HomeMy WebLinkAbout9C - 2005 Imp. Proj 05-01&05-11
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
DATE:
AGENDA #:
PREPARED BY:
REVIEWED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
SEPTEMBER 19, 2005
9C
LARRY POPPLER, ASSISTANT CITY ENGINEER
STEVE ALBRECHT, CITY ENGINEER
CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO
BE ASSESSED AND ORDERING PREPARATION OF AN
ASSESSMENT ROLL FOR THE 2005 IMPROVEMENT PROJECT, AND
ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR
THE 2005 IMPROVEMENT PROJECT (PROJECT 05-01 & 05-11).
INTRODUCTION
This agenda item is necessary to set an assessment hearing and the
amount to be assessed for the 2005 Improvement Project.
H/STORY
The 2005 Street Reconstruction Improvement Project (Project #05-01
and #05-11) is included in the 2005 Capital Improvement Program and
has received numerous City Council approvals to date.
At the May 16, 2005 Council Meeting, the Council awarded bids for the
improvement projects. Projects 05-01 and 05-11 include sanitary sewer,
water main, storm sewer and street reconstruction. The City has
executed a contract with Northwest Asphalt, Inc. to construct the project.
The project is planned to be substantially complete by October 315 2005.
The Special Assessment Committee met on September 7, 2005 to review
the project and the proposed assessments.
CURRENT CIRCUMSTANCES
The Special Assessment Committee recommends the unit method of
assessment due to the uniformity of benefit received by the benefited
parcels and the relative consistency in parcel size. The City Council
should confirm which assessment method should be applied. Since the
special assessment hearing date is proposed for October 17th, individual
property owner notices must be sent to the property owners by October
2, 2005. The amount to be assessed must be included in the mailed
notice.
Based on a written request from one of the property owners, the Special
Assessment Committee reviewed the following items:
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1) Frost Point Quantitv Imoacts
Three construction items were bid as a lump sum. These bid items were
Mobilization, Traffic Control, and Temporary Mailboxes and included
Frost Point in the price, even though Frost Point was eventually
eliminated from the project. The Special Assessment Committee
recommended that the assessable lump sum cost for temporary
mailboxes be reduced by the percentage of mailboxes on Frost Point
Circle. The Special Assessment Committee concluded that mobilization
and traffic control necessary for Frost Point did not impact the overall
lump sum price given by the Contractor and therefore the assessment
should not be reduced for these items.
2) Restoration and Proiect Costs Related to Utilitv Construction
The Special Assessment Committee also concluded that the standard
practice of including driveways and yards impacted by utility installation
be included as part of the assessment.
The Special Assessment Committee came to this conclusion for three
reasons:
The calculation of the utility impacts to restoration is very difficult. Each
home has their utility services in a different location. In some cases the
utility service construction does not require additional restoration. In
other cases utility service construction requires additional sodding or
driveway restoration.
The general taxpayers are picking up the majority of the project costs.
The ad valorem part of the project includes all utility construction as well
as 60% of the street and storm sewer improvements.
The inclusion of restoration due to utility construction has consistently
been part of the assessable portion of the project. Part of the message
given by residents at the Public Hearing was that they wanted the City to
be consistent with the methods and practices from projects completed in
previous years.
3) Administration. Financina and Enaineerina Costs
A portion of the administration, financing, and engineering costs for the
entire project are included in the assessment. This includes costs
associated with utility design, utility inspection, and utility staking. Twenty
Five percent of the project costs are attributed to administration, financing
and engineering (indirect costs). Forty percent of these indirect costs are
assessed. The SpeCial Assessment Committee recommends that the
calculation of indirect costs continue as has been done in the past. The
Special Assessment Committee agreed that the majority of the project is
being funded by the general taxpayers and it has been a consistent
practice to assess project properties in this manner.
4) Street Width on CandY Cove
Candy Cove Trail was originally constructed to a 36 foot width. A portion
of Candy Cove Trail was designed and constructed to a width of 32 feet.
The southern 750 feet of Candy Cove Trail was designed and
constructed to a width of 38 feet. The reason for the wider width was to
accommodate vehicle parking on Candy Cove Trail for residential use of
G:\PROJECTS\2005\II]ishPoinCFairlawn\CC Agenda & Resol\CCASSESSAGENDA05-II.DOC
FINANCIAL
IMPACT:
ALTERNATIVES:
the athletic fields in this area. The City requires developers to build
residential streets up to a width of 36 feet. Developers building streets
over 36 feet in width are compensated by the City for oversizing the
street. Many streets that are oversized are part of the City's State Aid
system and thus funding for the extra design width can be achieved
through the State Aid program. While Candy Cove Trail is not a State
Aid Street, it is recommended that the extra two feet in width, width over
36 feet, for the southern 750 feet not be assessed. The assessment
calculation has been adjusted in this manner.
The total project cost for Project 05-01 and 05-11 is $3,513,985.16. This
cost is proposed to be funded through tax levy, enterprise fund, water
quality fund, capital parks fund, streets operating budget, and special
assessments.
Of the total project costs, $2,462,425.16 or 70% will be paid through
sources other than special assessment. The proposed amount to be
assessed against the benefiting properties is $1,051,560.00. The
amount assessed is broken down into two separate assessments. The
Centennial Street assessment is a first time or 100% assessment. The
amount assessed to the Centennial Street residents is $162,839.50.
There are 10 benefiting units on Centennial Street that are being
assessed. Based on the foregoing the proposed assessment rate i$
$16,284.00. This compares to the original assessment estimate of
$16,660.00 per unit.
The remaining area includes Fish Point Road, Fairlawn Shores Trail,
150th Street, Bluedorn Circle and Candy Cove Trail. The amount of the
assessment for this area is $888,720.00. There are 115 benefiting units
in the project area that are being assessed at a 40% rate. Based on the
foregoing, the proposed assessment is $7,728.00 per unit. This
compares with the original assessment estimate of $8,094 per unit.
Staff recommends that the City Council declare the costs to be assessed,
order preparation of the assessment roll, and establish the Assessment
Hearing date as October 17, 2005 for the Fish Point Road, Fairlawn
Shores Trail, Sluedorn Circle, 150th Street, Candy Cove Trail, and
Centennial Street Improvement project and authorize the required notice
of public hearing to be published as per the attached resolutions.
These improvements will be financed through the issuance of
$2,391,101.15 of general obligation bonds plus approximately
$1,122,884.01 that will be contributed from other funds (Le., Enterprise
Fund, including the SewerlWater and Water Quality Funds and Capital
Park Fund).
The alternatives are as follows:
1. Approve a Resolution declaring the costs to be assessed, ordering
the preparation of the proposed assessment rolls for the 2005
Improvement Project 05-01 and 05-11, and establishing October 17,
2005 for the assessment hearing date.
G:\PROJECTS\2005\111ishPoint1airlawn\CC Agenda & Resol\CCASSESSAGENDA05-11.DOC
RECOMMENDED
MOTION:
REVIEWED BY:
REVIEWED BY:
2. Deny the Resolutions for a specific reason and provide staff with
direction.
3. Table this item for a specific reason.
A motion and second to approve Resolution OS-XX declaring the costs to
be assessed and ordering the preparation of the proposed assessment
rolls for 2005 Improvement Project 05-01 and 05-11, and establishing
October 17, 2005 for the assessment hearing.
G:\PROJECTS\2005\II_FishPoint_Fairlawn\CC Agenda & Resol\CCASSESSAGENDA05-II.DOC
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 05-XX
RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION
OF PROPOSED ASSESSMENT ROLL FOR THE 2005 IMPROVEMENT PROJECT CITY
PROJECT 05-01 & 05-11 AND ESTABLISHING THE DATE OF THE ASSESSMENT
HEARING
MOTION BY:
SECOND BY:
WHEREAS, a Contract has been let and costs have been determined for the improvement of
Fish Point Road, Fairlawn Shores Trail, 150th Street, Bluedorn Circle, Candy
Cove Trail and Centennial Street, Project 05-01 and 05-11, the contract price for
such improvements is $3,513,985.16 and the expenses incurred or to be
incurred in the making of such improvements amount to $476,907, so that the
total cost of the improvements will be $3,990,892.16 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 RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA, THAT:
1. The recitals set forth above are incorporated herein.
2. The portion of the cost of such improvements is to be paid by the City is hereby
declared to be $2,939,332.16, and the portion of the cost to be assessed against
benefited property owners is declared to be $1,051,560.00.
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 a minimum of 6%
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 he 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 17th day of October, 2005, in City Council
Chambers at 7:00 P.M. to pass upon such proposed assessment and at such time and
G:\PROJECTS\2005\11]ishPoint]airlawn\CC Agenda & ResoI\CCASSESSAGENDA05-11.DOC
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Phone 952.447.4230 / Fax 952.447.4245
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 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 interest 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, excepting the
installment portion appearing upon the current year's property tax statement.
PASSED AND ADOPTED THIS 19TH DAY OF SEPTEMBER, 2005.
Haul!en HaU2en
F1emin2 Fleminp
LeMair LeMair
Petersen Petersen
Zieska Zieska
YES
NO
{ Seal }
Frank Boyles, City Manager
G:\PROJECTS\200S\11]ishPoint]airlawn\CC Agenda & Resol\CCASSESSAGENDAOS-ll.DOC
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
September 20, 2005
RE: PUBLIC HEARING NOTICE ON ASSESSMENTS FOR STREET
IMPROVEMENTS FOR 2005 IMPROVEMENT PROJECTS #05-01 & 05-11
Dear Property Owner:
This letter is to notify you that your property is proposed to be assessed for street improvements.
Please find enclosed an Assessment Hearing Notice and Statement of Special Assessments for
Public Improvement Projects #05-01 & #05-11. This notice will be published in the September
24 and October 1, 2005 Prior Lake American and describes the improvements and the areas to be
assessed.
The proposed assessment rates and terms of payment as well as the total proposed assessment are
included on the enclosed assessment notice. Upon adoption of the assessment roll bv the City
Council on October 17, 2005, you may wish to prepay your assessment in fulL If you take no
action, the assessment will be spread for the period of years shown on the attached document
to be paid bv you with your annual property taxes.
If you choose to pay your assessment with your annual property taxes, the first property tax
installment will be in May of 2005 . We anticipate the first lift of bituminous pavement in the
Fish Point Road area to be installed by October 17, 2005. A final assessment bill will be sent to
your house upon adoption of the assessment roll by the City Council.
If you have any questions regarding the assessment deferral or payment process, please call
Ralph Teschner, the City's Finance Director at (952) 447-9841. If you have questions regarding
other aspects of the assessments or project, call me at (952) 447-9832.
Sincerely,
Larry Poppler, P .E.
Assistant City Engineer
CITY OF PRIOR LAKE
Enclosures
G:\PROJECTS\2005\11 ]ishPoint_Fairlawn\Assessment\ASSMTletter.DOC
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
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