HomeMy WebLinkAbout6.h. Declare Cost Set Hearing – Danbury Way Improvement ProjectEXECUTIVE SUMMARY
City Council Meeting: March 2, 2016
AG ENDA ITEM: Declare Cost / Set Hearing – Danbury
Way Improvement Project, City Project
453
AGENDA SECTION:
Consent
PREPARED BY: Patrick Wrase, PE, Director of Public
Works/City Engineer AGENDA NO. 6.h.
ATTACHMENTS: Resolution; Map; Cost Detail APPROVED BY: ddj
RECOMMENDED ACTION: Motion to Adopt a Resolution Declaring Costs to be Assessed,
Ordering the Preparation of Proposed Assessment, and Calling for Hearing on the Proposed
Assessment for Danbury Way Improvement Project, City Project 453
BACKGROUND:
The Danbury Way Improvement Project includes the reconstruction of approximately 6,300 feet of
roadway. The project is proposed to include the following:
•Removal and replacement of the existing subgrade and pavement
•Installation of surmountable concrete curb and gutter
•Installation of storm sewer, storm sewer treatment structures, and rain gardens
On January 19, 2016, the Rosemount City Council received the plans and specifications and authorized the
advertisement for bids for the Danbury Way Improvement Project. The engineers estimate for the project
at this time was $2,083,300 including all construction and indirect costs. The costs are broken down to
$1,554,700 for Street improvements and $528,600 for Storm Sewer improvements.
The project will be funded from a variety of sources including the Street CIP, Stormwater Utility Find and
Special Assessments. Based on the City of Rosemount’s “Unit Cost” assessment policy, street
reconstruction projects distribute 35% of the projects “Street” cost to each property (unit) that is accessed
by the street (s) planned for reconstruction. Utility improvements are funded from the respective utility
funds. Using the feasibility estimate and 32 units within the project limits and a total estimated cost for the
Street improvements of $1,554,700, the assessment calculated by the city policy is $17,005.
Under Minnesota law, assessments for public improvements are limited to the benefit to which the project
is estimated to provide to the assessed property. In the case of Danbury Way, a Special Benefit
Consultation Report was prepared that indicated that the per unit benefit is estimated to be $11,000 to
$12,500 per unit. As such, the Rosemount City Council was presented with a recommended assessment
rate of $10,000 per unit at the time of the Public Hearing to order the project held on July 16, 2015.
Bids for the project were received on February 19, 2016. Bids were received from 7 contractors with the
bids ranging from a high of $1,612,498.98 to a low of $1,234,503.50. The low bid is $432,196.50 below the
feasibility study Engineers Estimate. The Surface Improvements costs associated with the low bid is
$1,006,028, including all construction and estimated indirect costs. Using the Assessment policy to
recalculate the unit assessments results in a value of $11,003 per unit, still in excess of the estimated
property benefit. As such, even though the low bid is significantly below the feasibility study Engineers
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Estimate, the funding derived from Special Assessments cannot be reduced below the $10,000 per unit
discussed with the council at the July 16, 2015 Public Hearing ordering the project.
Cost and Funding
A summary of estimated project costs and proposed funding is provided below. The numbers provided
are based on the contract bid.
Table 1 - Proposed Costs (includes indirect)
Surface Improvements $ 1,006,028
Storm Sewer Improvements $ 537,101
Total $ 1,543,129
Table 2 - Proposed Funding
Street CIP Fund $ 686,028
Storm Utility Fund $ 537,101
Special Assessments $ 320,000
Total $ 1,543,129
Table 3 – Proposed Assessments
Calculated Assessment Units Total Assessment
Surface Improvements $ 10,000 / unit 32 $ 320,000
Total $ 320,000
SUMMARY:
Staff is recommending Council adoption of a resolution to declare the costs to be assessed, order the
preparation of the proposed assessment, and set a public hearing for April 19, 2016 at 7:00 p.m. or as soon
thereafter as possible.
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CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2016 -
A RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING
PREPARATION OF PROPOSED ASSESSMENT, AND CALLING
FOR HEARING ON THE PROPOSED ASSESSMENT
DANBURY WAY IMPROVEMENT PROJECT
CITY PROJECT 453
WHEREAS, a contract has been let for the Danbury Way Improvement Project and the contract
amount for such improvement is $1,234,504 and the expenses incurred or to be incurred in the making
of such improvement amount to $308,626 so that the total cost of the improvement will be $1,543,129.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Rosemount, Minnesota:
1.The portion of the cost of such improvement to be paid by the City is hereby declared to be
$1,223,129 and the portion of the cost to be assessed against benefited property owners is declared
to be $320,000.
2.Assessments shall be payable in equal annual installments extending over a period of 10 years, the
first of the installments to be payable with general taxes for the year 2017, and shall bear interest at
the rate of 2% per annum above the interest rate paid by the City for its bonds from date of the
adoption of the assessment resolution.
3.The City Clerk, with the assistance of the City Engineer shall forthwith calculate the proper 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 she shall file a
copy of such proposed assessment in her office for public inspection; and
BE IT FURTHER RESOLVED by the City Council of Rosemount, Minnesota:
1.A hearing shall be held on the 19th day of April, 2016 in the Council Chambers at 7:00 p.m., or as
soon thereafter as possible, 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 she 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 hearings.
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BE IT FURTHER RESOLVED by the City Council of Rosemount, Minnesota:
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, except that no interest shall be charged if the entire assessment is paid
by October 31, 2016. The owner may at any time thereafter, pay to the County Auditor the entire
amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in
which such payment is made. Such payment must be made before November 15 or interest will be
charged through December 31 of the succeeding year.
ADOPTED this 2nd day of March, 2016.
William H. Droste, Mayor
ATTEST:
Clarissa Hadler, City Clerk
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Danbury Way Street & Utility Improvements
City Project 453, August 2013
Construction
Cost Indirect (25%)Total
Surface Improvements 804,823$ 201,206$ 1,006,028$
Storm Sewer Improvements 429,681$ 107,420$ 537,101$
Total 1,234,504$ 308,626$ 1,543,129$
Street Capital
Improvement
Fund
Special
Assessments
Storm Utility
Fund Total
Surface Improvements 686,028$ 320,000$ -$ 1,006,028$
Storm Sewer Improvements -$ -$ 537,101$ 537,101$
Feasibility
Report Current
Surface Improvements 1,554,700$ 1,006,028$
Storm Sewer Improvements 528,600$ 537,101$
Total 2,083,300$ 1,543,129$
Cost Comparison
Funding Summary
Cost Summary