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Home My WebLink About7C Credit River Road Assessment Roll O, PRlp6 ,._ „...., _ ‘,. u i r21 4646 Dakota Street SE Prior Lake, MN 55372 41INNESO'tP CITY COUNCIL AGENDA REPORT MEETING DATE: OCTOBER 12, 2015 AGENDA#: 7C PREPARED BY: SENG THONGVANH, PROJECT ENGINEER PRESENTED BY: SENG THONGVANH, PROJECT ENGINEER LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR AGENDA ITEM: PUBLIC HEARING TO CONSIDER A RESOLUTION ADOPTING THE ASSESS- MENT ROLL FOR THE CREDIT RIVER ROAD IMPROVEMENT PROJECT (PROJECT #TRN15-000006) DISCUSSION: Introduction This agenda item is necessary to receive public testimony and adopt the assess- ment roll for the Credit River Road Improvement Project. History Each year the City reconstructs street segments that are scheduled for reconstruc- tion as part of its Capital Improvement Program (CIP) and have exceeded their useful design life. The City uses the Capital Improvement Program and its Pave- ment Management Program to plan for infrastructure improvements and the fi- nancing for capital improvements. At its August 25, 2014 meeting the City Council adopted Resolution 14-124 authorizing staff to prepare a Feasibility 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 im- provements 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 properties were plat- ted 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 Report. The proposed im- provements include street reconstruction, storm sewer, storm water quality, sani- tary sewer, forcemain, lift station, watermain, concrete curb and gutter, and appur- tenant work. The Credit River Road project serves to re-build a critical lift station in the south- east 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 pro- ject will address all of the above issues. On November 24, 2014, the City Council accepted the feasibility report and sched- uled the Public Hearing. The hearing was held on December 22, 2014 and the City Council adopted Resolution 14-202 ordering the project and preparation of plans and specifications. In addition to the Public Hearing, the City has held four informational meetings to discuss the project. The last informational meeting was held on October 6, 2015 to provide property owners with assessment information prior to the Public Hear- ing. As part of the Feasibility Report, potential impacts to Credit River Road due to fu- ture reconstruction of the TH 13/CR 21 intersection was evaluated. The main op- tions 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 existing 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 re- construction 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 necessary. 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 necessary for this work. Scott County has taken the lead on the prop- erty acquisition portion for the project and has made offers to the property owners. The estimated cost for property acquisition is detailed in the Cooperative Agree- ment between the City of Prior Lake and Scott County. Scott County will be fund- ing the bulk of the property acquisition cost with the City contributing. On April 13, 2015 the City Council approved the project plans and specifications and authorized the advertisement for bids for the Credit River Road Improvement Project. At the May 26, 2015 Council Meeting, the Council awarded bids for the improvement project. The City has executed a contract with Chard Tiling &Excavating to construct the project. The project is under construction. Much of the underground utilities are completed and the contractor is currently in the process of building the street section on the portion west of Franklin Trail. The Assessment Review Committee met on several occasions to discuss this pro- ject. Most recently the Assessment Review Committee met on September 3, 2015 to review the project, assessment method, funding sources, and proposed assess- ment amounts. While the project scope and assessment method remain the same, the proposed assessments have been adjusted based on the benefit appraisal con- sultation. Current Circumstances All benefitting property owners have been mailed a sample payment schedule which included information pertinent to their property such as the total proposed assess- ment amount and assessment rate. The Notice of Hearing on Proposed Assess- ment was published in the newspaper on September 19, September 26, and Octo- ber 3, 2015. 2 Under State Statute, the City may only assess a property up to the amount the prop- erty is specially benefitted by the public improvement. Appraisals were conducted on several properties on the project. The property owners who believe that the proposed assessment exceeds the spe- cial benefit have a right to appeal their assessments in District Court. In order to perfect their right to appeal their assessment a property owner must submit their written and signed objections to the proposed assessment to the City Manager prior to the Assessment Hearing or present it to the City Council at the Assessment Hear- ing. Within 30 days of the Assessment Hearing, the property owner must also file the appeal in District Court. No appeals were received at the time this report was prepared. We have apprised each of the property owners of our Deferred Assess- ment Program. Conclusion The Council should open the Public Hearing at the time set forth in the notice, re- ceive public input and then close the Public Hearing. If certain issues need addi- tional study, those issues could be referred to the Assessment Review Committee for evaluation and recommendation; otherwise, it would be appropriate to approve the attached resolution. State Statute requires that special assessments be certified to the County by No- vember 30th. Since property owners must be allowed 30 days to pay off their as- sessments interest free, the assessment roll must be adopted prior to November 1, 2015. ISSUES: The final alignment of Credit River Road at Evanston Avenue requires that prop- erty acquisition is in place prior to construction. Property acquisition is a tedious process that is estimated to take 5-11 months. Scott County has completed ap- praisals for property acquisition and offers have been made to the property own- ers. Properties will not be acquired in time for construction this season but the City did pursue right of entries that will allow construction along the proposed alignment that impacts five properties. Unfortunately, the City was not able to ob- tain right of entries for all five properties and therefore would not be able to com- plete this stretch of Credit River Road until next construction season. A temporary gravel road section will be built to provide access through the winter. The estimated assessment rate per the Feasibility Report was proposed at $14,785/unit. With the bid prices, the estimated assessment amount is calculated 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 assessing the proper- ties $10,500 per unit, which is less than the calculated amount. The total assess- ment 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. The Assessment Review Committee has reviewed and agrees with the assessment map, assessment rate, and method of assessment. The unit method for the as- sessment is used due to the uniformity of benefit received by the benefited parcels and the relative consistency in parcel size. 3 FINANCIAL The Credit River Road Improvement Project is proposed to be financed by Special IMPACT: 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 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. The Council approved the issuance of general obligation street improvement bonds and initial transfers from the Water Fund and Sewer Fund in the spring of 2015 for this project. The interest rate for this project is proposed at 4.44%. A final project reconciliation will be prepared when the project is completed. The anticipated com- pletion date is Fall 2016 after the final lift of asphalt is completed. ALTERNATIVES: 1. Approve a resolution adopting the assessment roll as submitted for the Credit River Road Improvement Project#TRN15-000006. 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 Oi PRip4. 60 tri 4646 Dakota Street SE 4INiVEso Prior Lake,MN 55372 RESOLUTION 15-xxx A RESOLUTION ADOPTING ASSESSMENTS FOR THE CREDIT RIVER ROAD IMPROVEMENT PROJECT (CITY PROJECT#TRN15-000006) Motion By: 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 the Credit River Road Improvement Project, City Project#TRN15-000006. 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 proposed assessment for the Credit River Road Improvement Project, City Project#TRN15-000006, 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 benefitted by the proposed improvement in the amount of the assessment levied against it. 3. The assessment shall be payable on an equal principal method extending over a period of ten (10) years for street and storm improvements,the first of the installments to be payable on or before the first Monday, in January 2016, and shall bear interest at the rate of four and forty-four hundredths (4.44) percent per annum from the date of the adoption of this assessment resolution. To the first installment of each assessment shall be added interest on the entire assessment from October 13 until December 31 of the year in which the first installment is payable, and to each subsequent installment shall be added interest for one year on all unpaid installments. 4. 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 he/she may, at any time thereafter, pay to the city treasurer 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 next succeeding year. 5. The Finance Director shall forthwith transmit a certified duplicate of this 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. PASSED AND ADOPTED THIS 12th DAY OF OCTOBER 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye E ❑ ❑ ❑ ❑ Nay ❑ ❑ 0 0 0 Abstain 0 0 0 0 0 Absent 0 0 0 0 0 Frank Boyles, City Manager 2 PRELIMINARY ASSESSMENT ROLL DESCRIPTION: TRN1S-000006 CREDIT RIVER RD ASSESSMENT UNIT RATE(40%): STREET AND STORM SEWER ASSESSMENT CODE: INTEREST RATE: 4.44 TERM: 10 YEAR STREETS INITIAL YEAR: ADDITIONAL INTEREST: 80 DAYS TOTAL UNITS 27 STREETS PAYMENT METHOD: EQUAL PRINCIPAL ASSESSABLE STREET TOTAL ASSESSMENT NO. LEGAL DESCRIPTION PARCEL ADDRESS PARCEL NUMBER PROPERTY OWNER&ADDRESS UNITS ASSESSMENT AMOUNT Section 02 Township 114 Range 022 Block 001 JARED M HOFLOCK 1 Lot 002&003 SubdivisionCd 25001 4900 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 SubdivisionName CITY OF PRIOR LAKE 4900 CREDIT RIVER RD SE 258010160 PRIOR LAKE MN 55372 Section 02 Township 114 Range 022 COM PT ON E&W 1/16 LINE 35'W OF INT W/E LINE BRIAN 1 BERLE 2 BLK 1,CITY OF P.L.,S 90',W TO PT 57'E OF E 2017 NORTON DR 1 $ 10,500.00 $ 10,500.00 LINE BLK 1,(POB)S 173.9'TO N LINE OF RD,W 4916 CREDIT RIVER RD SE 259020680 SHAKOPEE MN 55379 TOMMIE N&DOLORES TRICHIE 3 Section 02 Township 114 Range 022 1.17A 4950 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 SE1/4 NE1/4 EX.53A 4950 CREDIT RIVER RD SE 259020700 PRIOR LAKE MN 55372 Section 02 Township 114 Range 022 SE1/4 DAVID L BUSSE 4 NE1/4 N OF RR,COM 168'E OF PT 195'W OF 4958 CREDIT RIVER RD 1 $ 10,500.00 $ 10,500.00 INT OF N LINE&E LINE OF BLK 1 4958 CREDIT RIVER RD SE 259020520 PRIOR LAKE MN 55372 PAUL E BAUMGARTNER 5 SubdivisionName BORGERDING ADDN Lot 002 4944 MINNESOTA ST SE 1 $ 10,500.00 $ 10,500.00 SubdivisionCd 25010 4964 CREDIT RIVER RD SE 250100020 PRIOR LAKE MN 55372 SubdivisionName BORGERDING ADDN Lot 003 CRAIG D RASMUSSEN 6 SubdivisionCd 25010 LYING W OF LINE COM PT 13536 RHODE ISLAND AVE S 1 $ 10,500.00 $ 10,500.00 ON N LINE OF LOT 3 10'W OF NE COR,S TO SE 4980 CREDIT RIVER RD SE 250100030 SAVAGE MN 55378 SubdivisionName BORGERDING ADDN Lot 004 JAMES D&JOANN B LARSON 7 SubdivisionCd 25010&P/0 LOT 3 LYING E OF 4994 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 LINE COM 10'W OF NE COR,S TO SE COR& 4994 CREDIT RIVER RD SE 250100040 PRIOR LAKE MN 55372 SubdivisionName COSTELLO'S ADDN Lot 006 MICHAEL F SHOEMAKER 8 Block 004 SubdivisionCd 25004&S 130'OF 6& 5008 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 PLO LOT 7 LYING NW OF LINE COM 145'S OF 5008 CREDIT RIVER RD SE 250040360 PRIOR LAKE MN 55372 SubdivisionName COSTELLO'S ADDN Lot 008 PETER J JR PAVICH 9 Block 004 SubdivisionCd 25004 LOTS 8-10 EX 5032 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 COM 23'S OF NW COR LOT 8,SE TO PT ON E 5032 CREDIT RIVER RD SE 250040370 PRIOR LAKE MN 55372 SubdivisionName COSTELLO'S ADDN Block 004 SubdivisionCd 25004 S'ERLY P/O 10-11-12& EDWIN L&AMY E BOUNDS 10 P/O VACATED ST PAUL AVE(ORIGINALLY 5050 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 PRIOR AVE) 5050 CREDIT RIVER RD SE 250040351 PRIOR LAKE MN 55372 SubdivisionName COSTELLO'S ADDN Block 004 MICHELLE M&JAMES J SINKULA 11 SubdivisionCd 25004 S 130'OF LOTS 1 THRU 5 16280 ST PAUL AVE SE 1 $ 10,500.00 $ 10,500.00 &P/O 8 THRU 12 EX S'ERLY P/O 10-12,&P/O 16280 ST PAUL AVE SE 250040350 PRIOR LAKE MN 55372 Section 01 Township 114 Range 022 SW1/4 COUNTRYWIDE HOME LOANS INC 12 NW1/4 COM SE COR OF COSTELLO'S ADDN,N 400 COUNTRYWIDE WAY 1 $ 10,500.00 $ 10,500.00 150',E 120 5 TO N LINE OF CREDIT RIVER RD 5086 CREDIT RIVER RD SE 259010130 SIMI VALLEY CA 93065 Page 1 Section 01 Township 114 Range 022 SW1/4 NW1/4 150'N&120'E OF SE COR COSTELLO'S SALLY A HAYUNGA 13ADDN E 120',S TO N LINE OF CREDIT RIVER RD 5102 CREDIT RIVER BLVD 1 $ 10,500.00 $ 10,500.00 NW ALONG ROW TO POB. 5102 CREDIT RIVER RD SE 259010131 PRIOR LAKE MN 55372 STEVEN ALLAN GIGSTAD 14 SubdivisionName BROOKSVILLE HILLS 1ST 5114 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 ADDN Lot 001 Block 001 SubdivisionCd 25013 5114 CREDIT RIVER RD SE 250130010 PRIOR LAKE MN 55372 LOREN L&BEVERLY1 STEVEN 15 SubdivisionName BROOKSVILLE HILLS 1ST 5128 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 ADDN Lot 002 Block 001 SubdivisionCd 25013 5128 CREDIT RIVER RD SE 250130020 PRIOR LAKE MN 55372 LAWRENCE H SCHMID 16 SubdivisionName BROOKSVILLE HILLS 1ST 5138 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 ADDN Lot 003 Block 001 SubdivisionCd 25013 5138 CREDIT RIVER RD SE 250130030 PRIOR LAKE MN 55372 TAMMY L STITZINGER 17 SubdivisionName BROOKSVILLE HILLS 1ST 5168 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 ADDN Lot 002 Block 002 SubdivisionCd 25013 5168 CREDIT RIVER RD SE 250130050 PRIOR LAKE MN 55372 KENNETH N WEILER 18 SubdivisionName BROOKSVILLE HILLS 1ST 5182 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 ADDN Lot 003 Block 002 SubdivisionCd 25013 5182 CREDIT RIVER RD SE 250130060 PRIOR LAKE MN 55372 NATHAN D WENNINGER 19 SubdivisionName BROOKSVILLE HILLS 8TH 5200 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 ADDN Lot 001 Block 001 SubdivisionCd 25260 5200 CREDIT RIVER RD SE 252600010 PRIOR LAKE MN 55372 STEVEN M&KATHRYN BLONIGAN 20 SubdivisionName BROOKSVILLE HILLS 8TH 5210 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 ADDN Lot 002 Block 001 SubdivisionCd 25260 5210 CREDIT RIVER RD SE 252600020 PRIOR LAKE MN 55372 RYAN S STEFFEN 21 SubdivisionName BROOKSVILLE HILLS 8TH 5218 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 ADDN Lot 003 Block 001 SubdivisionCd 25260 5218 CREDIT RIVER RD SE 252600030 PRIOR LAKE MN 55372 KALEN 1 FISCHER 22 SubdivisionName BROOKSVILLE HILLS 8TH 5234 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 ADDN Lot 004 Block 001 SubdivisionCd 25260 5234 CREDIT RIVER RD SE 252600040 PRIOR LAKE MN 55372 CHARLES HOPKE 23 SubdivisionName BROOKSVILLE HILLS 8TH 5242 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 ADDN Lot 005 Block 001 SubdivisionCd 25260 5242 CREDIT RIVER RD SE 252600050 PRIOR LAKE MN 55372 Section 01 Township 114 Range 022 P/0 LARRY A SHEPARD 24 SW1/4 COM SE COR SW1/4,N ALONG E LINE 5290 CREDIT RIVER RD SE 2 $ 10,500.00 $ 21,000.00 SW1/4 1140.23',N 62-31-00 W 838.58',N 50- 5290 CREDIT RIVER RD SE 259010114 PRIOR LAKE MN 55372 Section 01 Township 114 Range 022 P/O SW1/4 COM 1140.23'N OF SE COR SW1/4,N LARRY A SHEPARD 2562-31-00 W 838.58',N 50-32-00 W 390.62'TO 5290 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 POB,N 39-08-00 E 208',N 50-32-00 W 96',S 39 5310 CREDIT RIVER RD SE 259010112 PRIOR LAKE MN 55372 Section 01 Township 114 Range 022 P/0 DONALD&MARY 1 KLINGBERG 26 SW1/4 COM 1141'N OF SE COR SW1/4 TO CL 5330 CREDIT RIVER RD SE 1 $ 10,500.00 $ 10,500.00 CO RD 12,N 62-31-W 836.85',N 50-32-W 5330 CREDIT RIVER RD SE 259010120 PRIOR LAKE MN 55372 27 Total $ 283,500.00 Page 2