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Home My WebLink About5I Declaring Fees to be Assessed and Establish Assessment 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: AUGUST 21,2017 AGENDA #: 5I PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DECLARING FEES TO BE ASSESSED, ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF FOR THE 2017 MILL AND OVERLAY IMPROVEMENT PROJECT #STR17-000001 AND DISCUSSION: Introduction This agenda item is necessary to set the assessment hearing and to order the assessment roll for the 2017 Mill and Overlay Improvement Project. History At the May 22, 2017 Council Meeting, the Council awarded the bid for the 2017 Mill and Overlay Project. Project STR17-000001 includes the mill and overlay of both the Five Hawks neighborhood and the Cardinal Ridge neighborhood. The City executed a contract with Northwest Asphalt for this project. The project has since been completed and is within the anticipated quantities. In 2016, the City Council passed the Fee Schedule for 2017 which included the $1200 fee for mill & overlay projects. Current Circumstances This project is utilizing assessments to fund a portion of the construction costs following the State Statute 429 process. As part of that process it is necessary to hold an assessment hearing to provide property owners an opportunity to publicly discuss the proposed assessments. If the City Council adopts the assessment roll at this hearing it will then be provided to Scott County for inclusion into the property tax rolls for 2018. The proposed $1,200 will be spread over a 5-year period. Property owners also have the option of prepaying their assessments this fall to avoid having them included on their taxes and paying interests costs over the five-year assessment period. Conclusion The Assessment Hearing is proposed for September 18, for the 2017 Mill and Overlay Improvement and individual property owners must be notified 2 by September 1st with the amount to be assessed included in the mailed notice. The Assessment Policy states that interest rates charged should be 2% over the bonding rate. The current bonding rate is at 1.8% which would put the interest rates change for the project at 3.8%. 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. FINANCIAL IMPACT: Funds for this project will be drawn from the amended Street Department portion of the general fund budget of which $517,546 is identified for the City’s street maintenance programs. We utilized $67,000 for the JPA and have identified $450,546 for the Overlay. The remaining funds from the balance will be used for other pavement maintenance throughout the City. The approved bid was for $442,050.60. The anticipated assessments outlined in the feasibility study that will be collected as part of this project are $350,357. The contract has not been finalized yet, but it appears that we will come in approximately $40,000 under budget. ALTERNATIVES: The alternatives are as follows: 1. Approve as part of the consent agenda, a resolution declaring the fees to be assessed, ordering the preparation of the proposed assessment rolls and establish the assessment hearing date for the 2017 Mill and Overlay Improvement Project STR17-00001. 2. Motion and second to remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Staff recommends the alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ A RESOLUTION DECLARING FEES TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE 2017 MILL AND OVERLAY IMPROVEMENT PROJECT #STR17-000001 AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF Motion By: Second By: WHEREAS, A contract has been let and the improvements have been completed for the 2017 Mill and Overlay Improvement Project (STR17-000001); and WHEREAS, City Council has approved the 2017 Fee schedule which included Mill and Overlay fee amounts of $1200 for single family and $960 for multifamily (0.8 x $1,200). Commercial and industrial parcels are assessed based on the Residential Equivalent Density (RED); 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 fees to be assessed against benefited property owners is declared to be $350,357. 3.Assessments shall be payable on an equal principal installment method extending over a period of 5 years. The first installment shall be the annual principal plus interest calcu lated 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 3.80% per annum from the date of the adoption of the assessment resolution. 4.The amount to be assessed is based on the City’s 2017 Fee Schedule and will be specially assessed 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 18th day of September 2017, 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 no 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 2 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 my, at any time thereafter, pay to the City Finance Director 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 much be made before November 11 or interest will be charged through December 31 or the succeeding year. Passed and adopted by the Prior Lake City Council this 21st day of AUGUST, 2017. VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐☐ ☐ ☐ ☐ Absent ☐☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager