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HomeMy WebLinkAbout5J 2019 Mill and Overlay Adopt Assessments 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: OCTOBER 21, 2019 AGENDA #: 5J PREPARED BY: NICK MONSERUD, ASSISTANT CITY ENGINEER PRESENTED BY: NICK MONSERUD AGENDA ITEM: ADOPT RESOLUTION NO. 19-120 ADOPTING THE REVISED ASSESSMENT ROLL FOR PARCEL PID253900010 RELATED TO THE 2019 MILL AND OVERLAY IMPROVEMENT PROJECT (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 adopt the revised assessment roll for PID 253900010 owned by OP3 Fountain Hills LLC for the 2019 Mill and Overlay Improvement Project. An error was made in calculating this properties assessment. Wetlands were counted as part of their Residential Equivalent Density. The wetlands area should not have been included in this calculation. History Each year the City mills and overlays segments of streets that have aged to the point of needing a new surface but do not yet need a complete reconstruction. This is done as part of the City’s pavement management program to provide timely improvements and extend the life of these streets for as long as possible. On January 22, 2019, the City Council held a public hearing and ordered the 2019 Mill and Overlay Project. 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 of streets in various locations throughout the City. The City executed a contract with McNamara Contracting for this project. The project has since been substantially completed. The City’s Fee Schedule includes the $1266 assessment fee per Residential Equivalent Density for mill and overlay projects. Current Circumstances Construction of the project is substantially complete. All the curb replacement and street paving is done. A public hearing was conducted on October 7, 2019 and the assessment roll was adopted by the City Council. Per an objection received from Ben Schmidt on October 7, 2019 regarding counting the wetland area in two parcels that are owned by OP3 Fountain Hills LLC. The parcels in question are PID 253900020 and PID 259300010. City staff has reviewed the parcels in question and found that parcel PID 253900010 did have wetlands included in the assessment calculation. This parcels assessment has been revised from $19,524.25 to $15,235.04. Staff reviewed the National Wetland Inventory maps and the Fountain Hills 2nd Addition Plat and found that Parcel PID 253900020 does not have any wetlands. The assessment will remain the same as adopted on October 7, 2019 in the amount of $12,895.48. Conclusion State Statute requires that special assessments be certified to the County by November 30th of each year. Since property owners must be allowed 30 days to pay off their assessments interest free, the revised assessment for PID 253900010 will have until November 21st to pay their assessment without interest. FINANCIAL IMPACT: The project is proposed to be financed by Special Assessments and a transfer from the General Fund to the Permanent Improvement Revolving (PIR) Fund as shown in the table below. Based upon the low bid of $716,880.80 and proposed special assessments of $435,384.79 the remaining balance of $281,496.01 will come from the General Fund transfer. Tax Levy PIR Fund $99,289.21 $182,206.80 Special Assessments $435,384.79 Total $716,880.80 ALTERNATIVES: 1. Approve a resolution as part of the consent agenda adopting the revised assessment roll for PID 259300010 for the 2019 Mill and Overlay Improvement Project PIR19-000001. 2. 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 19-120 A RESOLUTION ADOPTING THE REVISED ASSESSMENT ROLL FOR PARCEL PID253900010 FOR THE 2019 MILL AND OVERLAY IMPROVEMENT PROJECT (CITY PROJECT #PIR19-000001) Motion By: Second By: WHEREAS, Pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessments for the 2019 Mill and Overlay Improvement Project, City Project #PIR19-000001, and WHEREAS, The City Council received an objection to the assessment for Parcel PID 253900010, and. WHEREAS, The assessment for Parcel PID 253900010 was reviewed and a calculation error was discovered. WHEREAS, The assessment roll has been revised for Parcel PID 253900010 from $19,524.25 to $15,235.04. 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 proposed revised assessment for Parcel PID 253900010 for the 2019 Mill and Overlay Improvement Project, City Project #PIR19-000001 in the amount of $15,235.04, is hereby accepted and shall constitute the special assessment against the lands named herein, and each tract of land herein included is hereby found to be benefitted by the proposed improvement in the amount of the assessment levied against it. 3. The assessment in the total amount of $15,235.04 shall be payable on an equal principal method extending over a period of five (5) years, the first of the installments to be payable on or before the first Monday in January 2020, and shall bear interest at the rate of four and four hundredths (4.04) percent per annum from the date of adoption of the assessment resolution. To the first installment of each assessment shall be added interest on the entire assessment from October 21 until December 31 of the year in which the first installment is payable, and to each subsequent installment shall be added interest for one year on all unpaid installments, each subsequent installment shall be added interest for one year on all unpaid installments. 4. The portion of the cost of such improvements to be paid by the City is hereby declared to be $281,496.01 and the portion of the cost to be assessed against benefited property owners is declared to be $435,384.79. 5. 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 a property, with interest accrued to the date of the payment, except that no interest will be charged if the entire assessment is paid within thirty (30) days, and he/she may, at any time thereafter, pay to the city treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such a payment is made. Such payments http://splash/teams/am/October 4 2010/10 21 2019/5J 2019 Mill and Overlay Adopt Assessment RES.docx 2 must be made before November 21 or interest will be charged through December 31 of the next succeeding year. 6. The Finance Director shall forthwith transit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of Scott County. Such assessments shall be collected and paid to the City in the same manner as other municipal taxes. Passed and adopted by the Prior Lake City Council this 21st day of October 2019. VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager