HomeMy WebLinkAbout6A, 2011 PMP Special Assessment Hrg, and Resolutions 2011-021 and 2011-022�
EN HILLS
Request for Council Action
Prepared By: Kristine Giga, Civil Engineer Council Meeting Date: Aprii 25, 2011
2011 Pavement Management Program Special Assessment Hearing
Resolution 201.1-021: Adopting the special assessme�.t roll for the 2011 Pavement
Management Pragram
Resolution 2011-422: Awarding bid �or #be 2011 Pavement Manage�nen� Program fo
Asphalt Surface Technologies Corpora#ion of St. Cloud, Minnesota, in the amount of
$1,056,476.80.
Bu�geted Aznount: Estimated Actual Amount: Funding Source:
$1,747,000 $1,415,9$l PIR, Enterprise �"unds, Special
(engineering and consfruction) (engineering and construction) Assessments
Recommendation:
Hold the special assessment hearing for tJ�e 20I 1 Pavement Management Program
Adopt Resolution 2011-021: Adopting the special assessment roll for th� 2011 Pavement Management
Program.
Adopt Aesolution 2011-022: Awarding bid for the 2011 Pavement Management Program #o Asphait
Surface Technologies Carporation of St. Claud, Minnesota in the amount of $1,056,476.$Q.
Sllqpartin� Documents:
1. Memorandum dated Apri125, 2011 from Civil Engineer Kristine Giga
2. Resolution 20I 1-021, includ'mg Proposed Assessment RoIl
3. Resolution 2011-022
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EN HILLS
MEMORANDUM
DATE: April 25, 2011
TO: Honora�le Mayor and City Council�embers
Patrick Klaers, City Admiz�is[rator
FROM: Kristine Giga, Civil Engineer �
SUBJECT: 2011 Pavement Managemenf Program (PMP)
• A�sessment Hearing
• Adopt Assessment Rolt
• Award Bid
Back�roun d/Discussion
On Januaty 31, 2011, the City Cauncil approved the plans and specifications for the 2011
Pavement Managemem Pragram and ordered advertisement for bids. Bids were soiicited
during February and early March. The bids were opened on Tuesday, March 8, 2011.
A portion of the costs for the 2011 1'MP project are proposed to be assessed to the benefiting
properties. in arder to assess tnese costs, the City must follow the Public Hearing steps
outlined in State Siatute 429. On March 14, 2011, the City Councii set Apri125, 2011, as the
date to hold the p�ablic hearing for the purpose of establishing special assessments for the
2011 PMP Improve�nents.
�oIlowing the assessment hearing, the next step in tne process is to adopt the assessment roll.
The assessment roll znay be adopted as proposed, or with amendments as rnade by the City
Council. If questions arise regarding speciiic assessments or if amendments ta the assessment
rolls are necessary, the City Council may choose to adopt the assessment roll at the May 9,
2011 meeting. This would allow staff time to investigate and make recornmendations
regarding any objections and questions rais�d at �he hearing.
If the City Council adopts the assessment rolt and chooses io move forward with the projec�,
action to avvard the bid is aIso needed. The low bid submitted by Asphalt Surfact
Technologies Corporation (Astech Corporatian), $1,056,476.80, is i6% iower than the
Engineer's construction estimate of $1,255,700. Based on the �ids received, staff
recarnmends moving forward with the project.
City Council Meeting
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llMemo_2011PMP_AssessHearing AwardBid.doc
Page 1 of 3
Financial Imulicatians
The project is proposed to be assessed consistent with the City's assessment policy, vvhich
sta.tes that 50% of the costs for roadway amproverr�ents will be assessed in residential areas,
with the remaining portion financed by various City funds. Financing %r the project is
consistent with past City policy and practice, and is summarized in the table below. The
proj�ct costs include engineering and averhead costs as outlined in the Assessment Policy.
im rovements Fundin Source Cost
Roadway Permanent Improvernent Reval�ing $ 1,116,548.70
{PIR) Fund/Assessinents
Storm Sewer Surface Water Ente rise Fund $ 123,406.b6
Sanitar Sewer Sanita Sewer Enter rise Fund $ 1b,551.52
Watermain Watermain Ente rise Fund $ 159,474.23
TOTAL PROJECT
COST � 1,415,981.11
Tatal amount to be {SO% of roadway costs} $ 558,274.35
assessed
TotaI arnount to be paid $ 857,706.76
b the City
Property Type Per unit assessment Per unit assess�tnent
[ow-bid %asibili re ort
Single Family $ 2,813.86 $ 3,489.00
Nursery Hitl Lane, Nursery Hill Court,
Dellwood Street, Arrible Road, Wyncrest
Court, Wyncrest Lane, Wynridge Drive,
Colleen Court, Janet Court
Multi-Family $ 592.21 $ 699.00
Arden View Court, Arden Vievv Drive
The assessment palicy states that the assessment s�.all be based on the total �stimated
construction cosi, plus associated overhead costs. The policy also s#ates that the City Council
shall retain the right to review each project on its own merit and to deviate from any portian
of the Assessment Palicy Manual as it deems proper. As discussed at the public hearing and
as was prepared in the feasibility report, the proposed assessmen#s were based on the
contractor's bid prices.
At the March 1�, 20� l, City Co�ncil meeting, the City Council directed sta.ff to set the
payment period of the assessment to 7 years. The interest rate was set at 4.40%, which is 2%
over the current annualized rate of retUrn on the City's portfolio. This is a deeiation from the
assessment policy, which states the interest rate shall be prime rate plus 2%; this would mean
a rate of 5.25%.
City Council Meeting
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11Memo 2011PMP_AssessHearing_AwardBid.doc
Page 2 of 3
Received written ob�ections
To date, no formal objections have been subnnitted in writing to City staff. Any written
comments received will be provided to the City Council at the assessment hearing.
As stated in Minnesota State Statute, no appeal may be taken as to the amount of any
assessment adapted unless a written objection signed by the afFected property owners is fled
with the City at or prior to the assessment hearing. After the adoption of the assessment roll,
property owners have 30 days ta serve notice of an appeal to the Ci�ty, and 10 days after
serving notice to file with the district court.
Staff did receive a request to extend the interest free payment period to aliow property
owners some additional tirne ta plan and budget their payment; a copy of this request is
attached. The City Attarney indicated that the 30-day payrnent period is the minimum period
that is required by state statute �'or interest free payrrients and can be extended at the City
Cauncii's direction. The City Attorriey recomrnended that if extended, the interest free period
should end prior to the certification of the assessment xoll to the County in October.
Schedu�e
Below is the �ropased scheduIe for the 2011 PMP assessment process:
April 25
Apri125 {May 9)
Apri126 to May 25
(May 10 to June 8)
October 31
Assessment hearing
Adoption of assessment rolI
Interest free prepayment of assessments {30 days)
Certification of final assessment rolI to Ramsey Caunty
The contractor has indicated that if the project is awarded, they would like to begin
construction in �nid-June.
Cauacil Action Re uested
+ Hold the special assessment hearing.
• Adopt Resolution 20� �-021: Adopting the speciai assessment roIl far the 2011
Pavement Management Program.
• Adopt Resolutian 2011-022: Awarding the bid for ihe 20� i Pavement Management
Program to Asphalt Surface Technalogies Corporation of St. Cloud, Minnesota, in
the amount of $ T,056,476.80
City Councii Meeting
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1 �Memo_2011PM1'_AssessHearing AwarclBid.doc
Page 3 of 3
Kristine Gi a
From: Bannie
Sent: Tuesday, April 19, 24� 1 10:4fi AM
To: Kristine Giga
Subject: assessments
Kristine
I'm a homeowner in the Arden Hills townhomes - 223023240211. r know
the a5sessment is necessary; however, I`m questioning the �ime lfnes
o�f payment. Your letter states that if the payment is not paid in fu11
or part of it by May 25, 20�.1, a.nteres� will accrue. This a.s a very
short period of time for th� no�ice. � do not want to pay any
interest,. But it does put a strain on this retiree's budg�fi. Cou�.d
t�e fuZl payment or par� payment without interest be due by the end of
�une? �hat wauld at least gi�e us a couple af r�onths to f�nd the
money. I'm also spealcing for several other homeowners.
Bannie Love11
4348 Arden View C�.
1
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� EN H�LL5
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CITY OF ARDEN HILL�
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION N4. 20ll-021.
RESOLUT�ON ADOPTING SPEC�AL ASSESSMENT ROLL AND FOR THE 2011
PAVEMENT MANAGEMENT PROGRAM
WI�EREAS, pursuant to proper notice duly given as requir�d by law, the City
Couzxcil has Fnet and heard and passed upon all objections to the proposed assessznent for the
impxovement of the City of Arden Hills 2011 Pavement Management Program improvemeni
of the following streets:
Amble Road, from Hamline Avenue to dead end,
and parcels on the east end of Amble Road accessing from a common private drive;
Arden View Court, from Arden View Drive to cul-de-sac;
Ar�.en View Drive Entrance/Exit, fro� Ham�ine Avenue to Arden View Drive;
Arden View Drive, fram Airden View Court to 7b1' east of Royal Hiils;
Colleen Court, from Colleen Avenue to cul-de-sac;
Dellwood Street, from Nursery Hiil Court to Amble Road;
Janet Court, frorn Lake Valentine Road to cul-de-sac;
Nursery Hill Lane, from Hamline Avenue to N�zrsery Hill Court;
Nursery Hill Court, from Nursery Hill Lane io cul-de-sac;
Wyncrest Court, from Hamline Avenue to cul-de-sac;
Wyncrest Lane, from Wyncrest Court to Wynridge Drive;
Wynridge Drive, from Wyncrest Court to cul-de-sac.
NOW, THEREFORE, BE IT RESQLVED by the Mayor and the City Cauncil that:
1. Such proposed assessment roll, a copy of which is attached hereto and made a part hereof,
is hereby accepted and shall constitute the special assessznent against the Iands na�ned
therein, and each tract af land therein incIudEd is hereby found to be benefited by the
proposed improveznent in the amount of the assessment levied against it.
2. Such assessment assessed against each parcel of land s�all be payable in equal annual
installmen�s extending over a period of seven (7) yeaxs, unless prepaid, the first of the
installments to be payable with general iaxes levied in 2011, collectible with s�ch taxes
during the year of 2012. The assessment shall bear interest at the rate of 4.4 percent per
annum from the date of the adoption of ihis assessment resolution. To the first installrnent
sha11 be added interest on the entire assessment from tlie date of this resolution until
December 31, 2011. To each subsequent installment when due shall be added interest for one
year on all unpaid installrnents.
3. If the adopted assessrnent differs from the proposed assessment as to any particular loi,
piece, ar parcel of land, the City Administrator ,shall mail to the owner a noiice stating the
arnount o� the adopted assessnaent. The administrator must also natify affected owners of
any changes adopted by the Council in interest rates ar prepayinent requirements from thase
contained in the notice af the proposed assessment.
4. T�.e owner of any property so assessed may, at any time prior fio certificaiion of the
assessment to ihe county audiior, pay the �vhole af the assess�nent on such property, with
interest accrued to the date of payment, ta the City Ad�ninistrator, except ihat no int�rest
shall be charged if the entire assessrnent is paid within 30 days from ihe adoptian of this
resolution. The owner nnay at any time thereafter, pay to the County Auc�itor the entire
amount of the assessrnent remaining unpaid, with interest accrued to December 31 of the
year in which such payment is made. Such payment must be made be%re November 15 or
interest will be charged through December 31 of the succeeding year.
5. The City Administrator shall farthwith prepare and iransmit a certified duplicate o� this
assessment fio the Couniy Auditar to be extended an the property tax lists of the county. Such
assessments sha11 be collected and paid over in the same manner as other municipal ta�es.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN H�LLS
THIS 25th DAY OF APRIL, 2010.
David Grant, Mayor
ATTEST:
Patrick Klaers, Adminis#rator
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EN HILLS
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF M�NNESOTA
RESOLUTION NO. 2011-022
A RESOLUTION AWARDING THE 2011 PAVEMENT MANAGEMENT PROGRAM
WHEREAS, pursuant to advertisement for bids for the improvemen� of �e City of
Arden Hills 2011 Pavement Management Program, the irnprovement of the fo�lowing streets:
Amble Road, from Hamline Avenue to dead end;
Arden View Court, from Arden View Drive to cul-de-sac;
Arden View Drive Entrance/Exit, from Hamline Avenue to Arden Vievv Drive;
Arden View Drive, from Arden Vfew Court to 761' east o� Rayal Hi�ls;
Col�een Court, from Colleen Avenue to c�l-de-sac;
Dellwood �treet, from Nursery Hill Court to Aini�l� Raa�;
Janet Court, from Lake Valentine Road to cul�de�sac;
Nursery Hill La�e, from Hamline Avenue to Nursery Hill Court;
Nursery Hill Court, from Nursery Hi11 Lane to cul-de-sac;
Wyncrest Court, from Hamline Avenue to cul�de-sac;
Wyncrest Lane, froin Wyncrest Court to Wynridge Drive;
Wynrid�;e Drive, from Wyncrest Court io cul-de-sac, and
WHEREAS, bid� wer� received on Tuesday, March 8, ZO11, at 10:00 a.rn., opened, and
tabulated accarding to the lav�r, and the following bids were received complying witli the
advertisement:
BIDDER BASE BID BID TOTAL BID
AMOUNT ALTERNATE
Asphalt Surface Techn.alogies Corp. $ 1,037,476.80 $ 19,000 $ 1,056,476.80
Valleq Paving, Inc. $ 1,041,618.49 $ 23,375 $ 1,064,993.49
Nortllwest Asphalt, Inc. $ 1,077,671.bp $ 22,100 $ 1,099,771.60
Hardri�es, Inc. $ 1,092,143.71 $ 24,62G.11 $ 1,116,769.$2
Midwest Asphalt Cor}�oration $ 1,122,410.40 $ 20,00� $ 1,142,410.40
North Valley, Inc. $ 1,139,796.99 $ 24,617.21 $ 1,164,414.20
T. A. Schifsky & Sons, Inc. $ 1,141,157.45 $ 24,823 $ 1,165,980.45
Palda and Sons, Inc. $ 1,246,332.62 $ 22,000 $ 1,26$,332.62
AND WHEREAS, it appears that Asphalt Surface Techr�ologies Corparation, of Saint
Ctoud, Minnesota, is the lowest responsible bidder at the tabulated price of $1,056,476.80;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ARDEN
HILLS, MINNESOTA:
1. The Mayor and City Adtninistratar are hereby au�liorized and directed io enter into a
contract with Asphalt Surface Technologies Corporation, of Saint Cloud, Minnesota, for
1,056,476.80 in the name of the City of Arden Hills for the above irza.pravements
according to the plans and specifications thexeo� hexeto�oxe approved by the City Council
and on file in the affice of the City Administrator.
2. The City Adininistra�ar is hereby autYaori�ed and directed io reiurn forthwith to ali
bid�.ers the deposits made wrth their bids, except that the deposits of the successful bidder
and the next lowest bidder shall be retained until contracts have been sigxied.
.ADOPTED BY THE CITY COUNCYL OF THE CITY OF ARDEN HILLS THIS 25tn
DAY OF APRIL, 2011.
David Grant, Mayor
ATTEST:
Patrick Klaers, City Administrator