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Home My WebLink About9C - Candy Cove/Lakeside Manor Improvements I" DATE: AGENDA #: PREPARED BY: REVIEWED BY: SUBJECT: DISCUSSION: CITY COUNCil AGENDA REPORT SEPTEMBER 7,1999 9C SUE MCDERMOTT, ASSISTANT CITY ENGINEER GREG IlKKA, PUBLIC WORKS DIRECTOR/CITY ENGINEER CONSIDER APPROVAL OF THE FOllOWING RESOLUTIONS: 9q yr 01 99~ AND 99-)Qt DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROllS FOR PROJECT 99-11 CANDY COVE/lAKESIDE MANOR IMPROVEMENTS AND PROJECT 99-13 NORTH SHORE OAKS 1 ST ADDITION SANITARY SEWER AND WATER SERVICE IMPROVEMENTS. ~O ~I 99~ AND 9~ ESTABLISHING THE DATE OF THE ASSESSMENT HEARINGS FOR PROJECT 99-11 CANDY COVE/LAKESIDE MANOR IMPROVEMENTS AND PROJECT 99-13 NORTH SHORE OAKS 1 ST ADDITION SANITARY SEWER AND WATER SERVICE IMPROVEMENTS. HISTORY Both project 99-11 and project 99-13 are included in the 1999 Capital Improvement Program and have received numerous City Council approvals to date. At the July 19, 1999 Council Meeting, the Council awarded bids for the Candy Cove/Lakeside Manor improvement project. This project includes storm sewer and street reconstruction on Candy Cove Trail, Lemley Circle, Woodlawn Circle, Manor Road, and Hill Circle. The City has executed a contract with Northwest Asphalt to construct the project. Due to litigation involving the contract award, a portion of the project may be completed during the 1999 construction season with the majority of the work being done in 2000. 162Qo.cW~Q-~e. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER The North Shore Oaks 1 st Addition sanitary sewer and water project was a resident petitioned project. The Council awarded the contract at their April 5, 1999 meeting. The project has been completed and the Council approved final payment at the August 2, 1999 meeting. The Assessment Review Committee met on March 10, 1999 to review these 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 Councilmembers Petersen and Schenck), the City Manager, Finance Director, and City Engineer. The Assessment Review Committee recommended assessing both projects on a unit basis. The unit basis asssessment means each property owner on a project, regardless of front footage, should have the same assessment. The committee recommended conducting the North Shore Oaks assessment hearing after award of the contracts so that assessments reflect actual construction costs. The committee recommended conducting the Candy Cove/Lakeside Manor project after the contract award when the project was substantially complete. CURRENT CIRCUMSTANCES A hearing was held on August 5th regarding the award of the Candy Cove project to the other than low bidder. The Court upheld the City's decision. Due to the delay in the award many of the property owners may not be affected by the construction this year. Phasing of the project will push that work into next construction season. 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: 1) Project 99-11 , Candy Cove/Lakeside Manor: The Assessment Review Committee recommended to assess the Candy Cove/Lakeside Manor properties on a unit basis due to the homes within the project area being comparable G:\AGENDAf:.99ASSESS.DOC FINANCIAL IMPACT: G:IAGENDA(\99ASSESS.DOC in size and market value with the only difference being the homes located on the lake. The total project cost for the Candy Cove/Lakeside Manor improvement project is $872,996.48. It is proposed to be funded through tax levy, trunk reserve funds and assessments. The Assessment Review Committee recommends that $567,484.61 be paid through tax levy and trunk reserve; and 40% of the assessable project costs, or $305,511.87, be assessed against the benefiting properties. There are 91 benefiting units in the project area. Based on the foregoing, the unit assessment is $3,357.27. 2) Project 99-13, North Shore Oaks 1st Addition Sanitary Sewer and Water Service Improvements: The Assessment Review Committee recommended to assess the North Shore Oaks 1 st Addition properties on a unit basis as well due to the homes within the project area being comparable in size and market value and each received essentially the same benefits. The total project cost for the North Shore Oaks 1 st Addition Sanitary Sewer and Water Service Improvements project is $88,232.64 (which includes trunk acreage assessment amounts) and is proposed to be 100% assessed. The Assessment Review Committee recommends that $88,232.64 be assessed against the benefiting properties. There are 8 benefiting units in the project area. The combined unit assessment for sewer and water is $11,193.02 for seven of the lots. Due to the unique location of the eighth lot's septic tank, the property owner contracted the sanitary sewer connection themselves resulting in a proposed assessment of $9,881.50. Staff recommends that the City Council declare the costs to be assessed, order preparation of the assessment rolls, and establish the Assessment Hearing date as October 4, 1999 for both projects. If the proposed assessments are adopted after an assessment hearing financing of the improvements will be as follows: Funding Candy Covel Northshore Oaks lakeside Manor 1st Addition Assessments $305,511.87* $88,232.64* Tax Levy $458,267.81* 0.00 Trunk Reserve $109,216.80 0.00 Project Total $872,996.48* $88,232.64* ALTERNATIVES: RECOMMENDED MOTION: REVIEWED BY: REVIEWED BY: G:\AGENDA(\99ASSESS.DOC * These numbers include 30% indirect costs for design, survey, inspection, administration and financing. The alternatives are as follows: 1. Approve Resolutions 99-XX and 99-XX declaring the costs to be assessed and o~dering the preparation of the proposed assessment rolls for Projects 99-11 Candy Cove /Lakeside Manor Improvements and 99- 13 Northshore Oaks 1 st Addition Sanitary Sewer and Water Service Improvements; and approve resolutions 99-XX and 99-XX establishing October 4, 1999 for the assessment hearings. 2. Deny the resolutions for a specific reason and provide staff with direction. 3. Table this item for a specific reason. A motion and second to approve Resolutions 99-XX and 99-XX declaring the costs to be assessed and ordering the preparation of the proposed assessment rolls for Projects 99-11 Candy Cove/Lakeside Manor Improvements and 99-13 Northshore Oaks 1 st Addition Sanitary Sewer and Water Service Improvements; and approve resolutions 99-XX and 99-XX establishing the October 4, 1999 City Council meeting for the assessment hearings. {9'-fl1. ~ RESOLUTION 99-XX MOTION BY: SECOND BY WHEREAS, bids have been received and costs have been determined for the improvement of Candy Cove/Lakeside Manor Improvements, Project 99-11, and the contract price for such improvements is $696,739.63 and the expenses incurred or to be incurred in the making of such improvements amount to $176,256.85 so that the total cost of the improvements will be $872,996.48 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 $567,484.61 to be drawn from the Trunk Reserve and Tax Levy, and the portion of the cost to be assessed against benefited property owners is declared to be $305,511.87. 2. Assessments shall be payable on an equal principal installment method extending over a period of 10 years for street 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. Passed and adopted this 7th day of September, 1999. YES NO Mader Mader Kedrowski Kedrowski Petersen Petersen Schenck Schenck Wuellner Wuellner {Seal} Frank Boyles City Manager 1a~Sb~~~sshlS~ooe.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER RESOLUTION 99-XX "'I IV N E SO't ~ ESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR PROJECT 99-13 NORTH SHORE OAKS 1ST ADDITION SANITARY SEWER AND WATER SERVICE IMPROVEMENTS MOTION BY: SECOND BY WHEREAS, bids have been received and costs have been determined for the improvement of North Shore Oaks 1st Addition Sanitary Sewer and Water Service, Project 99-13, and the contract price for such improvements is $59,465.54, the expenses incurred in the making of such improvements amount to $17,839.66 and the trunk acreage assessement is $1Q927.44, so that the total cost of the improvements is $88,232.64. 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 $0.00 and the portion of the cost to be assessed against the benefited property owners is declared to be $88,232.64. 2. Assessments shall be payable on an equal principal installment method extending over a period of 5 years for trunk acreage assessment and 20 years for sanitary sewer and water 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. Passed and adopted this 7th day of September, 1999. YES NO Mader Mader Kedrowski Kedrowski Petersen Petersen Schenck Schenck Wuellner Wuellner {Seal} Frank Boyles City Manager 1Bmbf~~ss~~~ooe.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER <j, ~...~....,' , " .. .' ....... ........., ' .. .,' "...... '" '.~ ',;;~,,,,"'I..". ,. ';e If' RESOLUTION 99-XX 4rllVNESO't~ ESOLUTION ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR PROJECT 99.11 CANDY COVE/LAKESIDE MANOR IMPROVEMENTS MOTION: SECOND: WHEREAS, by a resolution passed by the Council on September 7, 1999, the City Manager was directed to prepare a proposed assessment of the cost of improvements for Project 99-11 Candy Cove/Lakeside Manor 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 4th day of October, 1999, 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. Passed and adopted this 7th day of September, 1999 YES NO Mader Mader Kedrowski Kedrowski Petersen Petersen Schenck Schenck Wuellner Wuellner {Seal} Frank Boyles City Manager 1~~~~~~WvQ99.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER RESOLUTION 99-XX MOTION: SECOND: WHEREAS, by a resolution passed by the Council on September 7, 1999, the City Manager was directed to prepare a proposed assessment of the cost of improvements for Project 99-13. North Shore Oaks 1 st Addition Sanitary Sewer And Water Service 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 4th day of October, 1999, 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. Passed and adopted this 7th day of September, 1999 YES NO Mader Mader Kedrowski Kedrowski Petersen Petersen Schenck Schenck Wuellner Wuellner {Seal} Frank Boyles City Manager 1G~ab~QAttgl\~OS.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER -