HomeMy WebLinkAboutItem 06.e Date: March 16, 2020 Item No.
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR
170TH STREET IMPROVEMENTS
Proposed Action
Staff recommends adoption of the following motion: Move to approve a resolution calling a public
hearing on proposed assessments for 170th Street Improvements, City Project 20-04.
Overview
The City Council held a public hearing on November 18, 2019, providing property owners along
the 170th Street Improvements Project (City Project 20-04), a project summary, estimated project
costs, description of the proposed assessment area, estimate of the amount to be assessed and
explanation of the City’s Assessment Policy. The City Council ordered the improvement and
authorized the preparation of plans and specifications on December 2, 2019.
Five bids for construction of City Project 20-04 were received on March 6, 2020. Results ranged
from a low bid of $1,681,900.57 to a high bid of $2,138,507.96. The Engineer’s construction
estimate was $1,927,195.75. Based on the low bid price for construction, the total project cost is
anticipated to be $2,116,807. This amount is $501,399 less than the estimate listed in the Feasibility
Report.
Staff reviewed the bids and proposed special assessments and recommend approval of a resolution.
Primary Issues to Consider (See attached)
• Project Costs
• Special Assessments
Supporting Information
• Tables comparing costs, financing, and proposed assessments are attached
Financial Impact: $2,116,807 Budgeted: Y☒ N☐ Source: Multiple Sources
Related Documents: Lakeville 5-year Capital Improvement Plan (2020-2024)
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Zach Johnson, City Engineer
Primary Issues to Consider
• Project Costs: Total
• Project Costs: By Type
The City’s cost-share for street and storm sewer improvements will be financed with bonds; the
principal and interest payments will be repaid with property tax levies commencing in 2021.
Watermain maintenance will be financed with bonds. Sanitary sewer maintenance will be funded
by the City’s Sanitary Sewer Operating Fund. Trail improvements will be funded by the City’s Trail
Improvement Fund.
• Project Costs: Feasibility Report vs. Bid Results
Total
Construction Contract $1,681,901
Engineering 168,615
Debt Issuance 27,316
Associated Project Costs 238,975
Total Project Costs 2,116,807$
Total
City of
Lakeville
Special
Assessed
Street/Storm Sewer Improvements $1,297,681 $1,260,847 $36,834
Sanitary Sewer Rehabilitation 5,331 5,331
Watermain Rehabilitation 623,016 623,016
Trail Improvements 190,779 190,779
Total $2,116,807 $2,079,973 $36,834
Feasibility
Report Bid Results Difference
City of Lakeville (property taxes)1,330,434$ 1,260,847$ -5.2%
Special Assessments 37,762 36,834 -2.5%
Water Operating Fund 737,862 623,016 -15.6%
Sanitary Sewer Operating Fund 3,661 5,331 45.6%
Trail Improvement Fund 508,487 190,779 -62.5%
Total 2,618,206$ 2,116,807$
Special Assessments: Terms and Conditions
• Street/Curb & Gutter/ Storm Sewer
o Interest rate: 5.0%
o Term: 10 years
o First payment due with taxes payable 2021
• Special Assessments (Unit Rates): Feasibility Report vs. Bid Results
Feasibility
Report Bid Results Difference
Street & Storm Sewer Assessment 5,394.57$ 5,262.00$ -2.5%
Total 5,394.57$ 5,262.00$
CITY OF LAKEVILLE
RESOLUTION NO. 20-
RESOLUTION CALLING A PUBLIC HEARING ON PROPOSED ASSESSMENTS FOR
170TH STREET IMPROVEMENTS
WHEREAS, pursuant to the direction of the City Council, the City Clerk prepared a proposed
assessment roll on the cost of City Project 20-04 along the segment of 170th Street between Flagstaff
Avenue and County State Aid Highway (CSAH) 31 (Pilot Knob Road), City Project 20-04; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lakeville, Minnesota:
1. A hearing shall be held on Monday, April 6, 2020 at the Lakeville Council Chambers,
20195 Holyoke Avenue, at 6:30 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 may, prior to certification of the assessment to the county
auditor, pay the whole or portion of the assessment on such property. No interest will be charged
if the entire assessment is paid by November 15, 2020. No partial payments will be accepted after
November 15, 2020. Payments made between November 16, 2020 and December 15, 2020 will
include daily interest accrued from November 16 to the date of the payment. The first-year
installment payments will be due with taxes payable 2021 and will include interest accrued from
November 16, 2020 – December 31, 2021. The property owner may at any time pay the entire
amount of the assessment remaining unpaid.
ADOPTED by the Lakeville City Council this 16th day of March 2020.
______________________________
Douglas P. Anderson, Mayor
_________________________________
Charlene Friedges, City Clerk