The URL can be used to link to this page

Home My WebLink About5Q Woodside-Huron Area Reconstruction Set Assessment Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: SEPTEMBER 17, 2018 AGENDA #: 5Q 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 WOODSIDE/HURON AREA ROAD RECONSTRUCTION IMPROVEMENT PRO- JECT (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 Woodside/Huron Area Road Improvement 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 Woodside/Huron area includes improvements to RLS 072, Oakwood Hills, and North Prior subdivisions located in Section 36, Township 115, Range 22. Structures in this area were built in the late 1960s and 1970s. The proposed im- provements include street reconstruction, storm sewer, storm water quality, sani- tary sewer, watermain, concrete curb and gutter, and appurtenant work. On November 20, 2017, the City Council adopted Resolution 17-190 accepting the 2 Feasibility Report and ordering the public hearing for the Woodside/Huron Neigh- borhood Street Improvement Project to be held on December 11, 2017. On December 11, 2017, the City Council held the Public Hearing and adopted Resolution 17-208 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. City staff explained the proposed design and went over potential property impacts individually with residents. Approximately ten residents attended the open house. 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 unit method for the assessment is used due to the uniformity of benefit received by the benefited par- cels and the relative consistency in parcel size. 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 has been the past practice in residential neighborhoods, the As- sessment 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 will be recovered through the general ad valorem property tax. The estimated assessment rate per the Feasibility Report was proposed at $8,280/unit. Based on the low bid received, the estimated proposed assessment was $9,628/unit. However, during construction additional savings were realized that resulted in a revised assessment amount of $8,725.63 per unit. 3 FINANCIAL IMPACT: The Woodside/Huron 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 pric- es received. Funding sources and amounts are as shown below: WOODSIDE/HURON NEIGHBORHOOD STREET IMPROVEMENT PROJECT - FUNDING Tax Levy $837,390 Assessment (40%) $530,518 Utility Fund - Sewer $467,176 Utility Fund - Water $556,461 Water Quality Fund $347,831 Total $2,739,376 Total Assessed $530,518 Number of Units 60.8 Unit Assessment $8,725.63 Unit Assessment from Prelim Report $8,280.00 ALTERNATIVES: 1. As part of the consent agenda, approve a resolution declaring the costs to be assessed, ordering the preparation of the proposed assessment rolls for the Woodside/Huron Area Road Improvement Project #TRN18-000001, and estab- lishing October 15, 2018 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 18-___ A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE WOODSIDE/HURON AREA 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 the Woodside/Huron Area, Project #TRN18-000001, the City cost for the improvements are $2,739,376; 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 $2,208,858, and the portion of the cost to be assessed against benefited property owne rs is declared to be $530,518. 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 2017. VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager