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Home My WebLink About9B - Ida Circle & Highway 13 Improvements AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ADOPTING THE ASSESSMENT ROLL FOR IMPROVEMENTS ON IDA CIRCLE AND TRUNK HIGHWAY 13 (CITY PROJECT #06-11) DISCUSSION: Introduction This agenda item is necessary to adopt the assessment roll on the Ida Circle and Trunk Highway 13 Improvement Project. Historv At the Assessment Hearing on December 3, 2007, the City Council received public input on the Ida Circle and Trunk Highway 13 Improvement Project. Current Circumstances The project includes storm sewer, sanitary sewer, water main, concrete curb and gutter, aggregate base, bituminous surfacing, and appurtenant work. 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. 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 set forth in Minnesota Statutes Chapter 429. If the right to appeal has been perfected within 30 days of the adoption of the assessment roll, the property owner must file their assessment appeal in District Court. No appeals were received before or at the assessment hearing. We have apprised each of the property owners of our Deferred Assessment Program. Proiect Timeline . December 3, 200 - Assessment Hearing . December 17, 2007 - Adopt Assessment Roll . January 21, 2008 - Award Bid . Spring 2008 - Start Construction ISSUES: Septic System Credit In order to allow property owners a chance to submit septic system compliance information, adoption of the assessment roll was scheduled for tonight rather than on the Assessment Hearing on December 3, 2007. Property owners must submit septic system compliance information prior to tonight's meeting to receive the additional credit on their assessment. At the time this report was prepared, one property owner had submitted a compliance certificate for their septic system. The assess.meDItJt9Hfpasrbeemcadjusted accordingly. R\CouncillAgenda Reports\2007\1217 07\lda PubliPA9~~~rl?~o~4~rr~~9:0 / Fax 952.447.4245 At the Assessment Hearing, a property owner on the project contended that the septic system credit as defined in the Orderly Annexation Agreement can be greater than the assessment for sanitary sewer. City Staff disagrees with this position as the septic system credit should only be applied to the sanitary sewer portion of the assessment. For this project the sanitary sewer assessment is $5,298.00. This is the maximum credit that can be given on this project. Conclusion At the meeting on December 3rd, 2007, the City Council agreed to allow the property owner to provide the City with additional information that supported his position. No additional information was submitted at the time this report was prepared. City Staff stand by the original position that the septic system credit should only be applied to the sanitary sewer assessment. FINANCIAL IMPACT: The City Attorney has stated the Orderly Annexation Agreement is a contract negotiated between the City and the Township and adopted by their duly elected officials. The words of the contract are clear and unambiguous, and "intent" should not be inferred to interpret the agreement. If the agreement intended to provide that a surplus septic system credit should be applied towards other assessments, then the Orderly Annexation Agreement would have set out that provision. It is not appropriate to interpret intent when the agreement is totally silent on the proposed interpretation. 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* $190,271.00 PROJECT LEVY* $104,490.00 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 $14,673.00. ALTERNATIVES: The alternatives are as follows: 1. Approve a resolution adopting the assessment roll as submitted. 2. Approve a resolution subject to Council approved changes. 3. Direct the Special Assessment Review Committee to examine issues or and provide a recommendation for Council action at a future meeting. RECOMMENDED MOTION: Reviewed by: RICouncillAgenda Reports\200 2 17 07\lda Public Assessment Roll Agenda.doc 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 the Ida Circle Reconstruction Project. 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. Such proposed assessment, 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. 3. Such assessments shall be payable on an equal principal method extending over a period of ten (10) years for paving, twenty (20) years for sanitary sewer and twenty (20) for watermain. The first installment shall be the annual principal plus interest calculated from June 1 st, 2008 to the end of this year plus twelve months of the next year and shall bear interest at the rate of six (6) percent per annum from the date of June 1St, 2008. To the first installment shall be added seventy-five (214) days of interest on the entire assessment from the date of June 1st 2008 to December 31, 2008. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 4. 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 before June 1 s, 2008, 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. 5. The Finance Director shall forthwith transmit a certified duplicate 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. 6. The portion of the cost of such improvements to be paid by the City is hereby declared to be $125,987.00, and the portion of the cost to be assessed against benefited property owners is declared to be $190,271.00. PASSED AND ADOPTED THIS 17th DAY OF DECEMBER, 2007. YES NO Haugen Haugen Erickson Erickson Hedberg Hedberg LeMair LeMair Millar Millar Frank Boyles, City Manager www.cityofpriorlake.com R:\Council\Agenda Reports\2007\1217 q;~~~~l!Jtf1I:geeo / Fax 952.447.4245