HomeMy WebLinkAboutItem 06.h Date: March 18, 2019 Item No.
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR
CITY IMPROVEMENT PROJECT 19-02
Proposed Action
Staff recommends adoption of the following motion: Move to approve a resolution calling a public
hearing on proposed assessments for the 2019 Street Reconstruction Project, City Project 19-02.
Overview
On November 19, 2018, the Lakeville City Council held a public hearing notifying property owner
of the 2019 Street Reconstruction Project (City Project 19-02), including estimated pending
assessment amounts. At the conclusion of the hearing, City Council ordered the improvement
and authorized the preparation of plans and specifications.
Three bids for construction of City Project 19-02 were received on March 8, 2019. Results ranged
from a low bid of $8,110,921.42 to a high bid of $8,891,778.12. The Engineer’s construction
estimate was $7,150,160.85. Based on the apparent low bid price for construction, the total project
cost is anticipated to be $10,347,018. This amount is $110,287 less than the estimate listed in the
Feasibility Report.
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: $10,347,018 Budgeted: Y☒ N☐ Source: Multiple Sources
Related Documents: Lakeville 5-year Capital Improvement Plan (2019-2023)
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Zach Johnson, City Engineer
Total
Construction Contract 8,110,921$
Engineering 1,059,687$
Debt Issuance 112,171$
Associated Project Costs 1,064,239$
Total Project Costs 10,347,018$
Total
City of
Lakeville
Special
Assessed
City of
Burnsville
Street & Storm Sewer Improvements $7,311,030 $4,315,909 $2,995,121
Sanitary Sewer Rehabilitation $223,350 223,350$
Watermain Rehabilitation $756,743 756,743$
Water Quality Improvements $67,245 67,245$
Stormwater Basin Maintenance $117,576 117,576$
City of Burnsville $1,871,074 $1,871,074
Total $10,347,018 $5,480,823 $2,995,121 $1,871,074
Primary Issues to Consider
• Project Costs: Total
• Project Costs: Financing
The City of Lakeville’s share of cost for street and storm sewer improvements will be financed
with debt issuance; the principal and interest payments will be repaid with property tax levies
commencing in 2020. The water quality improvements will be financed using the City’s
Stormwater Infrastructure Fund; Stormwater basin maintenance will be completed using the City’s
Environmental Resources Fund; Watermain rehabilitation improvements will be completed using
the City’s Water Operating Fund and/or financed with debt issuance. The sanitary sewer
rehabilitation will be funded by the City’s Sanitary Sewer Operating Fund.
Feasibility
Report Bid Results Difference
City of Lakeville (property taxes) $ 4,646,182 4,315,909$ -7.1%
Special Assessments 2,975,628$ 2,995,121$ 0.7%
Water Operating Fund 844,129$ 756,743$ -10.4%
Sanitary Sewer Operating Fund 225,663$ 223,350$ -1.0%
Stormwater Infrastructure Fund 192,895$ 67,245$ -65.1%
Environmental Resources Fund 71,808$ 117,576$ 63.7%
City of Burnsville 1,501,000$ 1,871,074$ 24.7%
Total 10,457,305$ 10,347,018$
Feasibility
Report Bid Results Difference
Single Family Unit Rural Residential 6,243.85$ 6,650.00$ 6.5%
Single Family Unit Urban Residential 4,430.79$ 4,568.00$ 3.1%
Single Family Unit Collector 6,146.81$ 6,556.00$ 6.7%
• Project Costs: Feasibility Report vs. Bid Results
• Special Assessments: Terms and Conditions
o Interest rate: 5%
o Term: 10 years for Urban Residential Properties
15 years for Rural Residential and Collector Properties
o First payment due with taxes payable 2020
o Senior Citizen deferments are available for those who quality
• Special Assessments (Unit Rates): Feasibility Report vs. Bid Results
CITY OF LAKEVILLE
RESOLUTION NO. 19-
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR
CITY IMPROVEMENT PROJECT 19-02
WHEREAS, pursuant to the direction of the City Council, the City Clerk prepared a
proposed assessment roll on the cost of City Project 19-02 within portions of Golden Leaf Forest;
Knolls Valley; Kingswood Estates; Kingsley Cove; Kingsley Cove 2nd Addition; Orchard Lake;
Registered Land Survey 13; Kenwood Oaks; Kenwood Oaks 2nd Addition; Kenora Ridge; Lakeville
Hills; Grohoskis Rearrangement; Jackson Heights; Jackson Heights 2nd Addition; Gola Heights;
Crystal Ridge Estates; Town and Country Estates 3rd Addition; Oak Shores 2nd, 3rd, 4th, 6th, 7th,
10th Additions; Vista First Addition; Bluebill Bay Estates; Logarto; Logarto 2nd Addition; Fourth
Addition to Benham Investment Company’s Minnesota Orchard Gardens; and those metes and
bounds parcels located along Klamath Trail between Kenwood Trail/CSAH 5 and Knolls Path,
City Project 19-02; 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