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Home My WebLink About7B, Resolution 2010-033, Assessment Roll for 2010 PMP_ EN HILLS . R f r n il Actio n� e uest o Cou c q : .................................................................................................................................................................................................................................................a......................................................................................................................�.....................................................................�..............�........_..............................._...... Prepared By: Kristine Giga, Civil Engineer : Council Meeting Date: June 14, 2010 Resolution 2010-033: Declaring cost to be assessed, and ordering preparation of proposed assessment roll for the 2010 Pavement Management Program Budgeted Amount: Actual Amount: Funding Source: $1,102,000 $982,444 PIR, Enterprise Funds, Special Assessments Recommendation: Adopt Resolution 2010-033: Declaring cost to be assessed, and ordering preparation of proposed assessment roll for the 2010 Pavement Management Program Supporting Documents: • Memorandum dated June 14, 2010 from Civil Engineer Kristine Giga • Aerial images of 1645 Valentine Avenue and 4093 Valentine Crest Road • Letter from the City Attorney dated June 10, 2010 • Resolution 2010-03 3 �;.� EN HILLS MEMOR.ANDUM � ,._ ,_,_,��_. _�.��_� . DATE: June 14, 2010 TO: �Ionorable Mayor and City Council Members Patrick Klaers, City Administrator FROM: Kristine Giga, Civil Engineer SUBJECT: 2010 Pavement Management Program (PMP) • Declare costs to be assessed and order preparation of assessment roll Back�round �n May 10, 2010, the City Council awarded the 2010 PMP project to T.A. Schifsky and Sons, Inc. A portion of the costs for the 2010 PMP proj ect are proposed to be assessed to the benefiting properties. In order to assess these costs, the City must follow the Public Hearing steps outlined in State Statute 429. The first step in the assessment rocess is to p adopt a resolution declaring costs to be assessed and ordering the preparation of assessment rolls. The next step is for the City Council to adopt a resolution receiving the p�oposed assessment roll and setting a hearing date for the assessments. Public hearings are required in order to assess the cost of public improvements. Discussion The project is proposed to be assessed consistent with the City's assessment policy, which states that 50% of the costs for roadway improvements will be assessed to residential properties, and the remaining portion financed using various City funds. The assessment policy states that the assessment shall be based on the total estimated construction cost, plus associated overhead costs. The policy also states that the City Council shall retain the r�ght to review each proj ect on its own merit and to deviate from any portion of the Assessment Policy Manual as it deems proper. As part of the feasibility report, staff xecon�mended that the contractor's bid prices are used to calculate assessment rates, as opposed to the engineer's estimate, as stated in the assessment policy. The following table shows a summary of the proj ect costs and proposed funding source, using the contractor's bid prices. C�ty Council �Ieeting \�l�/Ietro-inet.us\axderi�ulls�'R&PW�En�ineering\Council_Actions�2010\6-14-1 OMemo 2010P1VIP DeclareCosts.doc Page 1 of 4 Im rovements Fundin Source Cost Roadway PIR $ 613,057.71 Storm Sewer Surface Water Enterprise Fund $ 116,084.05 S anitary S ewer S anitary S ewer Enterpri s e Fund $ 118, 3 43 .2 9 Watermain Watermain Enterprise Fund $ 134,958.83 TOTAL PROJECT COST $ 982,443.8$ Total amount to be assessed (50% of roadway costs) $ 306,528.86 Total amount to be paid by $ 675,915.02 the City Staff would like to review the following items and receive direction from the City Council on how to proceed with preparing the assessment roll: Sub-dividable �ro�erties Two p�operties in the reconstruction proj ect area were listed as sub-dividable, according to current City code, �n the feasibility report and counted as two residential equivalent units (REU): 4093 Valentine Crest Road 1645 Valentine Avenue Minimum lot requirements for properties zoned R-1 are listed below: Lot size: Lot width: Lot width (corner): Lot dept�i: 14,000 square feet 95 feet 105 feet 13 0 feet Minimum building setbacks: Front yard: 40 feet Rear Yard: 3 0 feet Side Yard: 10 feet Side Yard (corner): 40 feet Aer�al views of both lots are attached. Both of the property owners listed above have requested that the consideration of their properties as 2 REUs be re-evaluated. The property owners have indicated they have no intention of subdividing their property. At 1645 Valentine Avenue, a double assessmeni would be a�nancial hardship. They also stated that the southeast corner of their ro ert p p Y is low and often has standing water after rain. At 4093 Valentine Crest, the existing ho�ne would have to be removed in order to subdivide the property. Adi acent �arcels- saxne owner The proposed assessment rates for the mill and overlay proj ect were based on 34 lots, one of which. is vacant. On Katie Lane, the property owner at 3314 Katie Lane also owns the City Council Meeting \�1Vletro-inet.us\ardenhills�I'R&PW�Engineering\Council_Actions�2010\6-14-1 OMemo_2010PMP_DeclareCosts.doc Page 2 of 4 adj acent vacant lot, and has requested they be assessed for only one parcel. This vacant lot is an approved platted lot and is considered buildable. Staff discussed these parcels with the City Attorney; the City Attorney's comments are �ncluded in the attached letter. Staff is requesting direction from the City Council on how to proceed with assessments for the above mentioned parcels. Financial Implications Assessment rate The total amount to be assessed is $306,528.86. The total project cost is $982,443.88; the amount to be paid by the City is $675,915.02. There are two proposed assessment rates; one for the streets to be reconstructed (Valentine Avenue, Valentine Crest Road and Valentine Court), and one for the streets to be milled and overlaid (Katie Lane and Katie Court). Reconstruction assessment rate The current reconstruction assessment rate based on the low bids is $8,268 per unit, based on 31 units, including Valentine Avenue, Valentine Court, and Valentine Crest Road. The following table shows the proposed assessment rate if either of the 2-REU properties was reduced to a single unit. # REU Includes: � Cost er unit 31 29 arcels, 2 of which are 2 REU $ 8,268.46 30 29 parcels, 1 of which is 2 REU $ 8,544.07 29 29 parcels, none of which is 2 REU $ 8,838.70 The assessment rate originally provided in the feasibility report was at $8,833 per unit. Mill and overlay assessment rate The current mill and overlay assessment rate based on the low bids is $1,477 per unit, based on 34 units. The following table shows the proposed assessment rate if the vacant parcel is not included. # REU Includes: Cost er unit 34 34 arcels, vacant arcel included $ 1,476.67 33 33 parcels, vacant parcel excluded $ 1,521.41 The assessment rate originally provided in the feasibility report was at $2,272 per unit. Schedule 1�ssessment rolls rnust be adopted no later than September 27, 2010, to allow for a 30-day pre-paynlent period. Following the pre-payment period, assessment rolls are certi� ed to Ramsey County for collection. The County requires that this certification be done by November 15 in order to allow them enough time to add the assessments to property City Council Meeting \�Metro-inet.us\ardenhills�PR&PW�Engineering\Council_Actions�2010\6-14-1 OMemo 201 OPMP DeclareCosts.doc Page 3 of 4 taxes. The City plans to complete the certification by the end of October. As a result, we recornmend the following schedule for the 2010 assessment process: June 14 June 2 S Resolution declaring costs to be assessed, ordering preparation of assessment rolls Resolution receiving assessment rolls, setting hearing dates July 14 Notice of hearing published in the Shoreview-Arden Hills Bulletin Week of July 14 Mail notices to affected property owners August 9 August 9 August 10 to S eptember 8 Assessment hearing Hearing date for �nal adoption of assessment roll Prepayment of assessments (30 days) Cou�cil Action Requested Approval of Resolution 2010-033: Declaring cost to be assessed and ordering preparation of proposed assessment roll for the 2010 Pavement Management Program. City Council Meeting \�1Vleiro-inet.us\ardenhills�i'IZ&PW�En�ineering\Council_Actions�2010\6-14-10Memo_2010PMP_DeclareCosts. doc Page 4 of 4 �-. � � � � � � � � �- � � ,� .� � � > �j i:tJ '� � '-�-' � i � �., .� � � � J � � � � � �,,. J = � � ��z -� .�.�.r �i,y�'�'�'{� � i 17 �7 11 7 � `4 � r'�, ,:� �i a � v� v.:=.ci �� • _ , � t l `�} . :� � �� - � `n � L � � .W1 � 11 -� :.�: ` i •1s �:n '� C"� � "' � a _ � � � �a � � ` � �� J � � L � � � � � � � =- tn � �v � cn ❑ � � � � � � � � � •�j � � � � � � _._. ■ .� CTS v � O � � [CS ''J C � O , c� . r, � �� O p � � N � � '� --� o � �Q � o a- � �,v�,, v b O s�.�.. � ..� �� O L) G) ...., �.., -�p � O `n �� 'C3 -� O � � cd C) cd . � '� C� � � O � � � � r, "� � U � � � O � � p O � � rsi� O c�1 cC � 't3 s�., � � � � � cJ --� r- ��-'' tCs � � �.�'� ,.� � :/2 U CCS � � � � �'.. 'U U C.! � C� � � � . � � � v .�� b � o � �� J � c� J � � 03 c� v �� O � S �'�-° � �� o b�� U `p�y O � � N U � � � cd N �� u � � as T � �Q � --�� U ._.. � O � s � � ..., ..� c� '�v� � � � -�o� `� > .� .�•�.� ..� 'o f-y �.., v .� �o � v ,_._, W �o � � N ..� ""' a3 N .-a � �� C � � C/� '"`' �/� M^ L O U � � � � � Warren E. Peterson lerome P. F'illa Danie! Witt F'ram Gl�nn A. Bergman John ��chael Miller �Vii�hael T Oberle Steven E-io F3runs'� Pau( W. Fahning* Sonja R. Ortiz Ben I. Rust Ionathan R. Cuskey Tracy J. Hailiday �ared M. Goerlitz Dan M. Duffek* June 1 �, 2010 �risti.�e G��a City Engineer City of Arden Hil�s 1245 West Highway 96 Arden Hi11s, MN 55112 Re: 2�1� PMP Special Assessments Our �ile I�To.: 14470.10-3 �ris : Suite 800 55 East Fifth Street St. Paul, MN 55 I 01-1718 (651) 291-8955 (b51) 228-1753 facsimile www.pfb-pa.com (651 }290-6907 ,�filla@ fb- a . coil� VIA EMAIL According ta the City's current policy, street improvements are speeially assessed on adjacent single family residentia� parcels on a per lot unit basis. Special assessments on single family residential lots which are capable of furtber subdivision can be addressed in a number of ways : A. Pursuant to Minn. 5tat. §429.061, Subd. 2, the City could levy special assessments for current and possible future lots a� the same time . If current dwelling u�its need to be moved to accommodate the future subdivision, eurrent property awners would argue, perhaps successfully, that they will not realize special bene%ts from the additional unit assessments until the future subdivision occurs . B. Pursuant to Minn. Stat. §429.061, Subd. 2, the City could assess one unit now and adopt a deferred assessment roll far future lots. A future subdivision of t�e property wauld tr�gger the payment of the deferred assessments. I-iowever, a11 deferred assessments xnust be paid wit�iin �hirty (�a} years of th� date of adoption of the deferred assessment roll ever� if the subdivision has not occurred within that tirr�e o C. Pursuant ta Minns Stat. §429. C}71, Subd. 1, the City could adopt a supplemental assessment roll when the subdivision of the property occurs . The City would need to follow all of tbe process tbat it does wben it adopts a normal assessment roll but, only those people who would be receiving a supplemental assessment would need to be notified. 'ALSO ADMITTED tN WISCONSIN Kristine Giga June lO9 2010 Pa�� 2 D. The City and property owner could sign a� agreement which wauld be recarded and which contains the following elements : 1. Property owner acknowledges tbat benefit wi11 accrue upon subdivision of property. 2. Property owner waives hearing requirements of Minn. Stat. §429 lf S11bC�1Vl.S10I2 OCCL1rS . 3. Propert� owner agrees that City does not have to approve a subdivision unless the second assessment is paid. If Options A, B, or D are utilized the assessment would be of record and future property owners wi11 be alerted. If Option C is utilized there would be no reeord at the county recorder's office. In this case, the City shauld flag the lot in some manner so tlzat future staff and councilmembers would knaw in the event tl�at there is an appli�atio� for a subdivision. if you have any questions, please contact me. JPF/jxnt Ver t y yaurs, ome . Filla CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 2010-033 A RESOLUTION DECLARING COST TO BE ASSESSED, AND ORDERING PREPARATION OF PROPOSED ASSESSMENT ROLL FOR THE 2010 PAVEMENT MANAGEMENT PROGRAM WI-�EI�EAS, a contract has been let for the City of Arden Hills 2010 Pavement Management Pro�am, ihe �rnprovement of the following streets: Valentine Crest Road, from Valentine Avenue to cul de sac, Valentine Avenue, from Lake Valentine Road to Old Highway 10, Valentine Court, from Valentine Avenue to cul de sac, Katie Lane, from Cleveland Avenue to 1272 feet south, Katie Court, from Katie Lane to cul de sac, And the contract price for such improvement is $731,630.59, and the expenses incurred or to be incurred in the making of such improvement amount to $250,813.29 so that the total cost of the �mprovement will be $982,443.88. NOW, THEREFORE, BE IT RESOLVED by the Mayor and the City Council as follows: 1. The portion of the cost of such improvement to be paid by the city is hereby declared to be $675,915.02 and the portion of the cost to be assessed against benefited property owners is declared to be $306,528.86. 2. The City Administrator, with the assistance of the City Engineer, shall forthwith calculate the prope� amount to be specially assessed for such improvement 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 iile a copy of such proposed assessment in his office for public inspection. 3. The City Administrator shall, upon the completion of such proposed assessment, notify the council thereof. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 14th DAY OF JLTNE, 2010. Stanley D. Harpstead, Mayor AT�EST: Patrick Klaers, Administrator