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Home My WebLink About8B - Assessment Hearing for Pike Lake Trail CITY COUNCIL AGENDA REPORT MEETING DATE: AGENDA #: PREPARED BY: DECEMBER 21, 1998 88 GREG ILKKA, PUBLIC WORKS DIRECTOR/CITY ENGINEER CONDUCT ASSESSMENT HEARING FOR 1997 IMPROVEMENT PROJECT #97-17 PIKE LAKE TRAIL, AND CONSIDER APPROVAL OF RESOLUTION 98-XX ADOPTING THE ASSESSMENT ROLL THEREFORE. AGENDA ITEM: DISCUSSION: HISTORY During the course of the Pike Lake Trail 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. At its regular meeting of December 7, 1998, the Council approved Resolution 98-XX which declared the cost to be assessed and ordered the preparation of the assessment roll for re-assessment of the Pike Lake Trail paving assessments. Resolution 98-XX was also approved establishing the date of the Assessment Hearing as December 21, 1998 for the re-assessment of the Pike Lake Trail paving improvements. Pike Lake Trail originally had a total project cost (construction contract + 30%) of $520,709.80. It was funded through municipal state-aid funds, trunk reserve, and assessments. To calculate the new project cost, the change order amounts ($74,656.00) plus 30% administrative and 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. All benefiting property owners have been mailed a Statement of Special Assessments which included information pertinent to their property such as the total 16200~ Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 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. As of this writing staff has not heard anything from the property owners. CURRENT CIRCUMSTANCES The assessment rates were calculated per the City's Assessment Policy based upon 100% of the assessable project cost for street and storm sewer improvements assessed to the benefiting properties. Pike Lake Trail has a total project cost of $423,657.00. Of this total, $305,536.02 is the street and storm sewer (paving) cost. The paving is funded through municipal state-aid funds and special assessments. This assessment hearing process is only revising the paving assessment. There are 4 benefiting properties in the project area, which include Holy Cross Lutheran Church, two parcels owned by Herb Wensmann, and one parcel owned by Ed Vierling. A copy of the assessment role is attached showing the proposed paving assessments per parcel. The new contract amount reduced the front footage rate for paving from $151.30 per front foot to $114.82 per front foot. 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. There have been no changes to these frontages since the original assessment hearing. The remaining assessment terms are to be nine (9) years for paving. All parcels have received a credit for payments made in 1998. An interest rate of 8% will be charged in accordance with City Assessment Policy. 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 PL T AH2.DOC FISCAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: PLTAH2,DOC the Council at the Hearing. As Council is aware, the Holy Cross Lutheran Church appealed their assessment and the outcome of that trial will determine their ultimate assessment. The following is a summary of the financing of the improvements. Funding Pike lake Trail (Original) Pike lake Trail (Revised) Assessments Paving Water Sanitary Tax Levy MSA Funds Trunk Reserve Project Total $295,791.50 $10,716.90 $54,056.40 $0 $127,326.30 $32,818.70 $520,709.80 $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. ISSUES 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. The project costs for paving improvements on Pike Lake Trail are recovered from Municipal State-Aid funds and Special Assessments. 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. Continue the hearing for a specific reason. Motion and second~ approve Resolution 98-XX adopting the assessment roll submitted. r ,~ /~ ~' RESOLUTION 98-XX RESOLUTION ADOPTING ASSESSMENTS FOR PROJECT 97-17, PIKE LAKE TRAIL IMPROVEMENTS 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 project 97-17, Pike Lake Trail 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 ten (10) years for paving. 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 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, excepting the installment portion appearing upon the current year's property tax statement. 4. The City Manager shall forthwith transmit a certified duplicate PLTAH2,DOC 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 for paving has been determined to be $305,536.02 of which $81,062.92 shall be paid from Municipal State Aid funds and $224,473.10 to be assessed to the benefited property owners as per the attached assessment roll. Passed and adopted this 21st day of December, 1998 YES NO Kedrowski Mader Petersen Schenck Wuellner Kedrowski Mader Petersen Schenck Wuellner {Seal} Frank Boyles City Manager City of Prior Lake PLTAH2,DOC ASSESSMENT RATE: ASSESSMENT CODE: INfEREST RATE: SPREAD: PAYMENT METHOD: 1998 PROPOSED S114.82/FFPAVING PAVING-92 8.0% PAVING - 9 YEARS EQUAL PRINCIPAL ,. LEGAL DESCRlPTIO~ PROPERTY OWN!:.K gmq~ .,.....!WpyGm?i... lllUGINAL REDUCED 1998 NET & & DEFERRED CURRENTDEFERREO >PEFERRED? CURRENT CURRENT PAYMENT CURRENT ....,._'...-.........,-.,.....:.,...,.:.:.:,,-,..;.'........... ..-:.-,.,....7......:.,;..,....'...:.:-.....,................".: PARCEL NUMBER ADDRESS FRONTAGE FRONT AGE:pAVING<' {pAVING::> PAVING PAVING CREDIT PAVING ASSESSMENT ASSESSMENT ASSESSMENT AMOUNT AMOUNT AMOUNT (Code 92) (Code 92) (Code 92) See, 26, Il15, R22 25 Herbert & Elaine Wensmann 6:.!0' . 150' ---S22,695.00 $17,223.00 <$1,054,53> 516,168.47 S 25 A ofNE'/. NW'/. 1895 Plaza Drive 25-926-006-0 Eagan. MN 55122 Sec. 26. Il15, R22 8.23 Holy Cross Lutheran Church 0 565' $85,484.50 $64,873.3Q <$3,972.04> $60,901.26 N 640' of W 560' of Nt. NE'/. P.O. Box 177 25-926-003 -0 14085 NE Pike Lake Trail Sec. 26, Ill5, R12 15 Herbert & Elaine Wensmann 320' 150' ' 'i$48;4U;:9<>?:(~$(),i~gi4Q;:: $22,695.00 $17,223.00 <$1,054.53> $16,168.47 N 552' ofE 1183.7' ofNE'/. 1895 Plaza Drive NW'/. Eagan, MN 55122 25-926-002-0 Sec. 25, Ill5, R122,5AC Ed Vierling 0 150' $22,695.00 $17,223.00 <$5,527.16>" None E 250' ofN 435,60 ofSE'/. NW'I. 14310 Pike Lake Trail REFUND 25-926-001-1 Prior Lake, MN 55372 5153,569.50 5116,542.30 TOTALS " Credit reflects entire principal paid in 1997. REASROLLDOC