HomeMy WebLinkAbout7A Overlay Public Hearing Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: MARCH 13, 2017
AGENDA #: 7A
PREPARED BY: JASON WEDEL, INTERIM PUBLIC WORKS DIRECTOR
PRESENTED BY: JASON WEDEL
AGENDA ITEM: PUBLIC HEARING TO CONSIDER APPROVAL OF A RESOLUTION
ORDERING THE IMPROVEMENTS FOR THE 2017 OVERLAY
IMPROVEMENT PROJECT, CITY PROJECT #STR17-000001 AND
PREPARATION OF PLANS AND SPECIFICATIONS
DISCUSSION: Introduction
The purpose of this agenda item is to receive comments on the 2017
Overlay Project and if appropriate order the improvements. Approval of the
resolution ordering the improvements requires a 4/5ths vote.
History
On November 28, 2016, the City Council ordered the preparation of a
feasibility study for the 2017 Street Improvements Project (Street Project
#STR17-0000001). The feasibility study was necessary because a portion
of the funding for this project is proposed to come from special
assessments. State Statutes dictate that a feasibility study can either be
initiated by a petition of the affected property owners, or at the direction of
the City Council. This project was initiated at the direction of the City
Council.
Identification of the areas proposed for mill and overlay in 2017 are a result
of the City’s ongoing Pavement Management Program. The program was
implemented to maximize the useful life of the City’s streets and provide a
schedule which, if followed on a long term and ongoing basis should
maintain city road infrastructure at an average condition level of 70 out of
100.
Based on the Pavement Management Program data and field reviews by
City staff, the following streets were identified to be included in the 2017
Street Improvements:
Street From To
Kildeer Ln SE Crossandra St SE End
Mallard Way SE Crossandra St SE End
Wren Ct SE Crossandra St SE End
Parkview Circle SE Fish Point Rd SE End
Crossandra Circle SE Crossandra St SE End
2
Crossandra St SE Fish Point Rd SE- West
Side
Crosswalk
Crossandra St SE Victoria Curve SE Fish Point Rd SE
Cardinal Ridge Tr SE Crossandra St SE End
Cardinal Ridge Tr SE Crossandra St SE Fish Point Rd SE
Parkview Dr SE Cardinal Ridge Tr SE End
Parkview Dr SE Cardinal Ridge Tr SE Crossandra St SE
Oriole Pl SE Crossandra St SE End
Victoria Curve SE Fish Point Rd SE Parkview Dr SE
High Pointe Ct SE Fish Point Rd SE End
Overlook Circle SE Fish Point Rd SE End
Meadowview Ct SE Fish Point Rd SE End
Five Hawks Ave TH 13 Priorwood St SE
A map of the proposed project area is included in the Feasibility Report.
At the February 13, 2017 City Council meeting, the Council accepted the
feasibility study and scheduled the Public Hearing for March 13th, 2017.
Notices have been sent to the affected property owners so they would be
aware of the hearing and the opportunity to address the city council.
Current Circumstances
The properties deemed to specially benefit from the improvements are
subject to assessment. Some properties do not directly abut Five Hawks
Avenue SE but do receive their access to and from the transportation
system through this roadway and therefore should be assessed for this
special benefit.
Conclusion
City Staff is prepared to discuss each of the concerns presented at the
Public Hearing. If the Council deems the issues that have been brought up
need to be addressed in the project plans and specif ications, direction
could be given to staff.
The purpose of this Public Hearing is to determine if the project should
move forward . Completion of plans and specifications would be the next
step. Once they have been completed, they will be submitted to City
Council for approval and authorization to advertise for bids. The Council
could decide not to continue with the project upon receipt of the bids. A
separate Assessment Hearing can be scheduled at any time.
It is recommended to hold the assessment hearing in the fall so that
property owners can see the results of the project prior to the assessment
hearing. However, the proposed assessments have been established
according to the City’s 2017 Fee Schedule are are not dependent upon the
actual construction costs nor will they cover the entire construction cost.
Therefore the assessment hearing could be held prior to awarding the bid.
3
ISSUES: This will be the first pavement overlay project that will be completed under
the revised City Assessment Policy. The City Council approved
amendments to the Assessment Policy so that street reclamation and
street overlay projects would be assessed at their regular meeting on May
23, 2016.
It was concluded by the City Council that the use of assessments for
reclamation and overlay projects was appropriate and provides a funding
source that reduces the overall tax levy by distributing a portion of the
costs to the benefitting property owners.
Per the Assessment Policy, the assessment rate in 2017 for street overlay
projects is $1,200 for single family and $960 for multifamily (0.8 x $1,200).
Commercial and industrial parcels are assessed based on their
Residentual Equivalent Density (RED). The assessment rate will be
adjusted annually with an escalator based on the Construction Cost Index
(CCI). The assessment period is over 5-years.
Based on the age of the City’s existing streets, the City is entering a time
period where more streets are in need of timely mill and overlay projects to
extend their useful lives. The previous method of funding these projects
put pressure on the tax levy. Utilizing special assessments brings greater
equity to the City’s funding of transportation improvements.
The City has received the attached correspondance from several residents
that are concerned with being assessed for this project.
FINANCIAL
IMPACT:
The 2017 adopted Budget included the issuance of $300,000 in Revolving
Fund Bonds to partially finance the 2017 overlay project. Based on the
scope of the project, the bond amount will need to be increased slightly.
The remainder of the cost will be paid by the tax levy. Repayment of the
bonds will be provided by Special Assessments. The funding source and
the corresponding estimated amounts are shown below:
Ad Valorem $168,164
Assessments $348,836
Total $517,000
No other funding sources are currently available to assist with this project.
It is important to note that if the City Council were to reduce or eliminate
the assessments for this project at the assessment hearing, the only
alternative would be to increase the general tax levy to cover the project
budget shortfall. Since the 2017 budget is adopted this would mean a
reduction in approved budget expenditures or reliance upon the general
fund reserve.
ALTERNATIVES: 1. Conduct the public hearing and assuming that no substantive new
information is offered, approve a Resolution Ordering the 2017
Overlay Project, City Project #STR17-000001 as proposed or with
amendments.
2. Deny this item for a specific reason and provide staff with direction.
4
3. Table this item until some date in the future.
RECOMMENDED
MOTION:
A motion and a second for approval of Alternative #1. Approval of this
agenda item requires a 4/5ths vote.
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-___
ORDERING IMPROVEMENTS AND PREPARATION OF PLANS AND SPECIFICATIONS
FOR PROJECT # TRN17-000001
Motion By: Second By:
WHEREAS, The Prior Lake City Council on its own initiative has determined that it desires to
complete the Public Improvements for the 2017 Overlay Project; and
WHEREAS, On February 13, 2017; the City Council accepted the Feasibility Report and called
for a Public Hearing to be held for the 2017 Overlay Project which includes
bituminous surfacing and appurtenant work; and
WHEREAS, Ten days mailed notice and two weeks published notice of the hearing was given,
and the hearing was held on the 13th day of March, 2017, at which time all persons
desiring to be heard were given an opportunity to be heard thereon; and
WHEREAS, Since the project was initiated by the City Council it must be approved by 4/5ths
vote in accordance with Minnesota Statutes 429.031 Subdivision 1(f);
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. Such improvement is necessary, cost-effective, and feasibile as detailed in the feasibility
report.
3. The City Council by the required statutory 4/5ths vote does hereby order the project as
outlined in the feasibility study.
4. The Interim Public Works Director is hereby designated as the Engineer for these
improvements and is authorized to record engineering expenses in the Construction Fund
(#501-43500.00-55020-STR17-000001).
5. The Engineer shall prepare plans and specifications for the making of such improvements
for the 2017 Overlay Project.
6. The City Council authorizes the following preliminary funding sources and corresponding
transfers to the Construction Fund for the project:
Ad Valorem $168,164
Assessments $348,836
Total $517,000
C:\Users\aschroeder\Desktop\17-XXX Overlay Public Hearing.docx 2
Passed and adopted by the Prior Lake City Council this 13th day of March, 2017
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager
1
Ann Schroeder
From:Jason Wedel
Sent:Friday, February 17, 2017 8:47 AM
To:
Cc:Frank Boyles; Dave Elbon; Kirt Briggs; Zach Braid; Kevin Burkart; Mike McGuire; Ann Schroeder; Larry
Poppler
Subject:FW: Initial Overlay Project Questions
Dear Ms. Nauertz:
Thank you for providing your questions/concerns regarding the 2017 Mill and Overlay Project. We will make
sure that these get included in the City Council’s packet for the public hearing that is being held on March 13th
and they will be made part of the project record. I would also like to address some of these questions now to
provide you with some additional information since you will not be able to attend the public hearing.
1. The discussion that you are referring to at the Franklin Trail public hearing was related to
assessing townhomes that did not have direct frontage on Franklin Trail but the first public street
they connect to, which provides their sole access, is Franklin Trail. Therefore, they are proposed
to be assessed for the Franklin Trail improvements. The City’s position is that each property
owner is responsible for being assessed a portion of the reconstruction cost of a public street
project. An example would be if you lived on a corner lot and one year the street in front of your
home was reconstructed and the following year the street on the side of your house was
reconstructed. You would not be assessed twice. You would only be assessed once for the street
where your driveway accesses the public roadway. This does not mean that once you are
assessed for a street project you will never be assessed again. Streets have a life expectancy and
when they need to be replaced there will be associated assessments. If you live at your home
long enough you could be subject to future assessments.
2. In 2016, the City reviewed the status of our pavement management program and it was
determined that we were not able to keep up with the roads that need replacement using only our
general tax levy funds. The City had not previously assessed for mill and overlay projects
despite there being a benefit to the properties that abutted those improvements. We looked at
other communities surrounding Prior Lake to see what they were doing and many of them were
assessing for mill and overlay projects including Savage and Lakeville. The City decided to
implement assessments for mill and overlay projects starting in 2017 and set a fee for the
assessments that is included in the City’s 2017 Fee Schedule. The fee does not cover all of the
cost of the mill and overlay and the City’s general tax levy is still contributing to a portion of the
cost. This is the first year of implementing this assessment so that is why your parents were not
assessed previously.
3. As I mentioned above, the City’s general tax levy is unable to fully fund the mill and overlay
program. One option could have been to raise taxes across the entire City to cover this
cost. However, the City’s position has been that property owners that are receiving a mill and
overlay in front of their property should partially contribute to the cost because they are
receiving a benefit. For example, if you looked at two identical homes and one was located on a
street that had just received a mill and overlay and the other was on a street that was cracked and
broken up, the value of the home on the milled and overlaid street would be higher. That is a
2
benefit specific to the property owner that receives the mill and overlay and that is why a portion
of the cost is being assessed.
It is an unfortunate fact that no matter when we conduct our hearings, the date will not be the best for
someone. I also want to note that we appreciate your concern with holding the public hearing during spring
break. Unfortunately, we are constrained by the timing of this project and the need to get it completed during
the summer when school is not in session. If the City Council moves forward with the project we still need to
complete the plans and specifications, advertise for bids, and award the project before construction can begin
which makes for a very tight schedule. Please remember that there will be a separate assessment hearing where
you will have another opportunity to address the City Council regarding the proposed assessment. We actually
have some flexibility in regards to when the assessment hearing will be held and I would appreciate your
thoughts on when the best time would be for that to be scheduled. Any thoughts you have on this would be
greatly appreciated.
I hope this helped answer some of your questions.
Thank you.
Jason Wedel
From:Jason
Wedel
mailto:JWedel@wsbeng.com]
Sent:Thursday,February 16,2017 7:45 AM
To:Jason Wedel jwedel@cityofpriorlake.com>
From: Michelle Nauertz [
Sent: Wednesday, February 15, 2017 9:36 AM
To: 2017Overlay
Cc: Jake Theisen; Jason Wedel; info@cityoforpriorlake.com; kbriggs@cityofpriorlake.com; zbraid@cityofpriorlake.com;
kburkart@cityofpriorlake.com; mmcguire@cityofpriorlake.com; athompson@cityofpriorlake.com
Subject: Re: Initial Overlay Project Questions
Thank you Barb.
All – Below are additional questions I have regarding the Cardinal Ridge Overlay project. I did attend the Feb 13th
Franklin Trail public hearing to try to understand the general assessment methods.
1. During the Franklin Trail meeting, there was mention that there is a policy that each resident will have a one-time
opportunity' to be assessed for road repair. Can you give me more information on this policy and how/when it is
determined?
2. My parents are Prior Lake residents and had an overlay project a few years ago. They were not assessed a
fee. Can you explain why?
3. Why are these overlay projects not covered in the property taxes we already pay? Is this a budget planning
issue?
Also, I would like it noted that the timing of the public hearing (Mar. 13) is unfortunate given it is during our school district's
Spring Break. I understand that meetings can't accommodate everyone's schedule and the need to stay on
schedule. However, I do think that if you are seeking public input into City projects, and the impacted areas of the City
have higher school age kids, there should more coordination with the school calendar. I am out of town with my family
and unable to attend this public hearing. I look forward to receiving answers to the above questions.
Jason Wedel,PE
Interim Public Works Director
City of Prior Lake 17073 Adelmann St.SE Prior Lake,MN 55372
Direct:952.447.9890 Main:952.447.9800
3
Sincerely,
Michelle
From:2017Overlay 2017Overlay@cityofpriorlake.com>
Date:Tuesday,February 14,2017 8:50 AM
To:Matthew Nauertz
Cc:Jake Theisen jtheisen@CityofPRIORLAKE.com>,Jason Wedel JWedel@wsbeng.com>
Subject:RE:Initial Overlay Project Questions
Good morning Michelle,
To keep this project on schedule we will be unable to change the date.If you have a question or concern that you
would like brought during this meeting you may submit a letter or email to be included with the Council Packet.This
would need to be received by March 6th at noon to be included in the packet.
Barb
From:Michelle Nauertz
Sent:Thursday,February 09,2017 2:59 PM
To:2017Overlay 2017Overlay@cityofpriorlake.com>
Subject:Re:Initial Overlay Project Questions
Importance:High
Thank you – you may want to reconsider the date of this meeting as it falls during the school districts Spring Break and I
know this subdivision is FULL of school age kids and families will be out of town. Please let me know if a change is
possible.
From:2017Overlay 2017Overlay@cityofpriorlake.com>
Date:Thursday,February 9,2017 10:10 AM
To:Matthew Nauertz
Subject:RE:Initial Overlay Project Questions
Public is invited to speak on March 13 meeting.Further information on the Public Hearing will be sent out after the
meeting on Monday.
Barb
From:
Michelle Nauertz
Sent:Wednesday,February 08,2017 4:39 PM
To:2017Overlay 2017Overlay@cityofpriorlake.com>
Subject:Re:Initial Overlay Project Questions
Thank you. Is the meeting on Feb 13 open for public forum to address questions? When and where is the
meeting?
Sent from my iPhone
Barb Thompson
Public Works Assistant
City of Prior Lake 17073 Adelmann St.SE Prior Lake,MN 55372
Direct:952.447.9896|Main:952.447.9800
4
On Feb 8, 2017, at 3:59 PM, 2017Overlay <2017Overlay@cityofpriorlake.com> wrote:
Hi Michelle,
Here are the answers to the questions
1. Each household impacted my the city project will need to pay $1200 – correct? Yes, each single
family residential unit will be assessed $1,200
2. One time pay-off in Sept 2017 or 5 year pay-off with our property taxes - correct? Yes. You will
have until Nov 30, 2017 to pay off the assessment before it is assessed to your property
3. What is the interest rate of the 5 year plan? Since the bond sale has not yet taken place we do
not have an exact interest rate, but it is estimated by our Finance Department to be near 3.79%
that it was in 2016. More information on the interest rate will be available after the bond sale.
4. We live on a corner – this project seems to impact the Cardinal Ridge Dr. (the side of our
house). When/if the an overlay project impacts the front of our house (Parkview Dr SE) will we be
assessed another fee? At this time we are improving Cardinal Ridge Dr and Parkview and you
will be assessed the $1,200. You would not be charged twice if we did only 1 side of your house
for improvements, assessments are charged by “front of house” or side that the driveway abuts
the street.
I hope this has answered your questions, please let me know if I can assist with anything else.
Barb
From:Michelle Nauertz
Sent:Friday,February 03,2017 4:35 PM
To:2017Overlay 2017Overlay@cityofpriorlake.com>
Subject:Initial Overlay Project Questions
Hello,
We live at 16261 Parkview Dr SE. I am reviewing the information regarding this summer's overlay project
and fee assessments to the property owners. Questions:
1. Each household impacted my the city project will need to pay $1200 – correct?
2. One time pay-off in Sept 2017 or 5 year pay-off with our property taxes - correct?
3. What is the interest rate of the 5 year plan?
4. We live on a corner – this project seems to impact the Cardinal Ridge Dr. (the side of our
house). When/if the an overlay project impacts the front of our house (Parkview Dr SE) will we be
assessed another fee?
Thanks,
Michelle
image001.png> Barb Thompson
Public Works Assistant
City of Prior Lake 17073 Adelmann St.SE Prior Lake,MN 55372
Direct:952.447.9896|Main:952.447.9800