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HomeMy WebLinkAbout5G Franklin Trail Reconstruction Set Assessment Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 17, 2018 AGENDA #: 5G PREPARED BY: NICK MONSERUD, ASSISTANT CITY 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 2018 FRANKLIN TRAIL RECONSTRUCTION IMPROVEMENT PROJECT (PROJECT # TRN18-000001) GOAL AREA AND OBJECTIVE: Transportation & Mobility 1. Maintain quality local street system based on a financially stable plan that meets Overall Condition targets. 2. Support complete street designs that ensure pedestrian mobility and multi- modal transportation options. DISCUSSION: Introduction This agenda item is necessary to set an assessment hearing and to establish the amount to be assessed for the 2018 Franklin Trail Road Reconstruction Project. History The City uses the Five Year Capital Improvement Program and its Pavement Management program to plan its infrastructure improvements and the financing for capital improvements. The 2018 Improvement Project proposes to reconstruct the street and upgrade utilities in two separate areas of the City. These areas include Woodside Road, Huron Street, Wildwood Circle, Santee Circle and Luther Road (Woodside/Huron): Franklin Trail from Summer to CSAH 44. At its May 8, 2017 meeting the City Council adopted Resolutions 17-063 and 17-064 authorizing staff to prepare a Feasibility Report for the Woodside/Huron Neighborhood Street Im- provement Project and Franklin Trail Improvement Project as outlined in the CIP. The M.S. Chapter 429 process applies to all projects that will be financed in whole or part through special assessments or bond proceeds. For bidding purposes the two 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 Franklin Trail area includes improvements to Brooksville Hills 3rd Addition, Brooksville Hills 5th Addition, Brooksville Hills 6th Addition, Brooksville Hills 7th Addition and CIC Nos. 1072 located in Section 1, Township 114, Range 22. Struc- tures in this area were built between 1978-1999 but most were generally built in the 1980’s and early 1990’s. The proposed improvements include street recon- struction, storm sewer, storm water quality, sanitary sewer, watermain, concrete curb and gutter, and appurtenant work. 2 On November 20, 2017, the City Council adopted Resolution 17-189 accepting the Feasibility Report and ordering the public hearing for the Franklin Trail Street Re- construction Project to be held on December 11, 2017. On December 11, 2017, the City Council held the Public Hearing and adopted Resolution 17-211 ordering the improvement project. On March 19, 2018 the City Council approved the project plans, specifications and authorized the advertisement for bids for the 2018 Reconstruction Improvement Projects. 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 April 4, 2018 and offered residents the opportunity to comment on the proposed plans. It should be noted that no residents from Franklin Trail attended this meet- ing. On April 16, 2018 the City Council accepted bids and awarded the City’s standard- ized construction contract for the 2018 Reconstruction Improvement Projects to Heselton Construction, LLC. 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 November 2, 2018. ISSUES: The Assessment Review Committee has reviewed and agrees with the assess- ment map, assessment rate, and method of assessment. The area method for the assessment is used due to the different property types and sizes within the project area. 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. The Assessment Review Workgroup recommends the area method of assessment due to the fact that the project area consists of park, single family res- idential, medium density residential and high density residential properties. The remaining amounts should be recovered through the general ad valorem property tax. The estimated assessment rate per the Feasibility Report is proposed at $25,626.00/acre. With the bids received, the estimated proposed assessment is $28,604.73/acre. During construction, additional savings results in a revised as- sessment amount of $27,042.66 per acre. 3 FINANCIAL IMPACT: The Franklin Trail Improvement Project is proposed to be financed by Special As- sessments, Tax Levy, Sewer Fund and Water 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: FRANKLIN TRAIL AREA IMPROVEMENT PROJECT - FUNDING Tax Levy $600,173 Assessment (40%) $378,273 Utility Fund - Sewer $437,073 Utility Fund - Water $265,803 Total $1,681,322 Total Assessed $378,273 Area to be Assessed 13.988 acres Area Assessment $27,042.66 per acre Area Assessment from Prelim Report $25,626.00 per acre ALTERNATIVES: 1. Approve as part of the consent agenda a resolution declaring the costs to be assessed, ordering the preparation of the proposed assessment rolls for the 2018 Franklin Trail Reconstruction Improvement Project (TRN18-000001), and establishing October 15, 2018 for the assessment hearing date. 2. Approve a motion 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 18-___ A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE 2018 FRANKLIN TRAIL ROAD IMPROVEMENT PROJECT #TRN18-000001 AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF Motion By: Second By: WHEREAS, Costs have been determined for the improvement of Franklin Trail, Project #TRN18- 000001, the City cost for the improvements are $1,681,322; 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 portion of the cost of such improvements to be paid by the City is hereby declared to be $1,303,049, and the portion of the cost to be assessed against benefited property owners is declared to be $378,273. 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 4.41% 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 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 par cel 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, 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 succeed ing year. 2 PASSED AND ADOPTED THIS 17th DAY OF SEPTEMBER 2018. VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager