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HomeMy WebLinkAbout5N Rolling Oaks Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MAY 22, 2017 AGENDA #: 5N PREPARED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR PRESENTED BY: LARRY POPPLER AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ORDERING THE PREPARATION OF A FEASIBILITY REPORT FOR THE ROLLING OAKS IMPROVEMENT PRO- JECT DISCUSSION: Introduction The purpose of this agenda item is to initiate the process for local improvements set forth in the 2017-2021 Capital Improvement Program in accordance with Min- nesota Statutes (M.S.), Chapter 429. History The City uses the Five Year Capital Improvement Program to plan its infrastruc- ture improvements and the financing for capital improvements. The Rolling Oaks Improvement project proposes to extend utility connections and improve the road- way for properties within the project area. The M.S. Chapter 429 process applies to all projects that will be financed in whole or part through special assessments or bond proceeds. The first step in the pro- cess is for the Council to order the preparation of a Feasibility Reports for the im- provement project. The Feasibility Report will address options and costs for the utility extension and street reconstruction of the streets. City assessment policy will be applied to the preliminary assessment calculation which is completed as a part of the Feasibility Report. In 2014, a feasibility report for this project was prepared. On April 28, 2014, the City Council approved a resolution accepting a feasibility report for the project. On May 27th, 2014, the City Council held a Public Hearing and on June 23rd author- ized the preparation of plans and specifications. Soon after these authorizations were approved, the developer for the neighboring property retracted their develop- ment application. Since the developer contribution was an important funding source for the Rolling Oaks project, work on the city project for Rolling Oaks stopped. A grant application was submitted to the Minnesota Public Facilities Au- thority but was not selected for funding. On May 9th, the City met with property owners from Rolling Oaks. After much dis- cussion, there was consensus that a feasibility report update was needed to fully evaluate options for a project. 2 Current Circumstances This project is in the Capital Improvement Program. The project requires special assessments and financing through bond proceeds, and therefore requires the City to follow the requirements of M.S. Chapter 429 including the preparation of the Feasibility Report. The primary purpose for proceeding with this project is to provide utility connec- tions for these properties and to upgrade the streets. Rolling Oaks is currently a gravel roadway. The improvements would upgrade Rolling Oaks to a standard paved City street. The existing gravel street has experienced maintenance issues due to erosion at the low point. The Public Works Department reports that multiple times every year City maintenance crews are commissioned to repair the gravel roadway due to erosion. The eroded gravel has been depositing to a nearby wet- land. As a part of the review of development to the east, the City has determined that the most efficient way to serve the area involves extension of sanitary sewer on Rolling Oaks. By serving Rolling Oaks, the City will be in better position to effi- ciently serve nearby development. A developer is now proceeding with a preliminary plat for the nearby developable area. The development is known as Trillium Cove and is before the City Council this evening. Considering the cost formula developed in 2014, it is advantageous to have a city project on Rolling Oaks coincide with the development project. The first step would be to update the feasibility report. The feasibility report update would provide updated project costs for further consideration by the City Council. Because a previous report has been prepared, little effort is needed to update the numbers. Staff would also review additional cost saving measure for the project. Conclusion The Feasibility Report will provide the details needed for the City to make deci- sions on how to proceed. ISSUES: The preparation of the Feasibility Report is only the first step in the public improve- ment project process. Following receipt of the Feasibility Report, the Council will direct City staff to abandon or proceed with the improvement project, depending upon whether the requirements for the Chapter 429 process are being met. If the Chapter 429 process is to proceed, the Council can then schedule a Public Hear- ing to consider resident feedback on the project. Following a Public Hearing, the Council will consider whether to move forward by authorizing the preparation of plans and specifications. Once completed, the City Council will be asked to ap- prove the plans and specifications, authorize advertisement for bids and then award the contract. The cost formula prepared in 2014 was considered creative as it leveraged fund- ing from other sources to assist in bringing assessments to a more manageable amount. Even with these other funding sources proposed, assessments were esti- mated to be $27,000 per developed lot. The low number of lots on Rolling Oaks are a factor in the assessment calculation. FINANCIAL IMPACT: The financial impact of this project will be further analyzed in the Feasibility Report including the preparation of preliminary assessment calculations. The CIP esti- mate for the project is $890,000. 3 ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve a resolution or- dering the preparation of a Feasibility Report for the Rolling Oaks Improvement Project. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ A RESOLUTION ORDERING THE PREPARATION OF A FEASIBILITY REPORT FOR THE ROLLING OAKS IMPROVEMENT PROJECT Motion By: Second By: WHEREAS, It is necessary to determine the feasibility of undertaking the construction of improvements to Rolling Oaks including the construction of storm sewer, sanitary sewer, watermain, aggregate base, concrete curb and gutter, bituminous surfacing, street lights, and appurtenant work; and WHEREAS, It is proposed to assess the benefited property for all or a portion of the cost of the improvements, pursuant to Minnesota Statutes, Chapter 429. 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. That the proposed improvements be referred to the City Engineer for study and that the City Engineer is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether the proposed improvements are necessary, cost-effective and feasible and as to whether they should best be made as proposed or in connection with other improvements, and the estimated costs for the improvements as recommended. Passed and adopted by the Prior Lake City Council this 22nd day of May, 2017 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager