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Home My WebLink About7B Manitou Road Adopt Assessment Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: OCTOBER 24, 2016 AGENDA #: 7B PREPARED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR PRESENTED BY: LARRY POPPLER AGENDA ITEM: PUBLIC HEARING TO CONSIDER APPROVAL OF A RESOLUTION ADOPT- ING THE ASSESSMENT ROLL FOR THE MANITOU ROAD IMPROVEMENT PROJECT (PROJECT #TRN16-000001) DISCUSSION: Introduction This agenda item is necessary to adopt the assessment roll for the Manitou Road Improvement Project. History Each year the City reconstructs street segments that have exceeded their useful design life and are scheduled as part of its Capital Improvement Program (CIP). The City uses the Capital Improvement Program and its Pavement Management Program to plan and finance infrastructure 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, and Raspberry Ridge 1st Addition located in Sections 26 & 25, Township 115, Range 22. These proper- ties 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 improvements include street reconstruction, storm sewer, storm water quality, sanitary sewer, watermain, con- crete curb and gutter, and appurtenant work. On November 23, 2015, the City Council accepted the Feasibility Report, sched- uled the public hearing, and directed staff to evaluate two additional options for cost savings. On January 11, 2016, the City Council held the Public Hearing and adopted Reso- lution 16-006 ordering the improvement project. On March 14, 2016 the City Coun- cil approved the project plans and specifications and authorized the advertisement for bids for the Manitou Road Improvement Project. The City Council awarded the bid to Northwest Asphalt at their April 25, 2016 City Council meeting. 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 13, 2016 2 and offered residents the opportunity to learn and discuss the assessments. At the meeting, persons from 3 properties were in attendance. Current Circumstances Construction of the project is currently ongoing with the anticipated substantial completion date of October 31, 2016. 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 official newspaper. Under State Statute, the City may only assess a property up to the amount the prop- erty is specially benefitted by the public improvement. Property owners who believe that the proposed assessment exceeds the special 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 pre- sent it to the City Council before the close of the Assessment Hearing. Within 30 days of the Assessment Hearing, the property owner must also file the appeal in District Court. We have apprised each of the property owners of our Deferred As- sessment Program. Conclusion 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 Assessment Review Work Group 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. 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. The remaining amounts should be recovered through the general ad valorem property tax. The estimated assessment rate per the Feasibility Report was proposed at $11,207/unit. A number of residents shared their concerns that the assessment rate was high and they are hoping for lower assessments once the bids have been received. With the bids received, the estimated proposed assessment was $9,410/unit. During construction, additional savings have resulted in a revised fi- nal assessment amount of $8,963.24 per unit. 3 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 contract prices and work performed to date. Funding sources and amounts are as shown below: ITEMS COST* Street/Storm Sewer $1,064,380 Watermain $ 579,322 Sanitary Sewer $ 365,183 Water Quality $ 56,881 TOTAL PROJECT COST $ 2,065,766 *Includes City’s Project Support Costs for: 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. Conduct the public hearing and if no new substantive information is offered, ap- prove a resolution adopting the assessment roll as submitted for the Manitou Road Improvement Project #TRN16-000001. 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: Motion and second for approval of alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-XXX A RESOLUTION ADOPTING ASSESSMENTS FOR THE MANITOU ROAD IMPROVEMENT PROJECT (CITY PROJECT #TRN16-000001) 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 Manitou Road Improvement Project, City Project #TRN16-000001. 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 Manitou Road Improvement Project, City Project #TRN16- 000001, 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 in the total amount of $8,963.24 per unit 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 three and sixty-nine hundredths (3.69) 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 25 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 24th DAY OF OCTOBER 2016 2 VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager