HomeMy WebLinkAbout2010-10-20 PACKET 06.C.REQUEST OF CITY COUNCIL ACTION
..
COUNCIL
MEETING
DATE 10/20/10
Finance
ORIGINATING DEPARTMENT
AGENDA
ITEM
i
Robin Roland
STAFF AUTHOR
COUNCIL ACTION REQUEST
1. Conduct public hearing considering the assessment of the public improvements for the
2010 Pavement Management Project.
2. Adopt resolution adopting assessments for the above project.
STAFF RECOMMENDATION
Hold the public hearings and adopt the resolutions as presented.
BUDGET IMPLICATION $ $
BUDGETED AMOUNT ACTUAL AMOUNT FUNDING SOURCE
ADVISORY COMMISSION ACTION
None
SUPPORTING DOCUMENTS
® MEMO /LETTER:
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
ADMINISTRATORS COMMENTS
Administrator Date
COUNCIL ACTION TAKEN: APPROVED ❑ DENIED ❑ OTHER
&$ .26/4 -/<3
(M City of •'.. Grove
TO: Honorable Mayor and City Council
Ryan Schroeder, City Administrator
FROM: Robin Roland, Finance Director {°
Jennifer Levitt, City Engineer
Brenda Peper, Financial Analyst
DATE: October 13. 2010
RE: Conduct Public Hearing on the 2010 Pavement Management Project and
consider adopting the assessments for the 2010 Pavement Management
Project
Introduction
On September 15, 2010 the City Council declared the costs to be assessed and called
for a public hearing to consider the assessments for the 2010 Pavement Management
Project. Notices were mailed to property owners and published in the South
Washington County Bulletin on October 6, 2010.
The action requested at this meeting is to hold the public hearing. Following the
hearing, Council is asked to consider the adoption of the assessments.
Due to staff's desire to allow for the completion of the majority of the project (substantial
completion) prior to the assessment hearing, there is no flexibility in timing for this
hearing. The assessment roll must be adopted this evening if it is to be certified to the
County by the deadline for the 2011 property taxes.
Discussion
The 2010 Pavement Management area is the River Acres Area, known as District H as
established by the 1994 Pavement Management Program. The City Council held a
workshop session on December 2, 2009 to discuss the various elements of the
proposed improvements. A neighborhood meeting was held about the project on
January 7, 2010 at the Cottage Grove City Hall.
The feasibility report was approved on February 17, 2010 and a Public Hearing was
held on March 17, 2010. The project was ordered and plans and specifications were
requested to be prepared on March 17, 2010. The bid was awarded to Ace Blacktop on
June 16, 2010.
The proposed assessment amounts follow the adopted Infrastructure Management
City Council
2010 Pavement Management Public Hearing
Page # 2
Task Force (IMTF) policy calling for 45% of the project costs to be assessed equally to
all properties in the improvement area. The attached breakdown from the SEH
Engineering firm shows assessable cost of $614,668 resulting in an assessment for
each property of $5,277.
Prior pavement management assessments have ranged from $2,000 to $3,000 when
adjusted for the CPI. The 2010 Pavement Management project is in a rural area with
unique characteristics and therefore the assessments on this project are in excess of
those prior projects — even after adjustments for inflation.
The City's practice is to assess for improvement projects once the project is
substantially complete which has been interpreted to mean a drivable surface. Staff
believes the roadway improvements will be substantially complete and usable by the
date of the public hearing but there may be some restoration work that continues into
the spring.
Recap of the project costs and funding
Estimated final
cost with other
Assessed
%
Storm Sewer Property Tax
costs
Amount (45 %)
Assessed
Utility Fund Levy
Streets $ 1,172,385
$ 527,573
45.0%
$ - $ 644,812
Storm Sewer 164,944
74,225
45.0%
90,719 -
Railroad crossing improvements 28,600
12,870
45.0%
15,730
1,365,929
614,668
45.0%
90,719 660,542
Parcels Assessed Quiet Zone 52
Assessment Amount Per parcel Quiet Zone $ 247.50
Parcels Assessed Street and Storm 114.0422
Assessment Amount Per parcel streets $ 4,626
Assessment Amount Per parcel storm $ 651
Total assessment streets and storm $ 5,277
These current assessment amounts compare to the original projected assessment
amounts based on the engineer's estimate of $6,275 for streets and storm and $247.50
for the quiet zone.
Appraisals
A special benefit appraisal was conducted by BRKW Appraisals, Inc. on January 21,
2010 for eight properties. Two of the eight properties are zoned agricultural and per the
City's assessment policy the value of the special benefit appraisal is the given
assessment value levied against the property. The parcel at 8245 110 Street was
found to have no special benefit from the project. The parcel at 7624 110 Street is
zoned agricultural with a special benefit of $12,000, this benefit directly relates to
proposed assessment. The other six appraisals averaged $10,000 of special benefit,
which is greater than the proposed assessment of $5,277.
City Council
2010 Pavement Management Public Hearing
Page # 3
Payment Options
If the assessment roll is adopted after the public hearing, property owners will have 30
days to pay the entire assessment, or make a partial payment of at least $500, without
incurring interest charges. In the event that the assessment is not paid within 30 days,
the assessment roll will be certified to the County for collection over the next 15 years.
If certified to the County, annual principal and interest payment added to the property
taxes would be approximately $795 each year.
Action Requested
• Conduct the public hearing for the project.
Adopt the assessment roll for the 2010 Pavement Management Project.
RESOLUTION ADOPTING ASSESSMENTS FOR THE 2010 PAVEMENT
MANAGEMENT RIVER ACRES (DISTRICT H) ROAD PROJECT
WHEREAS, pursuant to proper notice duly given as required by law, the Council
has met and heard and passed upon all objections to the proposed assessment of the
2010 Pavement Management River Acres (District H) Road Project.
NOW THEREFORE BE IT RESOLVED, the City Council of Cottage Grove,
County of Washington, State of Minnesota, as follows:
Such proposed assessment, in the amount of $614,668, a copy of which is
attached hereto and made a part hereof, is hereby accepted and shall constitute
the special assessment against the lands named therein, and each tract of land
therein included is hereby found to benefit by the proposed improvement in the
amount of the assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over e
period of 15 years, at an interest rate of 7 %, the first of the installments to be
payable on or before the first Monday in January, 2011, and shall bear interest
on the entire assessment from the date of this resolution until December 31,
2011. To each subsequent installment when due shall be added interest for one
year on all unpaid installments.
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 Treasurer,
except no interest shall be charged if the entire assessment or on any amount
$500 or greater is paid within 30 days from the adoption of this resolution; and
she /he may, at any time thereafter, pay to the City Treasurer the entire amount of
the assessment remaining unpaid, with interest accrued to December 31 of the
year in which payment is made. Such payment must be made before November
15 or interest will be charged through December 31 of the next succeeding year.
4. The Director of Finance shall transmit a certified duplicate of this assessment to
the County Auditor to be extended on the property tax lists of the County. Such
assessment shall be collected and paid over in the same manner as other
municipal taxes.
Passed this 20th day of October 2010.
Myron Bailey, Mayor
Attest:
Caron Stransky, City Clerk
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