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Home My WebLink About5L Order Assessment Roll - 2015 Improvement Project (Grainwood, Eau Claire, Highland, Marsh & Skyline) o� PitiO+P ti ra 4646 Dakota Street SE Prior Lake, MN 55372 411.vsolP CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 14, 2015 AGENDA #: 5L PREPARED BY: KATY GEHLER, PUBLIC WORKS/NATURAL RESOURCES DIRECTOR PRESENTED BY: KATY GEHLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF AN ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR GRAINWOOD, EAU CLAIRE, HIGHLAND, MARSH AND SKYLINE, COLLECTIVELY THE 2015 STREET IMPROVEMENT PROJECT, FOR THE 2015 STREET IMPROVEMENT PROJECT (PROJECT# TRN15-000004) DISCUSSION: Introduction This agenda item is necessary to set an assessment hearing and to establish the amount to be assessed for the 2015 Street Improvement Project. History The 2015 Street Reconstruction Improvement Project#TRN15-000004 is included in the 2015 Capital Improvement Program and has received numerous City Council approvals to date. At the March 9, 2015, Council Meeting, the Council awarded bids for the street improvement project. Project TRN15-000004 includes sanitary sewer, water main, storm sewer and street reconstruction. The City has executed a contract with Chard Tiling to construct the project. The project is under construction. Much of the street work, underground utilities, and driveways have been completed. The project is currently tracking with the expected quantities. The Assessment Review Committee met on September 3, 2015, to review the 2015 project, assessment method and the proposed assessments. While the project scope and assessment method remain the same, the proposed assessments have been adjusted based on the bids received for the 2015 project. Current Circumstances The Special Assessment Committee has reviewed and agrees with the assessment map, assessment rate, and the method of assessment. The unit method for the assessment is used due to the uniformity of benefited parcels and the relative consistency in parcel size. Conclusion The City Council has confirmed the use of unit assessment for the project and has set the assessment amount equal to the amount assessed for the 2015 project. Since the special assessment hearing date is proposed for October 28, 2015, individual property owner notices must be sent to the property owners by October 12, 2015. The amount to be assessed must be included in the mailed notice. Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com ISSUES: The Assessment Policy states that interest rates charged should be 2% over the bonding rate. The current bonding rate is at 2.44% which would put the interest rate charge for the project at 4.44%. The City tries to employ strategies to keep the overall costs and assessments low. These strategies include reduced street widths on this project and minimizing the construction limits. The project also utilized onsite materials when possible to provide a cost savings. The assessment calculation has been computed in a manner consistent with the latest calculation methods and the Assessment Policy. Assessment amounts include 40% of the eligible street and stormwater system costs including project support for these items. The cost is divided by the total number of units. This project was divided into three areas for the purposes of assessments. The West Side includes Highland, Marsh and Skyline, the Ease side includes Grainwood and Eau Claire. A portion of Eau Claire was rehabilitated which was not assessed in accordance to the Assessment Policy and past practice. A map showing the three areas is attached. In addition some property owners elected to utilize assessments for driveway replacements above the City's driveway standards. FINANCIAL The project costs are shown in the attached table with a total assessment IMPACT: amount of$928,605.93. Staff recommends that the City Council declare the costs to be assessed, order preparation of the assessment roll, and establish the Assessment Hearing date as October 28, 2015 for the 2015 Street Improvement Project which includes Highland, Marsh, Skyline, Grainwood and Eau Claire streets and authorize the required notice of public hearing to be published as per the attached resolution. The Council approved the issuance of general obligation street improvement bonds on March 23, 2015 and initial transfers from the Water, Sewer and Water Quality Funds on March 9, 2015 for this project. A final project reconciliation will be prepared when the project is completed. Anticipated completion date is summer of 2016. ALTERNATIVES: The alternatives are as follows: 1. Approve as part of the consent agenda, a resolution declaring the costs to be assessed, ordering the preparation of the proposed assessment rolls and establishing the assessment hearing date for the 2015 Street Improvement Project TRN15-000004. 2. Deny the Resolution for a specific reason and provide staff with direction. 3. Table this item for a specific reason. RECOMMENDED Staff recommends alternative #1 MOTION: 2 0" p�O1P U � 4646 Dakota Street SE 4INNEse' 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 2015 STREET IMPROVEMENT PROJECT, CITY PROJECT#TRN15.000004 Motion By: Second By: WHEREAS, A contract has been let and costs have been determined for the 2015 Street Improvement Project, City Project#TRN 15-000004, the City cost for the improvements are $4,201,957.03; and WHEREAS, The City Manager notifies the City Council that such a 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 improvement to be paid by the City is hereby declared to be $4,201,957.03, and the portion of the cost to be assessed against benefited property owners is declared to be$928,605.93. 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 (12) 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 Public Works Director, 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 26th 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, 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, excepting the installment portion appearing upon the current year's property tax statement. PASSED AND ADOPTED THIS 14th DAY OF SEPTEMBER 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager 2 1 , ,'. Nr/X1',.'"')/ ; ; �/ If �� ! City of Prior Lake Z �" J O-•V .N / a "w Minnesota 2014 J t r- 1 ._ Exhibit-Assessed i r i � Q m r W..o«...„. \, Properties a,0t .Q ...r rL °" \ �. . - �\ West Project-Reconstruct I[ 1" .., wn«.� , — V-..._ i f I I a•* ��^aI East Project-Reconstruct _-_. �-. __ .. _: ��54tS -. - mu To be determined �T1 71 ,i( �_ _\ eet -..........--9-1*----‘--W a6 6 . -.:.,E I2 c I 6 _. 1 / \I j� 4; ° Y IP .i 03 AA €d I ° I till I Iii °� °_� ' I 1 � g iii _ Lower xw k. ` .. - - - 1 � Pr' Lake �� MARSHA[ ...�„ �, .... ate..,.,« i I 17.1:::::'.«x \- ,„„a.,ro.., Y ,�`'7.117`,";". 1 .u, r mss- t ;3 « \,... e»w I a....,«. I xw/ t � � SIA g ��/�/ d;F�� i 1 1 \ = ., ��• ... \ i o-�r i �, /��,�Fi,� .F Maar^� 7G� ,. Vi-- «a«a E ,.a,.». \ `t , t /4-2/,',/,;'- • ,-,L\ -- . “zw.rr. l.r`^`"» \ `� „,\ 4 4 ,F�laa .,.ra. , !� iceV % �o'< g� / � .a a I 7� °� \ a I y %a& ...,,,�. e £ 4t, a a i I • «E f,= '�'-�, , a< �� i baa f"r �� 4% 'f _ s� / g$ ysr\--.-,, ......T.1 40 0 /��ra3/ w A , �:I "•if 3+', ;'w - I� -I Me �, asTR �� a /�P % �l .:e _ EAU,-' vat % 3,o ..- // / ° ? , 7$ /....--, i [__r I ., �' - m � � / �� t I1 ss: 54 gv� §, s $ � ! A %a4 1 .«. * Ex €cud cla.,4 s tir: �1F j'/ d•,#zt i �'- �\ — _ t, ,: 3 ,'' ge 4 g �# &-j Qir: 3 Ns,/ .4 /wri.°rre�` �- 1 \ 1 � , m V. ':4 F� '{ a 4 Upper ,� \�A F Opp Q ,, , Prior *; 9 NNW as 3 Lake ., � -- \�, �� - V� am. / , ;.�. \ . GRIP ;= a .a�.»e. . ' P �" =m , ¢f h+�� / I ',G 88 ,\ O v j t ro. mea .f ary munry raccrecarcaz area gees.ml ecM or anor rnGe y J.7.-----F, AE Fj.'. ATTACHMENT 3 ATTACHMENT 2 FINAL FUNDING SUMMARY 2015 STREET RECONSTRUCTION PROJECT CITY OF PRIOR LAKE, MINNESOTA CITY PROJECT NO. TRN15-000004 BMI PROJECT NO.T18.109027 WEST SIDE AREA EAST SIDE AREA EAST SIDE AREA TOTAL ENGINEER'S FEASIBILITY STUDY PROJECT COSTS Reconstruction Reconstruction Rehabilitation PROJECT ESTIMATE PROJECTION Streets $ 1,056,813.78 $ 707,799.35 $ 211,051.55 $ 1,975,664.68 $ 1,974,041.10 $ 2,181,041.88 Sanitary Sewer $ 385,162.25 $ 255,983.10 $ - $ 641,145.35 $ 789,616.00 $ 767,902.15 Watermain $ 407,361.25 $ 300,072.30 $ - $ 707,433.55 $ 784,946.00 $ 892,650.88 Storm Sewer/Water Quality $ 200,987.85 $ 64,475.60 $ - $ 265,463.45 $ 271,534.50 $ 327,557.45 Alternate No.1(Sewer) $ - $ 96,250.00 $ - $ 96,250.00 $ 74,900.00 CONSTRUCTION CONTRACT $ 2,050,325.13 $ 1,424,580.35 $ 211,051.55 $ 3,685,957.03 $ 3,895,037.60 Street Lighting $ 8,000.00 $ 8,000.00 $ - $ 16,000.00 $ 16,000.00 TOTAL CONSTRUCTION COSTS $ 2,058,325.13 $ 1,432,580.35 $ 211,051.55 $ 3,701,957.03 $ 3,911,037.60 $ 4,169,152.36 TOTAL PROJECT OVERHEAD-Estimated $ 278,005.00 $ 193,489.60 $ 28,505.40 $ 500,000.00 $ 833,830.47 TOTAL PROJECT COSTS $ 2,336,330.13 $ 1,626,069.95 $ 239,556.95 $ 4,201,957.03 $ 5,002,982.83 WEST SIDE AREA EAST SIDE AREA EAST SIDE AREA TOTAL FEASIBILITY STUDY PROJECT FINANCING Reconstruction Reconstruction Rehabilitation PROJECT PROJECTION Assessments $ 574,539.13 $ 354,066.80 $ - $ 928,605.93 $ 1,129,895.69 Bonding $ 724,864.73 $ 487,160.52 $ 239,556.95 $ 1,451,582.20 $ 1,644,582.13 Sanitary Sewer $ 437,386.67 $ 400,074.16 $ - $ 837,460.83 $ 921,482.58 Watermain $ 462,595.64 $ 340,828.77 $ - $ 803,424.41 $ 1,071,181.06 Storm Sewer/Water Quality $ 136,943.96 $ 43,939.69 $ - $ 180,883.65 $ 235,841.37 TOTAL PROJECT FUNDING $ 2,336,330.13 $ 1,626,069.95 $ 239,556.95 $ 4,201,957.03 $ 5,002,982.83 WEST SIDE AREA EAST SIDE AREA EAST SIDE AREA Assessments Reconstruction Reconstruction Rehabilitation Projected Unit Assessment $8,092.10 $6,808.98 NA Number of Assessable Units 71 52 NA