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Home My WebLink About06(D) - Resolution Declaring Costs and Establish Date of Assessment Hearing - Fish Point Phase 2 Improvement Project (CP 2023-02) ReportCITY COUNCIL AGENDA REPORT MEETING DATE: PREPARED BY: PRESENTED BY: ITEM: 6D AGENDA ITEM: STRATEGIC PRIORITY: February 27, 2023 Nick Monserud, Assistant City Engineer Nick Monserud Andy Brotzler, Public Works Directory/City Engineer Resolution Declaring Costs and Establish Date of Assessment Hearing - Fish Point Phase 2 Improvement Project (CP 2023-02) STABLE & SUSTAINABLE INFRASTRUCTURE 3. Adequate funding to meet Overall Condition Index (OCI) target. RECOMMENDED ACTION: Adopt a resolution declaring project costs to be assessed, ordering the preparation of the proposed assessment roll, and establishing the assessment hearing date for the Fish Point phase 2 Improvement Project. BACKGROUND: The Fish Point Phase 2 Improvement Project, planned for construction in 2023, includes the full reconstruction of Fish Point Road from CSAH 44 to TH 13. The City received a total of thirteen (13) bids on February 2, 2023. Park Construction Company of Minneapolis, Minnesota submitted the low base bid in the amount of $4,184,739.45. The low base bid was 5.6% higher than the updated engineers estimate of $3,963,167.50. The project includes 20 single-family residential properties, 2 school properties, and 1 city parcel. The proposed assessment rates for the project are as follows: Single-family residential ($9,548.10 x 20 units) $190,962 Twin Oaks $106,090 Hidden Oaks $122,535 City of Prior Lake parcel $21,005 Total Assessment $440,592 In August 2020, the city's Assessment Review Work Group reviewed the proposed assessment rate and methodology for both the Fish Point Phase 1 (completed in 2021) and Phase 2 projects. The initial proposed assessments were calculated in accordance with the city's assessment policy whereby 40% of the street and storm sewer cost is assessed to benefiting properties within the project area. A special benefit consultation was commissioned and prepared by Patchin Messner Valuation Counselors to review the proposed assessment rates based on the city's assessment policy. Based on this study, it was determined that the city's assessment policy produced an assessment rate greater than the project benefitted. Therefore, the assessment rate for the Phase 1 project was set at $9,000/unit for single-family residential properties which was subsequently adopted by Council in March 2021. City of Prior Lake I 4646 Dakota Street SE I Prior Lake MN 55372 Item 6D Page 12 For the Phase 2 project it is recommended that the rate be increased 3% per year for a proposed single-family residential rate of $9,548.10/unit. Also, the ISO 719 properties were discussed, and it was determined to utilize the recommendations of the special benefit consultation. The proposed assessment rate for ISO 719 properties is also increased 3% per year. With the assessment hearing proposed to be conducted on March 20, 2023, an extended assessment prepay period without interest will be provided to property owners with a deadline for prepayment of October 27, 2023. FINANCIAL IMPACT: The Fish Point Phase 2 Improvement Project is proposed to be financed by special assessments, State Aid, the sewer utility fund, and the water utility fund. The funding breakdown and the corresponding estimated amounts are shown below: Legal, Project Construction Engineering, Lighting Cost Estimate Contingency Subtotal Admin., Improvements Total Cost Finance (28%) Feasibility $4,218,750 $421,875 $4,640,625 $1,299,375 $58,000 $5,998,000 As-Bid $4,184,739 $209,237 $4,393,976 $1,230,313 $58,000 $5,682,290 PROPOSED FUNDING Funding Source Feasibility As-Bid Tax Levy $183,000 $0 Assessment $440,500 $440,592 State Aid Construction Account $4,463,000 $4,106,993 and Bonds or Advance Utility Fund -Sewer $330,000 $414,078 Utility Fund -Water $581,500 $720,627 Total $5,998,000 $5,682,290 ALTERNATIVES: 1.Motion and second to approve a resolution declaring costs to be assessed, ordering the preparation of proposed assessment roll, and establishing March 20, 2023, for the assessment hearing and publication thereof for the Fish Point Phase 2 Improvement Project. ATTACHMENTS: 1.Resolution -Declare Costs and Establish Date of Assessment Hearing -Fish Point Phase 2 Improvement Project (CP 2023-02) 2.ASSESSMENT MAP 3.ASSESSMENT ROLL 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 by October 27, 2023. 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 27th day of February 2023. VOTE Briggs Braid Burkart Churchill Lake Aye □ □ □ □ □ Nay □ □ □ □ □ Abstain □□ □ □ □ Absent □ □ □ □ □ Jason Wedel, City Manager C:\Userslhsimon\AppData\Local\Temp\Resolution -Declare Costs and Establish Date of Assessment Hearing -Fish_656810\Resolution -Declare Costs and Establish Date of Assessment Hearing.docx 2 A@ G³WX 47 70 64 67 68 69 63 53 54 52 27 26 3 20 65 66 71 727374757677787980 58 59 61 60 62 48 49 50 51 555657 37 38 39 40 41 42 43 44 45 24232221 36 3534 33 32 31 30 29 28 8182 83 16 15 14 13 1211109 7 6 5 4 17 1819 8 1 2 25 Project Location Construction Phase Year Phase 1 (2021) Assessed Parcels Phase 2 (2023) Assessed Parcels 0 475Feet¯ Fish Point Road (CSAH 44 to TH 13) ReconstructionProjectFigure5 - AssessmentMapPriorLake, MN Document Path: K:\013977- CITY OF PRIOR LAKE PHASE 2 (2023) FISH POINT ROAD (CSAH 44 TO TH 13) RECONSTRUCTION PROJECT FINAL ASSESSMENT ROLL Date: 02/22/2023 Rate WSB Project No.: 013977-000 Residential Single-Family Per Unit Assessment As Determined By Special Benefit Consultation, Patchin Messner Valuation Counselors, Dated July 31, 2020: $9,000.00 Assessment Rate Determined by Special Benefit Consultation, Patchin Messner Valuation Counselors, Dated July 31, 2020:* Assessment Rates have been adjusted for inflation by 3% per year as directed by the Assessment Review Workgroup. MAP ID PID FEE OWNER FEE OWNER ADDRESS CITY/STATE/ZIP PROPERTY ADDRESS USE DESCRIPTION UNITS UNIT ASSESSMENT RATE** PROPOSED ASSESSMENT 1 259360010 ISD 719 4540 TOWER ST SE PRIOR LAKE, MN 55372 5304 WESTWOOD DR SE SCHOOLS **$106,090.00 2 259360740 ISD 719 4540 TOWER ST SE PRIOR LAKE, MN 55372 15855 FISH POINT RD SE SCHOOLS **$122,533.95 8 259360600 BRENNAN JOSEPH M 15680 FISH POINT RD SE PRIOR LAKE, MN 55372 15680 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 9 252670080 BRONSON GREGORY JOHN & BRONSON HANNA SOBHA 15676 FISH POINT RD SE PRIOR LAKE, MN 55372 15676 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 10 252670070 WASHINGTON JOE W III 15650 FISH POINT RD SE PRIOR LAKE, MN 55372 15650 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 11 252670060 BARNES NATALIE L & BRIAN E BARNES 15630 FISH POINT RD SE PRIOR LAKE, MN 55372 15630 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 12 252670050 OLIVER BRADLEY 15622 FISH POINT RD SE PRIOR LAKE, MN 55372 15622 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 13 252670040 BONGARD DEBRA K 15602 FISH POINT RD SE PRIOR LAKE, MN 55372 15602 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 17 259360460 PHERSON MICHAEL D & TERRI A 15538 FISH POINT RD SE PRIOR LAKE, MN 55372 15538 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 18 259360461 KUNTZ CORRIN L 15518 FISH POINT RD PRIOR LAKE, MN 55372 15518 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 37 251800010 JORGENSON DYLAN 15453 FISH POINT RD SE PRIOR LAKE, MN 55372 15453 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 38 251800020 SALISBURY GABRIELLE 15469 FISH POINT RD SE PRIOR LAKE, MN 55372 15469 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 39 251800030 LINNYWINKEN LLC 5366 FAIRLAWN SHORE PRIOR LAKE, MN 55372 15483 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 48 250760030 DICKENSON DARREN R 15543 FISH POINT RD SE PRIOR LAKE, MN 55372 15543 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 49 250760040 JOKINEN SCOTT B & CYNTHIA J 15567 FISH POINT RD SE PRIOR LAKE, MN 55372 15567 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 58 250730180 ANDERSON MARK STEVEN 15611 FISH POINT RD SE PRIOR LAKE, MN 55372 15611 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 77 250730140 LERUM SPENCER 15657 FISH POINT RD SE PRIOR LAKE, MN 55372 15657 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 78 250730150 RIDDLE HUGH L & TAMMY 15671 FISH POINT RD SE PRIOR LAKE, MN 55372 15671 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 79 250730160 JOHNSON NICHOLAS A 15685 FISH POINT RD SE PRIOR LAKE, MN 55372 15685 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 80 250730170 DOWNING JOHN P & JANE E 15699 FISH POINT RD SE PRIOR LAKE, MN 55372 15699 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 81 252410010 NICKLES JAROD MICHAEL 15719 FISH POINT RD SE PRIOR LAKE, MN 55372 15719 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 82 252410020 HALL DONALD W & LINDA L & LINDA L HALL REVOCABLE T 15739 FISH POINT RD SE PRIOR LAKE, MN 55372 15739 FISH POINT RD SE SF RES 1 $9,548.10 $9,548.10 83 252410030 PRIOR LAKE CITY OF & CITY MANAGER 4646 DAKOTA ST SE PRIOR LAKE, MN 55372 --**$21,005.82 GRAND TOTAL - PRELIMINARY PROJECT STREET ASSESSMENT:$440,591.77