The URL can be used to link to this page

Home My WebLink About5K Order Reassessment Roll - Sunset Ave Improvements 01 PR/04, ti ea 4646 Dakota Street SE Prior Lake, MN 55372 `t sols* CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 14, 2015 AGENDA #: 5K 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 A REASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE REASSESSMENT HEARING FOR THE SUNSET AVENUE IMPROVEMENT PROJECT (PROJECT #TRN13-000001) DISCUSSION: Introduction This agenda item is necessary to set a reassessment hearing date and to estab- lish the amount to be reassessed for the Sunset Avenue Improvement Project. History On August 12, 2013 the City Council awarded a construction contract to Chard Tiling & Excavating for the Sunset Avenue Improvement Project#TRN13-000001. All work under the contract has been completed in accordance with the contract. Current Circumstances Final payment has been made to Chard Tiling for the improvement project. With the final payment, the total final contract amount paid to Chard Tiling is $839,472.04. This amount is $103,933.18 less than the original contract amount of $943,405.22. The amount includes a $39,000 deduct for compromised settle- ment reached with Chard Tiling for not meeting the substantial completion date for the project. Additional savings were realized with use of less material and minimization of construction zone impacts. ISSUES: The final project support costs computations have not yet been completed. How- ever, it is estimated that there is approximately $25,000 remaining, which should be sufficient to cover staff time for the reassessment process, project as-built and close out. The legal fees that were incurred during the negotiated settlement pro- cess has been accounted for in the project support cost. It is typical that projects come in within 5% over or under the project budget. In this case the project came in 11% under the project budget due to field adjust- ments which reduced impacts but also due to the $39,000 compromised settle- ment agreement. Historically, the City has not reassessed on these types of pro- jects whether the amount charged was determined to be higher or lower than the original computation. Due to the larger than normal significance of the difference from the original budget, the City Council has directed the Assessment Review Committee to review the project for reassessment. On September 3, 2015, the Assessment Review Committee reviewed the process for reassessment for the Sunset Avenue Improvement Project as well as the pro- posed reassessment amounts. The Assessment Review Committee agrees that reassessment for the project should take place due to the larger than normal dif- ference in the final construction cost and the original budget. FINANCIAL City staff has recalculated the assessment amounts for the project based on the IMPACT: final construction costs. The reimbursements or deductions for the reassessment amounts will be made from the construction fund. The original assessments as well as the proposed reassessment amounts are shown in the table below: ORIGINAL AS- REASSESS- MENT DIFFERENCE AMOUNT Existing Lots (Per $18,526.71 $17,396.33 Unit) ($1,130.39) Future Lots (Per Unit) $32,234.23 $29,981.30 ($2,252.93) For those properties that have paid the assessments infull, reimbursements of the difference amount will be made to the person or entity that made the original payment. For those properties that rolled the assessments into their property taxes, the difference amount will be deducted from the outstanding assessment amounts. The final project costs are as follows which includes the above referenced remain- ing project support costs: Construction Contract $839,472.04 Additional Project Costs (Not in Construction $74,896.04 Contract) Engineering, Legal, Admin $285,423.61 Project Cost $1,199,791.70 The original budget for this project was $1,273,313.39. Funding of this project is proposed on the table below: FUND ORIGINAL REASSESSMENT AMOUNT AMOUNT Special Assessment $798,786.84 $746,867.50 Tax Levy $361,645.40 $332,459.21 Trunk Fund $1,962.00 $1,962.00 Clean Water Grant $110,919.39 $118,503.00 ALTERNATIVES: 1. Approve a resolution as part of the consent agenda ordering the preparation of the proposed reassessment rolls for the Sunset Avenue Improvement Pro- ject#TRN13-000001, and establishing October 12, 2015 for the reassessment hearing date. 2 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 to approve alternative #1. MOTION: 3 t:3 13111°4 k U en 4646 Dakota Street SE 'illy se. Prior Lake,MN 55372 RESOLUTION 15-xxx A RESOLUTION ORDERING PREPARATION OF REASSESSMENT ROLL FOR THE SUNSET AVENUE IMPROVEMENT PROJECT#TRN13-000001 AND ESTABLISHING THE DATE OF THE REASSESSMENT HEARING AND PUBLICATION THEREOF Motion By: Second By: WHEREAS, Costs have been determined for the improvement of Sunset Avenue, Project #TRN13- 000001, the City cost for the improvements are$1,199,791.70; and WHEREAS, Reassessments have been determined based on overall project costs and negotiated settlement; and WHEREAS, The original assessment amount was $798,786.84 and the revised amount for reassessment is $746,867.50; and WHEREAS, The reassessment amount will be $51,919.34 less than the original assessment; and WHEREAS, The City Manager notifies the City Council that such proposed reassessment 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$452,924.20, and the portion of the cost to be reassessed against benefited property owners is declared to be $746,867.50. The Council has determined that the prior assessment was excessive. 3. If approved, after the public hearing the properties shall be reassessed to reflect the reduction of $51,919.34. The reassessments shall either be spread out over the remaining terms of the assessments or reimbursements provided to those that paid the full amount of the assessments up front. 4. If approved, after the public hearing reassessments shall be payable on an equal principal installment method extending over a period of 8 years for street improvements and 18 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 4.25% per annum from the date of the adoption of the reassessment resolution. 5. The City Manager, with the assistance of the City Engineer shall forthwith calculate the proper amount to be specially reassessed 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 reassessment in the office of the City Manager for public inspection. 6. The City Manager shall upon the completion of such proposed reassessment notify the City Council thereof. 7. 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 reassessment 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 reassessment. 8. The City Manager is hereby directed to cause a notice of the public hearing on the proposed reassessment 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 reassessment roll not less than two weeks prior to the hearing. 9. The owner of any property so reassessed may, at any time prior to certification of the reassessment to the County Auditor, pay the whole of the reassessment 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 reassessment is paid within 30 days from the adoption of the reassessment. The owner may, at any time thereafter, pay to the City Finance Director the entire amount of the reassessment 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 ❑ ❑ ❑ ❑ 0 Nay 0 ❑ ❑ ❑ ❑ Abstain 0 ❑ ❑ ❑ ❑ Absent 0 0 0 0 ❑ Frank Boyles, City Manager 2