Loading...
HomeMy WebLinkAbout5F 2018 Overlay 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: SEPTEMBER 17, 2018 AGENDA #: 5F PREPARED BY: JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER PRESENTED BY: JASON WEDEL AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE ASSESSED, ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF FOR THE 2018 MILL AND OVERLAY IMPROVEMENT PROJECT #STR18- 000001 GOAL AREA AND OBJECTIVE: DISCUSSION: Transportation & Mobility 1. Maintain quality local street system based on a financially stable plan that meets Overall Condition targets. Introduction This agenda item is necessary to set the assessment hearing and to order the assessment roll for the 2018 Mill and Overlay Improvement Project. History At the June 4, 2018 Council Meeting, the Council awarded the bid for the 2018 Mill and Overlay Project. Project STR18-000001 includes the mill and overlay in various locations throughout the City. The City executed a contract with GMH Asphalt for this project. The project has since been completed. The City’s 2018 Fee Schedule includes the $1200 assessment for mill and 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 that hearing it will then be provided to Scott County for inclusion into the property tax roll for 2019. 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 interest costs over the five-year assessment period. 2 Conclusion The Assessment Hearing is proposed for October 15, 2018 for the 2018 Mill and Overlay Improvement and individual property owners will be notified by October 1st, with the amount to be assessed included in the mailed notice. It is necessary to complete the assessment hearing in October to provide property owners with 30 days’ time to prepay their assessments prior to the City certifying them with the County in November. ISSUES: The City has received information from the residents that live within the Wild Oaks Terrace portion of this project. They have concerns with the proposed assessments. The City has replied that the appropriate time for discussing their concerns would be at the assessment hearing in October. The information that was submitted will be presented at the assessment hearing and each property owner wishing to speak will have an opportunity to address the City Council at the assessment hearing as well. FINANCIAL IMPACT: The Assessment Policy states that the interest rate charged should be 2% over the bonding rate. The current rate is 2.41%, which would put the interest rate charged for the project at 4.41%. The resulting total interest over five years will be $170.08 bringing the total assessment cost to $1,370.08. 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 2018 Mill and Overlay Improvement Project STR18-000001. 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 18-___ A RESOLUTION DECLARING FEES TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE 2018 MILL AND OVERLAY IMPROVEMENT PROJECT #STR18-000001 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 2018 Mill and Overlay Improvement Project (STR18-000001); and WHEREAS, City Council has approved the 2018 Fee Schedule which included the Mill and Overlay fee amounts of $1200 for single family and $960 for multifamily (0.8 x $1200). 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 $1,200. 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 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 4.41% per annum from the date of the adoption of the assessment resolution. 4. The amount to be assessed is based on the City’s 2018 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 15th day of October 2018, 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 2 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, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 14 or interest will be charged through December 31 of the succeeding year. Passed and adopted by the Prior Lake City Council this 17th day of September 2018 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager