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Home My WebLink About5N 2 Cates Area Assessment Report4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 18, 2017 AGENDA #: 5N (2) PREPARED BY: NICK MONSERUD, PROJECT ENGINEER PRESENTED BY: NICK MONSERUD AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE AS- SESSED AND ORDERING PREPARATION OF AN ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR THE CATES AREA ROAD RECONSTRUCTION IMPROVEMENT PROJECT (PRO- JECT #TRN17-000002) DISCUSSION: Introduction This agenda item is necessary to set an assessment hearing and to establish the amount to be assessed for the Cates Area Road Improvement Project. History Each year the City reconstructs street segments that are scheduled for reconstruc- tion as part of its Capital Improvement Program (CIP) and have exceeded their useful design life. The City uses the Capital Improvement Program and its Pave- ment Management Program to plan for infrastructure improvements and the fi- nancing for capital improvements. At its September 26, 2016 meeting the City Council adopted Resolutions 16-118, 16-119, 16-120 and 16-121 authorizing staff to prepare Feasibility Reports for the 2017 Improvement Projects 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. For bidding purposes the four project areas have been combined into one project. This was done to simplify the bidding process and to better coordinate construc- tion scheduling with one contractor. The Cates Street area includes improvements to RLS 161, Holly Court, Lakeside Park 1st Addition, CIC 1191 Park Avenue Condominium, Lakeside Estates, Lakeside Estates 1st Addition, Lakeside Estates 2nd Addition, Lakeside Estates 3rd Addition, Lakeside Estates 5th Addition, R & C 1st Addition, Condo 1016 Glenview Villa, CIC 1037 Cates Street located in Section 2, Township 114, Range 22. Structures in this area were built between 1946-1999 but most were generally built in the early 1980’s. The proposed improvements include street reconstruction or reclamation, storm sewer, storm water quality, sanitary sewer, watermain, con- crete curb and gutter, and appurtenant work. On November 28, 2016, the City Council accepted the Feasibility Report and scheduled the public hearing for January 9, 2017. The Council also directed staff on the following: 2 1.Remove the roadway east of Albany Avenue on Cates Street 2.Evaluate stormwater connections on Park Avenue 3.Evaluate the roadway section of Park Avenue 4.Remove the proposed hammerhead turn around on Five Hawks 5.Provide trail cost estimates from the St. Michael Parking Lot through this area to the north of Five Hawks school. An amendment to the feasibility report was made in order to evaluate Council di- rection. Ultimately it was decided to: 1.Remove the roadway east of Albany Avenue on Cates Street 2.Remove Park Avenue from the Cates Area reconstruction and incorporate it in the 2018 Reconstruction Project. 3.Keep the proposed hammerhead turn around on Five Hawks 4.Not include trail and sidewalk as part of this project. On January 9, 2017, the City Council held the Public Hearing and adopted Resolu- tion 17-004 ordering the improvement project. In addition to the Public Hearing, the City has held three informational meetings to discuss the project. The last informational meeting was an open house held on March 29, 2017 and offered residents the opportunity to comment on the proposed plans. City staff explained the proposed design and went over potential property impacts individually with residents. On April 10, 2017 the City Council approved the project plans and specifications and authorized the advertisement for bids for the 2017 Reconstruction Improve- ment Projects. On May 22, 2017 the City Council accepted bids and awarded the City’s standard- ized construction contract for the 2017 Reconstruction Improvement Projects to Geislinger and Sons, Inc. Current Circumstances The proposed improvements include street reconstruction, storm sewer, storm wa- ter quality, sanitary sewer, watermain, concrete curb and gutter, and appurtenant work. Construction of the project is currently ongoing with the anticipated substan- tial completion date of October 31, 2017. ISSUES: The Assessment Review Work Group has reviewed and agrees with the assess- ment map, assessment rate, and method of assessment. 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. As been in past practice in residential neighborhoods, the Assessment Review Workgroup recommends the unit method of assessment due to the fact that lots in the project area are of similar size. The remaining amounts should be recov- ered through the general ad valorem property tax. 3 FINANCIAL IMPACT: The estimated assessment rate per the Feasibility Report is proposed at $6,106.53/unit. A number of residents have shared their concerns that the as- sessment rate was high and they are hoping for lower assessments once the bids have been received. With the bids received, the estimated proposed assessment is $4,754/unit. The Cates Area Road Improvement Project is proposed to be financed by Special Assessments, tax levy, Sewer Fund, Water Fund, and Water Quality Fund. The amount shown in the table below is an estimate based on the bid prices received. Funding sources and amounts are as shown below: Estimated Project Costs and Financing (Reconstruction) ITEM ESTIMATED PRO- JECT COSTS ASSESSMENTS CITY SHARE Streets $732,479 $292,992 $439,487 Sanitary Sewer $186,132 $186,132 Watermain $394,165 $394,165 Storm Sewer1 $103,066 $30,305 $72,761 Total $1,415,842 $323,297 $1,092,546 1 Includes $27,303 in Water Quality Improvements that are not assessable Total Assessed $323,297 Number of Units 68 Unit Assessment $4,754.36 Unit Assessment from Prelim Report $6,106.53 ALTERNATIVES: 1. Approve a resolution as part of the consent agenda declaring the costs to be assessed, ordering the preparation of the proposed assessment rolls for the Cates Area Road Improvement Project #TRN17-000002, and establishing Oc- tober 16, 2017 for the assessment hearing date. 2.Motion and second to remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Motion and second for approval of alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE CATES AREA ROAD IMPROVEMENT PROJECT #TRN17- 000002 AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF Motion By: Second By: WHEREAS, WHEREAS, Costs have been determined for the improvement of the Cates Area, Project #TRN17-000002, the total cost for the improvements are $1,415,842; and 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 portion of the cost of such improvements to be paid by the City is hereby declared to be $1,092,546, and the portion of the cost to be assessed against benefited property owners is declared to be $323,297. 3.Assessments shall be payable on an equal principal installment method extending over a period of 10 years for street improvements. The first installment shall be the annual principal plus interest calculated 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 City Manager, with the assistance of the City Engineer shall forthwith calculate the proper amount to be specially assessed for such improvements 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 16th day of October, 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 des cribed in the assessment roll not 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 intere st accrued to the date of 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 may, 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 must be made before November 11 or interest will be charged through December 31 of the succeeding yea r. 2 PASSED AND ADOPTED THIS18th DAY OF SEPTEMBER 2017. VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager