HomeMy WebLinkAboutItem 07r
Date: 14 March 2013
Item No.
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR
CITY IMPROVEMENT PROJECT 13 -02
Proposed Action
Staff recommends adoption of the following motion: Motion to approve the attached
resolution calling a public hearing on proposed assessments for City Improvement Project 13-
02.
Approval of the resolution will result in a special assessment public hearing for City
Improvement Project 13 -02.
Overview
At its November 19, 2012 meeting, the Lakeville City Council held a public hearing notifying
residents as to the pending assessment amount. At the conclusion of the hearing, City
Council ordered the improvement and authorized the preparation of plans and specifications.
Bids for the project were received on March 8, 2013. Based on the low bid prices received, the
total cost for this project is expected to be $ 7,419,734.00. This amount is less than what was
presented in the feasibility report, resulting in lower assessments to the benefitting property
owners.
Staff has reviewed the bids and proposed special assessments and recommends approval of
the resolution.
Primary Issues to Consider (See attached)
• Project Costs: Total
• Project Costs: Financing
• Project Costs: Feasibility Report vs. Bid Results
• Special Assessments: Terms and conditions
• Special Assessments: Feasibility Report vs. Bid Results
Supporting Information
• Tables comparin osts, financing, and proposed assessments are attached.
ristop . Petree
Public orks Director
Financial Impact: $7,419,734.00 Budgeted
Related Documents (CIP, ERP, etc.):
Notes:
Yes Source: 429 Bonds & Utility Funds
Primary Issues to Consider
• Project Costs: Total
Total
Street Contract $ 5,879,663
Engineering $ 919,251
Debt Issuance $ 78,494
Other $ 542,326
Total Project Costs $ 7,419,734
Project Costs: Financing
The City share of cost for street and storm sewer improvements will be financed
with the issuance of General Obligation Improvement Bonds. The debt will be
repaid with tax levies with even annual payments over a 10 year period; the
average debt payment and tax levy will be approximately $325,102.
The water main improvements ($2,431,976) will be financed from the Water
Operating Fund. A portion of the sanitary sewer improvements will be funded
using Inflow and Infiltration mitigation grant dollars received from the
Metropolitan Council Environmental Services ($68,602). The remaining sanitary
sewer improvements will be funded by the Sanitary Sewer Operating Fund
($98,151).
Project Costs: Feasibility Report vs. Bid Results
Feasibility Bid Results Reduction
Report
City of Lakeville CIP Funds $ 3,245,950 $ 2,731,210 -15.9%
Special Assessments $ 2,611,600 $ 2,089,795 - 20.0%
Water Operating Fund $ 2,522,150 $ 2,431,976 -3.6%
Sanitary Sewer Fund $ 128,300 $ 98,151 - 23.5%
MCES I & I Grant $ - $ 68,602 N/A
Total $ 8,508,000 $ 7,419,734 -12.8%
2
Total
City of
Special
MCES I & I
Lakeville
Assessed
Grant
Street & Storm Sewer Improvements
$
4,821,005
$ 2,731,210
$ 2,089,795
$ -
Sanitary Sewer Repairs
$
166,753
98,151
$ 68,602.00
Watermain Replacement
$
2,431,976
$ 2,431,976
$ -
Total
$
7,419,734
$ 5,261,337
$ 2,089,795
$ 68,602.00
The City share of cost for street and storm sewer improvements will be financed
with the issuance of General Obligation Improvement Bonds. The debt will be
repaid with tax levies with even annual payments over a 10 year period; the
average debt payment and tax levy will be approximately $325,102.
The water main improvements ($2,431,976) will be financed from the Water
Operating Fund. A portion of the sanitary sewer improvements will be funded
using Inflow and Infiltration mitigation grant dollars received from the
Metropolitan Council Environmental Services ($68,602). The remaining sanitary
sewer improvements will be funded by the Sanitary Sewer Operating Fund
($98,151).
Project Costs: Feasibility Report vs. Bid Results
Feasibility Bid Results Reduction
Report
City of Lakeville CIP Funds $ 3,245,950 $ 2,731,210 -15.9%
Special Assessments $ 2,611,600 $ 2,089,795 - 20.0%
Water Operating Fund $ 2,522,150 $ 2,431,976 -3.6%
Sanitary Sewer Fund $ 128,300 $ 98,151 - 23.5%
MCES I & I Grant $ - $ 68,602 N/A
Total $ 8,508,000 $ 7,419,734 -12.8%
2
• Special Assessments: Terms and conditions
• Interest rate: 3.3%
• Term: 20 years
• First payment due with taxes payable 2014
• Senior Citizen deferments are available for those who qualify.
• Special Assessments: Feasibility Report vs. Bid Results
.
3
Feasibilty
Bid Results
Reduction
Report
Single Family Assessment Rate (Valley Park)
$ 4,343.95
$
3,235:84
-25.5%
Single Family Assessment Rate (Clay's Acres)
$ 6,745.70
$
6,040.04
- 10.46%
Single Family Assessment Rate (Isle Avenue CDS)
N/A
$
5,084.00
N/A
Single Family Assessment Rate (204th Street)
$ 6,395.27
$
5,470.46
- 14.46%
.
3
CITY OF LAKEVILLE
RESOLUTION NO.
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS
FOR CITY IMPROVEMENT PROJECT 13 -02
WHEREAS, pursuant to the direction of the City Council, the City Clerk has
prepared a proposed assessment roll on the cost of Improvement Project 13 -02 within
portions of Donnay's College Park, Donnay's Valley Park, Donnay's Valley Park 2nd
Addition, Donnay's Valley Park 6d' Addition, Southbluff, Clay's Acres, Dodd Terrace and
The Meadows, City Improvement Project 13 -02;
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lakeville,
Minnesota:
1. A hearing shall be held on Monday, April 15, 2013 at the Lakeville Council
Chambers, 20195 Holyoke Avenue, at 7:00 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 an opportunity to be heard with reference to such assessment.
2. The City Clerk 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 she shall state in the notice the total cost of the improvement.
She 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 December 31,
2013, pay the assessment on such property in part or in whole without interest
APPROVED AND ADOPTED this 18 day of March, 2013.
CITY OF LAKEVILLE
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk
4