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Home My WebLink About10B - Assessment Roll City Projects CITY COUNCIL AGENDA REPORT DATE: AGENDA #: PREPARED BY: SUBJECT: AUGUST 17, 1998 10B SUE MCDERMOTT, ASSISTANT CITY ENGINEER CONSIDER APPROVAL OF THE FOLLOWING RESOLUTIONS: 98.XX DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR PROJECTS 98.14 PLEASANT STREET, COLORADO STREET, WEST AVENUE AND BIRCH AVENUE IMPROVEMENTS, 98.15 PLEASANT STREET OVERLAY AND 98.16 DULUTH AVENUE IMPROVEMENTS. 98.XX ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR PROJECTS 98.14 PLEASANT STREET, COLORADO STREET, . WEST AVENUE AND BIRCH AVENUE IMPROVEMENTS, 98.15 PLEASANT STREET OVERLAY AND 98.16 DULUTH AVENUE IMPROVEMENTS. DISCUSSION: HISTORY At the June 15, 1998 Council Meeting, the Council awarded bids for the 1998 improvement projects which included Pleasant Street, Colorado Street, Birch Avenue and West Avenue (Project 98-14), Pleasant Street Overlay (Project 98-15), and Duluth Avenue (Project 98-16). The Council approved awarding the bids prior to holding the assessment hearing as one way to accomplish the projects during the 1998 construction season. The Assessment Review committee met on June 5, 1998 to review the projects and the proposed assessments. The purpose of the committee is to assist the staff in its evaluation of all properties in accordance with the City's Assessment Policy and review the staff proposed assessment rolls. The committee consists of two councilmembers (currently Mayor Mader and Councilman Kedrowski), the City Manager, Finance Director, and City Engineer. CURRENT CIRCUMSTANCES In accordance with the City's Assessment Policy, the Assessment Review Committee met and reviewed the proposed assessments on each of the projects. The Assessment Review Committee made the following findings and recommendations to the City Council: 16200^E~€*~e. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER FINANCIAL IMPACT: G:\AGENDA(\98ASSESS.DOC 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 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 and trail and upgrading Duluth Avenue from 7 ton to 9 ton was subtracted from the total project cost to calculate the assessments. The difference is to be paid from municipal state aid funds. 2) The Assessment Review Committee recommends 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 is $55.00. The proposed rate for the Pleasant Avenue Overlay project is $6.18/front foot. 3) The Assessment Review Committee recommends that the sewer and water be assessed at 40% of the total project cost against the benefited properties which is the City's policy for paving assessments. 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 60% difference will be paid from the trunk reserve fund. 4) 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 124 benefiting properties in the project area. The Assessment Review Committee recommends that $1,149,442.24 be paid through tax levy, municipal state aid funds, and trunk reserve; and $599,609.76 be assessed against the benefiting properties. 5) The Assessment Review Committee recommends that the City Council declare the costs to be assessed, order preparation of the assessment roll, and establish the Assessment Hearing date as September 21, 1998. If the proposed assessments are adopted after an assessment hearing financing of the improvements will be as follows: Funding Source Assessments Tax Levy MSA Funds Trunk Reserve Project Totals Amount $599,609.76 $743,104.72 $150,000.00 $256,337.52 $1,749,052.00 The numbers shown above include 30% indirect costs for design, survey, inspection, administration, and financing. ALTERNATIVES: The alternatives are as follows: 1. Approve Resolution 98-XX declaring the costs to be assessed, and ordering the preparation of the proposed assessment roll 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 Approve Resolution 98-XX establishing September 21, 1998 for the assessment hearing. 2. Deny the resolutions for a specific reason and provide staff with direction. 3. Table this item for a specific reason. RECOMMENDED MOTION: A motion and second to adopt Resolution 98-XX declaring costs to be . assessed and ordering preparation of the proposed assessment roll and Resolution 98-XX setting the assessment hearing date for Pleasant Street, Colorado Street, Birch Avenue and West Avenue Improvements, the Pleasant Street Overlay, and the Duluth Avenue Improvements for the September 21, 1998 Co cil Meeting. REVIEWED BY: G:\AGENDA(\98ASSESS.DOC RESOLUTION 98-XX RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENTS FOR PROJECTS 98-14 PLEASANT STREET, COLORADO STREET, WEST AVENUE AND BIRCH AVENUE, 98-15 PLEASANT STREET OVERLAY, AND 98-16 DULUTH AVENUE IMPROVEMENTS MOTION BY: SECOND BY WHEREAS, a Contract has been let and costs have been determined for the improvement of Pleasant Street, Colorado Street, Birch Avenue and West Avenue Improvements, Project 98-14; Pleasant Street Overlay, Project 98-15; and Duluth Avenue Improvements, Project 98-16; and the contract price for such improvements is $1,345,425.33 and the expenses incurred or to be incurred in the making of such improvements amount to $403,626.67, so that the. total cost of the improvements will be $1,749,052.00. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. The portion of the cost of such improvements is to be paid by the City is hereby declared to be $1,149,442.24, and the portion of the cost to be assessed against benefited property owners is declared to be $599,609.76. 2. Assessments shall be payable on an equal principal installment method extending over a period of 5 years for trunk acreage assessment, 10 years for street and storm sewer improvements, and 20 years for sanitary sewer and watermain 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 a minimum of 8% per annum from the date of the adoption of the assessment resolution. 3. 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 he shall file a copy of such proposed assessment in his office for public inspection. 4. The City Manager shall upon the completion of such proposed assessment, notify the Council thereof. 162\JU'd~~~ef?CAve. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Passed and adopted this 17th day of August, 1998. {Seal} g:\resoI98\98ASSESS.DOC YES Mader Kedrowski Petersen Schenck Wuellner Frank Boyles City Manager City of Prior Lake NO Mader Kedrowski Petersen Schenck Wuellner RESOLUTION 98-XX so~~ E RESOLUTION ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR PROJECTS 98-14 PLEASANT STREET, COLORADO STREET, WEST AVENUE AND BIRCH AVENUE, 98-15 PLEASANT STREET OVERLAY, AND 98-16 DULUTH AVENUE IMPROVEMENTS MOTION BY: SECONDED BY: WHEREAS, by a resolution passed by the Council on August 17th, 1998, the City Manager was directed to prepare a proposed assessment of the cost of improvements for Projects 98-14 Pleasant Street, Colorado Street, Birch Avenue, and West Avenue, 98-15 Pleasant Street Overlay, and 98-16 Duluth Avenue Improvements; and WHEREAS, the City Manager notifies the Council that such proposed assessment will be completed and filed in his office for public inspection, NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. A hearing shall be held on the 21 st day of September, 1998 in City Council Chambers at 7:45 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. 2. The City Manager is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing, and he shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. 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 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. He may, at any time thereafter, pay to the City Finance Director the entire amount of the assessment remaining unpaid, excepting the installment portion appearing upon the current year's property tax statement. 1620B'~~Bqsreek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Passed and adopted this 17th day of August, 1998 YES NO Mader Kedrowski Petersen Schenck Wuellner Mader Kedrowski Petersen Schenck Wuellner {Seal} Frank Boyles City Manager City of Prior Lake 98PHASMT.DOC