,664.06 Water Fund $398,719.39 Water Quality Fund $18,068.32 Street Oversize Fund $179,538.08 Trunk Sewer Fund $1,156,264.34 Tax Levy $836,668.34 Project Total Cost $3,109,422.54 *Total assessment amount is based on per unit assessment of$10,500 per the special benefit consultation. ALTERNATIVES: 1. Approve a resolution declaring the costs to be assessed, ordering the prep- aration of the proposed assessment rolls and establishing October 12, 2015 for the assessment hearing date for the Credit River Road Improvement Pro- ject#TRN 15-000006. 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 approval of alternative#1. MOTION: 4 1 P to 60V 4646 Dakota Street SE 4INNESO1- 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 CREDIT RIVER ROAD IMPROVEMENT PROJECT#TRN15-000006 Motion By: Second By: WHEREAS, Costs have been determined for the improvement of Credit River Road, Project#TRN15- 000006, the City cost for the improvements are$3,109,422.54; 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 $2,825,922.54, and the portion of the cost to be assessed against benefited property owners is declared to be $283,500. 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 4.44% 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 12th day of October, 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 11 or interest will be charged through December 31 of the succeeding year. PASSED AND ADOPTED THIS 14th DAY OF SEPTEMBER 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Absent 0 ❑ ❑ ❑ ❑ Frank Boyles, City Manager 2