HomeMy WebLinkAboutItem 06.i Date: March 18, 2019 Item No.
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR
HAMBURG AVENUE IMPROVEMENTS
Proposed Action
Staff recommends adoption of the following motion: Move to approve a resolution calling a public
hearing on proposed assessments for Hamburg Avenue Improvements, City Project 19-05.
Overview
On November 19, 2018, the Lakeville City Council held a public hearing notifying property owners
of the Hamburg Avenue Improvements (City Project 19-05), including estimated pending
assessment amounts. At the conclusion of the hearing, City Council ordered the improvement
and authorized the preparation of plans and specifications.
Six bids for construction of City Project 19-05 were received on March 8, 2019. Results ranged
from a low bid of $1,299,986.18 to a high bid of $1,725,631.40. The Engineer’s construction
estimate was $1,836,886.25. Based on the apparent low bid price for construction, the total project
cost is anticipated to be $1,806,115. This amount is $977,530 less than the estimate listed in the
Feasibility Report, resulting in an overall reduction in the special assessment amounts.
Staff reviewed the bids and proposed special assessments and recommend 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: $1,806,115 Budgeted: Y☒ N☐ Source: Multiple Sources
Related Documents: Lakeville 5-year Capital Improvement Plan (2019-2023)
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Zach Johnson, City Engineer
Total
Construction Contract 1,299,986$
CR 50 Contract 69,736$
Engineering 242,347$
Debt Issuance 16,349$
Associated Project Costs 177,697$
Total Project Costs 1,806,115$
Total
City of
Lakeville
Special
Assessed
Street/Storm Sewer Improvements $973,718 $834,456 $139,262
Sanitary Sewer Rehabilitation $11,019 $11,019
Watermain Rehabilitation $50,409 $50,409
Stormwater Infrastructure $530,603 $530,603
Trail Improvements $105,662 $105,662
Trunk Water Extension $134,704 $33,882 $100,822
Total $1,806,115 $1,566,031 $240,084
Primary Issues to Consider
• Project Costs: Total
• Project Costs: Financing
The City of Lakeville’s share of cost for street improvements will be financed with previously
collected escrows and debt issuance; principal and interest payments will be repaid with property
tax levies commencing in 2020. The Storm sewer and stormwater quality improvements will be
financed using the City’s Stormwater Infrastructure Fund; Trunk watermain improvements will
be financed using the City’s Trunk Water Fund, Trail improvements will be financed using the
Park Dedication and Escrow Funds, Watermain rehabilitation improvements will be completed
using the City’s Water Operating Fund and/or financed with debt issuance. Sanitary sewer
rehabilitation will be funded by the City’s Sanitary Sewer Operating Fund.
Feasibility
Report Bid Results Difference
City of Lakeville (property taxes) $ 1,093,049 502,456$ -54.0%
Special Assessments 267,044$ 240,084$ -10.1%
Water Operating Fund 73,579$ 50,409$ -31.5%
Sanitary Sewer Operating Fund 8,145$ 11,019$ 35.3%
Trunk Water Fund 24,998$ 33,882$ 35.5%
Stormwater Infrastructure Fund 826,185$ 530,603$ -35.8%
Escrow Fund (Street and Trail)332,000$ 332,000$ 0.0%
Park Dedication Fund 158,645$ 105,662$ -33.4%
Total 2,783,645$ 1,806,115$
Feasibility
Report Bid Results Difference
Street Assessment 2,251.12$ 1,908.00$ -15.2%
Curb and Gutter Assessment 1,415.21$ 1,478.00$ 4.4%
Storm Sewer Assessment 1,790.99$ 1,610.00$ -10.1%
Total Street Assessment 5,457.32$ 4,996.00$ -8.5%
Watermain Assessment 6,398.93$ 5,600.00$ -12.5%
• Project Costs: Feasibility Report vs. Bid Results
Special Assessments: Terms and Conditions
• Street/Curb & Gutter/ Storm Sewer
o Interest rate: 5%
o Term: 10 years
o First payment due with taxes payable 2020
o Senior Citizen deferments are available for those who qualify
• Watermain/Sanitary Sewer
o Interest rate: current bond rate (at the time of hookup) plus 2%
o Term: 10 years beginning at time of hookup
o Deferral: Up to 8 years without interest
o Hookup: Required within two years following 8 years
• Special Assessments (Unit Rates): Feasibility Report vs. Bid Results
CITY OF LAKEVILLE
RESOLUTION NO. 19-
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR
HAMBURG AVENUE IMPROVEMENTS
WHEREAS, pursuant to the direction of the City Council, the City Clerk prepared a
proposed assessment roll on the cost of City Project 19-05 along the segment of Hamburg Avenue
between Lakeville Boulevard and County State Aid Highway (CSAH) 50 (202nd Street), City Project
19-05; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota:
1. A hearing shall be held on Monday, April 15, 2019 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 shall state in the notice the total cost of the improvement. The City Clerk 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, 2019. The first-year installment
payments will include interest accrued from November 16, 2019 – December 31, 2020. 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 18th day of March 2019.
______________________________
Douglas P. Anderson, Mayor
_________________________________
Charlene Friedges, City Clerk