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Home My WebLink About9C - Assessment Roll & Hearing - CR 12 Project MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: ISSUES: 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 CITY COUNCIL AGENDA REPORT SEPTEMBER 17, 2007 9C LARRY POPPLER, ASSISTANT CITY ENGINEER CONSIDER APPROVAL OF A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF AN ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR THE COUNTY ROAD 12 RECONSTRUCTION PROJECT FROM TRUNK HIGHWAY 13 TO PHEASANT MEADOW LANE. Introduction This agenda item is necessary to set an Assessment Hearing and the amount to be assessed for the County Road 12 Reconstruction Project from Trunk Highway 13 to Pheasant Meadow Lane. Historv The County Road 12 Reconstruction Project from Trunk Highway 13 to Pheasant Meadow Lane (Project #04-02) was included in the 2007 Capital Improvement Program and has received numerous City Council approvals to date. At the April 16, 2007 Council Meeting, the Council ordered the improvements for the improvement project. Project #04-02 includes sanitary sewer, water main, storm sewer and street reconstruction. The County has executed a contract with Chard Excavating to construct the project. The project is planned to be substantially complete by November 15, 2007. Current Circumstances The Special Assessment Committee recommends using the unit method of assessment due to the fact that the properties are relatively the same size. Because of the similarity in value of the structures and parcel size, the benefit to each parcel is anticipated to be consistent. The Assessment Review Committee believes the increase in fair market value before and after the project will support the unit method. The City Council should confirm which assessment method should be applied. Since the special assessment hearing date is proposed for October 15, individual property owner notices must be sent to the property owners by October 1. The amount to be assessed must be included in the mailed notice. The Assessment Review Committee met on February 5, 2007 at which time the following issues were discussed and recommendations made: Street and Storm Sewer Reconstruction Pursuant to the assessment policy, the street and storm sewer reconstruction should be assessed at up to 40% of the total project cost against the nine benefiting properties, based upon the special benefit created for each such property. www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 Assessment Method The Assessment Review Committee recommends the unit method of assessment for County Road 12 due to the fact that the lots in the project area are of similar size and/or value. The estimated assessment rate is proposed at $6,107/unit. Trail Construction Trail construction is funded through the Capital Park Fund. FINANCIAL IMPACT: The total project City cost for Project #04-02 is $1,013,718.00. This cost is proposed to be funded through tax levy, enterprise fund, water quality fund, capital parks fund, streets operating budget, and special assessments. Of the total City project costs, $958,751.00 or 95%, will be paid through sources other than special assessment. The proposed amount to be assessed against the benefiting properties is $54,967.00. There are nine benefiting units that are being assessed at a 40% rate. Based on the foregoing, the proposed assessment rate is $6,107.00 per unit. This is the same assessment rate that was presented in the Feasibility Report and at the Public Hearing. At this point the dollar value of the original estimate is still valid as the project is not yet complete and the final costs are not yet determined. It is anticipated that the assessable portion of this project will not fluctuate to any great extent. Staff recommends that the City Council declare the costs to be assessed, order preparation of the assessment roll, and establish the Assessment Hearing date as October 15, 2007 for the County Road 12 Reconstruction Project from Trunk Highway 13 to Pheasant Meadow Lane Improvement project and authorize the required notice of public hearing to be publiShed as per the attached resolutions. These improvements will be financed through the Street Oversize Fund, Capital Park Fund, Utility Fund, Trunk Reserve Fund, and Water Quality Funds as approved by City Council Resolution 07-146 approving the cost participation with Scott County. ALTERNATIVES: The alternatives are as follows: 1. Approve a Resolution declaring the costs to be assessed, ordering the preparation of the proposed assessment rolls for the County Road 12 Reconstruction Project from Trunk Highway 13 to Pheasant Meadow Lane City Project #04-02 and establishing October 15, 2007 for the assessment hearing date and authorizing publication of the Assessment Hearing date. 2. Deny the Resolutions for a specific reason and provide staff with direction. 3. Table this item for a specific reason. RECOMMENDED Alternative # 1 MOTION: 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372-1714 RESOLUTION 07- xx A RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE COUNTY ROAD 12 RECONSTRUCTION PROJECT FROM TRUNK HIGHWAY 13 TO PHEASANT MEADOW LANE AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF Motion By: Second By: WHEREAS, a contract has been let and costs have been determined for the improvement of County Road 12 from Trunk Highway 13 to Pheasant Meadow Lane, Project 04- 02, the City cost for the improvements are $1,013,718.00; and WHEREAS, the City Manager notifies the City Council that such proposed assessment will be completed and filed in the City Manager's office for public inspection. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The portion of the cost of such improvements to be paid by the City is hereby declared to be $1,013,718.00, and the portion of the cost to be assessed against benefited property owners is declared to be $54,967.00. 3. 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 6% per annum from the date of the adoption of the assessment resolution. 4. 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 shall file a copy of such proposed assessment in the office of the City Manager for public inspection. 5. The City Manager shall upon the completion of such proposed assessment notify the City Council thereof. 6. A public hearing shall be held on the 15th day of October, 2007, in City Council Chambers at 6:00 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. 7. The City Manager is hereby directed to cause a notice of the public hearing on the proposed assessment to be published once in the official newspaper of the City at least two weeks prior to the hearing, and the City Manager 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. 8. 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 R:\Council\Agenda Reports\2007\0917 07\Assess cR~~~ake.com Phone 952.447.4230 / Fax 952.447.4245 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. The owner 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 1ih DAY OF SEPTEMBER, 2007. Haugen Haugen Erickson Erickson Hedberg Hedberg LeMair LeMair Millar Millar YES NO Frank Boyles, City Manager R:\Council\Agenda Reports\2007\09 17 07\Assess CR 12 resolution.DOC