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Home My WebLink About5E - Pike Lake Trail Improvements CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: DECEMBER 7, 1998 5E, 1 & 2 GREG ILKKA, PUBLIC WORKS DIRECTOR/CITY ENGINEER CONSIDER APPROVAL OF THE FOLLOWING RESOLUTIONS: AGENDA ITEM: 1. RESOLUTION 98-XX DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR PROJECT 97-17, PIKE LAKE TRAIL IMPROVEMENTS. 2. RESOLUTION 98-XX ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR PROJECT 97-17, PIKE LAKE TRAIL IMPROVEMENTS. DISCUSSION: HISTORY At the August 18, 1997 Council Meeting, the Council awarded bids for the 1997 improvement projects which included Pike Lake Trail (Project 97-17). During the course of the construction project the City Council approved Change Orders that reduced the contract amount by $74,656.00. The Council determined that the project should be re-assessed to reflect the reduced contract amount, thus reducing the Paving Assessments on the project. Pike Lake Trail originally had a total project cost (construction contract + 30%) of $520,709,80. It was funded through tax levy, municipal state-aid funds, trunk reserve, and assessments, There were 5 benefiting properties in the project area, which include Holy Cross Lutheran Church, two parcels owned by Herb Wensmann, one parcel owned by Ed Vierling, and one lot in the Maple Hill plat owned by Mr, Dave Triebel which was only assessed for water. To calculate the new project cost, the change order amounts ($74,656.00) plus 30% administrative/engineering costs ($22,396.80) are deducted from the original project cost of $520,709,80. The new total project cost is $423,657.00. 162lB.€AEaglooE:reek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER CURRENT CIRCUMSTANCES '- The change order reductions were related to the street and storm sewer work and therefore reduced only these costs. These costs are recovered through the Paving Assessment and therefore this process will only re-visit the Paving Assessments on the project. The water, sanitary sewer, and trunk acreage assessments have not changed and therefore are not re-visited in this process. For this reason, there are only 4 benefited properties associated with this re- assessment process. Mr. Triebel was not assessed for paving. A preliminary assessment roll is attached that outlines the original and reduced paving assessment amounts. The 1998 payment credit is the difference (principal and interest) between what was paid and what would have been paid had this reduced assessment been certified. Mr. Ed Vierling paid off his assessment in 1997, including 46 days of interest. He is due a $5,527.16 refund. The other paving assessments were spread over ten years. ISSUES If the proposed paving assessments are adopted after an assessment hearing, financing of the improvements will be as follows: Funding Assessments Paving Water Sanitary Tax Levy MSA Funds Trunk Reserve Project Total Pike Lake Trail (Original) $295,791,50 $10,716,90 $54,056.40 $0 $127,326.30 $32,818.70 $520,709.80 Pike Lake Trail (Revised) $224,473,10 $10,716,90 $54,056.40 $0 $101,591,90 $32,818.70 $423,657,00 The numbers shown above include indirect costs for design, survey, inspection, administration, and financing, Attached is Resolution 98-XX declaring costs to be assessed and ordering preparation of the proposed assessment roll and Resolution 98-XX setting the REASSESS,DOC FISCAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: REASSESS,DOC assessment hearing date for Pike Lake Trail for the December 21, 1998 Council Meeting. CONCLUSION The proposed assessment revisions are appropriate so that property owners pay only those actual costs of the street improvements they enjoy. The City also benefits proportionately from these reduced costs because Municipal State Aid (MSA) funds were used, in part, to pay for the paving. The reduction to the MSA portion of the funding amounts to $25,734.40. The alternatives for the Council to consider are as follows: 1. Approve Resolution 98-XX declaring the costs to be assessed, and ordering the preparation of the proposed assessment rolls for Project 97-17 Pike Lake Trail Improvements; and Approve Resolution 98-XX establishing December 21, 1998 for the assessment hearing. 2. Deny the resolutions for a specific reason. 3. Table this item for a specific reason. 1) A motion and second as part of the consent agenda to approve Resolution 98-XX declaring the costs to be assessed, and ordering the preparation of the proposed assessment roll for Project 97-17 Pike Lake Trail Improvements; and 2) A motion and second as part of the consent agenda to approve Resolution 98-XX establishing December 21, 1998 for the assessment hearing. prepared, published and RESOLUTION 98-XX RESOLUTION DECLARING PAVING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENTS FOR PROJECT 97 -17 PIKE LAKE TRAIL IMPROVEMENTS MOTION BY: SECOND BY WHEREAS, a Contract was let and costs were determined for the improvement of Pike Lake Trail, Project 97-17 and the contract price for such improvements was $400,546.00 and the expenses incurred or to be incurred in the making of such improvements amounted to $120,163.80 so that the'total cost of the improvements would be $520,709.80, and WHEREAS, Change orders were approved for the improvement of Pike Lake Trail, Project 97-17 and the contract price for such improvements was reduced to $325,890.00 and the expenses incurred or to be incurred in the making of such improvements was reduced to $97,767.00 so that the total cost of the improvements was reduced to $423,657.00, and WHEREAS, the City Council has determined that it is appropriate to re-assess the Paving Assessment associated with Project 97-17, Pike Lake Trail improvements. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF PRIOR LAKE, MINNESOTA: 1. The portion of the cost of such paving improvements to be paid by the City is hereby declared to be $81,062.92 and the portion of the cost to be assessed against benefited property owners is declared to be $224,473,10. 2. Assessments shall be payable on an equal principal installment method extending over a period of 10 years for street and storm sewer 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 paving improvements against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, REASSESS,DOC and he shall file a copy of such proposed paving assessment in his office for public inspection. 4. The City Manager shall upon the completion of such proposed paving assessment, notify the Council thereof. Passed and adopted this 7th day of December, 1998. YES NO I Mader I Kedrowski I Petersen I Schenck I Wuellner Mader Kedrowski Petersen Schenck Wuellner {Seal} Frank Boyles City Manager City of Prior Lake REASSESS,DOC RESOLUTION 98-XX RESOLUTION ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR PROJECT 97-17 PIKE LAKE TRAIL IMPROVEMENTS MOTION BY: SECONDED BY: WHEREAS, by a resolution passed by the Council on December 7th, 1998, the City Manager was directed to prepare a proposed assessment of the cost of paving improvements for Project 97-17 Pike Lake Trail; and WHEREAS, the City Manager notifies the Council that such proposed paving 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 21st day of December, 1998 in City Council Chambers at 7:45 P.M. to pass upon such proposed paving 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 paving assessment. 2. The City Manager is hereby directed to cause a notice of the hearing on the proposed paving 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. REASSESS,DOC Passed and adopted this 7th day of December, 1998. I Mader I Ked rowski I Petersen Schenck Wuellner {Seal} REASSESS,DQC YES Mader Kedrowski Petersen Schenck Wuellner Frank Boyles City Manager City of Prior Lake NO ASSESSMENT HEARING DATE: ASSESSMENT RATE: ASSESSMENT CODE: INTEREST RATE: SPREAD: PAYMENT METHOD: 21,1998 PROPOSED $1l4.82/FF PAVING PAVING - 92 8.0% PAVING - 9 YEARS EQUAL PRINCIPAL LEGAL DESCRIPTION PROPERTY OWNER PIHf?W"W .i~yq~Pi ORIGINAL REDUCED 1998 NET & & DEFERRED CURRENT i'DBfEi'tiffitf '....DE~ti CURRENT CURRENT PAYMENT CURRENT ...........,,,, ---."..",..,.. '.' ----. PARCEL NUMBER ADDRESS FRONTAGE FRONTAGEPAVINdi'PAVING< PAVING PAVING CREDIT PAVING ASSESSMENT ASSESSMENT ASSESSMENT AMOUNT AMOUNT AMOUNT (Code 92) (Code 92) (Code 92) Sec. 26, T115, R22 25 Herbert & Elaine Wensmann 620' . 150' $22,695.00 $17,223,00 <$1,054.53> $16,168.47 S 25 A ofNE'/. NW'/. 3312 West 15151 Street 25-926-006-0 Rosemoun!, MN 55068 Sec. 26, T115, R22 8.23 Holy Cross Lutheran Church 0 565' $85,484.50 $64,873.30 <$3,972.04> $60,901.26 N 640' ofW 560' ofN'/, NE'/. P.O, Box 177 25-926-003-0 14085 NE Pike Lake Trail See, 26, T115. R22 15 Herbert & Elaine Wensmann 320' 150' $22,695,00 $17.223.00 <$1,054.53> $16,168.47 N 552' ofE 1183.7' ofNE'/. 3312 West 15151 Street NW'/. Rosemoun!, MN 55068 25-926-002-0 Sec. 25, T115, R22 2.5AC Ed Vierling 0 150' $22,695.00 $17,223,00 <$5,527.16>. None E 250' ofN 435.60 ofSE'/. NW'/. 14310 Pike Lake Trail REFUND 25-926-00 I-I Prior Lake, MN 55372 $153,569.50 $116,542,30 TOTALS · Credit reflects entire principal paid in 1997. REASROLL,DOC