HomeMy WebLinkAboutItem 08.dDate: 15 April 2014
Item No.
RESOLUTION ADOPTING ASSESSMENTS FOR CITY IMPROVEMENT PROJECT 14-02
PORTIONS OF CEDAR HIGHLANDS FIRST ADDITION, CEDAR HIGHLANDS 5TH
ADDITION, DODD POINTE IST ADDITION, DODD POINTE 2ND ADDITION, DODD
POINTE 3RD ADDITION, DONNAY'S VALLEY PARK 3RD, DONNAY'S VALLEY PARK 5TH,
DONNAY'S VALLEY PARK 7TH, DONNAY'S VALLEY PARK 8TH, NIAKWA VILLAGE 2ND
ADDITION AND SUNRISE VILLAGE
Proposed Action
Staff recommends adoption of the following motion: Move to approve a Resolution
Adopting Assessments for City Improvement Project 14-02.
Overview
Based on the low bid prices received, the total cost for this project is expected to be
$9,229,969 as compared to $10,236,050 presented in the feasibility report. The total cost to
be specially assessed to the affected property owners is $2,535,519.
The unit assessment rates are as follows:
Single Family Reconstruction Assessment Rate $3,786.44
Townhome Assessment Rate: Sunrise Village $1,514.58
Townhome Assessment Rate: Niakwa Village $695.88
Single Family Assessment Rate: Cedar Highlands 5t" $1,134.50
Staff has received approximately 11 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 (See attached)
• Project Costs: Total, Financing, and Feasibility Report vs. Bid Results
• Special Assessments: Terms and conditions and Feasibility Report vs. Bid Results
Supporting Information
• Tables comparing costs, financing, and proposed assessments are attached.
Christo er J. Petree
Public Works Director
Financial Impact: $9,229,969.00 Budgeted: Yes Source: 429 Bonds & Utility Funds
Related Documents (CIP, ERP, etc.):
Notes:
• Project Costs: Total
Primary Issues to Consider
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 finance with debt; the principal and interest payments will be repaid with
property taxes levies 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
Feasibility
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
Water Operating Fund
Watermain Replacement
$
2,490,526
$ 2,490,526
Sanitary Sewer Fund
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 finance with debt; the principal and interest payments will be repaid with
property taxes levies 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
• 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.
is
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%
• 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.
is
• Special Assessments: Feasibility Report vs. Bid Results
Bid Results Reduction
$
Feasibilty
-15.3%
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 Reduction
$
3,786.44
-15.3%
$
1,514.58
-32.3%
$
695.88
-35.77%
$
1,134.50
-41.04%
CITY OF LAKEVILLE
RESOLUTION NO.
RESOLUTION ADOPTING ASSESSMENTS FOR
CITY IMPROVEMENT PROJECT 14-02
PORTIONS OF CEDAR HIGHLANDS FIRST ADDITION, CEDAR HIGHLANDS
5TH ADDITION, DODD POINTE IST ADDITION, DODD POINTE 2ND ADDITION,
DODD POINTE 3RD ADDITION, DONNAY'S VALLEY PARK 3RD, DONNAY'S
VALLEY PARK 5TH, DONNAY'S VALLEY PARK 7TH, DONNAY'S VALLEY PARK
8TH' NIAKWA VILLAGE 2ND ADDITION AND SUNRISE VILLAGE.
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
Cedar Highlands First Addition, Cedar Highlands 51 Addition, Dodd Pointe 11 Addition,
Dodd Pointe 2nd Addition, Dodd Pointe 31 Addition, Donnay's Valley Park 3rd, Donnay's
Valley Park 5111, Donnay's Valley Park 7th, Donnay's Valley Park 8th, Niakwa Village 2nd
Addition and Sunrise Village.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lakeville,
Minnesota:
1. Such proposed assessment No. 1312 in the amount of $2,540,819.73, 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 2015, and shall bear interest at the rate of 3.65%
percent per annum. To the first installment shall be added interest on the entire
assessment from January 1, 2015 until December 31, 2015. 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, 2014, pay the assessment on such property in whole or in part without interest to the
City of Lakeville. Thereafter, in 2015 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
RESOLUTION, CONT.
PAGE TWO
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 21St day of April 2014.
CITY OF LAKEVILLE
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk