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Home My WebLink About9D - Ida Circle & Highway 13 Assessment Roll MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT November 5, 2007 9D LARRY POPPLER, ASSISTANT CITY ENGINEER CONSIDER APPROVAL OF A RESOLUTION DECLARING THE COSTS TO BE ASSESSED, ORDERING PREPARATION OF AN ASSESSMENT ROLL AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING FOR IMPROVEMENTS ON IDA CIRCLE AND TRUNK HIGHWAY 13 (CITY PROJECT #06-11) Introduction This agenda item is necessary to set an Assessment Hearing and the amount to be assessed for the Ida Circle and Trunk Highway 13 Improvement Project. Historv Ida Circle was annexed into the City of Prior Lake in 2004 as part of the Orderly Annexation Agreement. On September 30, 2005, a petition containing seven of nine households was received by the City. The petition specifically requests the City extend and install sanitary sewer and watermain improvements to serve properties on Ida Circle. Properties on TH 13 were not part of the petition. Resolution 07-089 ordering preparation of plans and specifications for the project was approved by the City Council on May 7, 2007. A public informational meeting was held on March 14, 2007, to provide affected property owners an opportunity to discuss the project. A Public Hearing was conducted on May 7, 2007. A second open house meeting was held on July 12, 2007. City staff was in attendance at all three meetings to answer questions from the public. On August 20, 2007 the City Council authorized the advertisement for bids on this project. On October 10, 2007 the City received bids for this project. Current Circumstances The project includes storm sewer, sanitary sewer, water main, concrete curb and gutter, aggregate base, bituminous surfacing, and appurtenant work. The construction of this project is proposed to be funded through assessments, tax levy, and Trunk Sewer and Water Fund. The City received bids from 12 different contractors. The lowest bid was 25% below the engineer's estimate. Dividing the lowest bid among the impacted properties results in a per-unit cost of $11,159.00 for utilities and $6,653.00 for street and storm sewer. This means that the cost for property owners on Ida Circle would be $17,812.00 and the cost for property owners on TH 13 would be $11,159.00. Assessments resulting from the project will not be applied to the property taxes until 2009. www.cityofpriorlake.com R:\Council\Agenda Reports\2007\11 05 07\Ida Ft'61-M~~4<2f' .!l9~ffi)edreffl~~.2f~.!ij.~!lf5a report. doc ISSUES: The Assessment Review Committee met on August 9, 2007, at which time the following issues were discussed and recommendations made: SlfeetReconSlfucffon The Assessment Review Committee recommends that the costs relating to the reconstruction of street and storm sewer be assessed to properties on Ida Circle. Reconstruction of the street does not provide special benefit to properties located on Trunk Highway 13. Consistent with the City's Special Assessment Policy, the Assessment Review Committee recommends assessing 40% for all costs associated with the street and storm sewer improvements, The remaining 60% will be paid from the general tax levy. Septic system credits, which were part of the orderly annexation agreement, will also be paid through the tax levy. The amount of the credit is dependent on the age and compliance with existing standards as outlined in the agreement. The assessment for the street and storm sewer improvements will be repaid over a 1 a-year period. The Committee also recommends 100% assessment for sanitary sewer and waterman improvements. The assessment for the sanitary and watermain improvements will be repaid over a 20-year period. In summary, Ida Circle residences will be assessed 40% of the street and storm sewer improvements and 100% for sanitary sewer and watermain improvements per unit. TH 13 residences will be assessed 100% for sanitary sewer and watermain improvements per unit. Assessment Method The Assessment Review Committee recommends the unit method of assessment for Ida Circle and TH 13 due to the fact that the lots in the project area are of similar size and/or value. Street and storm sewer improvements are proposed to be assessed to the nine units on Ida Circle, Sanitary sewer and watermain improvement costs will be assessed based on 13 units. The assessment rate does not include connection charges of approximately $4,605/unit. This charge will be due when each property connects onto the City's system. Proiect Time/ine . November 28,2007 - Neighborhood Informational Meeting . December 3,2007 - Assessment Hearing . January 7, 2007 - Adopt Assessment Roll and Award Bid . Spring 2008 - Start Construction Conclusion The Assessment Review Committee believes the increase in fair market value resulting from the project will support the unit method and the assessment amounts. The City Council should confirm which assessment method should be applied. Since the special Assessment Hearing date is proposed for December 3, 2007, individual property owner notices must be sent to the property owners by November 10, 2007. The amount to be assessed must be included in the mailed notice. R:\Council\Agenda Reports\2007\11 05 07\Ida Circle declaring costs and schedule assessment hearing agenda report. doc 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 December 3,2007 for the Ida Circle and Trunk Highway 13 Improvement project and authorize the required notice of public hearing to be published as per the attached resolutions. FINANCIAL IMPACT: The property owners are proposed to be assessed 100% for all costs associated with the proposed sanitary sewer and watermain improvements. The City will use the Sewer and Water Fund to fund oversizing of the watermain on TH 13. Ida Circle properties will be assessed 40% of the street and storm sewer improvements on Ida Circle. The remaining 60% will be paid through the tax levy. PROJECT FUNDING TABLE PROJECT ASSESSMENT* $204,944.00 PROJECT LEVY* $89,817.00 SEWER AND WATER FUND* $21,497.00 TOTAL PROJECT COST* $316.258.00 * Includes Indirect Costs Also included in the tax levy will be any septic system credits per the orderly annexation agreement. 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 Ida Circle and Trunk Highway 13 Improvement Project City Project #06-11 and establishing December 3, 2007 for the Assessment Hearing date and authorizing publication of the Assessment Hearing date, 2. Deny this item for a specific reason and provide staff with direction. 3. Defer this item until a future date. RECOMMENDED Alternative #1 MOTION: Revi R:\Council\Agenda Reports\2007\11 05 07\Ida Circle declaring costs and schedule assessment hearing agenda report. doc 4646 Dakota Street 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 IDA CIRCLE AND TRUNK HIGHWAY 13 RECONSTRUCTION PROJECT AND ESTABLISHING THE DATE OF THE ASSESSMENT HEARING AND PUBLICATION THEREOF Motion By: Second By: WHEREAS, costs have been determined for the improvement of Ida Circle and Trunk Highway 13, Project 06-11, the City cost for the improvements are $316,258.00; 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 $316,258.00, and the portion of the cost to be assessed against benefited property owners is declared to be $204,944.00. 3. Assessments shall be payable on an equal principal installment method extending over a period of 10 years for street improvements and 20 years for utility improvements The first installment shall be the annual principal plus interest calculated from the June 1, 2008 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 3rd day of December, 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 interest accrued to the date of payment, to the City Finance Director, except that no interest will R:\Council\Agenda Reports\2007\11 05 07\Assess Ida reso~tyofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 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 5TH DAY OF NOVEMBER, 2007. Haugen Haugen Erickson Erickson Hedberg Hedberg LeMair LeMair Millar Millar YES NO Frank Boyles, City Manager R:\Council\Agenda Reports\2007\11 05 07\Assess Ida resolution. DOC FINAL ASSESSMENT ROLL DESCRIPTION: ASSESSMENT HEARING DATE: PROJECT #06-11, IDA CIRCLE SANITARY SEWER & WATER IMPROVEMENTS December 3, 2007 ASSESSMENT ROLL CERTIFICATION DATE: ASSESSMENT UNIT RATE (UTILITIES): ASSESSMENT UNIT RATE (STREET & STORM SEWER): ASSESSMENT CODE: INTEREST RATE: TERM: Se tember 1, 2008 $11,159.00 INITIAL YEAR: ADDITIONAL INTEREST: PAYMENT METHOD: $6,653.00 111 6% UTILITIES - 20 YEARS STREETS - 10 YEARS 2009 214 DAYS EQUAL PRINCIPAL DANIEL & KATHLEEN BORCHARDT 17195 LANGFORD BLVD L 1 B1 STARK ADD'N - ANNEXED 17195 LANGFORD BLVD 254230010 PRIOR LAKE MN 55372 $11,159.00 ROBERT C & BETH A DAHL 17169 IDA CIR SW 2 L2 B1 CRYSTAL ADD'N - ANNEXED 17169 IDA CIR SW 254220020 PRIOR LAKE MN 55372 $17,612.00 LEONARD P PAWLAK 17176 IDA CIR SW 3 L7 B1 CRYSTAL ADDN - ANNEXED 17176 IDA CIR SW 254220070 PRIOR LAKE MN 55372 $17,612.00 RICHARD E & MARILYN KES 17177 IDA CIR SW 4 L6 B1 CRYSTAL ADD'N - ANNEXED 17177 IDA CIR SW 254220060 PRIOR LAKE MN 55372 $17,612.00 PAMELA D CHAMBERS 17175 IDA CIR SW 5 L5 B1 CRYSTAL ADD'N - ANNEXED 17175 IDA CIR SW 254220050 PRIOR LAKE MN 55372 $17,612.00 SEC 10 TWP 114 RNG 022 1.00 AC PIO NW 1/4 NE 1/4 COM NW COR, E 578.41 S911.54, SE 90 TO POB, SE 97, ERIC A & CYNTHIA NORDIN S 242.14, 3117.77' N 271.51' NW 126.55' SW 117.75 TO 17191 LANGFORD BLVD 6 POB 17191 LANGFORD BLVD 259100160 PRIOR LAKE MN 55372 $11,159.00 DAVID G & VANESSA CRISWELL 17160 IDA CIR SW 7 L8 B1 CRYSTAL ADD'N - ANNEXED 17180 IDA CIR SW 254220060 PRIOR LAKE MN 55372 $17,612.00 C:\Documents and Setlings\cgreenlLocal Setlings\Temporary Internet Files\OLK5A~da Circle Final Assessment Roll 09107 lof2 10/3112007 FINAL ASSESSMENT ROLL RICHARD 0 & MARLENE B HANNEN 17184 IDA CIR SW 8 L9 B1 CRYSTAL ADD'N - ANNEXED 17184 IDA CIR SW 254220090 PRIOR LAKE MN 55372 $17,812.00 RILEY J RACEK % LINDSEY R GEVERS 17187 LANGFORD BLVD 9 L11 B1 CRYSTAL ADD'N -ANNEXED 17187 LANGFORD BLVD 254220110 PRIOR LAKE MN 55372 $11,159.00 JOHN P DOYLE 17186 IDA CIR SW 10 L10 B1 CRYSTAL ADD'N - ANNEXED 17186 IDA CIR SW 254220100 PRIOR LAKE MN 55372 $17,812.00 CHRISTOPHER J & MANDY J MEYER 17193 LANGFORD BLVD 11 L2 B1 STARK ADD'N - ANNEXED 17193 LANGFORD BLVD 254230020 PRIOR LAKE MN 55372 $11,159.00 RONDA J & PATRICK G FANTETTI 17171 IDA CIR SW 12 L3 B1, CRYSTAL ADD'N - ANNEXED 17171 IDA CIR SW 254220030 PRIOR LAKE MN 55372 $17,812.00 JAMES D & KATHY S FRY 17173 IDA CIR SW 13 L4 B1 CRYSTAL ADD'N - ANNEXED 17173 IDA CIR SW 254220040 PRIOR LAKE MN 55372 $17,812.00 TOTAL 13 $204,944.00 C:\Documents and Sellings\cgreenILocal SellingslTemporary Internet FileslOLK5A~da Circle Final Assessment Roll 09107 20f2 10/3112007