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Home My WebLink About8A - 1998 Improvement Projects #98-14, 98-15, & 98-16 CITY COUNCIL AGENDA REPORT DATE: AGENDA #: PREPARED BY: SUBJECT: SEPTEMBER 21,1998 SA SUE MCDERMOTT, ASSISTANT CITY ENGINEER CONDUCT ASSESSMENT HEARING FOR 1998 IMPROVEMENT PROJECTS #98-14 PLEASANT STREET, COLORADO STREET, BIRCH AVENUE AND WEST AVENUE, #98-15 PLEASANT STREET OVERLAY AND #98-16 DULUTH AVENUE, AND CONSIDER APPROVAL OF RESOLUTION 98- XX ADOPTING THE ASSESSMENT ROLL FOR THESE PROJECTS. DISCUSSION: HISTORY At its regular meeting of August 17, 1998, the Council approved Resolution 98-97 which declared the cost to be assessed and ordered the preparation of the assessment roll. Also Resolution 98-98 was approved establishing the date of the Assessment Hearing as September 21, 1998, for the 1998 street and utility improvement projects. CURRENT CIRCUMSTANCES All benefiting property owners have been mailed a Statement of Special Assessments which included information pertinent to their property such as the total assessment amount and the assessment rate. A Public Hearing notice has been mailed to each property owner indicating time and place of the Assessment Hearing. The Public Hearing Notice has also been published in the newspaper for two weeks. The total project cost for all of the 1998 improvement projects is $1,749,052.00 It is proposed to be funded through tax levy, state aid funds, trunk reserve funds and assessments. There are 123 benefiting properties in the project area. The Assessment review committee recommends that $1,155,107.24 be paid through tax levy, municipal state aid funds, and trunk reserve; and $593,944.76 be assessed against the benefiting properties. This amount is slightly lower than the amount the council authorized 16200 E~@~k Ave, S,E" Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER due to an adjustment in front footage on Pleasant Street. A copy of the assessment role is attached showing the proposed assessments per parcel. Each assessable frontage was determined per the City's Assessment Policy utilizing the existing plat drawings on file for these areas. In the event that a property owner provides a surveyor justification that the frontage for a parcel is incorrect, the City Council can adjust the frontage for the parcel and the resulting assessment. The assessment terms are to be for five (5) years for trunk acreage, ten (10) years for paving, and twenty (20) years for sewer and water. Added to the first installment (1998) will be an additional 101 days of interest which accounts for the remainder of 1998 following the Assessment Hearing. An interest rate of 8% will be charged in accordance with City Assessment Policy. Prior Lake Code, Chapter 1-13 allows for the deferment of assessment principal and interest if the following four criteria are satisfied: 1. Applicant must be 65 years of age or older. 2. The qualifying property must be the homestead of the applicant. 3. Annual gross income shall not exceed the income limits as set forth by family size according to Attachment "A" of Ordinance 86-3. 4. Total special assessment to be deferred must exceed $1000.00. The property owners have a right to appeal their assessments as per Minnesota Statutes Chapter 429. Written objections must be signed and filed with the City Manager prior to the Assessment Hearing or presented to the Council at the Hearing. ISSUES The Assessment Review Committee met to evaluate the proposed assessments and made the following findings and recommendations to the City Council: 1) In accordance with the policy, some costs are not assessed. For example, the extra cost to construct the streets to a 9 ton design is not assessed because a typical residential street is 98IMPAH,DQC designed to a 7 ton standard. Also, in accordance with the policy, the sidewalk and trail portion of these projects is not included in the assessments to the benefiting properties. Therefore, the cost for sidewalk, trail and upgrading Duluth Avenue from 7 ton to 9 ton, was subtracted from the total project costs to calculate the assessments. 2) The Assessment Review Committee recommended that the Front Footage Assessment method be used for the paving portion of the projects and that the assessment rate be equal for the Duluth Avenue project as well as the Pleasant, Colorado, West and Birch project. The proposed front footage rate of assessment for streeUstorm sewer is $55.00/FF (per front foot). For the Pleasant Street overlay project the recommended front footage rate of assessment is $6.18/FF. 3) The Assessment Review Committee recommends that the sanitary sewer and water be assessed at 40% of the total project cost against the benefited properties. In addition, the Committee recommends that the Unit Assessment method be used for the sewer and water portion of the projects. The proposed unit rate for the sanitary sewer assessment is $1,155.00 and the proposed rate for the water assessment is $1,525.00. The remaining 60% of the project cost will be paid from the trunk reserve fund. One property on Duluth Avenue which is currently on a septic system, is being 100% assessed for sanitary sewer as a first time improvement and will pay the 1998 fee schedule rate of $40.00 per front foot plus the trunk acreage amount of $3,500.00 per acre. Based on the questions we have received from property owners, we expect that the primary area of concern will be proposed special assessments to pay for sanitary sewer and water service replacement. The Council should receive public input and then close the public hearing. If certain issues need additional study, those issues could be referred to the special assessment committee for evaluation and recommendation. If all questions are answered at the public hearing, it would be appropriate to approve the attached resolution. 981MPAH.DOC FINANCIAL IMPACT: ALTERNATIVES: 98IMPAH.DOC The following is a summary of the financing of the improvements. Funding Amount Source Assessments $593,944.76 Tax Levy $745,769.72 MSA Funds $150,000.00 Trunk Reserve $259,337.52 Project Totals $1,749,052.00 The numbers shown above include 30% indirect costs for design, survey, inspection, administration, and financing. Resolution 98-97 declared the amount to be assessed on these projects as $596,609.76. After mailing the Notices to the property owners, we received a call regarding incorrect front footage for one property. The actual assessment amount with this adjustment is $593,944.76. The preliminary assessment roll has been corrected and the affected property owner was sent a revised Notice. The total assessment amount is based on the contract amount plus indirect costs and does not include change orders. Change orders would be added to the costs paid by the City. The focus of tonight's hearing is whether the properties have benefited because of this project. and whether the assessment has been calculated accurately and in accordance with city policy. A meeting will be scheduled when the construction is completed giving the public an opportunity to provide City staff with feedback regarding the projects. The alternatives are as follows: 1. Approve Resolution 98-XX adopting the assessment roll as submitted. 2. Approve Resolution 98-XX subject to Council approved changes. 3. Close the hearing and direct the Special Assessment Review Committee to examine issues or concerns raised at the hearing and provide a recommendation for Council action on October 5, 1998. RECOMMENDED MOTION: A motion and second to adopt Resolution 98-XX adopting the assessment roll for the 1998 Street and Utility ImprovefJ1ent Projects. 98IMPAH,DOC '" ~~ llVNESO RESOLUTION ADOPTING ASSESSMENTS FOR PROJECTS #98-14 PLEASANT STREET, COLORADO STREET, BIRCH AVENUE AND WEST AVENUE, #98-15 PLEASANT STREET OVERLAY AND #98.16 DULUTH AVENUE RESOLUTION 98.XX 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 projects 98- 14 Pleasant Street, Colorado Street, Birch Avenue and West Avenue improvements, 98-15 Pleasant Street Overlay, and 98-16 Duluth Avenue improvements, and has amended such proposed assessment as it deems just. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. Such proposed assessment as amended, a copy of which is attached hereto and made part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessments shall be payable on an equal principal method extending over a period of five (5) years for Trunk Sewer Acreage, a period of ten (10) years for paving, and a period of twenty (20) years for sanitary sewer and water. 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 eight (8) percent per annum from the date of adoption of this assessment resolution. To the first installment shall be added one hundred-one (101) days of interest on the entire assessment from the date of this resolution until December 31, 1998. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 3. 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 the payment, except that no interest will be charged if the entire assessment is paid within thirty (30) days, and the individual may at any time thereafter, pay to the City's Finance Director the entire amount of the assessment remaining unpaid, 16200 E~k Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER excepting the installment portion appearing upon the current year's property tax statement. 4. The City Manager shall forthwith transmit 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 same manner as other municipal taxes. 5. The final project cost apportionment has been determined to be $1,749,052.00 of which $745,769.72, $150,000.00, and $259,337.52 shall be paid from Tax Levy, Municipal State Aid, and the City's Trunk Reserve Fund, respectively, and $593,944.76 to be assessed to the benefited property owners as per the attached assessment roll. 6. The Trunk Acreage Assessment has been determined to be $1,750.00 and is to be assessed to the benefited property owners as per the attached assessment roll. 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