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HomeMy WebLinkAbout5J 2019 Overlay Call for Hearing 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: AUGUST 19, 2019 AGENDA #: 5J PREPARED BY: NICK MONSERUD, ASSISTANT CITY ENGINEER PRESENTED BY: NICK MONSERUD 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 2019 MILL AND OVERLAY PROJECT #STR19-000001 GOAL AREA AND OBJECTIVE: Transportation & Mobility 1. Maintain quality local street system based on a financially stable plan that meets Overall Condition targets. DISCUSSION: Introduction This agenda item is necessary to set the assessment hearing and to order the preparation of the assessment roll for the 2019 Mill and Overlay Improvement Project. History At the March 18, 2019 Council Meeting, the Council awarded the bid for the 2019 Mill and Overlay Project. Project STR19-000001 includes the mill and overlay in various locations throughout the City. The City executed a contract with McNamara Contracting for this project. The project has since been completed. The City’s 2019 Fee Schedule includes a special assessment rate of $1266/unit 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. Conclusion The Assessment Hearing is proposed for October 7, 2019 for the 2019 Mill and Overlay Improvement project and individual property owners will be notified of the amount to be assessed included in their mailed notice. FINANCIAL IMPACT: The Assessment Policy states that the interest rate charged should be 2% over the bonding rate. The current rate is 2.04% which would put the interest rate charged for the project at 4.04%. ALTERNATIVES: 1. Motion and second as part of the consent agenda to adopt a resolution declaring the project costs to be assessed, ordering the preparation of the proposed assessment roll and establish the assessment hearing date for the 2019 Mill and Overlay Improvement Project STR19-000001. 2. Motion and second to remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19-___ A RESOLUTION DECLARING FEES TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE 2019 MILL AND OVERLAY IMPROVEMENT PROJECT #STR19-000001 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 2019 Mill and Overlay Improvement Project (STR19-000001); and WHEREAS, City Council has approved the 2019 Fee Schedule which included the Mill and Overlay fee amount of $1266 for single family. 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 filled 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 benefitted property owners is declared to be $1,266. 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 12 months of the next year and shall bear interest at the rate of 4.04% per annum from the date of adoption of the assessment resolution. 4. The amount assessed is based on the City’s 2019 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 City Council thereof. 6. A public hearing shall be held on the 7th day of October 2019, in City Council Chambers at 7:00 P.M. to pass upon such proposed assessment and at such a 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 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 interest accurued to the date of payment, to the City Finance Director, except that no interest will be charged if the entire assessment is paid with 30 days from the adoption of http://splash/teams/am/October 4 2010/08 19 2019/5J 2019 Overlay Call for Hearing RES.docx 2 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 19th day of August 2019. VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Michael Plante, City Manager