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HomeMy WebLinkAbout5G Manitou Road Set Assessment Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 26, 2016 AGENDA #: 5G PREPARED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR PRESENTED BY: LARRY POPPLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE AS- SESSED AND ORDERING PREPARATION OF AN ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR THE MANI- TOU ROAD IMPROVEMENT PROJECT (PROJECT #TRN16-000001) DISCUSSION: Introduction This agenda item is necessary to set an assessment hearing and to establish the amount to be assessed for the Manitou 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 24, 2015 meeting the City Council adopted Resolution 15-137 authorizing staff to prepare a Feasibility Report for the 2016 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 Manitou Road and Raspberry Ridge neighborhoods are considered in the re- port and includes improvements to Kopps Bay Addition, Kopps Bay Second Addi- tion, Mary Margaret 1st Addition, Raspberry Ridge Addition, Raspberry Ridge 1st Addition, Raspberry Ridge 2nd Addition, and Raspberry Ridge 3rd Addition located in Sections 26 & 25, Township 115, Range 22. These properties were platted and developed from 1950’s to 1990’s. A map of the project area (Exhibit 1) is included in the Feasibility Report. The proposed improvements include street reconstruc- tion or reclamation, storm sewer, storm water quality, sanitary sewer, watermain, concrete curb and gutter, and appurtenant work. On November 23, 2015, the City Council accepted the Feasbility Report, sched- uled the public hearing, and directed staff to evaluate two additional options for cost savings. The two additional options were evaluated by Staff and presented to City Council at the December 14, 2015 Council Workshop. Both options included improve- ments to Manitou Road, lining of the 15” RCP sanitary sewer, and different options addressing the larger watermain pipes within the Raspberry Ridge Neighborhood. Option “C” proposes to use open cut replacement for the 16” watermain and re- 2 construction of the street sections that contains the 16” watermain pipes. This op- tion would assess for street reconstruction per the assessment policy. Option “D” proposes to use trenchless technology (lining) to rehabilitate the existing 16” wa- termain and no reconstruction of the existing streets within the Raspberry Ridge Neighborhood. After discussion of all the options, the Council directed staff to pro- ceed with Option D. On January 11, 2016, the City Council held the Public Hearing and adopted Reso- lution 16-006 ordering the improvement project. In addition to the Public Hearing, the City has held three informational meetings to discuss the project. The last informational meeting was an open house held on February 17, 2016 and offered residents the opportunity to comment on the pro- posed plans. At the open house, persons from 13 properties were in attendance. City staff explained the proposed design and passed out information regarding the private driveway program. During the design process, a number of property own- ers voiced concerns regarding the alignment of the street and how it would impact their properties. After evaluation of the alignment and existing conditions, the alignment of Manitou Road did not change much except for three areas where the alignment may have shifted 2-3’. The shifts were not significant and were neces- sary to provide safer curves and tangents. Positive feedback was received for the proposed alignment at the open house. On March 14, 2016 the City Council approved the project plans and specifications and authorized the advertisement for bids for the Manitou Road Improvement Pro- ject. The City Council awarded the bid to Northwest Asphalt at their April 25, 2016 City Council meeting. Current Circumstances The proposed improvements include street reconstruction, storm sewer, storm wa- ter quality, sanitary sewer, forcemain, lift station, watermain, concrete curb and gutter, and appurtenant work. Construction of the project is currently ongoing with the anticipated substantial completion date of October 31, 2016. ISSUES: 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. Pursuant to the Assessment Policy, the street and storm sewer reconstruction should be assessed at up to 40% of the total project cost against the benefiting properties. As been in past practice in residential neighborhoods, the Assessment Review Workgroup recommends the unit method of assessment due to the fact that lots in the project area are of similar size. The remaining amounts should be recov- ered through the general ad valorem property tax. The estimated assessment rate per the Feasibility Report is proposed at $11,207/unit. A number of residents have shared their concerns that the assess- ment rate was high and they are hoping for lower assessments once the bids have been received. With the bids received, the estimated proposed assessment is 3 $9,410/unit. During construction, additional savings results in a revised assess- ment amount of $8,963.24 per unit. FINANCIAL IMPACT: The Manitou Road Improvement Project is proposed to be financed by Special As- sessments, tax levy, Sewer Fund, Water Fund, and Water Quality 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* $ 958,942 Watermain $ 500,799 Sanitary Sewer $ 315,685 Street Lights $ 10,340 City’s Project Support Costs** $ 280,000 TOTAL PROJECT COST $ 2,065,766 *Includes Water Quality Costs **City’s Project Support Costs includes the following: Engineering Administration Financing Assessments $421,272 Sewer Fund $365,183 Water Fund $579,322 Water Quality Fund $56,881 Tax Levy $643,108 Project Total Cost $2,065,766 ALTERNATIVES: 1. Approve a resolution declaring the costs to be assessed, ordering the preparation of the proposed assessment rolls for the Manitou Road Improvement Project #TRN16-000001, and establishing October 24, 2016 for the assessment hearing date. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Motion and second for approval of alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-XXX A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE MANITOU ROAD IMPROVEMENT PROJECT #TRN15-000006 AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF Motion By: Second By: WHEREAS, Costs have been determined for the improvement of Manitou Road, Project #TRN16-000001, the City cost for the improvements are $2,065,766.40; 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 $1,644,494.14, and the portion of the cost to be assessed against benefited property owners is declared to be $421,272.26. 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 3.69% 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 24th day of October, 2016, 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 2 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 26th DAY OF SEPTEMBER 2016. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager