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Home My WebLink About6.h. Bonaire Path E, City Project 2018-03 Set Assessment Hearing EXECUTIVE SUMMARY City Council Meeting: August 20, 2019 AGENDA ITEM: Bonaire Path E, City Project 2018-03: Set Assessment Hearing AGENDA SECTION: Consent PREPARED BY: Brian Erickson, PE, Director of Public Works/City Engineer Stephanie Smith, PE, Assistant City Engineer AGENDA NO. 6.h. ATTACHMENTS: Resolution, Proposed Assessment Roll APPROVED BY: LJM RECOMMENDED ACTIONS: Motion to Adopt a Resolution Calling for Hearing on the Proposed Assessments for the Bonaire Path E, City Project 2018-03 BACKGROUND The Bonaire Path E, City Project 2018-03 includes improvements on Bonaire Path E from Akron Avenue to approximately 3,000 feet east. The existing gravel section will be converted to a paved section. The project will also include utility work and improvements at the existing railroad crossing on Bonaire Path E to facilitate the establishment of a railroad quiet zone at this crossing after the completion of this project. On October 30, 2018, City staff hosted a public informational meeting for nearby property owners to address questions and comments regarding the project and proposed assessments. On November 5, 2018 the Council held a public hearing where they ordered these improvements and authorized the preparation of plans and specifications. On May 7, 2019, the Council awarded the construction contract to Eureka Construction, the lowest responsible bidder, in the amount of $1,794,313.04. Construction started this summer and is currently underway. COST AND FUNDING This project was scheduled in the 2019-2028 CIP. It is proposed to be funded by a combination of MN State Bonding funds, MN State-Aid funds, utility core funds, and special assessments of benefitting properties. The table on the next page shows the funding breakdown estimated in the Feasibility Report and updated figures based on the bids received. I:\City Clerk\Agenda Items\Approved Items\6.h. Bonaire Path E, City Project 2018-03 Set Assessment Hearing.docx *Includes 25% Indirect Cost When a project converts a gravel road to a paved road, it is Rosemount’s policy to assess the abutting properties $110/front foot. Based on the calculation for the smaller parcels, staff was concerned that this rate would be significantly higher than the special benefit those properties would receive from this project. This issue was discussed with the City Attorney in case that the values would be contested. As a result, to clarify the benefit for the smaller than 3-acre, homestead properties within the assessment area, the City requested a special benefit appraisal for the properties in question. Those properties: PID 340220002012 (1349 Bonaire Path E) and 340220075015 (1450 Bonaire Path E) are currently proposed to be assessed at a unit rate based on the appraisal findings. The remaining properties are proposed to be assessed at the $110/front footage, the standard rate the City has used for past projects. The total proposed assessments are $431,150.00. The proposed assessment amount for each property is shown in the table below: PID Site Address Assessment Rate Front Footage (feet) Proposed Assessment Notes 340220002012 1349 Bonaire Path E $9000/unit - $9,000.00 Rate Based on Special Benefit Appraisal 340220002011 - $110/foot 1085 $119,350.00 340110075010 12135 Rich Valley Blvd $110/foot 640 $70,400.00 343100500020 - $110/foot 155 $17,050.00 340220075015 1450 Bonaire Path E $4700/unit - $4,700.00 Rate Based on Special Benefit Appraisal 343100401010 1102 Bonaire Path E $110/foot 1915 $210,650.00 Waived 429 Process RECOMMENDATION 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 on the proposed assessments. Funding Source Feasibility Estimate Estimate Adjusted for Bids Received and Proposed Assessments* State Bonding Proceeds (Rail Safety Improvements) $1,000,000 $1,000,000 State Aid Construction Fund $1,310,000 $895,000 Water Core Fund $907,000 $862,000 Sanitary Sewer Core Fund $10,000 Park Funds - $13,000 Special Assessments $616,000 $431,150 Total $3,833,000 $3,211,150 2 CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2019 - 68 A RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT, AND CALLING FOR HEARING ON THE PROPOSED ASSESSMENT BONAIRE PATH EAST, CITY PROJECT 2018-03 WHEREAS, a contract has been let for the Bonaire Path E, City Project 2018-03, and the contract amount for such improvement is $1,794,313.04, and the expenses incurred or to be incurred in the making of such improvement amount to $1,416,836.96 so that the total cost of the improvement will be $3,211,150.00. 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 $1,780,000.00, the portion of the cost of such improvement to be paid by State Bond Funding is $1,000,000.00 and the portion of the cost to be assessed against benefited property owners is declared to be $431,150.00. 2. Assessments plus applicable fees 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 2019, 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 17th day of September, 2019 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. The published notice shall state that the Council is meeting to consider the proposed assessment and will state the date, time, and place the hearing, The City Clerk shall also cause mailed notice to be 1 Resolution 2019- 68 given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearings. The mailed notice shall include: the date, time, and place of the hearing, the general nature of the improvement, the area proposed to be assessed, the total amount of the proposed assessment, that the proposed assessment roll is on file with the City Clerk and that written or oral objections by any property owner will be considered. The notice shall also state that no appeal may be taken as to the amount of any assessment unless a written objection signed by the property owner is filed with the City Clerk prior to the assessment hearing or presented to the Mayor at the hearing. The notice shall state the process and time lines for such appeals and will inform property owners of the existence of any deferment procedures. The notice shall also state: 1) The amount to be specially assessed against the particular lot; 2) Adoption by the Council of the proposed assessment may be taken at the hearing; 3) The right of the property owner to prepay the entire assessment and the person to whom prepayment must be made; 4) Whether partial prepayment of the assessment has been authorized by ordinance; 5) The time within which prepayment may be made without the assessment of interest; and 6) The rate of interest to be accrued if the assessment is not prepaid within the required time period. ADOPTED this 20th day of August, 2019. William H. Droste, Mayor ATTEST: Erin Fasbender, City Clerk 2 FINAL ASSESSMENT ROLLBonaire Path East ‐ City Project 2018‐03Parcel # PIDOwnerSite AddressOwner AddressAssessment RateFront Footage (feet) Proposed Assessment Notes1 340220002012 Margaret L Anderson & Ronald D Anderson1349 Bonaire Path E1349 Bonaire Path E, Rosemount MN 55068$9000/unit‐9,000.00$ Rate Based on Special Benefit Appraisal2 340220002011 Flint Hills Recources Pine Bend LLC‐c/o Property Tax Dept, PO Box 2917, Wichita KS 67201‐2917$110/foot 1085119,350.00$ 3 340110075010 Chicago & NW Trans Co. (UPPR)12135 Rich Valley Blvd c/o Union Pacific Railroad Co Pr Tax, 1400 Douglass Stop 1640, Omaha NE 68179‐1640$110/foot 64070,400.00$ 4 343100500020 Greystone Homeowners Association‐c/o FirstService Residential, 8100 Old Cedar Ave S Ste 300, Bloomington MN 55425$110/foot 15517,050.00$ 5 340220075015 Jesse Ison1450 Bonaire Path E 1450 Bonaire Path E, Rosemount MN 55068$4700/unit‐4,700.00$ Rate Based on Special Benefit Appraisal6 343100401010 Wayne & Shelia M Groth1102 Bonaire Path E 1102 Bonaire Path E, Rosemount MN 55068$110/foot 1915210,650.00$ Waived 429 ProcessTotal431,150.00$\\rosemount9\data\PWorks\ENGPROJ\2018‐03 Bonaire Path\Assessments\20190808 Final Assessment Roll