HomeMy WebLinkAboutItem 10
Date: 21 March 2016 Item No.
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR CITY
IMPROVEMENT PROJECT 16-02
Proposed Action
Staff recommends adoption of the following motion: Motion to approve a resolution calling a
public hearing on proposed assessments for City Improvement Project 16-02: 2016 Street
Reconstruction.
Overview
At its November 16, 2015 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.
One bid for the project was received on March 4, 2016. City staff and the City’s engineering
consultant reached out to area contractors to inquire as to why they had not bid. Several of the
contractors cited difficulties finding subcontractors to work on the project due to the high
volume of work available in the market and other existing project commitments already under
contract from 2015. Based on the low bid prices received, the total cost for this project is
expected to be $12,105,408. This amount is $827,852 less than what was presented in the
feasibility report, resulting in a nominal reduction to most of the special assessment amounts that
were estimated last fall.
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.
________________________
Monica Heil, PE
Operations and Maintenance Engineer
Financial Impact: $12,105,408 Budgeted: Yes Source: 429 Bonds & Utility Funds
Related Documents (CIP, ERP, etc.):
Community Values: Good Value for Public Services
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Primary Issues to Consider
• Project Costs: Total
Total
Street Contract 9,442,610$
Engineering 1,069,677$
Debt Issuance 594,881$
Other 998,240$
Total Project Costs 12,105,408$
• Project Costs: Financing
Total City of
Lakeville
Special
Assessed
Street & Storm Sewer Improvements 8,720,110$ 5,701,698$ 3,018,412$
Regional Storm Sewer Improvements 73,647$ 73,647$
Sanitary Sewer Repairs 246,554$ 246,554 -$
Watermain Rehabilitation 3,065,097$ 3,065,097$ -
Total 12,105,408$ 9,086,996$ 3,018,412$
City of Lakeville share of cost for street and storm sewer improvements
($5,701,698) will be financed with debt; the principal and interest payments
will be repaid with property tax levies commencing in 2017. The 2016
property tax levy included $50,000 to be used to fund a portion of the City’s
share of the street and storm sewer improvements, thus reducing the amount
of debt to be issued. The water main improvements ($3,065,097) will be
financed with debt; the principal and interest payments will be repaid with
Water Operating Fund user fees. Regional storm sewer improvements will be
funded using Storm Sewer Trunk Funds ($73,647). The sanitary sewer
improvements will be funded by the Sanitary Sewer Operating Fund
($246,554).
• Project Costs: Feasibility Report vs. Bid Results
Feasibility
Report Bid Results Reduction
Property Taxes 6,035,300$ 5,701,698$ -5.5%
Special Assessments 3,346,550$ 3,018,412$ -9.8%
Water Operating Fund 3,199,500$ 3,065,097$ -4.2%
Storm Sewer Trunk Fund -$ 73,647$
Sanitary Sewer Operating Fund 351,910$ 246,554$ -29.9%
Total 12,933,260$ 12,105,408$ -6.4%
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• Special Assessments: Terms and Conditions
• Interest rate: 4.5%
• Term: 20-years
• First payment due with taxes payable 2017.
• Senior Citizen deferments are available for those who qualify.
• Special Assessments: Feasibility Report vs. Bid Results
Feasibilty
Report Bid Results Reduction
Area A (F ront Foot)130.61$ 126.26$ -3.33%
Area B (F ront Foot)144.36$ 108.88$ -24.58%
Area C (P er Parcel)132,519.47$ 132,967.42$ 0.34%
Area D (Per Parcel)67,980.10$ 73,245.04$ 7.74%
Area E (Per Single Family Unit)4,033.95$ 3,725.30$ -7.65%
Area F (Per Single Family Unit)4,029.14$ 3,826.72$ -5.02%
Area G (Per Single Family Unit)2,573.05$ 2,540.24$ -1.28%
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CITY OF LAKEVILLE
RESOLUTION NO._________
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR
CITY IMPROVEMENT PROJECT 16-02
WHEREAS, pursuant to the direction of the City Council, the City Clerk has
prepared a proposed assessment roll on the cost of Improvement Project 16-02.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lakeville,
Minnesota:
1. A hearing shall be held on Monday, April 18, 2016 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 on or before November 15, 2016.
The first year installment payments will include interest accrued from November 16 –
December 31, 2017. 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 November 15 or interest will be charged through December 31 of the succeeding
year.
ADOPTED by the Lakeville City Council this 21st day of March, 2016
CITY OF LAKEVILLE
_________________________________
Matt Little, Mayor
ATTEST:
_____________________________
Charlene Friedges, City Clerk