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HomeMy WebLinkAboutItem 10 Date: June 19, 2017 Item No. RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR CITY IMPROVEMENT PROJECT 17-04 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 17-04: Holyoke Avenue Improvement Project. Overview At its March 6, 2017 meeting, the Lakeville City Council held a public hearing notifying property owners 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. Four bids for the project were received on June 2, 2017, and ranged from a low bid of $1,946,766.70 to $2,859,603.50. Based on the low bid prices received for the street reconstruction, the total cost for this project is expected to be $2,913,317.00. Approval of the resolution will result in a special assessment public hearing for City Improvement Project 17-04. 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: 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. Financial Impact: $2,913,317 Budgeted: Yes Source: Misc. Funds Related Documents (CIP, ERP, etc.): CIP and 2017 Adopted Budget Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Chris Petree, Public Works Director Primary Issues to Consider • Project Costs: Total Total Street Contract 1,946,767$ Other Construction Costs 398,074$ Engineering 222,748$ Debt Issuance 88,000$ Other 257,728$ Total Project Costs 2,913,317$ • Project Costs: Feasibility Report vs. Bid Results Feasibility Report Bid Results Change Property Taxes 1,137,756$ 1,291,583$ 11.9% Special Assessments - Streets 593,845$ 507,146$ -17.1% Special Assessments - Signage 16,660$ 10,614$ -57.0% Street Light Operating Fund 456,800$ 400,000$ -14.2% Communications Fund 78,144$ 98,103$ 20.3% Pavement Management Fund -$ 37,759$ 100.0% Building Fund -$ 94,966$ 100.0% Dakota County CDA TIF 65,000$ 65,000$ 0.0% Dakota Cty. Redevelopment Incentive Grant -$ 250,000$ 100.0% City of Lakeville TIF District No. 3 -$ 158,146$ 100.0% Total 2,348,205$ 2,913,317$ 24.1% • Post feasibility report, the City of Lakeville was awarded a Dakota County Redevelopment Incentive Grant (RIG) for $250,000, which was applied to both the specially assessed portion and the City’s share of the streetscape improvements between 207th Street and 210th Street. • The City also identified $158,146 in City of Lakeville TIF District No. 3 funds available for the project. TIF District No. 3 was decertified on December 31, 2014, and funds were eligible for use with the streetscape improvements between 207th Street and 210th Street. The $158,146.67 in TIF District No. 3 were allocated to both the specially assessed portion and the City’s share of the improvements. • Sidewalk replacement along the south side of the Market Plaza parking lot was bid with the project, but will be funded wholly using City of Lakeville Pavement Management Funds ($37,759). • The Art Center Parking Lot was programmed for improvements within the City’s 2017 CIP. The Arts Center Parking Lot Improvements were bid with the Holyoke Avenue Improvement Project, but will be funded wholly using City Building Funds ($94,966). • The city share of cost for street, storm sewer, and streetlight improvements will be financed with debt. • Special Assessments: Terms and Conditions • Interest rate: 5.0% • Term: 10-years • First payment due with taxes payable 2018. • Senior Citizen deferments are available for those who qualify. • Special Assessments: Feasibility Report vs. Bid Results Feasibilty Report Bid Results*Change SF Unit Rate (202nd St. - 207th St.)1,948.64$ 1,967.00$ 0.94% FF Rate Street Improvements (U. 206th St. - 210th St.)155.53 135.44 -12.92% FF Rate Sign Improvements (U. 206th St. - 210th St.)5.56 3.54 -36.33% SF Unit Rate (210th St. - 215th St.)1053.84 960.15 -8.89% FF Rate Street Improvements (210th St. - 215th St.)11.02 8.65 -21.51% *Final total assessment amounts are rounded. CITY OF LAKEVILLE RESOLUTION NO._________ RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR CITY IMPROVEMENT PROJECT 17-04 WHEREAS, pursuant to the direction of the City Council, the City Clerk has prepared a proposed assessment roll on the cost of Improvement Project 17-04 within portions of the Marrinan Addition, Overland First Addition, Bentson Addition, Berres Addition, Rhoda Tomsons Addition, Wright and Balchs Addition, Hewitt Investments First Addition, Lakeville Village (Town of Fairfield), DHY Addition, Lakeville Senior Housing Addition, Market Plaza, as well as those metes and bounds parcels located along Holyoke Avenue between 202nd Street (CSAH 50) and 215th Street (CSAH 70); City Improvement Project 17-04; and NOW, THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota: 1. A hearing shall be held on Monday, July 17, 2017 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, 2017. The first year installment payments will include interest accrued from November 16, 2017 – December 31, 2018. 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 19th day of June, 2017. CITY OF LAKEVILLE _________________________________ Douglas P. Anderson, Mayor ATTEST: _____________________________ Charlene Friedges, City Clerk