HomeMy WebLinkAbout8B - Ida Circle - Project. #06-11
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
December 3,2007
8B
LARRY POPPLER, ASSISTANT CITY ENGINEER
SPECIAL ASSESSMENT PUBLIC HEARING FOR IMPROVEMENTS ON IDA
CIRCLE AND TRUNK HIGHWAY 13 (CITY PROJECT #06-11)
AGENDA ITEM:
DISCUSSION:
Introduction
This agenda item is necessary to receive public input on 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. At the
November 5, 2007 City Council meeting the City Council declared the costs to be
assessed and scheduled the Assessment Hearing for December 3, 2007.
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% or
$85,000 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.
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All benefiting property owners have been mailed a Statement of Special
Assessments, which included information pertinent to their property such as the
total proposed assessment amount and the assessment rate. The Notice of the
Special Assessment Hearing was published in the newspaper on November 10,
17, and 24, 2007.
Under state statute, the City may only assess a property up to the amount the
property is specially benefited by the public improvement. Special benefit is
defined as the difference between fair market value before and after the project.
The Property owners who believe that the proposed assessment exceeds the
special benefit 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 the Council at the
Hearing on December 3, 2007. Within 30 days of the hearing, the owner must
also file the appeal in District Court. No appeals were received at the time this
report was prepared. We have apprised each of the property owners of our
Deferred Assessment Program.
ISSUES:
The Assessment Review Committee met on August 9, 2007 at which time the
following issues were discussed and recommendations made:
SlfeetReconslfuction
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 10-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.
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Proiect Timeline
. November 28, 2007 - Neighborhood Informational Meeting
. December 3,2001- Assessment Hearing
. December 17, 2007 - Adopt Assessment Roll
. January 21,2008 - Award Bid
. Spring 2008 - Start Construction
In order to allow property owners a chance to submit septic system compliance
information, adoption of the assessment roll is scheduled for December 17,
2007. Property owners must submit septic system compliance information prior
to December 17, 2007 to receive the additional credit on their assessment.
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 assessment term is ten (10) years for paving and twenty (20) years for
utilities. Added to the first installment (2009) will be an additional 214 days of
interest, which accounts for the interest accrued starting on June 1, 2008 for the
remainder of 2008. An interest rate of 6% will be charged in accordance with the
City Assessment Policy. Upon adoption of the assessment roll, property owners
may prepay the assessment until June 1, 2008, at which time it will be applied to
the property tax statement.
The focus of tonight's hearing is whether the affected properties have received
special benefit equivalent to the proposed assessment for each property, and
whether the assessment has been calculated accurately and in accordance with
City Assessment Policy.
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* $191,069.00
PROJECT LEVY* $103,692.00
SEWER AND WATER FUND* $21,497.00
TOTAL PROJECT COST* $316.258.00
* Includes Indirect Costs
Also included in the tax levy are any septic system credits per the orderly
annexation agreement. Included in the above table are septic system credits in
the amount of $13,875.00. At the December 17, 2007 City Council meeting,
once all septic system compliance certificates are submitted, the project funding
table will be updated.
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The Council should open the Public Assessment Hearing, receive public input
and then close the Public Assessment Hearing. If certain issues need additional
study, those issues could be referred to the Assessment Review Committee for
evaluation and recommendation.
ALTERNATIVES: The alternatives are as follows:
1. Conduct and close the Special Assessment Hearing and direct that this
matter be scheduled for City Council consideration at the December 17, 2007
meeting.
2. Defer this item until a future date.
RECOMMENDED Alternative #1
MOTION:
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