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HomeMy WebLinkAboutItem 07Date: 2 May 2013 Item No. RESOLUTION ADOPTING ASSESSMENTS FOR CITY IMPROVEMENT PROJECT 13 -02 PORTIONS OF DONNAY'S COLLEGE PARK, DONNAY'S VALLEY PARK, DONNAY'S VALLEY PARK 2" ADDITION, DONNAY'S VALLEY PARK 6TH ADDITION, SOUTHBLUFF, CLAY'S ACRES, DODD TERRACE AND THE MEADOWS Proposed Action Staff recommends adoption of the following motion: Motion to approve the attached resolution adopting assessments for City Project 13 -02 Overview Based on the low bid prices received, the total cost for this project is expected to be $7,419,734.00 as compared to $8,508,000 presented in the feasibility report. The total cost to be specially assessed to the affected property owners is $2,089,795.00. The single family unit assessment rates are as follows: Valley Park $3,235.84 204 ' Street $5,470.46 Clay's Acres with existing concrete curb and gutter $5,084.00 Clay's Acres without existing concrete curb and gutter $6,040.04 Staff has received approximately 8 phone calls concerning this assessment and the hearing. The majority have called with questions regarding prepayment or deferment of their assessment. Primary Issues to Consider • 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 SupRortin8 Information • Tables comparing costs, financing, and proposed assessments are attached. Christop r etree Public VV6& Director Financial Impact: $7,419,734.00 Budgeted: Related Documents (CIP, ERR 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 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). s Project Costs: Feasibility Report vs. Bid Results Feasibility Report City of Lakeville CIP Funds Special Assessments Water Operating Fund Sanitary Sewer Fund MCES I & I Grant Total $ 3,245,950 $ 2,611,600 $ 2,522,150 $ 128,300 $ 8,508,000 Bid Results $ 2,731,210 $ 2,089,795 $ 2,431,976 $ 98,151 $ 68,602 $ 7,419,734 Reduction -15.9% - 20.0% -3.6% -23.5% N/A -12.8% 2 • Special Assessments: Terms and conditions • Interestrate: 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 Reduction -25.5% - 10.46% N/A - 14.46% Feasibilty Bid Results Report Single Family Assessment Rate (Valley Park) $ 4,343.95 $ 3,235.84 Single Family Assessment Rate (Clay's Acres) $ 6,745.70 $ 6,040.04 Single Family Assessment Rate (Isle Avenue CDS) N/A $ 5,084.00 Single Family Assessment Rate (204th Street) $ 6,395.27 $ 5,470.46 Reduction -25.5% - 10.46% N/A - 14.46% CITY OF LAKEVILLE RESOLUTION NO. RESOLUTION ADOPTING ASSESSMENTS FOR CITY IMPROVEMENT PROJECT 13 -02 PORTIONS OF DONNAY'S COLLEGE PARK, DONNAY'S VALLEY PARK, DONNAY'S VALLEY PARK 2ND ADDITION, DONNAY'S VALLEY PARK 6TH ADDITION, SOUTHBLUFF, CLAY'S ACRES, DODD TERRACE AND THE MEADOWS WHEREAS, pursuant to proper notice duly given as required by law, the Council has met, heard and passed upon all objections to the proposed assessment for Portions of Donnay's College Park, Donnay's Valley Park, Donnay's Valley Park 2nd Addition, Donnay's Valley Park 6th Addition, Southbluff, Clay's Acres, Dodd Terrace and The Meadows. NOW, THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota: 1. Such proposed assessment 1304 in the amount of $2,089,795.00, a copy of which is attached hereto and made a 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. 2. Such assessments shall be considered payable in equal annual principal installments over a period of twenty (20) years, the first of the installments to be payable on or before the first Monday in January 2014, and shall bear interest at the rate of 3.3% percent per annum. To the first installment shall be added interest on the entire assessment from January 1, 2014 until December 31, 2014. To each subsequent installment when due shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to December 31, 2013, pay the assessment on such property in whole or in part without interest to the City of Lakeville. Thereafter, in 2014 and future years, property owners may pay to the City of Lakeville or Dakota County the entire amount of the assessment remaining unpaid. Such payment must be made before November 15 of the year in which such payment is made, or interest will be charged through December 31 of the succeeding year. 4 4. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the proper tax lists of the county, and such assessments shall be collected and paid over in the same manner as other municipal taxes. DATED this 6th day of May 2013. CITY OF LAKEVILLE Matt Little, Mayor ATTEST: Charlene Friedges, City Clerk 5