HomeMy WebLinkAboutItem 06.l
Date: March 19, 2018 Item No.
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR
CITY IMPROVEMENT PROJECT 18 -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 18-02, 2018 Street
Reconstruction Project.
Overview
At its November 20, 2017 meeting, the Lakeville City Council held a public hearing notifying
residents of the pending assessment amount. At the conclusion of the hearing, City Council
ordered the improvement and authorized the preparation of plans and specifications.
Five bids for the project were received on March 2, 2018. They ranged from a low bid of
$6,056,509.16 to a high bid of $6,513,419.53. The Engineer’s estimate was $6,360,287.26. Based
on the low bid prices received, the total cost for this project is expected to be $7,971,915.00. This
amount is $909,584.00 less than what was presented in the feasibility report, resulting in a
reduction to the special assessment amounts that were estimated last fall. The reduction in
estimated project costs can be attributed to a very competitive bidding climate.
Staff has reviewed the bids and proposed special assessments and recommends approval of the
resolution.
Primary Issues to Consider (See attached)
• Project Costs
• Special Assessments
Supporting Information
• Tables comparing costs, financing, and proposed assessments are attached.
Financial Impact: $7,971,915.00 Budgeted: Yes Source: 429 Bonds, Utility & Enviro. Res. Funds
Related Documents (CIP, ERP, etc.): CIP
Community Values: Good Value for Public Services
Report Completed by: Chris Petree, Public Works Director
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Primary Issues to Consider
• Project Costs: Total
Total
Street Contract 6,056,509$
Engineering 806,365$
Debt Issuance 286,618$
Other 822,423$
Total Project Costs 7,971,915$
• Project Costs: Financing
Total City of
Lakeville
Special
Assessed
Street & Storm Sewer Improvements 6,365,163$ 3,754,643$ 2,610,520$
Water Quality Improvements 67,185$ 67,185$
Stormwater Basin Maintenance 114,731$ 114,731$
Sanitary Sewer Repairs 196,574$ 196,574
Watermain Rehabilitation 1,228,262$ 1,228,262$
Total 7,971,915$ 5,361,395$ 2,610,520$
City of Lakeville share of cost for street and storm sewer improvements
($3,754,643) will be financed with debt; the principal and interest payments
will be repaid with property tax levies commencing in 2019. The 2018 property
tax levy included $50,000.00 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 quality improvements ($67,185) will be financed using
City Storm Sewer Trunk Funds; the storm water basin maintenance ($114,731)
will be completed using City Environmental Resources Funds; the water main
improvements ($1,228,262) will be completed using City water operating
funds and/or financed with debt. The sanitary sewer improvements will be
funded by the Sanitary Sewer Operating Fund ($196,574).
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• Project Costs: Feasibility Report vs. Bid Results
Feasibility
Report Bid Results Reduction
Property Taxes 4,544,077$ 3,754,643$ -17.4%
Special Assessments 3,030,018$ 2,610,520$ -13.8%
Environmental Resources Fund 149,991$ 114,731$ -23.5%
Storm Sewer Trunk Fund 44,352$ 67,185$ 51.5%
Water Operating Fund 869,336$ 1,228,262$ 41.3%
Sanitary Sewer Operating Fund 243,725$ 196,574$ -19.3%
Total 8,881,499$ 7,971,915$ -10.2%
• Special Assessments: Terms and Conditions
• Interest rate: 5%
• Term: 10-years
• First payment due with taxes payable 2019.
• Senior Citizen deferments are available for those who qualify.
• Special Assessments: Feasibility Report vs. Bid Results
Feasibilty
Report Bid Results Reduction
Single Family Unit Rate 4,341.00$ 3,740.00$ -13.84%
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CITY OF LAKEVILLE
RESOLUTION NO._________
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR
CITY IMPROVEMENT PROJECT 18-02
WHEREAS, pursuant to the direction of the City Council, the City Clerk has prepared a
proposed assessment roll on the cost of Improvement Project 18-02 within portions of Crystal Lake Golf
Estates and Crystal Lake Golf Estates 2nd, 4th, and 5th Additions; Trotters Ridge and Trotters Ridge 2nd
Addition; Hypointe Crossing and Hypointe Crossing 2nd Addition; Walnut Ridge; Crystal Lake Club
House; Crystal Lake Country Club and Crystal Lake Country Club 2nd Addition; Homestead Creek and
Homestead Creek 2nd, 3rd, and 4th Additions; Tutor Time Addition; Sanasha Knolls 2nd Addition;
Dakota Heights 7th and 8th Additions; Daniels Addition and Daniels 2nd, and 3rd Additions; Andersons
Century Farm and Anderson Century Farm 2nd Addition; City Improvement Project 18-02; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota:
1. A hearing shall be held on Monday, April 16, 2018 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, 2018. The first year installment payments will include interest accrued from
November 16 – December 31, 2019. 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 March 2018.
CITY OF LAKEVILLE
_________________________________
Douglas Anderson, Mayor
ATTEST:
_____________________________
Charlene Friedges, City Clerk