HomeMy WebLinkAbout8A, Resolutions 2011-012 and 2011-013 for 2011 PMP�
EN HILLS
Request for Council Action
Prepared By: Kristine Giga, Civil Engineer Council Meeting Date: March 14, 2011
Resolution 2011-012 Declaring Cost to be Assessed and Order Preparation of Proposed
Assessment for the 2011 Pavement Management Program
Resolution 2011-01.3 Providing for Assessment Hearing for the
2011 Pavement Management Program
Budgeted Amount: Estimated Actual Amount: Ftu►ding Source:
$1,747,qOQ $1,415,981 PIR, Enterprise Funds, Special
(engineering and construction) (engineering and construction) Assessments
Recommendation:
Adopt Resolution 2011-012: Declaring cost to be assessed and ordering preparation of proposed
assessments for the 2011 Pavement Managemeiit Program.
Adopt Rasolutio� 2011-013: Providing for assesstnent hearing for the 2011 Pavement Management
Program.
Supportin� Documents:
1. Memorandum dated March 14, 20 ] 1 from Kristine Giga
2. Resolution 2011-012
3. Resolution 2011-d13
�
EN H�LLS
MEMORANDUM
DATE: March 14, 2011
TO: Honorable Mayor and City Councilmerr�bers
Patrick Klaers, City Administrator
FROM: Kristine Giga, Civil Engineer
�UBJECT: 2011 Pavement Management Program {PMP)
• Declare costs to be assessed and order preparation of assessment roll
• Set assessment hearing date
Back�raund
On January 31, 2011, the City Council appxoved the plans and specifications for the 2011
Pavement Management 1'rogram and ordered advertisement fpr bids. Bids were solicited
during February and early March. The bids were opened an Tuesday, March S, 2011.
A portion of the costs for the 2011 PMP project are proposed to be assess�d to the
ben�fiting properties. In arder to assess these costs, the City must fallow the Public
Hearing steps outlined in State Staiute 429. The first step in the assessmeni process is to
adopt a resolution declaring costs to be assessed and ordering �e preparation of
assessment rolls. The next step is for the City Council to adopt a resolution setting a
hearing date for the assessments. Public hearings are required in order to assess the cost
of public improvernents.
Based on the bids received, staff recommends moving forward with tl�e project. Staff is
requesting City Council direction to move forward with the assessment hearing process,
preparing the assessment roll based on the contract prices subznitted by the law bidder.
The City Councii will be asked to consider awardi�g the bid at the same time as the
adoption of the assessment roll.
Bid Results
Eight bids were received for the project. The low bid submitted by Astech Corporation,
$1,056,47b.80, is 16% lower than th� Engineer's construction estirnate of $1,255,700. A
bid alternate was included to obtain a price for tne construction of a grit chaanber. Staff
has been working with the Ric� Creek Watershed District ta determine the permit needs
City Council Meeting
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for this project, a.nd at the time of bidding, the benefit of a grit chamber compared to
other sto� water treatment alternatives was unknown. At this time, staff is proposing to
include the 3�id alternate; the contract amouni includes this cost.
The following is a list of ihe bids received:
B�DDER BASE BID BID TOTAL BID
AMOUNT ALTERNATE
Asphalt Surface Technologies Corp. $�,037,476.80 $ 19,000 $�,056,476.80
Valley Pa�fng, Inc. $ 1,041,618.49 $ 23,375 $ 1,064,993.9�4
Northwest Asphalt, Inc. $ 1,077,671.60 $ 22,100 $ 1,099,771.60
Hardrives, Inc. $ 1,092,1�3.71 $ 24,626.11 $ 1,116,7b9.82
Midwest Asphalt Co oration $ 1,122,410.40 $ 20,000 $ 1,1.42,410.40
North Valley, Inc. $ 1,139,796.99 $ 24,617.21 $ 1,1b4,414.20
T. A. �chifsky & Sons, Inc. $ 1,141,157.45 $ 2�,823 $ 1,1b5,980.45
Palda and Sons, �nc. $ 1,246,332.b2 $ 22,000 $ 1,268,332.62
Financial Imp��cations
Total Project Cas�s
To establish a total project cost for the improvements, engineering and overhead casts
need to be included. The non-assessable items include 24% for engin�ering fees (20%)
and coniingency (4%). The assessable portion, the street irnprovernents, includes a 37%
overhead, which includes tha follo�ving costs as de�n�d in the Assessment Policy:
City Administration 2.5%
Design Engineering 10.0%
Construction Engineering 10.0%
Legal 2.0%
Fiscal 3 .0%
Interest During Consiruction 4.5%
Assessment Roll Preparation 1.0%
Contingencies 4.0%
T4TAL 37.0%
The Ciiy's portion of the project costs are currently budgeted in the Perinanent
Improvement Revolving (PTR} Fund and Utility Enterprise �'unds {sanitary sewer, surface
water and watermain funds).
The project is proposed to be assessed consistent with the City's assessment po�icy,
�vhich states that SO% of the costs foar raadway ixz�provenaents will be assessed to
residential properties, and the remaining portion �inanced using various City funds.
Ciry Council Meetang
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The ass�ssment policy states that the assessment shall be based an the total estirz�ated
construction cost, plus associated overhead costs. The policy also states that the City
Council shall retain the right to review each project on its own merit and to deviate frorn
any �ortion of the Assessment Policy Manual as it deems proper. As part of the feasibilify
repart, staff recommended that the confractor's bxd prices are used to calculate
assessment rates, as opposed to the engineer's estimate, as stated in the assessment
policy.
The follor�ving tables show:
� a breakdown and comparison of budgeted amounts, engineer's esiimate, and
contract prices (bid alternaie is included)
« a breakdown of casts to be paid by the City and by assessments
• propased assessment rates
Funding Source Sudget�d Feasibility Report Contract Prices
Watermain Enterprise $ 250,000 $ 198,$00 $ 159,474.23
Sanitary Sewer Enterprise $ 32,500 $ 22,400 $ 16,551.52
Surface Water Maz�agement $ 67,500 $ 91,600 $ 123,406.66
Enterprise
PIR/Assessments $ �.,397,000 $ 1,390,900 $ 1,116,54$.70
Total $ 1,747,000 $ 1,703,700 $ 1,�-15,981.11
Tatal amour�i to be assessed (50% of roadr�ray costs) $ 558,274.35
Tota1 amount to be paid b� the City $ 85'�,`706.76
Tota� project cast $ 1,415,981.1 i
Proposed Assessment Rafes
Assessable Tofal Cost per Cast per
Properiy Type Street Costs Costs {50%} Units Unit Unit {Feas.
(Low Bid) Report)
Single-family * $ 754,113.52 $ 377,056.76 13$.0 $ 2,732.30 $ 3,489.00
Multi-
fatnily/townhouse $ 362,435.18 $ 181,217.59 306.0 $ 592.21 $ 699.00
Totals $1,116,548.70 $ 558,27435
* Z�cludes larger properties that can be further
subdivided and tax-exempt equivalent uniis.
Assessment Roll„preparation
City Council Meeting
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The �easibility report outlines #he method in which assessable units were determined. The
following summarizes the parcels that were included as more than one residential
equivalent unit (REU) per property.
Sub-dividable propexties
1224 Amble Road: This residential property has approxirnately 297 feei of front footage
and is appraxi�.ately 290 feet deep; for a total lot size of approximately 85,813 square
feet. In accordance with th� City Code, this lot can yield a maximum of three (3) REUs.
Tax-exempt pro e� rties
The assessment poiicy states �hat tax-exempt properties are to be assessed based on l0a%
of the roadway improvements, pius associated overhead costs. The tax-exennpt equivalent
assessment rate shall be set by the City Councii. For tl�e purposes of determining this
rate, siaff has converted Tax-exempt Equivalent Units {TEU) to Residential Equivalent
Units (REU) as descrik�ed beiow.
Cummings Park is a Ciry owned parcel that has front footage on the proposed
improvements at the Wyncrest Court cul-de-sac. In the �easibility report, City staff listed
the ��-exempt property in the preli�ninary assessmen� rall as faur (4} REUs.
Qn past project,s, the City Council has removed the �-exempt units frozn the assessmeni
roll. The following table shows the proposed assessment rate if the tax-exempt properties
axe removed from the assessment roll.
Interest rate
Far recent PMP projects, the Czty Council has set the following interest rates:
Pro'ect interest rate
20fl4 PMP 4.8% (2% aver annualized rate of retut�)
2010 PMP 4.5% (2% over annualized rate of return)
The assessment policy states that the interest rate shall be set at prime plus two percent.
Prime rate is curr�ntly 3.25%; this would mean an interest rate of 5.25%. The current
annualized rate of re�urn on the City's partfolio is 2.4%. If the City Council were to set
the interest rate at 2% over the annualized rate of return, the rate would be 4.9%. Staff is
seeking direction from the City Cauncil as to the interest rate to be used with tl�e 2011
assessments.
Pa ment Period
City Council Meetumg
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The standard payment period is 5 years for a mill and overlay, and 10 years for a
reconstruc�ian project. �z� 2007, when the project included street reclamation, the City
Council set a payment period of l years. Following past practice, staff recommends
setting tl�e payment period for ihe 2011 PMP to 7 years. The follovving table shaws the
annual assessment amour�t for a payment period 7 years with 4.4% and 5.25% interest
rates.
Assessment Length of
amount payment Interes� Annual TotalInterest
# REU (per u.nit} ears) Rate a ment Paid
Sin le famil :
138 $ 2,732.30 7 4.40% $ 461.98 $ 58�.23
7 5.25% $ 47b.48 $ 701.72
134 $ 2,813.86 7 4.40% $ 475.77 $ 601.67
7 5.25% $ 4�90.71 $ 722.67
Multi-famil :
306 $ 592.21 7 4.40°/fl $ 1 Q0.13 $ 126.63
7 5.25% $ 103.27 $ 152.09
Scl�edule
Below is ihe proposed schedule for the 20ll �MA assessment process:
March 14
April b
Week of April 4
Apri125
Apri125 (May 9)
April 26 to May 25
(May 10 to June 8)
Resolution declaring costs to be assessed, ordering preparation of
assessment xalls, setting date of assessment hearing
Notice af hearing published in the Shoreview-Arden Hills Bulletin
Mail notices to affected property owners
Assessrr�ent hearing
Adoption o� assessment roll
Prepayment of assessments {30 days)
Council Action Reauested
• Approval of Resolution 2411-0012: Declaring cost to be assessed and ordering
preparation o� pxoposed assessment far the 2011 Pavement Managemen� Program.
City Council Meeting
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Approval of Resolution 2011-0013: Providing far assessz�nent hearing for the 2011
Pavement Management Pragram.
Provide directzon on tax-exeFnpt properties for the preparation of the assessment
roll.
• Set int�rest rate fox assessments.
City Council Meeting
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�
EN H�LL5
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTYON NO, 20�.�.-Ox2
A RESOLUTION DECLARiNG C4ST T4 BE AS�ESSED, AND �RDERYNG
PREPARATION OF PROPQSED ASSESSMENT FOR THE 2011 PAVEMENT
MANAGEMENT PRQGRAM
WHEREAS, a contract has been lei for the Ci�y of Arden Hills 20ll Pavement Managemeni
Program, the improvement of the following streets:
A�nble Road, frorn Hamline Avenue to dead end,
Arden View Court, from Arden View Drive to cul-de-sac,
Arden View Drive EntrancelExit, fram Hamline Avenue to Arden View Drive,
Arden View Drive, frorn Arden View Court to 761' east of Royal Hills,
Colleen Court, from Calleen Avenue to cul-de-sac,
Dellwood Street, from Nursery Hi�l Court io Amble Road,
Janet Court, from Lake Valentine Road to cul-de-sac,
Nursery Hiil Lane, from HamlinE Avenue to Nursery Hill Court,
Nursery Hill Court, from Nursery Hill Lane to cul-de-sac,
WyncrEst Court, from Ha�nline Avenue to cul-de-sac,
Wyncrest Lane, fram Wyncres� Co�rt to Wynridge Drive,
Wynridge Drive, from Wyncrest Caurt to cut-de-sac,
And the contract price for suc� improvement is $1,056,476.80, and the expenses incurred or
to be incurred in the making of such irnprovement amount ta $359,504.31 so that the toial
cost of the impravement will be $1,415,981.11.
NOW, THEREFORE, SE IT RESOLVED by the Mayor and the City Council as follows:
1. The portion of th� cost of such improvement to be paid by ihe city is hereby declared to be
$857,746.76 and the partion o£the cost to be assessed against benefit�d property owners is
declared to b� $558,274.35.
2. The City Administrator, with the assistance of the City Engineer, shall forthwith calculate
the praper amount to be specially assessed for such improvemenfi against every assessable
lot, piece or parcel of land within the district affected, without regard to cash valuation, as
provided by law, and he shall file a copy of such proposed assessment in his offce for public
inspection.
3. The City Administrator shall, upon the completion of such proposed assess�nent, notify the
council thereof
ADOPTED SY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS
THI� 14th DAY OF MARCH, 2011.
David Grant, Mayor
ATTEST:
Patz-ick KIaers, Administrator
�
EN HILLS
CYTY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNES�TA
RESOLUTrON NO. 2011-Q13
A RESOLUTrON PROVIDING FOR ASSESSMENT HEARING FOR THE 2011
PAVEMENT MANAGEMENT PROGRAM
WHEREA�, by a resolution passed by ihe council on March 14, 2011, the City
Adrrainistrator was directed to prepare a proposed assessment of the cost for the City of
Arden Hills 2011 Pavement Management Program improvement of the €ollowing streets:
Amble Road, from Hamline Avenue to dead end,
Arden View Court, from Arden View Drive to cul-de-sac,
Arden View Dxive EntrancelExit, from Hamline Avenue to Arden View Drive,
Arden View Drive, from Arden View Court to 761' east of Roya1 Hills,
Colleen Court, from Colleen Avenue to cul-de-sac,
Dellwood Street, from Nursery Hili Court io Amble Road,
�anet Court, fram La�Ce Valentine Road to c�l-de-sac,
Nursery Hill Lane, from Hamline Avenue to Nursery Hill Court,
Nursery Hill Court, from Nursery Hill Lane to cul-de-sac,
Wyncrest Caurt, from Hamline Avenue to cul-de-sac,
Wyncrest Lane, from Wyncrest Court to Wynridge Dri�e,
Wynridge Drive, fram Wyncrest Court to cul-de-sac,
WHEREAS, the City Adrninistrator has notified the council that such proposed
assessment has been completed and filed in his office for public inspection,
NOW, THEREFORE, SE IT RESOLVED by the Mayor and the City Cou�cil as follows:
1. A hearing sha.il be held at 7:00 p.m. on the 25ih day of April, 2011 in the city hall at 1245
West Highway 96, to pass upon such proposed assessment. All persons owning property
affected by such improvement will be given an apportunity to be heard with reference to
such assessment.
2. The City Administrator is h�reby directed ta cause a notice of the hearing an the proposed
assessment to be published once in the official newspaper at least tvvo weeks prior to the
hearing, and he shall state in the notice the total cost of tl�e impravement. He shall also cause
mailed noiice to be given to the owner of each parcel described in the assessznent roll not less
than two weeks prior to the hearing.
3. The owtaer of any property so assessed may, at any time prior to certification of the
assessrnent to the county auditar, pay the whole of tY�e assessment on such prapei-ty, wzth
interest accrued to the date of payment, to the City Administrator, except thai no interest
shall be charged if the entire assessment is paid within 30 days from the adoption of the
assessment. An ovaner may at any tzxxae thereafter, pay to the County the entire amount of the
assessment remaining unpaid, witln intexest accrued to December 31 of the year in which
such payment is made. Such payment must be made be�o�e November 15 or interest will be
charged through December 31 of t�ie succeeding year.
ADOPTED BY THE CITY COUNC�L OF THE CITY OF ARDEN HILLS
THIS 14�� DAY OF MARCH, 2011.
David Grant, Mayor
ATTEST:
Patrick Klaers, Administrator