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Date: 13 March 2014
Item No.
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR
CITY IMPROVEMENT PROJECT 14 -02
Proposed Action
Staff recommends adoption of the following motion: Move to approve the attached
resolution calling a public hearing on proposed assessments for City Improvement Project 14-
02.
Approval of the resolution will result in a special assessment public hearing for City
Improvement Project 14 -02.
Overview
At its November 18, 2013 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 7, 2014. Based on the low bid prices received, the
total cost for this project is expected to be $9,229,969. 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 comparing costs, financing, and proposed assessments are attached.
Christop r J. Petree
Public Works Director
Financial Impact: $9,229,969.00 Budgeted: Yes Source: 429 Bonds & Utility Funds
Related Documents (CIP, ERP, etc.):
Notes:
Primary Issues to Consider
• Project Costs: Total
Total
Street Contract $ 7,185,633
Engineering $ 1,109,559
Debt Issuance $ 55,500
Other $ 879,277
Total Project Costs $ 9,229,969
• Project Costs: Financing
City of Lakeville share of cost for street and storm sewer improvements ($4,155,353)
will be financed with debt; the principal and interest payments, will be repaid with
property taxes levied over a ten year period commencing in 2015. The water main
improvements ($2,490,526) will be financed from the Water Operating Fund. The
sanitary sewer improvements will be funded by the Sanitary Sewer Operating Fund
($48,571).
• Project Costs: Feasibility Report vs. Bid Results
Total
City of
Special
Report
Lakeville
Assessed
Street & Storm Sewer Improvements
$
6,690,872
$ 4,155,353
$ 2,535,519
Sanitary Sewer Repairs
$
48,571
48,571
3,055,350
Watermain Replacement
$
2,490,526
$ 2,490,526
$
Total
$
9,229,969
$ 6,694,450
$ 2,535,519
City of Lakeville share of cost for street and storm sewer improvements ($4,155,353)
will be financed with debt; the principal and interest payments, will be repaid with
property taxes levied over a ten year period commencing in 2015. The water main
improvements ($2,490,526) will be financed from the Water Operating Fund. The
sanitary sewer improvements will be funded by the Sanitary Sewer Operating Fund
($48,571).
• Project Costs: Feasibility Report vs. Bid Results
2
Feasibility
Bid Results
Reduction
Report
Property Taxes
$
5,147,080
$
4,155,353
-19.3%
Special Assessments
$
3,055,350
$
2,535,519
-17.0%
Water Operating Fund
$
1,948,990
$
2,490,526
27.8%
Sanitary Sewer Fund
$
84,630
$
48,571
-42.6%
Total
$ 10,236,050
$
9,229,969
-9.8%
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• Special Assessments: Terms and Conditions
• Interest rate: 3.65%
• Term: 20 years
• First payment due with taxes payable 2015
• Senior Citizen deferments are available for those who qualify.
• Special Assessments: Feasibility Report vs. Bid Results
Bid Results
$ 1,514.58
$ 695.88
$ 1,134.50
Reduction
-15.3%
-32.3%
- 35.77%
- 41.04%
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Feasibilty
Report
SF Assessment Rate (Reconstruction)
$ 4,471.51
TH Assessment Rate (Sunrise Village - Reconstruction)
$ 2,235.76
TH Assessment Rate (Niakwa Village 2nd)
$ 1,083.48
SF Assessment Rate (Cedar Highlands)
$ 1,924.26
Bid Results
$ 1,514.58
$ 695.88
$ 1,134.50
Reduction
-15.3%
-32.3%
- 35.77%
- 41.04%
3
CITY OF LAKEVILLE
RESOLUTION NO.
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS
FOR CITY IMPROVEMENT PROJECT 14 -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 14 -02 within portions of Cedar
Highlands First Addition, Cedar Highlands 5th Addition, Dodd Pointe 1St Addition, Dodd
Pointe 2 Addition, Dodd Pointe 3rd Addition, Donnay's Valley Park 3r Donnay's Valley
Park 5t 11 , Donnay's Valley Park 7t Donnay's Valley Park 8 Niakwa Village 2 nd Addition
and Sunrise Village, City Improvement Project 14 -02; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lakeville,
Minnesota:
1. A hearing shall be held on Monday, April 21, 2014 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 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 of Lakeville, except that no
interest shall be charged if the entire assessment is paid within 30 days from the adoption
of the assessment. The property owner may at any time thereafter, pay to the City of
Lakeville the entire amount of the assessment remaining unpaid, with interest accrued to
December 31 of the year in which such payment is made. Such payment must be made
before December 20 or interest will be charged through December 31 of the succeeding
year.
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APPROVED AND ADOPTED this 17 day of March, 2014.
CITY OF LAKEVILLE
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk