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Home My WebLink About8E 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: APRIL 10, 2017 AGENDA #: 8E PREPARED BY: JASON WEDEL, INTERIM PUBLIC WORKS DIRECTOR PRESENTED BY: JASON WEDEL AGENDA ITEM: 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 order the improvements for the 2017 Overlay Project if appropriate. The Public Hearing was held on March 13th, 2017. A motion to order the improvement failed on a 3-1 vote. A motion to renew this item for consideration at a future City Council meeting when the full City Council would be present was approved 4-0. 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. 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 Crossandra St SE Fish Point Rd SE- West Side Crosswalk 2 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. Current Circumstances The properties deemed to specially benefit from the improvements are subject to assessment. Some properties do not directly about 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 The public hearing for this project was opened and closed on March 17, 2017. 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 specifications, direction could be given to staff. 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 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. ISSUES: This will be the first pavement overlay project that will be completed under the revised City Assessment Policy. The City Council approved 3 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 Residential 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. 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 $166,643 Assessments $350,357 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. ALTERNATIVES: 1. 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. 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 $166,643 Assessments $350,357 Total $517,000 2 Passed and adopted by the Prior Lake City Council this 10th day of April, 2017 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager